Wednesday, November 9, 2011

Project Management Quiz - 28

1. Sensitivity analysis can be used in risk analysis to:
[A]Substitute for uncertainty analysis in risk quantification
[B]estimate the level of risk aversion adopted by management
[C]estimate the effect of change of one project variable on the overall project
[D]A and B
[E]All of the above.

2. The Pareto Principle is a technique used by quality managers to determine which quality control problems of a particular service or manufacturing process should be corrected. Which of the following statements represents the philosophy of the principle?
[A]In order to minimize financial losses from quality control problems, all problems which have a measurable cost associated with them should be corrected.
[B]the majority of defects are caused by a small percentage of the identifiable problems. Improvements efforts should be reserved for these vital few problems.
[C]in order to achieve zero defects, all quality control problems, including those which do not have a direct financial cost should be corrected.
[D]generally, 80 % of the quality control problems are justifiable for correction via cost-benefit analysis. The remaining 20% are not financially worthy of improvement efforts.
[E]A and D

3. The budgeted cost of the work performed (BCWP) for a task that has just been completed can be calculated by:
[A]Multiplying the actual hours worked on the project by the budgeted labor rate.
[B]Multiplying the budgeted hours to complete the task by the budgeted labor rate.
[C]Dividing the actual hours required to complete the task by the budgeted labor rate.
[D]Cannot be determined.
[E]None of the above

4. The project manager has, as a prime responsibility, to assure proper integration of activities. In which organizational form does the project manager probably have the easiest time in integrating work?
[E]Pure project

5. There are four methods of government procurement. Which is not one of these methods?
[B]Sealed bidding
[C]Competitive proposals
[E]Small purchases

6. A scientist is informing techs. about a new product which is starting and the type of work that the lab techs. will be expected to do. The barriers which could hinder the lab techs. ability to filter the information include all of the following except:
[A]language and semantics
[B]culture and ethics
[C]intelligence and knowledge base
[D]reputation, authority, organizational status and position
[E]relative location of the lab to the scientist's office

7. Many companies self insure against some risk. Problems which can arise from self-insurance include:
[A]failure to reserve funds to handle worst case scenarios (low probability events) resulting in severe financial damage to the company
[B]stiff competition from insurance companies
[C]confusion of business risks with insurable risks.
[D]A and C
[E]All of the above.

8. Perhaps the biggest problem facing the project manager during integration activities within a matrix structure is:
[A]Coping with employees who report to multiple bosses
[B]Too much sponsorship involvement
[C]Unclear functional understanding of the technical requirements
[D]Escalating project costs
[E]All of the above

9. The Japanese Quality Control (QC) Circle movement motivated its participants in many ways. Which of the following represents the most important motivation for the QC circle participants?
[A]improving the performance of the company
[C]financial incentives
[D]recognition among co-workers
[E]strengthening of relationships between co-workers

10. The _____ specification delineates specific measurable capabilities or parameters for which a product can be tested as part of the acceptance procedure.
[D]Base Line
[E]None of the above.

11. The project life-cycle can be described as:
[A]project concept, project planning, project execution, and project close-out.
[B]project planning, work authorization, and project reporting.
[C]project planning, project control, project definition, WBS development, and project termination.
[D]project concept, project execution, and project reporting.
[E]All of the above.

12. The salvage value of an asset is:
[A]The value of the scrap metal if a new asset were taken to a scrap yard.
[B]The value that an asset has on the books after one year of depreciation.
[C]The costs that have been sunk into the project to date.
[D]The expected cash value at the end of an assets useful life.
[E]A and D only.

13. Your team has prepared a CPM schedule for your review. You notice that one node has six inputs (including two dummy activities) and four outputs (which include one dummy activity). Select the correct statement from the following:
[A]This is a valid representation if the logic is correct.
[B]This is invalid because a node can have a maximum of one dummy input representation if the logic is correct.
[C]This is invalid because nodes cannot have both dummy inputs and dummy outputs.
[D]This is a invalid because the number of outputs must equal the number of inputs.
[E]This is invalid because a maximum of two inputs and two outputs are allowed using the critical path method.

14. Assume that you have a network where an activity on the critical path can be crashed by two weeks. If the activity is actually crashed by two weeks, then:
[A]The project's schedule will be reduced by 2 weeks.
[B]The available slack on the noncritical paths will increase.
[C]A new critical path may appear after the crash.
[D]All of the above.
[E]A and B only.

15. Documented work authorization provide:
[A]a means of effective internal coordination of the project's activities.
[B]an audit trail of all work authorized from project initiation to completion.
[C]a means for communication of work activity between the project manager and the performing activities.
[D]All of the above
[E]A and B only.