Project management MCQs Test Bank

Project management MCQs Test Bank

1. Which of the following statements regarding project management is false?a. Project organization works well when the work contains simple, independent tasks.b. Gantt charts give a timeline for each of a projects activities, but do not adequately show the interrelationships of activities.c. Project organization is most suitable for projects that are temporary but critical to the organization.d. All of the above are true.e. None of the above are true.2. Which of the following statements regarding Gantt charts is true?a. Gantt charts are visual devices that show the duration of activities in a project.b. Gantt charts give a timeline and precedence relationships for each activity of a project.c. Gantt charts use the four standard spines of Methods, Materials, Manpower, and Machinery.d. Gantt charts are expensive.e. All of the above are true.3. Which of the following statements regarding PERT times is true?a. Optimistic time estimate is an estimate of the minimum time an activity will require.b. Optimistic time estimate is an estimate of the maximum time an activity will require.c. The probable time estimate is calculated as t = (a + 4m + b)/6.d. Pessimistic time estimate is an estimate of the minimum time an activity will require.e. Most likely time estimate is an estimate of the maximum time an activity will require.4. Which of the following statements regarding critical paths is true?a. The shortest of all paths through the network is the critical path.b. Some activities on the critical path may have slack.c. Every network has exactly one critical path.d. On a specific project, there can be multiple critical paths, all with exactly the same duration.e. The duration of the critical path is the average duration of all paths in the project network.5. Which of the following statements regarding CPM is false?a. The critical path is the shortest of all paths through the network.b. The critical path is that set of activities that has positive slack.c. Some networks have no critical path.d. All activities on the critical path have their LS equal EF.e. All of the above are false.6. Which of the following statements concerning CPM activities is false?a. The late finish of an activity is the earliest late start of all preceding activities.b. The early finish of an activity is the early start of that activity plus its duration.c. The late finish is the earliest of the late start times of all successor activities.d. The late start of an activity is its late finish less its duration.e. The early start of an activity is the latest early finish of all preceding activities.7. Which of the following statements regarding CPM networks is true?a. The early finish of an activity is the latest early start of all preceding activities.b. The late finish of an activity is the earliest late start of all preceding activities.c. On a specific project, there can be multiple critical paths, all of which will have exactly the same duration.d. A project does not have to have a critical path.e. All of the above are true.8. Activities that are not on a PERT critical path but have little slack need to be monitored closely becausea. PERT treats all activities as equally importantb. near-critical paths could become critical paths with small delays in these activitiesc. they are causing the entire project to be delayedd. slack is undesirable and needs to be eliminatede. they have a high risk of not being completed9. Which of the following statements regarding project management is true?a. Both PERT and CPM require that network tasks have unchanging durations.b. Shortening the project by assigning more resources to one or more of the critical tasks is called project crashing.c. Crashing need not consider the impact of crashing an activity on other paths in the network.d. Project crashing is an optimizing technique.e. Crash cost depends upon the variance of the activity to be crashed.10. Which of these statements regarding time-cost tradeoffs in CPM networks is true?a. Crashing is not possible unless there are multiple critical paths.b. Crashing a project often reduces the length of long-duration, but non-critical, activities.c. Activities not on the critical path can never be on the critical path, even after crashing.d. Crashing shortens the project duration by assigning more resources to one or more of the critical tasks.e. None of the above.11. Which of the following statements regarding time-cost tradeoffs in CPM networks is false?a. Shortening the project duration by assigning more resources to one or more of the critical tasks is called project crashing.b. Crashing procedures must consider the impact of crashing an activity on all paths in the network.c. Crashing sometimes has the reverse result of lengthening the project duration.d. Activities not on the critical path can become critical after crashing takes place.e. All of the above are true.12. Which of the following statements regarding project management is false?a. Project management differs from the management of more traditional activities due to the limited lifetime of projects.b. Dummy activities are added to paths to make all paths of equal length, analogous to adding slack variables in linear programming.c. A Gantt chart contains no precedence relationships, but may be useful for simple projects.d. Dummy activities consume no time.e. Slack is the amount of time an activity can be delayed without delaying the entire project, assuming its preceding activities are completed as early as possible.13. Which of the following statements regarding time-cost tradeoffs in CPM networks is true?a. Crashing shortens the critical path by assigning more resources to one or more non-critical tasks.b. Crashing is not possible unless there are multiple critical paths.c. Crashing a project reduces the length of critical activities only.d. Project crashing is not effective when applied to tasks with zero slack.e. All of the above are false.22. The layout strategy that deals with low-volume, high-variety production isa. fixed-position layoutb. retail/service layoutc. warehouse layoutd. all of the abovee. none of the above23. A good layout requires determininga. capacity and space requirementsb. material handling requirementsc. environment and aestheticsd. flows of informatione. all of the above24. For which of the following operations would a fixed-position layout be most appropriate?a. assembly of an automobileb. production of cameras and TV setsc. construction of a shipd. refining of crude oile. grocery store25. The type of layout which features departments or other functional groupings in which similar activities are performed isa. processb. productc. fixed-positiond. masse. unit26. A process layout would be most appropriate in which of the following cases?a. constructing a Boeing 777 aircraftb. a gourmet restaurantc. a fast-food restaurantd. an automobile factorye. a steel mill27. The major problem addressed by the process-oriented layout strategy isa. the movement of material to the limited storage areas around the siteb. minimizing difficulties caused by material flow varying with each productc. requiring frequent contact close to one anotherd. the provision of low-cost storage with low-cost material handlinge. balancing product flow from one work station to the next28. Which of the following is true for process layouts, but false for product layouts?a. low in-process inventoriesb. low variety of productsc. high volume of outputd. often solved by assembly line balancinge. flexibility in equipment and labor assignments29. A process-oriented layout is best suited fora. the assembly of products like automobiles and appliancesb. the mass production of uniform productsc. low-volume, high-variety productiond. high-volume, low-variety productione. construction of a ship30. According to Heizer and Render, an office layouta. groups workers, their equipment, and spaces/offices to provide for movement of informationb. addresses the layout requirements of large, bulky projects such as ships and buildingsc. seeks the best personnel and machine utilization in repetitive or continuous productiond. allocates shelf space and responds to customer behaviore. deals with low-volume, high-variety production31. Which of the following is true of a focused factory?a. They may be focused in ways other than by product or layout.b. They may be focused only by processing requirements.c. They are much like a product facility within an otherwise process facility.d. All of the above are true.e. None of the above are true.32. Which of the following constitutes a major trend influencing office layouts?a. downsizingb. globalizationc. virtual companiesd. environmental issuese. health issues33. According to Heizer and Render, a retail/service layouta. groups workers, their equipment, and spaces/offices to provide for movement of informationb. addresses the layout requirements of large, bulky projects such as ships and buildingsc. seeks the best personnel and machine utilization in repetitive or continuous productiond. allocates space and responds to customer behaviore. deals with low-volume, high-variety production34. Balancing low-cost storage with low-cost material handling is important ina. a fixed-position layoutb. a process-oriented layoutc. an office layoutd. a product-oriented layoute. a warehouse layout35. Which of the following does not support the retail layout objective of maximizing customer exposure to products?a. locate high-draw items around the periphery of the storeb. use prominent locations for high-impulse and high-margin itemsc. maximize exposure to expensive itemsd. distribute power items to both sides of the aislee. convey the stores mission with the careful positioning of the lead-off department36. Which type of layout is used to achieve a smooth and rapid flow of large volumes of output?a. processb. batchc. productd. unite. fixed-position37. Which of the following are strongly associated with crossdocking?a. non-value-adding activities such as receiving and storingb. multi-modal transportation facilities at seaportsc. processing items as soon as they are received into a distribution centerd. use of manual product identification systemse. all of the above38. A major assumption of stability of demand is important for justifying which of the following layout types?a. product layoutb. process layoutc. fixed-position layoutd. all of the abovee. none of the above39. The main advantage of a product-oriented layout is typicallya. low raw material costb. employability of highly skilled laborc. low capital costd. low variable cost per unite. high flexibility40. In a product layout the process of deciding how to assign tasks to work stations is referred to asa. process balancingb. task allocationc. line balancingd. work allocatione. station balancing41. In assembly line balancing, cycle time (the ratio of production time to demand), isa. the maximum time that a product is available at each work stationb. the minimum time that a product is available at each work stationc. the optimum time that a product is available at each work stationd. the desired cycle time that a product is available at each work statione. all of the above42. In assembly line balancing, the minimum number of workstations isa. the ratio of the sum of all task times to cycle timeb. the ratio of demand times sum of task times to production time per dayc. is always rounded upward to the next larger integer valued. all of the abovee. none of the above43. Cycle time is computed asa. daily operating time divided by the desired outputb. desired output divided by the daily operating timec. daily operating time divided by the product of desired output and the sum of job timesd. the product of desired output and the sum of job times divided by daily operating timee. 1.00 minus station time44. Daily capacity of a product layout is determined bya. cycle time divided by operating timeb. operating time divided by cycle timec. operating time divided by total task timed. total task time divided by cycle timee. cycle time divided by total task time1. Which of the following is not needed in order to use the transportation model?a. the source points and their capacityb. the destination points and their demandc. the cost of shipping one unit from each source to each destinationd. fixed costs of source pointse. all of the above are needed2. The purpose of the transportation approach for locational analysis is to minimizea. total costs b. total shipping costsc. total variable costsd. total fixed costse. the number of shipments3. A transportation problem consists of 8 points of origin and 6 destinations. The number of possible routes for this problem isa. 2b. 14c. 48 d. 64 e. unknown4. The transportation method is a special case of the family of problems known asa. regression problems b. linear programming problems c. decision tree problemsd. simulation problemse. statistical problems5. The initial solution to a transportation problem can be generated in any manner, so long asa. it minimizes costb. it ignores costc. all supply and demand are satisfiedd. degeneracy does not existe. all cells are filled6. Which of the following statements about the northwest corner rule is false?a. One must exhaust the supply for each row before moving down to the next row.b. One must exhaust the demand requirements of each column before moving to the next column.c. When moving to a new row or column, one must select the cell with the lowest cost.d. One must check that all supply and demand constraints are met.e. All of the above are false.7. For the problem data set below, what is the northwest corner allocation to the cell Source 1-Destination 1?DataCOSTSDest. 1Dest. 2Dest. 3SupplySource 12 1 3 30 Source 24 2 1 40 Source 33 8 6 20 Demand15 50 25 90 90a. 0b. 2c. 15d. 30e. 908. In transportation model analysis the stepping-stone method is used toa. obtain an initial optimum solutionb. obtain an initial feasible solutionc. evaluate empty cells for potential solution improvementsd. evaluate empty cells for possible degeneracye. balance supply and demand9. For the problem data set below, what is the northwest corner allocation to the cell Source 1 -Destination 2?DataCOSTSDest. 1Dest. 2Dest. 3SupplySource 12 1 3 30 Source 24 2 1 40 Origin 33 8 6 20 Demand15 50 25 90 90a. 0b. 15c. 25d. 35e. 4510. For the problem data set below, what is the northwest corner allocation to the cell Source 3-Destination 3?DataCOSTSDest. 1Dest. 2Dest. 3SupplySource 12 1 3 30 Source 24 2 1 40 Source 33 8 6 20 Demand15 50 25 90 90a. 0b. 15c. 20d. 35e. 4511. A transportation problem has a feasible solution whena. all of the improvement indexes are positiveb. the number of filled cells is one less than the number of rows plus the number of columnsc. all the squares are usedd. the solution yields the lowest possible coste. all demand and supply constraints are satisfied12. When the number of shipments in a feasible solution is less than the number of rows plus the number of columns minus onea. the solution is optimalb. there is degeneracy, and an artificial allocation must be createdc. a dummy source must be createdd. a dummy destination must be createde. the closed path has a triangular shape13. The total cost of the optimal solution to a transportation problema. is calculated by multiplying the total supply (including any dummy values) by the average cost of the cellsb. cannot be calculated from the information givenc. can be calculated from the original non-optimal cost, by adding the savings made at each improvementd. is found by multiplying the amounts in each cell by the cost for that cell for each row and then subtract the products of the amounts in each cell times the cost of each cell for the columnse. can be calculated based only on the entries in the filled cells of the solution14. The stepping-stone methoda. is an alternative to using the northwest corner ruleb. often involves tracing closed paths with a triangular shapec. is used to evaluate the cost effectiveness of shipping goods via transportation routes not currently in the solutiond. is used to identify the relevant costs in a transportation probleme. helps determine whether a solution is feasible or not15. In a minimization problem, a negative improvement index in a cell indicates that thea. solution is optimalb. total cost will increase if units are reallocated to that cellc. total cost will decrease if units are reallocated to that celld. current iteration is worse than the previous onee. problem has no feasible solution16. In a minimization problem, a positive improvement index in a cell indicates thata. the solution is optimalb. the total cost will increase if units are reallocated to that cellc. the total cost will decrease if units are reallocated to that celld. there is degeneracye. the problem has no feasible solution17. An improvement index indicatesa. whether a method other than the stepping stone should be usedb. whether a method other that the northwest corner rule should be usedc. whether the transportation cost in the upper left-hand corner of a cell is optimald. how much total cost would increase or decrease if the largest possible quantity were reallocated to that celle. how much total cost would increase or decrease if a single unit was reallocated to that cellInv121. Which of the following is a reason for holding inventory?a. to meet customer demandb. to protect against shortagesc. to decouple production from distributiond. to allow for smooth and flexible operationse. all of the above are motives for holding inventory2. Which of the following statements about ABC analysis is false?a. ABC analysis is based on the presumption that controlling the few most important items produces the vast majority of inventory savings.b. In ABC analysis, A Items are tightly controlled, have accurate records, and receive regular review by major decision makers.c. ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings.d. In ABC analysis, C Items have minimal records, periodic review, and simple controlse. None of the above statements are true.3. ABC analysis is based upon the principle thata. all items in inventory must be monitored very closelyb. an item is critical if its usage is highc. there are usually a few critical items, and many items which are less criticald. the safety stock (in terms of volume) should be higher for A items than for C itemse. an item is critical if its unit price is high4. Cycle countinga. provides a measure of inventory accuracyb. provides a measure of inventory turnoverc. assumes that all inventory records must be verified with the same frequencyd. is a process by which inventory records are verified once a yeare. assumes that the most frequently used items must be counted more frequently5. Among the advantages of cycle counting is that ita. makes the annual physical inventory more acceptable to managementb. allows more rapid identification of errors and consequent remedial action than is possible with annual physical inventoryc. does not require the detailed inventory records necessary when annual physical inventory is usedd. does not require highly trained peoplee. does not need to be performed for less expensive items6. The two most basic inventory questions answered by the typical inventory model area. timing and cost of ordersb. quantity and cost of ordersc. timing and quantity of ordersd. order quantity and service levele. ordering cost and carrying cost7. Most inventory models attempt to minimizea. the likelihood of a stockoutb. the number of items orderedc. the number of orders placedd. total inventory based costse. the safety stock8. Which of the following statements about the basic EOQ model is true?a. If the ordering cost were to double, the EOQ would rise.b. If annual demand were to double, the EOQ would increase.c. If the carrying cost were to increase, the EOQ would fall.d. If annual demand were to double, the number of orders per year would decrease.e. All of the above statements are true.9. Which of the following statements about the basic EOQ model is false?a. If annual demand were to increase, the EOQ would increase.b. If the ordering cost were to increase, the EOQ would rise.c. If annual demand were to double, the EOQ would also double.d. If the setup cost were to decrease, the EOQ would fall.e. All of the above statements are false.10. A product whose EOQ is 400 experiences a 50% increase in demand. The new EOQ isa. unchangedb. increased by 50%c. increased by more than 50%d. increased by less than 50%e. cannot be determined50. The EOQ model with quantity discounts attempts to determinea. what is the lowest purchasing price?b. whether to use fixed-quantity or fixed period order policy?c. how many units should be ordered?d. what is the shortest lead time?e. what is the lowest amount of inventory necessary to satisfy a certain service level?51. The Production Order Quantity modela. relaxes the assumption of known and constant demandb. uses Ordering Cost, not Setup Cost, in its formulac. assumes instantaneous deliveryd. results in larger average inventory than an equivalent EOQ modele. is appropriate when units are sold/used as they are produced52. Which of the following statements regarding the Production Order Quantity model is true?a. It applies only to items produced in the firms own production departments.b. It relaxes the assumption that the demand rate is constant.c. It minimizes the total production costs.d. It relaxes the assumption that all the order quantity is received at one time.e. It minimizes inventory.53. When quantity discounts are allowed, the cost-minimizing order quantitya. is an EOQ quantityb. minimizes the sum of holding and ordering costsc. minimizes the sum of holding, ordering, and product costsd. minimizes the unit purchase pricee. may be a quantity below that at which one qualifies for that priceaggregat1. Planning tasks associated with job scheduling, machine loading, and dispatching typically fall undera. long-range plansb. intermediate-range plansc. short-range plansd. mission-related planninge. strategic planning2. Dependence on an external source of supply is found in which of the following aggregate planning strategies?a. varying production rates through overtime or idle timeb. using part-time workersc. backordering during high demand periodsd. subcontractinge. hiring and laying off3. Which of the following aggregate planning strategies might direct your client to a competitor?a. using part-time workersb. subcontractingc. changing inventory leveld. varying production rates through overtime or idle timee. varying workforce size by hiring or layoffs4. Which of the following statements about aggregate planning is true?a. Advertising/promotion is a way of manipulating product or service supply.b. Work station loading and job assignments are examples of aggregate production planning.c. Overtime/idle time is a way of manipulating product or service demand.d. Aggregate planning uses the adjustable part of capacity to meet production requirements.e. All of the above are true.5. Which of the following statements about aggregate planning is true?a. In aggregate planning, backorders are a means of manipulating demand while part-time workers are a way of manipulating product or service supply.b. A pure chase strategy allows lower inventories when compared to pure level and hybrid strategies.c. In spite of the research into mathematical models, aggregate production planners continue to use trial and error methods when developing their plans.d. All of the above are true.e. None of the above are true.6. Which of the following is not consistent with a pure level strategy?a. variable work force levelsb. little or no use of inventory to meet demand requirementsc. varying production levels and/or work force to meet demand requirementsd. varying the use of subcontractinge. all of the above are inconsistent with the pure level strategy7. Which of the following is not an advantage of level scheduling?a. stable employmentb. lower absenteeismc. lower turnoverd. matching production exactly with salese. more employee commitment8. Which of the following is consistent with a pure chase strategy?a. vary production levels to meet demand requirementsb. vary work force to meet demand requirementsc. vary production levels and work force to meet demand requirementsd. little or no use of inventory to meet demand requirementse. all of the above.9.  Which of the following aggregate planning methods does not work if hiring and layoffs are possible?a. linear decision ruleb. management coefficients modelc. transportation methodd. simulatione. charting method10. Aggregate planning for service firms with high-volume tangible output is directed towarda. yield managementb. centralized purchasingc. decreasing the demand rate during peak periodsd. planning for human resource requirements and managing demande. smoothing the production rate11. Yield management is best described asa. a situation where management yields to labor demandsb. capacity allocation to different classes of customers in order to maximize profitsc. a situation where the labor union yields to management demandsd. process designed to increase the rate of outpute. managements selection of a product mix yielding maximum profits15 schedu1. Which of the following is true regarding forward scheduling? Forward scheduling is the scheduling ofa. the end items or finished productsb. the start items or component partsc. the final operation first beginning with the due dated. jobs as soon as the requirements are knowne. jobs according to their profit contributions2. The scheduling activitya. assigns jobs to work centersb. specifies the order in which jobs should be done at each centerc. is best handled with the assignment algorithmd. assigns due dates to specific jobs or operations stepse. occurs before aggregate planning3. Which scheduling technique should be employed when due dates are important for a job order?a. forward schedulingb. backward schedulingc. loadingd. dispatchinge. master scheduling4. Forward schedulinga. begins with a delivery date, then each operation is offset one at a time, in reverse orderb. assumes that procurement of material and operations start as soon as requirements are knownc. is well suited where the supplier is usually able to meet precise delivery datesd. tends to minimize in-process inventorye. produces a schedule only if it meets the due date5. Which of the following is not an effectiveness criterion for scheduling?a. minimizing customer waiting timeb. minimizing completion timec. maximizing flow timed. minimizing WIP inventorye. maximizing utilization6. The usual application of Gantt load charts is to showa. all the operations to be performed by a specific machine or work centerb. loading and idle time of several departments, machines, or facilitiesc. all the operations to be performed on a specific productd. a time phased schedule of operations to be performed on a specific producte. which dispatching rule is more appropriate for a particular work center7. The assignment method isa. a computerized method of determining appropriate tasks for an operationb. a form of linear programming for optimally assigning tasks or jobs to resourcesc. the same thing as the Gantt schedule chartd. a method for achieving a balance between forward and backward schedulinge. a method to highlight overloads in a given work center8. Sequencing (or dispatching)a. assigns dates to specific jobs or operations stepsb. assigns jobs to work centersc. specifies the order in which jobs should be done at each centerd. assigns workers to jobse. assigns workers to machines9. Average completion time for a schedule sequence at a work center is total


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