Operations & Project Management Flashcards
7 cards from real CPM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Operations & Project Management flashcards as text
A manager needs to choose between two projects. Project A has an NPV of $120,000 and Project B has an NPV of $95,000. Using NPV analysis, which project should be selected?
Answer: Project A, because it has the higher net present value
Net Present Value analysis selects the project with the highest positive NPV, as it represents the greatest value added to the organization.
Which stakeholder communication principle should guide how often and in what format a project manager reports to senior executives?
Answer: Tailor frequency and format to the stakeholder's information needs and preferences
Effective stakeholder communication requires tailoring content, detail level, and frequency to each stakeholder's role, interest, and communication preferences.
An operations manager implements Statistical Process Control (SPC). A process is considered 'in control' when:
Answer: Data points fall randomly within the upper and lower control limits
A process is statistically in control when variation is caused only by common causes, with data points falling randomly within control limits.
During project planning, a manager identifies that two tasks can be started simultaneously and are not dependent on each other. These tasks have which relationship?
Answer: Parallel (concurrent) activity relationship
Tasks with no dependencies between them can be executed in parallel, potentially shortening the overall project schedule.
A manufacturing firm's customer demand requires completing 240 units per day in an 8-hour shift. What is the takt time?
Answer: 2 minutes per unit
Takt time = Available production time / Customer demand = 480 minutes / 240 units = 2 minutes per unit.
In project management, what is the purpose of a project baseline?
Answer: To provide the approved plan for scope, schedule, and cost against which performance is measured
A project baseline captures the approved scope, schedule, and cost plan, enabling variance analysis to measure actual performance against the plan.
Which operations management strategy involves positioning inventory close to customers to reduce lead time and improve service levels?
Answer: Forward (decentralized) inventory deployment
Forward inventory deployment places stock at regional or local distribution points near customers, reducing delivery lead times and improving responsiveness.