Quiz 9: Reducing Project Duration

Business

A Explanation: Imposed deadlines are another reason for accelerating project completion.For example, the president of a software company remarks in a speech that new advanced software will be available in one year.Such statements too often become imposed project duration dates-without any consideration of the problems or cost of meeting such a date.The project duration time is set while the project is in its "concept" phase before or without any detailed scheduling of all the activities in the project.This phenomenon occurs very frequently in practice.

B Explanation: Intense global competition and rapid technological advances have made speed a competitive advantage.To succeed, companies have to spot new opportunities, launch project teams, and bring new products or services to the marketplace in a flash.

E Explanation: Incentive contracts can make reduction of project time rewarding-usually for both the project contractor and owner.For example, a contractor finished a bridge across a lake 18 months early and received more than $6 million for the early completion.The availability of the bridge to the surrounding community 18 months early to reduce traffic grid-lock made the incentive cost to the community seem small to users.