You work as a Project Manager for Dreams Unlimited Inc. You are looking for performance efficiencies of a project. The related key values are provided in the table below:MeasurementsValuesBCWP (or EV)325BCWS (or PV) 300ACWP (or AC)410What is the schedule variance (SV) of the project at the current point of time?
Answer(s): D
According to the question, you are required to find out the schedule variance (SV) of the project. 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. Now, putting the provided values on the formula: SV = EV - PV = 325 - 300 = 25 As the value of SV (which is 25) is a positive number, it means that the project is ahead of the planned schedule. What is BCWP (or EV)? Budgeted cost of work performed (BCWP) or Earned Value (EV) is the value of completed work. It is the budgeted amount for the work actually completed on the schedule activity during a given time period. What is BCWS (or PV)? Budgeted Cost of Work Scheduled (BCWS) or Planned Value (PV) is the authorized budget assigned to the scheduled work to be accomplished for a schedule activity or Work Breakdown Structure (WBS) component. What is ACWP (or AC)? Actual cost of work performed (ACWP) or Actual Cost (AC) is the total costs actually incurred and recorded in accomplishing work performed during a given time period for a schedule activity. It is the cost of the work to date, including direct and indirect costs. AC is money that has actually been expended to date.
You are the project manager of the NHQ project. You are working with your project team to create the project schedule and the project network diagram. In order to start the sequencing of the project activities, you will need a document to identify the result of project phases, key project deliverables, and significant, timeless events in the project. Which of the following documents will you need to help sequence the project work?
The milestone list is needed as an input to the sequence activities process. Milestones are timeless events in the project schedule that are generally created as a result of phase completion.What is a milestone list?A milestone list provides a sequence of indicators about project progress to date and achievements or goals, which are to be achieved. The milestone list is used in project management as an indication of progress through the achievement of a major project accomplishment. It is a project document that is not part of the project management plan. The list contains all the project milestones along with information indicating whether they are mandatory to achieve or not. Answer option B is incorrect. While the activity list is an input to activity sequencing, it is not a document that shows timeless events or the results of activity phases. Answer option A is incorrect. Activity attributes describe the work, nature of the activity, and required resources for the activity.Answer option C is incorrect. The project scope statement is an input to the activity sequence, but it does not define the end result of activity phases.
You work as a project manager for BlueWell Inc. Management has asked you to communicate with them whenever your project is about to reach a milestone so that they can review your project performance to date. Where can you find a list of the project milestones to anticipate management's request?
Answer(s): B
The milestone list is the best answer.A milestone list provides a sequence of indicators about project progress to date and achievements or goals, which are to be achieved. Themilestone list is used in project management as an indication of progress through the achievement of a major project accomplishment. It is aproject document that is not part of the project management plan. The list contains all the project milestones along with information indicatingwhether they are mandatory to achieve or not.Answer option A is incorrect. The scope baseline is a collection of the project scope, the WBS, and the WBS dictionary.Answer option D is incorrect. The project schedule management plan is not the best answer, as the milestone list is the most direct result.Answer option C is incorrect. The project charter is not the best answer for identifying the milestones.
Beth works as a project manager for BlueWell Inc. Which of the following tools and techniques of Administer Procurements process will Beth use to manage contracts, and procurement documentation and records?
Answer(s): A
A records management system is used to manage contract, and procurement documentation and records by the project managers. It includes specific set of processes, related control functions, and automation tools that are merged as part of the project management information system. Answer option D is incorrect. Payment system determines the payments to the seller, which is processed by the account payable system ofthe buyer after certification of satisfactory work by the authorized person on the project team. Answer option C is incorrect. Inspection and audits are required by the buyer and supported by the seller as mentioned in the procurementcontract during execution of the project to verify the compliance in the seller's work processes or deliverables.Answer option B is incorrect. Performance reporting offers the management with the information about how effectively the seller is achievingthe contractual objectives.
Billy is the project manager of the PQW Project and she has an assigned project budget of $655,000. Currently she is 80 percent complete with the project though she was scheduled to be 90 percent done by this date. She has spent $490,000 to date. What should Billy report as her cost performance index (CPI)for this project?
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 earned value is $524,000 and the actual costs are $490,000. In this project Billy has spent less than what the work is worth - a good thing.This could be because of a cost savings,such as travel or shipping, or because a risk event didn't come into play. This causes the positive CPI - something which does not happen very often.Answer option A is incorrect. .07 is an incorrect calculation for the cost performance index for the project. Answer option D is incorrect. .89 represents the schedule performance index. Answer option C is incorrect. $34,000 is the cost variance of the project.
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