06 - PMP Lesson 6 Quiz

Process/Output. The Key Output is provided, name the Process that creates it. Schedule Management Plan

Workbook, Lesson 6, page 60, #17 Answer: Plan Schedule Management

Process/Output. The Key Output is provided, name the Process that creates it. Activity Cost Estimates

Workbook, Lesson 6, page 60, #2 Answer: Estimate Costs

Process/Output. The Key Output is provided, name the Process that creates it. Activity Duration Estimates

Workbook, Lesson 6, page 60, #3 Answer: Estimate Activity Durations

Process/Output. The Key Output is provided, name the Process that creates it. Activity List

Workbook, Lesson 6, page 60, #4 Answer: Define Activities

Process/Output. The Key Output is provided, name the Process that creates it. Activity Resource Requirements

Workbook, Lesson 6, page 60, #5 Answer: Estimate Activity Resources

Process/Output. The Key Output is provided, name the Process that creates it. Basis of Estimates

Workbook, Lesson 6, page 60, #6 Answer: Estimate costs

Process/Output. The Key Output is provided, name the Process that creates it. Cost Baseline

Workbook, Lesson 6, page 60, #7 Answer: Determine Budget

Process/Output. The Key Output is provided, name the Process that creates it. Cost Management Plan

Workbook, Lesson 6, page 60, #8 Answer: Plan Cost Management

Process/Output. The Key Output is provided, name the Process that creates it. Milestone list

Workbook, Lesson 6, page 60, #9 Answer: Define Activities

Process/Output. The Key Output is provided, name the Process that creates it. Schedule Data

Workbook, Lesson 6, page 60, #16 Answer: Develop Schedule

You are working with your work package owners to determine the activity cost estimates. An activity cost estimate includes all of the following resource categories except: A. Labor B. Materials C. Equipment D. Time shortages

Workbook, Lesson 6, page 56, #1 Answer: D Resource cost estimates will include labor, materials, and equipment. Time shortages would not be a resource cost estimate.

Your team lead has suggested that you evaluate various estimating techniques in order to provide the most comprehensive estimate possible. You decide to use parametric estimating. Parametric cost estimating involves: A. Defining the parameters of the project life cycle B. Calculating individual cost estimates for each work package C. Using a statistical relationship between historical data and other variables to calculate a cost estimate D. Using the actual cost of a similar project to estimate total project costs

Workbook, Lesson 6, page 56, #2 Answer: C Parametric estimating uses a statistical relationship between variables to calculate a unit cost, which can then be applied to the number of units that will be consumed/used for the project. Individual cost estimates would be bottom-up estimating. Using the actual cost of a similar project would be analogous estimating.

The previous project manager of your newly assigned project leveraged analogous estimating to determine the project costs. Analogous estimating: A. Uses bottom-up estimating techniques B. Uses the actual of previous, similar projects as the basis for estimating the cost of the current project C. Is used most frequently in the later stages of a project D. Summarizes estimates for individual work items

Workbook, Lesson 6, page 56, #3 Answer: B Analogous estimating uses the costs from a previous similar project as the basis for the estimate. It is considered top-down and is not done on individual work items. Analogous estimating is most commonly used early in the project life cycle.

Your project is getting ready to kick-off and your sponsor has requested updated cost estimates. Which of the following is not true about cost estimates? A. Are generally expressed in unites of currency (dollars, euro, etc) B. The costs for schedule activities are estimated for all resources that will be charged to the project C. They do not generally consider information on risk responses D. Involve developing an approximation of the costs of the resources needed to complete each schedule activity

Workbook, Lesson 6, page 56, #4 Answer: C Cost estimates should include information on risk responses - including the cost to invoke risk responses and costs associated with contingency reserve.

You have been assigned a project that you have minimal experience with in the past. Unfortunately, the organization has also not pursued this type of initiative previously. The leadership team is asking for an estimate of costs. Based on you limited knowledge, what type of estimate would you mostly likely provide? A. Parametric B. Phased C. Analogous D. Rough order of magnitude

Workbook, Lesson 6, page 56, #5 Answer: D Because the organization has not done this type of project previously, that minimizes the opportunity to use an analogous estimate. There are not enough known, scalable data to do a parametric estimate. A phased estimate would require knowing the near-term work in detail. Thus a ROM would be the most appropriate estimate.

You are gathering the cost estimates for the renovation project. Upon reviewing cost data on previous projects, you find that for 20-member teams, the average equipment cost was $3,800. You anticipate a 15-person team. Which statement is most accurate? A. A parametric estimate would be $2,850 B. An analogous estimate would be $2,850 C. The estimate would not be able to be determined due to pricing increases D. A budgetary estimate would be $2,850

Workbook, Lesson 6, page 56, #6 Answer: A Using a unit cost of $190 per team member, the estimate would be accomplished through parametric estimating: $190 x 15 = $2,850. Analogous would be top-down and a budgetary estimate would be based on a periodic allocation.

The difference between the cost baseline and the total project budget can be best described as: A. They are synonymous B. The total project budget includes management reserve and the cost baseline does not C. The cost baseline includes management reserve and the total project budget does not D. The total project budget is managed by the project manager and the cost baseline is managed by the team

Workbook, Lesson 6, page 56, #7 Answer: B The total project budget includes both the cost baseline (which includes the cost estimates plus contingency) and the management reserve. The project manager is responsible for managing the cost baseline, but the sponsor is typically responsible for the management reserve.

During the pilot of the CIS project, 1,000 customer records were updated and added to the new system. The cost from the vendor was $500. You know that for the full launch you will need to update and transfer 500,000 additional customer records. What will be the best estimate for the full launch? A. $250,000 B. $250,500 C. $500,000 D. $200,000

Workbook, Lesson 6, page 57, #10 Answer: A For the full launch, you can use a parametric estimate based on the pilot date: $500 / $1,000 records = $0.50 per record. For $500,000 records, the cost would be $500,000 x 0.50 = $250,000

Your client requires a major scope change due to a change in the market conditions. The scope change would add costs to the project. You currently have funding in your budget contingency reserve. What is the best thing you should do? A. Escalate to the sponsor to inquire about the application of management reserve funds B. Utilize the contingency reserve until it is exhausted and then escalate if necessary C. Deny the change D. Ask the client for additional funding to cover the scope change

Workbook, Lesson 6, page 57, #11 Answer: A Contingency would not be used for major scope changes as it reserved for known-unknowns (risks that are known, just uncertain if they will occur). Simply denying the change is not appropriate without taking the appropriate steps first. Before asking the client for the additional funding, it would be appropriate to escalate to the sponsor to confirm the existence of any management reserve, as that may be the most appropriate source of funding for the major change iven that it was due to a change in market conditions and apparently outside of the control of the client. contingency reserves should be used for instances that were not a known risk

Your $85,000 project is estimated to take 12 weeks and you are 30% complete. What will the planned value (PV) be at the end of the project? A. Unable to determine until the project is 100% complete B. $59,000 C. The budget at completion (BAC) D. $7,083

Workbook, Lesson 6, page 57, #12 Answer: C The planned value (PV) at the end of the project is equal to the budget at completion (BAC). The PV is the cumulative planned value of the work to be completed by that point. At the end of the project, all work is planned to be complete, thus equaling the budget as completion.

Given the launch of the new system, you need to take into consideration the cost of associated hardware and software. Your IT team lead anticipates the costs to be approximately $18,000. However, if an upgrade is necessary, it could cost as much as $30,000. There is a chance that existing hardware can be used, which would bring the costs as low as $7,000. What is the best estimate? A. $17,167 B. $18,170 C. $18,330 D. $13,750

Workbook, Lesson 6, page 57, #8 Answer: B The best technique to determine the cost estimate would be a three-point estimate: (O + 4M +P) / 6 ($7,000 + ($ x $18,000) + $30,000) / 6 $109,000 / 6 $18,166.67

Process/Output. The Key Output is provided, name the Process that creates it. Project Schedule Network Diagrams

Workbook, Lesson 6, page 60, #13 Answer: Sequence Activities

Process/Output. The Key Output is provided, name the Process that creates it. Resource Breakdown Structure

Workbook, Lesson 6, page 60, #14 Answer: Estimate Activity Resources

Process/Output. The Key Output is provided, name the Process that creates it. Schedule Baseline

Workbook, Lesson 6, page 60, #15 Answer: Develop Schedule

Successful adoption of the CIS project is going to be dependent upon a thorough training program for the service representatives. In order to develop your sizing, you review the documentation from the financial system roll-out last year. To provide the same population with classroom training for that project cost $37,500. In addition, IT recently provided all users with trouble-shooting manuals for a similar system, at a cost of $12,000. Troubleshooting manuals will be used for this project as well. Which statement is most accurate? A. The parametric estimate would be $49,500 B. The analogous estimate would be $49,500 C. The budgetary estimate would be $49,500 D. The three-point estimate would be $49,500

Workbook, Lesson 6, page 57, #9 Answer: B Because you are using costs from a past similar project, this would be considered analogous estimating. $37,500 + $12,000 = $49,500

You have been assigned the management of a $750,000 infrastructure renovation project. The work is anticipated to take two years to complete and the budget has been allocated as below. What is the planned value (PV) of the work upon completion of period 6? ADD IMAGE, Workbook, Lesson 6, page 58, #13 A. $195,000 B. $660,000 C. Unable to determine D. $465,000

Workbook, Lesson 6, page 58, #13 Answer: B Planned value (PV) is the cumulative planned value of the work. To determine the PV by the end of period six, sum all periodic estimates up through period six. This would equal $660,000.

The work package owners and other team members have provided the cost estimates for their components of the project. You have evaluated the estimates provided and assessed the contingency requirements. What should you do next? A. Seek approval on the cost estimates B. Estimate the need for management reserve C. Review the cost estimates with the sponsor and key stakeholders D. Using the scheduling of the work packages and the activities, determine the project budget

Workbook, Lesson 6, page 58, #14 Answer: D Once the costs are estimated, the next step will be to apply those costs across the schedule to aggregate the costs into the periodic and overall budget, creating the cost baseline. As a project manager, you would typically not secure approval on the estimates nor review those estimates with the sponsor and key stakeholders until the overall project budget is estimated. The PM does not estimate the need for management reserve, as it is set by the sponsor and is for "unknown-unknowns" and as such, is not able to be estimated.

On a particular component, the work package owner leveraged a triangular 3-point estimate, calculated at $128,333. If the optimistic estimate was $98,000 and the most likely estimate was $112,000, what was the pessimistic estimate? A. $112,778 B. $175,000 C. $223,998 D. $112,389

Workbook, Lesson 6, page 58, #15 Answer: B Using the triangular 3-point formula: (O + M + P) / 3 $128,333 = ($98,000 + $112,000 + P) / 3 $384,999 = $98,000 + $112,000 + P $384,999 = $210,000 + P $174,999 = P

Vocabulary: An estimating technique that uses a statistical relationship between historical data and other variables to calculate an estimate, such as a unit cost

Workbook, Lesson 6, page 59, #1 Answer: Parametric estimating

Vocabulary: The amount of funds or budget set-aside to cover major unknown risks or changes. For unknown-unknowns.

Workbook, Lesson 6, page 59, #10 Answer: Management reserve

Vocabulary: Used to appropriate funds on a periodic basis

Workbook, Lesson 6, page 59, #11 Answer: Budgetary estimate

Vocabulary: A high-level educated guess

Workbook, Lesson 6, page 59, #12 Answer: Rough order of magnitude estimate

Vocabulary: Used for longer term projects where the near-term work is estimated in detail and future term work has place-holders

Workbook, Lesson 6, page 59, #13 Answer: Phased estimate

Vocabulary: An extremely accurate estimate of costs

Workbook, Lesson 6, page 59, #14 Answer: Definitive estimate

Vocabulary: The amount of funds or budget needed above the estimate to reduce the risk of overruns of project objectives to a level acceptable to the organization. For known-unknowns.

Workbook, Lesson 6, page 59, #2 Answer: Contingency reserve

Vocabulary: Estimating technique that uses the values from a previous, similar project as the basis for estimating.

Workbook, Lesson 6, page 59, #3 Answer: Analogous estimating

Vocabulary: An evaluation of submitted seller bids to determine which vendor would be most appropriate for the budget restrictions of the project.

Workbook, Lesson 6, page 59, #4 Answer: Vendor bid analysis

Vocabulary: A method of determining the costs incurred to ensure quality. Includes the cost of conformance and the cost of non-conformance.

Workbook, Lesson 6, page 59, #5 Answer: Cost of quality

Vocabulary: An analytical technique that uses three cost estimates to represent the optimistic, most likely, and pessimistic scenarios.

Workbook, Lesson 6, page 59, #6 Answer: Three-point estimating

Vocabulary: The document that sets out the format and establishes the activities and criteria for planning, structuring, and controlling the project costs

Workbook, Lesson 6, page 59, #7 Answer: Cost management plan

Vocabulary: An evaluation of the projected costs of the project and when those costs will be incurred to ensure that the costs will fall within the funding limit.

Workbook, Lesson 6, page 59, #8 Answer: Funding limit reconciliation

Vocabulary: A method of estimating where cost estimates are placed on each component of work and the estimates are then aggregated for an overall estimate

Workbook, Lesson 6, page 59, #9 Answer: Bottom-up estimating

Process/Output. The Key Output is provided, name the Process that creates it. Activity Attributes

Workbook, Lesson 6, page 60, #1 Answer: Define Activities

Process/Output. The Key Output is provided, name the Process that creates it. Project Calendars

Workbook, Lesson 6, page 60, #10 Answer: Define Schedule

Process/Output. The Key Output is provided, name the Process that creates it. Project Funding Requirements

Workbook, Lesson 6, page 60, #11 Answer: Determine Budget

Process/Output. The Key Output is provided, name the Process that creates it. Project Schedule

Workbook, Lesson 6, page 60, #12 Answer: Develop Schedule