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

Explanation:

• The first method invented for planning projects was the bar chart method which was introduced by Henry Gantt around the year 1900 A.D.
• Bar chart is therefore also referred to as Gantt Chart. A bar chart is a graphical representation of activity v/s time where the horizontal axis represents time duration and the vertical axis represents activities.

Bar chart (Gantt chart):

(i) It is a pictorial chart.

(ii) It has two coordinate axes, the horizontal line (coordinate) represents the elapsed time and the vertical coordinate represents the job or activity to be performed.

(iii) The beginning and end of each bar represent starting and finishing times of a particular activity respectively.

(iv) The length of the bar shows the time required for completion.

 Additional InformationLimitation of a bar chart:

(i) Lack of degree of detail.

(ii) A bar chart does not show the progress of work and hence it can not be used as a control device.

(iii) A bar chart is unable to depict the interdependencies of various activities clearly.

(iv) No provision to account for time uncertainties.

(v) Bar chart can not distinguish between critical and non-critical activities and hence resource smoothening and resource-leveling can not be done.

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.

Explanation:

• Delegation: Is a transfer of responsibility for performance of a task from one person to another.
• Delegation  triangle include Authority, responsibility & Contract.
• Principle of delegation:
• Assignment of duties according to expected result.
• There should be equality of authority & responsibility while assigning duties to subordinates.
• Clarification of limits of authority.
• Unit of command: Command should receive from one  supervisor at one time.

Additional Information

• Authority means the power or right to give orders, command, make decisions, and enforce obedience.  
• Authority is given to a manger to achieve the objectives of organization.
• Authority always flows downwards, it is delegated from the top to the bottom.
• Types of Authority:

1. Traditional authority
2. Rational legal authority
3. Charismatic authority

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: 

• Quality assurance is an ongoing systematic, comprehensive evaluation of health services and the impact of those services on client health to meet the standard criteria.
• Purpose: To ensure the delivery of quality client care.
• To evaluate the achievement of nursing care.
• To meet the code of ethics & professional conduct for nurses in India.

Additional Information

• ​​Component of Quality Improvement program:

1. Establish responsibility & accountability
2. Define the scope of service for the clinical area.
3. Develop quality indicators to monitor outcomes & appropriateness of care delivered.
4. Evaluation of quality indicators.
5. Collect & analyze data from monitoring activity

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.

The correct answer is Establishes the basis for all the other functions.

• Planning is often called the primary management function because it establishes the basis for all the other functions.

Key Points

• The management process consists of four primary functions that managers must perform:
  • planning
  • organizing
  • leading
  • controlling
• Planning is often called the primary management function:
  • Planning means defining performance goals for the organization and determining what actions and resources are needed to achieve the goals.
  • Through planning, management defines what the future of the organization should be and how to get there.
  • It establishes the basis for all the other functions.
  • A strategic plan bridges the gap between what an organization is and what it will become.
  • A tactical plan defines what has to be done, who will do it, and the resources needed to do it.

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%

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.

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:

• 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:

• 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.