PM Chapter 5
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.
A worker can perform a task ______ the second time and each succeeding time she performs it.
Better or Faster
Direct costs are clearly _____ to a specific work package.
Chargeable
Organizational _____ shapes every dimension of project management.
Culture
Development of templates in a _____ can quickly reduce estimate errors.
Database
Cost of labor, materials, and equipment are examples of _____ costs.
Direct
_____ costs represent real cash outflows and must be paid as the project progresses
Direct
G&A overhead costs represent organization costs that are not ____ _____ to a specific project.
Directly linked
Which statements are correct about the influence that a planning horizon has upon project estimates?
Estimating is more accurate after the individual work packages have been defined. Near term event estimating is more accurate than long range planning.
Why is top down estimating generally not effective at developing a low cost project estimate?
Estimators may be influenced by the proposed budget.
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 of the following factors will influence the quality of a project's time or cost estimate?
Organization culture Project management structure Project duration
Direct ______ rates more closely pinpoint which resources of the organization are being used in the project.
Overhead
In some cases people are inclined to _____ estimates.
Pad
At the work package level, estimates should be made by the ____ most familiar with the task.
People
The ____ factor can influence the quality of time and cost estimates.
People
First-line managers' interests may be limited to one _______ or ________ ________
Task or Work package
Time to implement new _____ has a habit of expanding in an increasing, nonlinear fashion.
Technology
Which costs are examples of G&A overhead costs?
VP of Sales Advertising
Sometimes, top-down estimates are used until the tasks in the _____ are clearly defined.
WBS
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.
Factors outside of the organization, project team, or project itself may influence which aspect of a time/cost estimate?
Accuracy of the estimate
What are the benefits of using the resource (person) most familiar with a task to do estimating?
Builds communication channels early. Increases probability of accurate estimates. Establishes "buy in" for the project.
Which of the following are potential impacts caused by padding time or cost estimates?
Chances for realistic estimates are reduced The project duration and cost are seriously overstated
If the project is similar to past projects, then ____ methods can be used as a starting point for the new project.
Template
Which of the following is considered a direct overhead cost?
Temporary rental space for the project team Salary of the project manager
Identify the true statements about general and administrative (G&A) overhead costs.
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.
Which factors make it most difficult to accurately estimate the costs and benefits of mega projects?
Time horizon Complexity
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.
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 Approach
_______ _______ estimates usually are derived from someone who uses experience and/or information to determine the project duration and total cost.
Top-down
Detailed work package estimates are aggregated and "rolled up" by deliverable to estimate the:
Total direct cost of the project.
True or false: Poorly written scope statements for new technology lead to errors in estimating times and costs.
True
Why is the accuracy of estimates for current events greater than that for more distant events?
Uncertainty increases over time.
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.
Drawing on the expertise of team members who will be responsible helps to build ______ channels early.
Communication
Mega projects often cost much less than expected, but they overdeliver on benefits they are to provide.
False
Which of the following statements summarize why estimates are generally so inaccurate?
Flaws in the estimating process Uncertainty in predicting the future
What are the project characteristics that would benefit from phase estimating?
High degree of scope uncertainty Long duration with progressive design
When the learning curve can be applied, what effect does it have on project estimation?
Increases accuracy of time and cost estimates.
What "people factors" influence the quality of the project estimates?
Individual skills Familiarity with the task
Top management interests usually center on the total project and ____ major events that mark major accomplishments.
Milestone
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.
______ estimating is used when an unusual amount of uncertainty surrounds a project and it is impractical to estimate times and costs for the entire project.
Phase
Many firms collect time and cost data through the ______ ______
Project Office
Top down estimating for projects is best suited for situations when ___.
Project proposals are being evaluated. A WBS cannot easily be defined.