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CCE QUESTION BANK -4 (33 QESTIONS)

P.4.1. Normally distributed data, by definition, is distributed evenly around :

a. Normal Value
b. Mean value
c. Six sigma value
d. Standard Deviation

P.4.2. Which of the following is not a principle of modern quality assurance?

a. Increased expenditure on inspection

b. Total quality control
c. The cost of quality
d. Continuous improvement

P.4.3. Which of the following is / are typical tools of statistical process control?

a. Pareto Analysis
b. Cause-& Effect Analysis
c. Process control Charts
d. All of the above

P.4.4. Costs of prevention include:

a. Training
b. Supplier certification
c. scrap
d. a & b

P.4.5. Good quality objectives should:

a. Be attainable and state specific deadlines for completion / implementation.

b. Define specific goals
c. Be understandable
d. All of the above.

P.4.6. When a process is set up optimally, the upper and lower specification limits
typically are:

a. Set outside the upper and lower control limits

b. Set equal to the upper and lower control limits.
c. Set at an equal distance from the mean value
d. a and c

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P.4.7. Which of the following is true of modern quality management?

a. Quality has become a competitive weapon

b. Quality is linked with profitability on both the market & cost sides.
c. Quality is defined by the customer.
d. All of the above are true.

P.4.8. Which of the following is not a part of the generally accepted view of quality today?

a. Quality is customer focused

b. Quality can be improved thru thorough inspection.
c. Improved quality saves money and increases business.
d. All above are correct.

P.4.9. The cost of internal failure include:

a. Scrap
b. Rework
c. a & b
d. None of the above

P.4.10. A well-written policy statement on quality will:

a. Be a statement of how, not why.

b. Promotes consistency throughout the organization and across projects.
c. Provides an explanation of how customers view quality in their organizations.
d. None of the above

P.4.11. Which of the following is / are true about quality costs when quality management
principles are applied?

a. Prevention costs may actually rise over time

b. Prevention costs and failure costs (internal and external) are directly related.
c. Prevention costs and failure costs (internal and external) are inversely related.
d. a & c

P.4.12. Quality audits:

a. Are not necessary if you do it right the first time.

b. Must be performed daily for each process.
c. Are important only for technology-oriented products
d. Are none of the above

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P.4.13. Which of the following is considered a cost of prevention?

a. Rework costs
b. Mass inspection
c. Creating quality control charts
d. All of the above.

P.4.14. Quality assurance includes:

a. Planning for collection of data.

b. Completing tic charts.
c. Inspection analysis
d. All of the above

P.4.15. If a project manager requires the use of a piece of equipment, how many days
must he rent the equipment before the cost is equal to the total cost of leasing the
equipment for one year?

Cost Categories Renting Leasing

Annual Maint $0.00 $3000

Daily Operation $0.00 $70
Daily Rental $100 $0.00

a. 300 days
b. 100 days
c. 700 days
d. 30 days

P.4.16. Which one of the following factors should be considered in the make or buy
analysis?

a. Direct & Indirect costs

b. Possible use by other projects and /or operations of the asset under consideration
c. a & b
d. None of the above

P.4.17. A customer asks a contractor to develop a new product for the customer. The
customer knows that the contractor will then "transfer" this knowledge to other product
lines, which may generate substantial future revenue for the contractor. The customer
would most likely negotiate which type of contract?

a. FFP
b. Cost Sharing
c. Time and material

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d. Cost

P.4.18. Which type/s of contract/s has / have no profit margins included.

a. Cost
b. Cost sharing
c. Time and material
d. a & b

P.4.19. Which of the following contract has the highest technical risk to the owner?

a. Time & Material

b. Firm Fixed price
c. Cost plus fixed fee
d. None of the above

P.4.20. The formal invitation to submit a price for specified goods / services is usually
referred to as:

a. Request for Proposal (RFP)

b. Request for Quotation (RFQ)
c. Bid invitation
d. a & b

P.4.21. A proposal kickoff meeting usually covers:

a. Project Scope
b. Staffing & assignments
c. Proposal schedule
d. All of the above

P.4.22. Which type/s of incentive contract/s has/have a total price ceiling?

a. Cost plus incentive fee

b. Fixed price incentive fee
c. firm fixed price
d. a & c

P.4.23. Standardization of purchased material:

a. Reduces risk of obsolescence

b. Reduces cost of purchasing & simplifies inventory control
c. Increases cost of storage.
d. a & c

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P.4.24. Which of the following is not usually included in the evaluation criteria of
proposals from vendors or contractors:

a. Contract price
b. Life cycle cost & technical merit
c. Project management approach
d. Evaluation criteria may include any or all of the above items.

P.4.25. Which of the following type of specifications gives measurable capabilities of a

product?

a. Functional specification
b. Conformance specification
c. Performance specification
d. Process capability specification

P.4.26. The comprehensive review of the procurement process from planning thru
contract administration is referred to as:

a. Post project evaluation

b. Procurement audit
c. Procurement performance evaluation
d. None of the above.

P.4.27. Which of the following is not a part of the contract administration?

a. Performance control
b. Financial control
c. Contract award
d. All above is part of contract administration.

P.4.28. The procurement document used to solicit responses from potential contractors /
sellers, primarily concerning price, is usually referred to as the:

a. Request for Proposal

b. Request for quotation
c. Invitation for bid
d. b or c

P.4.29. Which of the following is / are an appropriate reason/s to use financial incentives
in a contract?

a. To increase overall schedule.

b. To reduce overall cost of the project
c. To attain the minimum performance required by the contract.

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d. All of the above

P.4.30. What type of contract has a "ceiling" and "floor" (i.e max and min values) on the
allowable profit?

a. CPIF
b. FPIF
c. T & M
d. None of the above

P.4.31. In which of the following type of specifications does a buyer carry most of the
performance risk:

a. Functional specification
b. Performance specifications
c. Conformance specifications
d. Design specifications.

P.4.32. Which of the following is not part of the acquisition process?

a. Invitation to bid
b. Contract award
c. Notice to proceed
d. Source selection

P.4.33. Which of the following should be considered in the negotiation and selection of a
contract type?

a. The degree of clarity, which the end product is defined.

b. Acts of god or acts of nature.
c. Price competition
d. All above except b.

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ANSWERS

P.4.1 - B
P.4.2 - A
P.4.3 - D
P.4.4 - D
P.4.5 - D
P.4.6 - D
P.4.7 - D
P.4.8 - B
P.4.9 - C
P.4.10 - B
P.4.11 - A
P.4.12 - D
P.4.13 - C
P.4.14 - A
P.4.15 - B
P.4.16 - C
P.4.17 - B
P.4.18 - D
P.4.19 - A
P.4.20 - B
P.4.21 - C
P.4.22 - B
P.4.23 - B
P.4.24 - D
P.4.25 - C
P.4.26 - B
P.4.27 - C
P.4.28 - D
P.4.29 - B
P.4.30 - A
P.4.31 - D
P.4.32 - C
P.4.33 - D

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