PMI PMI-SP PMI Scheduling Professional Exam Practice Test

Corrective actions should be taken to move the results of the project work back into alignment with the project scope. The project team must start their activities on time and finish on time. A corrective action is a change implemented to address a weakness identified in a management system. Normally corrective actions are implemented in response to a customer complaint, abnormal levels of internal nonconformity, nonconformities identified during an internal audit or adverse or unstable trends in product and process monitoring such as would be identified by SP

C. It is method of identifying and eliminating the causes of a problem, thus preventing their reappearance. Examples of a corrective action are :Improvements to maintenance schedulesImprovements to material handling or storage

Answer option C is incorrect. Management reserve is time and funds allotted for unforeseen issues and risks within the project.

Answer option A is incorrect. Padding each estimate may cause the project to succumb to Parkinson's Law: work expands to fill the amount of time allotted to it. In addition, the project team may still delay the start time of their project assignments.

Answer option B is incorrect. Disciplining the project team may be a good option if the problem continues. The best option is to first apply corrective actions.

The rough order of magnitude (ROM) estimate is used early in the project when there is not much information available to create a time estimate. Rough order of magnitude estimates can have a range of variance as large as -25% to +75 percent. While ROM is mostly used with cost estimates, it can be used with time estimates too. Rough order of magnitude (ROM), also known as ball park estimate, is a rough approximation, made with a degree of knowledge and confidence that the estimated figure falls within a reasonable range of values. ROM range can vary from half to twice (-50 to +100) the actual cost.

Answer option B is incorrect. Broad estimate is not a valid time estimating type.

Answer option D is incorrect. Expert judgment is what the project manager used in this scenario to create the time estimate, but it is not a time estimating type.

Answer option A is incorrect. An analogous estimate is based on historical information from a similar project. For example, Project A took 8 months to complete and Project B, while similar but larger, will take 10 months to complete.

Identification of the project risks is not part of the process improvement plan. Identify risks is a risk management process, and risks are recorded in the risk register.

Answer options A, B, and C are incorrect. Process boundaries, Process configuration and Targets for improved performance are parts of the process improvement plan.

Forecasting method is a technique used in generating performance reports. Forecasting is the process of estimating or predicting in unknown situations. Forecasting is about predicting the future as accurately as possible with the help of all the information available, including historical data and knowledge of any future events that might impact forecasts. The forecasting methods are categorized as follows: Time series method: It uses historical data as the basis for estimating future outcomes. Causal/econometric method: This forecasting method is based on the assumption that it is possible to identify some factors that might influence the variable that is being forecasted. If the causes are understood, projections of the influencing variables can be made and used in the forecast. Judgmental method: Judgmental forecasting methods incorporate intuitive judgments, opinions, and subjective probability estimates. Other methods: Other methods may include probabilistic forecasting, simulation, and ensemble forecasting. It is one of the tools and techniques of the report performance process.

Answer option A is incorrect. Work performance information is the data gathered on the status of the project schedule activities that are performed to accomplish the project work. This data is collected as part of the Direct and Manage Project Execution processes. WPI includes the following: Deliverables status Schedule Progress Costs incurred It is used as an input in generating the report performance process.

Answer option C is incorrect. Work performance measurements are created from the work performance information. WPMs are an output of Control schedule, Control cost, and Control scope processes, which are monitoring and controlling processes. WPMs consist of planned versus actual performance indicators with respect to scope, schedule, and cost. They are documented and communicated to the stakeholders and are used to make project activity metrics, such as the following: Planned vs. Actual Technical performance and Scope performance Planned vs. Actual Schedule performance Planned vs. Actual Cost performance They are used as an input in generating the report performance process.

Answer option B is incorrect. Change requests are requests to expand or reduce the project scope, modify policies, processes, plans, or procedures, modify costs or budgets or revise schedules. These requests for a change can be direct or indirect, externally or internally initiated, and legally or contractually imposed or optional. A Project Manager needs to ensure that only formally documented requested changes are processed and only approved change requests are implemented. It is an output of the report performance process.

A good project manager must have all of the above mentioned skills. Out of these, the communication skills are the most important skills for a project manager. Communications skills are part of general management skills and are used to exchange information. Communication has many dimensions: Written and oral, listening, and speaking Internal (within the project) and external (customer, the media, the public) Formal (reports, briefings) and informal (memos, ad hoc conversations) Vertical (up and down the organization) and horizontal (with peers) Communication is the most important skill that a project manager must posses. It is the single most important characteristics of a top-class project manager. Project managers must communicate well in order to integrate and maximize the performance of team members. Oral and written communications are the backbone of every successful project. During different phases of a project, a project manager requires to communicate through different manners (for example, documentation, meeting updates, etc.) and he must ensure that the information communicated is explicit, clear, and complete.

Answer options E, C, A, and B are incorrect. All these mentioned skills make a person a good project manager. Communication skills top the list. What are organizational skills? Organizational skills are part of management skills to organize various aspects of a project in order to complete it successfully. A good project manager uses these skills to successfully organize his meetings, as well as to keep documentations, quotes, contracts, etc., which can be fetched at any given moment. Organizational skills also include planning and time management skills. What are budgeting skills? Budgeting skills include the knowledge of finance and accounting principles. A project manager must possess these skills in order to perform cost estimates for project budgeting. Reading and understanding quotes, preparing purchase orders, and reconciling purchase invoices are all part of budgeting skills. In order to make the budget of a project, the project manager must have excellent budgeting skills. What are problem solving skills? Problem solving skills include the ability to define and analyze problems, and to take decisions in order to solve the problems by implementing those decisions. Every project manager must possess strong problem solving skills. Problem solving is a two-fold process: Defining the problem Taking a decision and then implementing it A project manager is responsible for determining the best course of action to take in order to resolve the problem. What are negotiating and influencing skills? Negotiating skills includes demanding and convincing others for the rightful thing or act. A project manager needs this skill to negotiate on projects in almost every area such as scope definitions, budgets, contracts, resource assignments, schedules, etc. Influencing skills include the convincing power of a person. It is an ability to change minds and the course of events. A good project manager requires these skills to utilize them in all areas of project management.

Schedule compression is a tool used as part of the Schedule Development process. The tools and techniques for schedule development are as follows:

Schedule network analysis

Critical path method

Critical chain method

Resource leveling

What-if scenario analysis

Applying leads and lags

Schedule compression

Scheduling tool

Answer options D, B, and C are incorrect. These are not tools and techniques for schedule development.

Crashing adds more workers to the project team. Crashing allows the project to complete faster because there are more people helping with the project work.

Answer option D is incorrect. Reducing the project scope is called descoping or project scope changes.

Answer option A is incorrect. Crashing does not consider the working hours.

Answer option B is incorrect. Resource leveling actually increases the project duration.

Constructability analysis takes into account the location, logistics, resource availability analysis, the average price of general labor in the area, and labor productivity studies from previous similar projects in the area. Constructability analysis is a process that starts in the initial planning phases and persists all over the entire planning cycle and into the implementation phase of the project. Constructability analysis during the planning process examines the methods and cost of installed equipment and materials, technology, site conditions, resources, and related infrastructure. The benefit of constructability analysis is to reduce both the time and cost of a project. Constructability analysis is repeatedly performed throughout the life-cycle of a project in order to optimize cost, plan, and schedule while mitigating risk. It is a very important process that needs to be performed early in planning to allow alternatives to be considered and integrated into the design.

Answer option A is incorrect. This comes under the quality assurance phase.

The schedule performance index can be found by dividing the earned value by the planned value. In this project, it's $447,000 divided by the $558,750 for a value of 0.80. Schedule performance index (SPI) is the measure of schedule efficiency on a project. It is used in trend analysis to predict future performance.

SPI is the ratio of earned value to planned value. The SPI is calculated based on the following formula:

SPI = Earned Value (EV) / Planned Value (PV)

If the SPI value is greater than 1, it indicates better than expected performance, whereas if the value is less than 1, it shows poor performance. The SPI value of 1 indicates that the project is right on target.

Answer option A is incorrect. "80" is not the same value as ".80".

Answer option B is incorrect. 1.02 is the cost performance index.

Answer option C is incorrect. 102 is not a valid calculation for this question.

Cost performance index (CPI) is used to calculate performance efficiencies. It is used in trend analysis to predict future performance. CPI is the ratio of earned value to actual cost. The CPI is calculated based on the following formula: CPI = Earned Value (EV) / Actual Cost (AC) If the CPI value is greater than 1, it indicates better than expected performance, whereas if the value is less than 1, it shows poor performance. The CPI value of 1 indicates that the project is right on target. In this instances it is $270,000 divided by $335,000 for a CPI of .81.

Answer option B is incorrect. .67 is actually the schedule performance index.

Answer option D is incorrect. -$65,000 is the cost variance for the project.

Answer option A is incorrect. -$135,000 is the schedule variance of the project.

The role of operations manager is to perform various management roles in a core business area, such as research and development, design, manufacturing, provisioning, testing, or maintenance. The operations manager directly deals with constructing and maintaining the saleable products or services of the enterprise.

Answer option C is incorrect. A project manager is an expert in the field of project management. He is responsible for the entire project from inception to completion. The project manager leads the team and helps negotiate the multiple relationships within any project whether with clients, team members, firm principals or any variety of partners and functions as the hub of a project.

Answer option A is incorrect. The role of a functional manager is to perform various management roles within an administrative or functional area of the business, such as human resources, finance, accounting, or procurement. He is assigned his own permanent staff to carry out the ongoing work. He should have a clear directive to manage all tasks within his functional area of responsibility.

Answer option D is incorrect. Seller is also known as a vendor, supplier or contractor. They are external company's elements that enter into a contractual agreement to provide components or services necessary for the project.

A milestone is simply a significant point or event in the project. It does not have to be assigned to a specific date, but is usually assigned to the completion of project phases. A milestone is the end of a stage that marks the completion of a work package or phase, typically marked by a high level event such as completion, endorsement or signing of a deliverable, document or a high level review meeting. In addition to signaling the completion of a key deliverable, a milestone may also signify an important decision or the derivation of a critical piece of information, which outlines or affects the future of a project. In this sense, a milestone not only signifies distance traveled (key stages in a project) but also indicates direction of travel since key decisions made at milestones may alter the route through the project plan. To create a milestone, enter 0 (zero) in the Duration field. The task will automatically be classified as a milestone.

Answer option C is incorrect. This is a project constraint.

Answer option B is incorrect. A project goal is an objective for time, cost, scope, and other metrics.

Answer option D is incorrect. All activities must be completed in order to complete the project work. Activities that are not completed are quality issues that prevent the project from completing the project scope.

According to the question, you are required to calculate the cost performance index (CPI) of the project. Cost performance index (CPI) is used to calculate performance efficiencies. It is used in trend analysis to predict future performance. CPI is the ratio of earned value to actual cost. The CPI is calculated based on the following formula: CPI = Earned Value (EV) / Actual Cost (AC) If the CPI value is greater than 1, it indicates better than expected performance, whereas if the value is less than 1, it shows poor performance. The CPI value of 1 indicates that the project is right on target. Now, putting the provided values in the formula: CPI = EV / AC = 325 / 410 = 0.792 As the CPI 0.792 is lesser than 1, it shows that the schedule performance is below expectation. What is BCWP (or EV)? Budgeted cost of work performed (BCWP) or Earned Value (EV) is the value of completed work. It is the budgeted amount for the work actually completed on the schedule activity during a given time period. What is BCWS (or PV)? Budgeted Cost of Work Scheduled (BCWS) or Planned Value (PV) is the authorized budget assigned to the scheduled work to be accomplished for a schedule activity or Work Breakdown Structure (WBS) component. What is ACWP (or AC)? Actual cost of work performed (ACWP) or Actual Cost (AC) is the total costs actually incurred and recorded in accomplishing work performed during a given time period for a schedule activity. It is the cost of the work to date, including direct and indirect costs. AC is money that has actually been expended to date.

This is an example of a three-point estimate. A three-point estimate records the optimistic, most likely, and the pessimistic duration, and then records an average for the predicted duration Three-point estimate is a way to enhance the accuracy of activity duration estimates. This concept is originated with the Program Evaluation and Review Technique (PERT). PERT charts the following three estimates: Most likely (TM): The duration of activity based on realistic factors such as resources assigned, interruptions, etc.

Optimistic (TO): The activity duration based on the best-case scenario

Pessimistic (TP): The activity duration based on the worst-case scenario

The expected (TE) activity duration is a weighted average of these three estimates:

TE = (TO + 4TM + TP) / 6

Duration estimates based on the above equations (sometimes simple average of the three estimates is also used) provide more accuracy. It can be calculated as follows:

TE = ( 20 + 45*4 + 90) / 6

= 290/6

=48

Answer options B, C, and D are incorrect. These are not the valid answers for this question.

This project is not performing well on schedule, but moderately well on costs. The project's TCPI based on the current BAC is 1.02. To-complete Performance Index (TCPI) is the measured projection of the anticipated performance required to achieve either the BAC or the EAC. TCPI indicates the future required cost efficiency needed to achieve a target EAC (Estimate At Complete).Once approved, the EAC supersedes the BAC as the cost performance goal. Any significant difference between TCPI and the CPI needed to meet the EAC should be accounted for by management in their forecast of the final cost. The formula for TCPI is as follows:

TCPI = {(BAC-EV)/(BAC-AC)}

Answer option D is incorrect. 0.95 is the project's TCPI value based on the estimate at completion.

Answer option C is incorrect. 0.75 is the project's schedule performance index.

Answer option B is incorrect. 0.010 is not a valid calculation.

A corrective action is a change implemented to address a weakness identified in a management system. Normally corrective actions are implemented in response to a customer complaint, abnormal levels of internal nonconformity, nonconformities identified during an internal audit or adverse or unstable trends in product and process monitoring such as would be identified by SP

C. It is method of identifying and eliminating the causes of a problem, thus preventing their reappearance. Examples of a corrective action are : Improvements to maintenance schedules Improvements to material handling or storage

Answer option A is incorrect. Lessons learned is a documentation of the errors and how they were resolved, not a method to prevent the errors from occurring again.

Answer option C is incorrect. Preventive action addresses any action or act in which the project management team and the team leader provide documented direction to carry out an activity that is meant to decrease the possibility of negative consequences related to project risk.

Answer option B is incorrect. Risk analysis examines the risk events, its probability, and its impact on the project.

Any meetings, phone calls with multiple participants, or conferences are examples of the interactive communications.

Answer option B is incorrect. Active communication is not a PMBOK term for project management.

Answer option D is incorrect. A push technique describes a distribution from the project manager out to the message recipients, such as email.

Answer option C is incorrect. A pull technique describes a distribution method where the recipients of the message pull the message from a source, such as a Web server.

The consultant is an example of expert judgment, as he is helping you and the project team to create the project elements. Expert judgment is a technique based on a set of criteria that has been acquired in a specific knowledge area or product area. It is obtained when the project manager or project team requires specialized knowledge that they do not possess. Expert judgment involves people most familiar with the work of creating estimates. Preferably, the project team member who will be doing the task should complete the estimates. Expert judgment is applied when performing administrative closure activities, and experts should ensure the project or phase closure is performed to the appropriate standards.

Answer option A is incorrect. The consultant may be considered a direct expense because the fees can only be assigned to your project work, but this is not the best choice for the question.

Answer option B is incorrect. An external requirement is not a valid choice for this question.

Answer option C is incorrect. A temporary resource is not a valid project management term.

The critical path is the path in the project network diagram with the longest duration. In project management, a critical path is the sequence of project network activities which add up to the longest overall duration. This determines the shortest time possible to complete the project. Any delay of an activity on the critical path directly impacts the planned project completion date (i.e. there is no float on the critical path). This project actually has two critical paths. Path ACGIJ takes 23 days. Path ACGHJ also takes 23 days. When Activity I decreases by three days the critical will still take 23 days to complete as Path ACGHJ remains a critical path.

Answer option A is incorrect. The duration of the critical path did not increase.

Answer option D is incorrect. The duration of the path ACGIJ will decrease to 20 days but the critical path will remain at 23 days.

Answer option B is incorrect. The critical path did not reduce to 17 days.

The consultant is an example of expert judgment, as he is helping you and the project team to create the project elements. Expert judgment is a technique based on a set of criteria that has been acquired in a specific knowledge area or product area. It is obtained when the project manager or project team requires specialized knowledge that they do not possess. Expert judgment involves people most familiar with the work of creating estimates. Preferably, the project team member who will be doing the task should complete the estimates. Expert judgment is applied when performing administrative closure activities, and experts should ensure the project or phase closure is performed to the appropriate standards.

Answer option A is incorrect. The consultant may be considered a direct expense because the fees can only be assigned to your project work, but this is not the best choice for the question.

Answer option B is incorrect. An external requirement is not a valid choice for this question.

Answer option C is incorrect. A temporary resource is not a valid project management term.

There is positive variance of $122,845 on Fred's project. Variances can be either positive or negative. Schedule variance (SV) is a measure of schedule performance on a project. The variance notifies that the schedule is ahead or behind what was planned for this period in time. The schedule variance is calculated based on the following formula: SV = Earned Value (EV) - Planned Value (PV) If the resulting schedule is negative, it indicates that the project is behind schedule. A value greater than 0 shows that the project is ahead of the planned schedule. A value of 0 indicates that the project is right on target.

Answer option C is incorrect. This is the project's variance at completion.

Answer option D is incorrect. This is the cost variance for the project.

Answer option A is incorrect. This is not a valid answer for the project.

Performance reports are distributed through the push technique. This means that the project manager distributes the reports regularly through a mechanism, such as email.

Answer option C is incorrect. One-to-one technique describes a conversation between two people.

Answer option B is incorrect. Many-to-many technique describes a conversation between many people.

Answer option D is incorrect. A pull technique describes the recipients of the report "pulling" the information, such as from a Website.

Total float is the time you can delay an activity without delaying the project end date, whereas free float is on each activity and does not affect the early start date of successor activities. Float, also called slack, is the amount of time an activity can be delayed without affecting any subsequent activities. There are two types of floats available: Free Float: It is the amount of time a schedule activity can be delayed without delaying the early start date of any immediately following schedule activities. Total Float: It is the total amount of time that a schedule activity may be delayed from its early start date without delaying the project finish date, or violating schedule constraint. Float is calculated by using the critical path method technique.

Answer options C, A, and D are incorrect. These are not accurate definitions of free float and total float.

The communications management plan will define who will receive what information.

Answer option B is incorrect. The project sponsor may be a recipient but the project communications management plan is the best selection.

Answer option A is incorrect. Functional management is not the best choice in a projectized structure.

Answer option D is incorrect. The project customer may receive a copy of the report, but the project communications management plan should direct the communications.

Of all the constraints listed only this is an external dependency, which can directly affect the project manager's control over the project work. If the BGH company is late delivering the software portion of the project, it will likely have an effect on the project's ability to complete the project on time.

Answer option B is incorrect. While regulations may affect the project timing, this is not the best choice.

Answer option D is incorrect. The $1,250,000 is an example of cost constraint.

Answer option A is incorrect. This is only constraint if the project team members are not available, or do not have the required skills to complete the project work.

A three-point estimate records the optimistic, most likely, and the pessimistic duration and then records an average for the predicted duration. Three-point estimate is a way to enhance the accuracy of activity duration estimates. This concept is originated with the Program Evaluation and Review Technique (PERT). PERT charts the following three estimates: Most likely (TM): The duration of activity based on realistic factors such as resources assigned, interruptions, etc. Optimistic (TO): The activity duration based on the best-case scenario Pessimistic (TP): The activity duration based on the worst-case scenario The expected (TE) activity duration is a weighted average of these three estimates: TE = (TO + 4TM + TP) / 6

Duration estimates based on the above equations (sometimes simple average of the three estimates is also used) provide more accuracy.

Here it is,

TE = ( 24 + 28*4 + 36) / 6

= 272/6

= 29 (approx)

Answer options B, D, and A are incorrect. These are not the valid answers for this question.

Crashing adds effort to the project activities. Activities that are of fixed duration, for example software testing, would not finish faster with added resources. Crashing is a schedule compression technique to obtain the greatest amount of compression for the least incremental cost. Crashing works for activities where additional resources will shorten the duration. Approving overtime, bringing in additional resources, paying to expedite delivery to activities on the critical path are examples of crashing.

Answer option D is incorrect. Activities on the critical path can be crashed.

Answer option C is incorrect. Activities with risks can be crashed.

Answer option A is incorrect. Additional quality control metrics are not necessary just because Holly elects to crash her project.

Work performance measurements are created from the work performance information. WPMs are an output of Control schedule, Control cost, and Control scope processes, which are monitoring and controlling processes. WPMs consist of planned versus actual performance indicators with respect to scope, schedule, and cost. They are documented and communicated to the stakeholders and are used to make project activity metrics, such as the following: Planned vs. Actual Technical performance and Scope performance Planned vs. Actual Schedule performance Planned vs. Actual Cost performance

Answer option A is incorrect. Work performance information is an input to the control schedule process and includes information on project progress and activity start and finish information.

Answer option C is incorrect. The project management plan is an input to the control schedule process.

Answer option B is incorrect. The project schedule is an input to the control schedule process.

Project monitoring should be worked out to verify all the working actions, including investments. Project monitoring helps the project staff to know how things are going, as well as giving early warnings of possible troubles and difficulties. The methods used in monitoring a project are as follows:

1.Reports: Reports will help to identify the progress and problems easily and early. Reports must be completed in a standardized form at regular, predetermined intervals by all the team members. Reports should be short and brief.

2.Diaries: It is a helpful way of recording information.

3.Finances: An understanding of the basic concepts of project fianance are important in making a project. Careful budgeting and planning will provide a great help in finance. 4.Meeting: There should be periodic meeting of team members to resolve the issues. This will help to monitor the problems easily and efficiently.

Answer option D is incorrect. This is the information that is used for monitoring to be useful. It is not a monitoring method.

Terri is using the critical path method in this example. The question acknowledges that Terri has identified float and the critical path, but it makes no mention of the availability of project resources - something the critical chain method focuses on. Critical Path Method, abbreviated CPM, or Critical Path Analysis, is a mathematically based algorithm for scheduling a set of project activities. It is an important tool for effective project management. It provides the following benefits: Provides the graphical view of the project. Predicts the time required to complete the project. Shows which activities are critical to maintain the schedule and which are not. CPM models the activities and events of a project as a network. Activities are depicted as nodes on the network, and events that signify the beginning or ending of activities are depicted as arcs or lines between the nodes.

Answer option A is incorrect. The question does not indicate that Terri is concerned with the availability of project resources - as she would be if she were using the critical chain method.

Answer option B is incorrect. The risk analysis method is not a valid scheduling technique.

Answer option C is incorrect. Activity on the arrow method is not being described in this question.

The integrated change control process reviews proposed changes and determines what effect the change will have on the entire project. This includes scope, time, cost, quality, human resources, communication, risk, and procurement. Integrated change control is a way to manage the changes incurred during a project. It is a method that manages reviewing the suggestions for changes and utilizing the tools and techniques to evaluate whether the change should be approved or rejected. Integrated change control is a primary component of the project's change control system that examines the affect of a proposed change on the entire project.

Answer option A is incorrect. Scope change control focuses only on the effect of the change on the project scope.

Answer option B is incorrect. Schedule change control focuses only on the effect of the change on the schedule.

Answer option D is incorrect. The Change Control Board is a committee of key stakeholders, usually management, the project manager, and the project customer, to evaluate proposed changes. This board, however, is not a project process.

The number of communication channels describes the number of opportunities for stakeholders to communicate amongst themselves and for communication to be broken down. To find the number of communication channels, you can use the formula of N(N-1)/2 where N represents the number of stakeholders.

Total number of communication channels = N(N-1)/2

= 755(755-1)/2

= 284,635

Answer option D is incorrect. This is the number of stakeholders.

Answer option C is incorrect. 569,270 is not a valid calculation of this formula.

Answer option B is incorrect. 570,025 is not a valid calculation of this formula.

The estimate at completion (EAC) formula is the Budget at Completion (BAC)/Cost Performance Index (CPI). In this instance, the CPI is .78 and the BAC is $344,000. Cathy's project isn't doing too well.

Answer option D is incorrect. This value represents the estimate to complete for the project.

Answer option B is incorrect. This value represents the negative cost variance.

Answer option A is incorrect. This value represents the negative value the project will have once all the work is completed.

Project Integration Management is one of the nine Project Management Knowledge areas. It comprises the following processes:

Develop Project Charter

Develop Preliminary Project Scope Statement

Develop Project Management Plan

Direct and Manage Project Execution

Monitor and Control Project Work

Integrated Change Control

Close Project

These processes occur throughout the project and are repeated quite often during the working of the project. They ensure that the various elements of the project are properly coordinated. What are the Project Management Knowledge Areas? The Project Management Knowledge Areas are groupings that bring together processes that have things in common. For example, Resource Planning, Cost Estimating, Cost Budgeting, etc., are part of the Project Cost Management knowledge group. These processes may or may not be part of different or same process groups. Guide to the PMBOK identifies forty- two processes that are arranged in nine knowledge areas. The knowledge areas are as follows:

Project Integration Management

Project Scope Management

Project Time Management

Project Cost Management

Project Quality Management

Project Human Resource Management

Project Communications Management

Project Risk Management

Project Procurement Management

Answer option A is incorrect. Quality Assurance is a part of the Project Quality Management knowledge area.

Cost performance index (CPI) is used to calculate performance efficiencies. It is used in trend analysis to predict future performance. CPI is the ratio of earned value to actual cost. The CPI is calculated based on the following formula: CPI = Earned Value (EV) / Actual Cost (AC) If the CPI value is greater than 1, it indicates better than expected performance, whereas if the value is less than 1, it shows poor performance. The CPI value of 1 indicates that the project is right on target. In this instance it's $350,000 divided by $425,000 for a CPI of .82.

Answer option B is incorrect. $350,000 is the earned value of the project.

Answer option A is incorrect. -$75,000 is the cost variance for the project.

Answer option D is incorrect. -$187,500 is the predicted variance at the completion of the project.

Corrective actions include contingency plans and workaround plans, which are valid risk responses.

Answer option B is incorrect. The technical performance measurement may be part of the analysis of the risk, but not part of the response.

Answer option A is incorrect. A risk audit may be appropriate once the risk event and response has been identified.

Answer option C is incorrect. The impact of the risk event may affect earned value management calculations, but EVM in and of itself is not a valid risk response.

PERT uses the formula of (O+4M+P)/6 to predict the duration of the project activities and the overall project schedule. Three-point estimate is a way to enhance the accuracy of activity duration estimates. This concept is originated with the Program Evaluation and Review Technique (PERT). PERT charts the following three estimates: Most likely (TM): The duration of activity based on realistic factors such as resources assigned, interruptions, etc. Optimistic (TO): The activity duration based on the best-case scenario Pessimistic (TP): The activity duration based on the worst-case scenario The expected (TE) activity duration is a weighted average of these three estimates: TE = (TO + 4TM + TP) / 6 Duration estimates based on the above equations (sometimes simple average of the three estimates is also used) provide more accuracy.

Answer option A is incorrect. This is not a valid formula.

Answer option D is incorrect. This almost describes the three-point estimate, but does not answer the question about PERT.

Answer option B is incorrect. This is the formula for the three-point estimate. Note the PERT, while similar, uses 4M and divides the result by six factors.

The project's Communications Management Plan defines what information will be distributed, when it will be distributed, to whom it will be distributed, and the modality of the information.

Answer option D is incorrect. The Schedule Management Plan defines the project work, when the project work will happen, resource utilization, and how the schedule will be monitored and controlled.

Answer option C is incorrect. There is a stakeholder management strategy, but not a Stakeholder Management Plan.

Answer option A is incorrect. The project's Scope Management Plan defines how the scope will be created, how the changes will be allowed, how the scope will be executed, monitored and controlled, and finally closed.

Of all the choices, only fast tracking is an option that would not increase project costs. Fast tracking allows phases of the project to overlap, but it does increase project risks. Fast tracking is a technique for compressing project schedule. In fast tracking, phases are overlapped that would normally be done in sequence. It is shortening the project schedule without reducing the project scope.

Answer option B is incorrect. Crashing adds labor to the project and increases project costs.

Answer option C is incorrect. Effort-driven activity analysis examines activities whose duration may be reduced by adding labor. This approach, however, increases project costs, as it is a form of project crashing.

Answer option D is incorrect. Rewards and recognitions are good incentives for the project team, but simply offering the reward does not decrease the duration of the project.

This is also known as a hammock activity, as the SS and FF relationship hangs off of the activities in the project network diagram. A hammock activity is a schedule or project planning term for grouping of subtasks that "hangs" between two end dates it is fixed to. It groups subtasks that are not related in the hierarchical sense of a Work Breakdown Structure. It also groups subtasks that are not related in a logical sense of a dependency where one subtask must wait for another. A hammock activity usually refers to report information that is time-dependent and lasts from the initial to the latest date of the activities it encompasses. By using a hammock activity, the top management is able to see an overview of the project without being besieged by details.

Answer option D is incorrect. Finish-to-start is the most common relationship between project activities in the project network diagram.

Answer option A is incorrect. Project management overhead describes the work that supports the project objectives, but is not linked directly to the project deliverables.

Answer option C is incorrect. A subproject is a discrete set of work that contributes to the project, but branches off the primary project work. A subcontract portion of the project is an example of a subproject.

The code of accounts is a hierarchical numbering system that uniquely identifies each deliverable of the WBS and segments the WBS by levels of numbering.

Answer option C is incorrect. Component numbering is not a valid term for project management.

Answer option B is incorrect. A chart of accounts is a financial tracking and assignment tool for common deliverables and activities an organization performs for its customers.

Answer option D is incorrect. Activity linkage sequencing is not a valid project management term.

The communications management plan needs to be updated whenever there is a change in the frequency, type, or audience of communication. The communication management plan is a document that contains information that is required by the stakeholders. It also documents when and how the information should be distributed. It describes the information delivery needs, its format and level of detail. The communication management plan is contained in or is a subsidiary of the project management plan.

Answer option D is incorrect. The project management plan is a collection of subsidiary plans, including the communications management plan.

Answer option A is incorrect. The scope of the project is not being changed in this example, so there is no need to update the plan.

Answer option B is incorrect. There is no plan by the name of performance management plan, so this choice is incorrect.

These are some communication activities that Tom uses to communicate with the team and the stakeholders. Communications skills are part of general management skills and are used to exchange information. Communication has many dimensions: Written and oral, listening, and speaking Internal (within the project) and external (customer, the media, the public) Formal (reports, briefings) and informal (memos, ad hoc conversations) Vertical (up and down the organization) and horizontal (with peers) Communication is the most important skill that a project manager must posses. It is the single most important characteristics of a top-class project manager. Project managers must communicate well in order to integrate and maximize the performance of team members. Oral and written communications are the backbone of every successful project. During different phases of a project, a project manager requires to communicate through different manners (for example, documentation, meeting updates, etc.) and he must ensure that the information communicated is explicit, clear, and complete.

Answer option C is incorrect. It is a technique to resolve conflict that arises while communicating with different parties.

The finish-to-start relationship type is the most common in a project network diagram. It means that the predecessor activity must finish before its successor activity can start. For example, the carpet must be installed before the painting activity can begin. What is precedence diagramming method (PDM) in sequence activities? Precedence diagramming method (PDM) is used in critical path methodology for building a project schedule network diagram that uses boxes or rectangles, referred to as nodes, to represent activities, and join each other with arrows that show the logical relationship that exists between them. This technique is also known as Activity-On-Node (AON).It includes four types of dependencies or logical relationships: Finish-to-start(FS): The initiation of the successor activity depends upon the completion of the predecessor activity. Finish-to-finish(FF): The completion of the successor activity depends upon the completion of the predecessor activity. Start-to-start(SS): The initiation of the successor activity depends upon the initiation of the predecessor activity. Start-to-finish(SF): The completion of the successor activity depends upon the initiation of the predecessor activity.

According to the question, you are required to calculate the cost performance index (CPI) of the project. Cost variance (CV) is a measure of cost performance on a project. The variance notifies if costs are higher than budgeted or lower than budgeted. The cost variance is calculated based on the following formula: CV = Earned Value (EV) - Actual Cost (AC) A positive value means that spending is less than budgeted, whereas a negative value indicates that costs are higher than originally planned for the project. Now, putting the provided values in the formula: CV = EV - AC = 320 - 400 = -80 As the value of CV (which is -80) is negative, it shows that the costs are higher than that have been planned for the project. What is BCWP (or EV)? Budgeted cost of work performed (BCWP) or Earned Value (EV) is the value of completed work. It is the budgeted amount for the work actually completed on the schedule activity during a given time period. What is BCWS (or PV)? Budgeted Cost of Work Scheduled (BCWS) or Planned Value (PV) is the authorized budget assigned to the scheduled work to be accomplished for a schedule activity or Work Breakdown Structure (WBS) component. What is ACWP (or AC)? Actual cost of work performed (ACWP) or Actual Cost (AC) is the total costs actually incurred and recorded in accomplishing work performed during a given time period for a schedule activity. It is the cost of the work to date, including direct and indirect costs. AC is money that has actually been expended to date.

Cost performance index (CPI) is used to calculate performance efficiencies. It is used in trend analysis to predict future performance. CPI is the ratio of earned value to actual cost. The CPI is calculated based on the following formula: CPI = Earned Value (EV) / Actual Cost (AC) If the CPI value is greater than 1, it indicates better than expected performance, whereas if the value is less than 1, it shows poor performance. The CPI value of 1 indicates that the project is right on target. In this instance, the earned value is $234,000 as the project work is 100 percent. The actual costs are $245,000.

Answer option D is incorrect. This is the schedule performance index value.

Answer option A is incorrect. This is the variance at completion for the project.

Answer option C is incorrect. There is enough information to find the answer.

The phone lines are the medium between the sender/encoder and the decoder/receiver. The communication model shows the traversal of information between two hosts, known as the sender and the receiver. The key components of the model are as follows: Encode: It is used to crypt or code the message into a language that is understood by others. Decode: It is used to decrypt the message back into the meaningful codes. Message and feedback message: It is the output of encoding. Noise: It is referred to anything, which interferes with the transmission and understanding of the message. Medium: It is the method used to convey the message. In the communication process, it is the duty of the sender to send clear and complete information to the receiver so that it is properly received by the receiver, and for confirming that it is properly understood. The duty of the receiver is to make sure that the information received is understood and acknowledged properly. A failure in communication can negatively impact the project.

Answer option A is incorrect. The sender is the person sending the message.

Answer option C is incorrect. The encoder is the outgoing fax machine.

Answer option D is incorrect. The transporter is not part of the communication model.