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Planning & Scheduling Professional (PSP) Questions 57–64 (page: 9)

Updated On: 15-Jun-2026

SIMULATION
Background
Your name is Evan Marshal. You are the corporate scheduler for Happy Insurance Corporation (HIC), a general health insurance company located in Ridgemond, Illinois. HIC is very busy with 49 unique software development projects. The organization structure at HIC gives the project scheduling responsibility to the Project Manager assigned to each project. You are charged with coordination of the project schedules into a Master Schedule and quality control for scheduling on the individual development projects. You report directly to the Director of Information Services (DIS), Desmond Rayburn.
It has come to your attention Project JP-114 has fallen behind schedule and Rita Belateau, the Project Manager, wants to accelerate the project in order to reclaim lost time. Rita is a strong supporter of Total Quality Management and strives for zero failures; therefore she is assessing the need for overtime for resources assigned to an activity that is not projecting a completion prior to the early finish depicted in the current schedule.
You and Rita review the current schedule to identify which activities are on the critical path and which activities have plenty of float. The review reveals several activities have suffered less than planned productivity and have contributed to falling behind. In the process of this review, you and Rita also review the budget for Project JP-114 and notice not only the schedule has fallen behind but the cost to date is more than she had expected. To total budget is $150,000, planned to date is $30,000; expended to date is $37,000.
With nine months remaining until baseline contract completion, Rita needs to bring Project JP-114 back on track; knowing overtime for an extended period of time is not always the right answer, especially with the cost to date already over planned.
In order to truly understand the options available to help remedy the current situation, you and Rita brainstorm on several potential courses of action. All the potential courses of action will require an evaluation of budget impact versus schedule correction.
1. Pull the project team together and ensure everyone understands which activities are on the critical path. Rita would like to use the existing project team and focus them on these critical path activities, laying out a plan for periodic overtime when needed to crunch through a deliverable. This approach could add approximately 20% to the budget.
2. Outsource various modules of activities to qualified and known consultants. This could drive up the costs and must be evaluated before implemented. Having an outside source working in parallel with the project team could also accelerate the schedule to mitigate some of the delays, as well as keep overtime down to a minimum for the project team. Potentially this could add as much as 40% to the budget, but could also be very productive schedule wise.
3. Mandatory overtime for the project team - entire project goes on a 50-hour work week. If the entire project team works overtime for an extended period of time, the budget could see an additional 60% increase.
4. The project continues as is completes the project late and accepts the penalties imposed. Penalties imposed for late delivery could add as much as 50% to the budget.
Assignment
Draft a proper memorandum to Desmond Raybum, IS Director, explaining in your own words:
a) the current problem and potential impact(s);
b) each course of action, stating advantages and disadvantages as appropriate;
c) your recommendations, properly supported.
Please be sure to include the rationale for your recommendations. Be sure to summarize your thoughts and address (To, From, Date, and Subject/Project Name) and close the memo appropriately. If you are uncomfortable with the courses of action noted, provide your own with appropriate substantiation for your position. Limit your answer to one, full typewritten page (roughly three handwritten pages).
While your email can be a detailed as you like, be sure to write sufficiently to address each element of the assignment, yet not so long that you go beyond the scope of the exercise.
Take time to read the problem and consider what you want Evan to say. Good luck!

  1. See Explanation section for answer.

Answer(s): A

Explanation:

To: Desmond Rayburn, Director of Information Services From: Evan Marshal, Corporate Scheduler Date: [Insert Current Date] Subject: Mitigation Plan for Project JP-114 Delays
Current Problem and Potential Impacts
Project JP-114 has experienced schedule delays and cost overruns. The project has expended $37,000 against a planned budget of $30,000 to date, exceeding the planned budget by 23%. Additionally, productivity issues have impacted critical path activities, further delaying progress. With nine months remaining, failing to address these issues could result in penalties, further cost increases, and client dissatisfaction.
Courses of Action
Focus Existing Team on Critical Path with Periodic Overtime
Advantages: Uses team familiarity; incurs a moderate budget increase (20%).
Disadvantages: Risks resource strain and potential burnout if overtime is prolonged.
Outsource Work to Consultants
Advantages: Accelerates schedule by parallel work streams; minimizes internal team overtime.
Disadvantages: Higher budget impact (up to 40%); requires effective integration of external deliverables.
Mandatory Overtime (50-Hour Work Week)
Advantages: Ensures rapid progress across the project.
Disadvantages: Extremely high cost (60% increase); risks significant employee fatigue and declining morale.
Continue as Is and Accept Late Delivery Penalties
Advantages: No immediate resource strain.
Disadvantages: Significant penalties (50% budget increase); damages stakeholder confidence and corporate reputation.
Recommendation
I recommend Option 1, combined with selective outsourcing (Option 2), to achieve the best balance of cost control and schedule recovery.
Focus the internal team on critical path activities with targeted use of periodic overtime. This ensures efficient allocation of resources and minimizes strain while addressing the most urgent delays.
Outsource select non-critical tasks to experienced consultants. This parallel effort reduces the workload on the internal team, limits overtime, and accelerates overall progress.
Rationale: This hybrid approach keeps the budget increase to approximately 30–35% while effectively addressing schedule delays. It balances cost efficiency, resource management, and stakeholder satisfaction. Proper coordination will ensure smooth integration between internal and external teams.
Conclusion
This plan provides the most feasible path to bringing Project JP-114 back on track. It mitigates risks of extended delays while maintaining budget discipline. I am available for further discussions to outline a detailed implementation plan.
Best Regards, Evan Marshal Corporate Scheduler



Scenario:
The entire network consists of the following activities and relationships. Activity A is twenty days long and is tied to Activity B, a ten-day activity, with a finish-to-finish tie with a lag value of five Activity B is tied to Activity C, a twenty-day activity, with a start-to-start relationship with a lag value of five.


PSP Activities Table
Scope Known about Rock-Filled Dam Project:
The dam requires river diversion and work over two or more rainy seasons. The contract is lump sum, competitively bid, and will be self-performed. The owner has attempted to shift all risk to the contractor by employing "no differing sit conditions" and "no damage for delay" clauses. There is a bonus/penalty provision of $2,500 per calendar day for early or late delivery. The early completion bonus is capped at $500,000, with no cap for late delivery penalty.
Liquidated damages end at the finish of demobilization. Indirect costs per calendar day are $2,800 for the "normal" schedule and $3,200 for the "crashed" schedule. The winter/wet weather season is 151 days between October 15 and March 25 of each year, reduces the efficiency of the contractor's operations by 20% and costs the contractor $10,000 per day. Assume a start date of March 5, 2001 and use a 7-day work week.
The following table lists work activities as planned by the contractor.

Theoretically construct a summary activity for only those activities with a finish-to-start relationship for Activities 8001 through 10001. Using the "normal" schedule, what is the cost of this hammock?

  1. $420,000.
  2. $307,000.
  3. $524,000.
  4. $552,000.

Answer(s): C



Using the "normal" schedule, if you start Activity 7001 on April 1, 2002, and using a 5-day workweek, what the finish date for Activity 7001?

  1. 06-11-02.
  2. 06-04-02.
  3. 06-18-02.
  4. 06-05-02.

Answer(s): D

Explanation:

Given Data
Start Date: April 1, 2002.
Duration of Activity 7001 (Normal Schedule): 48 days.
Workweek: 5-day workweek (Monday to Friday).
No holidays are mentioned in the problem.
Step 1: Calculate Total Working Days
Using a 5-day workweek:
Determine the number of full weeks in 48 days: 48÷5=9 weekswith3additionalworkdays.48 \div 5 = 9 \, \text{weeks with 3 additional workdays.}48÷5=9weekswith3additionalworkdays.
Total work period = 9 weeks + 3 workdays = 45 weekdays.
Step 2: Calculate Calendar End Date
Starting from April 1, 2002 (Monday):
Add 9 full weeks: April 1 + 9 weeks = May 31, 2002 (Friday).
Add the remaining 3 workdays:
Monday, June 3.
Tuesday, June 4.
Wednesday, June 5, 2002.
Step 3: Validate Answer
The finish date for Activity 7001 is June 5, 2002.



Using the "crashed" schedule, if you start Activity 2002 on August 12, 2001, what is the finish date for Activity 2002?

  1. 09-28-01.
  2. 09-08-01.
  3. 09-15-01.
  4. 09-18-01.

Answer(s): B

Explanation:

Activity Duration in Crashed Schedule:
For Activity 2002, the crashed duration is 28 days (refer to the table).
Start Date:
The start date is August 12, 2001.
Adding the Duration:
Starting from August 12, add 28 days. Ensure to account for weekends or holidays if the calendar used excludes them.
Finish Date Calculation:
Starting on August 12 and counting 28 days gives the finish date as September 8, 2001.



In the "normal" schedule, excluding Activity 1000, what activity(s) are concurrent with Activity 3001?

  1. 2003 and 7001.
  2. 2004.
  3. 4001, 5001 and 6001.
  4. 4001 and 5001.

Answer(s): D

Explanation:

Activity Overview and Dependencies:
From the provided schedule data, Activity 3001 (Excavation, Dam Site) starts with multiple logical relationships:
Successor activities include SS (Start-to-Start) and FS (Finish-to-Start) dependencies with other tasks.
Specifically, these relationships link 3001 to 4001 (Excavation, Spillway) and 5001 (Drill and Grout, Dam Site).
Normal Schedule Context:
Excluding Activity 1000, we focus on Activity 3001's logical relationships to determine which activities are concurrent.
In the "Normal Schedule", Activity 3001 has a duration of 152 days and overlaps with Activities 4001 (152 days) and 5001 (102 days). Both activities share similar dependencies and durations with Activity 3001, making them concurrent.
Schedule Dependency Analysis:
Concurrent activities are identified by overlapping durations and logical relationships that align their schedules.
Activity 4001 is linked via SS and FF dependencies, ensuring simultaneous start and finish points.
Activity 5001 starts as 3001 progresses (SS and FS dependencies).
Final Answer Validation:
Other listed activities, such as 2003 and 7001 (Answer A) or 2004 (Answer B), are not logically or temporally concurrent based on their dependencies and durations.
Only 4001 and 5001 have concurrent schedules aligning with Activity 3001.
Study Guide Reference:
Planning and Scheduling Professional Certification Study Guide, Chapter 2 – Scheduling, sections on "Dependencies and Constraints" (p. 157) and "Sequencing Activities" (p. 151).
For further insights into identifying concurrency using logical relationships, refer to AACE's Recommended Practice 10S-90: Cost Engineering Terminology.
This structured approach ensures alignment with PSP standards and principles in evaluating concurrent activities in complex schedules.



Using the "normal" schedule, given Activity 3001 and the relationship with Activity 4001, what is indicated?

  1. These activities are concurrent with Activity 4001 starting 15 days after the start of Activity 3001.
  2. These activities are concurrent with Activity 4001 starting 15 days earlier than the start of Activity 3001.
  3. The activities occur in series with a 15-day lag.
  4. The activities run concurrently.

Answer(s): A

Explanation:

Analyze the Relationship Details: The table shows that Activity 3001 ("Excavation, Dam Site") and Activity 4001 ("Excavation, Spillway") have a Start-to-Start (SS) relationship with a lag of 15 days. A Start-to-Start relationship indicates that the successor activity (4001) can only start after a specified lag period once the predecessor activity (3001) begins.
Understand the Concept of Lag: In scheduling terminology, lag refers to a delay or waiting period between the start (or finish) of one activity and the start (or finish) of a dependent activity. Here, the 15-day lag means that Activity 4001 will commence 15 days after Activity 3001 has started.
Interpret the Relationship: The SS relationship combined with a lag indicates that the two activities (3001 and 4001) are not starting exactly at the same time but are still overlapping or concurrent. This concurrency happens after the lag period elapses.
Verify PSP Study Guide and Relevant Terminology: According to AACE International’s Recommended Practices and the PSP Certification Study Guide:
Start-to-Start relationships are widely used to model overlapping work in schedules where one activity can start before its predecessor is fully complete (PSP Study Guide, Chapter on Scheduling Relationships and Constraints).
Lags provide flexibility to model realistic conditions where tasks start partially overlapping or with delays (PSP Study Guide, Section 2.2.4 Relationships).
Cross-Check the Answer Options:
Option A (Correct): Matches the described logic – "These activities are concurrent with Activity 4001 starting 15 days after the start of Activity 3001."
Option B: Incorrect – Lag is applied to the successor activity, meaning 4001 cannot start earlier than 3001.
Option C: Incorrect – This relationship (SS with a lag) indicates concurrency, not series.
Option D: Incorrect – Though concurrent, the lag makes the start times offset by 15 days, so they do not start at the same time.


Reference:

PSP Study Guide (2019), Chapter 2A – Schedule Development, Section 2.2.4 – Relationships.
AACE International Recommended Practices, RP 10S-90, "Cost Engineering Terminology."
Total Cost Management Framework, Concepts of Activity Relationships and Scheduling Dependencies.



If the administrative constraints for developing the precedence diagram, as provided in the contract documents, indicate that no individual construction activities shall have a longer duration of two months, how many activities in the "normal" schedule would be affected?

  1. 12.
  2. 14.
  3. 13.
  4. Cannot be determined.

Answer(s): A

Explanation:

To determine how many activities in the "normal" schedule would be affected by the constraint of no activity exceeding a two-month duration (approximately 60 days):
Review the "Normal Schedule Days" Column: Look for activities with a duration greater than 60 days in the "Normal Schedule Days" column of the table provided in the image.
Count the Affected Activities: Count all activities where the "Normal Schedule Days" value exceeds 60.
Activities with durations greater than 60 days:
Activity ID 1000: 1072 days
Activity ID 1001: 85 days
Activity ID 2001: 92 days
Activity ID 3001: 152 days
Activity ID 4001: 152 days
Activity ID 5001: 102 days
Activity ID 6001: 140 days
Activity ID 6002: 115 days
Activity ID 6003: 152 days
Activity ID 9001: 175 days
Activity ID 9002: 180 days
Activity ID 9005: 72 days
Total Count:
There are 12 activities in the "normal" schedule exceeding the 60-day duration constraint.
Verified Answer:
A . 12.
Detailed Explanation with Reference:
The constraint specifies that no activity should exceed a two-month (60-day) duration. By examining the "Normal Schedule Days" column, any activity with a duration greater than 60 days is non-compliant and therefore affected. The PSP study guide emphasizes reviewing contract requirements to ensure schedules adhere to such administrative constraints.



Midway through the project you received an executed change order for this project, adding thirty-three days to the contract for weather delays. In its simplest form, how would your next project update display the changed condition?

  1. After Activity 1000, add a new Activity 1050 with a start-to-start relationship to Activity 1000, and tie the end of this new activity with a finish-to-finish relationship to the final activity of the project.
  2. After Activity 1000, add a new Activity 1010 with a finish-to-start relationship to Activity 1000, and tie the end of this new activity with a finish-to-start relationship to the final activity of the project.
  3. After Activity 1001, add a new Activity 1011 with a finish-to-start relationship to Activity 1000, and tie the end of this new activity with a finish-to-start relationship to the final activity of the project.

Answer(s): A

Explanation:

Scenario Overview: A change order has been approved, adding 33 days for weather delays. This requires updating the schedule to reflect the extended contract duration.
Impact on Scheduling:
The simplest and cleanest way to include the change is to create a new activity that represents the delay (e.g., Activity 1050).
The new activity is linked to Activity 1000 using a start-to-start (SS) relationship. This ensures the delay begins in parallel with the original contract start.
The finish-to-finish (FF) relationship with the final activity ensures that the extended duration impacts the project's overall timeline.
Cross-Verification with PSP Principles: PSP principles emphasize the importance of maintaining logical integrity and clarity when updating schedules for change orders (Ref: PSP Study Guide, Chapter 2B: Schedule Maintenance/Controlling). This method ensures traceability of the delay without affecting activity logic unnecessarily.



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