Project Management Questions | India's #1 Learning Platform. Start Complete Exam Preparation raed CaaS) pacar aa kad ay Preset D> Download App Question 1: The Delta model was created by 1. Dean Wilde and Arnoldo Hax 2. Micheal Porter 3. J Juran 4, Phillip Crosby CoerTailils) India's Super Teachers for all govt. exams Under One Roof oe Answer (Detailed © Option 1 : Dean Wilde and Arnoldo Hax Reena ate VvProject Management Question 1 Detailed Solution The Correct answer is Dean Wilde and Amoldo Hax. © Key Points + The Delta Model, named after the Greek letter "Delta’ symbolizing transformation and change, is a strategic management approach centered on customers. + In contrast to the traditional focus on product characteristics (product economics), this model places emphasis on consumer economics. + Its objective is to establish a robust connection between a company and its customers, as well as its complementary (other products and services within the same business ecosystem). + Dean Wilde and Amoldo Hax developed this customer-centric model. + It originated during discussions among MIT alumni. + The Delta Model has sparked extensive research into the factors that drive long-term profitability for businesses. ap Ace feaniation ‘ + The Delta Model can be visualized through the Strategic Triangle, comprising three key Oo » System Lock-in: = This point aims for market dominance and achieving complement @ It shifts the focus from product-centered economics to Oo Ps, making it highly sustainable, ™ System Lock-in ensures that customers becom ith the entire system. » Best Customer Solutions: Pad = This point emphasizes cooperatio in customer share. 1 By providing tailored solutions that customer needs, a company can secure a strong customer » Best Product: '|™ This point focuses on cr uperior product that outperforms competitors. = Having the best product can ‘ead to increased market share by attracting customers seeking top-quality offerings. System Lock-in Exclusive Channel eRe ee acrid feiliing, Customer Diferentiton aomer Integration Relstoranp "9Es eee arco Roe) Start Complete Exam Preparation Cee aR Se staS cal bol ir Marra ie ard Teeter (oreo D>» Download App Exori22 Question 2: View this Question Online > Which of the following is said to be an external risk factor for an entrepreneur? 1. Employee risk 2. Innovationrisk” 4. None of the above 5. More than one of the above. Answer (Detailed Solution Below) Option 3: Strategic risk Project Management Question 2 Detailed Solution f B, Extemal Risk Factors: External risks often include economic events that arise from outside the corporate structure. External events that lead to external risk cannot be controlled by @’company or cannot be forecasted with a high level of reliability. Following are the types of external risks Include economic factors, natural factors, and political factors 1. Economic Risk: Economic des changes in market conditions. 2. Natural Risk: Natural risk factors include natural disasters (such as earthquakes, floods, etc)3. Political Risk: Political risk is comprised of changes in the political environment or governmental policy that relate to financial affairs. Changes in import and export laws, tariffs, taxes, and other regulations all may affect a business negatively. 4, Technological Risk: This faces obstacles to growth performance due to the lack of technological mastery, lack of human resources, no focus on business, and impartial government policies. Hence, the correct answer is Strategic Risk. al eee ic BS Ea Orel Ce el) fared ees researc Exot Question 3: View this Question Online > Match List I with List II ust LIST (Project Network ‘soncepts) (Underlying meaning) |, [crashing an [Length of the longest path [* lactivity Ir [through the project network It shows the time and cost % IB. Project Network Il. |when the activity is fully, crashed it consists of anumber of Inodes and ¢ number of arcs (C-{Cntical path HL hat connects two different Inodes [Taking special (costly) imeasures to reduce the D.|Crash point IM-Iduration of an activity below its| normal value \ Se the correct answer from the options given below: 1. A=, B-IV,C-Ill,D-1 2. A-W,B-Ill,C-1,D-I3. A-IV,B-Ill,C-1,D-1 4. AI, B-1,.C-V, D-H Answer (Detailed Solution Below) Option 2: A-IV,B-Ill,C-|, D-II Project Management Question 3 Detailed Solution The correct answer Is A -IV, B- Ill, C- |, D-Il. © Key Points The correct sequence is: A. Crashing an activity - IV. Taking special (costly) measures to reduce the duratior below its normal value Crashing an activity refers to the process of shortening the duration of an activit involves taking special measures, which can be costly, to expedite the co These measures may include adding more resources, working equipment to accelerate the work. Crashing an activity allows f overall project duration but often comes with additional costs. B. Project Network - Ill. It consists of anumber of jee and jumber of arcs that connect two different nodes A project network is a graphical represer the activities and their dependencies within a project. It consists of nodes, which repre ®ctivities, and arcs, which connect the nodes to show the logical sequence and dependencies between the activities. The project network helps visualize the flow of work and the relationships among activities, aiding in project planning, scheduling, and monitoring C. Critical path - I. Length of the longest path through the project network The critical path in a project network is the longest path from the project's start to its end. it determines the minimum amount of time required to complete the project. Any delay in activities along the critical path will directly impact the overall project timeline. Identifying the critical path is essential for project scheduling and resource allocation, as it helps in prioritizing activities that are critical for the project's timely completion. D. Crash point - Il. It shows the time and cost when the activity is fully crashed The crash point represents the time and cost associated with fully crashing an activity in a project. Fully crashing an activity means reducing its duration to the shortest possible time by applying all available resources and measures. The crash point helps in evaluating the impact of crashing activities on project timelines and costs. It provides insights into the trade-offs between time and cost when accelerating specific activities in a project. Hence, the correct answer is A -IV, B - Ill, C- D-II.Fg Teen ner Se Start Complete Exam Preparation rears fared Pia COSC (oreo Exons) D>» Download App Question 4: View this Question Online > What are the characteristics of job shop production ? A. Different product types are produced B. Very large quantities are produced C. Single type of product is produced D. Low quantities of product are produced 1. AandB = 2. CandD e 3. Band) — ~ AandD Answer (Detailed Solution Below) Option 4: Aand D Project Management Question 4 Detailed Solution Explanation: Job ~ shop production + Job — shop production is characterized by the manufacturing of a large variety of products in small quantities that are designed and produced as per specifications are given by customers + The main feature of this production system is that it is highly flexible+ A shop — shop comprises general-purpose machines arranged in different departments + Example ~ Manufacture of aeroplanes and oil field equipment, machine tools, giant hydro turbine, rolling mills, and other heavy equipment Batch production + Batch production is a type of production in which the job passes through the functional departments in batches and each batch may have a different routing + Batch production is characterized by the manufacture and stocking of a limited number of products at regular intervals, awaiting sales + Example ~ Machine tools, pumps, compressors, stationary IC engines, etc. : Mass production ) + In mass production, the same type of product is manufactured to meet the continuous demand of the product - + Manufacturing of discrete components or assemblies in a very large volume is called mass production + Machines are arranged in a line acc: + Example ~ Nuts, bolts, screws, wash motors, sewing machines, tractors, ate. ‘0 the Sequence of operations on the product cils, matches, engine blocks, bicycles, electric Job-shop production a Batch 8 production 5 ‘s Mass = production 3 Continuos | production Volume of production Types of production systems & Tee anu parte) Start Complete Exam Preparation eee a Pear POs Download App raid eae Creag PaesQuestion 5: View this Question Online > «ts Zaire proposed "Building blocks of TQM" in which G on of 1901 xer Answer (Detailed Solution Below) Option 2: 1991 Project Management Question 5 Detailed Solution lanation: TQM: + Total Quality Management (TQM) is e management approach that conan and has steadily become more popular since the early 1980s. + Total quality is a description of the culture, ettitude, and organizatior to provide customers with products and services that satisfy th r + The culture requires quality in all aspects of the company’ s, with processes being done right the first time and defects and waste erad ations. + The "Building blocks of TQM’ were specifically propos seph Juran in his book "Juran on Quality Improvement in the year 1989. + According to Zaire and Simintirais (199 acombination of socio technical process towards doing the right things ext Ing right (internally), the first time and all the time with economic viabiligwat eac each process To be successfully | in organization must concentrate on the eight building blocks ane company that strives Ethics Integrity Trust Training Teamwork Leadership Recognition Communication PNOnaonsa eet g el PS Ela mel Ce Cle Ll) Cer ke sat cae ra hes PC Seier ry Creer Download App peers) Question 6 View this Question Online > Planning is often called the primary management function because it: 1. Creates the vision for the organizational members 2. Sets the tone for the organizational culture bef 3. Esteblishes the basis for all the other functions 4. Offers some basis for future decision making Answer (Detailed Solution Below) Option 3 : Establishes the basis for all the other functions Project Management Question 6 Detailed Solution The correct answer is Establishes the basis for all the other functions. * Planning is often called the primary management function because it establishes the basis for all the other functions. © Key Points + The management process consists of four primaty functions that managers must perform: » planning ‘ » organizing ’ > leading ° controlling+ Planning Is often calied the primary management function: = Planning means cefining performance goals for the organization and determining what actions and resources are needed to achieve the goals. > Through planning, management defines what the future of the organization should be and how to get there. © It establishes the basis for all the other functions. - A strategic plan bridges the gap between what an organization is and what it will become. » A tactical plan defines what has to be done, who will do it, and the resources needed to do it. eee atric Start Complete Exam Preparation arte ny aE Pe ea cad soles foreseen puoi Download App Question 7 View this Question Online Crashing is 1. Abandoning the project fe Pp 2. Completing the project with all possible haste 3. Red of duration for a few of the activities 4, Reducing the cost of the project with all needful modifications Answer (Detailed Solution Below) Option 3 : Reduction of duration for a few of the activities Project Management Question 7 Detailed Solution Explenation: i, & Crashing is the method for shortening the project duration by reducing the time of one or more critical activities to less than their normal time. In crashing if costlinereases then time decreases.Minumum cost = AN, optimal project time “Tatal/project costs a wt ‘/‘ Fe aaa cost NES cost Time Cost —Crashing project duration Ss India's #1 Learning Platform Start Complete Exam Preparation raed erated moa ti Horie DC sees Download App Question 8 The application of Special purpose material handing equipment is 1. Both ‘Process layout’ and ' Line layout 2. Process layout 3. Line layout 4. None of these & _*" ‘Solution Below) Option's : Line layout Project Management Question 8 Detalled Solution Re aR eos View this Question Online >Satna ee fee rel Serre NE ES ee OR ee ee aT en Process Layout: The process layout is recommended for batch production. All machines performing a similar type of operation are grouped at one location in the process layout e.g,, all lathes, milling machines, etc. are grouped in the shop will be clustered in like groups. 1 2 3 4 re 7 8 q % ° Process Layout showing product movements “VJ 1, Store room, 2. Inspection Department, 3. Broaching Section, 4. Milling Section 7 5. Lathe Section, 6. Shaper Section, 7. Drill Section, 8. Stock room Process layout is normally used when the production volume is not sufficient to justify a product layout. '° - Product Layout: Itis also known as line layout. In od arious operations on raw material are performed ina sequence and the machines are placed; ‘he product flow line i.e. machines are arranged in the sequence in which the raw material will be operated upon. This type of layout is preferred for continuous production i.e. involving a continuous flow of in-process material towards the finished product stage, Laihe mil Dri > Drit_ }-{Grinder Lathe Mill A Simple product layout —THEHSH=}- INPUT FINAL OUTPUT India’s #1 Learning Platform Start Complete Exam Preparation Rear eer (ga) Daily Live aed Deere Crees D Download AppQuestion 9 View this Question Online > What is the prime responsibility of the site management? 1. Implement safety rules 2. Training for-site persons» 3. coal ta quality audit 4, Establishment of work permit system Answer (Detailed Solution Below) Option 1: Implement safety rules Project Management Question 9 Detailed Solution Site Management: ; + Itis a professional service that provides a project's owner with effective management of the project's schedule, cost, quality, safety, scope, and function. + Site management is compatible with all project delivery methods. + It is undertaken as the last phase of the remedial program ata site which continues after a certificate of completion is issued, + For any site management Implementing safety rules is a prime responsibility. Other responsibilities of site iaRagerent + Plan and Develop the Project Idea + Create and Lead Team + Monitor Project Progress and Set Deadlines + Solve Issues + Manage finance + Ensure Stakeholder Satisfaction + Evaluate Project Performance os India's #1 Learning Platform € Start Complete Exam Preparationca Pipa Question Bank Evo Download App Question 10 % View this Question Online > Who has invented the SWOT analysis? % 4 1. Albert S. Humphrey 2. Peter Pyhrr 3. Phi iter 4. Peter Drucker ‘Answer (Detailed Solution Below) Option 1: Albert S. Humphrey Project Management Question 10 Detalled Solution Fi The correct answer is Albert s Humphery {3 © key Points oa + SWOT analysis: < - SWOT stands for Strengths, weakness, Syforsause, and threats. = Itis also called a SWOT matrix. » The strategy is historically credited to Albert Humphrey in the 1960s, but this attribution remains debatable. There is no universally-accepted creator. » SOFT is an ——e opportunities, faults, and threats. » Important Points t + Peter Pyhrr: He has developed ZBB (zero-based Budgeting). * Philip Kotler He is known for his definition of Marketing Mix and is regarded as the father of modem marketing. + Peter Drucker: He has written the Book The practice of management and is described as the founder of modern management. + He coined the term Knowledge Worker in 1959.ee abe alu earls) ut eC Start Complete Exam Preparation reed fae Cote tara es Download App Question 11 i View this Question Online > What is the first and most important function of management? 1. Planning 2. Controlling , Ce 7 4. Scheduling Answer (Detailed Solution Below) Option 1 : Planning Project Management Question 11 Detailed Solution Explanation: Management: + Management is a set of principles relating to the set of functions of planning, organizing, directing, and controlling, and the application of these principles in harnessing physical, financial, human, and informational resources efficiently and effectively to achieve organizational goals. Functions of Management > 1. Planning: It is a functiolijometermining in advance what is to be done and what Is to doit. Itis the first and most im) inction of management. 2. Organizing: It is the manager ent function of assigning duties, grouping tasks, establishing authority, and allocating resources required to carry out a specific plan 3. Staffing: It is @ function to make sure the right people with the right qualification are available aten NE ene Si ee ae ee en gE ee een ig eee ee 4, Directing: It involves leading, influencing, and motivating employees to perform the tasks assigned to them. 5. Controlling: It is a function of monitoring organizational performance towards the attainment of organizational goals. & fF Sean pee ria) Start Complete Exam Preparation PaO Practice ea aad VE Cres earrs & Quizzes Download App Question 12 View this Question Online > is a manufacturing philosophy that emphasizes careful scheduling of work, on-time delivery Of zero-defect supplies, and a highly skilled workforce. 1. PERT 2. MRP 3. E0Q 4. JIT Answer (Detailed Solution Below) Option 4: JIT Project Management Question 12 Detalled Solution et JIT is associated with Japanese management techniques. It is known as just-in-time production (JIT) isa set of principles and practices based on the philosophy that firms should hold little or no inventory beyond that required for immediate production or distribution.JIT consists of different operations such as, + Carefully scheduling + on-time dolivery + Zero defects * Skilled workforce © Additional Information Other Manufacturing phylosophies PERT stands for Program Evaluation and Review Technique and was developed to address the needs of projects for which the time and cost estimates tend to be quite uncertain. + Ithas a probabilistic approach and hence suitable for the projects which are to be conducted for the first time or projects related to research and development. + PERT uses 3 cases: > Optimistic time ~ estimates the shortest possible time required for the completion of the activity > Most likely time ~ estimates the time required for the completion of activity under normal circumstances » Pessimistic time + estimates the longest possible time required for the completion of the activity Most likely (L,,) PERT expected time (t,) tot(ten = 4) + te 6 Beta Distribution pessimistic (t,) Possible activity durations NA Cc E0Q: O The ordering quantity Q* at which holding cost becomes equal to oct the total inventory cost is minimum is known as Economic Order Quantity (E0\ Se At E0Q, Ordering cost = Holding cost }: — , |r ~ Ve 20,= £6, juantity to be ordered at each order ‘ost of holding one unit in inventory where D = Annual or yearly demand for inventory (unit/year), point (unit/order), C, = Cost of placing one order [Rs/order], C, for one complete year [Rs/unit/year]Materials requirements pranning (Vint) + Itis a simple system of calculating arithmetically the requirements of the input materials at different points of time based on the actual production plan. + It can be seen from the figure that an MRP system has three major input components: Master production Schedule (MPS) Inventory Bill of — | __[ Material es Planning |_| ee 1, Planned Order Release 2. Order Rescheduling 3. Planned Orders Receipts India’s #1 Learning Platform Mean errs Start Complete Exam Preparation Oe aed Tee ce a Crees peor Download App Question 13 cs: View this Question Online Which one of the following schedules shows the specific activities necessary to complete an activity or work package? _ 1. Projectschedule 2 TR ecu 3. Task schedule 4. Internal schedule Answer (Detailed Solution Below)Option 3 : Task schedule Project Management Question 13 Detailed Solution Hanation: Work break down structure Work break down (WBD) — ‘deliverable and the decomposition of the deliverable into work packages. Plan—Program—Project—Sub-project—Activity—Work—Task + Task schedule deals with allocation of resources related to work package as well activity. + When the project activities have been defined, they are broken down into tasks and after time & resource allocation, task schedules are prepared which is specified activities necessary to ‘complete a work package. C2 een PS la mel (ce lee Ll) Bean oe ost eo on Elie Doren Crear Download App Ra Eee Question 14 4 : View this Question Online > The best tool to ensure that there is neither piling up of stocks nor shortage of materials in a project to run it economically. Is 1 —" ‘Quantity 2. ABC Analysis 3. Inventory Control and Management 4. Gantt Chart Method Answer (Detailed Solution Below)Option 3 : Inventory Control and Management 3 j Project Management Question 14 Detailed Solution lanation: + Inventory contro! with optimum stock level to minimize annual cost by controlling inventory. + The purpose of inventory management is to ensure availability of materials in sufficient quantity as when required and aiso to minimize investment in inventories. + EOQ is the order size at which the sum of carrying cost and ordering cost is minimum. Pn eerie) Sela ered) Clu eel) Rea coe ate ies Fe) Practice kee Extra DOr US } Question Bank Download App Question 15 View this Question Online The market price per share of a company is Rs. 125. The dividend per share (DPS) is Rs 12 and DPS is expected to grow at a constant rate of 8% per annum. The cost of the equity capital to company will be ’ 1, 17.6% 2. 15.4% % 3. 18.2% 4. 11.8% Answer (Detailed Solution Below) Option 1 : 17.6%Ee ae ee ae Conca: \" & Cost of equity= DP. +r O Calculation: He? Given: Market price per share = Rs 1. xe2 Rs 12, Rate = 8 % = 0,08 Now, Cost of equity = BP. + “Cost of equity = 32 + 0.08 +-Cost of equity = 0.096 + 0.08 = 0.176 Thus, the cost of equity = 17.6%