1. Which of
the following can be included in scoring models for selecting projects?
a) potential
profitability of the project
b) potential
impact on the firm’s competitive position
c) the
organization’s ability to market the output of a project
d) All of
the above can be included
e) only a
and b above
2. If the initial investment in a project is $100,000 and
the expected annual net profit for the project is $20,000, the payback period
is:
a) 5 years
b) 4 years
c) One fifth
of a year
d) 10 years
e) insufficient
information to determine the payback period
3. Which of
the following is NOT a characteristic of a project?
a) They are
unique.
b) They are
routine.
c) They have
specific due date.
d) They have
a specific deliverable.
e) They have
a purpose.
4. The
project manager is responsible to:
a) the
parent organization
b) the
project team
c) the
project’s client
d) the
project manager’s immediate supervisor
e) all of
the above
5. What is the
primary purpose of creating a work breakdown structure?
a) to draw
the project plan as a chart or tree
b) to make
sure important tasks aren’t overlooked
c) so that
all team members can see what others are working on
d) to assign
budget numbers to tasks
e) to
identify important precedence relationships
6. Which of
the following is used to show linkages between people and tasks?
a) the Work
Breakdown Structure
b) the RACI
Matrix
c) the
Project Action Plan
d) the
Project Resource Diagram
e) the
Concurrent Engineering Chart
7. Which of
the following is NOT a sub-process associated with risk management?
a) risk
identification
b) risk
measurement
c) qualitative
risk analysis
d) quantitative
risk analysis
e) risk
response planning
8. Which of
the following is NOT true regarding top-down budgeting?
a) It is
based on the collective judgments of top and middle managers.
b) Overall
project costs are estimated by top and middle managers and then passed on
c) to the
next lower level.
d) The
overall budget cost is generally not very accurate.
e) Overlooking
small but important tasks can lead to a serious budgetary problem.
f) All of
the above are true concerning top-down budgeting.
9. Which of
the following is NOT an element of the Gantt chart?
a) actual
progress
b) variance
of the critical path
c) the
current date
d) scheduled
milestones
e) all of
the above are elements
10. Which of
the following is typically used as the best estimate of task duration?
a) expected
time
b) pessimistic
time
c) optimistic
time
d) most
likely time
e) none of
the above
11. In MS
Project, in order to set a deadline for a particular task, which of the
following is the proper
sequence from the Task Information dialog box?
a) General > Percent Complete
b) Resources > Assignment Owner
c) Advanced tab > Calendar
d) Advanced tab > Deadline
12. Why is it
necessary to consider the learning curve of resources on a project?
a) to
estimate labor costs properly
b) to improve project team morale
c) because it always takes less time to do a task after
someone has done it a few times
d) collective bargaining contracts require it
e) All of the above
13. The name
given to the budget process that aggregates income and expenditures across
projects is:
a) activity-oriented budget
b) top-down budget
c) bottom-up budget
d) program-oriented budget
e) activity-based costing
14. Which of the following linkages is used to
start two or more activities at the same time?
a) finish-to-start
b) start-to-start
c) finish-to-finish
d) start-to-finish
e) They can all be used to start two or more activities at
the same time
15. Altering the specifications of an ongoing
project is referred to as
a) suboptimization
b) scope creep
c) a virtual project
d) projectitis
e) PMI
16. During
project formation stage, the major sources of conflict are all of the following
except:
a) Priorities
b) Procedures
c) Technical
d) Schedules
17. The first unit produced by a manufacturer required 6
hours. If the industry uses a 90 percent
learning rate, how long should the fourth unit take?
18. Because project budgeting is for a special case and the
organization’s budgeting process is
for routine work, the project manager need NOT be familiar
with the organization’s
accounting system. (True/False)?
19. The Major Deliverables section in Project Charter
describe the details of the work
packages in the work breakdown structure (True/False)
20. A disadvantage of using the discounted cash flow method
(or net present value) for selecting projects is that it ignores all
non-monetary factors associated with the project. (True/False)?
21. If task duration estimates are carefully made, the
project manager needs to only examine the critical path when conducting a risk
analysis. (True/False)?
22. The actual project duration will be known with certainty
after the project is completed. (True/False)?
23. In MS Project, what is the difference between the
Resource column on the WBS
(including personnel needed by the
project) and the Assigned To column? (no more than 100 words).
24. Contrast the project plan and the work breakdown
structure. (no more than 100 words).
25. When activity times are known with certainty, the
critical path is defined as the set of activities on a path from the project’s
start event to its finish event that, if delayed, will delay the completion
date of the project. Why must this
definition be modified in situations where the activity times are not known
with certainty? Are there dangers
associated with not modifying the definition? (not more than 150 words).
________________________________________
Part II : Part II
which will carry a weight of 50%.
________________________________________
1. You have
a network with a critical path A-B-C-D.
The values for optimistic (a), pessimistic (b) and most likely (m)
durations for each task are as shown below.
Task a m b Te Var
A 6 8 12
B 3 4 6
C 3 9 12
D 5 5 7
a. What is
the value of ? for the network?
b. What is
the value of ??2 for the network?
c. What is
the probability that this network can be finished within 27 days?
2. Two
investments (A and B, below) have been proposed to the Capital Investment
committee of your organization;
a. The
required rate of return for your company is 6%.
What is the NPV for each investment?
b. What is
the payback period for each investment?
c. Which
investment would you recommend and why?
Unfortunately, the Capital Investment Committee refused to
approve your recommendation (from above) since you did not consider the
uncertainty inherent in these types of investments. Repeat your analysis, this time using Crystal
Ball and the following information. What is the probability of meeting the NPV
for the investments?
Investment A:
i. Year 0
Investment cost: Triangular distribution
(optimistic: $125,000; most likely: $150,000; pessimistic: $175,000)
ii. Year
1-5 operating cost: Normal distribution
(mean of $10,000, standard deviation of $2,000)
iii. Year 1
Benefits: Normal distribution (mean of
$90,000, standard deviation of $20,000)
iv. Year 2
Benefits: Normal distribution (mean of
$55,000, standard deviation of $15,000)
v. Year 3
Benefits: Normal distribution (mean of
$35,000, standard deviation of $10,000)
vi. Year 4
Benefits: Normal distribution (mean of $20,000,
standard deviation of $5000)
vii. Year 5
Benefits: Normal distribution (mean of
$20,000, standard deviation of $5000)
Investment B:
i. Year 0
Investment cost: Triangular distribution
(optimistic: $75,000; most likely: $80,000; pessimistic: $95,000)
ii. Year 1
Benefits: Normal distribution (mean of
$45,000, standard deviation of $20,000)
iii. Year 2
Benefits: Normal distribution (mean of
$15,000, standard deviation of $5,000)
iv. Year 3
Benefits: Normal distribution (mean of
$10,000, standard deviation of $3,000)
v. Year 4
Benefits: Normal distribution (mean of
$10,000, standard deviation of $3,000)
vi. Year 5
Benefits: Normal distribution (mean of
$15,000, standard deviation of $5,000)
3. From the
week 4 Reading List by Mallak, Kurstedt and Patzak, “Planning for Crises in
Project Management” (found in eReserves), would each of the four tools (Table
1) be of use in project management in general?
How might each be used?
4. Answer
the following using MS Project. You are in charge of the remodeling project for
the kitchen and lunchroom at your office. Your facilities manager has just
provided you with the resource pay rates for this project. You need to enter
these pay rates in the project schedule.
i. Open
the MSP file attached to the Mid Term.
ii. Select
the Resource Sheet view
iii. For the
Drywall resource, click the Type field drop-down arrow, Select Material, then
press tab. For the Nails resource, click the Type field drop-down arrow, select
Material, then press tab.
iv. In the
Resource sheet, click the Std. Rate field for resource 1, Toby Nixon.
v. Key 500/w
and press Enter.
vi. Enter the
following standard pay rates for the remaining resources:
Resource Name Standard
Rate
Lori Kane 500/w
Run Liu 20/h
Electrician 30/h
Plumber 30/h
Drywall 11
Nails 5
John Emory 450/w
Scaffolding 50/d
Table saw 35/d
Now, you are to determine project COST for the Office
Remodel. After entering all values
in Resource Sheet, go to Gantt View and Insert 100% complete for each task as your final step. The actual cost will appear
in the Gantt view of your finished MSP. Post the
resulting MSP file with your answer sheet.
Include your name in the file (ie, “Smith Remodel 2-2.mpp”).
Be sure to submit your answer as an MS Project file.
5. Given the
information in the following table, draw the AOA network. Using the same
information, enter the data into MSP assuming a 7-day workweek. (To change the
calendar in MSP from its 5-day week default click “Help,” type “calendar
change,” and follow directions.). Complete the following questions:
a. Develop
the appropriate AON network and Gantt chart.
b. Find the
critical path and critical time for the network.
c. Then
find the slack for all activities.
Activity Predecessor Duration (days)
a – 5
b – 7
c – 4
d a 6
e b 9
f b 6
g c 4
h d, e 6
i d,e 8
j f,g,h 9
k i 10
l j 9
