Your project is forty percent complete though it was scheduled to be fifty percent complete as of today. Management has asked that you report on the schedule variance for your project. If your project has a BAC of $650,000 and you've spent $385,000 to date, what is the schedule variance value?
Answer : D
The schedule variance is found by subtracting the planned value from the earned value. The earned value is the percentage of the project completeness multiplied by the BAC. Planned value is the percentage of where the project should be at this time multiplied by the BAC. In this example, EV = 40% of BAC = 260,000, and
PV = 50% of BAC = 325,000 SV = 260,000 - 325,000 = -65,000
Schedule variance (SV) is a measure of schedule performance on a project. The variance notifies that the schedule is ahead or behind what was planned for this period in time. The schedule variance is calculated based on the following formula:
SV = Earned Value (EV) - Planned Value (PV)
If the resulting schedule is negative, it indicates that the project is behind schedule. A value greater than 0 shows that the project is ahead of the planned schedule. A value of 0 indicates that the project is right on target.
A, B, C: These are not valid calculations of the schedule variance.
Jim is the project manager for his project. He and his project team are creating their duration estimates for the work packages in the WBS. For each activity, Jim is adding a few hours to the duration estimate in case something goes wrong during the completion of the work activity. Sarah, the project sponsor, does not approve of this and warns Jim of Parkinson's Law. What is Parkinson's Law?
Answer : C
Parkinson's Law states that work expands to fill the amount of time allotted to complete the work. If Jim allows 25 hours for a project team member to complete a
20-hour task, it will likely take the team member 25 hours to do the work.
A: This is a description of the Expectancy Theory.
B: This is a description of the learning curve.
D: This is a description of a portion of the Law of Diminishing Returns.
Fill in the blank with the appropriate word. When activities are logically linked, they become the __________
Answer : Schedule
An activity is an individual element of work that is logically linked to other activities to form the schedule. Its primary characteristics include an overall duration based upon the resources applied to it (manpower, material, and equipment), as well as a start and completion date that is tied to a work calendar. It also has a relationship with other activities (predecessors and successors).
You work as a project manager for ABC Inc. You are currently overseeing a project on a high-rise building site. Your prime concern is to ensure that cranes are used effectively for moving materials. You also have to ensure that delivery trucks do not have to wait in a queue and that workers on the upper floors are able to get their deliveries on time. Which type of scheduling would be required in such a scenario?
Answer : C
Resource-oriented scheduling focuses on using and scheduling particular resources in an effective manner. This type of scheduling should be used whenever there are limited resources available for a project and the struggle for these resources between the project activities is intense. As a result, delays are likely to arise in such cases, as actions must wait until general resources become available. Resource-oriented scheduling is also suitable in cases where unique resources are to be used, such as when there is only one excavator available in an excavation operation.
A: Critical path scheduling is a technique that calculates the minimum completion time for a project along with the possible start and finish times for the project activities.
B: Time-oriented scheduling is a time-scheduling method that focuses on determining the finishing time of a project. It also specifies the crucial precedence relationships among the activities involved in the project. In time-oriented scheduling, the appropriate time is allocated for the whole project through the successive stages of the project life cycle.
D: Network scheduling provides a basis for obtaining facts for decision making.
John works as a project manager for BlueWell Inc. He is working on a high-profile project with 80 stakeholders and he needs to express to his project team and to the management the importance of communication in the project. He would like to show the number of stakeholder communication channels in the project. Based on this information how many communication channels exist within this project?
Answer : D
Communication channels are paths of communication with stakeholders in a project. The number of communication channels shows the complexity of a project's communication and can be derived through the formula shown below: Total Number of Communication Channels = n (n-1)/2 where, n is the number of stakeholders. Hence, a project having five stakeholders will have ten communication channels. Putting the number of stakeholders in the formula we can get the required communication channel for the project. It is (80 x 79)/2 for 3,160 communication channels.
You work as a project manager for BlueWell Inc. There have been changes to the project scope in your project. These changes will cause the project schedule to change as well, so you will need to update the schedule and the schedule baseline. The schedule baseline is a component of what?
Answer : D
The schedule baseline is a required component of the project management plan. Project management plan is a formal, agreed document that defines how the project is executed, monitored and controlled. It may be summary or detailed and may be composed of one or more subsidiary management plans and other planning documents. The objective of a project management plan is to define the approach to be used by the project team to deliver the intended project management scope of the project. The project manager creates the project management plan with the inputs from the project team and key stakeholders. The plan should be agreed and approved by at least the project team and its key stakeholders.
A: The project calendar defines when the project will take place.
B: Project constraints are restrictions imposed on the project, such as time, cost, and scope.
C: The schedule baseline is not a project objective.
Holly is the project manager of her project. She has chosen to crash the project due to time constraints that have been imposed on her project. When Holly crashes the project what project document must be updated to reflect this change to the approach?
Answer : D
When Holly adds resources to the project, as in this instance, she will need to update the activity attributes to reflect the new labor. Activity attributes are an output of the Define Activity process. These attributes refer to the multiple components that frame up an activity. The components for each activity during the early stages of the project are the Activity ID, WBS ID, and Activity name. At the later stages, the activity attributes include Activity codes, Predecessor activity, activity description, logical relationship, successor activity, leads and lags, imposed dates, and constraints and assumptions. Activity attributes are used for schedule development and for ordering, selecting, and sorting the planned schedule activities in a number of ways within reports. In project document updates, activity attributes are updated to include any revised resource requirements and other revision generated by the develop schedule process.
Winnie is the project manager for her company. She has been recording the actual durations of the project work to determine the actual progress of her project.
Winnie needs to generate an updated project schedule based on project performance. She is using the supporting schedule data, manual scheduling methods, and her project management software to perform schedule network analysis. What other tool Winnie can use to help and generate an updated project schedule?
Answer : C
The scheduling tool is the only other tool that can help Winnie to create an updated project schedule. The scheduling tool is used in combination with manual methods or further project management software to carry out the schedule network analysis to produce an updated project schedule.
A: The critical path method can be analyzed, but it is a part of the project management information system. In addition, the critical path is not better or worse than the critical chain method so by having both answers among the choices both answers are cancelled.
B: The schedule management plan may need to be referenced to create a new project schedule, but it is not a tool that Winnie can use.
D: The critical chain method can be analyzed, but it is the part of the project management information system. In addition, the critical path is not better or worse than the critical path method so by having both answers among the choices both answers are cancelled.
You are the project manager of the NHQ project. Your project has a budget of $1,258,456 and is scheduled to last for three years. Your project is currently forty percent complete though it should be forty-five percent complete. In order to reach this point of the project, you have spent $525,000. Management needs a performance report regarding the NHQ project. Management is concerned that this project will be over budget upon completion. What is the estimate at completion for this project that you will need to report to management?
Answer : B
The estimate at completion can be calculated by dividing the budget at completion by the cost performance index. Here, CPI =EV/AC=(0.40*1,258,456)/525000 =
0.95882 EAC = BAC/CPI = 1,258456/0.95882 = 1,312,504 What is Estimate at Completion (EAC)? Estimate at Completion (EAC) is a field that displays the final cost of the project including the actual costs and the forecast of remaining costs based on the cost performance index (CPI) so far. The formula used to calculate this estimate is as follows: ACWP+(BAC-BCWP)/CPI
A: -$62,922.80 is the schedule variance.
C: This is not a valid calculation for this question.
D: $787,504 is the estimate to complete.
John works as the project manager for Honeywell Inc. He is involved in the periodic collection and analysis of baseline versus actual data to understand and communicate the project progress. Which of the following techniques is used in generating performance reports?
Answer : D
Forecasting method is a technique used in generating performance reports. Forecasting is the process of estimating or predicting in unknown situations.
Forecasting is about predicting the future as accurately as possible with the help of all the information available, including historical data and knowledge of any future events that might impact forecasts. The forecasting methods are categorized as follows: Time series method: It uses historical data as the basis for estimating future outcomes. Causal/econometric method: This forecasting method is based on the assumption that it is possible to identify some factors that might influence the variable that is being forecasted. If the causes are understood, projections of the influencing variables can be made and used in the forecast.
Judgmental method: Judgmental forecasting methods incorporate intuitive judgments, opinions, and subjective probability estimates. Other methods: Other methods may include probabilistic forecasting, simulation, and ensemble forecasting. It is one of the tools and techniques of the report performance process.
A: Work performance information is the data gathered on the status of the project schedule activities that are performed to accomplish the project work. This data is collected as part of the Direct and Manage Project Execution processes. WPI includes the following: Deliverables status Schedule Progress Costs incurred It is used as an input in generating the report performance process.
B: Change requests are requests to expand or reduce the project scope, modify policies, processes, plans, or procedures, modify costs or budgets or revise schedules. These requests for a change can be direct or indirect, externally or internally initiated, and legally or contractually imposed or optional. A Project
Manager needs to ensure that only formally documented requested changes are processed and only approved change requests are implemented. It is an output of the report performance process.
C: Work performance measurements are created from the work performance information. WPMs are an output of Control schedule, Control cost, and Control scope processes, which are monitoring and controlling processes. WPMs consist of planned versus actual performance indicators with respect to scope, schedule, and cost. They are documented and communicated to the stakeholders and are used to make project activity metrics, such as the following: Planned vs.
Actual Technical performance and Scope performance Planned vs. Actual Schedule performance Planned vs. Actual Cost performance They are used as an input in generating the report performance process.
Which of the following are the inputs to the Develop Project Charter process? Each correct answer represents a complete solution. Choose all that apply.
Answer : BCD
The Develop Project Charter process documents the formal authorization of a project or a phase. It also documents initial requirements that satisfy the stakeholder's needs and expectations. It is used to validate the decisions made during the previous iteration of the Develop Project Charter process. The various inputs of this process are as follows:
-> Project statement of work
-> Business case
-> Enterprise environmental factors
-> Organizational process assets
-> The output of the Develop project Charter process is as follows:
-> Project charter
A: Procurement document is the input of the Identify Stakeholders process.
Beth is the project manager for the NHQ project. This project deals with fiber optic cabling in her organizational campus. Tim is the electrical engineer for her company and is the only internal resource that can complete several of the project activities that deal with the fiber optic cables. Because Tim is a highly-skilled resource, he is already scheduled on several projects within the organization and is not available when Beth needs him to complete some of the project activities.
This is an example of which term?
Answer : D
Because the activities in Beth's project require Tim and his skills. This is an example of an activity resource requirement. A resource constraint would also have been an acceptable answer.
A: A resource calendar conflict is not a valid project management term.
B: This may be a matrix organization, but matrix network is not a valid project management term.
C: Organizational process assets are things that have been created to help assist the management of the project.
Fill in the blank with an appropriate phrase. The_____ allows the project team to look at the performance of the project to date, and use that data to make more accurate projections about the future.
Answer : Schedule model
The main function of the schedule model is to provide a useful 'road map' that can be used by the project manager and the project team to assist them in completing the project fruitfully. A well-developed schedule model is an active tool used to predict at what time the project work that remains to be completed can reasonably be completed. The schedule model allows the project team to look at the performance of the project to date, and use that data to make more accurate projections about the future.
John works as a Project Manager for Blue Well Inc. He is measuring cost efficiency of his project. The key values are provided in the table below:
Answer : C
According to the question, you are required to calculate the cost performance index (CPI) of the project. Cost performance index (CPI) is used to calculate performance efficiencies. It is used in trend analysis to predict future performance. CPI is the ratio of earned value to actual cost. The CPI is calculated based on the following formula: CPI = Earned Value (EV) / Actual Cost (AC) If the CPI value is greater than 1, it indicates better than expected performance, whereas if the value is less than 1, it shows poor performance. The CPI value of 1 indicates that the project is right on target. Here, CPI is as follows: CPI = EV / AV = 425/510 =
0.833 As the CPI (0.833) is less than 1, it shows that the schedule performance is below expectation. What is BCWP (or EV)? Budgeted cost of work performed
(BCWP) or Earned Value (EV) is the value of completed work. It is the budgeted amount for the work actually completed on the schedule activity during a given time period. What is BCWS (or PV)? Budgeted Cost of Work Scheduled (BCWS) or Planned Value (PV) is the authorized budget assigned to the scheduled work to be accomplished for a schedule activity or Work Breakdown Structure (WBS) component. What is ACWP (or AC)? Actual cost of work performed (ACWP) or
Actual Cost (AC) is the total costs actually incurred and recorded in accomplishing work performed during a given time period for a schedule activity. It is the cost of the work to date, including direct and indirect costs. AC is money that has actually been expended to date.
Ben is the project manager of the NHF Project for his organization. Some delays early in the project have caused the project schedule to slip by nearly 15 percent.
Management would like Ben to find a method to recoup the schedule slippage and to get the project back on track. Management is risk-adverse with this project.
Which of the following methods should Ben avoid to recoup the project time?
Answer : B
Of all the choices, Ben should avoid fast tracking, as it allows complete phases of the project to overlap, and this increases project risks. Management wants to avoid risks, so fast tracking would not be helpful. Fast tracking is a technique for compressing project schedule. In fast tracking, phases are overlapped that would normally be done in sequence. It is shortening the project schedule without reducing the project scope.
A: Crashing adds people and costs but is relatively safe in regard to risks.
C: Critical chain is not a schedule compression technique and would not necessarily help the project get back on schedule.
D: Lead time, similar to fast tracking, can increase project risks; however, fast tracking is more risky than lead time. Lead time allows individual activities to overlap, while fast tracking allows entire project phases to overlap.
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