OM 300 EXAM 2 STUDY GUIDE
Project Characteristics - Answers - •Single unit
•Many related activities
•Difficult production planning and inventory control
•General purpose equipment
•High labor skills
Planning - Answers - goal setting, defining the project, team organization
Scheduling - Answers - relate people, money, and supplies to specific activities and
activities to each other
Controlling - Answers - monitor resources, costs, quality, and budgets; revise plans and
shift resources to meet time and cost demands
Project Planning - Answers - •Establishing objectives
•Defining project
•Creating work breakdown structure
•Determining resources
•Forming organization
Project Organization - Answers - -temporary structure
-specialists from entire company
-headed by project manager
Matrix Organization - Answers - permanent structure
When is project organization helpful - Answers - Specific goal/deadline
Unique/unfamiliar
Complex interrelated tasks w special skills
Temporary but critical
Cuts across organizational lines
Role of Project Manager - Answers - highly visible: Good coaches, good
communicators, and able to organize from a variety of disciplines
Project Manager Responsibilities - Answers - in order & on time, within budget, quality
goals, cheerleader for team
Ethical issues - Answers - Gifts from contractors
Alter status reports to mask delays
False reports for time/expenses
Compromise quality to meet schedules
, Work Breakdown Levels - Answers - 1.Project
2.Major tasks
3.Subtasks
4.Activities ("work packages")
Project Scheduling - Answers - -activities planned for
-order of performance accounted for
-activity time estimates recorded
-overall project time is developed
Purpose of Project Scheduling - Answers - 1.Shows the relationship of each activity to
others and to the whole project
2.Identifies the precedence relationships among activities
3.Encourages the setting of realistic time and cost estimates for each activity
4.Helps make better use of people, money, and material resources by identifying critical
bottlenecks in the project
Project Controlling - Answers - •Close monitoring of resources, costs, quality, budgets
•Revise the project plan and shift resources
•Software for extensive reports
Project Control Reports - Answers - 1.Detailed cost breakdowns for each task
2.Labor requirements
3.Cost and hour summaries
4.Raw materials and expenditure forecasts
5.Variance reports
6.Time analysis reports
7.Work status reports
Critical Path Method - Answers - -Consider precedence relationships and
interdependencies
-Uses an estimate of activity times
6 Steps CPM - Answers - 1. define project
2. develop activity relationships
3. draw network
4. assign time/cost estimates
5. compute critical path
6. use to plan, schedule, monitor, control
Questions CPM can answer - Answers - 1.When will the entire project be completed?
2.What are the critical activities or tasks in the project?
3. Which are the noncritical activities?
4. What is the probability the project will be completed by a specific date?
5. Is the project on schedule, behind schedule, or ahead of schedule?
6.Is the money spent equal to, less than, or greater than the budget?
Project Characteristics - Answers - •Single unit
•Many related activities
•Difficult production planning and inventory control
•General purpose equipment
•High labor skills
Planning - Answers - goal setting, defining the project, team organization
Scheduling - Answers - relate people, money, and supplies to specific activities and
activities to each other
Controlling - Answers - monitor resources, costs, quality, and budgets; revise plans and
shift resources to meet time and cost demands
Project Planning - Answers - •Establishing objectives
•Defining project
•Creating work breakdown structure
•Determining resources
•Forming organization
Project Organization - Answers - -temporary structure
-specialists from entire company
-headed by project manager
Matrix Organization - Answers - permanent structure
When is project organization helpful - Answers - Specific goal/deadline
Unique/unfamiliar
Complex interrelated tasks w special skills
Temporary but critical
Cuts across organizational lines
Role of Project Manager - Answers - highly visible: Good coaches, good
communicators, and able to organize from a variety of disciplines
Project Manager Responsibilities - Answers - in order & on time, within budget, quality
goals, cheerleader for team
Ethical issues - Answers - Gifts from contractors
Alter status reports to mask delays
False reports for time/expenses
Compromise quality to meet schedules
, Work Breakdown Levels - Answers - 1.Project
2.Major tasks
3.Subtasks
4.Activities ("work packages")
Project Scheduling - Answers - -activities planned for
-order of performance accounted for
-activity time estimates recorded
-overall project time is developed
Purpose of Project Scheduling - Answers - 1.Shows the relationship of each activity to
others and to the whole project
2.Identifies the precedence relationships among activities
3.Encourages the setting of realistic time and cost estimates for each activity
4.Helps make better use of people, money, and material resources by identifying critical
bottlenecks in the project
Project Controlling - Answers - •Close monitoring of resources, costs, quality, budgets
•Revise the project plan and shift resources
•Software for extensive reports
Project Control Reports - Answers - 1.Detailed cost breakdowns for each task
2.Labor requirements
3.Cost and hour summaries
4.Raw materials and expenditure forecasts
5.Variance reports
6.Time analysis reports
7.Work status reports
Critical Path Method - Answers - -Consider precedence relationships and
interdependencies
-Uses an estimate of activity times
6 Steps CPM - Answers - 1. define project
2. develop activity relationships
3. draw network
4. assign time/cost estimates
5. compute critical path
6. use to plan, schedule, monitor, control
Questions CPM can answer - Answers - 1.When will the entire project be completed?
2.What are the critical activities or tasks in the project?
3. Which are the noncritical activities?
4. What is the probability the project will be completed by a specific date?
5. Is the project on schedule, behind schedule, or ahead of schedule?
6.Is the money spent equal to, less than, or greater than the budget?
