Guide - Section 2.7 (Deck#5) - Measurement Performance

Question 1

What are used to ensure the project deliverable stays aligned to the business case and the benefits realization plans?

Answer 1

Business value measurements

Question 2

Metrics that measure financial business value include:

Answer 2

1. Cost-benefit ratio
2. Benefits delivery vs business case
3. Return on investment (ROI)
4. Net present value (NPV)

(CBR, BD, ROI, NPV)

Question 3

A measure of the expected present value of an investment with the initial cost that is used to determine if the costs of a project outweigh its benefits.

Answer 3

cost-benefit ratio =
Expected Present Value of Benefits / Expected Present Value of Costs

Question 4

What does a cost-benefit ratio greater than 1 indicate?

Answer 4

The project should not be considered unless there are regulatory, social good, or other reasons to do the project.

Question 5

What does a benefit-cost ratio greater than 1 indicate?

Answer 5

the project should be considered

Question 6

A measure of the amount of financial return compared to
the cost

Answer 6

Return on investment (ROI)

Question 7

The difference between the present value of inflows of capital and the present value of outflows of capital over a period of time

Answer 7

Net present value (NPV)

Question 8

Stakeholder satisfaction can be measured with

Answer 8

1. Surveys (or inferring satisfaction or lack of)
2. Metrics - Net Promotor Score (NPS), Mood Chart, Moral, Turnover

Question 9

What measures the degree to which a stakeholder (usually the customer) is willing to recommend a product or service to others?

Answer 9

Net Promotor Score (NPS)

It measures a range from -100 to +100.

Question 10

A high NPS indicates?

Answer 10

A high Net Promoter Score not only measures satisfaction with a brand, product, or service, it is also an indicator of customer loyalty.

Question 11

What can track the mood or reactions of a group of very important stakeholders—the project team?

Answer 11

A mood chart

At the end of each day, project team members can use colors, numbers, or emojis to indicate their frame of mind.

Question 12

Project teams use what to consider what might happen in the future so they can consider and discuss whether to adapt plans and project work accordingly?

Answer 12

forecasts

Question 13

What are a few examples of qualitative forecasts?

Answer 13

Qualitative forecasts are based on expert judgment and subjective opinions rather than on numerical data.

Examples include: expert judgement, surveys (mood chart, morale), turnover

Question 14

Name 6 types of quantitative forecasts?

(ETC, EAC, VAC, TCPI, RA, TA)

Answer 14

1. Estimate to complete (ETC)
2. Estimate at completion (EAC)
3. Variance at completion (VAC)
4. To-complete performance index (TCPI)
5. Regression analysis
6. Throughput analysis

Question 15

An earned value management measure that forecasts the expected cost to finish all the remaining project work?

Answer 15

Estimate to complete (ETC)

Question 16

How do you calculate ETC?

Answer 16

There are numerous methods to compute the value of additional periods estimated to complete the remaining scope

ETC = estimate at completion (EAC) - actual cost (AC)
ETC = (BAC - EV) / (CPI x SPI)
ETC = (BAC - EV) / CPI
ETC = (BAC - EV) / (CPI x SPIt)

Question 17

An earned value management measure forecasts the expected total cost of completing all work?

Answer 17

Estimate at completion (EAC)

Question 18

How do you calculate EAC?

Answer 18

There are a number of ways to calculate EAC

based on the assumption that past performance and efficiency will continue into the future EAC = AC + (BAC - EV) / CPI

Question 19

An earned value management measure that forecasts the amount of budget deficit or surplus.

Answer 19

Variance at completion (VAC) = BAC - EAC

Question 20

An earned value management measure that estimates the cost performance required to meet a specified management goal by taking the “work remaining” and divides it by the “funds remaining.

Answer 20

To-complete performance index (TCPI) =
(BAC − EV) / (BAC − AC)

Question 21

What does a TCPI more than 1 indicate?

Answer 21

The project is under budget - this may create opportunities to increase quality or profit.

TCPI = 1 indicates the project is on budget
TCPI < 1 indicates the project is over budget

Question 22

An analytical method where a series of input variables are examined in relation to their corresponding output results in order to develop a mathematical or statistical relationship.

Answer 22

Regression analysis

There are different types of regression analysis, including linear regression, logistic regression, and polynomial regression.

Question 23

How are regression anaylysis used?

Answer 23

• to analyze the interrelationships betwenn different project variables that contributed to the project outcomes to improve performance on future projects.
• to identify the strength and direction of the relationship between variables.
• to make predictions about future outcomes based on past data.

Question 24

This analytical method assesses the number of items being completed in a fixed time frame.

Answer 24

Throughput analysis

Question 25

Features complete vs. features remaining, velocity, and story points are examples of?

Answer 25

Throughput metrics

Question 26

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Project teams that use adaptive practices evaluate their progress and estimate likely completion dates using?

Answer 26

Throughput metrics

Question 27

What can be used to verify and update cost estimates?

Answer 27

Using duration estimates
and burn rates of stable project teams