QUESTION: 141

You work as a project manager for Blue Well Inc. You are calculating the performance indexes of your project. The cost variance (CV) of your project is 30.
What does this figure depict?

Project is behind the schedule.
Costs are higher than planned.
Costs are right on target.
Costs are lower than planned.

Answer(s): D

Explanation:

According to the question, the cost variance of the project is 30, which is a positive figure. A positive value means that cost is less than planned.
What is CV?
Cost variance (CV) is a measure of cost performance on a project. The variance notifies if costs are higher than budgeted
or lower than budgeted. The cost variance is calculated based on the following formula:
CV = Earned Value (EV) - Actual Cost (AC)
A positive value means that spending is less than budgeted, whereas a negative value indicates that costs are higher than
originally planned for the project.

Answer option C is incorrect. If the CV is zero, it shows that cost is right on target.
Answer option A is incorrect. This result is depicted by viewing the schedule variance (SV), not the CV.

Answer option B is incorrect. If the CV is a negative value, it depicts that the costs are higher than planned.

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QUESTION: 142

You are the project manager for your organization. You are working with your project team to define the project network diagram. Several of the activities in the project schedule appear to have external constraints. Who among the following determines which dependencies are external to the project?

Project team
Project sponsor
Project manager
Project management team

Answer(s): D

Explanation:

The project management team defines which activities are external to the project. An external dependency is any nonproject activity that is external to the project but has a direct impact on the project activities. An external
dependency may be an inspector or any agency that may have to give prior approval before the project can move forward. These
dependencies are external to the organization and are determined by the project management team to find which dependencies are external
all through the process of sequencing the activities.

Answer option C is incorrect. The project manager may be part of the project management team, but this is not the best choice.

Answer option A is incorrect. The project team does not define this relationship.

Answer option B is incorrect. The project sponsor would not define the external dependencies.

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QUESTION: 143

You are the project manager of the GHQ Project. You have to prioritize activities for the effective management of project. For this, you have created a network diagram to schedule a set of project activities as shown in the figure:

Based on this figure, what is the critical path of this project?

ABEHJ
ACFIJ
ADGJ
ACFGJ

Answer(s): D

Explanation:

The activity nodes of path ACFGJ equals 26 days and is the longest path to completion - it is the critical path.
ACFGJ= A(4)+C(8)+F(4)+G(6)+J(4)=26
What is a critical path?
A critical path is the sequence of project activities, which add up to the longest overall duration. This

determines the
shortest time possible to complete the project. Any delay of an activity on the critical path directly impacts the planned
project completion date (i.e. there is no float on the critical path). A project can have several, parallel, near critical paths. An
additional parallel path through the network with the total durations shorter than the critical path is called a sub-critical or
non-critical path.
These results allow managers to prioritize activities for the effective management of project completion, and to shorten the

planned critical path of a project by pruning critical path activities, by "fast tracking" (i.e., performing more activities in
parallel), and/or by "crashing the critical path" (i.e., shortening the durations of critical path activities by adding resources).

Answer option A is incorrect. ABEHJ takes only 22 days to complete; it is not the critical path.
ABEHJ=A(4)+B(5)+E(2)+H(7)+J(4)=22

Answer option C is incorrect. ADGJ takes only 15 days to complete; it is not the critical path.
ADGJ=A(4)+D(1)+G(6)+J(4)=15

Answer option B is incorrect. ACFIJ takes only 23 days to complete; it is not the critical path.
ACFIJ=A(4)+C(8)+F(4)+I(3)+J(4)=23

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QUESTION: 144

You are the project manager for your organization. Management has offered you a bonus if you can complete the project work two months earlier than what your schedule predicts. You can use a schedule compression technique, but management does not want to increase costs in the project.
What approach would you recommend to condense the project duration?

Fast tracking
Crashing
Effort-driven activity analysis
Rewards and recognition for the project team

Answer(s): A

Explanation:

Of all the choices, only fast tracking is an option that would not increase project costs. Fast tracking allows phases of the project to overlap,
but it does increase project risks.
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.
Answer option B is incorrect. Crashing adds labor to the project and increases project costs.
Answer option C is incorrect. Effort-driven activity analysis examines activities whose duration may be reduced by adding labor. This approach,

however, increases project costs, as it is a form of project crashing.
Answer option D is incorrect. Rewards and recognitions are good incentives for the project team, but simply offering the reward does not
decrease the duration of the project.

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