PRM crashing the project duration

Without any formal planning, the president of a software company remarks in a speech that new technologically advanced software will be available in one year. This may lead to a project that must be done faster than anticipated. This is an example of reducing project duration caused by

• Imposed project deadlines

• Time to market

• Unforeseen project delays

• High overhead

• Incentive contracts

As a project is crashed and project duration is reduced, indirect costs typically

• Increase

• Become unstable

• Decrease

• Become unreliable

• Stay the same

If an activity whose normal duration is 13 days can be shortened to 10 days for an added cost of $1,500, the crash cost per period is:

• $500

• $750

• $1,500

• $13,000

• $15,000

The less steep the cost slope of an activity, the

• Less it costs to shorten one time period.

• More it costs to shorten one time period.

• Smaller the crash time is.

• Larger the crash time is.

• Cannot be determined by the information given.

Two activities are candidates for crashing on a CPM network. Activity details are in the table below. To cut one day from the project's duration, activity _____ should be crashed first, adding ______ to project cost.

Activity Normal time Normal cost Crash duration Crash cost

One 8 days $6,000 6 days $6,800

Two 10 days $4,000 9 days $5,000

• One; $400

• One; $6,800

• Two; $1,000

• Two; $5,000

• One or two should be crashed; $1,400

A contractor finished a bridge across a lake 18 months early and received more than $6 million for the early completion. This is an example of reducing project duration caused by

• Imposed project deadlines

• Unforeseen project delays

• Time to market

• Incentive contracts

Which of the following is NOT considered a project indirect cost?

• Supervision

• Equipment

• The project manager's salary

• Consultants

In a Project Cost-Duration Graph, total project costs are a sum of

• Direct costs and the project manager's salary

• Labor cost and the project manager's salary

• Labor, material and equipment costs

• Direct and indirect costs

Which of the following correctly calculates an activity's cost slope?

• (normal cost - crash cost)/(normal time - crash time)

• (Crash cost - normal cost)/(normal time - crash time)

• (normal time - crash

  time)/(crash cost- normal cost)

• (crash cost - normal cost)/(crash time - normal time)