Project Management
Chapter Exam Questions
Course Introduction
Project Management is a comprehensive course that equips students with the foundational principles and practical tools needed to successfully plan, execute, and oversee projects across various industries. The course covers essential topics such as project life cycles, scope management, scheduling, budgeting, risk assessment, team dynamics, and quality control. Emphasizing both traditional and agile methodologies, students learn how to balance time, cost, and resources while meeting stakeholder expectations. Through case studies and real-world scenarios, learners develop critical thinking, communication, and leadership skills necessary for effective project leadership from initiation to closure.
Recommended Textbook
Operations Management in the Supply Chain Decisions and Cases 7th Edition by Roger Schroeder
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Chapter 1: The Operations Function
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Q1) When a company develops a report card for evaluating its suppliers,this best represents what type of decision?
A) Process
B) Quality
C) Supply chain
D) Capacity
Answer: C
Q2) Decision making using analytics is viewed as
A) prescriptive (use of mathematical models to optimize decisions).
B) predictive (use of data to predict what is likely to happen).
C) descriptive (use of data to summarize the present situation).
D) all of the above.
Answer: D
Q3) The transformation view of the operations function provides a unified approach for studying the manufacturing and service industries.
A)True
B)False
Answer: True
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Chapter 2: Operations and Supply Chain Strategy
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Q1) Which of the following is NOT an example of an organization's distinctive competence?
A) Organizational knowledge that has been developed internally over time
B) Patented proprietary equipment and processes
C) The ERP (enterprise resource planning) software purchased from SAP
D) Human resource skills that cannot be easily learned
Answer: C
Q2) Which of these statements concerning business strategy is true?
A) Business strategy success relies on the creation of all-purpose operations that are best for all circumstances.
B) Not all functional strategies must support the business strategy, only marketing and finance.
C) Strong business strategies call for excellence across all four operations objectives.
D) Drastically different types of operations are needed to support different business strategies.
Answer: D
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4
Chapter 3: Product Design
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Q1) According to the text,which of the following is a prerequisite to mass customization?
A) Modular design
B) Cross-functional collaboration
C) Quality function deployment (QFD)
D) Concurrent engineering
Answer: A
Q2) Quality function deployment includes which of the following?
(1)Relative importance of customer attributes,(2)tolerance stack-up,(3)a comparison to the competitor's product,(4)engineering characteristics,(5)customer perceptions,(6)customer attributes,(7)variation around a target,(8)value analysis.
A) 3, 5, 6, 7, 8
B) 1, 3, 4, 5, 6
C) 1, 2, 4, 6, 7
D) 2, 5, 6, 7, 8
Answer: B
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Chapter 4: Process Selection
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Q1) Which of the following is among the factors that influence process selection?
A) Capital requirements
B) Labor
C) Technology
D) All of the above
Q2) The focus of the factory may take shape around several dimensions.Which of the following is NOT a dimension for focusing operations?
A) Process type
B) Volume of sales
C) Technology
D) Capacity
Q3) In a batch operation,each product must have the same flow path and must pass through all of the same work centers.
A)True
B)False
Q4) Mixing a variety of products with different volumes and different levels of standardization leads to a lack of focus.
A)True
B)False
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Chapter 5: Service Delivery System Design
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Q1) Which of the following is correct concerning high-contact services?
A) To increase the efficiency of high-contact services, the organization should look to reduce the amount of customer-introduced uncertainty by limiting customization.
B) It is easier to smooth the peaks and valleys of demand for high-contact services than for low-contact services.
C) High-contact services are generally less variable and easier to price competitively.
D) All of the above.
Q2) Describe the difference in service delivery system design for customer-routed services versus provider-routed services.
Q3) Outsourcing is the export of service activities to other countries.
A)True
B)False
Q4) A service guarantee
A) is like a product guarantee except that it is for a service.
B) specifies exactly what the service delivery system must provide.
C) builds loyalty.
D) all of the above.
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Chapter 6: Process-Flow Analysis
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Q1) Flow rate is
A) the same as process capacity.
B) measured in units per day.
C) useful for manufacturing but not service delivery processes.
D) the least of either supply, demand, or capacity.
Q2) A diamond symbol in a flowchart indicates
A) evaluation with more than one possible outcome.
B) decision.
C) both (a) and (b).
D) neither (a) nor (b).
Q3) A service blueprint is used to analyze and manage the service process because it involves
A) the identification of flows, bottlenecks, and customer interaction points.
B) the design of the services advertising campaign.
C) the identification of the consumer benefit concept.
D) all of the above.
Q4) A process will generally have at least one bottleneck.
A)True
B)False
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Chapter 7: Lean Thinking and Lean Systems
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Q1) What are the five tenets of lean thinking?
In your own words,provide a road map for implementing lean thinking in a manufacturing or service operations.
Q2) According to the lean philosophy,a stable master production schedule is desirable to reduce the work-in-process inventories.
A)True
B)False
Q3) Which of the following is true about kanban systems?
A) The purpose is to ensure parts are produced JIT to support subsequent processes.
B) Some companies control the movement of the containers by using two types of kanban cards: production cards and withdrawal cards.
C) Kanban cards take the place of shop paperwork used in traditional mass production.
D) All of the above.
Q4) The Japanese term for waste is "gemba."
A)True
B)False
Q5) Explain the concept of value stream mapping.
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Chapter 8: Managing Quality
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Q1) Which of the following is NOT an element of the quality cycle?
A) Interpretation of customer needs.
B) Specification of quality attributes.
C) Production of product as specified.
D) Benchmarking product quality against best in class.
Q2) The reason for failure of quality improvement efforts is
A) managers continue to focus on short-term financial results.
B) managers instinctively blame employees when there is a quality failure.
C) managers interfere with teamwork.
D) all of the above.
Q3) The total cost of quality in an organization is the sum of control costs and failure costs.
A)True
B)False
Q4) Which of the following is correct about the philosophies advocated by Joseph Juran?
A) Juran originated the idea of the quality trilogy.
B) Juran stressed the use of statistical methods to control quality.
C) Juran believed that planning is an important part of quality improvement.
D) All of the above.
Page 10
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Chapter 9: Quality Control and Improvement
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Q1) Generally,two types of data may be collected from sampling at an inspection point.These two types of data are
A) variable and attribute data.
B) variable and conditional data.
C) constant and attribute data.
D) constant and conditional data.
Q2) One of the first stages in any statistical process control program is to ascertain that the equipment utilized for an operation is inherently capable of producing within the design tolerance.For a particular lathe operation,run under controlled conditions so that no assignable causes of variation have been introduced,the outside diameter of each sampled part was measured,and the operator found that the standard deviation was 0.0075 centimeters (cm).What is the process capability if the upper specification limit is 7.508 cm and the lower specification limit is 7.388 cm?
A) 2.67
B) 1.00
C) 0.375
D) None of the above.
Q3) List and explain the five steps of the DMAIC process.
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Chapter 10: Forecasting
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Q1) A sports equipment retailer needs to forecast sales by product classes one to two years out.Which forecasting model is most appropriate?
A) Moving average model.
B) Weighted moving average model.
C) Informed judgment.
D) Econometric model.
Q2) A qualitative forecast would most likely be used for
A) aggregate planning.
B) scheduling.
C) process design.
D) inventory management.
Q3) All forecasts should include two estimates: an estimate of the demand and an estimate of the forecasting error.
A)True
B)False
Q4) Increasing the flexibility of operations and the supply chain is a main method for counteracting forecast error.
A)True
B)False
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Chapter 11: Capacity Planning
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Sample Questions
Q1) It is possible in the short term for a firm to operate above 100% utilization.
A)True
B)False
Q2) Effective capacity is
A) also called theoretical capacity.
B) base capacity plus time for maintenance, breaks, and absenteeism.
C) the amount of capacity that can be used in planning for actual output.
D) all of the above.
Q3) A firm produces 12 different services and has capacity to service 360,000 customers per year.A total of 24 service workers are employed.If 270,000 customers receive service during a particular year,what is the capacity cushion during that year?
A) 25%.
B) 50%.
C) 75%.
D) There is not enough information to determine the answer.
Q4) One way of leveling a seasonal demand pattern is by developing complementary products or services.
A)True
B)False
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Chapter 12: Scheduling Operations
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Q1) Which of the following is NOT typically addressed by advanced planning and scheduling (APS)software?
A) Finite capacity scheduling.
B) Constraint-based scheduling.
C) Plant-floor level job dispatching.
D) All of the above are addressed by APS.
Q2) In the language of theory of constraints,inventory is
A) the rate at which the system generates money through sales.
B) equal to the number of orders shipped.
C) the raw material value of any goods being held in inventory.
D) the sales of the plant minus the cost of raw materials used to produce those sales.
Q3) For services,the most common priority dispatch rule is
A) critical ratio.
B) preemptive rule.
C) first come, first served.
D) shortest processing time.
Q4) First come,first served is widely used in both service and manufacturing firms.
A)True
B)False
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Chapter 13: Project Planning and Scheduling
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Q1) Which of the following statements concerning project closing is NOT correct?
A) Clearly defining what constitutes the end of the project is important.
B) After the project is formally closed, the product or results are turned over to the new owners.
C) Closing includes paying all bills and settling all subcontracts.
D) All of the above are correct statements.
Q2) In project management,a work breakdown structure is
A) a listing of the work assignments given to the project team members.
B) a detailed time schedule for each project activity.
C) a top-down listing of all the tasks needed to complete a project.
D) none of the above.
Q3) Given the information above,what is the LS time for activity B?
A) 5
B) 7
C) 9
D) 11
Q4) CPM methods should be used when the activity times are constant.
A)True
B)False
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Chapter 14: Independent Demand Inventory
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Q1) Demand for an item is 20 units per week,and delivery lead time is 2 weeks.The safety stock is known to be 14 units.Using a P system,and assuming a P value of 3 weeks,what is the target inventory level (T)?
A) Less than 50.
B) Between 50 and 100 (including the values of 50 and 100).
C)More than 100.
D) None of the above.
Q2) Which of the following statements is NOT true about managing inventory in supply chains?
A) In a supply chain, a single firm typically controls all of the inventories that are required while manufacturing a product.
B) Coordination among supply chain partners is essential while managing inventory across the supply chain.
C) The total cost minimization approach can be applied while managing inventory across the supply chain.
D) Vendor-managed inventory is an initiative shifting responsibility for managing inventory to suppliers.
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Chapter 15: Materials Requirements Planning and ERP
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Q1) A requirements-based system derives orders from
A) customer requests.
B) forecast.
C) bill of materials.
D) master schedule.
Q2) The master production schedule for Product A shows a need for 30 units,and Product B shows a need of 25 units.To manufacture a unit of Product A,three units of component C are required.To manufacture a unit of Product B,four units of component C are required.Determine the gross requirements for component C to complete production.
A) 55
B) 190
C) 110
D) 380
E) None of the above.
Q3) MRP systems work better in a line flow system compared to a job shop.
A)True
B)False
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Chapter 16: Supply Chain Management
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Q1) Supply chain sustainability includes concern for human rights of workers in the supply chain.
A)True
B)False
Q2) Two common measures of supply chain flexibility are volume and mix flexibility.
A)True
B)False
Q3) Supply chain sustainability is accomplished primarily through A) innovation in products.
B) innovation in processes.
C) selection of suppliers who help pursue the triple bottom line.
D) all of the above.
Q4) Which of the following is NOT a specific measure of supply chain performance?
A) Quality.
B) Time.
C) Innovation.
D) Delivery.
Q5) Demand chain management tries to match supply and demand.
A)True
B)False
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Chapter 17: Sourcing
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Q1) Purchasing activities include
A) choosing suppliers.
B) negotiating contracts.
C) managing buyer-supplier relationships.
D) all of the above.
Q2) The main reason for offshoring is
A) lower item price.
B) lower wages.
C) lower total cost.
D) higher productivity.
Q3) Transaction costs tend to be higher for commodities,especially when multiple suppliers are in competition with each other.
A)True
B)False
Q4) If it isn't a core competence,anything else a company does is a candidate for outsourcing.
A)True
B)False
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Chapter 18: Global Logistics
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Q1) Third-party logistics providers can play a significant role when disaster strikes,such as getting supplies to hurricane victims.
A)True
B)False
Q2) For most firms,the optimal number of warehouses in a logistics network
A) is calculated using classic center-of-gravity analytics.
B) is where the total inbound transportation and storage costs are minimized.
C) is where the total outbound transportation and storage costs are minimized.
D) is where the total inbound transportation and storage costs equal the total outbound transportation and storage costs.
Q3) Logistics includes the planning and control of returned goods and related information from the customer to the manufacturer.
A)True B)False
Q4) Transportation costs are accounted for in the basic EOQ model.
A)True
B)False
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