OPERATIONS MANAGEMENT (MSIS 301)
STUDY GUIDE EXAM 2
Project Management
MULTIPLE CHOICE
1.
Which of the following statements regarding Bechtel is true?
a. Its competitive advantage is project management.
b. The project of restoring Kuwait's oil fields was dominated by logistical issues.
c. The Kuwaiti oil field restoration used the port of Dubai as a central transshipment point.
d. Bechtel's procurement program is global in nature.
e. All of the above are true.
2.
The phases of project management are
a. planning, scheduling, and controlling
b. planning, programming, and budgeting
c. planning, organizing, staffing, leading, and controlling
d. different for manufacturing projects than for service projects
e. GANTT, CPM, and PERT
3.
Which of the following statements regarding project management is false?
a. Gantt charts give a timeline for each of a project's activities, but do not adequately show
the interrelationships of activities.
b. A project organization works best for a project that is temporary but critical to the
organization.
c. Project organization works well when the work contains simple, independent tasks.
d. Gantt charts and PERT/CPM are never used together.
e. None of the above is true.
4.
Which of the following statements regarding Gantt charts is true?
a. Gantt charts give a timeline and precedence relationships for each activity of a project.
b. Gantt charts use the four standard spines of Methods, Materials, Manpower, and
Machinery.
c. Gantt charts are visual devices that show the duration of activities in a project.
d. Gantt charts are expensive.
e. All of the above are true.
5.
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.
First name, Last name: _______________________________ ID: _________________________
6.
A simple CPM network has three activities, A, B, and C. A is an immediate predecessor of B
and of C. B is an immediate predecessor of C. The activity durations are A=4, B=3, C=8.
a. The critical path is A-B-C, duration 15.
b. The critical path is A-C, duration 12.
c. The critical path is A-B-C, duration 13.5
d. The critical path cannot be determined without knowing PERT expected activity times.
e. The network has no critical path.
7.
A simple CPM network has three activities, D, E, and F. D is an immediate predecessor of E
and of F. E is an immediate predecessor of F. The activity durations are D=4, E=3, F=8.
a. The critical path is D-E-F, duration 15.
b. The critical path is D-F, duration 12.
c. Slack at D is 3 units
d. Slack at E is 3 units
e. Both a and c are true
8.
A simple CPM network has five activities, A, B, C, D, and E. A is an immediate predecessor
of C and of D. B is also an immediate predecessor of C and of D. C and D are both immediate
predecessors of E.
a. There are two paths in this network.
b. There are four paths in this network.
c. There are five paths in this network.
d. There are 25 paths through this network.
e. None of these statements is true.
9.
Activity D on a CPM network has predecessors B and C, and has successor F. D has duration
6. B's earliest finish is 18, while C's is 20. F's late start is 26. Which of the following is true?
a. B is a critical activity.
b. C is completed before B.
c. D has no slack but is not critical.
d. D is critical, and has zero slack.
e. All of the above are true.
10.
Which of the following statements regarding CPM networks is true?
a. There can be multiple critical paths on the same project, all with different durations.
b. The early finish of an activity is the latest early start of all preceding activities.
c. The late start of an activity is its late finish plus its duration.
d. If a specific project has multiple critical paths, all of them will have the same duration.
e. All of the above are true.
11.
Which of the following statements concerning CPM activities is false?
a. The early finish of an activity is the early start of that activity plus its duration.
b. The late finish is the earliest of the late start times of all successor activities.
c. The late start of an activity is its late finish less its duration.
d. The late finish of an activity is the earliest late start of all preceding activities.
e. The early start of an activity is the latest early finish of all preceding activities.
2
First name, Last name: _______________________________
ID: _________________________
12.
The time an activity will take assuming very unfavorable conditions is
a. the optimistic time
b. the pessimistic time
c. the activity variance
d. the minimum time
e. exactly twice as long as the expected time
13.
The _____ distribution is used by PERT analysis to calculate expected activity times and
variances.
a. Normal
b. Beta
c. Alpha
d. Gaussian
e. Binomial
14.
The expected activity time in PERT analysis is calculated as
a. the simple average of the optimistic, pessimistic, and most likely times
b. the weighted average of a, m, and b, with m weighted 4 times as heavily as a and b
c. the sum of the optimistic, pessimistic, and most likely times
d. the sum of the optimistic, pessimistic, and most likely times, divided by six
e. the sum of the activity variances, divided by six
15.
Which of the following statements regarding PERT times is true?
a. Expected time is an estimate of the time an activity will require if everything goes as
planned.
b. The 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.
16.
The Beta distribution is used in project management to
a. determine which activity should be crashed
b. calculate the probability that a project will be completed within its budget
c. calculate expected activity times
d. calculate slack for activities on the critical path
e. none of the above
17.
An activity on a PERT network has these time estimates: optimistic = 2, most likely = 5, and
pessimistic = 10. Its expected time is
a. 5
b. 5.33
c. 5.67
d. 17
e. none of these
3
First name, Last name: _______________________________
ID: _________________________
18.
An activity on a PERT network has these time estimates: optimistic = 2, most likely = 3, and
pessimistic = 8. Its expected time and variance (if it is a critical activity) are
a. 3.67; 1
b. 3.67; 6
c. 4.33; 1
d. 4.33; 6
e. none of these
19.
Which of the following statements regarding project management is true?
a. Both PERT and CPM require that network tasks have unchanging durations.
b. "Project crashing" shortens a project by assigning more resources to at least one critical
task
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.
20.
Which of the following statements regarding time-cost tradeoffs in CPM networks is false?
a. "Project Crashing" shortens project duration by assigning more resources to critical tasks.
b. Crashing sometimes has the reverse result of lengthening the project duration.
c. Crashing must consider the impact of crashing an activity on all paths in the network.
d. Activities not on the critical path can become critical after crashing takes place.
e. All of the above are true.
4
First name, Last name: _______________________________
21. Create a network for the activities shown below.
22.
Activity
Duration
A
B
C
D
E
F
G
H
4
2
7
4
5
3
4
2
ID: _________________________
Immediate
Predecessors
-A
A
C
C
B, E
C, F
G, D
Create a network table for the network shown below.
Ro (M B
of od
/F ify
lo
or
)
3
C
(Construct
Stack)
Dummy
Activity
4
Co (In F
nt sta
ro ll
ls
)
E
(Build Burner)
1
A
C In ( B
om t ui
po ern l d
ne al
nt
s)
2
D
5
(Pour
Concrete/
Install Frame)
6
H
(Inspect/
Test)
7
G ll
a
st on
I( n luti e)
l ic
Po ev
D
5
First name, Last name: _______________________________
Activity
23.
a.
b.
c.
d.
e.
24.
ID: _________________________
Immediate
Predecessors
Which of these is not true concerning what project management tells us?
When will the entire project be completed?
What are the critical activities or tasks in the project?
Who should do the work?
What is the probability the project will be completed by a specific date?
all are true
What is wrong with the network below?
A
C
G
H
B
D
E
F
a.
b.
c.
d.
e.
Too many arrows
Nothing wrong with the network
Too few activities
Combination of AON and AOA methods
Missing activities
a.
b.
c.
d.
e.
Which of the following is false in regard to the critical path?
The critical path is the longest path through the network
The critical path is the shortest time in which the project can be completed
Any delay in critical path activities delays the overall project
Critical path activities have different slack times
Statements are all true
25.
6
26.
27.
28.
Complete the network below?
What is the project completion time?
What would the project completion time be if activity F is completed in 8 instead of 3 days?
A
C
F
2
2
3
Q
E
H
3
5
2
B
D
G
3
4
5
LAYOUT STRATEGY
29.
Create the interdepartmental flow diagram for figure below.
Number of loads per week
Department Assembly Painting
(1)
(2)
Assembly (1)
Painting (2)
Machine Shop (3)
Receiving (4)
Shipping (5)
Testing (6)
50
Machine Receiving
Shop (3)
(4)
Shipping
(5)
Testing
(6)
80
0
0
20
30
70
10
0
60
0
100
90
0
0
First name, Last name: _______________________________ ID: _________________________
30.
A layout is provided for you below the initial layout of six departments and the loads
exchanged between the departments.
1 feet
1
1 feet
2
1 feet
4
3
1 feet
6
1 feet
5
1 feet
Number of loads per week
Department Assembly Painting
(1)
(2)
Assembly (1)
Painting (2)
Machine Shop (3)
Receiving (4)
Shipping (5)
50
Machine Receiving
Shop (3)
(4)
Shipping
(5)
Testing
(6)
100
0
0
20
30
50
10
0
20
0
100
50
0
0
Testing (6)
9
First name, Last name: _______________________________
ID: _________________________
Distances between departments (feet)
Department Assembly Painting
(1)
(2)
Machine Receiving
Shop (3)
(4)
Shipping
(5)
Testing
(6)
Assembly (1)
Painting (2)
Machine Shop (3)
Receiving (4)
Shipping (5)
Testing (6)
Transportation costs for per unit for neighboring departments cost $1 per feet
Transportation costs per unit for other (non-neighboring) departments are $2 per feet.
Cost for moving loads ($ per feet )
Department Assembly Painting
(1)
(2)
Machine Receiving
Shop (3)
(4)
Shipping
(5)
Testing
(6)
Assembly (1)
Painting (2)
Machine Shop (3)
Receiving (4)
Shipping (5)
Testing (6)
Equation for the calculating cost of layout:
Calculation of the equation:
To lower the total cost, switch one department and recalculate the cost of the new layout.
10
First name, Last name: _______________________________
ID: _________________________
Present your new layout:
1 feet
1 feet
1 feet
1 feet
1 feet
1 feet
Number of loads per week
Department Assembly Painting
(1)
(2)
Assembly (1)
Painting (2)
Machine Shop (3)
Receiving (4)
Shipping (5)
50
Machine Receiving
Shop (3)
(4)
Shipping
(5)
Testing
(6)
100
0
0
20
30
50
10
0
20
0
100
50
0
0
Testing (6)
11
First name, Last name: _______________________________
ID: _________________________
Distances between departments (feet)
Department Assembly Painting
(1)
(2)
Machine Receiving
Shop (3)
(4)
Shipping
(5)
Testing
(6)
Assembly (1)
Painting (2)
Machine Shop (3)
Receiving (4)
Shipping (5)
Testing (6)
Equation for the calculating cost of layout:
Calculation of the equation:
31.
An assembly line has been designed to make battery-powered beverage mixers. Task details
are shown in the table below:
Station
1
2
3
4
5
6
Task Assigned
1
3; 4
2; 5; 6
7
8
9; 10; 11
Task Time (minutes)
3.0
1.5; 2.0
1.5; 1.5; 1.0
3.0
2.5
2.0; 1.0; 1.0
a. What is the assigned cycle time (in minutes)?
b. What is the maximum output rate of this line in mixers per hour?
c. What is the total idle time per cycle?
d. What is the assembly line's efficiency?
Answer: Cycle time is 4.0 minutes (governed by stations 3 and 6). Maximum output is 60/4 =
15.0 units per hour. Idle time is 1.0 + 0.5 + 0.0 + 1.0 + 1.5 + 0 = 4.0 minutes. Efficiency is
20.0/24.0 = 83.3%. (Repetitive and product-oriented layout, moderate)
12
First name, Last name: _______________________________
ID: _________________________
32.
Which of the statements below best describes office layout?
a. groups workers, their equipment, and spaces/offices to provide for movement of
information
b. addresses the layout requirements of large, bulky projects such as ships and buildings
c. seeks the best personnel and machine utilization in repetitive or continuous production
d. allocates shelf space and responds to customer behavior
e. deals with low-volume, high-variety production
33.
Which of the following constitutes a major trend influencing office layouts?
a. downsizing
b. globalization
c. environmental issues
d. virtual companies
e. health issues
34.
Which of the following is strongly associated with "cross-docking"?
a. non-value-adding activities such as receiving and storing
b. multi-modal transportation facilities at seaports
c. processing items as soon as they are received into a distribution center
d. use of manual product identification systems
e. all of the above
35.
The major problem addressed by the warehouse layout strategy is
a. the movement of material to the limited storage areas around the site
b. minimizing difficulties caused by material flow varying with each product
c. requiring frequent contact close to one another
d. addressing trade-offs between space and material handling
e. balancing product flow from one work station to the next
36.
Balancing a work cell is done
a. before the work cell equipment is sequenced
b. as part of the process of building an efficient work cell
c. before takt time is calculated
d. so that each assembly line workstation has exactly the same amount of work
e. to minimize the total movement in a process layout
37.
Takt time is
a. the total work time available divided by units required by the consumer
b. the units required divided by workers required
c. a fictional time increment similar to a therblig
d. the same thing as cycle time in a process layout
e. an important consideration in balancing an assembly line
38.
In assembly line balancing, cycle time (the ratio of available production time to scheduled
production) is the
a. minimum time that a product is allowed at each workstation
b. maximum time that a product is allowed at each workstation
c. optimum time that a product is allowed at each workstation
d. desired cycle time that a product is allowed at each workstation
e. all of the above
13
First name, Last name: _______________________________
ID: _________________________
39.
A production line is to be designed to make 500 El-More dolls per day. Each doll requires 11
activities totaling 16 minutes of work. The factory operates 750 minutes per day. The cycle
time for this assembly line is
a. one-half minute
b. one and one-half minutes
c. two minutes
d. 5,500 minutes
e. cannot be determined from the information given
40.
A production line is to be designed for a job with four tasks. The task times are 2.4 minutes,
1.4 minutes, 0.9 minutes, and 1.7 minutes. The maximum cycle time is and the minimum
cycle time is minutes.
a. 1.8; 1.4
b. 1.6; 0.9
c. 6.4; 2.4
d. 2.4; 0.9
e. none of these
41.
Cycle time is computed as
a. desired output divided by the daily operating time
b. daily operating time divided by the product of desired output and the sum of job times
c. the product of desired output and the sum of job times divided by daily operating time
d. daily operating time divided by the scheduled output
e. 1.00 minus station time
Answer
d (Repetitive and product-oriented layout, moderate)
42.
A production line is to be designed for a product whose completion requires 21 minutes of
work. The factory works 400 minutes per day. Can an assembly line with five workstations
make 100 units per day?
a. yes, with exactly 100 minutes to spare
b. no, but four workstations would be sufficient
c. no, it will fall short even with a perfectly balanced line
d. yes, but the line's efficiency is very low
e. cannot be determined from the information given
Answer
c (Repetitive and product-oriented layout, moderate)
43.
Four hundred and eighty minutes of production time are available per day. The schedule calls
for the production of 80 units per day. Each unit of the product requires 30 minutes of work.
What is the theoretical minimum number of workstations?
a. 2
b. 3
c. 4
d. 5
e. 6
Answer
d (Repetitive and product-oriented layout, moderate)
14
First name, Last name: _______________________________
ID: _________________________
44.
An assembly line consists of 21 tasks grouped into 5 workstations. The sum of the 21 task
times is 85 minutes. Cycle time for the line is 20 minutes. The efficiency of this line is
a. 4.2 percent
b. 17 percent
c. 85 percent
d. 100 percent
e. none of the above
Answer
c (Repetitive and product-oriented layout, moderate)
45.
Which type of layout would you recommend for the office of an IRS tax auditor for
businesses? She spends 20% of the time on the road and 80% of her time in the office with
clients. The auditors work in groups on cases, so cases should be assessable to other auditors
on the team.
a. Closed layout
b. Semi-open layout
c. Open layout
d. none of the above
e. all of the above
Slides: b
46.
Which of the following is not applicable to retailing?
a. closed layout
b. product centered layout
c. Open layout
d. none of the above
e. shelf-centered layout
Slides:
47.
Which of the following is not true of automated warehouse layout?
a. med-large no. of SKUs
b. medium-large storage area is required
c. robots pick units from shelves
d. mechanized conveyors transport picked units to packaging point or areas
e. all are true
Answer Slides: e
Aggregate Planning
48.
To achieve high facility utilization requires all of the following except:
a. Efficient employees
b. Meticulous cleaning between batches
c. Effective maintenance of machines
d. Efficient machine scheduling
e. all are true
Slides
15
First name, Last name: _______________________________ ID: _________________________
49. Aggregate planning determines the______________ of resources that are required to match
immediate periodic demand for all products.
a. quantity
b. quality and type
c. timing and quantity
d. timing and type of product
e. all are true
Slides:
50.
An objective of aggregate planning is to satisfy market demand for products while minimizing
cost over the planning period. Which of the following is a demand option control lever?
a. Labor levels
b. Production rates
c. Overtime work
d. Subcontracting
e. none of the above
Slides :
Case Problem:
The first table shows six months of the aggregate plan for a perishable product. The current
aggregate plan is to make 46 units per month. For excess production, the firm loses $2 per unit. For
capacity shortage, the firm loses $1.5 per unit. A total loss in the first six months is $ 9,000 ($90 *
1000). Create an alternate plan 1 using a level strategy based on averaging the demand. For plan 2,
study plan 1 solution and create another level plan that gives the lowest losses.
Table 1 (in thousands units)
Demand [units]
Production
level [units]
Capacity- Shortage [A] [units]
Excess-production [B] [units]
[B] @ $2/unit
[A] @ $1.5/unit
Jan
34
Feb
50
Mar
34
Apr
50
May
34
Jun
50
46
46
4
46
46
4
46
46
4
12
$24
$0.00
Jan
34
$0
$6.00
12
$24
$0.00
Feb
50
Mar
34
$0
$6.00
12
$24
$0.00
$0
$6.00
Apr
50
May
34
Jun
50
$72
$18
$90
PLAN 1: (in thousands units)
Demand [units]
Production
level [units]
Capacity- Shortage [A] [units]
Excess- production [B] [units]
16
First name, Last name: _______________________________
ID: _________________________
[B] @ $2/unit
[A] @ $1.5/unit
PLAN 2:
(in thousands units)
Jan
34
Demand [units]
Production
level [units]
Capacity- Shortage [A] [units]
Excess- production [B] [units]
[B] @ $2/unit
[A] @ $1.5/unit
Feb
50
Mar
34
Apr
50
May
34
Jun
50
17