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Multiple Choice Questions [3 points] You are running a series of similar project

ID: 465350 • Letter: M

Question

Multiple Choice Questions

[3 points] You are running a series of similar projects and consider that you can use the learning curve approach to estimate the individual project durations? You calculated the time requirements for the first project (T1) as 2000 hours and the time requirements for the second project (T2) as 1800 hours. What is the time requirements for the fourth project (T4)?

1692

1620

1600

1400

None of the above is correct


[3 points] Which of the following statement(s) is(are) true the Access+ project for Providian?

The project was expected to reduce cost by eliminating 180 back-office (operations) staff

The project team and the manager had managed other large scale projects in the past (that are comparable to the Access+ project)

Access+ project would improve the service quality

I

II

III

I and III

II and III



[3 points] Microsoft Project gives that the total slack for an activity is 4 days and the free slack is 2 days. If the activity delayed for 3 days, which of the following statements is correct?

Project duration does not change

Project duration will be delayed by 1 days

Project duration will be delayed by 2 days

Project duration will be delayed by 3 days

None of the above is correct


[3 points] In the Echelon A case, we first found the project duration was 59 days and then concluded that it was not feasible. Why was 59 days not a feasible duration?

Because we did not consider randomness in the activity durations

Because there were two critical paths in the project

Because PERT creates bias

Because one of the resources was over allocated

None of the above


[3 points] In the Project Management simulation game, you realize that you are behind schedule and under budget. Which of the following would your best course of action to finish the project with a high score?

Add more resources

Reduce scope

Reduce outsourcing

Reduce overtime

Increase number of prototypes

[3 points] Suppose you calculated the mean and the standard deviation of the critical path (longest path) as mean = 100 days, standard deviation as 10 days. The mean and the standard deviation of the second longest path are 95 and 12 days, respectively. Which of the following statements is true?

The second longest path can be longer than the critical path

Simulation and PERT would give very similar answers for the 90th percentile of the project duration

PERT bias would be insignificant (negligible) for this problem

I

II

III

II & III

None of them is correct





[3 points] Which of the following statements is correct for the Critical Path Method (CPM) calculations?

Slack of an activity should be less than or equal to the activity duration

For a given activity slack can be calculated as LF minus LS

For each activity, LF minus LS should be equal to EF minus ES

EF of an activity can be greater than equal to LF of the same activity

None of the above


[3 points] Crystal Ball report for a project duration simulation model is given in the figure below. Which of the following statements is correct?

The 90th percentile is 58.1 days

The average project duration is 59 days

The probability that the duration is less than equal to 58.1 days is 90%

None of the above

[3 points] Assume that you are a construction project manager and have just built a commercial real estate that cost you $10.8 million. You estimate the monthly rental income will be $150,000/month in first two years and then $200,000/month in the following five years. What is the payback period?

4 years

5 years

6 years

None of the above


[3 points] For the project management simulation game, which of the following statement(s) is(are) true in regards to the project score calculations?

Managing the team morale lower than the target level brings extra bonus points

Managing the project duration longer than the target level brings extra bonus points

Managing the project budget lower than target level is the most difficult way to earn extra bonus

I

II

III

I & III

II & III




[3 points] Which of the following was not a key takeaway in Jason Scott’s guest lecture?

Project managers communicate to lead

Project managers should be fearless, confident, but not irreverent

Project managers should have a “can do” approach

Project managers should not create fear, uncertainty and doubt when communicating with executives

All of them were key takeaways in Jason’s lecture



[3 points] We calculated the Critical Index for Activity E in the Echelon B case as in figure below. Which of the following statements is correct?

E is never on the critical path

E is on the critical path with 60% of the time

E is on the critical path with 40% of the time

E is always on the critical path

None of the above

[3 points] There are two project alternatives and you are asked to use only NPV as the evaluation criteria. Which of the following statement is correct for the NPV assessments below?

Project A

Project B

NPV

Minus $280,000

Minus $150,000

Project A should be selected

Project B should be selected

Either project A or B should be selected

Both project A and B should be selected

Neither project A nor B should be selected

[3 points] Which of the following statements is correct for project organization structures:

In matrix project organizations, team members including the project manager do not have any functional responsibilities (i.e. 100% of their work focus on the project)

Pure project organizations are expensive for small projects

In functional project organizations, there is a full-time project manager coordinate the functional contributions

I

II

III

I and II

II and III

[3 points] A construction company was asked to provide an estimate for a new warehouse construction project. The company has been in the warehouse construction business and built similar warehouses in the past. The most recent warehouse construction was in 2006 and it was identical to the new one (in terms of size, material used, etc.) What would be the cost estimation for the new warehouse today? The warehouse in 2006 cost $2.5 Million and ENR indices in 2006 and 2016 are 4334 and 5494, respectively.

$1.97 Million

$2.50 Million

$2.51 Million

$3.17 Million

None of them is correct

Project A

Project B

NPV

Minus $280,000

Minus $150,000

Explanation / Answer

1.You are running a series of similar projects and consider that you can use the learning curve approach to estimate the individual project durations? You calculated the time requirements for the first project (T1) as 2000 hours and the time requirements for the second project (T2) as 1800 hours. What is the time requirements for the fourth project (T4)?

1692

1620

1600

1400

None of the above is correct

Correct answer is 1400

T1 = 2000 hours

T2 = 1800 hours

Here T1 – T2 = 2000 -1800 = 200 hours

Therefore T3 = T2 – 200 = 1600 hours

T4 = T3- 200= 1400 hours


2. Which of the following statement(s) is(are) true the Access+ project for Providian?

The project was expected to reduce cost by eliminating 180 back-office (operations) staff

The project team and the manager had managed other large scale projects in the past (that are comparable to the Access+ project)

Access+ project would improve the service quality

I

II

III

I and III

II and III

Correct answer is III only

Purpose of the Access+ project for Providian are, Increase customer service, Centralize financial/statement/client administration and Reduce workforce by 180 Full time employee


3. Microsoft Project gives that the total slack for an activity is 4 days and the free slack is 2 days. If the activity delayed for 3 days, which of the following statements is correct?

Project duration does not change

Project duration will be delayed by 1 days

Project duration will be delayed by 2 days

Project duration will be delayed by 3 days

None of the above is correct

Correct answer is Project duration does not change

As the total slack for an activity is 4 days and the activity delayed for 3 days


4.In the Echelon A case, we first found the project duration was 59 days and then concluded that it was not feasible. Why was 59 days not a feasible duration?

Because we did not consider randomness in the activity durations

Because there were two critical paths in the project

Because PERT creates bias

Because one of the resources was over allocated

None of the above

Correct answer is- Because we did not consider randomness in the activity durations.

Randomness in the activity durations is the major cause of project delay specially if it is considered not feasible.