Chapter 12

Question 1

Project

Answer 1

Requires completion – consumption of resources, etc.

Question 2

6 Phases of a Project

Answer 2

1. ) Concept
2. ) Project definition
3. ) Planning
4. ) Preliminary studies
5. ) Performance
6. ) Post-completion

Question 3

1.) Concept

Answer 3

Create initial budget estimates, etc.

Question 4

2.) Project definition

Answer 4

How to accomplish work, etc.

Question 5

3.) Planning

Answer 5

Develop…tasks, timing milestones, budgets & resources, etc.

Question 6

4.) Preliminary studies phase

Answer 6

Data collection, etc.

Question 7

5.) Performance phase

Answer 7

Execute!

Question 8

6.) Post-completion phase

Answer 8

Confirm results, etc.

Question 9

(CPM) Critical Path Method

Answer 9

Technique used when there is single known time for each activity w/ no variance.

Question 10

(PERT) Program Evaluation & Review Technique

Answer 10

Estimates & variables are uncertain pessimistic v. optimistic.

Question 11

Learning Curves

Answer 11

Establish rate of improvement due to direct labor cost improvement as production volumes increase

Used to lower purchase price over time

Question 12

Value Analysis

Answer 12

Making sure everything is right at lowest total cost

Value = Function / Cost

Question 13

Value Analysis Process

Answer 13

1. ) Gather info
2. ) Speculate
3. ) Analyze
4. ) Recommend & Execute
5. ) Summarize & Follow up

Question 14

Quantity Discount Analysis

Answer 14

Allows buyer to verify that quantity discounts are reasonable

Buyer may be able to negotiate price improvements

Question 15

Process of Mapping

Answer 15

Map of production…