OPRE 3330: FINAL EXAM (CHAPTERS 4,6,7,8,9)
QUESTIONS WITH VERIFIED ANSWERS
Cost - Answers - - common cause of project failure
- resource to achieve specific objective in managing projects
- measured in monetary units
project cost management - Answers - The processes involved in planning, estimating,
budgeting, financing, funding, managing, and controlling costs so that the project can be
completed within the approved budget.
lack of resources - Answers - difficulty to secure the resources to complete the project
successfully on time
poor cost estimation - Answers - - when project manager is not experienced enough
- often leads to cost overruns
fixed costs - Answers - Costs does not change as production change throughout the life
of a project
variable costs - Answers - cost varies with the amount of work/production and changes
month to month
direct costs - Answers - - only occurs because of the project
- directly attributable to the project work
indirect costs - Answers - - overhead costs
- not associated with one specific project
units of measure - Answers - Each unit used in resources
Level of precision - Answers - The degree to which activity cost estimates will be
rounded up or down (e.g., US$100.49 to US$100, or US$995.59 to US$1,000), based
on the scope of the activities and magnitude of the project.
Level of Accuracy - Answers - The acceptable range used in determining realistic
activity duration estimates is specified and may include an amount for contingencies.
Estimate Costs - Answers - The process of developing an approximation of the
monetary resources needed to complete project activities.
Analogues Estimating - Answers - method for estimating the cost of a task using data
from similar projects
, parametric estimating - Answers - method that uses an algorithm to calculate the cost of
a task using data from project parameters
3-point estimation - Answers - uses a weighted average of three numbers to produce a
final estimate
three different values
optimistic cost estimate (O) - Answers - lowest possible cost in which an activity can be
completed under perfect circumstances
Most likely cost estimate (M) - Answers - most likely cost in which an activity can be
completed under normal circumstances
Pessimistic cost estimate (P) - Answers - highest possible cost which an activity can be
completed under a worst-case scenario
3-point estimation formula - Answers - (O+4M+P)/6
Bottom-Up Estimating - Answers - Refers to the sum of estimates of each activity.
Reserve - Answers - - extra money in project budget to be used if necessary
- management reserve or contingency reserve
Contingency Reserve - Answers - The money held to pay for predictable but unspecified
extra costs.
Management Reserve - Answers - - money assigned to the project for unknown
possible costs and money that senior management controls
- money primarily available for changing project scope
Quality - Answers - - degree in which a set of inherent characteristics fulfills
requirements
- defines the stakeholders expectations
project quality management - Answers - refers to the processes and activities to ensure
that a project meets the defined needs from the customer's perspective
ISO 9000 series - Answers - collection of internationally accepted standards concerned
with quality management compiled by the international organization for standardization
Total quality management (TQM) - Answers - management technique or strategy that is
implemented to ensure everyone is aware of quality in all phases of the project during
the project lifecycle
QUESTIONS WITH VERIFIED ANSWERS
Cost - Answers - - common cause of project failure
- resource to achieve specific objective in managing projects
- measured in monetary units
project cost management - Answers - The processes involved in planning, estimating,
budgeting, financing, funding, managing, and controlling costs so that the project can be
completed within the approved budget.
lack of resources - Answers - difficulty to secure the resources to complete the project
successfully on time
poor cost estimation - Answers - - when project manager is not experienced enough
- often leads to cost overruns
fixed costs - Answers - Costs does not change as production change throughout the life
of a project
variable costs - Answers - cost varies with the amount of work/production and changes
month to month
direct costs - Answers - - only occurs because of the project
- directly attributable to the project work
indirect costs - Answers - - overhead costs
- not associated with one specific project
units of measure - Answers - Each unit used in resources
Level of precision - Answers - The degree to which activity cost estimates will be
rounded up or down (e.g., US$100.49 to US$100, or US$995.59 to US$1,000), based
on the scope of the activities and magnitude of the project.
Level of Accuracy - Answers - The acceptable range used in determining realistic
activity duration estimates is specified and may include an amount for contingencies.
Estimate Costs - Answers - The process of developing an approximation of the
monetary resources needed to complete project activities.
Analogues Estimating - Answers - method for estimating the cost of a task using data
from similar projects
, parametric estimating - Answers - method that uses an algorithm to calculate the cost of
a task using data from project parameters
3-point estimation - Answers - uses a weighted average of three numbers to produce a
final estimate
three different values
optimistic cost estimate (O) - Answers - lowest possible cost in which an activity can be
completed under perfect circumstances
Most likely cost estimate (M) - Answers - most likely cost in which an activity can be
completed under normal circumstances
Pessimistic cost estimate (P) - Answers - highest possible cost which an activity can be
completed under a worst-case scenario
3-point estimation formula - Answers - (O+4M+P)/6
Bottom-Up Estimating - Answers - Refers to the sum of estimates of each activity.
Reserve - Answers - - extra money in project budget to be used if necessary
- management reserve or contingency reserve
Contingency Reserve - Answers - The money held to pay for predictable but unspecified
extra costs.
Management Reserve - Answers - - money assigned to the project for unknown
possible costs and money that senior management controls
- money primarily available for changing project scope
Quality - Answers - - degree in which a set of inherent characteristics fulfills
requirements
- defines the stakeholders expectations
project quality management - Answers - refers to the processes and activities to ensure
that a project meets the defined needs from the customer's perspective
ISO 9000 series - Answers - collection of internationally accepted standards concerned
with quality management compiled by the international organization for standardization
Total quality management (TQM) - Answers - management technique or strategy that is
implemented to ensure everyone is aware of quality in all phases of the project during
the project lifecycle
