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A project can be subdivided into which of the following?
 Work packages
 p.340 A work package is a group of activities combined to be assignable to a single organizational unit. The other elements named are not commonly used in project management.


A project starts out as which of the following?
 A statement of work
 p.340 A project starts out as a statement of work

What is a work breakdown structure?
 A definition of the hierarchy of project tasks, subtasks, and work packages
 p.341 The work breakdown structure defines the hierarchy of project tasks, subtasks, and work packages.


In a Gantt chart the horizontal axis is usually which of the following?
 Time
 p.343 See exhibit 10.4a

Which of the following is a graphic project report used in project management?
 Cost and performance tracking schedule
 p.343 See exhibit 10.4d

An advantage of a pure project where selfcontained teams work full time on a project is which of the following?
 Lines of communication are shortened
 p.338 An advantage of the pure project structure listed in the text is that lines of communication are shortened and decisions are made quickly.


Some of the advantages of a functional project where the project is housed in a functional division include which of the following?
 A team member can work on several projects
 p.338 An advantage of the functional project structure listed in the text is that a team member can work on
 several projects.

A series of projects that are organized in such a way that each project utilizes people from different functional areas is using which of the following organizational structures?
 Matrix project
 p.338 The matrix project utilized people from different functional areas.

You are looking at a chart that has the terms BCWS, BCWP and AC indicating lines on the chart. What kind of chart are you looking at?
 EVM Chart
 p.344345 See exhibit 10.5

PERT is an abbreviation for which of the following methodologies?
 Program Evaluation and Review Technique
 p.347 The Program Evaluation and Review Technique (PERT) was developed for the U.S. Navy's Polaris missile project.


You have just been assigned to oversee a series of projects. Functional areas will loan you personnel for each project and separate project managers will be responsible for separate projects. These project managers will report to you. Which project management structure is being used?
 Matrix project
 p.340 The matrix form: different projects borrow resources from functional areas.


You have been placed in charge of a large project. Shortened communication lines are required to insure quick resolution of problems as they arise. You recognize that the project is going to take a lot of time and require a lot of team pride, motivation, and commitment by all members. Which project management structure should you use in this situation.
 Pure Project
 p. 338 The pure project has the advantages that lines of communication are shortened, decisions are made quickly and team pride, motivation, and commitment are high

A simple project listing of five activities and their respective time estimates are presented below:
Using CPM, which activities make up the critical path?
A,B,D,E
There are two paths: A, B, D, E and A, C, D, E. ABDE will take 8 days while ACDE will take 7 days. ABDE, therefore, is the critical path for this project. Activity C is off the critical path because there is one day of slack in that activity.

54. A simple project listing of five activities, their predecessors and their respective time estimates are presented below:
Using CPM, what is the Latest Finish Time for the last activity in this project (i.e., the total time to complete the project)?
 12 days
 The critical path is A, B, D, E. The total time for these activities is 12 days.

A simple project listing of five activities, their predecessors and their respective time estimates are presented below:
Using the CPM, which activities have slack in this project?
 C
 The critical path for this project is ABDE. Activity C has one day of slack in this project.

A company must perform a maintenance project consisting of seven activities. The activities, their predecessors, and their respective time estimates are presented below:
Using CPM, which activities make up the critical path?
 A, B, D, F, G
 There are only 2 paths, ABDFG & ACEFG takes 13 days while ACEFG takes 11 days. ABDFG (Answer A) is the critical path

57. A company must perform a maintenance project consisting of seven activities. The activities, their predecessors, and their respective time estimates are presented below:
Using CPM, what is the Latest Finish Time for the last activity in this project (i.e., the total time to complete the project)?
11 days
There are two paths, ABDFG & ACEFG. ABDFG takes 10 days while ACEFG takes 11 days. ACEFG is the critical path and C) 11 days is the correct answer.

A company must perform a maintenance project consisting of seven activities. The activities, their predecessors, and their respective time estimates are presented below:
Using CPM, which activities have slack in this project?
C,E
 There are two paths, ABDFG & ACEFG. ABDFG takes 12 days while ACEFG takes 10 days. ABDFG
 is the critical path. Activities C & E have 2 days of slack time in this project. The correct answer is D.

For an activity in a CPM analysis, the Early Start time is 8 and the Late Start time is 10. Which of the
(p. 348)
following statements is true?
The slack for this activity is 2
The difference between the late start time and early start time is the slack time.

60.For an activity in a CPM analysis the Early Finish time is 20 and the Late Finish time is 20. Which of
(p. 350)
the following statements is true?
The activity is on the critical path
The critical path is the longest sequence of connected activities through the network and is defined as the path with zero slack time. Since the critical path has zero slack time each activity on the path must have zero slack time. It follows that an activity with zero slack time (e.g., Early start = late start = zero) is on the critical path.

A listing of immediate predecessor activities is important information in a CPM analysis for which of
(p. 348)
the following reasons?
its specifies the relationships in the CPM network of activities
The immediate predecessors are the activities that need to be completed immediately before an activity. They therefore specify relationships in the CPM network.

You have just performed a CPM analysis and have found that more than one path through the project
(p. 347)
network has zero slack values. What can you conclude?
You have multiple critical paths
 It is possible and it often happens that there are multiple paths of the same length through the network
 so there are multiple critical paths.

You have the following time and cost information below for use in a TimeCost CPM Scheduling model.
What are the three costs per unit of time to expedite each activity?
 A=$200,B=$300,C=$400
 Using (Crash costNormal cost)/(Normal timeCrash time) = Cost per unit of time, A = (600400)/(32) = $200; B = (1200600)/(53) = $300; and C = (1500300)/(41) = $400. The correct answer is E.

Below are the data for a TimeCost CPM Scheduling model analysis. The time is in days and the costs include both direct and indirect costs.
What are the total time of this project and total normal cost?
Total time is 12 days, total cost is $1700
The Critical path is ABDE, a total of 12 days. Normal cost is $200 + $300 + $200 + $500 + 500 = $1,700. This is the sum of the "normal cost" column. (Even though activity C is not on the critical path, it still needs to be done & paid for.)

Below are the data for a TimeCost CPM Scheduling model analysis. The time is in days and the costs
include both direct and indirect costs.
If you crash this project to reduce the total time by one day what is the total time of the project and total cost?
Total time is 11 days, total cost is 1850
The critical path is ABDE. To crash the project by one day, choose between reducing one of these activities. Crash cost for A is $200/day; for B, $300/day; for D, $50/day and for E $400/day. The most economical choice is to reduce activity D to two days at a cost of $50. The total cost, then, is $200 + $300 + $300 + $550 + $500 = $1,850 and the duration is 3 + 4 + 2 + 2 = 11 days. The correct answer is D.

Below are the data for a TimeCost CPM Scheduling analysis. The time is in days and the costs include both direct and indirect costs.
If you crash this project to reduce the total time by four days, what is the total time of the project and total cost?
Total time is 8 days, total cost is 2750
The critical path is ABDE. To crash the project by four days, you must reduce each of these activities by one day. Crash cost for A is $200/day; for B, $300/day; for D, $50/day and for E $400/day. The total cost, then, is $400 + $600 + $300 + $550 + $900 = $2,750 and the duration is 2 + 3 + 2 + 1 = 8 days. The correct answer is C.

You have collected the data for a TimeCost CPM Scheduling model analysis. The time is in days and the project "direct costs" are given below.
The indirect costs for the project are determined on a daily duration basis. If the project lasts 16 days the total indirect costs are $400, 15 days they will be $250, 14 days they will be $200, and 13 days they will be $100. If you crash this project by one day what is the total (i.e., direct and indirect) project cost?
2150
The critical path is ABDEFG. The project duration is 3 + 3 + 3 + 2 + 3 + 2 = 16 days. The normal direct cost is $300 + $100 + $200 + $400 + $500 + $200 + $100 = $1,800. The indirect costs are an additional $400 for a total of $2,200. The only activities that can be crashed are A, D & E. A costs $100/day to crash, D costs $150/day to crash and E costs $400/day to crash. Reducing the duration of A by one day at an additional cost of $100 is the most economical. Direct costs are now $400 + $100 + $200 + $400 + $500 + $200 + $100 = $1,900. Overall duration of the project is 15 days and indirect costs are $250. The total cost of crashing this project for one day is $2,150. A is the correct answer.

68. You have collected the data for a TimeCost CPM Scheduling model analysis. The time is in days and the project "direct costs" are given below.
The indirect costs for the project are determined on a daily duration basis. If the project lasts 16 days the total indirect costs are $400, 15 days they will be $250, 14 days they will be $200, and 13 days they will be $100. At what day do we achieve the lowest total project cost (i.e., direct plus indirect costs)?
15 days
 The critical path is ABDEFG. The project duration is 3 + 3 + 3 + 2 + 3 + 2 = 16 days. The normal direct cost is $300 + $100 + $200 + $400 + $500 + $200 + $100 = $1,800. The indirect costs are an additional $400 for a total of $2,200. The only activities that can be crashed are A, D & E. A costs $100/day to crash, D costs $150/day to crash and E costs $400/day to crash. Reducing the duration of A by one day at an additional cost of $100 is the most economical. Direct costs are now $400 + $100 + $200 + $400 + $500 + $200 + $100 = $1,900. Overall duration of the project is 15 days and indirect costs are $250. The total cost of crashing this project for one day is $2,150.
 To crash the project to a 14 days duration one can now select between activity D at $150/day or E at $400/day. Reducing the duration of D by one day at an additional cost of $150 is the most economical. Direct costs are now $400 + $100 + $200 + $550 + $500 + $200 + $100 = $2,050. Overall duration of the project is 14 days and indirect costs are $200. The total cost of crashing this project for two days is $2,250.
 To crash the project to a 13 day duration one can only crash activity E at $400/day. Direct costs are now $400 + $100 + $200 + $550 + $900 + $200 + $100 = $2,450. Overall duration of the project is 13 days and indirect costs are $100. The total cost of crashing this project for three days is $2,550. The lowest cost is 15 days. B is the correct answer.

You know when you have arrived at the optimal solution in using the TimeCost CPM Scheduling
(p. 357)
model analysis when what happens?
 You have reached the minimum total cost
 See exhibit 10.13

In CPM analysis it is generally expected that the relationship between activity direct costs and project
(p. 355)
indirect costs will be which of the following?
 Negatively related
 Activity direct costs and project indirect costs are opposing costs dependent on time.


