Chapter 08 Scheduling Resources and Costs

Multiple Choice Questions

1. Delaying noncritical activities to lower peak demand on resources is known as resource

A. Shifting
B. Effectiveness
C. Manipulating
D. Resource smoothing
E. Allocation
Answer: D
If resources are adequate but the demand varies widely over the life of the project, it may be desirable to even out resource
demand by delaying noncritical activities (using slack) to lower peak demand and, thus, increase resource utilization. This process
is called resource smoothing.

2. If resources are not adequate to meet peak demands, the resulting reschedule is termed
A. Resource-constrained scheduling
B. Time-constrained scheduling
C. Mandatory leveling
D. Project resource adjustment
E. Allocation
Answer: A
If resources are not adequate to meet peak demands, the late start of some activities must be delayed, and the duration of the
project may be increased. This process is called resource- constrained scheduling.

3. Which of the following is a potential consequence of failing to schedule limited resources?

A. Costly activity delays
B. Costly project delays
C. Difficulty in taking quick corrective action
D. Both A and B are correct
E. A, B, and C are all correct
Answer: E
The consequences of failing to schedule limited resources are a costly activity and project delays usually manifest
themselves midway in the project when quick corrective action is difficult.

4. When developing a new software package, the software must be designed, the code must be written, and the code must be
tested. This is an example of a ____ constraint.
A. Physical
B. Technical
C. Resource
D. Schedule
E. Time
Answer: B
A network for a new software project could place the activities in the network, as a sequence of (1) design, (2) code, and (3)
test. In other words, you cannot logically perform activity 2 until 1 is completed, and so on. The project network depicts
technical constraints.

5. Which of the following is not one of the types of project constraints?

A. Physical
B. Technical
C. Resource
D. Time
E. All of these are types of project constraints
Answer: D
If resources are not adequate to meet peak demands, the late start of some activities must be delayed, and the duration of the
project may be increased. The absence or shortage of resources can drastically alter technical constraints. In rare situations,
physical factors cause activities that would normally occur in parallel to be constrained by contractual or environmental
conditions.
6. Sam the project engineer has been scheduled to run the product system test at the same time he is to build a marketing
prototype. This is an example of a ____ constraint.
A. Physical
B. Technical
C. Resource
D. Scheduling
E. Time
Answer: C
If one person must perform all activities, the resource constraint requires the activities be performed in sequence or series.

7. Susan is to conduct environmental testing but the chamber cannot hold all the equipment that she wants to test. This is an
example of a ____ constraint.
A. Physical
B. Technical
C. Resource
D. Scheduling
E. Time
Answer: A
Since space allows only one person to work at one time, all tasks have to be performed sequentially this is a physical constraint.

8. All of the following are kinds of resource constraints except

A. Materials
B. People
C. Equipment
D. Information
E. All of the above are resource constraints
Answer: D

9. Sam is trying to order the concrete needed to continue his project. However, the supplier won't be able to deliver it until
next week. This is an example of a ____ constraint.
A. Working capital
B. People
C. Equipment
D. Information
E. Materials
Answer: E
Material availability and shortages have been blamed for the delay of many projects. When it is known that a lack of availability
of materials is important and probable, materials should be included in the project network plan and schedule.

10. A special truck that George needs on his project has been scheduled on another project. This is a ____ constraint.
A. Working capital
B. People
C. Equipment
D. Information
E. Materials
Answer: C
Equipment is usually presented by type, size, and quantity. In some cases equipment can be interchanged to improve schedules,
but this is not typical. Equipment is often overlooked as a constraint. The most common oversight is to assume the resource pool
is more than adequate for the project.

11. Most of the scheduling methods available today require the project manager to classify the project as either constrained or
constrained.
A. Time, quality
B. Quality, resource
C. Cost, time
D. Quality, cost
E. Time, resource
 Answer: E
Most of the scheduling methods available today require the project manager to classify the project as either time constrained
or resource constrained.

12. Regina's boss has told her that her project is very important. If the critical path is delayed, she will be given whatever she
needs to get it back on schedule. Her project is ____constrained.
A. Time
B. Quality
C. Cost
D. Performance
E. Resource
Answer: A
A time-constrained project is one that must be completed by an imposed date. If required, resources can be added to ensure the
project is completed by a specific date. Although time is the critical factor, resource usage should be no more than is necessary
and sufficient.

13. In reviewing the status of her project with top management, Shirley was told that there only were two programmers
that she could use for her project. Her project is____ constrained.
A. Time
B. Quality
C. Cost
D. Performance
E. Resource
Answer: E
A resource-constrained project is one that assumes the level of resources available cannot be exceeded. If the resources are
inadequate, it will be acceptable to delay the project, but as little as possible.

14. All resource leveling techniques involve

A. Delaying noncritical activities
B. Delaying critical activities
C. Using negative slack
D. Both A and C are correct
E. A, B, and C are all correct
Answer: A
All leveling techniques delay noncritical activities by using positive slack to reduce peak demand and fill in the valleys for
the resources.

15. Scheduling time-constrained projects focuses on resource

A. Demands
B. Increases
C. Assumptions
D. Utilization
E. All are correct
Answer: D
Scheduling time-constrained projects focuses on resource utilization.

16. The most widely used approach to apply heuristics, which have been found to consistently minimize project delay over a
large variety of projects is the
A. Parallel method
B. Resource method
C. Materials
D. Both A and C are correct
E. A, B, and C are all correct
Answer: A
The parallel method is the most widely used approach to apply heuristics, which have been found to consistently minimize
project delay over a large variety of projects.
E
17. Resource leveling can provide
A. Lower peak demand
B. Reduced resource need over the life of the project
C. Reduced fluctuations in resource demand
D. Both A and B are correct
E. A, B, and C are all correct
Answer: E
Practitioners have attacked the utilization problem using resource leveling techniques that balance or smooth demand for a
resource. Basically, all leveling techniques delay noncritical activities by using positive slack to reduce peak demand and fill in
the valleys for the resources.

18. Jan is trying to reallocate resources in a time-constrained project to create smoother resource utilization with a low
level of risk. She should move to activities with the
A. Smallest duration
B. Least slack
C. Most slack
D. Lowest identification number
E. Highest cost
Answer: C
The rationale is those activities with the most slack pose the least risk.

19. In a resource-constrained project, which of the following is most likely to be changed?

A. The completion date
B. The budget
C. Project quality
D. Both A and B are equally likely
E. A, B, and C are all equally likely
Answer: A
Managers who fail to schedule resources usually encounter a scheduling risk when it is too late to work around problems,
resulting in a project delay.

20. In a resource-constrained project, the first priority in assigning resources is usually given to activities with the
A. Smallest duration
B. Least slack
C. Most slack
D. Lowest identification number
E. Highest cost
Answer: B
The first activity placed in the schedule would be the activity with the least slack (rule 1).

21. In a resource-constrained project the second priority in assigning resources is usually given to activities with the
A. Smallest duration
B. Least slack
C. Most slack
D. Lowest identification number
E. Highest cost
Answer: A
If all activities have the same slack, the next rule would be invoked (rule 2), and the activity with the smallest duration would
be placed in the schedule first.

22. The word Heuristics means

A. Resource constraints
B. Flexibility
C. The critical path changed
D. Parallel activities become sequential
E. Rule of thumb
Answer: E

23. Splitting an activity creates the following situation:

A. More people working on the same activity
B. There are possible startup and shutdown costs
C. A resource may be moved from one activity to another and then back
D. Both B and C are correct
E. A, B, and C are all correct
Answer: D
A planner splits the continuous work included in an activity by interrupting the work and sending the resource to another
activity for a period of time and then having the resource resume work on the original activity. Splitting can be a useful tool if
the work involved does not include large start-up or shutdown costs—for example, moving equipment from one activity
location to another. The most common error is to interrupt "people work," where there are high conceptual start-up and
shutdown costs.

24. The U.S. Forest Service "snapshot from practice" illustrated the importance of
A. Time constraints
B. Resource constraints
C. Cost constraints
D. Both B and C are correct
E. A, B, and C are all correct
Answer: D
It is important to remember that, if resources are truly limited and activity time estimates are accurate, the resource-constrained
schedule will materialize as the project is implemented— not the time-constrained schedule! Therefore, failure to schedule
limited resources can lead to serious problems for a project manager. The benefit of creating this schedule before the project
begins leaves time for considering reasonable alternatives.

25. More common problems associated with managing multi-project resources include all of the following except
A. Inefficient resource utilization
B. Delays in one project cause delays in other projects
C. Reducing "downtime" created by lack of tasks to perform
D. Resource bottlenecks
E. All of these are common problems
Answer: C

26. When a company will reduce the number of projects they have to manage internally to only core projects and send
noncritical projects to contractors and consulting firms this is called
A. Outsourcing
B. Redistribution of projects
C. Project allocation
D. Task sharing
E. Both B and D are correct
Answer: A
Many companies are using outsourcing as a means for dealing with their resource allocation problems. In some cases, a company
will reduce the number of projects they have to manage internally to only core projects and outsource noncritical projects to
contractors and consulting firms. In other cases, specific segments of projects are outsourced to overcome resource deficiencies
and scheduling problems.

27. Which of the following is not one of the more common problems associated with scheduling multiproject
resources?
A. Overall schedule slippage
B. Inefficient resource utilization
C. Resource bottlenecks
D. Both A and C are correct
E. A, B, and C are all correct
Answer: E

28. In a resource-constrained project the third priority in assigning resources is usually given to activities with the
A. Smallest duration
B. Least slack
C. Most slack
D. Lowest identification number
E. Highest cost
Answer: D
In very rare cases, when all eligible activities have the same slack and the same duration, the tie is broken by the lowest activity
identification number (rule 3), since each activity has a unique ID number.

29. In the Botanical Garden example, which of the following was used to solve the resource problem?
A. Resource allocation
B. Smoothing resource demand
C. The parallel method
D. Both A and C are correct
E. A, B, and C are all correct
Answer: B
The Botanical Garden project schedule reached the three goals of smoothing: The peak of demand for the resource was reduced,
resources over the life of the project have been reduced, the fluctuations in resource demand were minimized.

30. Project budgets are developed by time-phasing which of the following?

A. Resource schedules
B. Work packages
C. The network diagram
D. Both A and C are correct
E. A, B, and C are all correct
Answer: B
Using your project schedule, you can time-phase work packages and assign them to their respective scheduled activities to
develop a budget schedule over the life of your project.

31. A project budget report is showing our project as spending $35,000 against a budgeted amount of $40,000. Which of the
following is true?
A. We are spending less than we should for the project
B. We are doing a good job managing the project
C. We should check to see if all the bills have been paid
D. Both A and B are correct
E. We can't be sure how the project is going
Answer: E
There is no way to be certain how much of the physical work has been accomplished.

Fill in the Blank Questions

32. Delaying noncritical activities to lower peak demand and, thus, increase resource utilization is called ____leveling.
resource
Practitioners have attacked the utilization problem using resource leveling techniques that balance or smooth demand for a
resource. Basically, all leveling techniques delay noncritical activities by using positive slack to reduce peak demand and fill in
the valleys for the resources.

33. A(n) ____ constraint addresses the sequence in which project activities must occur.
technical or logic
The start and sequence of activities has been based solely on technical or logical considerations. For example, a project
network for framing a house might show three activities in a sequence: (1) pour foundation, (2) build frame, and (3)
cover roof.

34. Having one person responsible for performing several activities, all due at the same time, is an example of a(n) ____
constraint.
resource
If one person must perform all activities, the resource constraint requires the activities be performed in sequence or series.

35. Trying to renovate a ship compartment that is too small for more than one person is an example of a(n) ____ constraint.
physical
In rare situations, physical factors cause activities that would normally occur in parallel to be constrained by contractual or
 environmental conditions. For example, in theory the renovation of a sailboat compartment might involve four to five tasks that
can be done independently.
However, since space allows only one person to work at one time, all tasks have to be performed sequentially.

36. A shortage of programmers to write software is an example of a(n) ____type of resource constraint.
people
This is the most obvious and important project resource. Human resources are usually classified by the skills they bring to the
project—for example, programmer, mechanical engineer, welder, inspector, marketing director, supervisor. In rare cases some
skills are interchangeable, but usually with a loss of productivity. The many differing skills of human resources add to the
complexity of scheduling projects.

37. The shortage of computer chips to produce a circuit board is an example of a(n) ___type of resource constraint.
materials
Material availability and shortages have been blamed for the delay of many projects. When it is known that a lack of availability
of materials is important and probable, materials should be included in the project network plan and schedule.

38. If three copiers are needed to produce a final report on time and only two are available, the project is facing a(n)
____type of resource constraint.
equipment
The most common oversight is to assume the resource pool is more than adequate for the project.

39. Hector wants to bring on another programmer to work on the project but the company does not have anyone who has
the needed skills. Hector's project is facing a(n) ____constraint.
people type of resource
This is the most obvious and important project resource. Human resources are usually classified by the skills they bring to the
project—for example, programmer, mechanical engineer, welder, inspector, marketing director, supervisor. In rare cases some
skills are interchangeable, but usually with a loss of productivity. The many differing skills of human resources add to the
complexity of scheduling projects.

40. In order that the new product is on the shelf for the Christmas buying season, the development of the new product
would be classified as a(n) ____ constrained project.
time
A time-constrained project is one that must be completed by an imposed date. If required, resources can be added to ensure the
project is completed by a specific date. Although time is the critical factor, resource usage should be no more than is necessary
and sufficient.

41. Beth has two engineers assigned to her project and cannot get any more even if it means slipping the due date on her
project. She is managing a(n) ____ constrained project.
42. resource
A resource-constrained project is one that assumes the level of resources available cannot be exceeded. If the resources are
inadequate, it will be acceptable to delay the project, but as little as possible.

43. All leveling techniques delay noncritical activities by using ____to reduce peak demand.
positive slack
All leveling techniques delay noncritical activities by using positive slack to reduce peak demand and fill in the valleys for
the resources.

44. Scheduling activities in a constrained project typically has ____as the top heuristic rule.
minimum slack

45. The ____is the most widely used approach to apply heuristic rules to scheduling activities in a constrained project.
parallel method
The parallel method is the most widely used approach to apply heuristics, which have been found to consistently minimize
project delay over a large variety of projects.

46. When using the ____scheduling technique, the work in an activity is interrupted to work on another activity and is then
resumed at a later point in time.
splitting or multitasking
A planner splits the continuous work included in an activity by interrupting the work and sending the resource to another
activity for a period of time and then having the resource resume work on the original activity.

47. In scheduling resource-constrained projects, ____are typically used rather than optimum mathematical solutions.
heuristics
A few researchers have demonstrated optimum mathematical solutions to the resource allocation problem but only for small
networks and very few resource types. The massive data requirements for larger problems make pure mathematical solutions
(e.g., linear programming) impractical. An alternative approach to the problem has been the use of heuristics (rules of thumb) to
solve large combinatorial problems.

48. In scheduling terms, ____constrained means that project duration is fixed and resources are flexible.
time
In scheduling terms, time constrained means time (project duration) is fixed and resources are flexible.

49. In scheduling terms, ____constrained means that a specific resource is fixed and the duration of the project is flexible.
resource
In scheduling terms, constrained means resources are fixed and time is flexible.

50. Start-up and shutdown costs are major considerations when using the ____scheduling technique.
splitting/multitasking
The most common error is to interrupt "people work," where there are high conceptual start- up and shutdown costs.

51. To deal with problems related to having several concurrent projects, companies are creating ____to oversee the
scheduling of resources across multiple projects.
project offices or project departments
More and more companies create project offices or departments to oversee the scheduling of resources across multiple
projects.

52. Many companies are using ____from contractors and consultants as a means of dealing with the peaks and valleys of
resource allocation among projects.
outsourcing
Many companies are using outsourcing as a means for dealing with their resource allocation problems. In some cases, a company
will reduce the number of projects they have to manage internally to only core projects and outsource noncritical projects to
contractors and consulting firms. In other cases, specific segments of projects are outsourced to overcome resource deficiencies
and scheduling problems.

53. The ____is the most widely used approach to apply heuristics in resource- constrained projects.
parallel method
The parallel method is the most widely used approach to apply heuristics, which have been found to consistently minimize
project delay over a large variety of projects.

54. The ability to more efficiently manage the ebbs and flows of project work is one of the major driving forces behind ____
today.
outsourcing
The ability to more efficiently manage the ebbs and flows of project work is one of the major driving forces behind outsourcing
today.

55. Without a time-phased ____good project schedule and cost control are impossible.
budget
These systems do not measure how much work was accomplished for the money spent! Hence, without time-phasing cost
to match your project schedule, it is impossible to have reliable information for control purposes.

56. A project cost baseline is also called ____.

planned value (PV)
The outcome of these budget allocations is the project cost baseline (also called planned value—PV), which is used to determine
cost and schedule variances as the project is implemented.
True / False Questions

57. The sequence of (1) pour foundation, (2) build frame, and (3) cover roof is a type of physical constraint.
FALSE
The start and sequence of activities has been based solely on technical or logical considerations. For example, a project
network for framing a house might show three activities in a sequence: (1) pour foundation, (2) build frame, and (3)
cover roof.

58. Too many parallel activities for one individual are an example of a resource constraint.
TRUE
If one person must perform all activities, the resource constraint requires the activities be performed in sequence or series.

59. A project that is not resource-constrained is time-constrained.

TRUE
In scheduling terms, time constrained means time (project duration) is fixed and resources are flexible, where constrained means
resources are fixed and time is flexible.

60. Resource leveling is only used on projects which are resource-constrained.

FALSE
Practitioners have attacked the utilization problem using resource leveling techniques that balance or smooth demand for a
resource. Basically, all leveling techniques delay noncritical activities by using positive slack to reduce peak demand and fill in
the valleys for the resources.

61. Resource Bottlenecks are one of the three more common problems encountered in managing multiproject
resource schedules.
TRUE

62. The inability to get more than two earth movers on a construction site at the same time is an example of a physical
constraint.
TRUE
In rare situations, physical factors cause activities that would normally occur in parallel to be constrained by contractual or
environmental conditions.

63. The most obvious and important kind of resource constraint is a lack of materials.
FALSE
People are the most obvious and important project resource.

64. Having too few programmers and too many engineers is an example of a people resource constraint.
TRUE
Finding people with certain differing skills adds to the complexity of scheduling projects.

65. If a project needs one earth-mover six months from now and the organization has four such machines, there is no
equipment resource constraint.
FALSE
The most common oversight is to assume the resource pool is more than adequate for the project. For example, if a project needs
one earth-moving tractor six months from now and the organization owns four, it is common to assume the resource will not
delay the pending project. However, when the earthmoving tractor is due on-site in six months, all four machines in the pool
might be occupied on other projects.

66. A lack of readily available engineers is a technical constraint.

FALSE
When the number of people and/or equipment is not adequate to meet peak demand requirements and it is impossible
to obtain more, the project manager faces a resource- constrained problem.

67. All projects are usually either time-constrained or resource-constrained.

TRUE
Most of the scheduling methods available today require the project manager to classify the project as either time constrained
or resource constrained.

68. To determine if a project is time-constrained or resource-constrained you would consult the project priority matrix.
TRUE
Project managers need to consult their priority matrix to determine which case fits their project.

69. Scheduling time-constrained projects focuses on the optimal utilization of resources.

TRUE
A time-constrained project is one that must be completed by an imposed date. If required, resources can be added to ensure the
project is completed by a specific date. Although time is the critical factor, resource usage should be no more than is necessary
and sufficient.

70. All leveling techniques delay noncritical activities by using positive slack to smooth out the resource requirements.
TRUE
All leveling techniques delay noncritical activities by using positive slack to reduce peak demand and fill in the valleys for
the resources.

71. Scheduling time-constrained projects focuses on resource utilization.

FALSE
Scheduling time-constrained projects focuses on resource utilization.

72. Scheduling resource-constrained projects focuses on completing the project as soon as possible under the given
constraints.
TRUE
When the number of people and/or equipment is not adequate to meet peak demand requirements and it is impossible to obtain
more, the project manager faces a resource- constrained problem. Something has to give. The trick is to prioritize and allocate
resources to minimize project delay without exceeding the resource limit or altering the technical network relationships.

73. Heuristics are used in resource-constrained projects to develop the optimal schedule.
FALSE
Heuristics do not always yield an optimal schedule, but they are very capable of yielding a "good" schedule for very complex
networks with many types of resources.

74. The top priority in using heuristics to allocate scare resources is those activities with the smallest duration.
FALSE
Heuristics allocate resources to activities to minimize project delay; that is, heuristics prioritize which activities are
allocated resources and which activities are delayed when resources are not adequate.

75. The critical path in a resource-constrained schedule can be a group of disjointed, unconnected activities.
TRUE
The traditional critical path concept of sequential activities from the start to the end of the project is no longer meaningful.
The resource constraints can break the sequence and leave the network with a set of disjointed critical activities.

76. Splitting is a scheduling technique used to get a better schedule or better resource utilization.
TRUE
Splitting tasks is a scheduling technique used to get a better project schedule and/or to increase resource utilization.

77. Without a time-phased budget good project schedule and cost control are impossible.
TRUE

78. Many companies are using outsourcing as a means for dealing with their resource allocation problems associated
with managing multiproject resources.
TRUE
Companies may hire temporary workers to expedite certain activities that are falling behind schedule or contract project work
during peak periods when there are insufficient internal resources to meet the demands of all projects.