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120 Cards in this Set
- Front
- Back
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Role of project sponsor during project initiation is to assist in:
-Defining projects objectives in both business and technical terms -Developing the project plan -Performing the project feasibility analysis -Performing project cost-benefit analysis |
Defining projects objectives in both business and technical terms
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Role of project sponsor during project execution:
-Validate project's objectives -Validate execution of plan -Make all project decisions -Resolve problems/conflicts that can’t be resolved elsewhere in the organization |
Resolve problems/conflicts that can’t be resolved elsewhere in the organization
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Role of the project sponsor during the closure of the project or a life-cycle phase of the project is to:
-Validate that profit margins are correct -Sign off on acceptance of deliverables -Administer performance reviews of project team members -All of the above |
Sign off on acceptance of the deliverables
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Document that officially sanctions a project:
-Project charter -Project plan -Feasibility study -Cost benefit analysis |
Project charter
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Work breakdown structure control points for the management of a project:
-Milestones -Work packages -Activities -Constraints |
Work packages
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One of most common reasons projects undergo scope changes:
-Poor work breakdown structure -Poorly defined statement of work -Lack of resources -Lack of funding |
Poorly defined statement of work
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Cannot be validated using a work breakdown structure:
-Schedule control -Cost control -Quality control -Risk management |
Quality control
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Performance measurement baseline is most often composed of three baselines:
-Cost, schedule, risk -Cost, schedule, scope -Cost, risk, quality -Schedule, risk, quality |
Schedule, cost, scope
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Benefits of developing WBS to low levels:
-Better estimation of costs -Better control -Less likely for things to fall through cracks -All of the above |
All: Better estimation of costs, better control, less likely for things to fall through cracks
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Baselines, once established, identify:
-What the customer and contractor agree to -What the sponsor and customer agree to -What the customer wants done but not necessarily what the project manager plans to do -What the project manager plans to do, not necessarily what the customer has asked for. |
What the project manager plans to do, not necessarily what the customer has asked for.
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Financial closeout is used to:
-Close out all charge numbers -Close out all charge numbers for work performed and completed -Amend work authorization forms -None |
Close out all charge numbers for work performed and completed
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Contractor asking to conduct only eight tests rather than 10 tests required by spec. PM first action should be:
-Change scope baseline -Ask contractor to initiate a change request -Look at penalty clauses in contract -Ask sponsor |
Ask contractor to initiate a change request
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Contractor sends email to use high quality raw materials to be value added and improve quality. PM should:
-Change scope baseline -Ask contractor to initiate a change request -Ask sponsor -Change WBS |
Ask contractor to initiate a change request
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Maximum number of subsidiary plans a program management plan can contain:
-10 -15 -20 -Unlimited |
Unlimited
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Change control board approves significant scope change. First document PM should update would be:
-Scope baseline -Schedule -WBS -Budget |
Scope baseline
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Shortest time necessary to complete all activities in a network is called:
-Activity duration length -Critical path -Maximum slack path -Compression path |
Critical path
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Cannot be identified after forward and backward pass:
-Dummy activities -Slack time -Critical path activities -How much OT is planned |
How much OT is planned
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Not a commonly used technique for schedule compression:
-Resource reduction -Reducing scope -Fast tracking activities -Use of OT |
Resource reduction
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Disadvantage of using bar charts to manage a project
-Do not show dependencies between activities -Ineffective for projects under one year -Are ineffective for projects under $1 million -Do not identify start and end dates of schedule |
Do not show dependencies between activities
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Reducing peaks and valleys in manpower assignments to obtain relatively smooth manpower curve:
-Manpower allocation -Manpower leveling -Resource allocation -Resource commitment planning |
Manpower leveling
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Activities with no time duration:
-Reserve activities -Dummy activities -Zero slack activities -Supervision activities |
Dummy activities
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Optimistic, pessimistic and most likely times are associated with:
-PERT -GERT -PDM -ADM |
PERT
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Most common “constraint” or relationship in precedence network is:
-Start-to-start -Start-to-finish -Finish-to-start -Finish-to-finish |
Finish-to-start
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Network based technique that allows for branching and looping:
-PERT -GERT -PDM -ADM |
GERT
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If activity on critical path takes longer than anticipated:
-Activities not on the critical path have additional slack -Activities not on the critical path have less slack -Additional critical path activities will appear |
Activities not on critical path have additional slack.
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Which of the following is a valid way of obtaining proper project performance information?
-First hand observations -Oral and written reports -Review and technical interchange meetings -All of the above |
All:
-First hand observations -Oral and written reports -Review and technical interchange meetings |
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Proper graphical display of information can result in:
-Reducing paperwork costs -Reducing reporting costs -Reduce time for routine decisions -All of the above |
All:
-Reducing paperwork costs -Reducing reporting costs -Reduce time for routine decisions |
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Which is a valid way to evaluate financial feasibility of a project?
-Return on investment -Net present value -Internal rate of return -All |
All:
-Return on investment -Net present value -Internal rate of return |
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3 common classification systems for estimates include all except:
-Parametric estimates -Quick and dirty estimates -Analogy estimates -Engineering estimates |
Quick and dirty estimates
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Most accurate estimates are:
-Parametric estimates -Quick and dirty estimates -Analogy estimates -Engineering estimates |
Engineering estimates
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Which is a bottom-up estimate rather than a top-down estimate?
-Parametric estimates -Analogy estimates -Engineering estimates -None |
Engineering estimates
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Which would be considered as a cost-estimating relationship (CER)?
-Math equations based on regression analysis -Learning curves -Cost-cost or cost-quality relationships -All |
All:
-Math equations based on regression analysis -Learning curves -Cost-cost or cost-quality relationships |
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If a worker earns $30/hr in salary, but project is charged $75/hr for every hour they work; overhead rate is:
-100% -150% -250% -None |
150%
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Information supplied to a customer to support financial data provided in a proposal is:
-Backup data -Engineering support data -Labor justification estimates -Legal rights estimates |
Backup data
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Estimating pitfalls can result from:
-Poorly defined SOW -Failure to account for risks in estimates -Using wrong estimating techniques -All |
All:
-Poorly defined SOW -Failure to account for risks in estimates -Using wrong estimating techniques |
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Source of many estimating risks is:
-Poorly defined requirements -Inexperienced PM -Lack of management support during estimating -All |
All:
-Poorly defined requirements -Inexperienced PM -Lack of management support during estimating |
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Project where scope evolves as work takes place is called either progressive planning or:
-Synchronous planning -Continuous planning -Rolling wave planning -Continuous reestimation planning |
Rolling wave planning
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Calculation of the total cost of product, from R&D to operational support and disposal, is called:
-Birth to death costing -Life cycle costing -Summary costing -Depreciation costing |
Life cycle costing
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In earned value measurement, earned value is represented by:
-BCWS -BCWP -ACWP -None |
BCWP
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If BCWS = 1000, BCWP = 1200, ACWP = 1300, the project is:
-Ahead of schedule, under budget -Ahead of schedule, over budget -Behind schedule, over budget -Behind schedule, under budget |
Ahead of schedule, over budget
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If BAC = 20K and project is 40% complete, earned value is:
-5K -8K -20K -Cannot determine |
8K
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If BAC = 12K and CPI=1.2, variance at completion is:
-(2K) -2K -(3K) -3K |
BCWP/ACWP = 1.2
12/x=1.2 1.2x=12 12/1.2 = 10k = ACWP +2k |
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If BAC = 12K and CPI = .8, variance at completion is:
-(2K) -2K -(3K) -3K |
BAC/BCWP = 12k
CPI = .8 = BCWP - ACWP .8 = 12k-ACWP .8ACWP = 12k 12k/.8 = 15k -3K |
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If BAC for a work package is 10k and BCWP = 4K, work package is:
-40% complete -80% complete -100% complete -120% complete |
40% complete
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If CPI= 1.1 and SPI = .95, then the trend for the project is:
-Running over budget, ahead of schedule -Running over budget, behind schedule -Running under budget, ahead of schedule -Running under budget, behind schedule |
Running under budget, behind schedule
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Document that describes a work package, identifies cost centers allowed to charge against it, and establishes the charge number is:
-Code of accounts -Work breakdown structure -Work authorization form -None |
Work authorization form
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Unknown problems such as escalation factors are often budgeted for using:
-PM charge number -Project sponsor charge number -Management reserve -Configuration management cost account |
Management reserve
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EAC, ETC, SPI, CPI most often appear in which report?
-Performance -Status -Forecast -Exception |
Forecast
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If BAC=24K, BCWP =12K, ACWP = 10K, CPI = 1.2, cost that remains to finish project is:
-10k -12k -14k -Cannot determine |
10k
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Several purposes for 50/50 rule, but primary purpose is to calculate:
-BCWS -BCWP -ACWP -BAC |
BCWP
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When a project is completed, which must be true?
-BAC=ACWP -ACWP=BCWP -SV=0 -BAC = ETC |
SV=0
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In March CV = (20K), April CV = (30K). To tell whether situation has deteriorated because of larger unfavorable cost variance, need to calculate:
-CV in % -SV in $ -SV in % -All |
SV in %
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If PM is looking for revenue from value added scope change, first choice would be:
-Management reserve -Customer funded scope change -Undistributed budget -Retained profits |
Customer funded scope change
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Project was originally scheduled for 20 months. If CPI is 1.25, then the new schedule date is:
-16 months -20 months -25 months -Cannot determine |
Cannot determine
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The cost or financial baseline of a project is composed of:
-Distributed budget only -Distributed and undistributed budgets only -Distributed budget, undistributed budget & management reserve only -Distributed budget, undistributed budget & management reserve and profit only |
Distributed budget, undistributed budget only
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BUDGETED COST FOR WORKED SCHEDULED (BCWS)
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Budgeted amount of cost for work scheduled to be accomplished + amount of level of effort scheduled in a given time period
*Subtracted to find schedule variance *PV *How much of the work should be done? |
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BUDGETED COST FOR WORK PERFORMED (BCWP)
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Budgeted amount of cost for completed work, + budgeted for level of effort activity in a given time period
*Earned value *Point of comparison for cost and schedule variance =% complete * BAC *How much of the work is done? |
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ACTUAL COST FOR WORK PERFORMED (ACWP)
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Amount reported as actually expended in completing work accomplished in a given time period.
*Subtracted to find cost variance *Actual cost *How much did the "is done" work cost? |
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COST VARIANCE
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CV =BCWP - ACWP
*Compares deviations only from the budget and does not provide a measure of comparison between work scheduled and work accomplished. *Negative variance = cost overrun *Measures efficiency: to correct, emphasize productivity (burn rate) at which work is being performed |
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SCHEDULE/PERFORMANCE VARIANCE
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SV = BCWP - BCWS
*Provides a comparison between planned and actual performance but does not include costs. *Negative variance = behind schedule *To correct, emphasize speed at which work is being performed |
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SCHEDULE VARIANCE % = (SVP)
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(SV/BCWS) * 100
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COST VARIANCE % = (CVP)
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(CV/BCWP) * 100
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Estimate at completion (EAC)
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EAC = (ACWP/BCWP) * BAC (Budget at completion)
The estimate at completion is the best estimate of the total cost at the completion of the project. *What do we now expect the total job to cost? The EAC is a periodic evaluation of the status of the project - usually on a monthly basis or until a significant change has been identified. |
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CPI (cost performance index)
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BCWP/ACWP
*If <1, unfavorable (being accomplished at higher cost than planned) |
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SPI (schedule performance index)
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BCWP/BCWS
*If <1, unfavorable (being accomplished at slower rate than planned) |
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BAC - budget at completion/total budget
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What was the total job supposed to cost?
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Variance at completion
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VAC = BAC - EAC
VAC = BAC - [(ACWP/BCWP)*BAC] |
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Tradeoffs are almost always necessary because:
-PMs are incapable of planning correctly -Line managers are unable to provide accurate estimates -Executives are unable to properly define project objectives -Circumstances can change, thus mandating tradeoffs take place |
Circumstances can change, thus mandating tradeoffs take place
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The person who may ultimately be responsible for approving tradeoffs is:
-Project manager -Line manager -Project sponsor -Customer |
Customer
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Most common tradeoffs occur over:
-Time, cost, quality -Risk, cost, quality -Risk, time, quality -Scope, quality, risk |
Time, cost, quality
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If start date of project is delayed but budget and specs are fixed, what would the project manager trade off first?
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Quality
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The two components of risk are:
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Uncertainty and impact
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Risk management is normally performed by
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Developing contingency plans
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Future outcomes that provide favorable opportunities are called:
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Opportunities
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The cause of a risk event is usually referred to as:
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A hazard
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If there's a 40% chance of making 100k and 60% chance of losing 150k, the expected monetary outcome is:
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-50000
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Assumption, mitigation and transfer are examples of risk:
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Responses
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In which life cycle phase would project uncertainty be the greatest?
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Initiation
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In which life cycle phase would financial risks of a project be the greatest?
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Closure
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Identifying a risk as high, moderate, or low would be an example of which risk assessment?
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Qualitative
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Monte Carlo simulation is an example of which risk assessment?
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Quantitative
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Which of the following is not a valid reason for managing a risk?
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Providing a late as possible warning system
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Which of the following is generally not part of overall risk management?
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Selecting the PM
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A technique for risk evaluation that uses a questionnaire, series of rounds, and reports submitted in confidence and then circulated with the source unidentified is called:
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The Delphi Technique
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Risk symptoms or early warning signs are called
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Triggers
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Which of the following is not a risk quantification tool or technique?
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Objective setting
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A technique that depicts interactions among decisions and associated events is called:
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Decision tree analysis
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Varying one risk driver at a time, either in small increments or from optimistic to pessimistic estimates while keeping all other drivers fixed, is called:
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Sensitivity analysis
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A risk response strategy that generally reduces the probability or impact of the event without altering the project's objectives is called:
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Mitigation
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Earned value measurement is an example of:
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Risk monitoring and control
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The difference between being proactive and reactive is the development of a:
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Contingency plan
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According to learning curve theory, learning takes place at a fixed rate whenever the production levels
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Double
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Learning curve theory is most appropriate for estimating which costs?
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Manufacturing
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On a 90% learning curve, the 100th unit required 80 hours. How many hours would the 200th unit require?
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Shouldn't this be 72? Book says 90. How can it increase? Check.
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Which of the following can be a source of improvement to a learning curve?
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All of the above
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The contractual statement of work is
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A narrative description of the work deliverables to be accomplished and/or the resource skills required
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A written or pictorial document that describes, defines, or specifies the services or items to be procured is
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A specification document
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The order of precedence is
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The document that specifies the order/priority in which project documents will be used when it becomes necessary to resolve inconsistencies between project documents
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In which type of contract arrangement is the contractor least likely to want to control costs?
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Cost plus percentage of cost
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In which type of contract arrangement is the contractor most likely to want to control costs?
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Firm fixed price
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In which type of contract arrangement is the contractor at the most risk of absorbing all cost overruns?
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Firm fixed price
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In which type of contract arrangement is the customer at the most risk of absorbing all cost overruns?
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Cost plus percentage of cost
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What is the primary objective the customer's project manager focuses on when selecting a contract type?
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Creating reasonable contractor risk with provisions for efficient and economical performance incentives for the contractor
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Which type of contract arrangement is specifically designed to give a contractor relief for inflation or material/labor cost increases on a long term contract?
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Firm fixed price with economic price adjustment
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Which of the following is not a factor to consider when selecting a contract type?
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Type/complexity of requirement, urgency of requirement and price competition extent are all factors to consider
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In a fixed price incentive fee contractor, the point of total assumption refers to the point in the project cost curve where:
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The contractor assumes responsibility for every additional dollar that is spent in fulfilling the contract
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A written preliminary contractual instrument prepared prior to the issuance of a definitive contract that authorizes the contractor to begin work immediately, within certain limitations, is a
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Letter contract/letter of intent
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A contract entered into after following normal procedures, e.g. negotiation of terms, conditions, cost and schedule, but prior to initiation of performance is known as a
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Definitive contract
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Which of the following is not a function of contract admin activity?
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Selecting the PM
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A fixed price contract is typically sought by the PM from the customer org when
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The risk and consequence associated with the contracted task are large and the customer wants to transfer the risk
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Which of the following are typical actions a customer would take if the customer received nonconforming materials or products and the customer didn't have the ability to bring goods into conformance?
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Accept the shipment on the condition that the nonconforming products will be brought into conformance by the vendor at the vendor's expense
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If a PM requires use of a piece of equipment, what is the breakeven point where leasing and renting are the same?
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100 days
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In which type of incentive contract is there a maximum or minimum value established on the profits allowed for the contract?
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Cost plus incentive fee contract
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In which type of incentive contract is there a maximum or minimum value established on the final price for the contract?
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Fixed price incentive fee contract
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A cost plus incentive fee contract has the following characteristics:
Sharing ratio 80/20 Target cost 100k Target fee 12k Max fee 14k Min fee 9k How much will the contract be reimbursed if cost of performing work is 95k? |
Cost - 95K
Fee - 12K 20% of 5K savings under target cost - 1K 108K total |
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A cost plus incentive fee contract has the following characteristics:
Sharing ratio 80/20 Target cost 100k Target fee 12k Max fee 14k Min fee 9k How much will the contractor be reimbursed if the cost of performing the work is 85K? |
Cost - 85K
Fee - 12K 20% of 15K savings under target cost, up to max total fee of 14K: 2K 99K |
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A cost plus incentive fee contract has the following characteristics:
Sharing ratio 80/20 Target cost 100k Target fee 12k Max fee 14k Min fee 9k How much will the contractor be reimbursed if the cost of performing the work is 120K? |
120k cost
Fee - 12K Minus customer savings for being over cost, up to min fee of 9K: (3K) 129K 132K |
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A fixed price incentive fee contract:
Sharing ratio 70/30 Target cost 100k Target fee 8K Price ceiling 110k How much will contractor be reimbursed if cost of performing the work is 90k? |
Target Cost 100k
Actual Cost 90k Savings - 10k Contractor Share - 10k (30%) = 3k Fee = 8K 101k |
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A fixed price incentive fee contract:
Sharing ratio 70/30 Target cost 100k Target fee 8K Price ceiling 110k How much will contractor be reimbursed if cost of performing the work is 102k? |
Target cost 100k
Actual Cost 102k Overrun - 2k Contractor Deduction = $600 102k+8K-600 =109,400 |
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A fixed price incentive fee contract:
Sharing ratio 70/30 Target cost 100k Target fee 8K Price ceiling 110k How much will contractor be reimbursed if cost of performing the work is 105k? |
Actual Cost 105K
Fee 8K Overrun 5K Contractor deduction =1500 Revised Fee 6,500 105K+6.5K = 111.5K - exceeds ceiling Pay 110K |
