Chuck Wright Pmp Study Group - Chapter 7

Front 1

What are the 6 tools and techniques for the "Control Costs" process?

Back 1

1) Earned Value Management

2) Forecasting

3) To-complete performance index (TCPI)

4) Performance reviews

5) Variance analysis

6) Project management software

Front 2

What are the 5 tools and techniques for the "Determine Budget Process?"

Back 2

1) Cost aggregation

2) Reserve analysis

3) Expert judgement

4) Historical relationships

5) Funding limit reconciliation

Front 3

What are the 2 main categories of cost in cost of quality?

Back 3

1) Conformance

2) Non-conformance

Front 4

What does forecasting mean?

Back 4

Developing an estimate of the cost of the project, at completion, based upon project performance. This is called EAC (estimate at completion).

Front 5

What are the 4 inputs to the Control Costs process?

Back 5

1) Project management plan

2) Project funidng requirements

3) Work performance information

4) Organizational process assets

Front 6

What are the 3 outputs of the Estimate Costs Process?

Back 6

1) Activity cost estimates

2) Basis of estimates

3) Project document updates

Front 7

What is parametric estimating?

Back 7

A top to bottom method of estimating, using a statistical relationship between historical data and other parameters to calculate an estimated cost for activities.

Front 8

What are the 3 earned value data points?

Back 8

1) PV (planned value)

2) EV (earned value)

3) AC (actual cost)

Front 9

What are the 4 constraints that might affect your cost estimates?

Back 9

1) Limited budget

2) Required delivery dates

3) Availability of skilled resources

4) Organizational policies

Front 10

What is the usual method of showing the cost baseline and expenditures?

Back 10

An S-curve

Front 11

What are the 7 resources for which cost estimates should be developed on a project?

Back 11

1) Labor

2) Materials

3) Equipment

4) Services

5) Facilities

6) Inflation allowance

7) Contingency

Front 12

What is the standard deviation formula for the PERT equation?

Back 12

SD = (Cp -Co)

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6

Front 13

What is the EAC forecast for ETC work considering both SPI and CPI factors?

Back 13

EAC = AC + [ BAC - EV ]

-------------------------------

Cum CPI x Cum SPI

Front 14

What is the most accurate EAC formula that works in every project case and must be used when the original estimates are fundamentally flawed?

Back 14

EAC = AC + a new bottom-up ETC

Front 15

What does the term EAC mean?

Back 15

Estimate at Completion

Front 16

What is the TCPI (to complete performance index) formula when the original BAC is no longer achievable and the project is rebaselined to the new EAC?

Back 16

TCPI = BAC - EV

------------

EAC - AC

Front 17

What is the EAC forecast for a project that is expected to accomplish the ETC work at the current CPI rate?

Back 17

EAC = [ BAC ]

----------------------------

cumulative CPI

Front 18

What are the forumlas for SPI (schedule performance index) and CPI (cost performance index)?

Back 18

SPI = EV / PV

CPI = EV / AC

Front 19

What is the total planned value for a project also known as?

Back 19

The BAC (budget at completion)

Front 20

What is the function of the reserve analysis tool in estimate costs?

Back 20

1) To establish the contingency reserv, which is an allowance for unplanned, not initially identified, but potentially required changes (know unknowns)

2) To make sure that adequate reserves remain at the project progresses.

Front 21

Later in the Planning phase, what is the cost estimate called?

What is the range?

Back 21

1) Definitive Estimate

2) Range = +/- 10%

Front 22

Describe "Estimate at Completion (EAC)"

Back 22

A forecast of how much we think the project will cost when it is finished.

Front 23

Describe "Estimate to Completion (ETC)"

Back 23

A forecast of how much money we expect to spend.

Front 24

Which process contains the activities to approximate the monetary resources needed to complete individual activities or work packages?

Back 24

The "Estimate Costs" Process.

Front 25

Which process aggregates the estimated cost of individual activities or work packages to establish an authorized baseline?

Back 25

The "Determine Budget" Process.

Front 26

"Bottom up Estimating" is a "tool & technique" of what process?

Back 26

The "Extimate Activity Resources" process.

Front 27

The "cost baseline" is output of what process?

Back 27

The "Determine Budget" Process.

Front 28

What information does "Index Formulas" (SPI, CPI, CCPI) provide?

Back 28

They give project efficiency info or how "efficiently" you are using time and / or resources.

Front 29

What is the purpose of the "Control Costs" process?

Back 29

It's the process of monitoring the status of the project budget and managing changes to cost baseline.

Front 30

Any change to the authorized budget must be made through what process?

Back 30

The "Perform Integrated Change Control" Process

Front 31

Which process seeks out causes of both positive and negative variances and is part of the "Integrated Change control" process.

Back 31

The "Project Cost Control" process.

Front 32

What does the "Budgeted Cost of Work Scheduled (BCWS)" predict?

Back 32

BCWS estimates the value of work to be completed by a project within a specific time period.

Front 33

What is the formula for Planned Value (PV)?

Back 33

Planned % complete * Budget at Completion (BAC)

Front 34

What is the formula for Schedule Performance Index (SPI)?

Back 34

EV

----

PV

Front 35

What is the formula for Cost Performance Index (CPI)?

Back 35

CV

----

AC

Front 36

What is the formula for Cumalitive Cost Performance Index (CCPI)

Back 36

Cumalative EV

--------------------

Cumalative AC

Front 37

What does it mean if the Schedule Performance Index (SPI) is less than 1.0?

Back 37

You are behind schedule.

Greater than 1.0, you are ahead of schedule.

SPI = EV / PV

It is the measure of progress achieved compared to progress planned on a project. The per

Front 38

Define SWOT Analysis?

Back 38

SWOT = Strength, Weaknesses, Oppurtunities & Threats. It is the subjective assessment of a given situation to make decisions on planning & management. Ask Questions, organize answers into a template.

Front 39

Define Value Analysis?

Back 39

The goal is to increase value by reducing the cost / function relationship.

Front 40

Define Stakeholder Analysis?

Back 40

It identifies the stakeholders of the project and determines their needs, wants and expectations.

Front 41

Define Lateral Thinking?

Back 41

This is a "tool and technigue" of scope definition. It means "thinking out of the box". It means to separate yourself from the problem and look at it from different angles.

Front 42

Describe "Actual Costs"

Back 42

Actual Costs or "Actual Cost of Work Produced" are the actual costs incurred by the project at a certain point in time. In other words, you add up all the costs incurred by the project as of today.

Actual Costs has no upper limit.

Front 43

Describe "Schedule Variance"

Back 43

The "schedule variance" shows whether a project is ahead or behind schedule.

SV = EV - PV

+ = good

- = bad

0 = on plan

Front 44

Describe "Earned Value"

Back 44

Also known as "Basic Cost of Work Produced" or BCWP. It is the estimated value of the work completed on your project as of today.

EV = Percent Complete * BAC.

Front 45

Describe "Cost Performance Index" or (CPI)

Back 45

CPI is the measure of the "Value" of work completed compared to the actual cost or progress made on a project.

Front 46

Describe "Schedule Variance"

Back 46

SV is the measure of Schedule Performance on a project

SV = EV - PV

Front 47

Describe "Cost Variance"

Back 47

This is the measure of Cost Performance on a project.

CV = EV - AC

Front 48

Describe "Planned Value"

Back 48

It is the authorized budget assigned to the work to be accomplished for an activity or a WBS component.

Sometimes total of PV is known as Performance Measurement Baseline. Also, known as Budget at Completion (BAC)

Front 49

Describe "Cost Baseline"

Back 49

Cost Baseline includes all authorized budgets but EXCLUDES management reserves. Management reserves are not part of EVM.

Project Cost Performance will be measured against the authorized budget.

Front 50

Describe the "Taguchi Method"

Back 50

`This method computes a "loss function" used to determine the cost of producing products that fail to achieve a target value.

Front 51

True or False? A revised cost baseline may need to be created to provide a realistic basis for performance measurement.

Back 51

True.

Front 52

Describe "Direct Charges"

Back 52

These are the costs allocated to a project by the project team as the cost of doing business.

Front 53

Describe "Indirect Charges"

Back 53

These are "overhead" or costs incurred for benefit of more than one project. It is usually a percentage of direct costs. For example, overhead lights.