387 Project Mgmt. - Chapter 5

Companies are using which of the following for improving the estimating process for future projects?

B. Creating historical databases of previous projects

The pattern of improvement identified from a worker having performed a task multiple time is known as a

B. Learning Curve.

Which of the following does NOT help describe a bottom-up estimating approach?

B. They are made by someone who uses experience and/or information from someone else to determine overall project cost and duration.

Richard is collecting estimates for a house that he will have the funding to build in 12 months. Which of the following factors does Richard need to consider in regard to the quality of these estimates?

C. Planning horizon

Benefits of Reference Class Forecasting include

D. All of these choices.

Accounting would be an example of which of the following costs typically found in a project?

D. General and administrative overhead

Laura is forecasting the time and cost of developing an intranet for a new customer. Her department has completed six such intranets for customers during the last two years. Although the proposed system is about the same size as the others, she estimates that it will take about 10 percent less time and money. Which of the following methods is she using?

D. Learning curve

Refining estimates may be necessary for a number of reasons. For example, resource shortages, in the form of people, equipment, or materials, can extend original estimates. This is a good example of

D. Normal conditions not applying.

Janet is forecasting how much money her department needs to support a new project. She estimates that two people and $25,000 in expenses will cover her needs. Because management typically insists on reducing forecasts by 20 percent, she increases her estimates to allow for that reduction. Which of the following factors is illustrated in this situation?

D. Padding estimates

Typical kinds of costs found in a project include all of the following EXCEPT

E. All of these choices are examples of costs found in a project.

The salary of the project manager would be an example of what type of cost found in a project?

E. Direct project overhead

Which of the following would best represent direct project costs?

E. Labor, materials and equipment

Which of the following is NOT one of the factors that need to be considered to improve quality of estimates for project times and costs?

E. Profit

Ed is looking over the actual results of projects and comparing them to what was estimated. He notices that the projects that took six months or longer to complete were noticeably more off the estimates. Which of the following factors is he recognizing?

E. Project duration

Refining estimates may be necessary for a number of reasons. For example, design flaws being revealed after the fact, extreme weather conditions, and accidents occurring are good examples of

E. Things going wrong on a project.

Learning curves are more likely to be applied in situations where most of the costs are

Labor

Jose is forecasting project time and cost for constructing a new building by multiplying the total square footage by a given dollar amount. Which of the following methods is he using?

Ratio

Large projects that have long time horizons and a very high complexity can be referred to as

A. Both Mega Projects and White Elephants.

Which of the following is NOT one of the recommended guidelines for developing useful work package estimates?

A. Estimates should include a normal level of contingency.

Reasons why estimating time and cost are important include all of the following EXCEPT

A. To help establish a project selection process.