Amy is working on a project which is forty percent complete though it was scheduled to be fifty percent complete as of today. Management has asked Amy to report on the schedule variance for her project. If Amy's project has a BAC of $750,000 and she has spent $485,000 to date, what is the schedule variance value?
Answer(s): A
The schedule variance is found by subtracting the planned value from the earned value. The earned value is the percentage of the project completeness multiplied by the BAC. Planned value is the percetage of where the project should be at this time multiplied by the BAC. Schedule variance (SV) is a measure of schedule performance on a project. The variance notifies that the schedule is ahead or behind what was planned for this period in time. The schedule variance is calculated based on the following formula: SV = Earned Value (EV) - Planned Value (PV) If the resulting schedule is negative, it indicates that the project is behind schedule. A value greater than 0 shows that the project is ahead of the planned schedule. A value of 0 indicates that the project is right on target. In this example, EV = 40% of BAC = 300,000, and PV = 50% of BAC = 375,000 SV = 300,000 - 375,000 = -75,000 Answer options C, B, and D are incorrect. These are not the correct values for the schedule variance.
You are the project manager of the GHE Project. You have identified the following risks with the characteristics as shown in the following figure: How much capital should the project set aside for the risk contingency reserve?
Answer(s): D
Contingency reserves are estimated costs to be used at the discretion of the project manager to deal with anticipated, but not certain, events. These events are "known unknowns" and are part of the project scope and cost baselines. The contingency reserve is calculated by multiplying the probability and the impact for the risk event value for each risk event. The sum of the risk events equals the contingency reserve for the project. Note that Risk D is a positive risk amount. Answer option C is incorrect. This value is the sum of the risk events if you did not include Risk D as a positive risk value. Answer option A is incorrect. This is a sum of the risk event. Answer option B is incorrect. This is a sum of the risk events without including Risk D as a positive risk event.
Mary is the project manager for her company. She's working with the project team to compress the project schedule as the project must be completed by December 30. For some of the project activities, she and the project team have agreed to crash the project work. What must be true of these project activities for crashing to be acceptable?
Answer(s): B
Crashing is the addition of project resources to complete effort-driven activities in faster time. By adding more labor the activity can be completed faster.Crashing is a schedule compression technique to obtain the greatest amount of compression for the least incremental cost. Crashing worksfor activities where additional resources will shorten the duration. Approving overtime, bringing in additional resources, paying to expeditedelivery to activities on the critical path are examples of crashing. Answer option A is incorrect. An activity of fixed duration, such as printing 100,000 brochures in a printing press, won't be completed faster byadding more effort.Answer option D is incorrect. Activities need not be risk-free to use project crashing. Answer option C is incorrect. All effort-driven activities are susceptible to the Law of Diminishing Returns. By adding more labor the value ofthe yield of the work decreases because of the cost of the labor added to the project work.
Gary is the project manager for his organization. At each weekly status meeting with his project team, Gary collects information on the work that has been completed and reviews the work that is remaining in the project. Alice, one of Gary's project team members, consistently reports that she's late on her project work. After the meeting, Gary and Alice discuss why the work is late as it is causing other delays in the project. What is the review of the late work commonly called?
Variance analysis is the study to determine why a variance in the project exists. Alice's late work may be for a number of reasons so Gary needs to determine why in order to address the problem. Variance analysis is a process that examines the dissimilarities between the planned and the actual budget or schedule in order to discover unacceptable risks to the budget, schedule, quality, or scope of the project. It is a method for resolving the total variance in the set of scope, schedule, and cost variables into particular component variances that are associated with defined factors affecting the cost, scope and schedule variables. Answer option D is incorrect. Discipline is not the best answer as Gary, at this point, is simply reviewing the situation to determine why the variance exists. Answer option C is incorrect. Quality control is the inspection of the work results to prove the existence of quality and to prevent mistakes from reaching the customer. Answer option B is incorrect. This may be a type of leadership, but it is not the best answer for the question.
You have a project to install 45,900 emergency exit signs throughout a university campus. You have a crew of 45 project team members to install the signs and they are making good progress on the installation but it looks like they'll miss the promised end date. Your project requires all of the signs to be installed one week before classes are scheduled to begin. You elect to crash the project in an effort to shorten the installation duration activity. What does it mean to crash the project?
Answer(s): C
Crashing adds more workers to the project team. Crashing allows the project to complete faster because there are more people helping with the project work. Answer option D is incorrect. Reducing the project scope is called descoping or project scope changes.Answer option A is incorrect. Crashing does not consider the working hours. Answer option B is incorrect. Resource leveling actually increases the project duration.
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