CPM Operations & Project Management 3 — Questions and Answers
Question 1: Which project scheduling technique uses three time estimates (optimistic, most likely, pessimistic) to account for uncertainty in activity durations?
- Gantt chart
- Critical Path Method (CPM)
- Program Evaluation and Review Technique (PERT) (Correct answer)
- Work Breakdown Structure (WBS)
Correct answer: Program Evaluation and Review Technique (PERT)
PERT uses three-point estimation to calculate expected durations and assess schedule risk under uncertainty.
Question 2: A lean operations manager identifies a step in the production process that produces more output than the next step can handle. This is an example of which type of waste?
- Waiting
- Overproduction (Correct answer)
- Defects
- Transportation
Correct answer: Overproduction
Overproduction—producing more than what is needed or before it is needed—is considered the most serious waste in lean thinking because it generates other wastes.
Question 3: What is the primary purpose of a project charter in project initiation?
- To define detailed task assignments for team members
- To formally authorize the project and grant the PM authority to apply resources (Correct answer)
- To document all project risks and mitigation strategies
- To establish the project's quality standards and acceptance criteria
Correct answer: To formally authorize the project and grant the PM authority to apply resources
The project charter formally authorizes the project's existence and gives the project manager authority to assign resources to project activities.
Question 4: In supply chain management, which strategy involves a supplier delivering materials directly to the production line exactly when needed, eliminating warehouse storage?
- Drop shipping
- Just-in-Time (JIT) delivery (Correct answer)
- Cross-docking
- Vendor-managed inventory
Correct answer: Just-in-Time (JIT) delivery
JIT delivery synchronizes supplier deliveries with production schedules to eliminate inventory holding costs and storage needs.
Question 5: A project manager calculates a Schedule Performance Index (SPI) of 0.75. What does this mean?
- The project is 25% under budget
- The project is completing only 75 cents of scheduled work for every dollar of time elapsed (Correct answer)
- The project will finish 25% ahead of schedule
- The project has used 75% of its total budget
Correct answer: The project is completing only 75 cents of scheduled work for every dollar of time elapsed
SPI = EV/PV; an SPI of 0.75 means the project is earning only $0.75 of planned value for every $1 of planned time, indicating it is behind schedule.
Question 6: Which operations concept describes the maximum output rate a process or system can achieve under normal operating conditions?
- Throughput
- Capacity (Correct answer)
- Efficiency
- Utilization
Correct answer: Capacity
Capacity is the maximum sustainable output rate of a process, facility, or system under normal conditions.
Question 7: During project closeout, which activity is MOST important for organizational learning?
- Releasing project team members to other assignments
- Archiving all financial records for audit purposes
- Conducting a lessons-learned review and documenting findings (Correct answer)
- Obtaining formal customer acceptance of deliverables
Correct answer: Conducting a lessons-learned review and documenting findings
Lessons-learned documentation captures successes and failures to improve future project performance and builds organizational knowledge.
CPM Operations & Project Management 3
Which project scheduling technique uses three time estimates (optimistic, most likely, pessimistic) to account for uncertainty in activity durations?