Question

8. if the project duration needs to be reduced then

a. the activity with the lost cost should be selected

b. activity which is currently undergoing should be selected

c. activity with the highest cost should be selected

d. activity on the critical path should be selected

.

9. it does not make any sense to crash if

a. if there is no critical activity left

b. project crashing cost is equal or more than saving

c. project is more than 75% compelet

d. project crashing cost can not be calculated

.

10. forecast errors can not be attributed to

a. sudden change in trend

b. past sales data

c. random variation

d. change in business environment

Answer 1

Answer to question 8 :

A project has multiple sets of paths consisting of various activities. Out of these paths, one or more than one is/are critical path(s). Critical paths are those which takes maximum time to execute and complete. Naturally. Project duration becomes equivalent to the duration of the critical path. All other non-critical paths will have durations lesser than durations of critical path. Therefore, if a project’s duration needs to be reduced, one needs to target reducing the durations of critical paths. It will be a futile effort to reduce the duration of a project by reducing durations of non-critical paths without paying attention to the need for reduction of durations of critical paths. Therefore the correct answer would be “ d. activity on the critical path should be selected”

IF THE PROJECT DURATION NEEDS TO BE REDUCED THEN ACTIVITY ON THE CRITICAL PATH SHOULD
BE SELECTED.

Answer to question 9 :

The main purpose of crashing is to fruitfully reduce project duration. It requires the allocation of resources that cost money. However such allocation of resources reduces the duration of a specific activity which in turn helps to reduce the duration of the project. Reduced duration of projects brings advantages to its stakeholders financially as well as qualitatively. It is always a priority to first target activities on the critical path for the purpose of crashing.

However underlying principle should be that additional resource costs committed for the crashing of activities should be compensated by bigger gain achieved through reduction of project duration. Therefore correct answer should be “b. project crashing cost is equal to or more than saving “

IT DOES NOT MAKE ANY SENSE TO CRASH IF PROJECT CRASHING COST IS EQUAL TO OR MORE THAN SAVING