You are the project manager of the NHQ project. Your project has a budget of $1,258,456 and is scheduled to last for three years. Your project is currently forty percent complete though it should be forty-five percent complete. In order to reach this point of the project, you have spent $525,000. Management needs a performance report regarding the NHQ project. What is the planned value for this project?
Correct Answer:
A
The planned value is the percent complete that the project should have done. In this instance, it is: Planned value = 45% of $1,258,456 =$566,305
Answer option B is incorrect. This is the project budget.
Answer option D is incorrect. $503,382 is the earned value for this project.
Answer option C is incorrect. -$54,044 is the variance at completion for your project.
You have created the project network diagram for your project. Management is reviewing the network diagram and they are curious as to why you have included levels of effort activities as start-to-start and finish-to-finish successor activities for work that uses particular manufacturing equipment. You explained that the levels of effort activities are maintained for the equipment. This relationship and scheduling scenario is also known as what term?
Correct Answer:
B
This is also known as a hammock activity, as the SS and FF relationship hangs off of the activities in the project network diagram. A hammock activity is a schedule or project planning term for grouping of subtasks that "hangs" between two end dates it is fixed to. It groups subtasks that are not related in the hierarchical sense of a Work Breakdown Structure. It also groups subtasks that are not related in a logical sense of a dependency where one subtask must wait for another. A hammock activity usually refers to report information that is time-dependent and lasts from the initial to the latest date of the activities it encompasses. By using a hammock activity, the top management is able to see an overview of the project without being besieged by details.
Answer option D is incorrect. Finish-to-start is the most common relationship between project activities in the project network diagram.
Answer option A is incorrect. Project management overhead describes the work that supports the project objectives, but is not linked directly to the project deliverables.
Answer option C is incorrect. A subproject is a discrete set of work that contributes to the project, but branches off the primary project work. A subcontract portion of the project is an example of a subproject.
Which of the following documents captures and defines the work activities, deliverables, and a timeline that a vendor will execute against in performance of work for a customer?
Correct Answer:
C
A statement of work (SOW) is a document that captures and defines the work activities, deliverables and timeline that a vendor will execute against in performance of work for a customer. Detailed requirements and pricing are usually specified in it, along with many other terms and conditions. SOW is a narrative description of products or services to be supplied by the project. For internal projects, the project initiator or sponsor provides the statement of work based on business needs, product, or service requirements. For external projects, the statement of work can be received from the customer as part of a bid document.
Answer option B is incorrect. Scope of statement gives the narrative description of the project scope.
Answer option A is incorrect. Project charter is a document that formally authorizes a project manager to work on a project.
Answer option D is incorrect. WBS is a tool that defines a project and groups the project discrete work in a way that helps organize and define the total work scope.
Which of the following individuals performs various management roles within an administrative or functional area of the business, such as human resources, finance, accounting, or procurement?
Correct Answer:
C
The role of a functional manager is to perform various management roles within an administrative or functional area of the business, such as human resources, finance, accounting, or procurement. He is assigned his own permanent staff to carry out the ongoing work. He should have a clear directive to manage all tasks within his functional area of responsibility.
Answer option D is incorrect. A project manager is an expert in the field of project management. He is responsible for the entire project from inception to completion. The project manager leads the team and helps negotiate the multiple relationships within any project whether with clients, team members, firm principals or any variety of partners and functions as the hub of a project.
Answer option A is incorrect. Seller is also known as a vendor, supplier or contractor. They are external company's elements that enter into a contractual agreement to provide components or services necessary for the project.
Answer option B is incorrect. The role of operations manager is to perform various management roles in a core business area, such as research and development, design, manufacturing, provisioning, testing, or maintenance. The operations manager directly deals with constructing and maintaining the saleable products or services of the enterprise.
Jack works as a project manager for the NHQ project. His project has a budget of $2,208,456 and is scheduled to last for three years. His project is currently forty percent complete though it should be forty-five percent complete. In order to reach this point of the project, he has spent $725,000. Management needs a performance report regarding the NHQ project. Management is concerned that this project will be over budget upon completion. Management would like to create a report telling them how much more the project will need to complete. What value should Jack tell the management?
Correct Answer:
A
The project will need $1,087,497.74 more to complete. This formula, the estimate to complete, is estimate at completion minus the actual costs. Here,
CPI = EV/AC
= (0.40*2,208,456)/725,000
= 1.21846, and ETC = EAC - AC
= (BAC/CPI) - AC
= (2,208,456/1.21846) - 725,000
= 1,812,497.74 - 725,000
= 1,087,497.74
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.