CAPM chapter 6

Crashing a project

shortening the overall duration of a project by reducing the time it takes to perform certain activities

true or false: A network diagram allows you to determine the amount of time the project will take.

true

Theory of Constraints (TOC)

Systems management philosophy that states that every organization is hindered by constraints that come from its internal policies.

Project Schedule

A document that lists the planned dates for performing tasks and meeting goals defined in a project plan.

Which of the following terms represents a method of problem solving that relies on inductive reasoning from past experience or expert judgment when there is no relevant mathematical algorithm available?

A heuristic

logit model

A linear model for the logit (natural log of the odds) of disease as a function of a quantitative factor X: Logit (disease given X = x ) = α + β x This model is mathematically equivalent to the logistic model.

Analogous Estimating

A technique for estimating the duration or cost of an activity or a project using historical data from a similar activity or project.

Resource Leveling

A technique in which start and finish dates are adjusted based on resource constraints with the goal of balancing demand for resources with the available supply.

regression analysis

A method of predicting sales based on finding a relationship between past sales and one or more independent variables, such as population or income

Monte Carlo Simulation

A process which generates hundreds or thousands of probable performance outcomes based on probability distributions for cost and schedule on individual tasks. The outcomes are then used to generate a probability distribution for the project as a whole.

Fast Tracking

A schedule compression technique in which activities or phases normally done in sequence are performed in parallel for at least a portion of their duration.

Critical Chain Method

A schedule method that allows the project team to place buffers on any project schedule path to account for limited resources and project uncertainties.

Precedence Diagramming Method (PDM)

A technique used for constructing a schedule model in which activities are represented by nodes and are graphically linked by one or more logical relationships to show the sequence in which the activities are to be performed.

Resource Smoothing

A technique which adjusts the activities of a schedule model such that the requirement for resources on the project do not exceed certain predefined resource limits.

Gantt Chart

A time and activity bar chart that is used for planning, managing, and controlling major programs that have a distinct beginning and end. A Bar chart.

According to the TOC, what is the only way to achieve good cost performance?

Achieve good local performance everywhere

Graphical Evaluation and Review Technique (GERT)

Allows for conditional branching and looping, and probabilistic treatment

Which of the following is not correct about PDM? A. The critical path always has dummy tasks B. Every network has at least one critical path C. The network displays all task interdependencies D. Tasks not on the critical path have slack or float

Answer A . PMBOK® Guide p. 189-190. PDM or the precedence diagramming method is a method of network diagram designed to display task dependencies and relationships. One of its most valuable outputs is the critical path which is the longest chain of dependent tasks where there is no slack or float.

Which of the following statements is correct? A. A network diagram allows you to determine the amount of time the project will take. B. A WBS allows you to determine the longest chain of dependent tasks. C. Changing the end date of the project will cause the network diagram to change. D. The critical path will always contain dummy tasks.

Answer A. PMBOK® Guide p. 189-190. The network diagram is specifically designed to allow you to determine all the potential project paths and the longest time the project can take. A work breakdown structure is used to show the project deliverables. Changing the end date of a project does not necessarily change a network diagram and the critical path never contains dummy tasks.

As the project manager, you estimate the time that is needed for each activity, assign tasks to specific resources and then add the estimates to create the project estimate. You then use this value to establish the project delivery date which you provide to the project sponsor. What is incorrect with this process? A. The project manager created the estimates without the team. Additionally, summing the tasks will lead to a significantly longer project duration. B. Project duration estimates should be developed by the project sponsor. C. The project manager created the estimates without the project resources and did not use a network diagram to define the critical path. D. The project completion date should be derived from an evaluation of the triple constraints.

Answer A. PMBOK® Guide p. 195-204, 210. Project estimates should always be developed by the project team and not just the project manager. Additionally, the project duration is never generated by simply summing the activity estimates as many activities are completed concurrently. Simply summing these values will cause an inflation of the estimate.

In discussing your project with management you determine that the project schedule is the most flexible and the project scope is the least flexible. If the allowable monthly project expenditures are fixed, then what is the best thing to do? A. Level the resources. B. Examine the project's critical path. C. Analyze the project's life cycle costs. D. Crash the project.

Answer A. PMBOK® Guide p.211. This is a triple constraints question. If the project schedule is the most flexible, this means the project could continue for several months past the original forecast. This is especially true because the project has an inflexible scope. Because the project cost is fixed on a monthly basis — but not on a total basis — the best thing to do is level the resources to ensure the monthly project costs do not exceed the allowable amount.

It is late Friday afternoon when your project sponsor informs you that the project schedule has been reduced by two weeks. What is the best thing to do? A. Meet with your project team to determine options for schedule compression. B. Cut the project scope. C. Crash the project. D. Inform management that the date cannot be met.

Answer A. This is a PMIism. The best option is always to determine alternatives before you do anything else.

Which of the following terms represents a method of problem solving that relies on inductive reasoning from past experience or expert judgment when there is no relevant mathematical algorithm available? A. A heuristic B. A logit C. GERT D. Analogous estimating

Answer A. A heuristic - is a method of problem solving that relies on inductive reasoning from past (expert) judgment when there is no relevant mathematical algorithm. It is also sometimes referred to as a "rule of thumb".

Your boss enters your office and is concerned that a particular activity will delay the delivery of the project. What is the best thing to do? A. Determine if the activity is on the critical path. B. Explain why your boss should not worry. C. Perform a GERT analysis. D. Examine the activity's risk triggers.

Answer A. PMBOK® Guide p.210. Slack or float represents the amount of time a specified activity may be delayed without impacting the project's Critical Path. Only items not on the Critical Path have slack or float. It is the difference between the early finish and late finish or the early and late start. In this case the best answer is to first determine if the task is on the Critical Path and find out how much slack or float it has.

Your manager comes to you and demands that you complete your project three weeks early. What is the best thing to do? A. Meet with your project team to examine alternatives for crashing and fast tracking. B. Tell your boss the project critical path does not allow for a three week early completion. C. Ask the project to work overtime . D. Ask your manager if you can reduce the scope of the project.

Answer A. PMBOK® Guide p.215. Whenever your due date is reduced, the first thing to do evaluate the two alternatives you have. You can either crash or fast track the project

Your manager asks you to produce a report on your project for management. Which of the following would best meet the request? A. Bar chart B. PERT chart C. Milestone chart D. Gantt chart

Answer C. PMBOK® Guide p.218. The best tool for reporting to management is a milestone chart. This provides the correct level of information for management.

Which of the following statements best describes the relationship between standard deviation and risk? A. Standard deviation provides the level of uncertainty about the estimate B. Standard deviation defines whether or not safety is in the estimate C. Standard deviation defines the accuracy of the estimate D. There is no relationship between risk and standard deviation

Answer A. Standard deviation allows you to determine the amount of dispersion from the mean that your estimates have. The more dispersed the estimates, the more variance exists between the estimates — and therefore the greater the risk is.

As a general rule, which of the following is better illustrated by network diagrams than by bar charts? A. Project progress B. Logical relationships between activities C. The project's critical chain D. Resource needs

Answer B. PMBOK® Guide p. 209-212. Network diagrams are modeling methods that display the relationships between task, deliverable and activities. Since the bars in a bar chart are independent of each other, they cannot provide this information.

You are the project manager for a large construction project. It is early in the project lifecycle and you have completed the activity definition. In analyzing the activities you see a number of activities that are dependent on each other but can start at the same time. Which methodology is the best one to properly evaluate this project? A. CPM B. PDM C. AOA D. GERT

Answer B. PMBOK® Guide p. 189-190. Only the precedence diagramming method or PDM allows for relationships other than finish to start. In this case a start to start relationship is indicated by the fact that the tasks can begin at the same time. Therefore PDM is the correct answer.

You are the project manager for a new product. You are in the planning phase of your project and have just been told by one of your senior resources that they require the completed schematics before they can begin to build the product prototype. This is an example of what kind of dependency? A. Mandatory B. Discretionary C. Internal D. External

Answer B. PMBOK® Guide p. 191. Internal dependencies are not a type defined by PMI®. This is an example of a discretionary dependency because the question clearly states that the schematics are required to go the next step.

Your boss asks you to use Monte Carlo analysis to evaluate your project. For what purpose was this request most likely made? A. To create an activity's estimated length B. To gain an indication of the risk in the project C. To define the order in which activities occur D. Define project resource requirement

Answer B. PMBOK® Guide p. 213. Several of these answers are close, but the correct answer is to gain an indication of the risk in the project. Monte Carlo simulations will not tell you about specific risk. They reveal the probabilistic nature of risk. A Monte Carlo simulation enables the user to determine the probability that a result will occur within a given range. The wider the range, the greater the uncertainty or risk.

Your project is significantly over budget and behind schedule. It is critical that you determine your projected duration. To gain a better understanding of the project you analyze the sequence of deliverables, activities or tasks to find the ones with the least amount of schedule flexibility. What technique are you using? A. GERT B. CPM C. PERT D. PDM

Answer B. Each of these methods provides an evaluation of the project in some way. However, only the critical path method or CPM, focuses in on the amount of slack or float contained by a task.

Which of the following terms best represents the amount of time one activity can begin prior to the completion of its preceding dependent task? A. Lag time B. Lead time C. Float D. None of the above

Answer B. PMBOK® Guide p. 192. Lead time represents the amount of time one activity can begin prior to the completion of its preceding dependent task. Lead time is used to compress a schedule and can run the risk of rework.

You and your project team have just completed the development of your PDM diagram. The current diagram shows there are three critical paths in your project. What is the best thing to do next? A. Re-evaluate the network for errors. B. Develop the project schedule. C. Examine the project risk register. D. Discuss alternative networks with your team.

Answer B. PMBOK® Guide p.210. Multiple critical paths are not unusual in the real world. This simply means that if any of the activities on any of the critical paths are delayed the entire project will be delayed. Therefore, the existence of multiple critical paths does not represent an error in your process. The development of the PDM Diagram is part of activity sequencing. The next step in the process is developing the project schedule.

You and your project team have obtained estimates for your project, assigned resources, and developed a precedence diagram of the project. Several of your resources are very concerned that two of the activities are not being focused on enough and will end up delaying the project because they are critical components of the project's end product. What is the best thing to do? A. Sit down with the resources to discuss the project Gantt chart . B. Determine if the activities in question are on the critical path. C. Examine the project's risk register . D. Evaluate alternative project execution paths.

Answer B. PMBOK® Guide p.210. Slack or float represents the amount of time a specified activity may be delayed without impacting the project's Critical Path. Only items not on the critical path have slack or float. It is the difference between the early finish and late finish or the early and late start. In this case the best answer is to first determine if the tasks are on the Critical Path and find out how much slack or float it has.

When evaluating the impact that crashing will have on your project, which of the following should be included in the evaluation? A. The project sponsor's interest. B. Risks associated with the schedule changes. C. The amount of overtime to be worked. D. The impact of a reduction in project scope.

Answer B. PMBOK® Guide p.213. Whenever doing any type of evaluation of a project it is always critical that you analyze the risks associated.

You and your project team have just completed the development of your project schedule. Based on the constraints provided by the project sponsor, the project is scheduled to be completed after the project deadline. Assuming that costs are the least important constraint and scope is the most important constraint, which of the following is the best thing to do? A. Fast track the project. B. Crash the project. C. Reassess the critical path. D. Develop a critical chain model for the project.

Answer B. PMBOK® Guide p.215. The best thing to do in this case is crash the project. This usually entails adding resources to the project to get project work done more quickly. This will cause a likely increase in project costs. Fast tracking is doing tasks in parallel which decreases the schedule, but this often causes rework which in this case is unacceptable.

What is the variance of a project that has a best case estimate of 6, a most likely case estimate of 7, and a worst case estimate of 10? A. 2.08 B. 0.44 C. 0.67 D. 7.33

Answer B. PMBOK® Guide p. 201. The correct answer is 0.44. The PERT variance is calculated by first calculating the PERT standard deviation for the case using the formula of (pessimistic - optimistic) / 6. Once you have the PERT standard deviation you must square that result to obtain the PERT variance.

Which of the follow statements about a milestone is true? A. A milestone can have any duration B. A milestone has the same duration as the task, activity or deliverable it represents C. A milestone always has zero duration D. None of the above

Answer C. PMBOK® Guide p.157. A milestone is a marker representing the completion of a task, activity or deliverable. It never has duration of any length.

Which of the following best describe the amount of time that one activity can be delayed without impacting the early start of its succeeding task or activity? A. Lead time B. Float C. Lag time D. None of the above

Answer C. PMBOK® Guide p. 193. Lag time represents the amount of time a task or activity can be delayed without impacting the early start of the next task or activity. Often lag is added to a chain to produce a gap between tasks or activities.

A project manager is discussing her project with her boss. They are concerned that the project might be falling behind schedule and decide they must determine the project's likely completion date and find out where any flexibility exists. Which of the following tools would best provide this information? A. AOA B. PDM C. CPM D. Network Diagramming

Answer C. Each of these methods provides an evaluation of the project in some way. However, only the critical path method or CPM, focuses in on the amount of slack or float contained by a task.

Which of the following best describes the impact of multiple critical paths on a project? A. The project takes longer to complete. B. The project is more expensive. C. The project takes more resources to manage. D. The project risk increases.

Answer D. PMBOK® Guide p.210. Multiple critical paths are not unusual in the real world. This simply means that if any of the activities on any of the Critical Paths are delayed, the entire project will be delayed. This sometimes causes an increase in project resources or cost and it might cause the project to take longer. However, it is a guarantee that the project has an increase in risk because the project now has more chance for an activity delay to impact the delivery of the project.

You are the project manager at a major pharmaceuticals company. You are planning the release of a new drug and must wait for regulatory approval before you can begin manufacture of the drug. This is an example of what kind of dependency? A. Discretionary B. External C. Internal D. Mandatory

Answer D. PMBOK® Guide p. 191. Internal dependencies are not a type defined by PMI®. This is an example of a mandatory dependency. Neither the manufacturing nor the project management processes require the regulatory approval. However, governmental approval is required in order to sell the completed product.

Which of the following PM processes requires the project manager to reach an agreement with the activity resources on the calendar date for each activity? A. Sequence activities. B. Estimate activity durations. C. Estimate resources. D. Develop schedule.

Answer D. PMBOK® Guide p. 205. Develop schedule is the process where the basic schedule is applied to a calendar.

On Monday morning your boss comes into your office and asks about the amount of slack you have on a specific activity in your project. This is determined by which of the following: A. Performing a PERT analysis. B. Estimating the task or activity length. C. Creating a PDM diagram. D. Determining the total amount of time that a schedule activity may be delayed without impacting the project delivery.

Answer D. PMBOK® Guide p.210. Slack or float represents the amount of time a specified activity may be delayed without impacting the project's critical path. Only items not on the Critical Path have slack or float. It is the difference between the early finish and late finish or the early and late start.

You and your project team have just completed the development of your project schedule. Based on constraints provided by the project sponsor, the project is scheduled to be completed after the project deadline. Assuming that costs are the most important constraint and scope is the least important constraint, which of the following is the best thing to do? A. Crash the project. B. Reassess the critical path. C. Develop a new project schedule . D. Fast track the project.

Answer D. PMBOK® Guide p.215. The best thing to do in this case is fast track the project. This is because you do not have the ability to increase the cost by adding resources (crashing). Reassessing the critical path and developing a new schedule are not preferred alternatives.

Decomposition

Breaking deliverables into smaller components

A project manager is discussing her project with her boss. They are concerned that the project might be falling behind schedule and decide they must determine the project's likely completion date and find out where any flexibility exists. Which of the following tools would best provide this information?

CPM

Which of the following statements about Critical Chain Management is true?

It is a methodology that creates an optimized project schedule that considers resource limitations

Schedule Management Plan

Defines how the project schedule will be created and managed.

Critical chain project management (CCPM)

Focuses on managing the uncertainties of a project and builds buffers into the schedule to prevent key activities from failing. Pg 68

Which of the following is a type of bar chart? A. Gaussian distribution B. Scatter plot C. Gantt chart D. Logit model

Gantt Answer C. PMBOK® Guide p. 217. A Gantt chart is a type of bar chart laid on its side that also shows a project calendar. The lengths of the bars reflect the length of time the task, deliverable, or activity take.

Gaussian distribution

Normal or bell-shaped distribution of values symmetrically clustered around the mean

Six process to schedule management

Plan Schedule Management Define Activities Sequence Activities Estimate Activity Duration Develop Schedule Control Schedule

Schedule baseline

The schedule baseline represents what the project manager and team have committed to the sponsor in terms of when the various project tasks, activities and deliverables will be completed. It is the basis of measuring progress on the project and is required for any time-based variance analysis. For the exam, make sure that you can differentiate between schedule and the schedule baseline.

Slack or Float Time

The slip, slack, total float, or float is the amount of time the task, activity or deliverable can slip or extend without impacting the earliest overall delivery date of the project.

A resource gives you a pessimistic estimate of 5 days and an optimistic estimate of 2 days. What is the standard deviation?

The standard deviation in this case is the PERT standard deviation. The formula for the PERT standard deviation is Pessimistic - optimistic / 6. For this question that equals 5 - 2 = 3 and then 3/6 = .5

scatter plot (scattergram)

a graph in which data points portray the intersection of X and Y values

PERT chart

a graphical network model that depicts a project's tasks and the relationships between them

learning curve

a line that displays the relationship between processing time and the cumulative quantity of a product or service produced

Activity-on-arrow (AOA)

a network diagram in which arrows designate activities

Project Evaluation and Review Technique (PERT)

a planning tool that ensures complex projects are completed on time

Critical Path Method (CPM)

a project management technique that uses only one time factor per activity

Heuristic

a rule-of-thumb problem-solving strategy

The Critical Chain Method focuses on managing what?

buffers

regression analysis

measures the impact of a set of variables on another variable

Activity-on-Node (AON)

network diagram convention in which nodes designate activities

one-point estimate

requires that the team expert provide a reliable estimate of the time necessary to complete the activity.