Project Management
Many firms collect time and cost data through the ____ ______
Blank 1: project Blank 2: office
Direct project overhead is an immediate out-of-pocket expense.
False
_____ techniques can be applied to specific tasks.
Parametric
The ----- method is an extension to the ratio method.
apportion or apportionment
Which type of project lends itself to the function point method of top down estimating?
Software development.
Good time and cost estimates are needed within project execution to allow a project manager to do which of the following?
Support decision making Monitor project progress Schedule work
Poorly written scope statements for new technology lead to errors in estimating times and costs. True or false:
True
Why is the accuracy of estimates for current events greater than that for more distant events?
Uncertainty increases over time.
What is required for using the template method of bottom up estimating?
Understanding differences between projects. Good historical information.
Why is bottom up estimating generally considered more accurate than top down?
Using the WBS detail allows for more accuracy.
Range estimating works best when work packages have significant uncertainty, and a _____ estimation will usually arrive at a more reasonable average.
a group
________ costs represent real cash outflows and must be paid as the project progresses
Direct
The use of ____ is the dominant choice for expressing task duration in project management.
workdays
A worker can perform a task ______ the second time and each succeeding time she performs it.
better quicker or faster
________ is used when projects closely follow past projects in features and costs.
Apportionment
Sometimes, top-down estimates are used until the tasks in the ____ are clearly defined.
WBS
Project estimating is a ____ process.
complex or difficult
Factors outside of the organization, project team, or project itself may influence which aspect of a time/cost estimate?
Accuracy of the estimate
Which costs are examples of G&A overhead costs?
Advertising VP of Sales
Which factors make it most difficult to accurately estimate the costs and benefits of mega projects?
Complexity Time horizon
_____ - _____ estimates usually are derived from someone who uses experience and/or information to determine the project duration and total cost.
Blank 1: Top Blank 2: Down
When the learning curve can be applied, what effect does it have on project estimation?
Increases accuracy of time and cost estimates.
Which of the following statements regarding learning curves are true?
Labor hours reduce at a constant rate each time the output quantity doubles.
What are the project characteristics that would benefit from phase estimating?
Long duration with progressive design. High degree of scope uncertainty.
Which statements are correct about the influence that a planning horizon has upon project estimates?
Near term event estimating is more accurate than long range planning. Estimating is more accurate after the individual work packages have been defined.
One of the major advantages of a dedicated project team is the speed gained from concentrated focus and localized project decisions, what is the additional cost of that speed gained?
Personnel are 100% allocated to that project.
What is the term used to define the starting point by which a project estimate is "frozen" and then measured to determine accuracy?
Project baseline.
Identify the true statements about general and administrative (G&A) overhead costs. (Check all that apply.)
These represent organization costs that are not directly linked to a specific project. These costs include organization costs across all products and projects such as advertising.
Top down and bottom up estimating both use parametric (ratio) estimating, the difference is that...
Top down looks at the project as a total unit, whereas bottom up looks at individual tasks.
Match the intended uses of top-down and bottom-up estimates. Instructions
Top-Down Estimates ------ Strategic decision making, Unstable scope, Internal, small project Bottom-Up Estimates ---- Cost and time important Fixed-price contract Customer wants details
Direct costs are clearly ____________ to a specific work package.
chargeable
The ____ method simply uses the pooled experience of senior and/or middle managers to estimate the total project duration and cost.
consensus
All task time estimates need ____ time units.
consistent
Cost of labor, materials, and equipment are examples of _____ costs.
direct
Learning curves describe the relationship where each time the output quantity ______ the unit labor hours are reduced at a constant rate.
doubles
Estimators should treat each task as _____ of other tasks that might be integrated by the WBS.
independent
Why should project task time, cost, and resource estimates be based on "normal conditions"?
Provides a common frame of reference for interpreting the estimates. Prevents overly optimistic estimates.
According to project estimation guidelines, each task estimate is supposed to be done independently of other tasks. Why does this lead to inaccurate estimates?
Task interdependencies influence actual time and cost requirements.
Which of the following is considered a direct overhead cost?
Temporary rental space for the project team Salary of the project manager
Identify the main reasons why the project cost estimate is broken down into direct costs, direct project overhead costs, and general and administrative overhead costs. (Check all that apply.)
To sharpen the control process To improve decision making
Which approach to estimating project time and cost is usually completed by upper management?
Top Down
Match the methods of top-down and bottom-up estimates.
Top-Down Estimates ---- Consensus Ratio Apportion Function point Learning curves Bottom-Up Estimates ----- Template Parametric WBS packages Range estimates
Which of the following are potential impacts caused by adding time or cost (padding) to a work breakdown structure element estimate?
Total project cost or time may cause the project to be canceled or not executed. Gaming the system may cause management to unilaterally cut the estimate.
After project execution begins, at what point in a project should time and cost estimates be reviewed for change?
When there is any change to the project scope
Range estimating will provide an estimation for a "high" and "low" cost and/or time frame to complete a project. Which project characteristics would need this type of approach?
When work packages have a high degree of uncertainty. Software/technology projects with relatively unknown requirements.
Why is past experience the best starting point for creating quality time and cost estimates?
While projects are unique, many elements are similar to past work.
Why is keeping task estimates independent of each other needed for sound project planning?
Why is keeping task estimates independent of each other needed for sound project planning?
Using several people to make an estimate is sometimes called "____ ".
crowdsourcing
Organizational ______ shapes every dimension of project management.
culture
The main disadvantage of top-down approaches to estimating is simply that the time and cost for a specific ____ are not considered.
task
Time to implement new ____ has a habit of expanding in an increasing, nonlinear fashion.
technology
If the project is similar to past projects, then ____ methods can be used as a starting point for the new project.
template
For projects with a standard time unit of days (most typical), what is the rule of thumb for duration of an individual work package within a work breakdown structure?
1 - 5 days
Which are project factors that would tend to require a greater level of detail in a work breakdown structure (WBS) used for estimating?
A need for tight budget or time control. A high degree of project complexity.
Which process best describes phase estimating utilization of micro (bottom up) and macro (top down) methods?
A repetitive cycle of micro for short term and macro for the remainder of the project.
What are the benefits of using past project estimates and actuals to create a new project estimate?
Actuals from past projects provide benchmark measurements. Past projects can provide specific work package information.
_____ ______ estimates are aggregated and "rolled up" by deliverable to estimate the total direct cost of the project.
Blank 1: Work Blank 2: Package
We can push the estimating process down to the work package level for ____ - ____ estimates that establish low-cost, efficient methods.
Blank 1: bottom Blank 2: up
The 5- to 10-day rule of thumb applies to ____________ and ______________ goals.
Blank 1: cost Blank 2: performance
A simple breakdown by___________ , most ____________ , and ___________ for task time could provide valuable information regarding time and cost.
Blank 1: optimistic Blank 2: likely Blank 3: pessimistic
As projects progress, a manager obtains a better understanding of the project. This may lead to major changes in project ______ and _____
Blank 1: plans Blank 2: costs
A new technology usually carries more ____ and cost ____ than a proven process.
Blank 1: time Blank 2: risks
Which approach to estimating is usually coordinated by a project manager/office and is a "roll up" of individual estimates from work breakdown structure elements?
Bottom Up
Flyvbjerg advocates an external view based on the outcome of similar mega projects completed in the past. It is called reference class forecasting (RCF) and involves three major steps. Which of the following is not one of those steps?
Collect estimates of cost and duration from all of the top managers for the project.
Establishing cost and time estimates will allow a project manager to do which of the following?
Control the project
What is a primary reason for using several people to generate a time or cost estimate for a project rather than have a single estimator do all the estimating?
Eliminates extreme estimates.
What are the benefits of using the resource (person) most familiar with a task to do estimating?
Establishes "buy in" for the project. Builds communication channels early. Increases probability of accurate estimates.
What factors inherent to a dedicated project team structures will improve the quality of time and cost estimates?
Estimator's sense of project ownership. Estimator's time allocated to project versus "regular" work.
Why is top down estimating generally not effective at developing a low cost project estimate?
Estimators may be influenced by the proposed budget.
Mega projects often cost much less than expected, but they overdeliver on benefits they are to provide.
False
What "people factors" influence the quality of the project estimates?
Familiarity with the task Individual skills
Bottom up estimating is considered by the authors to be more accurate than top down because...
It considers specific tasks.
Match the factor that causes inaccurate time and cost estimates to its root cause because of which the factor occurs. Instructions
Normal conditions do not apply matches -------- Estimations should be based on past experience with resource availability, but while this is a good starting point, it rarely holds true during a project. Scope creep ----- As the project progresses, a manager better understands what needs to be done to accomplish the project; plans may change without adequate documentation. Things go wrong matches ---- The guideline is not to plan for disaster or accidents while estimating a specific task, but in reality, events happen which affect time and cost estimates.
What estimating influence is described by the general statement that some organizations encourage padding of estimates while others discourage the practice and want the most realistic and/or accurate estimate?
Organization Culture
Which is a significant concern with using consensus for top down project estimating?
People may yield to the opinion of the highest ranking person in the room.
Which of the following statements summarize why estimates are generally so inaccurate?
Predicting the future is difficult. Lack of information in the planning phase.
Which of the following factors will influence the quality of a project's time or cost estimate?
Project management structure Organization culture Project duration
Work package estimates should not include allowances for ____
contingencies
In the software industry, software development projects are frequently estimated using weighted macro variables called ______ _____ or major parameters such as number of inputs, number of outputs, number of inquiries, number of data files, and number of interfaces.
function points
Time and cost devoted to managing ______________ rises exponentially as the number of people and different disciplines involved increases on a project.
interactions
Top management interests usually center on the total project and major ____ events that mark major accomplishments.
milestone
Estimates are supposed to be based on _____ conditions.
normal
The time estimate should represent the ____ level of resources.
normal
Work package estimates should assume ___ or ___ conditions, even though every work package will not materialize as planned.
normal average
A white elephant mega project is one that is ___. (Check all that apply.)
over budget cost exceeds benefits under value
In some cases people are inclined to ____ estimates.
pad
The _____ factor can influence the quality of time and cost estimates.
people
At the work package level, estimates should be made by the _____ most familiar with the task.
persons
Top down estimating for projects is best suited for situations when ___.
project proposals are being evaluated. a WBS cannot easily be defined.
Contractors frequently use number of square feet to estimate the cost and time to build a house. This is an example of the ___ method.
ratio
Top-down methods, sometimes called parametric, usually use _____ to estimate project times or costs.
ratios or surrogates