John works as a Project Manager for Blue Well Inc. He is measuring cost efficiency of his project. The key values are provided in the table below:
What is the cost performance index (CPI) of the project at the current point of time?
Correct Answer:C
According to the question, you are required to calculate the cost performance index (CPI) of the 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. Here, CPI is as follows: CPI = EV / AV = 425/510 = 0.833 As the CPI (0.833) is less than 1, it shows that the schedule performance is below expectation. 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 for your organization. You are discussing an upcoming project with management and they would like you to begin decomposing the project work packages into activities as soon as possible. You have explained to the management that you would like to involve your roject team before the decomposition of the work packages begins. Why would you want your project team to involve in this activity?
Correct Answer:C
Involving the project team is needed as part of the work package decomposition to get better and more accurate results. The project team comprises the people completing the work and often the experts that can direct the discussion and decomposition efforts. The decomposition technique is used to further divide all project deliverables into smaller component activities. Activities correspond to the effort required to complete a work package. Each and every work package in the WBS is decomposed into the activities needed to create the work package deliverables. Involving team members in the decomposition technique results in better and more precise outcomes.
Answer option B is incorrect. While the team may help the activity decomposition go faster, this is not the best choice for this question.
Answer option A is incorrect. Through the decomposition process, the project manager will learn about the project work, but this is not the primary reason to involve the project team. Answer option D is incorrect. It is possible to create assignments while completing the activity list, but usually all of the activities are defined and sequenced, and then resources are assigned to manage availability and utilization.
Lara has been assigned to a construction project. The project includes constructing a residential building with fifty flats. On which of the following events will the project be considered successful?
Correct Answer:A
A project is considered successfully completed when the stakeholder needs and expectations are met or exceeded. What is a project? In project management a project consists of a temporary endeavor undertaken to create a unique product, service or result. An other definition is a management environment that is created for the purpose of delivering one or more business products according to a specified business case. Project have the following characteristics: They are unique. They are temporary in nature and have a definite beginning and ending date. They are completed when the project goals are achieved. Their success is measured by evaluating whether they meet or exceed expectations of the stakeholders. Project objectives define target status at the end of the project, reaching of which is considered necessary for the achievement of planned benefits. A project should be specific, measurable achievement, achievable, realistic, time bounded, ethical and recorded. The evaluation (measurement) occurs at the project closure. However a continuous guard on the project progress should be kept by monitoring and evaluating. Who are project stakeholders? Project stakeholders are those entities within or without an organization, which: Sponsor a project or, Have an interest or a gain upon a successful completion of a project. Examples of project stakeholders include the customer, the user group, the project manager, the development team, the testers, etc. Stakeholders are anyone who has an interest in the project. Project stakeholders are individuals and organizations that are actively involved in the project, or whose interests may be affected as a result of project execution or project completion. They may also exert influence over the project's objectives and outcomes. The project management team must identify the stakeholders, determine their requirements and expectations, and, to the extent possible, manage their influence in relation to the requirements to ensure a successful project. Answer options D, C, and B are incorrect. These events are not the measurement of the project's success.
You are the project manager of the GHY project. Your project has a BAC of $675,000 and is forty percent complete though you were supposed to be forty-five percent complete. Due to some errors early in the project, you had to spend $278,000 of your project's budget to reach this point. Management is asking for a variance report. What part of your project has the largest variance?
Correct Answer:B
Your schedule variance is -$33,750. You can find this by using the formula earned value- minus planned.
Answer option C is incorrect. Cost is not the largest variance in the project.
Answer option A is incorrect. Cost is not the largest variance in the project (it is -$8,000). Answer option D is incorrect. -$20,000 is the variance at completion for the project.
You are the project manager for GGY Project. You are working with your project team to record the actual durations for the activities they have completed in the project schedule. Mary, one of your project team members, wants to know why you need to know how long it actually took the project team to complete their assignments as long as the project work is completed. Which of the following is the best response for Mary's query?
Correct Answer:C
The best answer is to track actual durations to measure the actual progress of the project. Actual duration is the time, in the calendar units, between the actual start date of the schedule activity and either the data date of the project schedule if the schedule activity is in development or the actual finish date if the schedule activity is complete.
Answer option B is incorrect. The schedule baseline is not created based on actual durations.
Answer option A is incorrect. Process improvement is part of the quality management knowledge area, but it is not a reason to track actual durations.
Answer option D is incorrect. Quality control is the inspection of the project deliverables. It is not concerned with the actual durations of project work. The improvement of the project processes is defined in the Process Improvement Plan.