12 - PMP Lesson 12 Quiz

Which of the following is a tool and technique in the Control Scope process? A. Variance analysis B. Replanning C. Inspection D. Configuration management system

Workbook, Lesson 12, page 110, #1 Answer: A A variance analysis is a common tool/technique for the monitoring and controlling process, including the Control Scope process. A variance analysis evaluates any variance between the project baselines and the actual results.

A schedule performance index (SPI) of 0.8 suggests that the project is: A. Ahead of schedule to date B. Behind schedule to date C. On schedule D. None of the above are correct

Workbook, Lesson 12, page 110, #2 Answer: B An SPI of one indicates the project is on schedule, greater than 1 and the project is ahead of schedule and less than 1 the project is behind schedule. An SPI of 0.8 indicates the project is 20% behind schedule.

A project that has a negative cost variance and an SPI less than 1.0 means that the project is: A. Over-budget and ahead of schedule B. Under-budget and behind schedule C. Over-budget and behind schedule D. Under-budget and ahead of schedule

Workbook, Lesson 12, page 110, #3 Answer: C An SPI of one indicates the project is on schedule, greater than 1 and the project is ahead of schedule and less than 1 the project is behind schedule. A cost variance of 0 indicates the project is on-budget. A positive cost variance indicates the project is under-budget and a negative cost variance indicates the project is over-budget. As such, this project is over-budget and behind schedule. SPI: Schedule Performance Index

Based on the performance measures indicated in the following table, what is the schedule variance (SV) for case 3? ADD PICTURE Case_____PV______AC_______EV __1___$10,000___$8,000___$10,000 __2___$12,000___$10,000___$11,000 __3___$10,000___$8,000___$9,000 __4___$10,000___$8,000___$8,000 A. -1,000 B. 1,000 C. 2,000 D. -2,000

Workbook, Lesson 12, page 110, #4 Answer: A Schedule variance (SV) = earned value (EV) - planned value (PV) $9,000 - $10,000 = ($1,000)

A cost performance index (CPI) of 0.8 suggests the project is: A. Under-budget to date B. Over-budget to date C. On budget D. None of the above are correct

Workbook, Lesson 12, page 110, #5 Answer: B A CPI of one indicates the project is right on budget. A CPI less than one indicates the project is over budget and a CPI greater than one indicates the project is under budget. A CPI of 0.8 indicates the project is 20% over budget. CPI: Cost Performance Index

Which formula is used to calculate EAC? A. AC + BAC - EV B. AC / EV C. ETC - AC D. BAC - CPI

Workbook, Lesson 12, page 110, #6 Answer: A There are three formulas to calculate the estimate at completion (EAC): EAC = AC + BAC - EV EAC = BAC/CPI EAC = AC + ETC AC: Actual Cost BAC: Budget at completion CPI: Cost Performance Index EAC: Estimate at completion ETC: Estimate to Complete EV: Earned Value

The $450,000 project is 75% complete as of month six. The budget was allocated at $50,000 per month for nine months and the invoices paid-to-date are $325,000. What is the TCPI of this project? A. 0.9 B. 1.11 C. ($12,500) D. $12,500

Workbook, Lesson 12, page 110, #7 Answer: A TCPI = (BAC - EV) / (BAC - AC) BAC = $450,000 EV = $337,500 AC = $325,000 TCPI = ($450,000 - $337,000) / ($450,000 - $325,000) TCPI = $112,500 / $125,000 TCPI = 0.9 AC: Actual Cost BAC: Budget at completion EV: Earned Value TCPI: To-complete Performance Index

The kitchen remodel project for the Jones family appears to be running behind. As the project manager, you evaluate the construction team's work performance information. Based on the information you receive, the $30,000 project appears to be about 40% complete. Work billed to date was $10,000 although the project budget indicates that the anticipated costs were to be $12,000 by this date. When you follow-up with the construction team lead, he estimates that there will be approximately $15,000 in remaining costs. The EAC for this project is: A. $28,000 B. $37,000 C. $25,000 D. $22,500

Workbook, Lesson 12, page 111, #10 Answer: C In reading the scenario, there is no indication of an unexpected cost variance. As such the formula for EAC will be EAC = AC + ETC. AC = $10,000 ETC = $15,000 (the remaining costs) EAC = $10,000 + $15,000 = $25,000 AC: Actual Cost EAC: Estimate at completion ETC: Estimate to Complete

The kitchen remodel project for the Jones family appears to be running behind. As the project manager, you evaluate the construction team's work performance information. Based on the information you receive, the $30,000 project appears to be about 40% complete. Work billed to date was $10,000 although the project budget indicates that the anticipated costs were to be $12,000 by this date. When you follow-up with the construction team lead, he estimates that there will be approximately $15,000 in remaining costs. The status of the project is: A. Ahead of schedule and under budget B. On schedule and under budget C. Behind schedule and over budget D. Behind schedule and on budget

Workbook, Lesson 12, page 111, #11 Answer: B BAC = $30,000 EV = $12,000 AC = $10,000 PV = $12,000 CV = EV - AC = $12,000 - $10,000 = $2,000 (the project is under budget) SV = EV - PV = $12,000 - $12,000 = 0 (the project is on schedule) AC: Actual Cost BAC: Budget at completion EV: Earned Value PV: Planned Value SV: Schedule Variance

The process redesign project has been underway for six months and appears to be making good progress. However, to complete your quarterly review, you conduct an earned value analysis. This is a 12 month project with a budget of $50,000. The budget is allocated at $12,500 each quarter. Based on the status reports received the project is 60% complete and billed costs are $40,000. It appears that the project is over budget so you talk to the lead analyst. She tells you that there was an unexpected software cost during the 2nd moth of the project of $7,000 (included in the 40,000 above). A good portion of the project costs that will be billed will be resource costs (approximately 300 hours at a loaded resource rate of $80/hr). The SV and SPI for this project are: A. (10,000) and .75 B. .75 and (10,000) C. 5,000 and 1.2 D. (5,000) and 1.2

Workbook, Lesson 12, page 111, #12 Answer: C BAC = 50,000 EV = $30,000 PV = $25,000 ($12,500 x two quarters / 6 months) SV = EV - PV = $30,000 - $25,000 = $5,000 SPI = EV / PV = $30,000 / $25,000 = 1.2 BAC: Budget at completion EV: Earned Value PV: Planned Value SPI: Schedule Performance Index SV: Schedule Variance

The cost performance index (CPI) is calculated as follows: A. Divide the earned value (EV) by the actual cost (AC) B. Divide the earned value (EV) by the planned value (PV) C. Subtract the actual cost (AC) from the earned value (EV) D. Subtract the planned value (PV) from the earned value (EV)

Workbook, Lesson 12, page 111, #8 Answer: A CPI = EV/AC AC: Actual Cost CPI: Cost Performance Index EV: Earned Value

If the planned value (PV) is $275,000 and the earned value (EV) is $300,000, the schedule variance (SV) is: A. $25,000 B. -$25,000 C. $125,000 D. $575,000

Workbook, Lesson 12, page 111, #9 Answer: A SV = EV - PV SV = $300,000 - $275,000 = $25,000 EV: Earned Value PV: Planned Value SV: Schedule Variance

The process redesign project has been underway for six months and appears to be making good progress. However, to complete your quarterly review, you conduct an earned value analysis. This is a 12 month project with a budget of $50,000. The budget is allocated at $12,500 each quarter. Based on the status reports received the project is 60% complete and billed costs are $40,000. It appears that the project is over budget so you talk to the lead analyst. She tells you that there was an unexpected software cost during the 2nd moth of the project of $7,000 (included in the 40,000 above). A good portion of the project costs that will be billed will be resource costs (approximately 300 hours at a loaded resource rate of $80/hr). The CV and CPI for this project are: A. (10,000) and .75 B. .75 and (10,000) C. 5,000 and 1.2 D. (5,000) and 1.2

Workbook, Lesson 12, page 112, #13 Answer: A BAC = $50,000 EV = $30,000 AC = $40,000 CV = EV - AC = $30,000 - $40,000 = ($10,000) CV = EV / AC = $30,000 / $40,000 = 0.75 AC: Actual Cost BAC: Budget at completion CV: Cost Variance EV: Earned Value

You have just started in your new role in the PMO and one of your first assignments is to evaluate a technical development project to determine if the project is on time and within budget. Upon review of relevant project documentation, you find that the costs to date have been $180,000, the project is a 16-month project, and that after six months of work they are 25% complete. The overall budget for the project is $300,000, with the following allocation: IMAGE Month--------------2-----4-----6------8-------10-----12-----14-----16 Periodic Budget---10K---15K---45K---60K---40K---50K---70K---10K When you review the project with the project manager, she tells you that they were intending to use an inside resource for all of the programming, but the individual left the company. The programmer they are now using is from a contracting firm and as such, the resource rate for him went from $40/hr to $120/hr. Because programming was the majority of the work needed for the project, this will continue to affect the costs on the project. The SV and SPI for this project are: A. (5,000) and 1.07 B. (105,000) and .42 C. 1.07 and 5,000 D. 5,000 and 1.07

Workbook, Lesson 12, page 112, #14 Answer: D BAC = $300,000 EV = $75,000 PV = $70,000 (cumulative PV through period 6) SV = EV - PV = $75,000 - $70,000 = $5,000 SPI = EV / PV = $75,000 / $70,000 = 1.07 BAC: Budget at completion EV: Earned Value PV: Planned Value SPI: Schedule Performance Index SV: Schedule Variance

You have just started in your new role in the PMO and one of your first assignments is to evaluate a technical development project to determine if the project is on time and within budget. Upon review of relevant project documentation, you find that the costs to date have been $180,000, the project is a 16-month project, and that after six months of work they are 25% complete. The overall budget for the project is $300,000, with the following allocation: IMAGE Month--------------2-----4-----6------8-------10-----12-----14-----16 Periodic Budget---10K---15K---45K---60K---40K---50K---70K---10K When you review the project with the project manager, she tells you that they were intending to use an inside resource for all of the programming, but the individual left the company. The programmer they are now using is from a contracting firm and as such, the resource rate for him went from $40/hr to $120/hr. Because programming was the majority of the work needed for the project, this will continue to affect the costs on the project. The ETC for this project is: A. $275,000 B. $220,000 C. $534,000 D. $500,000

Workbook, Lesson 12, page 112, #15 Answer: C Based on the scenario, there is a typical variance. To calculate the ETC, start with calculating the EAC and subtract the AC. BAC = $300,000 EV = $75,000 AC = $180,000 CPI = EV / AC = $75,000 / $180,000 = 0.42 EAC = BAC / CPI = $300,000 / 0.42 = $714,285 ETC = EAC - AC = $714,285 - $180,000 = $534,285 (round up to $534,300) AC: Actual Cost BAC: Budget at completion EAC: Estimate at completion ETC: Estimate to Complete EV: Earned Value EVM: Earned Value Management

Vocabulary: A method of identifying the causes of differences between the baseline and the actual performance

Workbook, Lesson 12, page 113, #1 Answer: Variance analysis

Vocabulary: A comparison of the earned value (EV) and the actual cost (AC)

Workbook, Lesson 12, page 113, #10 Answer: Cost performance index

Vocabulary: The difference between the earned value (EV) and the actual cost (AC) as of the status date

Workbook, Lesson 12, page 113, #11 Answer: Cost variance

Vocabulary: A projection of the amount of budget deficit or surplus, expressed as the difference between the budget at completion and the estimate at completion

Workbook, Lesson 12, page 113, #12 Answer: Variance at completion

Vocabulary: A comparison of the earned value (EV) and the planned value (PV)

Workbook, Lesson 12, page 113, #13 Answer: Schedule performance index

Vocabulary: The forecasted amount of project spending for the remainder of the project

Workbook, Lesson 12, page 113, #14 Answer: Estimate to complete

Vocabulary: The forecasted amount of total project spending

Workbook, Lesson 12, page 113, #2 Answer: Estimate at completion

Vocabulary: The planned project spending upon completion of the project

Workbook, Lesson 12, page 113, #3 Answer: Budget at completion

Vocabulary: The total costs actually incurred during a given time period

Workbook, Lesson 12, page 113, #4 Answer: Actual cost

Vocabulary: A comparison of the work remaining to the funds remaining

Workbook, Lesson 12, page 113, #5 Answer: To-Complete Performance Index

Vocabulary: The authorized budget assigned to the work that will be accomplished as of the status date

Workbook, Lesson 12, page 113, #6 Answer: Planned Value

Vocabulary: A management methodology where performance is measured by determining the planned and actual value of the work and comparing it to the earned value of the work

Workbook, Lesson 12, page 113, #7 Answer: Earned value management

Vocabulary: The difference between the earned value (EV) and the planned value (PV) as of the status date

Workbook, Lesson 12, page 113, #8 Answer: Schedule variance

Vocabulary: The value of the work already performed on the project

Workbook, Lesson 12, page 113, #9 Answer: Earned value