Chapter 3
1. List phases of project management
Planning, Scheduling, Controlling
2. What organization established Code of Ethics especially for project managers?
Project Management Institute
3. What functions does the control of projects involve?
Initiating, planning, monitoring/controlling, and closing out project costs and schedule
4. What is the main difference between AON and AOA networks?
AoN networks focus on tasks while AoA focuses on events.
5. Why is the beta distribution used in project management?
To account for the uncertainty of estimating project time
6. What are the three major elements of the product decision?
Selection, definition, and design of products
7. What kind of analysis is used to rank a company's products to determine which products
represent the best use of the firm's resources?
Product-by-value analysis
8. What percentage of sales from new products is indicative of industry leaders?
50%
According to the research from McKinsey that is conducted on one thousand leaders, it is
believed that 50% of the revenue is generated from new services, products, and businesses
that come up within the next five years.
Chapter 7
1. Which process is a job shop using?
Process Focus: High variety/low volume (allows customization)
2. Which process is commonly used to produce high-volume, low-variety products?
A Product Focused process
3. What processes do Frito-Lay and Dell Computer focus?
Product Focus, Mass Customization
4. How does Harley Davidson feed the assembly line?
Work Cells or job shop?
5. What is a drawing name of the movement of material, product, or people?
Flowchart
Chapter 8
1. Why did FedEx choose Memphis, Tennessee, as its U.S. hub?
FedEx chose Memphis, Tennessee, as its U.S. hub because:
- the city is in the center of the United States, geographically.
- the airport has relatively few hours of bad weather closures.
- it needed a means to reach cities to which it did not have direct flights.
- the firm believed that a hub system was superior to traditional city-to-city flight
scheduling.
2. What is the main goal of industrial location analysis?
Minimize costs by spending less on supplies, production processes, logistics, and emergencies.
3. Which of the following industries is most likely to have low equipment utilization: restaurants or
commercial banking?
Restaurants
4. Explain how a worker’s productivity is calculated.
Productivity is calculated using a ratio of output to input, for a worker this could be their daily
wage/units produced in a day.
5. Why are fast food restaurants often located in close proximity to each other?
Restaurants tend to choose locations with high traffic flow
6. What are the reasons for globalization of the location decision?
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market economies
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
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more rapid, reliable travel and shipping
high difference in labor cost
ease of capital flow between countries