Multiple Choice Problems:

1. The shortest time in which the entire network can be completed is referred to as the __________.

a. critical time of the network

b. real duration of the network

c. elapsed time of the network

d. slack time of the network

2. In application, PERT(ADM) has primarily been used for __________.

a. construction projects

b. manufacturing projects

c. industrial projects

d. research and development projects

3. The calculation of the standard deviation for the beta distribution is based on the assumption that __________.

a. the range is divided by a count of the values used to compute the mean

b. the range is approximately equal to six times the standard deviation

c. the standard deviation is 50 percent of the mean

d. the standard deviation is the square of the statistical variance

4. A precedence relationship where the completion of a successor activity depends on the completion of a predecessor activity is called a __________.

a. start to finish dependency

b. finish to start dependency

c. finish to finish dependency

d. start to start dependency

5. Identify the statement that is not correct regarding a project budget.

a. the budget is included in a project plan.

b. the budget is not an expression of organizational policy.

c. the budget serves as a control mechanism for the project.

d. the budget serves as a standard for comparison of planned and actual usage of resources.

6. A work element whose cost is fully developed would __________.

a. exclude the cost of labor and resources

b. include only the profit and direct costs

c. exclude the cost of special machinery and overheads

d. include direct costs plus overhead and G&A charges

7. The traditional organizational budget is __________.

a. category-oriented

b. project-oriented

c. program-oriented

d. project-oriented or program-oriented

8. If deterministic time estimates are used, and if project deadlines are firm, there is a high likelihood that it will __________.

a. not be necessary to crash any activities in projects

b. be necessary to crash the last few activities of most projects

c. be completed on time and within budget

d. be completed as per schedule

9. The formula for computing the cost/time slope for each activity that can be crashed is __________.

a. (crash cost + normal cost) / (crash time + normal time)

b. (crash cost - normal cost) / (crash time - normal time)

c. (normal cost + crash cost) / (normal time + crash time)

d. (normal cost - crash cost) / (normal time - crash time)

10. The principal reason why a project manager is surprised by resource constraints on a project is the failure to include __________ in risk identification activities.

a. resource availability

b. resource cost

c. resource mobility

d. resource skill

11. Ishikawa diagrams are also known as what?

a. Cause and Effect diagram

b. Fishbone diagram

c. Pareto diagram

d. Cause/Effect diagram and Fishbone diagram

12. What are seven consecutive data points on either side of the mean called?

a. Too tight of control limits

b. A violation of the Seven Run Rule

c. Too loose of specification limits

d. Acceptable measurements

Short Answer Problems:

1. Project task E has the following estimates: (1) optimistic time - 10 days, (2) Pessimistic time - 20 days, and (3) Most likely time - 12 Days. The standard deviation for time using the beta statistical distribution is ________ days.

2. Task H has duration of 5 days, an early start of 25 days, an early finish of 30 days, a late start of 25 days, and a late finish of 30 days. There are __________ days of slack for task H.

3. Using precedence diagramming methods, activity B must not start until after activity A has been completed. Moreover, the outcome of activity A cannot be used until 3 days after its completion. This relationship between activities A and B is an example of a(n) __________.

4. Given a project salary cost of $400,000 per year and forecasted wage increases of 5 percent per year, calculate the non-discounted total salary cost over a three-year project lifecycle.

5. You have been asked to estimate the costs for a project to build an industrial power plant. Based on historical data, the steam turbine accounts for 30 percent of the total costs for the plant. If the steam turbine costs $300,000, the expected top-down estimated cost for this project would be __________.

6. __________ relies on well-known statistical correlations between various factors such as the total cost of a house relative to the square feet of living area.

7. Suggest some reasons why the authors insist that the project manager must be familiar with the organization's accounting system.

8. The two principles to follow when crashing a project are __________.

9. __________ aims to minimize the period-by-period variations in resource loading by shifting tasks within their slack allowances. The purpose is to create a smoother distribution of resource usage.

10. Given W = D * U for an effort-driven task. Assume an 8-hour workday. Initially, task R was assigned to Bob. Bob was expected to accomplish 32 hours of work in five days. Bob was expected to be 100% available to work on task R during the entire five days. However, Bob left the company and will be replaced by Sam. Sam's efficiency rate is 90%. If Sam is only 70% available, Sam will require __________ hours to complete task R.

11. Discuss the advantages obtained from resource leveling.

12. Suggest some options for leveling resources.

13. Describe difference between quality assurance and quality control. Explain when the project manager uses each.

Problems -

Problem 1 - Consider the following project (times given in days). Find the probability of completing the path with the longest expected duration in 44 days.

Problem 2 - Given the following project (times given in days):

1. Draw the network and find the critical path, time, and cost for an all-normal level of project activity.

2. Calculate the crash cost-per-day (all activities may be partially crashed).

3. Find the optimal way of getting an 18-day delivery time. What is the project cost?

4. Find the optimal way of getting a 16-day delivery time. What is the project cost?

5. Calculate the shortest delivery time for the project. What is the cost?

Problem 3 - The activities involved in the construction of a small facility are provided below. Given the following project (times given in days):

1. Calculate and present the resource usage histogram for this project for each activity (time vs. labor units)

2. Level the resources to present a smoother and preferred resource usage. Show your work.