Exam 2

Question 1

How do you incorporate uncertainty into planning the schedule?

Answer 1

With projects for which there is a high degree of uncertainty about the estimated duration for activities, it is possible to use three estimates for each activity (To, Tm, Tp)

Question 2

What is the purpose and process of resource leveling?

Answer 2

Resource leveling, or smoothing, is a method for developing a schedule that attempts to minimize the fluctuations in requirements for resources. This method levels the resources so that they are applied as uniformly as possible without extending the project schedule beyond the required completion time. It is used when there is variation resource in requirements among activities.

Question 3

Does resource leveling keep a project on schedule? If so, how?

Answer 3

Resource leveling keeps the project on schedule because activities are delayed only up to the point where all the positive Slack is used up, since any further delays would cause the project to extend beyond the project due date

Question 4

What is the purpose and process of resource limited scheduling?

Answer 4

Resource limited scheduling is a method for developing the shortest schedule when the number or amount of available resources is fixed and cannot be exceeded. This method will extend the project completion time if necessary in order to keep within the resource limits.

Question 5

Does resource limiting schedule and keep a project on the schedule? If so, how?

Answer 5

Resource limited scheduling does not necessarily keep the project on schedule. It may extend the schedule in order to keep within the resource limits.

Question 6

What is a resource requirements plan?

Answer 6

Illustrates the expected utilization of resources by time period during the time span of the project.

Question 7

What is the relationship between resource planning and the network diagram?

Answer 7

Using a network diagram, we can prepare a resource requirements plan that indicates what resources are required each day based on ES and EF times for each activity

Question 8

What is the 2-step process for budgeting?

Answer 8

The project budgeting process has two steps. First, the project cost because estimate is allocated to the various work packages in the project Work breakdown structure. Second, the budget for each work package is distributed over the duration of the work package

Question 9

Which activities of the first priority for corrective actions?

Answer 9

The activities with the least slack

Question 10

3 Ways to reduce cost

Answer 10

1) analyze cost performance to determine which work packages may require a corrective action 2) decide what specific corrective action should be taken 3) revise the project plan, including estimated durations and cost, to incorporate the planned corrective action

Question 11

Why manage cash flow?

Answer 11

The key to managing cash flow is to ensure that cash comes in faster than it goes out. This can be accomplished by asking the customer to: provide down payment, make equal monthly payments, provide frequent payments

Question 12

What is the purpose of project crashing

Answer 12

It incrementally reduces the project duration with the smallest associated increase in incremental cost. It is used when the project schedule needs to be accelerated

Question 13

What are the 5 assumptions of the time cost trade off a.k.a. project crashing

Answer 13

1) each activity has 2 pairs of duration and cost estimates: normal time and normal cost, crash time and crash cost
2) An activity’s duration can be incrementally accelerated from its normal time to its crash Time by applying more resources
3) An activity cannot be completed in less than its crash time, no matter how many additional resources are applied
4) the resources necessary to reduce an activity’s estimated duration from its normal crash time will be available when needed
5) within the range between an activity’s normal crash points, the relationship between time and cost is linear

Question 14

What is risk?

Answer 14

An uncertain event, that if it occurs jeopardizes accomplishing the project objective

Question 15

Why monitor risk?

Answer 15

Monitoring risk throughout the project enables project decisions to be based on current information about the project and its potential risks

Question 16

How to manage risk

Answer 16

To manage risk, the team needs to identify and assess risk to determine their impact and likelihood. Identification and assessment of risk occurs throughout the project. Project team meetings are good times review risks and the risk management plan. The risk assessment matrix helps the process by organizing the identified risks and assessing the risks, impact, likelihood, degree of impact, the action trigger for the risk, who is responsible and the response plan.

Question 17

In what part of the project lifecycle is risk planning done?

Answer 17

Initiating and planning

Question 18

What are the sources of risk?

Answer 18

Technical, schedule, cost, human resources, external, sponsor or customer

Question 19

Which risks are higher priority

Answer 19

Those on the critical path and those that have a high degree of impact and likelihood of occurrence. The priority of a risk can increase or decrease as the project progresses due to evolving project environment.