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Without any formal planning, the president of a software company remarks in a speech that new technologically advanced software will be available in one year. This may lead to a project that must be done faster than anticipated. 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. |
A |
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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. |
B |
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A contractor finished a bridge across a lake 18 months early and received more than $6 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. |
E |
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Adverse weather, design flaws, and equipment breakdown can create negative slack. 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. |
C |
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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. |
E |
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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 |
C |
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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. |
C |
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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 |
A |
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The shortest possible time an activity can be completed realistically is called ________ time. A. Expedited B. Accelerated C. Crash D. Optimistic E. Optimal |
C |
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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. |
A |
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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 |
C |
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An activity’s crash cost includes ________ costs. A. Direct B. Indirect C. Overhead D. Total E. Normal |
A |
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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. |
B |
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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. |
A |
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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) |
B |
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Emily has recently 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 |
D |
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In selecting the best activity to crash you would first select the activity with the A. Earliest start time. B. Most steep slope. C. Least steep slope. D. Longest duration. E. Largest crash time. |
C |
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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. |
D |
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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 |
A |
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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 |
D |
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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. |
D |
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An activity’s normal time and cost are 8 and $100, respectively. Its estimated crash time and cost are 6 and $160, respectively. What is this activity’s crash cost per time unit? A. $33 B. $30 C. $60 D. $65 E. $153 |
B |
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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. |
A |
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When a project manager must reduce project duration but resources are constrained, creating a software program that will have fewer features than originally planned or building a house without the bonus room the owner originally specified in the plans would both be examples of A. Fast-tracking. B. Using critical-chain project management. C. Reducing project scope. D. Compromising quality. E. Doing it twice—first fast and then correctly. |
C |
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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 |
B |
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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 |
D |
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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 |
C |
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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 |
B |
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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 |
C |
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All of the following are disadvantages of scheduling overtime EXCEPT A. Overtime is associated the 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. |
A |
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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 |
C |
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When it is necessary to reduce project duration and resources are constrained, which of the following is NOT a reasonable option? A. Establishing a core project team B. Fast-tracking C. Reduce project scope D. Compromise quality E. Critical-chain project management |
A |
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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—first fast and then correctly D. Reduce project scope E. Compromise quality |
E |
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When the project team is salaried, which of the following is the preferred choice for accelerating project completion? A. Assigning additional staff and equipment B. Subcontract work C. Schedule overtime D. Outsource project work E. Establish a core project team |
C |
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It is going to cost $80,000 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. |
D |
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