Final exam

Question 1

Problem 1:
You are managing a software development project. Your team needs to estimate the cost of developing a new feature. You have the option to use top-down or bottom-up budgeting methods. What are the differences between these approaches, and when would you use each?
Solution:
* Top-down budgeting uses historical data or expert judgment to estimate the overall project cost and allocate it to subcomponents. Use this when the project is at a conceptual stage and detailed data is unavailable.
* Bottom-up budgeting estimates the cost of each activity or task and aggregates these to determine the total project budget. Use this when detailed project information is available.
Problem 2:
A project manager decides to use Activity-Based Costing (ABC). Describe how this approach works and provide an example.
Solution:
ABC assigns costs to specific activities based on their use of resources. For example, if software testing requires 30% of total resources, it will be allocated 30% of the budget.
Problem 3:
Explain why contingency funding is necessary in project cost management, and identify three factors that might require it.
Solution:
Contingency funding addresses uncertainties, such as:
1. Unexpected scope changes.
2. Delays due to unforeseen risks.
3. Fluctuations in material costs.
Problem 4:
You’re tasked with estimating the cost of a project using Function Point Analysis. What steps will you take?
Solution:
1. Identify all project functionalities (inputs, outputs, user interactions, files, and interfaces).
2. Assign weights to each function.
3. Adjust for complexity.
4. Multiply weights by complexity factors to calculate total function points.
Problem 5:
A project team consistently underestimates costs. What are three common reasons for this, and how can they improve their estimation accuracy?
Solution:
1. Ignoring historical data—use past project data for reference.
2. Overlooking hidden costs—conduct a detailed breakdown of all activities.
3. Optimism bias—introduce contingency reserves for realistic projections.
________________________________________
Chapter 9: Project Scheduling
Problem 1:
Given the following activities and their dependencies, construct a network diagram and identify the critical path:
* A (3 days), B (4 days, depends on A), C (5 days, depends on A), D (2 days, depends on B and C).
Solution:
* Network Diagram: A → B → D; A → C → D.
* Critical Path: A → C → D (10 days).
Problem 2:
You need to estimate the duration for a new task. The optimistic estimate is 3 days, the pessimistic is 9 days, and the most likely estimate is 6 days. Calculate the expected duration using PERT (Program Evaluation and Review Technique).
Solution:
Expected Duration = (Optimistic + 4 × Most Likely + Pessimistic) ÷ 6
= (3 + 4 × 6 + 9) ÷ 6 = 6 days.
Problem 3:
Define float (slack) in project scheduling and explain how it is used in managing schedules.
Solution:
Float is the amount of time a task can be delayed without affecting the project’s end date. It helps prioritize tasks and manage resources efficiently.
Problem 4:
Why is constructing a critical path crucial in project scheduling, and how does it help in project management?
Solution:
The critical path identifies the longest sequence of dependent activities. It helps focus on tasks that directly impact project completion and optimize resource allocation.
Problem 5:
Explain how duration estimation can be impacted by resource availability and task dependencies.
Solution:
Limited resources can extend task durations, and dependencies may cause bottlenecks, increasing overall project time.
________________________________________
Chapter 10: Advanced Scheduling Techniques
Problem 1:
Illustrate the concept of lag in precedence relationships with an example.
Solution:
Lag is the delay between tasks. For example, after pouring concrete (Task A), you must wait 3 days before painting (Task B).
Problem 2:
You’re given a Gantt chart with overlapping tasks. How can this visualization help you manage the project?
Solution:
Gantt charts display task timelines and overlaps, helping identify dependencies, potential conflicts, and opportunities for parallel task execution.
Problem 3:
A project is behind schedule. Explain how crashing can help, and identify its risks.
Solution:
Crashing reduces project duration by allocating extra resources to critical tasks. Risks include increased costs and potential quality issues.
Problem 4:
What are the key differences between Gantt charts and network diagrams in project scheduling?
Solution:
* Gantt charts provide a timeline view of tasks.
* Network diagrams show task dependencies and paths.
Problem 5:
How can lags and leads improve flexibility in scheduling?
Solution:
* Lags introduce delays to prevent resource conflicts.
* Leads allow tasks to start before predecessors finish, reducing project time.
________________________________________
Chapter 11: Advanced Topics in Planning and Scheduling
Problem 1:
Compare and contrast Critical Path and Critical Chain methods.
Solution:
* Critical Path focuses on task dependencies.
* Critical Chain adds resource constraints, optimizing resource usage.
Problem 2:
Describe how Agile’s iterative approach differs from traditional scheduling.
Solution:
Agile delivers incremental value through sprints, adapting to changes. Traditional scheduling follows a fixed plan with less flexibility.
Problem 3:
Explain a drawback of Extreme Programming (XP) in software projects.
Solution:
XP requires close customer collaboration, which can be challenging for unengaged or unavailable stakeholders.
Problem 4:
How does the Critical Chain method resolve resource conflicts?
Solution:
It prioritizes tasks based on resource availability and buffers to protect against delays.
Problem 5:
What is the purpose of project buffers in Critical Chain Project Management?
Solution:
Buffers absorb schedule delays, ensuring the project meets deadlines despite uncertainties.
________________________________________
Chapter 12–14: Resource Management, Evaluation, and Closeout
Problem 1:
How does resource leveling minimize project scheduling conflicts?
Solution:
It adjusts task start and end dates to balance resource demand and availability, reducing over-allocation.
Problem 2:
Describe the steps in Earned Value Management (EVM) to track project performance.
Solution:
1. Measure Planned Value (PV).
2. Calculate Earned Value (EV).
3. Determine Actual Cost (AC).
4. Use metrics like Schedule Performance Index (SPI) and Cost Performance Index (CPI).
Problem 3:
Explain the importance of formal project closeout and list three key steps.
Solution:
Closeout ensures lessons learned are documented. Steps:
1. Finalize deliverables.
2. Release resources.
3. Prepare a project report.
Problem 4:
What are common reasons for early project termination?
Solution:
1. Insufficient funding.
2. Misalignment with organizational goals.
3. Technological challenges.
Problem 5:
List two challenges of preparing the final project report.
Solution:
1. Ensuring comprehensive documentation.
2. Balancing transparency with sensitivity to project failures.