QUESTION: 185

You are the project manager for the GHB Organization. Management has asked that you review your recent SPI to determine why there was a schedule variance. They'd also like you to explain what approach you'll do to counteract the SPI going forward in the project. You complete the variance analysis and report to management that you'll be fast tracking a portion of your project work.
What will be the management's concern with, when it comes to fast tracking the project?

Added costs for the additional project labor
Added risk
Continued variances in the SPI
Slippage in the project quality

Answer(s): B

Explanation:

When the project manager elects to use fast tracking the project manager is allowing phases of the project to overlap.
When phases overlap there is added risk to the project.
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 C is incorrect. Management's greatest concern is about the added risks of fast tracking and not about the SPI.

Answer option A is incorrect. Costs are added when the project manager elects to crash a project.
Answer option D is incorrect. Quality may suffer, but the most prominent concern is the added risks to the project work.

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QUESTION: 186

Donna's project has a budget at completion of $1,987,560 and she is currently 40 percent complete. Her project schedule called for her to be 45 percent complete but there have been some complications in the project. These complications have caused Donna to spend $125,000 more than what the work she has completed is worth. Based on this information what is the cost performance index (CPI) for Donna's project?

86
$920,024
.90
.86

Answer(s): D

Explanation:

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. In this instance, the actual costs are $125,000 more than what the work is worth, which means you'll need to find the earned value, $795,024 and add $125,000 to find the actual costs of the project, which are $920,024.

Answer option A is incorrect. This is a trick as 86 is not the same value as .86. On your PMP exam pay attention to these little details.

Answer option C is incorrect. .90 is slightly more than the Schedule Performance Index of this project.

Answer option B is incorrect. This value represents the actual cost of the project.

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QUESTION: 187

Fill in the blank with an appropriate phrase.

The ________is defined in terms of either the product or the type of customer or industry sector.

Application area

Answer(s): A

Explanation:

The application areais defined as a type of project tha comprises common components important in such projects, but are not required or present in all projects. The application area is defined in terms of either the product or the type of customer or industry sector.

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QUESTION: 188

You are the project manager for your organization. Your project is doing fine on time and cost, but management wants to address the project performance for future accomplishment. Management has asked you to begin reporting and forecasting your project's health based on a moving average, extrapolation, trend estimation, and growth curve.
What type of forecasting method is management asking you to use?

Judgmental methods
Causal/econometric methods
Time series methods
Estimate at completion method

Answer(s): C

Explanation:

These are examples of a time series method for forecasting project performance. Another method that fits with the time series method of forecasting is earned value management.
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.

Answer option B is incorrect. Causal/econometric methods do not use the moving average, but models such as linear regression and non-
linear regression.

Answer option A is incorrect. Judgmental methods for forecasting are based on intuition, opinions, and probability estimates.

Answer option D is incorrect. The estimate at completion method is an earned value management formula, which is part of the time series method for reporting and forecasting performance.

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QUESTION: 185

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QUESTION: 187

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QUESTION: 188

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