Operations Management, 11e (Heizer/Render) Chapter 3 Project Management. Section 1 The Importance of Project Management

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1 Instant download and all chapters Test Bank Operations Management 11th Edition Jay Heizer, Barry Render Operations Management, 11e (Heizer/Render) Chapter 3 Project Management Section 1 The Importance of Project Management 1) One phase of a large project is scheduling. Answer: TRUE 2) Which of the following statements regarding Bechtel is true? A) Its competitive advantage is project management. B) Bechtel was the construction contractor for the Hoover Dam. C) While helping to rebuild Iraq, Bechtel's crews had to travel under armed escort. D) Bechtel's procurement program is global in nature. E) All of the above are true. 3) Which of the following statements about Bechtel is true? A) Even though Bechtel is over 100 years old, the Kuwaiti oil fields was its first "project." B) Bechtel is the world's premier manager of massive construction and engineering projects. C) Bechtel's competitive advantage is supply chain management. D) While its projects are worldwide, its network of suppliers is largely in the United States E) All of the above are true. Answer: B 4) Which of the following projects were completed by Bechtel? A) Hoover Dam B) Boston Central Artery/Tunnel C) Rebuilding Kuwait after Iraq's invasion in 1990 D) Rebuilding Iraq after the U.S. invasion, starting in 2003 E) All of the above were Bechtel projects

2 5) The phases of project management are: A) planning, scheduling, and controlling. B) planning, programming, and budgeting. C) planning, organizing, staffing, leading, and controlling. D) different for manufacturing projects than for service projects. E) GANTT, CPM, and PERT. Answer: A 6) Which of the following is NOT one of the phases of project management? A) planning B) scheduling C) controlling D) budgeting E) All of the above are project management phases. Answer: D 7) What are the three phases of a project? Describe each in a sentence or two. Answer: The three phases are planning, scheduling, and controlling. Planning includes goal setting, defining the project, and team organization. Scheduling relates people, money, and supplies to specific activities and relates activities to each other. Controlling is where the firm monitors resources, costs, quality, and budgets. It also revises or changes plans and shifts resources to meet time and cost demands. Section 2 Project Planning 1) A project organization works best for an organization when the project resides in only one of its functional areas. Answer: FALSE 2) One responsibility of a project manager is to make sure that the project meets its quality goals. Answer: TRUE

3 3) Work breakdown structure is a useful tool in project management because it addresses the timing of individual work elements. Answer: FALSE Key Term: Work breakdown structure (WBS) AACSB: Reflective thinking skills 4) Project managers have their own code of ethics, established by the Project Management Institute. Answer: TRUE 5) Ethical issues that can arise in projects include gifts from contractors, pressure to mask delays with false status reports, and pressure to compromise project quality to meet bonuses or avoid penalties related to schedules. Answer: TRUE 6) A project organization: A) is effective for companies with multiple large projects. B) is appropriate only in construction firms. C) often fails when the project cuts across organizational lines. D) is most helpful for ongoing projects with no termination date. E) is most helpful when the work contains simple and unrelated tasks. Answer: A 7) A code of ethics especially for project managers: A) has been established by the Project Management Institute. B) has been formulated by the Federal government. C) has been formulated by the World Trade Organization. D) is inappropriate, since everyone should use the same guidance on ethical issues. E) does not exist at this time. Answer: A

4 8) Ethical issues that may arise in projects large and small include: A) gifts from contractors. B) exaggerated expense reports. C) compromised quality standards to meet bonuses or avoid penalties related to schedules. D) pressure to mask delays with false status reports. E) all of the above. 9) The project organization works best when which of the following conditions are satisfied? I. Work tasks can be defined with a specific goal and deadline. II. The job is typical and familiar to the existing organization. III. The work contains interrelated tasks requiring specialized skills. IV. The project is temporary but unimportant to long-term organizational success. V. The project cuts across organizational lines. A) I, II, III, IV, V B) None of the above conditions need to be satisfied. C) I, III, V D) I, II, III, V E) I, III, IV, V Answer: C 10) A project organization that becomes permanent is often referred to as a: A) fixed project organization. B) matrix organization. C) normal organization. D) standard organization. E) permanent project organization. Answer: B Diff: 3

5 11) WBS stands for which of the following project management tools? A) work break schedule B) work breakdown status C) work breakdown schedule D) work breakdown structure E) work break status Answer: D Key Term: Work breakdown structure (WBS) 12) Match the following steps in Microsoft's development of Windows 8 to their respective WBS level. Step Level Develop Windows 8 Operating System? System Testing? Compatible with Windows 7? Develop GUI's? Module Testing? A) Level 1, Level 2, Level 4, Level 3, Level 3 B) Level 1, Level 2, Level 3, Level 4, Level 5 C) Level 0, Level 1, Level 2, Level 3, Level 4 D) Level 0, Level 2, Level 2, Level 3, Level 3 E) Level 5, Level 3, Level 4, Level 1, Level 2 Answer: A Diff: 3 Key Term: Work breakdown structure (WBS) AACSB: Use of information technology 13) A(n) is an organization formed to ensure that programs (projects) receive the proper management and attention. Answer: project organization 14) A(n) divides a project into more and more detailed components. Answer: work breakdown structure or WBS Key Term: Work breakdown structure (WBS) 15) The has established a code of ethics especially for project managers. Answer: Project Management Institute

6 16) Identify the responsibilities of project managers. Answer: Project managers are directly responsible for making sure that (1) all necessary activities are finished in proper sequence and on time; (2) the project comes in within budget; (3) the project meets its quality goals; and (4) the people assigned to the project receive the motivation, direction, and information needed to do their jobs. 17) What is a project organization? Answer: A project organization is an organization formed to ensure that programs (projects) receive the proper management and attention. 18) What are some of the ethical issues faced by project managers? Answer: A project manager can be exposed to a wide variety of ethical issues. These include, but are not limited to, gifts from contractors, pressure to mask delays with false status reports, falsifying (exaggerating) expense reports, and compromising quality with substandard materials or practices to meet bonuses or avoid penalties related to schedules. Section 3 Project Scheduling 1) Gantt charts give a timeline for each of a project's activities, but they do not adequately illustrate the interrelationships between the activities and the resources. Answer: TRUE Key Term: Gantt charts Objective: LO1 2) PERT, but not CPM, has the ability to consider the precedence relationships in a project. Answer: FALSE Objective: LO1

7 3) A combination of effective Gantt chart use and other tactics allowed Delta to cut the average time for a plane layover by what % of the original 60 minute duration? A) 33%, to 40 minutes B) 50%, to 30 minutes C) 20%, to 48 minutes D) 25%, to 45 minutes E) 40%, to 36 minutes Answer: A Key Term: Gantt charts AACSB: Analytic skills Objective: LO1 4) Which of the following statements regarding Gantt charts is true? A) Gantt charts give a timeline and precedence relationships for each activity of a project. B) Gantt charts use the four standard spines of Methods, Materials, Manpower, and Machinery. C) Gantt charts are visual devices that show the duration of activities in a project. D) Gantt charts are expensive. E) All of the above are true. Answer: C Key Term: Gantt charts Objective: LO1 5) Identify each of the purposes of project scheduling. Answer: Project scheduling shows the relationship of each activity to others and to the whole project. It identifies the precedence relationship among activities. It encourages the setting of realistic time and cost estimates for each activity. It helps make better use of people, money, and material resources by identifying critical bottlenecks in the project. Diff: 3 6) Describe the differences between a Gantt chart and a PERT/CPM network. Answer: The differences between a Gantt chart and a PERT/CPM network are mainly that PERT/CPM has the ability to consider precedence relationships and interdependence of activities. Key Term: Gantt charts Objective: LO1

8 Section 4 Project Controlling 1) The control of projects involves close monitoring of which of the following? A) resources B) costs C) quality D) budgets E) all of the above 2) Describe some of the challenges faced in the construction of the new 11-story building at Arnold Palmer Hospital in Orlando, Florida. Answer: Prior to beginning actual construction, regulatory and funding issues added, as they do with most projects, substantial time to the overall project. Cities have zoning and parking issues, the EPA has drainage and waste issues, and regulatory authorities have their own requirements, as do issuers of bonds. Diff: 3 Section 5 Project Management Techniques: PERT and CPM 1) The shortest of all paths through the network is the critical path. Answer: FALSE Key Term: Critical path Objective: LO4 2) The fundamental difference between PERT and CPM is that PERT uses the beta distribution for crashing projects while CPM uses cost estimates. Answer: FALSE Objective: LO5 3) The main difference between PERT and CPM is that: A) PERT is more accurate than CPM. B) PERT assumes that activity durations are known. C) PERT ignores activity costs. D) CPM assumes activity durations can vary. E) PERT employs three time estimates for each activity.

9 4) The difference between AON and AOA networks is that: A) AOA networks sometimes require dummy activities. B) nodes consume no resources or time in AOA networks. C) both are acceptable in practice; however, Microsoft Project uses AON. D) nodes designate activities in AON, while arrows designate activities in AOA. E) All of the above are true. Key Term: Activity-on-node (AON) Objective: LO2 5) A simple CPM network has five activities, A, B, C, D, and E. A is an immediate predecessor of C and of D. B is also an immediate predecessor of C and of D. C and D are both immediate predecessors of E. Which of the following statements is true? A) There are two paths in this network. B) There are four paths in this network. C) There are five paths in this network. D) There are 25 paths in this network. E) There are six paths in this network. Answer: B Key Term: Activity-on-node (AON) AACSB: Analytic skills Objective: LO2 6) The is a project management technique using only one time factor per activity that enables managers to schedule, monitor, and control large and complex projects. Answer: critical path method or CPM Key Term: Critical path method (CPM) 7) The is the computed longest time path(s) through a network. Answer: critical path Key Term: Critical path Objective: LO4 8) The network analysis method that allows activity times to vary is. Answer: PERT or Program Evaluation and Review Technique

10 9) Identify, in order, the six steps basic to both PERT and CPM. Answer: 1. Define the project and prepare the WBS. 2. Develop the relationships among the activities. 3. Draw the network connecting all of the activities. 4. Assign the time and/or cost estimates to each activity. 5. Compute the critical path the longest time path through the network. 6. Use the network to help plan, schedule, monitor, and control the project. Diff: 3 Objective: LO4 10) What is the basic difference between PERT and CPM? Answer: The basic difference between PERT and CPM is that PERT requires three time estimates of activity completion time, whereas CPM uses only a single estimate. Section 6 Determining the Project Schedule