Project Management MCQ Quiz - Objective Question with Answer for Project Management - Download Free PDF

Explanation:

• Accreditation means an official approval of an organization.
• It is a act of granting approval to an organization by an official review board,  after the organization has met specific written requirements or standards.
• Purpose: To maintain uniform standards of nursing education
• To safeguard  the institution from social, educational & political pressure.
• To meet administrative requirements.
• For institutional self improvement by inspection & evaluation.

Additional Information

• Function of Accreditation:
• To protect the autonomy of health services program.
• To preserve the quality of nursing education.
• To protect the public from ill prepared nurses.
• To ensure the quality services given by organization.

 

 

Concept:

• Quality Assurance: It is an on going, systematic comprehensive evaluation of health care services & impact of those services on health care practices.
• Its main purpose is to ensure delivery of quality care to client.
• To evaluate achievement of nursing care.
• To maintain code of ethics for nurses in India.

Explanation:

• The best measure to determine quality care is being delivered in hospital is Quality Indicator.
• Quality Indicators are standardized, evidence-based measures of healthcare quality that can be used to evaluate inpatient administrative data & to measure or track clinical performance and outcomes (goals).
• Quality indicator mainly focus on effectiveness, safety, time & patient centeredness.

Additional Information

• Nursing Audit: 
• It is an evaluation of patient care through analysis of written records maintained by nurses in patient treatment profile.
• Purpose: To improve quality of health care.
• Promote communication among nurses & other health team members.
• Advantage: A patient is assured of good services.

Explanation:

• Accreditation means an official approval of an organization.
• It is a act of granting approval to an organization by an official review board,  after the organization has met specific written requirements or standards.
• Purpose: To maintain uniform standards of nursing education
• To safeguard  the institution from social, educational & political pressure.
• To meet administrative requirements.
• For institutional self improvement by inspection & evaluation.

Additional Information

• Function of Accreditation:
• To protect the autonomy of health services program.
• To preserve the quality of nursing education.
• To protect the public from ill prepared nurses.
• To ensure the quality services given by organization.

 

 

Concept:

• Inventory control is a scientific system that indicates what to order when to order, & how much to order & how much to stock so that purchasing costs & storing costs are kept as low as possible.
• Purpose: To supply the materials in time.
• To give maximum client service by meeting their requirements timely, effectively, smoothly & satisfactorily.
• To avoid a shortage of stock.

Explanation:

• FSN Analysis is an inventory management technique that is based on the rate of consumption of spares and goods in an organization.
• Movements analysis forms the basis for this classification.
• The items are classified as fast-moving, slow-moving & non-moving.

Additional Information

•  ABC Analysis: It is the process of classifying items by using values as measures.
• HML Analysis: classified according to their unit values as high, medium & low.
• VED analysis: classified according to the demand of item: Vital, Essential & Desirable

 Explanation:

• Role of Staff Nurse:

1. Observation
2. Record & reporting
3. Provide quality care to the client
4. To ensure the standard of practice.
5. To maintain the confidentiality of the patient.
6. To provide privacy to patient
7. To provide health education at the community level
8. To maintain effective communication
9. To provide correct information.
10. To prevent risk factors.

Additional Information

• Required ( Qualification) of Staff Nurse:

1. BS.c nursing/ GNM  degree
2. RN & RM state nursing council certificate
3. 1-year clinical experience at least in 50 bedded hospital
4. Others requirement:
5. Effective communication skill
6. Managerial skill
7. Team building spirit

Explanation:

Crashing is the method for shortening the project duration by reducing the time of one or more critical activities to less than their normal time. In crashing if cost increases then time decreases.

The special-purpose material handling equipment is used in the line layout. Line layout is also known as product layout.

Process Layout:

The process layout is recommended for batch production. All machines performing a similar type of operation are grouped at one location in the process layout e.g., all lathes, milling machines, etc. are grouped in the shop will be clustered in like groups.

Process layout is normally used when the production volume is not sufficient to justify a product layout.

Product Layout:

It is also known as line layout. In implies that various operations on raw material are performed in a sequence and the machines are placed along the product flow line i.e. machines are arranged in the sequence in which the raw material will be operated upon.

This type of layout is preferred for continuous production i.e. involving a continuous flow of in-process material towards the finished product stage.

Problem-solving is the act of defining a problem; determining the cause of the problem; identifying, prioritizing, and selecting alternatives for a solution; and implementing a solution.

There are 4 steps to solve the problem:

Step 1: Understand the problem.

Step 2: Devise a plan (translate).

Step 3: Carry out the plan (solve).

Step 4: Look back (check and interpret).

Fixation - An ability to see a problem from a fresh perspective. This impedes problem-solving, Two examples of fixation are mental set and functional fixedness.

Explanation:

• Critical Path Method (CPM) have been used for planning scheduling and controlling in the construction project management.
• It is activity oriented method.

 

	CPM	PERT
I.	Critical path method	Programme valuation and review technique
II.	Deterministic	Probabilistic
III.	Control time and cost	Control only time
IV.	Activity oriented	Event oriented
V.	One time estimate	Three time estimate
VI.	Use-Non Research	Research

 

Concept:

\(Cost\;of\;equity = \frac{{DP}}{{MPS}} + r\)

Calculation:

Given:

Market price per share = Rs 125, Dividend per share = Rs 12, Rate = 8 % = 0.08

Now,

\(Cost\;of\;equity = \frac{{DP}}{{MPS}} + r\)

\(\therefore Cost\;of\;equity = \frac{{12}}{{125}} + 0.08\)

∴ Cost of equity = 0.096 + 0.08 = 0.176

Thus, the cost of equity = 17.6%

Explanation:

Work break down structure

Work break down (WBD) defines each deliverable and the decomposition of the deliverable into work packages.

Plan—Program—Project—Sub-project—Activity—Work—Task

• Task schedule deals with allocation of resources related to work package as well activity.
• When the project activities have been defined, they are broken down into tasks and after time & resource allocation, task schedules are prepared which is specified activities necessary to complete a work package.

Explanation:

• Project Management is the process which includes initiating the project, developing a plan, executing the project as per approved plan, monitoring and controlling the project, handing over the output of the project to the client and finally closing the project.
• Product Management is responsible to oversee all the aspects of product's production is set a product vision and strategy that is differentiated and delivers unique value based on customer demand, define what product will deliver and timeline for implementation, provide cross functional leadership, most notably between engineering team, stores, distribution, sales, marketing and support.
• Commercial Management is identification and development of business opportunities and profitable management of projects and contracts from in option to completion.
• Venture management is a discipline that focuses on being both innovative and challenging in the realm of introducing what could be a completely new product or entering a promising new emerging market.
• After the project has been successfully completed, production is undertaken. Product Managers look after the aspects of products production, production scheduling, and inventory requirement of location and sales of the project.

Explanation:

• When two variables are negatively correlated, one variable decreases as the other increases, and vice versa. Negative correlations between two investments are used in risk management to diversify, or mitigate, the risk associated with a portfolio.
• Business risk refers to the basic viability of a business—the question of whether a company will be able to make sufficient sales and generate sufficient revenues to cover its operational expenses and turn a profit.
• While financial risk is concerned with the costs of financing, business risk is concerned with all the other expenses a business must cover to remain operational and functioning. These expenses include salaries, production costs, facility rent, office, and administrative expenses.
• Interest rate risk is the risk that an investment's value will change due to a change in the absolute level of interest rates, the spread between two rates, in the shape of the yield curve, or in any other interest rate relationship.
• This type of risk affects the value of bonds more directly than stocks and is a significant risk to all bondholders. As interest rates rise, bond prices in the secondary market fall and vice versa.

Explanation:

• An angel investor (also known as a private investor, seed investor or angel investor) is a high net worth individual who provides financial backing for small startups or entrepreneurs, typically in exchange for ownership equity in the company.
• The funds that angel investors provide may be a one-time investment to help the business get off the ground or an ongoing injection to support and carry the company through its difficult early stages.
• Angel investors vary widely, but they are typically willing to accept risk and demand little or no control in return for the chance to own.

Explanation:

JIT is associated with Japanese management techniques. It is known as just-in-time production (JIT) is a set of principles and practices based on the philosophy that firms should hold little or no inventory beyond that required for immediate production or distribution.

JIT consists of different operations such as,

• Carefully scheduling
• on-time delivery 
• Zero defects
• Skilled workforce​

Additional Information

Other Manufacturing phylosophies

PERT stands for Program Evaluation and Review Technique and was developed to address the needs of projects for which the time and cost estimates tend to be quite uncertain.

• It has a probabilistic approach and hence suitable for the projects which are to be conducted for the first time or projects related to research and development.
• PERT uses 3 cases:
  • Optimistic time ⇒ estimates the shortest possible time required for the completion of the activity
  • Most likely time ⇒ estimates the time required for the completion of activity under normal circumstances
  • Pessimistic time ⇒ estimates the longest possible time required for the completion of the activity

 

EOQ:

The ordering quantity Q* at which holding cost becomes equal to ordering cost and the total inventory cost is minimum is known as Economic Order Quantity (EOQ).

At EOQ, Ordering cost = Holding cost

\(\frac{D}{{{Q^*}}}{C_o} = \frac{{{Q^*}}}{2}{C_h} \Rightarrow {Q^*} = \sqrt {\frac{{2D{C_o}}}{{{C_h}}}} \)

where D = Annual or yearly demand for inventory (unit/year), Q = Quantity to be ordered at each order point (unit/order), Co = Cost of placing one order [Rs/order], Ch = Cost of holding one unit in inventory for one complete year [Rs/unit/year]

Materials requirements planning (MRP) 

• It is a simple system of calculating arithmetically the requirements of the input materials at different points of time based on the actual production plan.
• It can be seen from the figure that an MRP system has three major input components:

Explanation:

There are 7 stage to project management but there are five stage mainly.

(a) Project identification

(b) Project preparation (project formulation)

(c) Project appraised

(d) Negotiation

(e) Project approval

(f) Project planning

(g) Project implementation

Explanation:

A standard project typically has the following four major phases (each with its own agenda of tasks and issues): initiation, planning, implementation, and closure. Taken together, these phases represent the path a project takes from the beginning to its end and are generally referred to as the project "life cycle."

Initiation Phase

• During the first of these phases, the initiation phase, the project objective or need is identified; this can be a business problem or opportunity.
• An appropriate response to the need is documented in a business case with recommended solution options.
• A feasibility study is conducted to investigate whether each option addresses the project objective and a final recommended solution is determined. Issues of feasibility ("can we do the project?") and justification ("should we do the project?") are addressed.

Planning Phase

• The next phase, the planning phase, is where the project solution is further developed in as much detail as possible and the steps necessary to meet the project's objective are planned.
• In this step, the team identifies all of the work to be done. T
• The project's tasks and resource requirements are identified along with the strategy for producing them. This is also referred to as "scope management."

Implementation (Execution) Phase

• During the third phase, the implementation phase, the project plan is put into motion and the work of the project is performed.
• It is important to maintain control and communicate as needed during implementation. Progress is continuously monitored and appropriate adjustments are made and recorded as variances from the original plan. In any project, a project manager spends most of the time in this step.
• During project implementation, people are carrying out the tasks, and progress information is being reported through regular team meetings. The project manager uses this information to maintain control over the direction of

Closing Phase

• During the final closure or completion phase, the emphasis is on releasing the final deliverables to the customer, handing over project documentation to the business, terminating supplier contracts, releasing project resources, and communicating the closure of the project to all stakeholders.
• The last remaining step is to conduct lessons-learned studies to examine what went well and what didn't. Through this type of analysis, the wisdom of experience is transferred back to the project organization, which will help future project teams.

The intensity of activities (% of work done) is highest in the implementation phase of PLC.

From the above graph it is clear that in a project life cycle, the maximum percentage of effort is done in the implementation phase.

Explanation:

• Inventory control with optimum stock level to minimize annual cost by controlling inventory.
• The purpose of inventory management is to ensure availability of materials in sufficient quantity as when required and also to minimize investment in inventories.
• EOQ is the order size at which the sum of carrying cost and ordering cost is minimum.

Explanation:

• Return on Investment (ROI) is a performance measure used to evaluate the efficiency of an investment or compare the efficiency of a number of different investments. (Average rate of return is also called as return on investment).
• ROI tries to directly measure the amount of return on a particular investment, relative to the investment’s cost.
• It calculates the profitability of the company by measuring the earnings related to the amount of capital invested.
• To calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment. The result is expressed as a percentage or a ratio.

\(Return\;on\;investment\;\left( {ROI} \right) = \frac{{{\rm{Annual\;average\;profit\;after\;tax\;}}}}{{{\rm{Average\;investment}} \times 100}}\)​

Points to remember:

1. A benefit-cost ratio (BCR) is an indicator showing the relationship between the relative costs and benefits of a proposed project, expressed in monetary or qualitative terms. If a project has a BCR greater than 1.0, the project is expected to deliver a positive net present value to a firm and its investors.
2. Net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time.
3. Payback Period (PBP) is one of the simplest capital budgeting techniques. It calculates the number of years a project takes in recovering the initial investment based on the future expected cash inflows.

Explanation:

• Finding an alternative with the most cost-effective or highest achievable performance under the given constraints, by maximizing desired factors and minimizing undesired one.
• In comparison, maximization means trying to attain the highest or maximum result or outcome without regard to cast or expense.

Site Management:

• It is a professional service that provides a project’s owner with effective management of the project's schedule, cost, quality, safety, scope, and function.
• Site management is compatible with all project delivery methods.
• It is undertaken as the last phase of the remedial program at a site which continues after a certificate of completion is issued.
• For any site management Implementing safety rules is a prime responsibility.
   

Other responsibilities of Site Management:

• Plan and Develop the Project Idea
• Create and Lead Team
• Monitor Project Progress and Set Deadlines
• Solve Issues
• Manage finance
• Ensure Stakeholder Satisfaction
• Evaluate Project Performance

Explanation:

Return on investment (ROI):

• It is a financial metric that is widely used to measure the probability of gaining a return from a capital investment.
• It is a ratio that compares the gain or loss from an investment relative to its cost.
• It can be used to measure the profitability of a stock investment, when deciding whether or not to invest in the purchase of a business, or evaluate the results of a real estate transaction.

 

Additional Information

Net present value (NPV):

It is a method used to determine the current value of all future cash flows generated by a project, including the initial capital investment. It is widely used in capital budgeting to establish which projects are likely to turn the greatest profit.

\(NPV = \frac{{{R_t}}}{{{{\left( {1 + i} \right)}^t}}}\)

NPV = net present value

R_t = net cash flow at time t

i = discount rate

t = time of the cash flow

Cost-benefit analysis (CBA): It is a technique used to compare the total costs of a program/project with its benefits, using a common metric (most commonly monetary units).

Payback method:

• It is a method of evaluating a project by measuring the time it will take to recover the initial investment.
• The payback period is the number of months or years it takes to return the initial investment.
• To calculate a more exact payback period: payback period = amount to be invested/estimated annual net cash flow.
• The payback method also ignores the cash flows beyond the payback period; thus, it ignores the long-term profitability of a project.

Call of Quotations:

After receiving requisition from various departments, the purchase department issues letters to several registered suppliers for calling rate list.

Issuing registered postal letters to various reputed suppliers for their competitive rates is called calling of quotations.

The quotations are called in two ways.

• By issuing individual letters by register post letters to suppliers which is called Limited Tender.
• By newspaper advertisement which is called Tender Notice or a Public Tender or Open Tender.

 

Tender: It is an offer made by the supplier or manufacturer in reply to a quotation letter for the supply of material on the basis of some terms & condition.

Explanation:

 

Here two path – (I) ⇒ 1 – 2 – 4 – 6

(II) ⇒ 1 – 3 – 5 – 6

Calculation of expected time for both path – 

\({T_e} = \frac{{{T_0} + 4{T_m} + {T_p}}}{6}\)

For I 

\( \Rightarrow \frac{{2 + 4 \times 3 + 4}}{6} + \frac{{4 + 4 \times 6 + 8}}{6} + \frac{{5 \times 4 \times 8 + 11}}{6}\)

= 3 + 6 + 8

= 17 days

For II 

\( \Rightarrow \frac{{6 + 4 \times 7 + 8}}{6} + \frac{{12 + 4 \times 12 + 18}}{6} + \frac{{9 + 4 \times 15 + 18}}{6}\)

= 7 + 13 + 14.5

\( = 34\frac{1}{2}{\rm{\;days}}\)

Hence longest path II so it is critical standard deviation.

\(\delta d = \sqrt {\sum {{\left( {\frac{{{T_p} - {T_0}}}{6}} \right)}^2}} \)

\(\sigma = \sqrt {{{\left( {\frac{{8 - 6}}{6}} \right)}^2} + {{\left( {\frac{{18 - 12}}{6}} \right)}^2} + {{\left( {\frac{{18 - 9}}{6}} \right)}^2}} \)

\(\sigma = \sqrt {{{\left( {\frac{1}{3}} \right)}^2} + 1 + {{\left( {\frac{3}{2}} \right)}^2}} = \sqrt {\frac{1}{9} + 1 + \frac{9}{4}} = \sqrt {\frac{{121}}{{36}}} \)

\(\therefore \;\left[ {\sigma = \frac{{11}}{6}\;days} \right]\)

explanation:

EOQ = 360

(C_o) ordering cost per unit = Rs. 5 per order

(C_c) carrying cost per unit = Rs. 0.20

So, 

\(EOQ = \sqrt {\frac{{22R{C_o}}}{{{C_c}}}} \)

\(EOQ = 360 = \sqrt {\frac{{2 \times R \times 5}}{{0.20}}} \;\)

\({\left( {360} \right)^2} = \frac{{2 \times R \times 5}}{{0.20}}\)

\(R = \frac{{{{\left( {360} \right)}^2} \times 0.20}}{{2 \times 5}}\)

∴ R = 2592 Unit

[Demand = 2592 Unit]