Your Next Project Consists of 10 Consecutive 8-Day Activities,each Estimated

question 51

Multiple Choice

Your next project consists of 10 consecutive 8-day activities,each estimated by a different worker in your organization.Note that the estimators have not yet added any buffer to the 8-day figure.Your organizational culture dictates that you add your own safety margin of 30% into your estimates.The new project manager has just completed an excellent course in project management offered at the local university.When the first project meeting begins,he dazzles you with his wit and sophistication.You are considerably less charmed when he reveals that he has an exciting new technique for managing projects.He adheres to critical chain project management ideas and plans to create an overall project safety buffer after trimming the safety buffers from each of the 10 activities.How much closer has the project deadline moved?

• A)12 days
• B)6 days
• C)18 days
• D)9 days

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Definitions:

Direct Labor-Hours

The full sum of time spent by employees directly engaged in the process of creating products.

Variable Overhead

Costs that change with production volume but are not directly tied to specific units, such as utilities for the manufacturing plant.

Direct Materials

Raw materials that are directly traceable and allocable to a finished product in the manufacturing process.

Direct Labor-Hours

A unit of measure for the time workers spend producing goods or services, indicative of the labor cost attributed per hour.