BUSE245 Mid-term II 2006KEY

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					BUSE245 Mid-term II 2006 KEY
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True / False Questions 1. (p. 293) Creating a Project Cost-Duration Graph in the pre-project planning phase without an imposed duration is the best time to use this tool. TRUE 2. (p. 415) In a project control chart, four observations trending in one direction indicate there is a very high probability that there is an identifiable cause. TRUE 3. (p. 245) Resource leveling is only used on projects which are resource-constrained. FALSE 4. (p. 517) The most prodigious driving force in changing project management is the expansion of markets into a global economy. FALSE 5. (p. 262) Many companies are using outsourcing as a means for dealing with their resource allocation problems associated with managing multiproject resources. TRUE 6. (p. 461) Project audits are another term for status reports. FALSE 7. (p. 420) DOC costs are easy to control, which is the reason for including them in direct project overhead costs. FALSE 8. (p. 465) The major goal of the audit report is to improve the way future projects are managed. TRUE 9. (p. 294) The accuracy of crash times and costs is frequently rough at best, when compared with normal time and cost. TRUE Multiple Choice Questions 10. (p. 260) Which of the following is not one of the more common problems associated with scheduling multiproject resources? a. b. c. d. E overall schedule slippage inefficient resource utilization resource bottlenecks both A and C are correct A, B, and C are all correct

11. (p. 480) More and more companies are discarding the traditional superior-subordinate performance feedback process and replacing it with: a. b. C d. e. critical incidences review management by objectives the 360-degree feedback both B and C are correct A, B, and C are all correct

12. (p. 430) The percent complete index that looks at percent complete in terms of budgeted amounts is calculated by which of the following? A b. c. d. e. EV/BAC (EV-PV)/BAC AC/EAC (EV-AC)/BAC (EV-PV)/EAC

13. (p. 244) Sam is trying to order the concrete needed to continue his project. However, he won't have the money to pay for it until next week. This is an example of a _______ constraint. A b. c. d. e. a. b. c. d. E working capital people equipment information materials assigning additional staff and equipment establish a core team do it twice—fast and correctly reduce project scope all of these are acceptable techniques

14. (p. 285) Which of the following is not one of the techniques for accelerating project completion?

15. (p. 474) Which of the following activities do project managers consider the most significant barrier to project success? A b. c. d. e. planning scheduling organizing staffing directing

16. (p. 413) The second step in the project control process of the measurement and evaluation of project performance is to: a. b. c. D e. a. b. c. d. E review the baseline plan with top management analyze inputs to control system compare plan against actual measure progress and performance review spending with team members holding people accountable prevents small problems from getting large keeping focus both A and B are correct A, B, and C are all correct

17. (p. 411) Adequate project controls have the advantage(s) of:

18. (p. 289) Low-cost, realistic, efficient methods for completing an activity under normal conditions are supported by ____ costs. A b. c. d. e. normal budget optimized expected target

19. (p. 475) In the Research Highlight, Chaos: Software Projects, the criterion which was deemed the most important for project success was a. b. C d. e. a. b. C d. e. a. b. c. D e. a. b. C d. e. a. B c. d. e. a. b. c. d. E A b. c. d. e. realistic expectations hard-working, focused staff user involvement proper planning clear vision and objectives having no direct involvement or direct interest in the project. possessing broad-based experience in the organization or industry. not being an employee of the organization. showing a willingness to listen. being perceived by the team and management as impartial and fair. shifting. effectiveness. manipulating. leveling. allocation. supervision consultants equipment interest all of these are considered project indirect costs the organization's overall budget time-phasing the work packages top management directions both A and C are correct A, B, and C are all correct lower peak demand reduced resource need over the life of the project reduced fluctuations in resource demand both A and B are correct A, B, and C are all correct the completion date the budget project quality both A and B are equally likely A, B, and C are all equally likely

20. (p. 464) It is imperative that the audit leader possess all of the following characteristics except

21. (p. 241) Delaying noncritical activities to lower peak demand on resources is known as resource

22. (p. 288) Which of the following is not considered a project indirect cost?

23. (p. 420) Baseline project budgets are derived from:

24. (p. 245) Resource leveling can provide

25. (p. 247) In a resource-constrained project, which of the following is most likely to be changed?

26. (p. 468) The level in the Project Management Maturity Model where an organization wide project management system is tailored to specific needs of the organization with the flexibility to adapt the process to unique characteristics of the project is known as:

A b. c. d. e. A b. c. d. e. a. b. c. d. E a. b. c. D e. a. B c. d. e. a. b. C d. e.

Institutionalization of Project Management Formal Application of Project Management Ad Hoc Project Management Management of Project Management System Optimization of Project Management System 90 80 50 40 20 adding resources schedule overtime subcontract an activity both A and B are correct A, B, and C are all correct actual costs versus budget schedule progress versus plan quality progress versus plan both A and B are correct A, B, and C are all correct project erosion scope creep specification adjustments specification refinements continuous improvements financial incentive contracts reducing indirect costs reducing direct costs reducing time to market recovering time lost to unforeseen delays

27. (p. 461) It is estimated that ___ percent of all projects are not seriously reviewed or audited.

28. (p. 283) A common method for shortening the project time is to:

29. (p. 417) An Earned Value System used to monitor project progress includes comparison of

30. (p. 437) Small refinements that eventually build to be major changes are known as:

31. (p. 283) Which of the following is unlikely to be a reason for accelerating a project schedule?

32. (p. 422) Which of the following methods of variance analysis is the best indicator of how far off the budget a project will be at completion? a. b. c. D e. a. b. c. D BAC EAC ETC VAC TCPI reduction in slack decrease in scheduling flexibility decrease in number of parallel activities reduction in the critical path

33. (p. 242) Which of the following is not a potential impact of project constraints?


increasing in likelihood of project delays

34. (p. 414) In monitoring project time (schedule) performance actual performance should be compared to: a. b. C d. e. a. B c. d. e. budgets for the current year top management's targets project network schedule derived from the WBS/OBS progress on similar past projects previous status reports total cost per unit of time cost per unit of time indirect cost per unit of time both B and C are correct A, B, and C are all correct

35. (p. 290) An activity's cost slope represents an activity's

Essay Questions 36. Week Jo'burg project Actual
1 2 3 4 5 6 45 50 50 60 60 50

Jo'burg project Earned Value Cape Town project Actual Cape Town project Earned Value 45 50 50 55 65 45 45 40 50 60 55 45 45 35 55 65 60 50

A prominant South African bank is building two identical Call Centres in Johannesburg and Cape Town to accommodate aniticipated demand and Disaster Recovery requirements. Both projects have estimated costs of R50 000 per week and are scheduled to be completed in 15 weeks. The actual and earned value data (in thousands of Rands) for the respective projects over the past 6 weeks are presented in the table above. 1. Compute the schedule and cost variances, as well as the cost and percent complete indices for each project at the end of week 6. (12 marks) 2. What can you say about the performance of each project? (5 marks) 3. Compute the EACf for both projects at the end of period 6. Comment on the implications thereof. (8 marks) [Refer chapter 13 on Earned Value and the attached spreadsheet solution] 37. (p. 242) Identify and briefly describe the three types of project constraints. 1) Technical (logic); the sequence that activities must be performed, 2) resource; the absence of required people, materials, equipment, or working capital, and 3) physical; limitations based on space or environmental limits 38. (p. 250) Why would a project manager use heuristics rather than a mathematical solution to level resources? Mathematical models work on small networks and a small number of resources. Larger projects have massive data requirements. Heuristics tend to yield a good solution without the heavy burden imposed by math models

39. (p. 288) Draw a typical Project Cost-Duration Graph and label the key elements. See figure 9-1 for the graph 40. (p. 247) What are the three most common heuristics (in order of priority) used to allocate resources to project activities? 1) minimum slack; start with activities with the least amount of slack, 2) smallest duration; if two activities have the same slack select the one with the smallest duration, and 3) lowest activity identification number, if slack and duration are the same select the earliest activity

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Description: BUSE245 Mid-term II 2006KEY