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This Document Contains Chapters 15 to 17 BPI015 Project Management Multiple Choice Questions 1. What is the application of knowledge, skills, tools, and techniques to project activities to meet project requirements? A. Project management B. Project management software C. Scope D. None of the above Answer: A. Project management Rationale: This is the definition of project management. 2. Which of the following is a characteristic of a successful project? A. Delivered on time B. Delivered within budget C. Meets the business's requirements D. All of the above Answer: D. All of the above Rationale: All of the above are characteristics of successful projects. 3. What is a project? A. A temporary endeavor undertaken to create a unique product, service, or result B. The application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project C. Any measurable, tangible, verifiable outcome, result, or item that is produced to complete a project or part of a project D. Represent key dates when a certain group of activities must be performed Answer: A. A temporary endeavor undertaken to create a unique product, service, or result Rationale: This is the definition of project. 4. What are project deliverables? A. A temporary endeavor undertaken to create a unique product or service B. The application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project C. Any measurable, tangible, verifiable outcome, result, or item that is produced to complete a project or part of a project D. Represent key dates when a certain group of activities must be performed Answer: C. Any measurable, tangible, verifiable outcome, result, or item that is produced to complete a project or part of a project Rationale: This is the definition of project deliverables. 5. What is a project manager? A. The application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project B. Any measurable, tangible, verifiable outcome, result, or item that is produced to complete a project or part of a project C. Represent key dates when a certain group of activities must be performed D. An individual who is an expert in project planning and management Answer: D. An individual who is an expert in project planning and management Rationale: A project manager is an individual who is an expert in project planning and management. 6. Which of the following does a project manager perform? A. Defines and develops the project plan B. Tracks the plan to ensure all key project milestones are completed on time C. Expert in project planning and management D. All of the above Answer: D. All of the above Rationale: This is the definition of project manager. 7. What is an internal department that oversees all organizational projects? A. Project deliverables B. Project Scope C. Project management office D. Project milestones Answer: C. Project management office Rationale: This is the definition of PMO. 8. The PMI develops procedures and concepts necessary to support the profession of project management. Which of the following is not one of the three areas it focuses on? A. The distinguishing characteristics of a practicing professional (ethics) B. The content and structure of the profession's body of knowledge (standards) C. Change in business goals during project planning (management) D. Recognition of professional attainment (accreditation) Answer: C. Change in business goals during project planning (management) Rationale: Change in business goals during project planning is not one of the three areas PMI focuses on. 9. Who are individuals and organizations actively involved in the project or whose interests might be affected as a result of project execution or project completion? A. Project manager B. Project stakeholders C. Executive sponsor D. All of the above Answer: B. Project stakeholders Rationale: This is the definition of project stakeholder. 10. Who is the person or group who provides the financial resources for the project? A. Project manager B. Project stakeholders C. Executive sponsor D. All of the above Answer: C. Executive sponsor Rationale: This is the definition of executive sponsor. 11. What are project constraints? A. Specific factors that can limit options B. Factors that are considered to be true, real, or certain without proof or demonstration C. Quantifiable criteria that must be met for the project to be considered a success D. A document issued by the project initiator or sponsor that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities Answer: A. Specific factors that can limit options Rationale: This is the definition of project constraints. 12. What are project assumptions? A. Specific factors that can limit options B. Factors that are considered to be true, real, or certain without proof or demonstration C. Quantifiable criteria that must be met for the project to be considered a success D. A document issued by the project initiator or sponsor that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities Answer: B. Factors that are considered to be true, real, or certain without proof or demonstration Rationale: This is the definition of project assumptions. 13. What is a project charter? A. Specific factors that can limit options B. Factors that are considered to be true, real, or certain without proof or demonstration C. Quantifiable criteria that must be met for the project to be considered a success D. A document issued by the project initiator or sponsor that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities Answer: D. A document issued by the project initiator or sponsor that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities Rationale: This is the definition of project charter. 14. An organization must identify what it wants to do and how it is going to do it. What does the "what" part of this question focus on? A. Justification of the project B. Definition of the project C. Expected results of the project D. All of the above Answer: D. All of the above Rationale: All of the above are part of the "what" question. 15. An organization must identify what it wants to do and how it is going to do it. What does the "how" part of this question focus on? A. Justification of the project B. Definition of the project C. Analysis of project risks D. Expected results of the project Answer: C. Analysis of project risks Rationale: The "how" part focuses on analysis of project risks. 16. Which of the following is not a technique for choosing strategic projects? A. Categorize projects B. Perform a financial analysis C. Focus on organizational goals D. Develop a project plan Answer: D. Develop a project plan Rationale: Develop a project plan is not part of choosing strategic projects. 17. What is project scope? A. Quantifiable criteria that must be met for the project to be considered a success B. Products, services, or processes that are not specifically a part of the project C. Any measurable, tangible, verifiable outcome, result or item that is produced to complete a project or part of a project D. Defines the work that must be completed to deliver a product with the specified features and functions Answer: D. Defines the work that must be completed to deliver a product with the specified features and functions Rationale: This is the definition of project scope. 18. What are project objectives? A. Quantifiable criteria that must be met for the project to be considered a success B. Products, services, or processes that are not specifically a part of the project C. Any measurable, tangible, verifiable outcome, result or item that is produced to complete a project or part of a project D. Defines the work that must be completed to deliver a product with the specified features and functions Answer: A. Quantifiable criteria that must be met for the project to be considered a success Rationale: This is the definition of project objectives. 19. What do SMART criteria for successful objective creation include? A. Specific, metrics, agreed upon, real, time valued B. Specific, measurable, agreed upon, realistic, time framed C. Specific, measurable, accurate, real, time valued D. Specific, metrics, agreed upon, realistic, time framed Answer: B. Specific, measurable, agreed upon, realistic, time framed Rationale: SMART includes specific, measurable, agreed upon, realistic, and time framed. 20. Which of the following is not a characteristic of a well-defined project plan? A. Prepared by the project manager B. Easy to read C. Appropriate to the project's size D. Communicated to all key participants Answer: A. Prepared by the project manager Rationale: The project plan should be prepared by the entire team, not just the project manager. 21. What is the most important part of the project plan? A. Gantt chart B. Specification C. Communication D. None of the above Answer: C. Communication Rationale: Communicating the project plan is the most important part of the plan. 22. What is a graphical network model that depicts a project's tasks and the relationships between those tasks? A. Gantt chart B. PERT chart C. Dependency D. All of the above Answer: B. PERT chart Rationale: This is the definition of PERT chart. 23. What is the logical relationship that exists between the project tasks, or between a project task and a milestone? A. Resource B. Task C. Dependency D. Activity Answer: C. Dependency Rationale: This is the definition of dependency. 24. What is a simple bar chart that depicts project tasks against a calendar? A. Gantt chart B. PERT chart C. Dependency D. All of the above Answer: A. Gantt chart Rationale: This is the definition of Gantt chart. 25. What type of chart typically displays the critical path? A. Gantt chart B. PERT chart C. All of the above D. None of the above Answer: B. PERT chart Rationale: The PERT chart typically displays the critical path. 26. What is the critical path? A. The path from resource to task that passes through all critical components of a project plan B. The path between tasks to the projects finish that passes through all critical components of a project plan C. The path from start to finish that passes through all the tasks that are critical to completing the project in the shortest amount of time D. The path from start to finish that passes through all the tasks that are critical to completing the project in the longest amount of time Answer: C. The path from start to finish that passes through all the tasks that are critical to completing the project in the shortest amount of time Rationale: This is the definition of critical path. 27. In a Gantt chart tasks are listed __________ and the project's timeframe is listed ____________. A. Vertically, horizontally B. Horizontally, vertically C. Vertically, Vertically D. Horizontally, horizontally Answer: A. Vertically, horizontally Rationale: In a Gantt chart tasks are listed horizontally and the project's timeframe is listed vertically. 28. Which of the following includes a common reason why change occurs? A. A misunderstanding of the initial scope B. Shifts in planned technology that force unexpected and significant changes to the business C. An omission in defining initial scope D. All of the above Answer: D. All of the above Rationale: All of the above are common reasons why change occurs. 29. Which of the following is not a guideline for effectively dealing with change management? A. Institute change management policies B. Seek change C. Anticipate change D. Stop change Answer: D. Stop change Rationale: Stop change is not an important guideline for effective change management. True/False Questions 30. Project milestones are any measurable, tangible, verifiable outcome, result, or item that is produced to complete a project or part of a project. Answer: False Rationale: Project deliverables are any measurable, tangible, verifiable outcome, result, or item that is produced to complete a project or part of a project. 31. Project deliverables represent key dates when a certain group of activities must be performed. Answer: False Rationale: Project milestones represent key dates when a certain group of activities must be performed. 32. A kill switch is a trigger that enables a project manager to close the project prior to completion. Answer: True Rationale: A kill switch is a trigger that enables a project manager to close the project prior to completion. 33. A dependency is a logical relationship that exists between the project tasks, or between a project task and a milestone. Answer: True Rationale: A dependency is a logical relationship that exists between the project tasks, or between a project task and a milestone. 34. A change control board (CCB) that is responsible for approving or rejecting all change requests. Answer: True Rationale: A change control board (CCB) that is responsible for approving or rejecting all change requests. Fill in the Blank Questions 35. _________ management is the application of knowledge, skills, tools, and techniques to project activities to meet project requirements. Answer: Project 36. Time, cost, and ___________ are the three primary variables in any project. Answer: Scope 37. A(n) ____________ is a temporary endeavor undertaken to create a unique product, service, or result. Answer: Project 38. Project ______________ are any measurable, tangible, verifiable outcome, result, or item that is produced to complete a project or part of a project. Answer: Deliverables 39. Project ____________ represent key dates when a certain group of activities must be performed. Answer: Milestones 40. Project _________ defines the work that must be completed to deliver a product with the specified features and functions. Answer: Scope 41. Project __________ are quantifiable criteria that must be met for the project to be considered a success. Answer: Objectives 42. The R in the SMART criteria for successful objective creation stands for _________. Answer: Realistic 43. A project ____________ is a formal, approved document that manages and controls project execution. Answer: Plan 44. A(n) ____________ chart is a graphical network model that depicts a project's tasks and the relationships between those tasks. Answer: PERT 45. A(n) __________ chart is a simple bar chart that depicts project tasks against a calendar. Answer: Gantt 46. A(n) _________ is a logical relationship that exists between the project tasks, or between a project task and a milestone. Answer: Dependency 47. A change control board is responsible for approving or ____________ all change requests. Answer: Rejecting Essay Questions 48. Explain change management and how an organization can prepare for change. Answer: Change management is a set of techniques that aid in evolution, composition, and policy management of the design and implementation of a system. An organization can prepare for change by implementing change management systems and a change control board. Change management systems are a collection of procedures to document a change request and define the steps necessary to consider the change based on the expected impact of the change. A change control board (CCB) is responsible for approving or rejecting all change requests. 49. Describe the project stakeholder's and executive sponsor's roles in choosing strategic projects. Answer: Project stakeholders are individuals and organizations actively involved in the project or whose interests might be affected as a result of project execution or project completion. Stakeholders are not necessarily involved in the completion of project deliverables. For example, a chief financial officer (CFO) probably will not help test a new billing system, but she surely will be expecting the successful completion of the project. While all stakeholders are important, one stands out as having the most impact on the success or failure of a project. That person is the executive sponsor. PMI defines the executive sponsor as the person or group who provides the financial resources for the project. However, research has shown that the leadership strength of the executive sponsor has more do to with the success or failure of a project than any other critical success factor. 50. Highlight the components of a project charter. Answer: Project scope defines the work that must be completed to deliver a product with the specified features and functions. A project scope statement describes the business need, justification, requirements, and current boundaries for the project. The business need can be characterized by the problem the results of the project will satisfy. This is important in linking the project with the organization's overall business goals. The project scope statement includes constraints, assumptions, and requirements—all components necessary for developing accurate cost estimates. Project objectives are quantifiable criteria that must be met for the project to be considered a success. Project constraints are specific factors that can limit cost estimating options. They include: budget, delivery dates, available skilled resources, and organizational policies. Project assumptions are factors that are considered to be true, real, or certain without proof or demonstration. Examples include hours in a work week or time of year the work will be performed. 51. Describe the two primary diagrams most frequently used in project planning. Answer: A PERT (Program Evaluation and Review Technique) chart is a graphical network model that depicts a project's tasks and the relationships between those tasks. A dependency is a logical relationship that exists between the project tasks, or between a project task and a milestone. A Gantt chart is a simple bar chart that depicts project tasks against a calendar. In a Gantt chart, tasks are listed vertically and the project's time frame is listed horizontally. A Gantt chart works well for representing the project schedule. It also shows actual progress of tasks against the planned duration. 52. Identify the three primary areas a project manager must focus on managing to ensure success. Answer: There are three primary areas a project manager must focus on managing to ensure success: Manage People: Managing people is one of the hardest and most critical efforts a project manager undertakes. How to resolve conflicts within the team and how to balance the needs of the project with the personal/professional needs of the team are a few of the challenges facing project managers. More and more project managers are the main (and sometimes sole) interface with the client during the project. As such, communication, negotiation, marketing, and salesmanship are just as important to the project manager as financial and analytical acumen. There are many times when the people management side of project management made the difference in pulling off a successful project. Manage Communications: While many companies develop unique project management frame-works based on familiar project management standards, all of them agree that communication is the key to excellent project management. This is quite easy to state, but not so easy to accomplish! It is extremely helpful if a project manager plans what and how he/she will communicate as a formal part of the project management plan. Most often a document, it is referred to as a communications plan. A project manager distributes timely, accurate, and meaningful information regarding project objectives that involve time, cost, scope and quality and the status of each. The project manager also shares small wins as the project progresses; informs others of needed corrections; makes requests known for additional resources; and, keeps all stakeholders informed of the project schedule. Manage Change: Dynamic organizational change is inevitable and an organization must effectively manage change as it evolves. With the numerous challenges and complexities that organizations face in today's rapidly changing environment, effective change management thus becomes a critical core competency. Change management is a set of techniques that aid in evolution, composition, and policy management of the design and implementation of a system. BPI016 Operations Management Multiple Choice Questions 1. What is the creation of goods and services using the factors of production including land, labor, capital, entrepreneurship, and knowledge? A. Operations Management B. Productions Management C. Transformation process D. Production Answer: D. Production Rationale: This is the definition of production. 2. Which of the following is not a factor of production when creating goods and services? A. Entrepreneurship B. Capital C. Knowledge D. Manufacturing Answer: D. Manufacturing Rationale: Production is the creation of goods and services using the factors of production including land, labor, capital, entrepreneurship, and knowledge, not manufacturing. 3. Which of the following is an example of a goods or a service? A. Dental/Medical Records B. DVDs C. Downloadable MP3s D. All of the above Answer: D. All of the above Rationale: All of the above are examples of goods and services. 4. What describes all of the activities managers do to help companies create goods? A. Operations Management B. Productions Management C. Transformation process D. Production Answer: B. Productions Management Rationale: This is the definition of productions management. 5. What is the management of systems or processes that convert or transform resources into goods and services? A. Operations Management B. Productions Management C. Transformation process D. Production Answer: A. Operations Management Rationale: This is the definition of operations management. 6. What is often referred to as the technical core and is the actual conversion of inputs to outputs? A. Operations Management B. Productions Management C. Transformation process D. Production Answer: C. Transformation process Rationale: This is the definition of transformation process. 7. Which of the following interacts with each phase in the conversion of inputs to outputs? A. Services B. Goods C. Control D. Information Answer: C. Control Rationale: Control interacts with each phase in the conversion of inputs to outputs according to Figure B16.1. 8. Which of the following statements is true? A. Companies produce goods only without services B. Companies produce services only without goods C. Companies typically sell product packages, with a combination of goods and services D. None of the above Answer: C. Companies typically sell product packages, with a combination of goods and services Rationale: Companies produce a range from primarily goods with little service to primarily services with little goods as there are relatively few pure goods or pure services. 9. Which of the following refers to value-added? A. Describes the difference between the cost of outputs and the value of price of inputs B. Describe the similarities between the cost of inputs and the value of price of outputs C. Describes the difference between the cost of inputs and the value of price of outputs D. Any of the above depending on the situation Answer: C. Describes the difference between the cost of inputs and the value of price of outputs Rationale: Value-added is the term used to describe the difference between the cost of inputs and the value of price of outputs. 10. When does OM primarily increase value-added? A. During the input process B. During the transformation process C. During the output process D. None of the above Answer: B. During the transformation process Rationale: OM primarily increases value-added during the transformation process. 11. Which of the following activities is within the scope of OM? A. Forecasting B. Motivating employees C. Scheduling D. All of the above Answer: D. All of the above Rationale: All of the above are in the scope of OM. 12. Which of the following activities is not within the scope of OM? A. Locating facilities B. Training employees C. Transportation planning D. Capacity planning Answer: C. Transportation planning Rationale: Transportation planning is not one of the interrelated activities in the scope of OM. 13. Which of the following describes the outcome of OM decisions? A. Many possible alternatives B. Have varying impacts on revenue C. Have varying impacts on expenses D. All of the above Answer: D. All of the above Rationale: Most OM decisions involve many possible alternatives that can have varying impacts on revenues and expenses. 14. OM information systems can answer all of the following questions, except: A. What resources will be needed B. Where the funding will come to support the effort C. When each resource will be needed D. Who will perform the work Answer: B. Where the funding will come to support the effort Rationale: OM information systems do not determine where the funding will come to support the effort. 15. Which company uses package flow information systems at each location to cut truck delivery travel by more than 100 million miles each year? A. UPS B. Trek Bike Manufacturer C. Frontier Airlines D. None of the above Answer: A. UPS Rationale: UPS uses package flow information systems at each location to cut truck delivery travel by more than 100 million miles each year. 16. Which of the following is not a type of operational planning? A. Strategic planning B. Transformation planning C. Tactical planning D. Operational planning and control Answer: B. Transformation planning Rationale: Transformation planning is not a type of operational planning. 17. Which type of operational planning uses materials requirement planning systems? A. Strategic planning B. Tactical planning C. Operational planning and control D. All of the above depending on the industry Answer: A. Strategic planning Rationale: Strategic planning uses materials requirement planning systems. 18. Which type of operational planning uses global inventory management systems? A. Strategic planning B. Tactical planning C. Operational planning and control D. All of the above depending on the industry Answer: B. Tactical planning Rationale: Tactical planning uses global inventory management systems. 19. Which type of operational planning uses inventory management and control systems? A. Strategic planning B. Tactical planning C. Operational planning and control D. All of the above depending on the industry Answer: C. Operational planning and control Rationale: Operational planning and control uses inventory management and control systems. 20. Which type of operational planning uses distribution management systems? A. Strategic planning B. Tactical planning C. Operational planning and control D. All of the above depending on the industry Answer: C. Operational planning and control Rationale: Operational planning and control uses distribution management systems. 21. What consists of several stand-alone businesses? A. Strategic planning units B. Strategic business units C. Tactical business units D. Operational business units Answer: B. Strategic business units Rationale: Strategic business units (SBU) consist of several stand-along businesses. This is the definition of SBU. 22. What focuses on long range planning such as plant size, location, and type of process to be used? A. Strategic planning B. Tactical planning C. Operational planning and control D. None of the above Answer: A. Strategic planning Rationale: This is the definition of strategic planning. 23. What focuses on producing goods and services as efficiently as possible within the strategic plan? A. Strategic planning B. Tactical planning C. Operational planning and control D. None of the above Answer: B. Tactical planning Rationale: This is the definition of tactical planning. 24. What deals with the day-to-day procedures for performing work, including scheduling, inventory, and process management? A. Strategic planning B. Tactical planning C. Operational planning and control D. None of the above Answer: C. Operational planning and control Rationale: This is the definition of operational planning and control. 25. What tracks and analyzes the movement of materials and products to ensure the delivery of materials and finished goods at the right time, the right place, and the lowest cost? A. Transportation planning system B. Distribution management system C. Inventory management and control system D. Materials requirement planning system Answer: A. Transportation planning system Rationale: This is the definition of transportation planning systems. 26. What uses sales forecasts to make sure that needed parts and materials are available at the right time and place in a specific company? A. Transportation planning system B. Distribution management system C. Inventory management and control system D. Materials requirement planning system Answer: D. Materials requirement planning system Rationale: This is the definition of materials requirement planning system. 27. Which of the following is one of the five key competitive priorities? A. Cost B. Capacity C. Inventory D. All of the above Answer: A. Cost Rationale: Cost is one of the five key competitive priorities. 28. Which of the following represents the five key competitive priorities? A. Cost, capacity, delivery, flexibility, inventory B. Cost, quality, delivery, flexibility, service C. Cost, quality, transportation, inventory, capacity D. Cost, delivery, flexibility, inventory, capacity Answer: B. Cost, quality, delivery, flexibility, service Rationale: Cost, quality, delivery, flexibility, and service are the five key competitive priorities. 29. Which of the following is not one of the modern quality control standards? A. Six sigma quality B. Malcolm Baldrige National Quality Awards C. ISO 100 D. ISO 14000 Answer: C. ISO 100 Rationale: ISO 900 is the modern quality control standard, not ISO 90. 30. Which modern quality control standard has the goal of detecting potential problems to prevent their occurrence and achieve no more than 3.4 defects per million opportunities? A. Six sigma quality B. Malcolm Baldrige National Quality Awards C. CMMI D. ISO 14000 Answer: A. Six sigma quality Rationale: Six sigma quality has the goal of detecting potential problems to prevent their occurrence and achieve no more than 3.4 defects per million opportunities. 31. Which modern quality control standard is a framework of best practices in managing, measuring, and monitoring software development processes? A. Six sigma quality B. Malcolm Baldrige National Quality Awards C. CMMI D. ISO 14000 Answer: C. CMMI Rationale: CMMI is a framework of best practices in managing, measuring, and monitoring software development processes. True/False Questions 32. A transformation process is often referred to as the technical core, especially in manufacturing organization, and is the actual conversion of inputs to outputs. Answer: True Rationale: A transformation process is often referred to as the technical core, especially in manufacturing organization, and is the actual conversion of inputs to outputs. 33. Production is the creation of goods and services using the factors of production: land, labor, capital, entrepreneurship, and knowledge. Answer: True Rationale: Production is the creation of goods and services using the factors of production: land, labor, capital, entrepreneurship, and knowledge. 34. Value-added is the term used to describe the difference between the cost of inputs and the value of price of outputs. Answer: True Rationale: Value-added is the term used to describe the difference between the cost of inputs and the value of price of outputs. 35. The scope of OM ranges across the organization and includes many interrelated activities, such as forecasting, capacity planning, scheduling, managing inventories, assuring quality, motivating employees, deciding where to locate facilities, and more. Answer: True Rationale: The scope of OM ranges across the organization and includes many interrelated activities, such as forecasting, capacity planning, scheduling, managing inventories, assuring quality, motivating employees, deciding where to locate facilities, and more. 36. Tactical planning focuses on long range planning such as plant size, location, and type of process to be used. Answer: False Rationale: Strategic planning focuses on long range planning such as plant size, location, and type of process to be used. 37. Distribution management systems coordinate the process of transporting materials from a manufacturer to distribution centers to the final customers. Answer: True Rationale: Distribution management systems coordinate the process of transporting materials from a manufacturer to distribution centers to the final customers. 38. Six sigma qualities goal is to detect potential problems to prevent their occurrence and achieve no more than 3.4 defects per million opportunities. Answer: True Rationale: Six sigma qualities goal is to detect potential problems to prevent their occurrence and achieve no more than 3.4 defects per million opportunities. 39. CMMI stands for the Capability Matrix Modeling Integrity framework. Answer: False Rationale: CMMI stands for Capability Maturity Model Integration framework. Fill in the Blank Questions 40. ___________ management describes all the activities managers do to help companies create goods. Answer: Production 41. ________ management is the management of systems or processes that convert or transform resources into goods and services. Answer: Operations 42. _______ planning focuses on long range planning such as plant size, location, and type of process to be used. Answer: Strategic 43. _______ planning focuses on producing goods and services as efficiently as possible within the strategic plan. Answer: Tactical 44. The five key competitive priorities include cost, quality, _______, flexibility, and service. Answer: Delivery 45. ___________ planning systems track and analyze the movement of materials and products to ensure the delivery of materials and finished goods at the right time, the right place, and the lowest cost. Answer: Transportation Essay Questions 46. Define the term operations management. Answer: Operations management (OM) is the management of systems or processes that convert or transform resources (including human resources) into goods and services. Operations management is responsible for managing the core processes used to manufacture goods and produce services. 47. Explain operations management role in business. Answer: The scope of OM ranges across the organization and includes many interrelated activities, such as forecasting, capacity planning, scheduling, managing inventories, assuring quality, motivating employees, deciding where to locate facilities, and more. 48. Describe the correlation between operations management and information technology. Answer: Managers can use IT to heavily influence OM decisions including productivity, costs, flexibility, quality, and customer satisfaction. One of the greatest benefits of IT on OM is in making operational decisions as operations management exerts considerable influence over the degree to which the goals and objectives of the organization are realized. Most OM decisions involve many possible alternatives that can have varying impacts on revenues and expenses. OM information systems are critical for managers to be able to make well-informed decisions. 49. Describe the five characteristics of competitive priorities. Answer: The key to developing a competitive OM strategy lies in understanding how to create value-added goods and services for customers. Specifically value is added through the competitive priority or priorities that are selected to support a given strategy. There are five key competitive priorities that translate directly into characteristics that are used to describe various processes by which a company can add value to its OM decisions including cost, quality, delivery, flexibility, service. BPI017 Organizational Architecture Trends Multiple Choice Questions 1. What is a business-driven IT architectural approach that supports integrating a business as linked, repeatable tasks or services? A. Business continuity planning B. Open systems C. Service oriented architecture D. Web services Answer: C. Service oriented architecture Rationale: This is the definition of service oriented architecture. 2. Which of the following does not apply to SOA? A. A concrete tool or framework that can be purchased B. An approach C. A way of thinking D. A value systems that leads to certain concrete decisions Answer: A. A concrete tool or framework that can be purchased Rationale: SOA is not a concrete tool or framework to be purchased. 3. Which of the following is not a component in an SOA architecture? A. Business Model B. Service Model C. Implementation Model D. Maintenance Model Answer: D. Maintenance Model Rationale: Figure 17.1 displays the components of an SOA architecture which does not include maintenance model. 4. What are the key technical concepts of SOA? A. Processes, integration, tight coupling B. Services, interoperability, loose coupling C. Services, processes, loose coupling D. Processes, interoperability, tight coupling Answer: B. Services, interoperability, loose coupling Rationale: Services, interoperability, and loose coupling are the key technical concepts of SOA. 5. What is a SOA service? A. A simple business task B. A complex business process which only delivers value to a consumer C. All business processes dealing with customer credit D. All business processes dealing with employee payroll Answer: A. A simple business task Rationale: This is the definition of SOA service. 6. Which of the following is not part of a typical SOA solution? A. Integrate information to make it more accessible to employees B. Understand how business processes interact to better manage administrative costs C. Decrease people productivity with better business integration D. Improve customer retention and deliver new products and services through reuse of current investments Answer: D. Improve customer retention and deliver new products and services through reuse of current investments Rationale: Improve people productivity with better business integration and connectivity. 7. What is extensible markup language (XML)? A. A markup language for documents containing structured information B. A markup system for integrating documents C. A fourth generation language for integrating documents D. None of the above Answer: A. A markup language for documents containing structured information Rationale: This is the definition of XML. 8. What is loose coupling? A. The capability of two or more computer systems to share data and resources, even though they are made by different manufacturers B. A markup language for documents containing structured information C. The capability of services to be joined together on demand to create composite services or disassembled just as easily into their functional components D. None of the above Answer: C. The capability of services to be joined together on demand to create composite services or disassembled just as easily into their functional components Rationale: This is the definition of loose coupling. 9. What is a framework for dividing the resources of a computer into multiple execution environments? A. Loose Coupling B. Interoperability C. Virtualization D. SOA Answer: C. Virtualization Rationale: This is the definition of virtualization. 10. Which of the following is a common service example of loose coupling? A. Conversion of currency B. Update customer address C. Delete customer email address D. All of the above Answer: A. Conversion of currency Rationale: Conversion of currency is a common service loosely coupled to all banking functions that require conversion. 11. Which of the following is an example of loose coupling? A. Common customer identification B. Update customer address C. Update account balance D. Common customer account balance Answer: A. Common customer identification Rationale: One example is common customer identification as most businesses lack a common customer ID and therefore have no way to determine who the customers are and what they purchased. 12. Which of the following is an example of a loosely coupled service? A. The recovery of a university course registration system B. The updating of a university course registration system C. The backup of a banking system D. The cellular telephone system Answer: D. The cellular telephone system Rationale: A cellular telephone system is only connected when the customer is using the service. 13. Which of the following is considered virtualization? A. Updating a customer address B. Partitioning a hard drive C. Adding RAID to a server D. All of the above Answer: B. Partitioning a hard drive Rationale: Even something as simple as partitioning a hard drive is considered virtualization. 14. What is the ability to present the resources of a single computer as if it is a collection of separate computers, each with its own virtual CPUs, network interfaces, storage, and operating system? A. System virtualization B. Server virtualization C. Desktop virtualization D. All of the above Answer: D. All of the above Rationale: This is the definition of system virtualization, also called server virtualization or desktop virtualization. 15. Which of the following is a trend responsible for moving virtualization into the spotlight? A. System administration costs increasing B. Data centers running out of space C. Increasing energy costs D. All of the above Answer: D. All of the above Rationale: There are several trends moving virtualization into the spotlight, such as hardware being underutilized, data centers running out of space, increasing energy costs, and system administration costs mounting. 16. Which of the following reflects Moore's Law? A. New generations of chips deliver double the processing power as the previous generation B. New generations of chips deliver triple the processing power as the previous generation C. New generations of chips deliver quadruple the processing power as the previous generation D. Impossible to determine Answer: A. New generations of chips deliver double the processing power as the previous generation Rationale: New generations of chips deliver twice as much processing power as the previous generation. 17. Which of the following is not an additional benefit of virtualization? A. Rapid application deployment B. Dynamic load balancing C. Ease of use for customer relationship management systems D. Streamlined disaster recovery Answer: C. Ease of use for customer relationship management systems Rationale: Ease of use for customer relationship management systems is not a benefit of virtualization. 18. What is an aggregation of geographically dispersed computing, storage, and network resources, coordinated to deliver improved performance, higher quality of service, better utilization, and easier access to data? A. Virtualization B. Interoperability C. Loose Coupling D. Grid Computing Answer: D. Grid Computing Rationale: This is the definition of grid computing. 19. What enables organizations to optimize computing and data resources, pool them for large capacity workloads, share them across networks, and enable collaboration? A. Virtualization B. Interoperability C. Loose Coupling D. Grid Computing Answer: D. Grid Computing Rationale: With grid computing, organizations can optimize computing and data resources, pool them for large capacity workloads, share them across networks and enable collaboration. 20. Business benefits for using grid computing include? A. Improved productivity and collaboration of virtual organizations and respective computing and data resources B. Allowing widely dispersed departments and businesses to create virtual organizations to share data and resources C. Robust and infinitely flexible and resilient operational architectures D. All the above Answer: D. All the above Rationale: Organizations around the world are experiencing substantial benefits by implementing grids in critical business processes to achieve both business and technology benefits. 21. What is often referred to as being the world's single and most powerful computer solution? A. Virtualization B. Interoperability C. Loose Coupling D. Grid Computing Answer: D. Grid Computing Rationale: The explosive grid computing environments have now proven to be so significant that they are often referred to as being the world's single and most powerful computer solutions. 22. What refers to resources and applications hosted remotely as a shared service over the Internet. A. Cloud Computing B. Interoperability C. Loose Coupling D. Grid Computing Answer: A. Cloud Computing Rationale: This is the definition of cloud computing. 23. What is a model of software deployment where an application is licensed for use as a service provided to customers on-demand. A. Cloud Computing B. Software as a Service C. Loose Coupling D. Grid Computing Answer: B. Software as a Service Rationale: This is the definition of software as a service. 24. Which is not a benefit of the SaaS model over traditional licensed software approaches? A. Easy to Switch Providers B. Pay One Price Fits All C. Lower Total Cost of Ownership D. Easier Upgrades Answer: B. Pay One Price Fits All Rationale: B should read Pay Only for What You Use. True/False Questions 25. SOA provides the technology underpinnings for working with services that are not just software or hardware, but rather business tasks. Answer: True Rationale: SOA provides the technology underpinnings for working with services that are not just software or hardware, but rather business tasks. 26. Loose coupling is the capability of services to be joined together on demand to create composite services, or disassembled just as easily into their functional components Answer: True Rationale: This is the definition of loose coupling. 27. Services are business tasks. Answer: True Rationale: This is the definition of services. 28. Interoperability is the capability of two or more computer systems to share data and resources, even though they are made by different manufacturers. Answer: True Rationale: This is the definition of interoperability. Fill in the Blank Questions 29. SOA is not a concrete architecture; it is something that leads to a ___________ architecture. Answer: Concrete Concrete 30. Loose coupling is simply a way of ensuring that the technical details such as language, platform and so on are _____________ from the service. Answer: Decoupled Decoupled. 31. In a virtualized environment, the logical functions of computing, storage, and network elements are separated from their ____________ functions. Answer: Physical Physical 32. Service oriented architecture begins with a(n) ______________. Answer: Service Service 33. ________________ computing refers to resources and applications hosted remotely as a shared service over the Internet. Answer: Cloud Cloud Essay Questions 34. Describe the business value in deploying a service oriented architecture. Answer: Service oriented architecture (SOA) is a business-driven IT architectural approach that supports integrating a business as linked, repeatable tasks or services. SOA helps businesses innovate by ensuring that IT systems can adapt quickly, easily, and economically to support rapidly changing business needs. SOA increases the flexibility of business processes, strengthens underlying IT architectures, and reuse s existing IT investments by creating connections among disparate applications and information sources. 35. Explain the need for interoperability and loose coupling in building today's IT systems. Answer: Interoperability is the capability of two or more computer systems to share data and resources, even though they are made by different manufacturers. Businesses today have a variety of systems that have resulted in a heterogeneous environment. This heterogeneity has inundated businesses with the lack of interoperability. Loose coupling is a way of ensuring that the technical details such as language, platform, and so on are decoupled from a service. 36. Identify the logical functions used in a virtualized environment. Answer: In a virtualized environment, the logical functions of computing, storage and network elements are separated from their physical functions. The logical functions are: CPU virtualization, memory virtualization, network virtualization, disk virtualization. These functions can be applied broadly across the enterprise. 37. Explain the business benefits of grid computing. Answer: Business benefits of grid computing include (1) Improved productivity and collaboration of virtual organizations and respective computing and data resources; (2) Allowing widely dispersed departments and businesses to create virtual organizations to share data and resources; (3) Robust and infinitely flexible and resilient operational architectures; (4) Providing instantaneous access to massive computing and data resources; (5) Leveraging existing capital investments, which in turn help to ensure optimal utilization and costs of computing capabilities. 38. Describe what Extensible Markup Language (XML) is. Answer: Extensible Markup Language (XML) is a markup language for documents containing structured information. XML is a common data representation that can be used as the medium of exchange between programs that are written in different programming languages and execute different kinds of machine instructions. 39. Explain how Moore's law affects the increasing need for virtualization? Answer: Moore's law not only enables virtualization, but also effectively makes it mandatory. Otherwise, increasing amounts of computing power will go to waste each year. Test Bank for Business Driven Technology Paige Baltzan 9780073376844, 9781259924927, 9781260727814, 9780073376905

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