CPM Operations & Project Management 2 — Questions and Answers
Question 1: A project manager discovers that a key deliverable is two weeks behind schedule. Which response best applies the critical path method (CPM) to recover?
- Extend the project deadline by two weeks
- Crash activities on the critical path by adding resources (Correct answer)
- Remove non-critical tasks from scope
- Reassign the project to a more experienced manager
Correct answer: Crash activities on the critical path by adding resources
Crashing compresses the schedule by adding resources to critical path activities, directly recovering lost time.
Question 2: In operations management, which inventory model minimizes total holding and ordering costs by calculating the most economical order size?
- Just-in-Time (JIT) model
- ABC analysis
- Economic Order Quantity (EOQ) model (Correct answer)
- FIFO inventory system
Correct answer: Economic Order Quantity (EOQ) model
The EOQ model balances holding costs and ordering costs to find the optimal order quantity that minimizes total inventory cost.
Question 3: A manager uses a RACI chart during project planning. What does the 'A' (Accountable) designation mean?
- The person who performs the task
- The person ultimately answerable for correct task completion (Correct answer)
- Someone who provides input or expertise
- A stakeholder who receives task updates
Correct answer: The person ultimately answerable for correct task completion
Accountable means the person who is ultimately answerable for the outcome, typically approving the work done by the Responsible party.
Question 4: Which quality management tool displays the frequency of defect categories in descending order to help prioritize improvement efforts?
- Control chart
- Fishbone diagram
- Pareto chart (Correct answer)
- Scatter diagram
Correct answer: Pareto chart
A Pareto chart ranks defects by frequency to apply the 80/20 rule, identifying the vital few causes responsible for most problems.
Question 5: During project execution, a team member reports that scope creep is occurring. What is the FIRST action a project manager should take?
- Immediately implement the requested changes
- Evaluate the change request through the formal change control process (Correct answer)
- Refuse all additional requests to protect the original scope
- Escalate the issue to the project sponsor
Correct answer: Evaluate the change request through the formal change control process
All scope changes must be evaluated through the formal change control process to assess impact on cost, schedule, and quality before approval.
Question 6: An operations manager wants to reduce process variability in a manufacturing line. Which Six Sigma methodology is most appropriate for improving an existing process?
- DMADV (Define, Measure, Analyze, Design, Verify)
- PDCA (Plan, Do, Check, Act)
- DMAIC (Define, Measure, Analyze, Improve, Control) (Correct answer)
- Kaizen blitz
Correct answer: DMAIC (Define, Measure, Analyze, Improve, Control)
DMAIC is the Six Sigma framework specifically designed to improve existing processes by defining problems, measuring performance, analyzing root causes, implementing improvements, and controlling results.
Question 7: A project has an Earned Value (EV) of $80,000 and Actual Cost (AC) of $95,000. What does this indicate?
- The project is under budget
- The project is over budget (Correct answer)
- The project is ahead of schedule
- The project is on track
Correct answer: The project is over budget
A Cost Performance Index (CPI) below 1.0 (EV < AC) indicates the project is over budget, spending more than the value of work completed.
CPM Operations & Project Management 2
A project manager discovers that a key deliverable is two weeks behind schedule.
Which response best applies the critical path method (CPM) to recover?