CPM & PERT; Cost-Effective Analysis

Question 1

Details of Critical Paths

Answer 1

Activity
Predecessor
Duration

Question 2

Defined as the difference between the Latest Start and Earliest Start.

Answer 2

Slack or Total Float

Question 3

TRUE or FALSE

When an activity has zero Total Float, Free Float will also be zero.

Answer 3

True

Question 4

TRUE or FALSE

Activities with zero Total Float are on the Critical Path

Answer 4

True

Question 5

A type of bar chart used in scheduling of activities.

Answer 5

Gantt Chart

Question 6

Uses 3-time estimates

Answer 6

Program Evaluation Review Technique (PERT)

Question 7

2 Types of Float or Slack

Answer 7

Total Float

Free Float

Question 8

To compute a __________, the effectiveness is divided by the cost of a given alternative.

_____ = E/C

Answer 8

Effectiveness-Cost Ratio

Question 9

Is for those times when you are pretty sure about the duration of each task.

Answer 9

Critical Path Method (CPM)

Question 10

Weighing costs and benefits when benefits are not measured in terms of money.

Answer 10

Cost-Effectiveness Analysis (CEA)

Question 11

Is the spare time available when all preceding activities occur at the earliest possible times and all succeeding activities occur at the earliest possible times.

Answer 11

Free Float

Question 12

2 of the most important assumptions made by PERT

Answer 12

1. The Beta distribution is appropriate for calculation of activity durations.
2. Activities are independent, and the time required to complete one activity has no bearing on the completion times of it’s successor activities in the network. The validity of this assumption is questionable when we consider that in practice, many activities have dependencies.

Question 13

Is the spare time available when all preceding activities occur at the earliest possible times and all succeeding activities occur at the latest possible times.

Answer 13

Total Float

Question 14

3 Time Estimates of PERT

Answer 14

A - Optimistic Time
B - Pessimistic Time
M - Most Likely Time

Question 15

Is used in more uncertain situations.

Answer 15

Program Evaluation Review Technique (PERT)

Question 16

Project management techniques, which have been created out of the need of Western industrial and military establishments to plan, schedule and control complex projects.

Answer 16

CPM (Critical Path Method) and PERT (Programme Evaluation Review Technique)

Question 17

Is designed to compare the costs and effects of two or more alternatives with similar objectives.

Ex: Number of lives saved per peso/dollar spent on alternative cancer treatments

Answer 17

Cost-Effectiveness Analysis (CEA)

Question 18

The longest time path through the network.

Answer 18

Critical Path

Question 19

An analysis tool used for some programs, projects and policies, wherein the benefits are not directly measured in terms of money either because no monetary values have been estimated or because the analyst cannot or will not use monetary values to measure the benefit.

Answer 19

Cost-Effectiveness Analysis (CEA)

Question 20

To compute a __________, the cost of a given alternative is divided by effectiveness:

_____ = C/E

Answer 20

Cost-Effectiveness Ratio

Question 21

Challenges in using Cost-Effective Analysis (CEA)

Answer 21

1. Linking objectives and effectiveness
   • Reliability
   • Validity
2. Intermediate vs final outcomes
   • Lack of data
   • No proper measures
   • Hypothesize link between intermediate and final outcomes
   • Use secondary source to establish link
3. Dealing with multiple outcomes
   • Conduct a separate CEA for each measure of effectiveness
   • Present results of each CEA and clearly describe the relevant tradeoffs
   • Conduct Cost-Utility Analysis
4. Distribution effects
   • Ignore uneven distribution (“average”)
   • Calculate separate estimates of effectiveness for each group
   • Average the effectiveness measure for a number of groups into a single summary measure

Question 22

________ or Network Analysis as the technique is sometimes called, developed along two parallel streams, one industrial and the other military.

Answer 22

CPM/PERT

Question 23

Advantages of Cost-Effective Analysis (CEA)

Answer 23

• Avoids some of the most controversial issues in Cost-Benefit Analysis, such as measuring the benefits of saving a life in monetary terms.
• Where direct comparisons of the effects of different policies are possible, CEA can provide some easily understandable and persuasive evidence.

Question 24

It compares costs per unit of benefit of alternative programs.

Answer 24

Cost-Effectiveness Analysis (CEA)

Question 25

Uses 1-time estimate

Answer 25

Critical Path Method (CPM)

Question 26

TRUE or FALSE

Programs with different objectives will have entirely different indicators of effectiveness, so they CAN be readily compared with the CE framework.

Answer 26

FALSE - “CANNOT”

Question 27

Is calculated by

Due date minus Expected date

Answer 27

Z-score

Question 28

Is one of two ways or tools to identify the paths through your project.

Answer 28

Critical Path Method (CPM)