15 | Monitoring and Controlling Project Constraints

Question 1

Verified Deliverables?

Answer 1

Verified deliverables are project products or results that are completed and verified for their
correctness after performing quality control. These deliverables are used as inputs during scope
validation of the project to determine if work is complete and satisfies project objectives

Question 2

Inspections?

Answer 2

An inspection is an official examination of work results to verify that requirements are met. It is sometimes referred to as a review, product review, audit, or walkthrough. An inspection may be conducted by an internal or external inspection team.

Question 3

During scope verification, an inspection

typically involves?

Answer 3

• Comparing baseline specifications and any approved changes to the actual project results.
• Determining the likelihood that remaining deliverables will be completed as promised.

• Identifying actions that may be needed to ensure that work results will meet the specifications, scope, or schedule and budget goals. In some cases, your team will be asked to conduct the inspection. In other cases, stakeholders may decide to ask an outside entity to either conduct the inspection or to participate with you in
conducting it.

Question 4

What are the 4 inspection report components?

Answer 4

1. Project baseline and status comparison:
   The comparison of baseline specifications, schedules, and budgets to the actual project results for the project phase or deliverable.
2. Overall project status:
   A discussion of whether the project as a whole is on track, or whether it is likely to deviate in some way from project plans.
3. Change recommendations:
   Based on the inspection result, recommended changes that will be needed in order to meet the specifications, scope, or schedule and budget goals.
4. Scope and methodology of the inspection:
   An explanation of what the audit attempted to prove, how it went about proving it, what measurements were used to determine conformance to requirements, and what assumptions or limitations influenced the way that data was collected.

Question 5

Variance?

Answer 5

Variance is the quantifiable deviation from the expected results for any component of a product and service being developed, including scope, quality, schedule, and cost. Variance can be extreme or almost undetectable; it may result from many internal and external causes, such as problems with resource availability, or from the skills of personnel assigned to the project. Variance may be
obvious the moment a product is produced or may become obvious over time through use and exposure to environmental conditions. To control quality, you must recognize the difference between quality variance within a normal range and variance that indicates a quality error.

Question 6

Variance Analysis?

Answer 6

Variance analysis is the comparison of the difference between the actual or predicted results and the original scope baseline or expected results. Any variances must be analyzed to determine whether they are acceptable or they merit corrective action to keep the performance within specifications. Scope control includes determining the cause and degree of variance relative to the scope baseline and deciding if any corrective or preventive action is necessary

Question 7

Work Performance Measurements?

Answer 7

Work performance measurements involve calculating the variance between the planned and actual technical performance or other scope performance measurements. The results of performance measurements are documented, generally consolidated in the form of performance reports, and then communicated to project stakeholders. The report may include items such as:

• Features of the product planned versus features of the product being delivered.
• Any addition to or deletion from the features list.
• New changes to the project scope

Question 8

Scheduling Tools?

Answer 8

Scheduling tools are tools that use updated schedule data combined with project management software or other methods to perform schedule network analysis and generate an updated project schedule. These tools accelerate the scheduling process by generating start and finish dates of activities based on their inputs, creating network diagrams, and producing resource and activity
duration.

Question 9

EVM stands for?

Answer 9

Earned Value Management (EVM)

Question 10

Earned Value Management (EVM)?

Answer 10

Earned Value Management (EVM) is a method of measuring project progress by comparing the actual schedule and cost performance against planned performance as laid out in the schedule and cost baselines. Assessing the value of work requires first determining what work has actually been performed and, therefore, what value it has contributed to the project.
During planning, project work is broken down into work packages and activities. Each work package is assigned a budget and schedule. Because each increment of work is time-phased, a Schedule Variance (SV) results when work is not completed as scheduled. It is always better to
understand the monetary value of work contribution as it relates to the schedule. Therefore, SV is often expressed in terms of the monetary value.

Question 11

PV stands for?

Answer 11

Planned Value.

Question 12

Planned Value (PV)?

Answer 12

Planned Value (PV) is the budgeted portion of the approved cost estimate to be spent during a particular time period to complete the scheduled project work. This amount is specified in the project’s cost baseline. In simpler terms, PV indicates the value of work to be done during a particular time period.

Question 13

EV stands for?

Answer 13

Earned Value.

Question 14

Earned Value (EV)?

Answer 14

Earned Value (EV) is a composite measurement of both cost and time performance in relation to scheduled or planned cost and time performance. EV is calculated by multiplying the percentage of work completed by the budgeted cost for the activity as laid out in the cost baseline.

In order to determine the EV of the project work to date, you will have to look back at the cost baseline to determine how costs were assigned originally. If the PV was determined by the percentage completed to date method, you will apply the same method of assessing the EV. In other words, EV indicates the value of work actually performed during a particular time period.

Question 15

EV Formula?

Answer 15

Earned Value (EV) = % completed x Planned Value (PV)

Question 16

AC stands for?

Answer 16

Actual Cost.

Question 17

Actual Cost (AC)?

Answer 17

Actual Cost (AC) refers to the total amount of costs incurred while accomplishing work performed, either during completion of a schedule activity or during the completion of a WBS component. Actual cost is calculated and documented once the work is complete. In other words, AC indicates the actual money that has been spent for work that has been completed.

Question 18

SV stands for?

Answer 18

Schedule Variance

Question 19

Schedule Variance (SV) formula?

Answer 19

• Schedule Variance (SV = EV-PV)
• A positive SV indicates that the project is ahead of schedule.
• A zero SV indicates that the project is on schedule.
• A negative SV indicates that the project is behind schedule.

Question 20

SPI stands for?

Answer 20

Schedule Performance Index (SPI)

Question 21

Schedule Performance Index (SPI) formula?

Answer 21

• Schedule Performance Index (SPI = EV/PV)
• An SPI number greater than 1.0 indicates that the project is ahead of schedule.
• An SPI of 1.0 means the project is on schedule.
• An SPI number less than 1.0 indicates that the project is behind schedule.

Question 22

Schedule Control Chart?

Answer 22

Another tool you can use to illustrate schedule performance is the schedule control chart. This
chart can be used to show trends in schedule performance. The following graphic is an example of a
schedule control chart plotting the variance in the schedule and shows that the project started behind schedule and that corrective action was probably taken to bring the project back in line with planned schedule estimates.

Question 23

Gantt Chart?

Answer 23

A Gantt chart is an effective tool for providing up-to-date summary information and can be extremely helpful for analyzing the project’s overall time performance. The Gantt chart also shows when milestones are scheduled and if those critical dates are still on track. Using the approved schedule baseline as the standard for measuring progress, the project manager can collect reporting information for each activity and use a Gantt chart to summarize data.

Question 24

What are the EVM Measures for Schedule Control?

Answer 24

1. Schedule Variance (SV)

2. Schedule Performance Index (SPI)

Question 25

What are the EVM Measures for Cost Control?

Answer 25

1. Cost Variance (CV)

2. Cost Performance Index (CPI)

Question 26

Cost Variance (CV) Formula?

Answer 26

• Cost Variance (CV = EV - AC)
• A positive CV indicates that the project is performing under budget.
• A zero CV indicates that the project is on budget.
• A negative CV indicates that the project is performing over budget.

Question 27

Cost Performance Index (CPI) formula?

Answer 27

• Cost Performance Index (CPI = EV / AC)
• A CPI number greater than 1.0 indicates that the project is under budget.
• A CPI of 1.0 means the project is on budget.
• A CPI number less than 1.0 indicates that the project is over budget

Question 28

Cost Control Chart?

Answer 28

The cost control chart can be used to illustrate trends in cost performance. The following graphic shows the cost variance over time, using data for actual cost and earned value. The actual cost is always greater than the earned value, and we can conclude that the project is progressively more over budget as time goes on.

Question 29

Performance reviews?

Answer 29

Performance reviews are meetings held to review the schedule activity, work package, or cost account status and progress, usually in concurrence with one or more performance reporting techniques.

Question 30

What are the 3 performance reporting techniques?

Answer 30

1. Variance analysis
2. Trend analysis
3. Earned value performance

Question 31

Variance analysis?

Answer 31

Comparing actual project performance to projected performance. For the most part, cost and schedule variances are analyzed. However, variances from the project scope, resource, quality, and risk are taken
into consideration.

Question 32

Trend analysis?

Answer 32

Inspecting project performance over a period of time to determine if performance is increasing or decreasing.

Question 33

Earned value performance?

Answer 33

Compares the baseline plan to actual performance.

Question 34

Estimate to Complete (ETC) explained and formula?

Answer 34

The total budgeted cost of the project at completion.

ETC = BAC - EV or (BAC - EV) / CPI

Question 35

Estimate at Completion (EAC)

using new estimate explained and formula?

Answer 35

The forecasting technique, based on an updated, mid-project
estimate. This method requires making a new ETC for all
remaining project work and adding that estimate to the ACs
incurred to date. It should be used when original estimating
assumptions are flawed and conditions have changed.

EAC = AC + ETC

Question 36

Estimate at Completion (EAC)

using remaining budget?

Answer 36

This forecasting method uses the sum of the ACs and the
Budget at Completion (BAC) minus the EV. It should be
used when current cost variances are atypical of future
variances.

EAC = AC + BAC - EV

Question 37

Estimate at Completion (EAC)

using CPI explained and formula?

Answer 37

This forecasting method involves adding the AC to the
difference of the BAC and the EV divided by the CPI. It
should be used when current variances are typical of future variances.

EAC = AC + ((BAC - EV) / CPI) or EAC = BAC / CPI

Question 38

Variance at Completion (VAC) explained and formula?

Answer 38

The estimated cost overrun or underrun for completing project work. A negative VAC indicates a project overrun; a positive VAC indicates a project underrun.

VAC = BAC - EAC

Question 39

To-Complete Performance

Index (TCPI) based on BAC explained and formula?

Answer 39

An indicator of the usage of resources for the remainder of the project.

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

Question 40

To-Complete Performance Index

(TCPI) based on EAC explained and formula?

Answer 40

If management decides that the BAC is not achievable, a new EAC is created by the project manager.

TCPI = (BAC - EV) / (EAC - AC)

Question 41

Quality Control Measurements?

Answer 41

Quality control measurements are measurements used to assess a product’s adherence to the specified standards. The measurements used may be quantitative or qualitative. Quality control measurements can be used to measure the quality of elements such as products, processes, and performance.

Question 42

Causes of Variance?

Answer 42

Causes of variance in a process or item are the sources or reasons for deviations from the expected standard.

Question 43

What are the 2 types of causes of variance?

Answer 43

1. Random

2. Special

Question 44

Cause of variance | Random?

Answer 44

Random, or common, causes are those everyday occurrences that are always present in project work;
as such, they may be unavoidable. They may be either insignificant and have little impact on the overall quality performance or they may have a dramatic effect on quality. The corrective actions taken in response to random causes of variance are typically long term and generally involve overall changes to the process.

Question 45

Cause of variance | Special?

Answer 45

Special, or assignable, causes are unusual, sporadic occurrences; they are the result of some unexpected circumstance and are typically not caused by a flaw in the overall production process. Like random causes, special causes of variance can also have a dramatic effect on performance. By analyzing instances of the occurrences of special variances, you may be able to isolate the cause and take corrective action to avoid the negative effects on quality performance. The corrective actions taken in response to special causes of variance are typically short term and do not involve overall
changes to the process. Special causes do not occur frequently, but it can sometimes be decided not to act upon them because the cost of action may be much more than the benefit.

Question 46

Significance?

Answer 46

Significance of the variance analysis is the weight or importance given to variances to determine whether and what type of corrective action needs to be taken. The project manager must determine the significance of the variance, keeping the balance of the three main constraints in mind.

For example, if the cost variance is $5,000 on a $5 million project, the significance is very low. If the cost variance is $5,000 on a $50,000 project, the significance is much higher.

Question 47

Root Cause Analysis?

Answer 47

Root cause analysis is a technique used to determine the true cause of a problem that when removed, prevents the problem from occurring again.

Question 48

Tolerances?

Answer 48

Tolerances are measurement values that determine if a product or service is acceptable or unacceptable. They are the standards against which data collected will be analyzed. Tolerances are typically expressed in ranges. If the result of the test falls within the range specified by the tolerance, it is acceptable. If not, it is considered unacceptable. Tolerances are specified in the quality
management plan.

Question 49

The Six Sigma Process?

Answer 49

Six Sigma has also evolved into a business management strategy that seeks to improve the quality of process outputs by identifying and removing the causes of defects and variability in processes. To achieve process Six Sigma, a process must not produce more than 3.4 defects per million opportunities.

Question 50

Histograms?

Answer 50

Histograms are quality control tools that organize individual measured values in a data set according to the frequency of occurrences. Frequency can be either the number or percentage of occurrences. Histograms can be used to track many items, such as the frequency of failures. Histograms show the shape of the distribution of values as a bar chart. In addition, they make it easy to show the range, mean, and variation of data. You can use histograms to:

• Show the distribution of data.
• Evaluate both attribute (pass/fail) and variable (measurement) data.
• Determine how variable the process is.
• Analyze whether the variation is random.

Question 51

Pareto Charts?

Answer 51

A Pareto chart is a histogram that is used to rank causes of problems in a hierarchical format. The goal is to narrow down the primary causes of variance on a project and focus the energy and efforts on tackling the most significant sources of variance. The variables in the chart are ordered by the frequency of occurrences. A typical Pareto chart is used to represent data, which is first organized in descending order of occurrences and then plotting the cumulative curve. The bars represent the number of failures for each of the causes (A through E). In this example, approximately 72 percent of the total number of failures are due to causes A and B (320 out of 440). The project team can easily see that they should
focus most of their corrective action efforts on those two causes.

Question 52

Pareto Analysis?

Answer 52

The analysis used to develop Pareto charts is referred to as a Pareto analysis, after Vilfredo Pareto, an Italian economist of the late 19th and early 20th century. In his analysis, Vilfredo Pareto found that 80 percent of the land in late 19th century Italy was controlled by 20% of the population. During a Pareto analysis, data is collected in various forms, such as reports, inspections, and surveys. This data is then analyzed to isolate the major causes of project variance and is assigned a frequency or percentage value. The resulting chart is a histogram that identifies specific sources of variance and
ranks them according to their effect on the quality performance. Pareto charts can be very useful tools throughout the entire project for prioritizing and focusing on corrective actions. Comparative analysis of Pareto charts at different points in the project can be an effective tool for determining and communicating the effect corrective actions have had on curtailing or eliminating variability

Question 53

The 80/20 Rule?

Answer 53

Pareto charts are based on Pareto’s law, also known as the 80/20 rule. The 80/20 rule is a general guideline with many applications; in terms of controlling processes, it contends that a relatively large number of problems or defects, typically 80 percent, are commonly due to a relatively small number of causes, typically 20 percent.

Question 54

Run Charts?

Answer 54

A run chart is a line graph showing plotted data points in chronological order. It could show trends in a process or improvements over time. Trend analysis is a tool that uses run charts to communicate forecast information based on the project’s current performance. It is also used to monitor technical, cost, and schedule performance.

Question 55

Scatter Charts?

Answer 55

A scatter chart (or diagram) is a diagram that displays the relationship between two variables. The diagram plots dependent and independent variables. The independent variable is usually marked on the X-axis and the dependent variable on the Y-axis. The more closely the points form a diagonal line, the more closely they are related.

Question 56

Statistical Sampling?

Answer 56

Statistical sampling is a technique that is used to determine the characteristics of an entire population based on actual measurement of a representative sample of that population. Sampling is a way to determine if large batches of a product should be accepted or rejected without having to test every single item produced. Its goal is to produce a process that does not require inspection of every item. The size of samples and the frequency and cost of sampling must be determined when planning for project quality. A common example of statistical sampling is polling. Polling organizations ask questions to a small, random sample of participants. The answers given by the sample group are used to suggest how an entire group may feel regarding an issue. Sample size can affect the accuracy of results. Generally speaking, the larger the sample size, the
higher the likelihood the sample will truly represent the variability of the population. In quality terms, the larger the sample size, the more confidence you can have that your measurements reflect the quality level of the entire product population.

Question 57

The Statistical Sampling Process?

Answer 57

The statistical sampling process involves dividing sampling data into two categories—attribute and variable—each of which is gathered according to sampling plans. Because corrective actions are taken in response to analysis of statistical sampling and other quality control activities and because trend analysis is performed, defects and process variability should be reduced. The use of statistical sampling during quality control can reduce the overall quality cost by helping to forecast and prevent errors before they occur.

Question 58

Attribute Sampling Data?

Answer 58

Attribute sampling data is data from the sample that is counted, such as the number of employees participating in profit sharing, the number of customer complaint calls, and the number of returned items. Attribute sampling uses no scale. It simply tells you whether or not a standard has been met. Implementing an attribute sampling plan is fairly simple. Team members may be required to count the number of items that do not conform to a quality specification or that show evidence of a quality defect. If the number exceeds a certain limit, the sample fails to meet quality specifications.

Question 59

Variable Sampling Data?

Answer 59

Variable sampling data is data from a sample that is measured on a continuous scale, such as:

• Time
• Temperature
• Weight

For variable data, the compliance to specifications is rated on a continuous scale. Measurements can fall between an upper and a lower range. To implement a variable sampling plan, you will collect a sample of the product and take some specific measurement to determine if the sample meets quality specifications. Variable samples typically provide the same level of accuracy as attribute samples with much smaller sample sizes.