Marty is the project manager of the recently completed NHK Project. The project was
deemed successful by the project customer and they have signed the formal acceptance documentation. Marty has written the final project report, released the project team, and completed the lessons learned documentation. What else should Marty do in the closure of the NHK Project?
Correct Answer:A
The last duty of a project manager is to archive the project records as part of the organizational process assets.
Answer option B is incorrect. The cost summary is included in the final project report. Answer option C is incorrect. The project variance is included in the final project report as it shows cost performance.
Answer option D is incorrect. A project office is an organization within the company that oversees and supports project. Marty would not close the project office.
You are the project manager of the NHQ project. This project is slightly larger than the TR project, in which you also served as the project manager. You decide to use the actual activity duration of the GTR project as a basis for your current NHQ project. This, you reason, will save time for your project, as the previous project has provided the information. Which one of the following terms best describes the action you are doing in this scenario?
Correct Answer:A
This is an example of analogous estimate as you are creating an analogy between two similar projects. This estimating approach is also known as a top-down estimate type, and is somewhat unreliable.
Answer option C is incorrect. Expert judgment relies on experts, consultants, or subject matter experts to guide your project decisions. An analogous estimate is a form of expert judgment, but this is not the best choice for this question.
Answer option B is incorrect. A bottom-up estimate creates an activity duration estimate for each work package in the WBS. It is the longest estimate type to create, but it also the most reliable.
Answer option D is incorrect. A rough order of magnitude estimate is a quick estimate, usually for project costs, that often has a broad range of variance attached to the estimate.
Which of the following techniques is used in businesses to determine the effect different costs or investments have on profit and other financial indicators?
Correct Answer:C
What-if scenario analysis explains the analysis of the question "What if the situation represented by scenario 'X' happens?". This What-If Scenario Analysis shortly named as WISA. A schedule network analysis is performed using the schedule to compute the different scenarios, such as extending specific engineering durations, or delaying a major component delivery. Businesses use what-if scenarios to determine the effect different costs or investments have on profit and other financial indicators.
Answer option A is incorrect. The schedule analysis is the review of the schedule, but does not examine other possibilities for completing the project work.
Answer option D is incorrect. The root cause analysis helps to determine the reasons why the project is running late.
Answer option B is incorrect. The resource leveling causes the project's duration to increase. It is a technique that resolves resource conflicts by delaying tasks within their slack allowances. The resource leveling is the process in which project teams come across problems when developing their project schedules.
Amy works as a project manager for BlueWell 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?
Correct Answer:B
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
= 1.1378
EAC = BAC/ CPI
= 2,816,000/1.1378
= 2,474,952 (Approx) ETC = EAC - AC
= 2,474,952 - 495,000
= 1,979,952
Answer 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.
You are the project manager of the JKM Project for your organization. Your project is supposed to be 60 percent complete but you are only 45 percent complete. The project has an assigned budget of $765,000 but you have already spent $365,000 to reach this point in the project due to some errors and rework. Management is pressing you on when you'll complete the project and how much the project will likely cost based on the current performance. You need to tell management what the project's current cost performance index (CPI) is. What value should you report to management based on your project's performance?
Correct Answer:B
Management wants to know the cost performance index (CPI). You can find the CPI by first finding the earned value (EV) and then dividing it by the actual costs (AC) spent to date on the project. You find EV by multiplying percent complete by the project's budget; in this instance that's $344,250. The actual costs are reported as $365,000. The formula for the CPI on this project is $344,250 / $365,000 for a value of .94. What is CPI? 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. 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.
Answer options C, A, and D are incorrect. These do not reflect an accurate value for the project's cost performance index. The project is performing moderately well on cost as the closer the CPI is to 1 the better the project's performance.