ME or MEng Master of Engineering Master of Engineering Management 4

Question 1

An engineering manager is conducting a stakeholder analysis. Which group should typically receive the most intensive engagement strategy?

Accepted Answer

High power, high interest stakeholders

Answer

High power / high interest stakeholders can both block the project and are engaged enough to do so — they require the most active management and communication.

Question 2

Which contract type transfers the most cost risk to the contractor rather than the buyer?

Accepted Answer

Firm Fixed Price (FFP)

Answer

Under FFP, the contractor bears all cost overrun risk because the price is locked regardless of actual expenses, incentivizing efficient performance.

Question 3

A Six Sigma project is in the 'Analyze' phase of DMAIC. The primary goal of this phase is to:

Accepted Answer

Identify and verify the root causes of the defect

Answer

The Analyze phase uses tools like fishbone diagrams, regression, and hypothesis tests to determine and confirm the true root causes driving process defects.

Question 4

Engineering managers applying the Theory of Constraints (TOC) should focus improvement efforts on:

Accepted Answer

The system's bottleneck resource that limits throughput

Answer

TOC holds that every system has at least one constraint limiting its output; improving non-bottleneck steps provides no throughput gain until the constraint is addressed.

Question 5

When conducting a cost-benefit analysis for a capital project, which discount rate should an engineering manager typically use?

Accepted Answer

The company's weighted average cost of capital (WACC)

Answer

WACC represents the minimum return required by the firm's investors and is the standard hurdle rate for discounting future cash flows in NPV analysis.

ME or MEng Master of Engineering Practice Test

ME or MEng Master of Engineering Practice Test

ME or MEng Master of Engineering Master of Engineering Management 4