Tools and Techniques

Question 1

Differentiate between Resource Leveling and Resource Smoothing.

Answer 1

Resource Levelling: Adjusting the schedule and possibly extending the project duration to avoid overloading resources (extending the deadline)

Resource Smoothing: Adjusting the schedule to make resource usage more consistent, without changing the project end date (Adjust within float)

Question 2

What does the cost of quality include?

Answer 2

1. Prevention costs
2. Appraisal costs
3. Internal & External failure cost

Question 3

What are the five ways in which a conflict can be resolved?

Answer 3

1, Withdraw/avoid
2. Smooth/accommodate
3. Compromise/reconcile: lose-lose
4. Force/direct: win-lose
5. Collaborate/problem solve: Win-win

Question 4

Differentiate between crashing and fast-tracking.

Answer 4

Crashing: shortening the schedule by adding resources.

Fast-tracking: shortening the schedule by performing work in parallel.

Question 5

How do you calculate CV and SV?

Answer 5

CV = EV - AC
SV = EV - PV

Question 6

How do you calculate CPI and SPI?

Answer 6

CPI = EV/AC
SPI = EV/PV

CPI > 1 below budget
SPI > 1 Ahead of schedule

Question 7

How do you calculate estimate at completion (EAC) and estimate TO completion?

Answer 7

EAC = BAC/CPI
ETC = EAC - AC

Question 8

What does TCPI Mean? How do you calculate TCPI?

Answer 8

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

TCPI > 1 = Hard to complete
TCPI < 1 = Easier to complete

Question 9

How does one respond to risk?

Answer 9

1. Escalate
2. Mitigate/Enhance
3. Accept
4. Transfer/Share
5. Avoid/Exploit

Question 10

What is net present value?

Answer 10

The net present value determines whether an investment will be profitable down the line by summing up all future cash flows and discounting the initial investment.