Terri is the project manager for her organization and she is working with her project team to develop the project schedule. She has identified the float in her project although some of the activities where float exists may be susceptible to risk in the project execution. She is also concerned that the critical path may change during the project if the risk events come into execution. What scheduling method is Terri using in this example?
Answer(s): D
Terri is using the critical path method in this example. The question acknowledges that Terri has identified float and the critical path, but it makes no mention of the availability of project resources - something the critical chain method focuses on.Critical Path Method, abbreviated CPM, or Critical Path Analysis, is a mathematically based algorithm for scheduling a set of project activities. It is an important tool for effective project management. It provides the following benefits:Provides the graphical view of the project.Predicts the time required to complete the project.Shows which activities are critical to maintain the schedule and which are not. CPM models the activities and events of a project as a network. Activities are depicted as nodes on the network, and events that signify the beginning or ending of activities are depicted as arcs or lines between the nodes. Answer option A is incorrect. The question does not indicate that Terri is concerned with the availability of project resources - as she would be if she were using the critical chain method.Answer option B is incorrect. The risk analysis method is not a valid scheduling technique. Answer option C is incorrect. Activity on the arrow method is not being described in this question.
You work as a Project Manager for Tech Perfect Inc. You are looking for performance efficiencies of a project. The related key values are provided in the table below:What will be the cost variance (CV) of the project at the current point of time?
Answer(s): B
According to the question, you are required to calculate the cost performance index (CPI) of the project. Cost variance (CV) is a measure ofcost performance on a project. The variance notifies if costs are higher than budgeted or lower than budgeted. The cost variance is calculatedbased 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 plannedfor the project.Now, putting the provided values in the formula:CV = EV - AC= 320 - 400= -80As the value of CV (which is -80) is negative, it shows that the costs are higher than that have been planned for the project.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 amountfor 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 workto 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 accomplishingwork performed during a given time period for a schedule activity. It is the cost of the work to date, including direct andindirect costs. AC is money that has actually been expended to date.
Amy works as a project manager for Blue Well Inc. She is working on the SDI project, which has a BAC of $2,816,000. She is currently 20 percent complete with this project, though she should be 25 percent complete with the project work. The project has consumed $495,000 of the project budget to date. Management has asked her the project's Estimate To Complete (ETC) based on the current project performance. What is the ETC for this project?
The estimate to complete is about knowing how much more money the project will need to complete its objectives.The estimate to complete (ETC) is the expected cost needed to complete all the remaining work for a scheduled activity, a group of activities,or the project. ETC helps project managers predict what the final cost of the project will be upon completion. The formula for the ETC is EAC-AC. The EAC is BAC/CPI. Here it is,CPI = EV/AC= (0.20*2,816,000)/495,000= 563200/495,000= 1.1378EAC = BAC/ CPI= 2,816,000/1.1378= 2,474,952 (Approx)ETC = EAC - AC= 2,474,952 - 495,000= 1,979,952Answer options C and A are incorrect. These are not the valid answers for this question. Answer option D is incorrect. This is the estimate at completion based on the current project performance.
Harry works as a project manager for BlueWell Inc. A risk that has been identified and analyzed in the project planning processes is now coming into fruition. Who among the following is responsible for implementing the risk responses or contingency plan?
Answer(s): A
The risk owner is the individual on the project team that is closest to the risk event. The risk owner can be an individual or an organizationresponsible for implementing risk responses or contingency plan. The risk owner should be empowered with the ability to respond to the riskas it was planned.Answer option B is incorrect. Harry is the project manager and likely would not be the risk owner aswell.Answer option C is incorrect. The project sponsor authorizes the project but does not participate in execution of the project.Answer option D is incorrect. While a subject matter expert may be the risk owner on some occasions, he would not be the risk owner onevery occasion.
Donna is the project manager of the QSD Project and she believes Risk Event D in the following figure is likely to happen.If this event does happen, how much will Donna have left in the risk contingency reserve if none of the other risk events have happened?
Answer(s): C
To answer this question, you'll first need to calculate the contingency reserve. Contingency reserves are estimated costs to be used at thediscretion of the project manager to deal with anticipated, but not certain, events. These events are "known unknowns" and are part of theproject scope and cost baselines. The contingency reserve is calculated by multiplying the probability and the impact for the risk event valuefor each risk event. The sum of the risk events equals the contingency reserve for the project. The sum of the risk events equals thecontingency reserve for the project. In this question, the value is $41,700. If Risk D happens, it'll cost the project $35,000. The difference of$35,000 and $41,700 is $6,700.Answer option A is incorrect. This is the impact of Risk Event D. Answer option D is incorrect. $14,000 is the risk event value of Risk Event D. Answer option B is incorrect. $41,700 is the amount of the contingency reserve.
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