This set of Industrial Management Multiple Choice Questions & Answers (MCQs) focuses on “PERT”.

1. What is the fullform of PERT?

a) Project evaluation and review tool

b) Programme evaluation and review technique

c) Plan evaluation and review technique

d) Plan evaluation and review tool

View Answer

Explanation: PERT is an acronym for Project (or Programme) evaluation and review (or research) technique. It is an event-oriented approach.

2. How many time estimates are used in PERT?

a) One

b) Two

c) Three

d) Four

View Answer

Explanation: There are three-time estimates used in PERT to find the expected duration of an activity. They are optimistic time, pessimistic time and the most likely time.

3. Which of the following network techniques follows an event-oriented approach?

a) CPM

b) PERT

c) CPM and PERT

d) Normal Distribution

View Answer

Explanation: PERT is an event-oriented approach. It is designed for planning, scheduling and controlling projects of R & D, non-repetitive, non-routine, prototype, production, defence projects etc.

4. Which of the following is not a time estimate used in PERT?

a) Optimistic time

b) Pessimistic time

c) The most likely time

d) Crash time

View Answer

Explanation: There are three-time estimates used in PERT to find the expected duration of an activity. They are optimistic time, pessimistic time and the most likely time. Crash time is used in project crashing and is related to CPM.

5. Among the following probabilistic distributions, pick the one that PERT is associated with for calculating the expected time of activity.

a) Normal distribution

b) Poisson distribution

c) β – distribution

d) Normal and Poisson distribution

View Answer

Explanation: PERT follows β – distribution to find the expected time of activity. Mean of the β – distribution is equal to the expected time of activity.

6. Calculate the expected completion time (in weeks) if the optimistic, pessimistic and the most likely times are as 4, 8 and 6 weeks respectively.

a) 5 weeks

b) 6 weeks

c) 7 weeks

d) 4 weeks

View Answer

Explanation: Given,

Optimistic time, t

_{o}= 4 weeks

Pessimistic time, t

_{p}= 8 weeks

The most likely time, t

_{m}= 6 weeks

We know that,

t

_{e}= \(\frac {t_o + 4t_m + t_p}{6} = \frac {4 + 24 + 8}{6}\) = 6 weeks

7. Identify the correct statement.

a) PERT is a deterministic model

b) CPM is an event-oriented approach

c) PERT has a one-time estimate

d) PERT considers only time as a controlling factor

View Answer

Explanation: PERT is a probabilistic model. PERT is an event-oriented approach and CPM is an activity-oriented approach. PERT has three-time estimates and CPM has only one fixed time. PERT considers only time as a controlling factor whereas CPM considers both time and cost as controlling factors.

8. Among the following network techniques, identify the one that does not allow project crashing.

a) CPM

b) PERT

c) CPM and PERT

d) Poisson distribution

View Answer

Explanation: PERT is an event-oriented approach. It is designed for planning, scheduling and controlling projects of R & D, non-repetitive, non-routine, prototype, production, defence projects etc.

9. Match the following.

p) Project crashing possible i) The maximum time for activity completion q) Project crashing not possible ii) The minimum time for activity completion r) Crash time iii) PERT iv) CPM

a) p – ii, q – i, r – iii

b) p – ii, q – i, r – iv

c) p – iv, q – iii, r – ii

d) p – i, q – ii, r – iii

View Answer

Explanation: CPM allows project crashing and PERT does not allow project crashing. Crash time is the minimum time within which an activity can be completed.

10. Find the cost slope of activity when its crash cost and normal cost are Rs. 2800 and Rs. 2000 respectively. The normal time and the crash time are 8 days and 5 days respectively.

a) 267

b) 276

c) 206

d) 216

View Answer

Explanation: Given,

Crash cost = CC = Rs. 2800/-

Normal cost = NC = Rs. 2000/-

Normal time = NT = 8 days

Crash time = CT = 5 days

We know that,

Cost slope = \( \frac {Crash \, cost-Normal \, cost}{Normal \, time – Crash \, time} = \frac {CC-NC}{NT-CT} = \frac {2800-2000}{8- 5} = \frac {800}{3}\) = 266.66 ≡ 267

11. The optimistic, pessimistic and the most likely times of activity are 4, 8 and 6 weeks respectively. What is the variance of the activity according to the β– distribution of PERT?

a) \( \frac {4}{9}\)

b) \( \frac {4}{6}\)

c) \( \frac {2}{3}\)

d) \( \frac {8}{3}\)

View Answer

Explanation: Given,

Optimistic time, t

_{o}= 4 weeks

Pessimistic time, t

_{p}= 8 weeks

The most likely time, t

_{m}= 6 weeks

We know that,

Variance, σ

^{2}= \((\frac {T_p-T_o}{6})\times(\frac {T_p-T_o}{6}) = (\frac {8-4}{6})^2 = (\frac {2}{3})^2 = \frac {4}{9} \)

12. The optimistic, pessimistic and the most likely times of activity are 4, 8 and 6 weeks respectively. Find the standard deviation of the activity according to the β – distribution of PERT?

a) \( \frac {4}{9}\)

b) \( \frac {4}{6}\)

c) \( \frac {2}{3}\)

d) \( \frac {8}{3}\)

View Answer

Explanation: Given,

Optimistic time, t

_{o}= 4 weeks

Pessimistic time, t

_{p}= 8 weeks

The most likely time, t

_{m}= 6 weeks

We know that,

Standard deviation, σ = \((\frac {T_p-T_o}{6}) = (\frac {8-4}{6}) = (\frac {2}{3})\)

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