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BUSI 313 quiz 3 solutions complete answers
BUSI 313 quiz 3 solutions complete answers
Organizations use __________ in conjunction with work breakdown structures to help management teams identify and eventually analyze risk.
An unanticipated event that occurs which is beneficial to a project is known as a(n)
Which of the following is NOT one of the potential responses to a specific risk event?
This response is used to increase the potential effect of an identified Opportunity.
Having an environment where identified risks are treated professionally will lead to better control of risks.
An uncertain event or condition that, if it occurs, has a positive or negative effect on project objectives is termed a
The risk identification process should be limited to just the core project team.
Tools such as a risk assessment form and a risk severity matrix are used to
Resource constraints can be overcome by creative and efficient scheduling.
Gene is trying to order the concrete needed to continue his project. However, the supplier will not be able to deliver it until next week. This is an example of what kind of resource constraint?
All leveling techniques delay noncritical activities by using positive slack to smooth out the resource requirements.
This is used to compare the cost accounts between organizational units and deliverables.
In a resource-constrained project, the first priority in assigning resources is usually given to activities with the
When deciding which staff to team-up to work on work packages, factors to consider are:
In a resource-constrained project the third priority in assigning resources is usually given to activities with the
The fact that you must pour foundation before you frame the house and that you have to frame the house before you can put on the roof demonstrates scheduling constraints.
These are all guidelines a project manager should consider when EXCEPT
Cost slope can be determined by dividing the
The accuracy of crash times and costs is frequently rough at best, when compared with normal time and cost.
Without any formal planning, the president of a software company remarks in a speech that new technologically advanced software will be available in one year. This may lead to a project that must be done faster than anticipated. This is an example of reducing project duration caused by
When reducing project duration, there will always be an optimum cost-time point where the total cost of the project is less than it was when the project was initially planned under normal conditions.
When the project team is salaried, which of the following is the preferred choice for accelerating project completion?
Incentive contracts can make the reduction of project time rewarding-usually for both the project contractor and owner.
Direct costs are so named because they can be assigned directly to a work package and activity.
Crashing a more expensive activity may be wise if fewer inherent risks are involved.
An uncertain event or condition that, if it occurs, has a positive or negative effect on project objectives is termed a
The chances of a risk event occurring as a project proceeds through its life cycle tend to
The cost impact of a risk event occurring as a project proceeds through its life cycle tends to
The attempt to recognize and manage potential and unforeseen trouble spots that may occur when a project is implemented is known as
Which of the following is NOT one of the steps in the risk management process?
The initial step in the risk management process is to
One common mistake made early in the risk identification process is to
Organizations use __________ in conjunction with work breakdown structures to help management teams identify and eventually analyze risk.
Which of the following groups should NOT be a part of the risk identification process?
After your team has successfully identified potential risks that could affect the project, what is the next step?
A list of questions that address traditional areas of uncertainty on a project is termed a
_______________ focuses on how to respond to events that have a positive impact on a project.
Tools such as a risk assessment form and a risk severity matrix are used to
Based on the following, which event should you be most concerned about?
_____________ is a measure of how easy it would be to notice that a risk event was going to occur in time to take mitigating action, that is, how much warning you would have.
Purchasing an accident insurance policy would be an example of responding to a risk by _____________ it.
The risk management tool that is divided into three color-coded zones representing major, moderate, and minor risks is the risk
The risk assessment form contains all of the following EXCEPT
Risks are evaluated in terms of
Adopting proven technology instead of experimental technology in order to eliminate technical failure would be an example of which risk response?
Which of the following activities might you consider adding a time buffer to?
Which of the following is NOT included in a Failure Mode and Effects Analysis?
A fixed price contract is an example of
Which of the following is NOT one of the potential responses to a specific risk event?
A Risk Response Matrix contains all of the following EXCEPT
A key distinction between a risk response and a contingency plan is
The risk associated with the unlikelihood that one of the key members will be struck by lightning would most likely be handled by which of the following?
Funds that are for identified risks that have a low probability of occurring and that decrease as the project progresses are called ______ reserves.
Risks that can result in a system or process that will not work are known as
Which of the following is NOT involved in risk control?
Which of the following is identified to cover major unforeseen risks and, hence, are applied to the total project?
Change management systems are designed to accomplish all of the following EXCEPT
An unanticipated event that occurs which is beneficial to a project is known as a(n)
This response is used to remove any uncertainly associated with an identified Opportunity.
This response allocates some or all of the responsibility of realizing the identified Opportunity for the project.
This response is used to increase the potential effect of an identified Opportunity.
This response is used when an identified Opportunity is not actively pursued.
____________ (responsible for the work package) involved in risk assessment and mitigation will help focus attention on all aspects of risk management.
Including the change control system within the ________ is a key to a successful project.
The implications of an identified change need to be assessed by:
Most changes on a project are related to
An uncertain event or condition that, if it occurs, has a positive or negative effect on project objectives is known as a __________.
The likelihood of a risk event occurring ________ as a project goes through its life cycle.
The first step in the risk management process is ________.
The significance of a risk is assessed in terms of the ________ and the impact of the event.
A list of questions that address traditional areas of uncertainty on a project is known as a _________.
The measurement of how easy it would be to detect that the event was going to occur in time to take mitigating action is known as __________.
The ________ form identifies each risk event, the likelihood of it occurring, the potential impact, when it may occur, and the degree of difficulty in detecting it.
The ________ matrix is divided into red, yellow, and green zones representing major, moderate, and minor risks.
According to the Failure Mode and Effects Analysis (FMEA), Impact x Probability x Detection = __________.
When considering risk response development, reducing the likelihood that an event will occur and/or reducing the impact that an adverse event would have on a project is known as _________ the risk.
When considering risk response development, changing the plan to eliminate the risk or condition is known as ____________ the risk.
When considering risk response development, passing risk to another party instead of changing it is known as ____________ the risk.
When considering risk response development, assuming the risk because the chance of such an event is slim is known as _________ the risk.
Testing a new project on a smaller isolated area prior to installing it for the entire organization is an example of ________ a risk.
Performance bonds, warranties, and insurance are examples of ________ a risk.
Choosing to move a concert indoors to eliminate the threat of bad weather is an example of ____________ a risk.
Flooding would be devastating to the project; however, it is very unlikely. The project manager is most likely to __________ this risk.
The event or point in time when a contingency plan will be implemented is called a _________.
________ reserves are identified for specific work packages and are distributed by the project manager and the team members.
________ reserves are controlled by the project manager and the owner of the project and are used to cover major unforeseen risks to the entire project.
A ____________ is an alternative that will be used if a possible foreseen risk event becomes a reality.
_____________ systems involve reporting, controlling, and recording changes to the project baseline.
The probability that a risk event will occur is higher during the initial stages of a project.
Risk events that occur in the early stages of a project will have a greater cost impact than those that occur in later stages.
Risk management is a reactive approach that is designed to ensure that surprises are reduced and that negative consequences associated with undesirable events are minimized.
One common mistake that is made early on in the risk identification process is to focus on consequences and not on the events that could produce consequences.
The project being delayed is an example of a major risk that should be assessed.
The first step in the risk management process is risk assessment.
A risk profile is a list of questions that have been developed and refined from previous, similar projects.
The risk identification process should be limited to just the core project team.
While a "can do" attitude is essential during implementation, project managers have to encourage critical thinking when it comes to risk identification.
Responses to all identifiable risks should be a top priority for the project manager.
When considering risk value, the lower the value, the higher the level of risk.
If, during risk response development, you successfully identify how you will respond to a risk, contingency planning is unnecessary.
Adopting proven technology instead of experimental technology is an example of mitigating a risk.
A risk is an uncertain event that, if it occurs, can have a positive or negative effect on project objectives.
Performance bonds, warranties, and guarantees are financial instruments used to share risk.
Fixed-price contracts are an example of transferring risk from an owner to a contractor.
When developing a response to a risk by scheduling outdoor work in the summer, investing in up-front safety training, or choosing high-quality materials, these are examples of retaining a risk.
Budget reserves are set up to cover identified risks associated with specific segments of a project while management reserves are set up to cover unidentified risks associated with the total project.
Change management systems involve reporting, controlling, and recording changes to the project baseline.
Enhancing a risk is a tactic that seeks to eliminate the uncertainty associated with an opportunity to ensure that it definitely happens.
Contingency funding is made up of budget reserves and management reserves.
Although most risks are presented as something not desirable, there can also be desirable risks called Opportunities.
Opportunities identified within a project are treated very differently from risks.
Having an environment where identified risks are treated professionally will lead to better control of risks.
Resources are adequate, but demand varies widely over the life of the project. Delaying noncritical activities to lower peak demand on resources is known as resource
If resources are not adequate to meet peak demands, the resulting reschedule is termed
Which of the following is NOT a potential consequence of failing to identify limited resources before project implementation?
When developing a new software package, logically, the software must be designed before the code is written, and the code must be written before it is tested. These activities are dependent on each other by _________ constraints.
When considering the sequence and timing of activities, which of the following is NOT one of the types of project network constraints?
Sam, the project engineer, has been scheduled to run the product system test at the same time he is to build a marketing prototype. This is an example of what type of resource constraint?
Susan is to conduct environmental testing but the chamber cannot hold all the equipment that she wants to test. This is an example of a constraint that could impact the sequence and timing of activities in a project network. What type of constraint is it?
All of the following are types of resource constraints EXCEPT?
Gene is trying to order the concrete needed to continue his project. However, the supplier will not be able to deliver it until next week. This is an example of what kind of resource constraint?
A special truck that George needs on his project has been scheduled on another project. This is an example of what type of resource constraint?
Most of the scheduling methods available today require the project manager to classify the project as either _______ constrained or ______ constrained.
Regina's boss has told her that her project is very important. If the critical path is delayed, she will be given whatever she needs to get it back on schedule. Her project is classified as ________ constrained.
In reviewing the status of her project with top management, Shirley was told that there are only two programmers that she can use for her project. Her project is classified as __________ constrained.
All resource leveling techniques involve
Technical constraints have been carefully considered when developing a project network. Which of the following is true at this point?
Rachel is working on a project that technically allows three activities to be done at the same time. If they were to be implemented at the same time, she would need 5 contractors in order for the activities to be completed on time. There are only 3 available for her to use. This is an example of what type of constraint?
Resource leveling or smoothing can have all the following results on a project EXCEPT
Jan is trying to reallocate resources in a time-constrained project to create smoother resource utilization. She should first identify activities with the
In a resource-constrained project, which of the following is most likely to be changed?
In a resource-constrained project, the first priority in assigning resources is usually given to activities with the
In a resource-constrained project the second priority in assigning resources is usually given to activities with the
Tony has realized that two activities in his project cannot be done at the same time because not enough resources are available. Activity 3 is critical and has a duration of 5 days. Activity 4 has 2 days of slack and a duration of 2 days. How will he decide which activity should be scheduled first?
Splitting an activity can result in all of the following EXCEPT
All of the following are benefits of scheduling resources before project implementation EXCEPT
These are all guidelines a project manager should consider when EXCEPT
When a company will reduce the number of projects they have to manage internally to only core projects and send noncritical projects to contractors and consulting firms this is called
Which of the following is NOT one of the more common problems associated with scheduling multiproject resources?
In a resource-constrained project the third priority in assigning resources is usually given to activities with the
Why is it necessary to have a time-phased budget baseline?
Project budgets are developed by time-phasing which of the following?
A project budget report is showing our project as spending $35,000 against a budgeted amount of $40,000. Which of the following is true?
When there are not enough people, money, and/or equipment available for a project it is known as being
When leveling schedules to overcome resource constraints, ___________ is increased.
This is used to compare the cost accounts between organizational units and deliverables.
When deciding which staff to team-up to work on work packages, factors to consider are:
While balancing assignments, a project manager must also balance:
When looking at the critical path for a delayed project and the project manager sees that adding resources will reduce or remove the delay, the project manager knows that the project is
Delaying noncritical activities to lower peak demand and, thus, increase resource utilization is called resource __________.
A(n) ________ constraint addresses the sequence in which project activities must occur even after considering resource constraints.
Having one person responsible for performing several activities, all due at the same time, is an example of a(n) ________ constraint.
Trying to renovate a ship compartment that is too small for more than one person is an example of a(n) ________ resource constraint.
A shortage of programmers to write software is an example of a(n) ________ type of resource constraint.
The shortage of computer chips to produce a circuit board is an example of a(n) ________ type of resource constraint.
If three copiers are needed to produce a final report on time and only two are available, the project is facing a(n) ________ type of resource constraint.
Resource dependency takes priority over the technological dependency but does not violate ___________ dependencies.
In order that the new product is on the shelf for the Christmas buying season, the development of the new product would be classified as a(n) ________ -constrained project.
Beth has two engineers assigned to her project and does not have access to more even if the result means extending the completion date on her project. She is managing a(n) ________ -constrained project.
All leveling techniques delay noncritical activities by using ________ to reduce peak demand.
When scheduling activities in a resource-constrained project, typically the activity scheduled first has the __________ amount of slack.
Since resource leveling or smoothing delays noncritical activities, a common result is an increase in network ___________.
When the work in an activity is interrupted to work on another activity and is then resumed at a later point in time, it is called _________.
In scheduling resource-constrained projects, _________ are typically used rather than optimum mathematical solutions.
When classifying projects, ________ constrained means that project duration is fixed and resources are flexible.
When classifying projects, ________ constrained means that a specific resource is fixed and the duration of the project is flexible.
Startup and shutdown costs are major considerations when using the ________________ scheduling technique.
After resource leveling or smoothing one goal is that the amount of resources needed over the life of the project will be ___________.
Many companies are ________ project work to contractors and consultants as a means of dealing with the peaks and valleys of resource allocation among projects.
When a project is classified as resource-constrained and a resource constraint exists, the project duration is typically __________.
In reality resource allocation generally occurs in a(n) ___________ environment where the demands of one project have to be reconciled with the needs of other projects.
Without a __________ budget a good project schedule and cost control are impossible.
A project cost baseline is also called __________.
__________ is a technique that can be used to solve the combinational problem of resource allocation.
The fact that you must pour foundation before you frame the house and that you have to frame the house before you can put on the roof demonstrates scheduling constraints.
Too many parallel activities for one individual is an example of a resource constraint.
The level of resources each activity will need to be completed in the given amount of time has been estimated; therefore, there are no resource constraints.
Resource leveling or smoothing is only used on projects which are resource constrained.
Resource bottlenecks are one of the three more common problems encountered in managing multiproject resource schedules.
The inability to fit more than two earth movers on a construction site at the same time when more are needed to complete the activity on time is an example of a physical constraint.
In a resource-constrained project, the completion date is most likely to change.
Having too few programmers and too many engineers is an example of a people resource constraint.
If a project needs one earth mover six months from now in order to complete one activity, and the organization has four such machines, there is no equipment resource constraint.
A lack of readily available engineers is a technical constraint.
Resource dependency takes priority over technological dependency but it does not violate it.
To determine if a project is time-constrained or resource-constrained you would consult the project priority matrix.
Sequential activities hold just as much potential for resource conflicts as parallel activities.
All leveling techniques delay noncritical activities by using positive slack to smooth out the resource requirements.
Since resource leveling or smoothing delays noncritical activities, a common result is a decrease in network sensitivity.
Scheduling projects classified as resource-constrained focuses on completing the project as soon as possible under the given resource constraints.
When resource constraints are added to technical constraints the original project network may change as well as the completion date.
When scheduling activities in a resource-constrained project typically the activity scheduled first has the most amount of slack.
A project budget report is showing our project as spending $35,000 against a budgeted amount of $40,000. We can assume that everything is going as planned and that we are under budget.
Splitting is a scheduling technique used to get a better schedule or better resource utilization and should be used without hesitation.
Without a time-phased budget a good project schedule and cost control are impossible.
If resources are truly limited and activity time estimates are accurate, the resource-constrained schedule will materialize as the project is implemented, not the time-constrained schedule.
Project managers should always assign the best people to the most difficult tasks.
Resource constraints can be overcome by creative and efficient scheduling.
Project management software is important because it will manage the project for the project manager.
Comparing Planned Costs versus Actual Costs will give the project manager a quick understanding of the status of the project.
Having individual staff members assigned to multiple simultaneous tasks is an efficient way to split tasks and get tasks accomplished more efficiently.
Without any formal planning, the president of a software company remarks in a speech that new technologically advanced software will be available in one year. This may lead to a project that must be done faster than anticipated. This is an example of reducing project duration caused by
Intense global competition and rapid technological advances create pressure to develop projects rapidly. This is an example of reducing project duration caused by
A contractor finished a bridge across a lake 18 months early and received more than $6 million for the early completion. This is an example of reducing project duration caused by
Adverse weather, design flaws, and equipment breakdown can create negative slack. This is an example of reducing project duration caused by
In a Project Cost-Duration Graph, total project costs are a sum of
Which of the following is NOT considered a project indirect cost?
As a project is crashed and project duration is reduced, indirect costs typically
Before crashing, direct costs for an activity represent normal costs, which typically mean low-cost, efficient methods for completing the activity in a(n) ________ amount of time.
The shortest possible time an activity can be completed realistically is called ________ time.
As a project is crashed and project duration is reduced, direct costs typically
The direct cost for completing an activity in the shortest time it can realistically be completed in is called its __________ cost.
An activity's crash cost includes ________ costs.
Cost slope can be determined by dividing the
The less steep the cost slope of an activity, the
Which of the following correctly calculates an activity's cost slope?
Emily has recently learned that she needs to reduce the duration of her project to meet an imposed deadline. She has calculated the crash cost per unit and knows the maximum units each activity can be reduced. What is the next step?
In selecting the best activity to crash you would first select the activity with the
When reducing project duration, the duration for a project that is optimal is at the point where
When reducing project duration, the crash cost per unit has to be calculated and the maximum units each activity can be reduced must be known. After this, the critical path must be identified. What is the next step?
When determining which activity to crash, there are other factors that should be assessed beyond cost. Which of the following is NOT one of these factors?
Reducing project duration
An activity's normal time and cost are 8 and $100, respectively. Its estimated crash time and cost are 6 and $160, respectively. What is this activity's crash cost per time unit?
The relationship between the normal point and the crash point is assumed to be
When a project manager must reduce project duration but resources are constrained, creating a software program that will have fewer features than originally planned or building a house without the bonus room the owner originally specified in the plans would both be examples of
Which of the following is NOT a rational reason to reduce project duration?
Sometimes very high __________ costs are recognized before a project begins and reducing these costs through shorter project durations becomes a high priority.
One way of reducing project costs is identifying tasks that _________ can do themselves.
Which of the following projects would be least benefited if additional resources were added?
Which of the following is NOT one of the more commonly used options for cutting project costs?
All of the following are disadvantages of scheduling overtime EXCEPT
According to Brooks' Law, adding more people to a late project is most likely to have which of the following impacts?
When it is necessary to reduce project duration and resources are constrained, which of the following is NOT a reasonable option?
Which of the following is NOT a technique for accelerating project completion when resources are not constrained?
When the project team is salaried, which of the following is the preferred choice for accelerating project completion?
It is going to cost $80,000 a day simply to house and feed a construction crew in the farthest reaches of northern Alaska. This would be an example of a situation requiring reducing the project duration due to
When crashing a schedule, this may set in when a least-cost method is used.
A project that has several near-critical or critical paths is said to be
Compressing activities on a project with a sensitive project network will:
An insensitive project network has the benefit of
Without any formal planning, the president of a software company remarks in a speech that new technologically advanced software will be available in one year. This may lead to a project that must be done faster than anticipated. The completion date has been __________.
Intense global competition and rapid technological advances combine to create a(n) ________-imposed project duration date.
There are fewer options available for reducing project time if you are __________________ than if you can spend more than your original budget.
Sometimes very high ________ costs are recognized before a project begins and reducing these costs through shorter project duration becomes a high priority.
The ________ project cost is the sum of the indirect and direct costs.
Overhead costs such as supervision, administration, consultants, and interest are examples of ________ project costs.
Costs such as labor, materials, equipment, or contractors are examples of ________ project costs.
Direct costs are assignable directly to a particular ________.
Because direct costs are assumed to be developed from normal methods and in a normal amount of time, any reduction in activity time should ________ the cost of the activity.
In order to shorten the duration of a project the project manager should limit the choices of activities to just those which are on the __________.
The ________ time for an activity represents low-costs, realistic, efficient methods for completing the activity under typical conditions.
Reducing the duration of an activity is called ________.
The direct cost for completing an activity as early as possible is called its ________ cost.
An activity's ________ is calculated by dividing the rise by the run.
When project managers know an activity's ________, they are able to compare which critical activities to shorten.
The less steep the cost slope of an activity, the ________ it costs to shorten one time period.
When considering whether to move the project to its optimum cost-time position, the manager should also consider ________.
An activity's normal time and cost are 5 and $40, respectively. Its estimated crash time and cost are 4 and $70, respectively. This activity's crash cost per time unit is ________.
When you schedule ________, you avoid the additional costs of coordination and communication when new people are added.
According to ________ law, adding more manpower to a late software project makes it later.
As a project's duration is reduced, indirect costs are ___________.
____________ is the rearranging of the project network logic so that critical activities are done in parallel rather than sequentially.
Creation of the ___________ graph keeps the importance of indirect costs in the forefront of decision making.
One way of reducing project costs is identifying tasks that _________ can do themselves.
A reasonable, quick comparison between options for compressing activity times is based upon a _______________ assumption.
_________ is the first thing to consider when deciding whether or not an activity can be crashed.
There are more options available for reducing project time if you are not resource constrained.
An activity must be crashed on each critical path in order to reduce project duration.
Managers have several effective methods for crashing specific project activities when resources are not constrained.
Indirect costs generally represent overhead costs such as supervision, administration, consultants, and interest.
The total cost for each time unit of a project is the sum of labor, materials, and equipment.
Direct costs are so named because they can be assigned directly to a work package and activity.
Because direct costs are assumed to be developed from "normal" methods and in a "normal" amount of time, any reduction in activity time should add to the costs of the activity.
Total cost for specific project durations is computed and then compared with the benefits of reducing project time, before the project begins or while it is in progress.
Incentive contracts can make the reduction of project time rewarding-usually for both the project contractor and owner.
Shortening an activity's duration is termed crashing.
When adding resources, there are limits as to how much speed can be gained.
Brooks' law states that adding manpower to a software project helps keep it on schedule.
The cost slope of an activity is calculated by dividing the run by the rise.
If indirect costs are a significant percentage of total project costs, reductions in project time can represent very real savings.
The higher the cost slope of an activity the lower the cost to reduce its duration.
When crashing an activity, you always crash to its crash point.
Crashing a more expensive activity may be wise if fewer inherent risks are involved.
Crashing frequently results in over allocation of resources.
Crashing can negatively impact the morale and motivation of the project team.
When reducing project duration, there will always be an optimum cost-time point where the total cost of the project is less than it was when the project was initially planned under normal conditions.
The accuracy of crash times and costs is frequently rough at best, when compared with normal time and cost.
One of the advantages of using a project cost-duration graph is that it keeps the importance of indirect costs in the forefront of decision making.
Resources are frequently over-allocated when crashing a schedule.
For most projects, the estimation of a crash time is relatively easy.
Crashing activities on a project network that is sensitive could increase the risk of the project being late.
Insensitive networks are a rarity; Planning for a sensitive network is more practical.
Making the decision to crash is the result of careful fiscal analysis and deep understanding of the project.
The simplest way to reduce cost on a project is to reduce the scope of a project.
