224818626-Chap-009

Chapter 09 - Reducing Project Duration

Chapter 09 Reducing Project Duration Multiple Choice Questions

1. The president of a software company remarks in a speech that new technoogicay ad!anced software wi "e a!aia"e in one year. This is an e#ampe of reducing project duration caused "y$ %. &mposed project deadines '. Time to market C. (nforeseen project deays D. )igh o!erhead *. &ncenti!e contracts

+. &ntense go"a competition and rapid technoogica ad!ances create pressure on de!eoping projects rapidy. This is an e#ampe of reducing project duration caused "y$ %. &mposed project deadines '. Time to market C. (nforeseen project deays D. )igh o!erhead *. &ncenti!e contracts

,. % contractor finished a "ridge across a ake 1 months eary and recei!ed more than / miion for the eary competion. This is an e#ampe of reducing project duration caused "y$ %. &mposed project deadines '. Time to market C. (nforeseen project deays D. )igh o!erhead *. &ncenti!e contracts


. %d!erse weather design faws and e2uipment "reakdown can create negati!e sack. This is an e#ampe of reducing project duration caused "y$ %. &mposed project deadines '. Time to market C. (nforeseen project deays D. )igh o!erhead *. &ncenti!e contracts

3. Tota project costs incude a of the foowing e#cept$ %. 4uper!ision '. %dministration C. Project manager5s saary D. &nterest *. % of these are incuded in tota project costs

/. 6hich of the foowing is not considered a project indirect cost7 %. 4uper!ision '. Consutants C. *2uipment D. &nterest *. % of these are considered project indirect costs

8. Project costs are generay cassified as  costs. co sts. %. Direct '. &ndirect C. :!erhead D. 'oth % and ' are correct *. % ' and C are a correct


. %d!erse weather design faws and e2uipment "reakdown can create negati!e sack. This is an e#ampe of reducing project duration caused "y$ %. &mposed project deadines '. Time to market C. (nforeseen project deays D. )igh o!erhead *. &ncenti!e contracts

3. Tota project costs incude a of the foowing e#cept$ %. 4uper!ision '. %dministration C. Project manager5s saary D. &nterest *. % of these are incuded in tota project costs

/. 6hich of the foowing is not considered a project indirect cost7 %. 4uper!ision '. Consutants C. *2uipment D. &nterest *. % of these are considered project indirect costs

8. Project costs are generay cassified as  costs. co sts. %. Direct '. &ndirect C. :!erhead D. 'oth % and ' are correct *. % ' and C are a correct


. ;ow-cost reaistic efficient methods for competing an acti!ity under norma c onditions are supported "y  time. %.
9. The shortest possi"e time an acti!ity can "e competed reaisticay is caed  time. %. *#pedited '. %cceerated C. Crash D. :ptimistic *. :ptima

10. The most common response for meeting unattaina"e deadines is to %. Reduce or scae "ack the scope of the project. '. Decrease the critica paths C. Crash a eements of the project D. Change the time to market statement *. ' and C are correct

11.  costs are incurred when competing an acti!ity in its reaisticay shortest time. %.

1+. %n acti!ity5s crash costs incude  costs. %. Direct '. &ndirect C. :!erhead D. 'oth % and ' are correct *. % ' and C are correct

1,. Cost sope can "e determined "y di!iding the %. Run "y the rise '. Rise "y the run C. Crash cost "y the norma cost D.
1. The ess steep the cost sope of an acti!ity the %. ;ess it costs to shorten one time period '. >ore it costs to shorten one time period C. 4maer the crash time D. ;arger the crash time *. Cannot "e determined "y the information gi!en

13. 6hich of the foowing correcty cacuates an acti!ity5s cost sope7 %. ?norma cost-crash cost@A?norma time-crash time@ '. ?crash cost-norma cost@A?norma time-crash time@ C. ?norma time-crash time@A?crash cost-norma cost@ D. ?norma time-crash time@A?norma cost-crash cost@ *. ?crash cost-norma cost@A?crash time-norma time@

1/. %n acti!ity5s cost sope represents an acti!ity5s %. Tota cost per unit of time '. Cost per unit of time C. &ndirect cost per unit of time D. 'oth ' and C are correct *. % ' and C are a correct


18. &n seecting the "est acti!ity to reduce you woud first seect the acti!ity with the %. *ariest start time '. 4teepest sope C. ;east steep sope D. ;ongest duration *. ;argest crash time

1. The optimum duration for a project is at the point where$ %. Direct costs are the owest '. &ndirect costs are the owest C. Direct costs e2ua indirect costs D. Tota project costs are the owest *. The project changes from time-constrained to resource-constrained

19. Creating a Project Cost-Duration graph is usefu$ %. During the pre-project panning phase '. %fter the project has "egun C. %fter the competion of the project D. 'oth % and ' are correct *. % ' and C are a correct

+0. Crashing a project shoud occur$ %. %s eary as possi"e '. %s ate as possi"e C. >idway through the project D. 'oth % and C are correct *. Cannot "e determined with the information gi!en

+1. &f a network has se!era critica or near-critica paths it is deemed to "e$ %. 6e panned '. The owest cost aternati!e C. Resource-constrained D. 4ensiti!e *. &nsensiti!e


++. The project direct-cost ine near the norma point is usuay$ %. 4oped steepy '. Reati!ey fat C. Rising D. Baing *. enty soped

+,. The reationship "etween cost and time for !arious durations is assumed to "e$ %. ;inear '. Cur!iinear C. aria"e D. Con!ersey reated *. *#ponentiay reated

+. % common method for shortening the project time is to$ %. %dding resources '. 4chedue o!ertime C. 4u"contract an acti!ity D. 'oth % and ' are correct *. % ' and C are a correct

+3. % positi!e situation where mo!ing toward the optimum time can resut in !ery rea arge sa!ingsEthis occurs when the network is$ %. &nsensiti!e '. 4ensiti!e C. %head of schedue D. 4hifting to the critica chain *. &mpementing a fast-tracking system


+/. 6hich of the foowing isAare incuded in a Project Cost-Duration raph7 %. Tota indirect cost '. Tota direct cost C. Tota project cost D. 'oth % and ' are correct *. % ' and C are a correct

+8. :ne way of reducing project costs is identifying tasks that  can do themse!es. %. endors '. 4uppiers C. Customers D. Company empoyees *. Project teams

+. The most common method for shortening project time is to %. 4u"contract acti!ities '. Compromise the 2uaity C. %dd additiona staff and e2uipment D. 6ork o!ertime *. Reduce the project scope

+9. 6hich of the foowing is not one of the more commony used options for cutting project costs7 %. Reduce project scope '. )a!e owner take more responsi"iity C. >o!ing the competion date further out D. 'rainstorming cost sa!ings options *. :utsourcing project acti!ities


,0. 6hich of the foowing is the most common method for shortening project time7 %. %ssigning additiona staff and e2uipment '. 4u"contract work C. 4chedue o!ertime D. Reduce project scope *. Reduce the 2uaity

,1. %ccording to 'rooks5 ;aw adding more peope to a ate project is most ikey to ha!e which of the foowing impact7 %. Feep the project from sipping any further '. et the project "ack on schedue C. >ake the project sips further D. 'oth % and ' are correct *.
,+. 6hich of the foowing is the easiest method for shortening project time7 %. %ssigning additiona staff and e2uipment '. 4u"contract work C. 4chedue o!ertime D. Reduce project scope *. Reduce the 2uaity

,,. 6hich of the foowing is not one of the techni2ues for acceerating project competion7 %. %ssigning additiona staff and e2uipment '. *sta"ish a core team C. Do it twiceEfast and correcty D. Reduce project scope *. % of these are accepta"e techni2ues


,. 6hen the project team is saaried which of the foowing is the preferred choice for acceerating project competion7 %. %ssigning additiona staff and e2uipment '. 4u"contract work C. 4chedue o!ertime D. 6ork onger hours *. 'oth C and D are preferred choices

,3. The 4napshot from Practice GCe-Phone 6arsG is an e#ceent e#ampe of reducing project duration due to$ %. &mposed project deadines '. Time to market C. (nforeseen project deays D. )igh o!erhead *. &ncenti!e contracts

Fill in the Blank Questions

,/. 6hen a poitician makes a pu"ic statement that a new "uiding wi "e a!aia"e in two years a?n@  duration has reduced the project duration. 

,8. &ntense go"a competition and rapid technoogica ad!ances com"ine to create a?n@  imposed project duration date. 

,. The 4napshot from Practice which detaied the

,9. 4ometimes !ery high  costs are recogni=ed "efore a project "egins and reducing these costs through shorter project durations "ecomes a high priority. 

0. The  project cost is the sum of the indirect and direct costs. 

1. Costs such as super!ision administration consutants and interest are e#ampes of  project costs. 

+. Costs such as a"or materias e2uipment or contractors are e#ampes of  project costs. 

,. Direct costs are assigna"e directy to a project . 

. 'ecause direct costs are assumed to "e de!eoped from norma methods and time any reduction in acti!ity time shoud  the cost of the acti!ity. 

3. To shorten the duration of a project the project manager shoud imit the choices of acti!ities to just those which . 


/. The  time for an acti!ity represents ow-costs reaistic efficient methods for competing the acti!ity under typica conditions. 

8. 4hortening an acti!ity is caed . 

. The direct costs for competing an acti!ity as eary as possi"e is caed its . 

9. %n acti!ity5s  is cacuated "y di!iding the rise "y the run. 

30. 4u"tracting an acti!ity5s norma cost from the crash cost wi cacuate an acti!ity5s . 

31. 4u"tracting an acti!ity5s crash time from the norma time wi cacuate an acti!ity5s . 

3+. 6hen considering whether to mo!e the project to its optimum cost-time position the manager shoud aso consider . 

3,. % network is considered to "e  if it has a predominate critica path with no other path cose in terms of sack. 


3. The easiest way to add more resources to a project is not to add more peope "ut to schedue . 

33. %ccording to  adding more manpower to a ate software project makes it ater. 

3/. The easiest way to add more a"or to a project is not to add more peope "ut to add . 

38.  is the rearranging of the project network ogic so that critica acti!ities are done in parae rather than se2uentiay. 

3.  is pro"a"y the most common response for meeting unattaina"e deadines. 

39. &n the G&5 'et Hou...G 4napshot from Practice the draftsman won  for making a !ery difficut deadine. 

True / False Questions

/0. % rue of thum" for moderate- to high-technoogy firms is that a si#-month deay in "ringing a product to market can resut in a gross profit oss of a"out ,3 percent. True Base


/1. &mposed project durations amost aways eads to a higher-cost project than one panned with detaied scheduing of a the project5s acti!ities. True Base

/+. >anagers ha!e se!era effecti!e methods for crashing specific project acti!ities when resources are not constrained. True Base

/,. &ndirect costs generay represent o!erhead costs such as super!ision administration consutants and interest. True Base

/. The tota cost for each possi"e duration of a project is the sum of a"or materias and e2uipment. True Base

/3. Direct costs are so named "ecause they can "e assigned directy to a work package and acti!ity. True Base

//. 'ecause direct costs are assumed to "e de!eoped from norma methods and time any reduction in acti!ity time shoud add to the costs of the acti!ity. True Base

/8. The sum of the costs of a the work packages represents the tota direct costs for the project. True Base


/. &ncenti!e contracts can make reduction of project time rewardingEusuay for "oth the project contractor and owner. True Base

/9. 4hortening an acti!ity5s duration is termed crashing . True Base

80. *#pected time for an acti!ity represents ow-cost reaistic efficient methods for competing the acti!ity under anticipated conditions. True Base

81. Crash cost is the incrementa cost incurred when an acti!ity is reduced in duration. True Base

8+. The cost sope of an acti!ity is cacuated "y di!iding the run "y the rise. True Base

8,. Crash time is the greatest time reduction possi"e under reaistic conditions. True Base

8. The higher the sope of an acti!ity the greater the cost to reduce its duration. True Base

83. Creating a Project Cost-Duration raph in the pre-project panning phase without an imposed duration is the "est time to use this too. True Base


8/. Crashing a more e#pensi!e acti!ity may "e wise if fewer inherent risks are in!o!ed. True Base

88. % project network is cassified as sensiti!e if it has a arge num"er of interacting paths. True Base

8. Coecting crash times for a moderate-si=e project is reati!ey easy. True Base

89. 6hie the reationship "etween norma and crash times is reay cur!iinear the assumption that it is inear is sedom a concern for practicing managers. True Base

0. The accuracy of crash times and costs is fre2uenty rough at "est when compared with norma time and cost. True Base

1. :ne of the ad!antages of using a Project Cost-Duration raph is that it keeps the importance of indirect costs in the forefront of decision making. True Base

Short ns!er Questions


+. &dentify and "riefy descri"e fi!e reasons for attempting to reduce the duration of a project.

,. &dentify and gi!e an e#ampe for "oth of the major categories that make up project costs.

. Draw a typica Project Cost-Duration raph and a"e the key eements.

3. 6hy is the project duration with the owest direct costs sedom the optimum duration for a project7


/. i!en an e2ua e!e of risk and the need to reduce o!era project duration why woud you not seect the acti!ity with the owest sope in the entire project network to crash first7

8. 6hat is crashing and incude a discussion of crash time and crash cost 7

. )ow woud you cacuate an acti!ity5s sope and what does it represent7

9. i!en that an acti!ity5s norma time and cost are ten days and 00 and its crash time is fi!e days and 00 what is the acti!ity5s sope7


90. 6hat do we mean when we say that a project network is sensitive and why is that important to a project manager7

91. &dentify options for acceerating a project schedue when resources are not constrained.

9+. &dentify options for acceerating a project schedue when resources are constrained or the "udget is se!erey constrained.

9,. 6hat are the "enefits to using a Project Cost-Duration raph to assist in comparing any proposed aternati!e or change with the current "aseine7


9. 6hat is Critica-chain ?C-C@ project management and why can it "e of "enefit to project managers7


Chapter 09 Reducing Project Duration %nswer Fey

Multiple Choice Questions

1. The president of a software company remarks in a speech that new technoogicay ad!anced software wi "e a!aia"e in one year. This is an e#ampe of reducing project duration caused "y$ " &mposed project deadines '. Time to market C. (nforeseen project deays D. )igh o!erhead *. &ncenti!e contracts G&mposed deadinesG is another reason for acceerating project competion. Bor e#ampe the president of a software company remarks in a speech that new ad!anced software wi "e a!aia"e in one year. 4uch statements too often "ecome imposed project duration datesE without any consideration of the pro"ems or cost of meeting such a date. The project duration time is set whie the project is in its GconceptG phase "efore or without any detaied scheduing of a the acti!ities in the project. This phenomenon occurs !ery fre2uenty in practiceI

AACSB: Analytic Bloom's: Knowledge Learning Objective: Rationale for Redcing !roject "ration Level: #asy


+. &ntense go"a competition and rapid technoogica ad!ances create pressure on de!eoping projects rapidy. This is an e#ampe of reducing project duration caused "y$ %. &mposed project deadines B" Time to market C. (nforeseen project deays D. )igh o!erhead *. &ncenti!e contracts &ntense go"a competition and rapid technoogica ad!ances ha!e made speed a competiti!e ad!antage. To succeed companies ha!e to spot new opportunities aunch project teams and "ring new products or ser!ices to the marketpace in a fash.

AACSB: Analytic Bloom's: Com$rehension Learning Objective: Rationale for Redcing !roject "ration Level: #asy

,. % contractor finished a "ridge across a ake 1 months eary and recei!ed more than / miion for the eary competion. This is an e#ampe of reducing project duration caused "y$ %. &mposed project deadines '. Time to market C. (nforeseen project deays D. )igh o!erhead #" &ncenti!e contracts &ncenti!e contracts can make reduction of project time rewardingEusuay for "oth the project contractor and owner. Bor e#ampe a contractor finished a "ridge across a ake 1 months eary and recei!ed more than / miion for the eary competion. The a!aia"iity of the "ridge to the surrounding community 1 months eary to reduce traffic grid-ock made the incenti!e cost to the community seem sma to users.



. %d!erse weather design faws and e2uipment "reakdown can create negati!e sack. This is an e#ampe of reducing project duration caused "y$ %. &mposed project deadines '. Time to market C" (nforeseen project deays D. )igh o!erhead *. &ncenti!e contracts %nother common reason for reducing project time occurs when unforeseen deaysEfor e#ampe ad!erse weather design faws and e2uipment "reakdownE cause su"stantia deays midway in the project.

AACSB: Reflective %hin&ing Bloom's: Knowledge Learning Objective: Rationale for Redcing !roject "ration Level: #asy

3. Tota project costs incude a of the foowing e#cept$ %. 4uper!ision '. %dministration C. Project manager5s saary D. &nterest #" % of these are incuded in tota project costs Direct costs commony represent a"or materias e2uipment and sometimes su"contractors. &ndirect costs generay represent o!erhead costs such as super!ision administration consutants and interest.

AACSB: Reflective %hin&ing Bloom's: Com$rehension Learning Objective: !roject Cost"ration (ra$h Level: )edim


/. 6hich of the foowing is not considered a project indirect cost7 %. 4uper!ision '. Consutants C" *2uipment D. &nterest *. % of these are considered project indirect costs &ndirect costs generay represent o!erhead costs such as super!ision administration consutants and interest.

AACSB: Reflective %hin&ing Bloom's: Knowledge Learning Objective: !roject Cost"ration (ra$h Level: )edim

8. Project costs are generay cassified as  costs. %. Direct '. &ndirect C. :!erhead D" 'oth % and ' are correct *. % ' and C are a correct Direct Costs J &ndirect Costs K Tota Costs

AACSB: Analytic Bloom's: Knowledge Learning Objective: Constrcting a !roject Cost"ration (ra$h Level: #asy


. ;ow-cost reaistic efficient methods for competing an acti!ity under norma c onditions are supported "y  time. "
AACSB: Reflective %hin&ing Bloom's: Knowledge Learning Objective: Constrcting a !roject Cost"ration (ra$h Level: #asy

9. The shortest possi"e time an acti!ity can "e competed reaisticay is caed  time. %. *#pedited '. %cceerated C" Crash D. :ptimistic *. :ptima The shortest possi"e time an acti!ity can reaisticay "e competed in is caed its crash time.



10. The most common response for meeting unattaina"e deadines is to " Reduce or scae "ack the scope of the project. '. Decrease the critica paths C. Crash a eements of the project D. Change the time to market statement *. ' and C are correct &t is prudent to e#amine the direct costs of shortening the critica path !ersus the o!erhead cost sa!ings.

AACSB: Analytic Bloom's: Com$rehension Learning Objective: O$tions for Accelerating !roject Com$letion Level: #asy

11.  costs are incurred when competing an acti!ity in its reaisticay shortest time. %.


1+. %n acti!ity5s crash costs incude  costs. " Direct '. &ndirect C. :!erhead D. 'oth % and ' are correct *. % ' and C are correct The direct cost for competing an acti!ity in its crash time is caed crash cost. 'oth norma and crash times and costs are coected from personne most famiiar with competing the acti!ity.

AACSB: Reflective %hin&ing Bloom's: Com$rehension Learning Objective: Constrcting a !roject Cost"ration (ra$h Level: )edim

1,. Cost sope can "e determined "y di!iding the %. Run "y the rise B" Rise "y the run C. Crash cost "y the norma cost D.


1. The ess steep the cost sope of an acti!ity the " ;ess it costs to shorten one time period '. >ore it costs to shorten one time period C. 4maer the crash time D. ;arger the crash time *. Cannot "e determined "y the information gi!en The ess steep the cost sope of an acti!ity the ess it costs to shorten one time period.

AACSB: Analytic Bloom's: Com$rehension Learning Objective: Constrcting a !roject Cost"ration (ra$h Level: )edim

13. 6hich of the foowing correcty cacuates an acti!ity5s cost sope7 %. ?norma cost-crash cost@A?norma time-crash time@ B" ?crash cost-norma cost@A?norma time-crash time@ C. ?norma time-crash time@A?crash cost-norma cost@ D. ?norma time-crash time@A?norma cost-crash cost@ *. ?crash cost-norma cost@A?crash time-norma time@ ?crash cost-norma cost@A?norma time-crash time@.



1/. %n acti!ity5s cost sope represents an acti!ity5s %. Tota cost per unit of time B" Cost per unit of time C. &ndirect cost per unit of time D. 'oth ' and C are correct *. % ' and C are a correct Fnowing the sope of acti!ities aows managers to compare which critica acti!ities to shorten. The ess steep the cost sope of an acti!ity the ess it costs to shorten one time periodL a steeper sope means it wi cost more to shorten one time unit.


18. &n seecting the "est acti!ity to reduce you woud first seect the acti!ity with the %. *ariest start time '. 4teepest sope C" ;east steep sope D. ;ongest duration *. ;argest crash time The ess steep the cost sope of an acti!ity the ess it costs to shorten one time period.



1. The optimum duration for a project is at the point where$ %. Direct costs are the owest '. &ndirect costs are the owest C. Direct costs e2ua indirect costs D" Tota project costs are the owest *. The project changes from time-constrained to resource-constrained 4ee Bigure 9./ on Page ,1.


19. Creating a Project Cost-Duration graph is usefu$ %. During the pre-project panning phase '. %fter the project has "egun C. %fter the competion of the project D" 'oth % and ' are correct *. % ' and C are a correct 4uch a graph can "e used "efore the project "egins or whie the project is in progress.

AACSB: Reflective %hin&ing Bloom's: Com$rehension Learning Objective: !ractical Considerations Level: )edim


+0. Crashing a project shoud occur$ %. %s eary as possi"e '. %s ate as possi"e C. >idway through the project D. 'oth % and C are correct #" Cannot "e determined with the information gi!en Coecting crash times for e!en a moderate-si=e project can "e difficut. The meaning of crash time is difficut to communicate. 6hat is meant when you define crash time as Gthe shortest time you can reaisticay compete an acti!ityG7 Crash time is o pen to different interpretations and judgments.

AACSB: Analytic Bloom's: Com$rehension Learning Objective: !ractical Considerations Level: "ifficlt

+1. &f a network has se!era critica or near-critica paths it is deemed to "e$ %. 6e panned '. The owest cost aternati!e C. Resource-constrained D" 4ensiti!e *. &nsensiti!e % network is sensiti!e if it has se!era critica or near-critica paths.

AACSB: Analytic Bloom's: Knowledge Learning Objective: !ractical Considerations Level: #asy


++. The project direct-cost ine near the norma point is usuay$ %. 4oped steepy B" Reati!ey fat C. Rising D. Baing *. enty soped The project direct-cost ine near the norma point is usuay reati!ey fat.


+,. The reationship "etween cost and time for !arious durations is assumed to "e$ " ;inear '. Cur!iinear C. aria"e D. Con!ersey reated *. *#ponentiay reated The cost-time reationship is inear.



+. % common method for shortening the project time is to$ %. %dding resources '. 4chedue o!ertime C. 4u"contract an acti!ity D. 'oth % and ' are correct #" % ' and C are a correct The most common method for shortening project time is to assign additiona staff and e2uipment to acti!ities.

AACSB: Reflective %hin&ing Bloom's: Knowledge Learning Objective: O$tions for Accelerating !roject Com$letion Level: )edim

+3. % positi!e situation where mo!ing toward the optimum time can resut in !ery rea arge sa!ingsEthis occurs when the network is$ " &nsensiti!e '. 4ensiti!e C. %head of schedue D. 4hifting to the critica chain *. &mpementing a fast-tracking system % positi!e situation where mo!ing toward the optimum time can resut in !ery rea arge sa!ingsEthis occurs when the network is insensiti!e.

AACSB: Reflective %hin&ing Bloom's: Knowledge Learning Objective: !ractical Considerations Level: #asy


+/. 6hich of the foowing isAare incuded in a Project Cost-Duration raph7 %. Tota indirect cost '. Tota direct cost C. Tota project cost D. 'oth % and ' are correct #" % ' and C are a correct 4ee ist on Page ,1.

AACSB: Reflective %hin&ing Bloom's: Knowledge Learning Objective: Constrcting a !roject Cost"ration (ra$h Level: )edim

+8. :ne way of reducing project costs is identifying tasks that  can do themse!es. %. endors '. 4uppiers C" Customers D. Company empoyees *. Project teams :ne way of reducing project costs is identifying tasks that customers can do themse!es. )omeowners fre2uenty use this method to reduce costs on home impro!ement projects. Bor e#ampe to reduce the cost of a "athroom remode a homeowner may agree to paint the room instead of paying the contractor to do it. :n &4 projects a customer may agree to take on some of the responsi"iity for testing e2uipment or pro!iding in-house training.

AACSB: Reflective %hin&ing Bloom's: Com$rehension Learning Objective: *s the *sse+ Learning Objective: ,ot %ime Learning Objective: -hat if Cost Level: #asy


+. The most common method for shortening project time is to %. 4u"contract acti!ities '. Compromise the 2uaity C" %dd additiona staff and e2uipment D. 6ork o!ertime *. Reduce the project scope The most common method for shortening project time is to assign additiona staff and e2uipment to acti!ities.

AACSB: Analytic Bloom's: Com$rehension Learning Objective: O$tions for Accelerating !roject Com$letion Level: )edim

+9. 6hich of the foowing is not one of the more commony used options for cutting project costs7 %. Reduce project scope '. )a!e owner take more responsi"iity C" >o!ing the competion date further out D. 'rainstorming cost sa!ings options *. :utsourcing project acti!ities 6ays to cut costs are Reduce project scope ha!e the owner take more responsi"iity outsourcing project acti!ities or e!en the entire project " rainstorming cost sa!ings options.

AACSB: Reflective %hin&ing Bloom's: Knowledge Learning Objective: *s the *sse+ Learning Objective: ,ot %ime Learning Objective: -hat if Cost Level: )edim


,0. 6hich of the foowing is the most common method for shortening project time7 " %ssigning additiona staff and e2uipment '. 4u"contract work C. 4chedue o!ertime D. Reduce project scope *. Reduce the 2uaity The most common method for shortening project time is to assign additiona staff and e2uipment to acti!ities.

AACSB: Analytic Bloom's: Knowledge Learning Objective: O$tions for Accelerating !roject Com$letion Level: #asy

,1. %ccording to 'rooks5 ;aw adding more peope to a ate project is most ikey to ha!e which of the foowing impact7 %. Feep the project from sipping any further '. et the project "ack on schedue C" >ake the project sips further D. 'oth % and ' are correct *.
AACSB: Reflective %hin&ing Bloom's: Knowledge Learning Objective: O$tions for Accelerating !roject Com$letion Level: #asy


,+. 6hich of the foowing is the easiest method for shortening project time7 %. %ssigning additiona staff and e2uipment '. 4u"contract work C" 4chedue o!ertime D. Reduce project scope *. Reduce the 2uaity The easiest way to add more a"or to a project is not to add more peope "ut to schedue o!ertime.


,,. 6hich of the foowing is not one of the techni2ues for acceerating project competion7 %. %ssigning additiona staff and e2uipment '. *sta"ish a core team C. Do it twiceEfast and correcty D. Reduce project scope #" % of these are accepta"e techni2ues %dding resources outsourcing project work scheduing o!ertime esta"ishing a core project team and the concept of do it twice - fast and correcty are options when resources are not constrained.



,. 6hen the project team is saaried which of the foowing is the preferred choice for acceerating project competion7 %. %ssigning additiona staff and e2uipment '. 4u"contract work C. 4chedue o!ertime D. 6ork onger hours #" 'oth C and D are preferred choices :!ertime and working onger hours is the preferred choice for acceerating project competion especiay when the project team is saaried.


,3. The 4napshot from Practice GCe-Phone 6arsG is an e#ceent e#ampe of reducing project duration due to$ %. &mposed project deadines B" Time to market C. (nforeseen project deays D. )igh o!erhead *. &ncenti!e contracts There are many good reasons for attempting to reduce the duration of a project. :ne of the more important reasons today is time to market. &ntense go"a competition and rapid technoogica ad!ances ha!e made speed a competiti!e ad!antage. To succeed companies ha!e to spot new opportunities aunch project teams and "ring new products or ser!ices to the marketpace in a fash. Perhaps in no industry does speed matter as much as in the eectronics industry.


Fill in the Blank Questions


,/. 6hen a poitician makes a pu"ic statement that a new "uiding wi "e a!aia"e in two years a?n@  duration has reduced the project duration. i$posed G&mposed deadinesG is another reason for acceerating project competion. Bor e#ampe a poitician makes a pu"ic statement that a new aw "uiding wi "e a!aia"e in two years.


,8. &ntense go"a competition and rapid technoogica ad!ances com"ine to create a?n@  imposed project duration date. $arket &ntense go"a competition and rapid technoogica ad!ances ha!e made speed a competiti!e ad!antage. To succeed companies ha!e to spot new opportunities aunch project teams and "ring new products or ser!ices to the marketpace in a fash.

AACSB: Reflective %hin&ing Bloom's: Com$rehension Learning Objective: Rationale for Redcing !roject "ration Level: #asy

,. The 4napshot from Practice which detaied the
AACSB: Analytic Bloom's: Com$rehension Learning Objective: O$tions for Accelerating !roject Com$letion Level: #asy


,9. 4ometimes !ery high  costs are recogni=ed "efore a project "egins and reducing these costs through shorter project durations "ecomes a high priority. o%erhead 4ometimes !ery high o!erhead costs are recogni=ed "efore the project "egins. &n these cases it is prudent to e#amine the direct costs of shortening the critica path !ersus the o!erhead cost sa!ings.

AACSB: Reflective %hin&ing Bloom's: Com$rehension Learning Objective: Rationale for Redcing !roject "ration Level: #asy

0. The  project cost is the sum of the indirect and direct costs. total see Bigure 9.3 on Page ,1.


1. Costs such as super!ision administration consutants and interest are e#ampes of  project costs. indirect &ndirect costs generay represent o!erhead costs such as super!ision administration consutants and interest.

AACSB: Analytic Bloom's: Com$rehension Learning Objective: !roject Cost"ration (ra$h Level: #asy


+. Costs such as a"or materias e2uipment or contractors are e#ampes of  project costs. direct Direct costs commony represent a"or materias e2uipment and sometimes su"contractors.

AACSB: Reflective %hin&ing Bloom's: Com$rehension Learning Objective: !roject Cost"ration (ra$h Level: #asy

,. Direct costs are assigna"e directy to a project . !ork package Direct costs are assigned directy to a work package and acti!ity hence the term.

AACSB: Reflective %hin&ing Bloom's: Com$rehension Learning Objective: !roject Cost"ration (ra$h Level: #asy

. 'ecause direct costs are assumed to "e de!eoped from norma methods and time any reduction in acti!ity time shoud  the cost of the acti!ity. increase 'ecause direct costs are assumed to "e de!eoped from norma methods and time any reduction in acti!ity time shoud add to the costs of the acti!ity.

AACSB: Analytic Bloom's: Com$rehension Learning Objective: !roject Cost"ration (ra$h Level: )edim


3. To shorten the duration of a project the project manager shoud imit the choices of acti!ities to just those which . are on the critical path 4ometimes !ery high o!erhead costs are recogni=ed "efore the project "egins. &n these cases it is prudent to e#amine the direct costs of shortening the critica path !ersus the o!erhead cost sa!ings. (suay there are opportunities to shorten a few critica acti!ities at ess than the daiy o!erhead rate. (nder specific conditions ?which are not rare@ huge sa!ings are possi"e with itte risk.

AACSB: Analytic Bloom's: Com$rehension Learning Objective: Rationale for Redcing !roject "ration Level: )edim

/. The  time for an acti!ity represents ow-costs reaistic efficient methods for competing the acti!ity under typica conditions. nor$al
AACSB: Reflective %hin&ing Bloom's: Com$rehension Learning Objective: Constrcting a !roject Cost"ration (ra$h Level: #asy

8. 4hortening an acti!ity is caed . crashing 4hortening an acti!ity is caed crashing.



. The direct costs for competing an acti!ity as eary as possi"e is caed its . crash cost The direct cost for competing an acti!ity in its crash time is caed crash cost. 'oth norma and crash times and costs are coected from personne most famiiar with competing the acti!ity.


9. %n acti!ity5s  is cacuated "y di!iding the rise "y the run. slope Cost 4ope K RiseARun


30. 4u"tracting an acti!ity5s norma cost from the crash cost wi cacuate an acti!ity5s . rise Rise K Crash cost -
AACSB: Analytic Bloom's: Knowledge Learning Objective: Constrcting a !roject Cost"ration (ra$h Level: )edim


31. 4u"tracting an acti!ity5s crash time from the norma time wi cacuate an acti!ity5s . run Run K
AACSB: Analytic Bloom's: Knowledge Learning Objective: Constrcting a !roject Cost"ration (ra$h Level: )edim

3+. 6hen considering whether to mo!e the project to its optimum cost-time position the manager shoud aso consider . risk 4houd the project owner or project manager go for the optimum cost-time7 The answer is G&t depends.G Risk must "e considered.


3,. % network is considered to "e  if it has a predominate critica path with no other path cose in terms of sack. insensiti%e There is a positi!e situation where mo!ing toward the optimum time can resut in !ery rea arge sa!ingsEthis occurs when the network is insensiti!e. % project network is insensiti!e if it has a dominant critica path that is no near-critica paths. &n this project circumstance mo!ement from the norma time point toward the optimum time wi not create new or nearcritica acti!ities.

AACSB: Analytic Bloom's: Com$rehension Learning Objective: !ractical Considerations Level: )edim


3. The easiest way to add more resources to a project is not to add more peope "ut to schedue . o%erti$e The easiest way to add more a"or to a project is not to add more peope "ut to schedue o!ertime.


33. %ccording to  adding more manpower to a ate software project makes it ater. Brooks& la! 'rooks5 aw$ %dding manpower to a ate software project makes it ater.


3/. The easiest way to add more a"or to a project is not to add more peope "ut to add . o%erti$e The easiest way to add more a"or to a project is not to add more peope "ut to schedue o!ertime.



38.  is the rearranging of the project network ogic so that critica acti!ities are done in parae rather than se2uentiay. Fast'tracking Bast-Tracking >akes it possi"e to rearrange the ogic of the project network so that critica acti!ities are done in parae ?concurrenty@ rather than se2uentiay.


3.  is pro"a"y the most common response for meeting unattaina"e deadines. Reducing project scope Pro"a"y the most common response for meeting unattaina"e deadines is to reduce or scae "ack the scope of the project.

AACSB: Reflective %hin&ing Bloom's: Com$rehension Learning Objective: O$tions for Accelerating !roject Com$letion Level: #asy

39. &n the G&5 'et Hou...G 4napshot from Practice the draftsman won  for making a !ery difficut deadine. tickets to a (asket(all ga$e 'rue Houng tes Danny that he knows this is going to "e a rush jo" "ut he is confident that he can do it. 6hen Danny "aks he responds G& te you what &5 make a "et with you. &f you are a"e to finish the design "y $00 &5 make sure you get two of the company5s tickets to tomorrow night5s Cetics-Fnicks "asket"a game.G Danny accepts the chaenge works fe!erishy to compete the assignment and is a"e to take his daughter to her first professiona "asket"a game.

AACSB: Reflective %hin&ing Bloom's: Com$rehension Learning Objective: !ractical Considerations Level: #asy

True / False Questions


/0. % rue of thum" for moderate- to high-technoogy firms is that a si#-month deay in "ringing a product to market can resut in a gross profit oss of a"out ,3 percent. TR)# Bor e#ampe a rue of thum" for moderate- to high-technoogy firms is that a si#-month deay in "ringing a product to market can resut in a oss of market share of a"out ,3 percent.

AACSB: Reflective %hin&ing Bloom's: Com$rehension Learning Objective: Rationale for Redcing !roject "ration Level: )edim

/1. &mposed project durations amost aways eads to a higher-cost project than one panned with detaied scheduing of a the project5s acti!ities. TR)# G&mposed deadinesG is another reason for acceerating project competion. The project duration time is set whie the project is in its GconceptG phase "efore or without any detaied scheduing of a the acti!ities in the project. This phenomenon occurs !ery fre2uenty in practiceI (nfortunatey this practice amost aways eads to a higher cost project than one that is panned using ow-cost and detaied panning. &n addition 2uaity is sometimes compromised to meet deadines. >ore important these increased costs of imposed duration dates are sedom recogni=ed or noted "y project participants.

AACSB: Reflective %hin&ing Bloom's: Com$rehension Learning Objective: Rationale for Redcing !roject "ration Level: )edim

/+. >anagers ha!e se!era effecti!e methods for crashing specific project acti!ities when resources are not constrained. TR)# >anagers ha!e se!era effecti!e methods for crashing specific project acti!ities when resources are not constrained.

AACSB: Reflective %hin&ing Bloom's: Com$rehension Learning Objective: O$tions for Accelerating !roject Com$letion Level: #asy


/,. &ndirect costs generay represent o!erhead costs such as super!ision administration consutants and interest. TR)# &ndirect costs generay represent o!erhead costs such as super!ision administration consutants and interest.

AACSB: Reflective %hin&ing Bloom's: Knowledge Learning Objective: !roject Cost"ration (ra$h Level: #asy

/. The tota cost for each possi"e duration of a project is the sum of a"or materias and e2uipment. F*S# Direct costs commony represent a"or materias e2uipment and sometimes su"contractors.

AACSB: Reflective %hin&ing Bloom's: Knowledge Learning Objective: !roject Cost"ration (ra$h Level: #asy

/3. Direct costs are so named "ecause they can "e assigned directy to a work package and acti!ity. TR)# Direct costs are assigned directy to a work package and acti!ity hence the term. The idea assumption is that direct costs for an acti!ity time represent norma costs which typicay mean ow-cost efficient methods for a norma time.



//. 'ecause direct costs are assumed to "e de!eoped from norma methods and time any reduction in acti!ity time shoud add to the costs of the acti!ity. TR)# 'ecause direct costs are assumed to "e de!eoped from norma methods and time any reduction in acti!ity time shoud add to the costs of the acti!ity.


/8. The sum of the costs of a the work packages represents the tota direct costs for the project. TR)# The sum of the costs of a the work packages or acti!ities represents the tota direct costs for the project.

AACSB: Reflective %hin&ing Bloom's: Knowledge Learning Objective: Constrcting a !roject Cost"ration (ra$h Level: )edim

/. &ncenti!e contracts can make reduction of project time rewardingEusuay for "oth the project contractor and owner. TR)# &ncenti!e contracts can make reduction of project time rewardingEusuay for "oth the project contractor and owner.

AACSB: Reflective %hin&ing Bloom's: Knowledge Learning Objective: Rationale for Redcing !roject "ration Level: )edim


/9. 4hortening an acti!ity5s duration is termed crashing . TR)# 4hortening an acti!ity is caed crashing.


80. *#pected time for an acti!ity represents ow-cost reaistic efficient methods for competing the acti!ity under anticipated conditions. F*S#

81. Crash cost is the incrementa cost incurred when an acti!ity is reduced in duration. F*S# The direct cost for competing an acti!ity in its crash time is caed crash cost.



8+. The cost sope of an acti!ity is cacuated "y di!iding the run "y the rise. F*S# Cost 4ope K RiseARun


8,. Crash time is the greatest time reduction possi"e under reaistic conditions. TR)# The shortest possi"e time an acti!ity can reaisticay "e competed in is caed its crash time.


8. The higher the sope of an acti!ity the greater the cost to reduce its duration. TR)# % steeper sope means it wi cost more to shorten one time unit.



83. Creating a Project Cost-Duration raph in the pre-project panning phase without an imposed duration is the "est time to use this too. TR)# Creating the graph in the preproject panning phase without an imposed duration is the first choice "ecause norma time is more meaningfu.


8/. Crashing a more e#pensi!e acti!ity may "e wise if fewer inherent risks are in!o!ed. TR)# Crashing a more e#pensi!e acti!ity may "e wise if fewer inherent risks are in!o!ed.


88. % project network is cassified as sensiti!e if it has a arge num"er of interacting paths. F*S# % network is sensiti!e if it has se!era critica or near-critica paths.



8. Coecting crash times for a moderate-si=e project is reati!ey easy. F*S# Coecting crash times for e!en a moderate-si=e project can "e difficut.

AACSB: Reflective %hin&ing Bloom's: Knowledge Learning Objective: !ractical Considerations Level: )edim

89. 6hie the reationship "etween norma and crash times is reay cur!iinear the assumption that it is inear is sedom a concern for practicing managers. TR)# 'ecause the accuracy of compressed acti!ity times and costs is 2uestiona"e the concern of some theoristsEthat the reationship "etween cost and time is not inear "ut cur!iinearEis sedom a concern for practicing managers.


0. The accuracy of crash times and costs is fre2uenty rough at "est when compared with norma time and cost. TR)# Regardess of the comfort e!e the accuracy of crash times and costs is fre2uenty rough at "est when compared with norma time and cost.

AACSB: Reflective %hin&ing Bloom's: Knowledge Learning Objective: !ractical Considerations Level: #asy


1. :ne of the ad!antages of using a Project Cost-Duration raph is that it keeps the importance of indirect costs in the forefront of decision making. TR)# The creation of such a graph keeps the importance of indirect costs in the forefront of decision making.


Short ns!er Questions

+. &dentify and "riefy descri"e fi!e reasons for attempting to reduce the duration of a project. 1. imposed durations made "y top management +. market demands created "y competition and rapid technoogy ad!ances ,. incenti!e contracts that pay for eary project competion . reco!ery of unforeseen project deays 3. to reduce project costs "y reducing charges created "y high o!erhead costs /. to reassign key resources to other projects.

AACSB: Analytic Bloom's: Knowledge Learning Objective: Resorce Allocation )ethods Level: "ifficlt

,. &dentify and gi!e an e#ampe for "oth of the major categories that make up project costs. 1. &ndirect costsL super!ision administration consutants and interest and +. direct costsL a"or materias and e2uipment.



. Draw a typica Project Cost-Duration raph and a"e the key eements. 4ee Bigure 9-1 in your te#t.


3. 6hy is the project duration with the owest direct costs sedom the optimum duration for a project7 &ndirect costs those accumuating each day wi at some point outweigh the reduction in direct costs eading to an increase in tota costs. The Project Cost-Duration graph is a mode that demonstrates this.

AACSB: Analytic Bloom's: Knowledge Learning Objective: !ractical Considerations Level: "ifficlt

/. i!en an e2ua e!e of risk and the need to reduce o!era project duration why woud you not seect the acti!ity with the owest sope in the entire project network to crash first7 &f it is not on the critica path crashing it wi not reduce project duration.

AACSB: Analytic Bloom's: Knowledge Learning Objective: !ractical Considerations Level: "ifficlt


8. 6hat is crashing and incude a discussion of crash time and crash cost 7 Crashing is shortening an acti!ity5s duration. Crash time is the shortest reaistic time that an acti!ity can "e competed. Crash costs are the tota costs associated with the crash time.


. )ow woud you cacuate an acti!ity5s sope and what does it represent7 %n acti!ity5s sope is the cost per unit of time to reduce its duration. &t is cacuated "y di!iding the rise "y the run.


9. i!en that an acti!ity5s norma time and cost are ten days and 00 and its crash time is fi!e days and 00 what is the acti!ity5s sope7 ?crash cost-norma cost@A?norma time-crash time@ K ?00-00@A?10-3@ K 0 per day



90. 6hat do we mean when we say that a project network is sensitive and why is that important to a project manager7 % network is sensiti!e if it has se!era critica or near-critica paths. This is important "ecause the P> cannot ony focus on the critica path due to the possi"iities of reati!ey sma acti!ity deays that wi cause other paths to "ecome critica.

AACSB: Analytic Bloom's: Com$rehension Learning Objective: !ractical Considerations Level: )edim

91. &dentify options for acceerating a project schedue when resources are not constrained. 1. outsourcing project work +. scheduing o!ertime ,. adding resources . esta"ish a core project team and 3. do it twice.

AACSB: Analytic Bloom's: Knowledge Learning Objective: O$tions for Accelerating !roject Com$letion Level: "ifficlt

9+. &dentify options for acceerating a project schedue when resources are constrained or the "udget is se!erey constrained. 1. fast-tracking +. critica chain ,. "rainstorming time sa!ers . reducing project scope 3. phase project dei!ery and /. compromise 2uaity.

AACSB: Analytic Bloom's: Knowledge Learning Objective: O$tions for Accelerating !roject Com$letion Level: "ifficlt

224818626-Chap-009

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