PROJECT MANAGEMENT FINAL EXAM-68 QUESTIONS AND ANSWERS

Critical Path Method -Originated from Du Pont's -Singe task times -AON network construction -repetitive jobs PERT -Orginated from US Navy -Multiple task time -AOA network construction -non repetitive jobs Brainpower Read More schedule performance index .79 SPI < 1 behind schedule SPI = 1 on schedule SPI > 1 ahead of schedule CPI financial efficiency ratio. CPI < 1 lack of utilizing resources CPI = utilizing CPI > 1 a head Project crashing method for accelerating a project or shortening the project duration by reducing the time of one or more of the critical activities Optimistic time the shortest length of time required under the best condition most likely time the most probable length of time under the normal condition pessimistic time the longest length of time required under the worst condition PERT's assumption -total project completion times follow a normal probability distribution -activity times are statistically independent Critical path the longest sequence of tasks based on task dependence assuming unlimited resources critical chain the longest sequence of tasks based on task dependence & resource dependence assuming limited resources uncertainty what cause project failure Manage uncertainty -set clear objectives -identify all the tasks -sequence the tasks logically -ask for the maximum resources -manage the project by focusing on the critical path -add an element of safety to each task to cover contingencies safety time -level 1: individual activity -level 2: work package -level 3: stage -level 4: projects Wasting safety time -Parkinson's law -student syndrome -multi-tasking Parkinson's law work expands so as to fill the time available for its completion Student syndrome wait to start on a task until the deliverable is immanent multi-tasking execute more than one task at the same time Protect individual task completion -add safety time to individual tasks -assuming that local optimization leads to global optimization -safety times are wasted Protect project completion time -aggregate individual safety times and add the aggregated safety time to the critical chain -assuming that local optimization does not lead to global optimization -safety times are not wasted principles of CCPS -protect the critical chain -roadrunner mentality -avoid multitasking Protect the critical chain -increase task focus on the critical chain -PMs must protect the people on the critical chain roadrunner mentality -no milestones -report the early completion -focus is on project completion, not task completion avoid multi-tasking -priopritization: prioritize the activities -focusing technical constraints constraints related to the network sequence in which project activities must occur resource constraints -people -materials -equipment -working capital time constrained project -a project that must be completed by an imposed date -time is fixed, resource are flexible -require the use of leveling techniques that focus on balancing or smoothing resource demands by using positive slack resource constrained project -a project in which the level of resources available cannot be exceeded -resources are fixed, time is flexible resource leveling -minimize resource requirements fluctuations -apply resources as uniformly as possible resource constrained -resources are fixed, time is flexible -require the use of leveling techniques that focus on balancing or smoothing resource demand by using positive slack budget is a plan that identifies the resources, goals and schedule that allows a firm to achieve those goals TBC total budget cost CBC cumulative budgeted cost CAC cumulative actual cost CEV cumulative earned value cumulative budgeted cost percent budgeted to have been spent cumulative actual cost percent actually spent cumulative earned value percent of work completed earned value method -jointly consider the impact of time, cost, and project performance on any analysis of current project status -allows for regular updating of a time-phased budgeted to determine schedule and cost variance control costs -analyze cost performance on a regular basis -evaluate negative cost variance -take corrective actions -reduce costs of activities -evaluate the trade off of cost and scope risk the uncertain event that, if happened, can jeopardize accomplishing the project objective