Chapter 13 Quiz with Answers

Question 1 1 out of 1 points The earned value of a project is the Selected Answer: Answers: Percent of the original budget that has been earned by actual work. The planned time-phased baseline of the value of work scheduled. Total project cost to date. Project cost to date adjusted for project scope changes. Percent of the original budget that has been earned by actual work. Cost incurred minus the planned cost. Response Feedback: Earned value for a task is simply the percent complete multiplied by the original budget. Stated differently, EV is the percent of the original budget that has been earned by actual work completed. Question 2 1 out of 1 points The start of a task may be moved on a Tracking Gantt due to Selected Answer: Answers: A predecessor task starting late. Lack of an update Control Chart. A predecessor task starting late. Increase in Earned Value. Increase in Earned Value and Lack of an update Control Chart. Response Feedback: When a predecessor task starts late, any slack can be used up very quickly and could move the start of another task. Question 3 1 out of 1 points The first step in the project control process for measuring and evaluating project performance is to Selected Answer: Answers: Set a baseline plan. Analyze the project budget. Review the project priority matrix. Determine the project deliverables. Set a baseline plan. Determine the project objectives. Response Feedback: The project control steps for measuring and evaluating project performance are first to set a baseline plan, then to measure progress and performance, next to compare plan against actual and finally to take action. Question 4 1 out of 1 points A ________ Gantt chart is a simple and effective way to depict progress on a project. Selected Answer: Answers: Tracking Baseline Control Simple Variance Tracking Response Feedback: Gantt charts (bar charts) and control charts are the typical tools used for communicating project schedule status. The Gantt chart is the most favored, used and understandable. This kind of chart is commonly referred to as a tracking Gantt chart. Question 5 1 out of 1 points In monitoring project time (schedule) performance, actual performance should be compared to Selected Answer: Answers: Project network schedule derived from the WBS/OBS. Budgets for the current year. Previous status reports. Project network schedule derived from the WBS/OBS. Top management's targets. Progress on similar past projects. Response Feedback: A major goal of progress reporting is to catch any negative variances from plan as early as possible to determine if corrective action is necessary. Fortunately, monitoring schedule performance is relatively easy. The project network schedule, derived from the WBS/OBS, serves as the baseline to compare against actual performance. Question 6 1 out of 1 points The final step in the project control process for measuring and evaluating project performance is to Selected Answer: Answers: Take appropriate action. Prepare a report to top management. Take appropriate action. Measure progress and performance. Review spending with team members. Follow up on corrective action. Response Feedback: The project control steps for measuring and evaluating project performance are first to set a baseline plan, then to measure progress and performance, next to compare plan against actual and finally to take action. Question 7 1 out of 1 points The third step in the project control process for measuring and evaluating project performance is to Selected Answer: Answers: Compare the plan against actual performance. Review the baseline plan with top management. Review spending with team members. Measure both progress and performance. Analyze inputs to the control system. Compare the plan against actual performance. Response Feedback: The project control steps for measuring and evaluating project performance are first to set a baseline plan, then to measure progress and performance, next to compare plan against actual and finally to take action. Question 8 1 out of 1 points The cost variance for a project is calculated by Selected Answer: Answers: EV - AC. PV - EV. AC - SV. EV - PV. CV - EV. EV - AC. Response Feedback: The cost variance is the difference between the planned value of work actually done (EV) and the actual cost of work actually done (AC). The cost variance for a project is calculated EV - AC. Question 9 1 out of 1 points The earned value system starts with the time-phased costs that provide the project baseline, which is called the Selected Answer: Answers: Planned budgeted value of work scheduled. Scheduled value of work scheduled. Planned budgeted value of work scheduled. Scheduled value of work completed. Earned value of work scheduled. Planned budgeted value of work completed. Response Feedback: The earned value system starts with the time-phased costs that provide the project budget baseline, which is called the planned budgeted value of the work scheduled (PV). Given this time-phased baseline, comparisons are made with actual and planned schedule and costs using earned value. The earned value approach provides the missing links not found in conventional cost-budget systems. Question 10 1 out of 1 points Which of the following are required to assess the current status of a project using the earned-value cost/schedule system? Selected Answer: Answers: PV, EV, and AC BAC, EAC, and ETC PV, EV, and AC VAC, EAC, and BAC TCPI, EV, and PV CV, SV, and BAC Assessing the current status of a project using the earned value cost/schedule system requires three data elements-planned cost of the work scheduled (PV), budgeted cost of the work completed (EV), and actual cost of the work completed (AC). Question 11 Response Feedback: 1 out of 1 points Nancy tells her supervisor that as of right now, $1.05 worth of work has been accomplished for each $1 worth of scheduled work. Nancy got this information from viewing the Selected Answer: Answers: SPI. SV. TCPI. SPI. CPI. PCIB. Response Feedback: The SPI would tell Nancy that $1.05 worth of work has been accomplished for each $1 worth of scheduled work. Question 12 1 out of 1 points When reviewing the variance on a project, you compare Earned Value with Selected Answer: Answers: Expected Schedule Value. Actual Costs and Expected Schedule Value. Realized Risks. Actual Costs. Expected Schedule Value. Response Feedback: The Earned value is what the project has produced so far versus the Expected Schedule Value which is what the project was predicted to earn at that same point. Question 13 1 out of 1 points Jim receives the following information on his project: PV = 1000, EV = 1200, AC = 800, BAC = 2000, EAC = 1333. How is the project doing in terms of schedule? Selected Answer: Answers: More work has been done than planned The same amount of work has been done than planned The project has cost less than planned More work has been done than planned Less work has been done than planned There is not enough information to draw a conclusion Response Feedback: To find out how well this project is doing in terms of schedule, the SV will need to be calculated by subtracting PV from EV. The result is a positive 200, which indicates that $200 more worth of work has been completed than planned. Question 14 1 out of 1 points A reason that the duration on a task may differ from an original duration on a Tracking Gantt chart could be Selected Answer: Answers: New information on the task. An expected delay. New information on the task. A new budget cycle. The task has been cancelled. Response Feedback: Changes in information relating to a task could make it longer or shorter in duration. Question 15 1 out of 1 points The value that tells you the planned value of work that has actually been completed is the Selected Answer: EV. Answers: EV. SV. CV. PV. AC. Response Feedback: The value that tells you the planned value of work that has actually been completed is the earned value. It is the percent complete multiplied by the original budget. Question 16 1 out of 1 points Baseline project budgets are derived from Selected Answer: Answers: Time-phasing the work packages. Top management directions. The total direct, direct project overhead and G&a overhead costs. The earned value system. The organization's overall budget. Time-phasing the work packages. Response Feedback: The earned value system starts with the time-phased costs that provide the project budget baseline, which is called the planned budgeted value of the work scheduled (PV). Given this time-phased baseline, comparisons are made with actual and planned schedule and costs using earned value. The earned value approach provides the missing links not found in conventional cost-budget systems. Question 17 1 out of 1 points A CPI or SPI value less than one indicates that the project is Selected Answer: Answers: Over cost or behind schedule. Under cost or ahead of schedule. Under cost or behind schedule. Over cost or ahead of schedule. Over cost or behind schedule. On cost or on schedule. Response Feedback: An index of 1 indicates progress as planned. An index greater than 1 shows progress is better than expected. An index less than 1 suggests progress is poorer than planned and deserves attention. Question 18 1 out of 1 points A project can have a negative Schedule Variance and still be ahead of schedule when Selected Answer: Progress on the Critical Path is faster than non-critical path tasks. Answers: Progress on the Critical Path is faster than non-critical path tasks. All budget targets have been achieved. Non-Critical task delays are greater than progress on the Critical Path. None of these choices are correct. Response Feedback: If a Critical Path task is on-track or ahead-of schedule and no other tasks have encroached on the Critical Path, then, by definition the project is at least on or ahead of schedule. Question 19 1 out of 1 points Which of the following is NOT true regarding scope creep? Selected Answer: Answers: It commonly occurs late in projects. It is frequently unnoticed until time delays or cost overruns are observed. Scope changes can represent significant opportunity. It commonly occurs late in projects. Project suppliers resent frequent changes. It wears down team motivation and cohesiveness. Response Feedback: Scope creep is common early in projects-especially in new-product development projects. Customer requirements for additional features, new technology, poor design assumptions, etc., all manifest pressures for scope changes. Frequently these changes are small and go unnoticed until time delays or cost overruns are observed. Scope creep affects the organization, project team, and project suppliers. Scope changes alter the organization's cash flow requirements in the form of fewer or additional resources, which may also affect other projects. Frequent changes eventually wear down team motivation and cohesiveness. Clear team goals are altered, become less focused, and cease being the focal point for team action. Starting over again is annoying and demoralizing to the project team because it disrupts project rhythm and lowers productivity. Project suppliers resent frequent changes because they represent higher costs and have the same effect on their team as on the project team. Although scope changes are usually viewed negatively, there are situations when they result in positive rewards and can represent significant opportunities. Question 20 1 out of 1 points The second step in the project control process for measuring and evaluating project performance is to Selected Answer: Answers: Measure progress and performance. Compare plan against actual. Analyze inputs to control system. Review the baseline plan with top management. Measure progress and performance. Review spending with team members. Response Feedback: The project control steps for measuring and evaluating project performance are first to set a baseline plan, then to measure progress and performance, next to compare plan against actual and finally to take action. Question 21 1 out of 1 points A project monitoring system involves all of the following EXCEPT Selected Answer: Answers: Adjusting the data. Determining how, when, and who will collect the data. Adjusting the data. Reporting current progress. Determining what data to collect. Analysis of the data. Response Feedback: A project monitoring system involves determining what data to collect; how, when, and who will collect the data; analysis of the data; and reporting current progress. Question 22 1 out of 1 points A Cost/Schedule graph can be interpreted using ________ and ________ for its axis. Selected Answer: Dollar Amounts; Schedule Answers: Dollar Amounts; Schedule Dates; Actual Cost Baseline; Deadline Earned Value; Schedule Response Feedback: Comparison of the dollar value of cost or a percentage with the schedule can give the project manager a quick idea of both schedule and cost variance. There is a treasure-trove of budget information contained within the Cost/Schedule graph. Question 23 1 out of 1 points The schedule variance for a project is calculated by: Selected Answer: Answers: EV - PV PV - EV EV - PV EV - AC CV - EV AC - SV Response Feedback: The schedule variance is the difference between the planned value of work actually done (EV) and the planned value of work that was planned to be done (PV). The schedule variance for a project is calculated EV - PV. Question 24 1 out of 1 points Which of the following methods will measure the cost efficiency of the work accomplished to date? Selected Answer: Answers: EV/AC SV/CV AC/CV EV/AC EV/PV AC/SV Response Feedback: The CPI is the cost performance index that measures the cost efficiency of the project. Cost performance index (CPI) = EV/AC. Question 25 1 out of 1 points Of the following costs, which are NOT included in baseline? Selected Answer: Answers: Budget reserves Suppliers Contractors Labor Budget reserves Equipment Response Feedback: The baseline (PV) is the sum of the cost accounts, and each cost account is the sum of the work packages in the cost account. Three direct costs are typically included in baselines-labor (contractors), equipment, and materials (suppliers). Question 26 1 out of 1 points Which performance index is the most potentially misleading? Selected Answer: Answers: SV CPI EAC EV SV CV Response Feedback: Many times it is determined that a positive SV indicates the project is ahead of schedule and a negative SV indicates that a project is behind schedule. This is not always the case. Schedule variance does indicate whether or not the work that was planned to be completed has been completed, but it doesn't tell you if that work is critical or not. If more work than what was planned was completed, but this work was noncritical, it is possible to have a positive SV and still be behind schedule. Question 27 1 out of 1 points Which of the following methods of variance analysis is the best indicator of how far off the budget a project will be at completion? Selected Answer: Answers: VAC TCPI EAC ETC VAC BAC Response Feedback: The cost variance at completion (VAC) indicates expected actual over- or under-run cost at completion. Question 28 1 out of 1 points The indicator that tells you the amount each remaining dollar must earn in order for the project to stay within budget is the Selected Answer: Answers: TCPI. PCIC. CPI. TCPI. SPI. VAC. Response Feedback: The indicator that tells you the amount each remaining dollar must earn in order for the project to stay within budget is the TCPI. A number greater than 1 means there is more work than there is budget left. A number less than 1 means there is less work than there is budget left. Question 29 1 out of 1 points When someone familiar with each task estimates what percent of the task has been completed or how much of the task remains, they are creating a method for assigning costs to the baseline called the Selected Answer: Percent complete rule. Answers: Percent complete rule. Task complete rule. 0/100 percent rule. Degree complete rule. Work complete rule. Response Feedback: The percent complete rule is the heart of any earned value system. The best method for assigning costs to the baseline under this rule is to establish frequent checkpoints over the duration of the work package and assign completion percentages in dollar terms. Question 30 1 out of 1 points Sally receives the following information on her project: PV = 100, AC = 75, EV = 100. How well is the project doing in terms of budget? Selected Answer: Answers: 25 under budget Right on budget 50 under budget 50 over budget 25 under budget 25 over budget Response Feedback: To find out how well this project is doing in terms of budget, the CV will need to be calculated by subtracting AC from EV. The result is a positive 25, which indicates that this project has spent $25 less than planned on actual work completed. Question 31 1 out of 1 points A negative Cost Variance combined with a negative Schedule Variance is an indicator of Selected Answer: Answers: None of these choices are correct. Budget over-runs. Actual Cost running to plan. Risk of Work Packages running out of Slack. None of these choices are correct. Response Feedback: This is indicating that there are tasks or work packages that are not being delivered on time, but remember that there is the need to go to the Tracking Gantt to get the whole story. Question 32 1 out of 1 points Jessica just received the following information on her project: PV = 200, EV = 300, AC = 250, BAC = 1500, EAC = 1208. In terms of cost at completion. Selected Answer: Answers: The project will currently finish under budget. The project will currently finish behind schedule. The project will currently finish over budget. The project will currently finish under budget. The project will currently finish on budget. There is insufficient information to draw conclusions. Response Feedback: Since the estimated cost at completion is less than the budgeted cost at completion, at this time, the project is expected to finish under budget. Question 33 1 out of 1 points A project manager notices that $1,000 worth of work that was scheduled to be completed at this time has not been accomplished. They know this by looking at the Selected Answer: SV. Answers: SV. TCPI. EV. EAC. PCIB. Response Feedback: A SV of -1000 would indicate that $1,000 worth of work that was scheduled to be completed at this time has not been accomplished. Question 34 1 out of 1 points A project manager learns that the project is only earning $.90 of planned work for each dollar spent by looking at the Selected Answer: Answers: CPI. EV. BAC. SV. CPI. SPI. Response Feedback: A CPI of .90 would indicate that the project is earning $.90 of planned work for each dollar spent. Question 35 1 out of 1 points Causes for Scope Creep can include Selected Answer: Answers: None of these choices are correct. Newly identified features. New Technology. Incorrect design assumptions. None of these choices are correct. Response Feedback: This is just a representative sample of rational for changes in scope - to put together an exhaustive list would be a challenge in and of itself!