Cost Data Management
70 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the primary purpose of Parametric Estimating?

  • Gathering historical data for future projects
  • Using a statistical relationship with historical data (correct)
  • Breaking down the project into smaller work packages
  • Analyzing the team's past performance

    • What is the term for the estimate that assumes all goes well in a project?

  • Bottom-Up Estimate
  • Most Likely Estimate (M)
  • Pessimistic Estimate (P)
  • Optimistic Estimate (O) (correct)

    • What is the method of estimating that involves breaking down a project into smaller work packages?

  • Parametric Estimating
  • Data Analysis
  • Three-Point Estimating
  • Bottom-Up Estimating (correct)

    • What is the average estimate calculated from the Optimistic, Most Likely, and Pessimistic Estimates?

    <p>Triangular Distribution</p> Signup and view all the answers

    What is the estimate that represents the most realistic amount of work required to complete a task?

    <p>Most Likely Estimate (M)</p> Signup and view all the answers

    What is the purpose of gathering historical data in Parametric Estimating?

    <p>To create a statistical relationship for estimating costs</p> Signup and view all the answers

    What is the main purpose of cost categorization in project cost management?

    <p>To group costs into categories for analysis</p> Signup and view all the answers

    What is the primary goal of summing costs in project cost management?

    <p>To get a total cost by summing up individual costs</p> Signup and view all the answers

    What is the expected outcome of creating an accurate project budget and forecast?

    <p>To track project spending against the budget</p> Signup and view all the answers

    Which of the following is NOT a method of estimating costs in project cost management?

    <p>Summing costs</p> Signup and view all the answers

    What is the primary benefit of grouping costs into categories?

    <p>To see total costs per category</p> Signup and view all the answers

    What is the ultimate goal of project cost management?

    <p>To achieve financial control</p> Signup and view all the answers

    What does a Schedule Performance Index (SPI) greater than 1.0 indicate?

    <p>The project is ahead of schedule</p> Signup and view all the answers

    What is the purpose of the To Complete Performance Index (TCPI)?

    <p>To determine if the project can meet the budget</p> Signup and view all the answers

    What is the formula for calculating the To Complete Performance Index (TCPI)?

    <p>(BAC-EV) / (BAC-AC)</p> Signup and view all the answers

    What does a Schedule Performance Index (SPI) equal to 1.0 indicate?

    <p>The project is on schedule</p> Signup and view all the answers

    What is the significance of a higher To Complete Performance Index (TCPI)?

    <p>The project needs to be more efficient to meet the budget</p> Signup and view all the answers

    What does a To Complete Performance Index (TCPI) equal to 1 indicate?

    <p>The project needs to maintain the same cost efficiency</p> Signup and view all the answers

    What is the main purpose of monitoring stakeholder relationships?

    <p>To ensure all stakeholders are aligned with the project plan</p> Signup and view all the answers

    Who is considered a stakeholder in a project?

    <p>A person or organization actively involved in the project, or whose interests may be positively or negatively affected</p> Signup and view all the answers

    What is the first step in creating a stakeholder register?

    <p>Creating a stakeholder profiles register</p> Signup and view all the answers

    What is the purpose of a stakeholder profile?

    <p>To gather information about a stakeholder's goals, expectations, and concerns</p> Signup and view all the answers

    What is a concern of Fatima Ahmad, a stakeholder in the project?

    <p>Not being able to easily park for shopping</p> Signup and view all the answers

    What is the goal of Fatima Ahmad, a stakeholder in the project?

    <p>To improve shopping experience by increasing variety of available goods</p> Signup and view all the answers

    What is the purpose of performing qualitative and quantitative analysis in risk management?

    <p>To determine the risk level and prioritize responses</p> Signup and view all the answers

    What is the result of applying the Project Impact Scale in qualitative analysis?

    <p>A risk register with priority and urgency ratings</p> Signup and view all the answers

    What is the purpose of gathering information from people who know about the risks in quantitative analysis?

    <p>To get three-point cost estimates for each risk</p> Signup and view all the answers

    What is the formula used to quantify risk in quantitative analysis?

    <p>EMV = Probability x Impact</p> Signup and view all the answers

    What is the outcome of performing a sensitivity analysis in quantitative analysis?

    <p>A probability distribution of the project's risks</p> Signup and view all the answers

    What is the purpose of updating the risk register in quantitative analysis?

    <p>To reflect changes in the project's risks and their probabilities</p> Signup and view all the answers

    The float/lag time for each task in the critical path is greater than 0.

    <p>False</p> Signup and view all the answers

    The path B - D - E - FIN is the critical path with a duration of 12 days.

    <p>False</p> Signup and view all the answers

    The number of paths in the given network is 2.

    <p>False</p> Signup and view all the answers

    Activity D depends on Activities B and A.

    <p>True</p> Signup and view all the answers

    The total duration of the project is 21 days.

    <p>True</p> Signup and view all the answers

    The path A - C - FIN has a duration of 5 days.

    <p>False</p> Signup and view all the answers

    Once we complete the backward pass, we start completing each activity by moving forward in sequence.

    <p>False</p> Signup and view all the answers

    The formula for calculating the late finish (LF) is LF - D = LS.

    <p>True</p> Signup and view all the answers

    There are 3 paths in the given network diagram.

    <p>False</p> Signup and view all the answers

    Activity C starts on the same day as Activity A.

    <p>False</p> Signup and view all the answers

    The early start (ES) is always equal to the late start (LS).

    <p>False</p> Signup and view all the answers

    The forward pass is used to calculate the late finish (LF) of an activity.

    <p>False</p> Signup and view all the answers

    The risk category is used to determine the probability of a risk happening.

    <p>False</p> Signup and view all the answers

    Expected Monetary Value (EMV) is a method used in qualitative analysis to quantify risk.

    <p>False</p> Signup and view all the answers

    The purpose of qualitative analysis is to identify high impact, high probability risks.

    <p>True</p> Signup and view all the answers

    Quantitative analysis involves gathering information from people who know about the risks.

    <p>True</p> Signup and view all the answers

    The outcome of performing a sensitivity analysis is to update the risk register.

    <p>False</p> Signup and view all the answers

    Probability distribution is a method used in qualitative analysis to quantify risk.

    <p>False</p> Signup and view all the answers

    The Cost Variance (CV) is calculated as BAC - EV

    <p>False</p> Signup and view all the answers

    The Schedule Variance (SV) is calculated as EV - PV

    <p>True</p> Signup and view all the answers

    A Schedule Performance Index (SPI) greater than 1.0 indicates the project is behind schedule

    <p>False</p> Signup and view all the answers

    The Earned Value (EV) is the work completed to date and the budget that was planned for that work

    <p>True</p> Signup and view all the answers

    The Actual Cost (AC) is the budget that was planned for the work that should have been done

    <p>False</p> Signup and view all the answers

    A Cost Variance (CV) of 0 indicates the project is over budget

    <p>False</p> Signup and view all the answers

    Stakeholder Analysis aims to understand and categorize project stakeholders to minimize efforts in project communication.

    <p>False</p> Signup and view all the answers

    The Power/Interest Grid is a technique used in qualitative analysis to quantify risk.

    <p>False</p> Signup and view all the answers

    A stakeholder with high power and high interest is considered a significant stakeholder that deserves sustained management attention.

    <p>True</p> Signup and view all the answers

    The goal of stakeholder analysis is to please all stakeholders all the time.

    <p>False</p> Signup and view all the answers

    Stakeholder analysis is only necessary for project stakeholders with high power or high interest.

    <p>False</p> Signup and view all the answers

    The primary purpose of stakeholder analysis is to identify stakeholders who can significantly impact the project negatively.

    <p>False</p> Signup and view all the answers

    Match the following characteristics of a project risk with their descriptions:

    <p>Uncertain event or condition = It is always in the future Impact on project objectives = Scope, schedule, cost, quality Multiple causes = Requirement, assumption, constraint, condition Negative or positive outcome = Possibility of an outcome</p> Signup and view all the answers

    Match the following concepts related to project risk management with their descriptions:

    <p>Risk management = Process of identifying and planning for risks Risk = Uncertain event or condition that impacts project objectives Reality check = Recognition that risks are always present in projects Project impact = Effect of a risk on project objectives</p> Signup and view all the answers

    Match the following statements about project risks with their implications:

    <p>Risks can have multiple causes = Increased complexity in risk management Risks can have a positive outcome = Opportunity for benefit Risks are always in the future = Uncertainty in project planning Risks impact project objectives = Need for risk management</p> Signup and view all the answers

    Match the following aspects of project risk management with their purposes:

    <p>Risk identification = Determine potential risks Risk planning = Prepare for potential risks Risk management = Minimize impact of risks Risk monitoring = Track and respond to risks</p> Signup and view all the answers

    Match the following concepts related to project risk management with their roles:

    <p>Project manager = Responsible for risk management Stakeholder = May be impacted by project risks Risk analyst = Assesses and quantifies risks Team member = May be involved in risk response</p> Signup and view all the answers

    Match the risk response strategies with their descriptions:

    <p>Avoid = Prevent it from happening Mitigate = Taking action that will cause it to do as little damage as possible Transfer = Pay someone else to accept it from you Accept = If you cannot avoid, mitigate, or transfer the risk</p> Signup and view all the answers

    Match the terms with their definitions in risk management:

    <p>Risk Mitigation = The risk mitigation decision to rent a heavier RV makes sense Expected Monetary Value (EMV) = The outcome of performing a sensitivity analysis Probability Distribution = A method used in qualitative analysis to quantify risk Quantitative Analysis = Gathering information from people who know about the risks</p> Signup and view all the answers

    Match the risk response tactics with their descriptions:

    <p>Risk Avoidance = Prevent it from happening Risk Mitigation = Taking action that will cause it to do as little damage as possible Risk Transfer = Pay someone else to accept it from you Risk Acceptance = If you cannot avoid, mitigate, or transfer the risk</p> Signup and view all the answers

    Match the terms with their descriptions in risk management:

    <p>High Winds = A high-impact risk event Low Winds = A low-impact risk event Heavier RV = A risk mitigation strategy Lighter RV = A risk acceptance strategy</p> Signup and view all the answers

    Match the risk management concepts with their descriptions:

    <p>Risk Impact = The effect or consequence of a risk event Risk Probability = The likelihood of a risk event occurring Risk Quantification = The process of assigning a numerical value to a risk Risk Sensitivity = The analysis of how changes in risk factors affect the project</p> Signup and view all the answers

    Study Notes

    Data Collection and Cost Aggregation

    • Gathering cost data from various departments, teams, or sources within the organization.
    • Ensuring the data is accurate, up-to-date, and categorized correctly.
    • Cost categorization involves grouping costs into categories such as labor, materials, overhead, and other relevant classifications.
    • Summing costs involves combining costs by summing up individual costs within each category and across all categories to get a total cost.

    Cost Analysis and Reporting

    • Analyzing combined costs to identify trends, cost overruns, or areas where savings can be made.
    • Generating reports for stakeholders to provide transparency and support decision-making.

    Creating an Accurate Project Budget and Forecast

    • Seeing total costs per category and per key deliverable.
    • Seeing expected spending through the project schedule.
    • Assisting in tracking project spending against the budget.
    • Providing financial control.

    Estimating Costs - Methods

    • Expert Judgement: asking someone who has done a similar project before.
    • Analogous Estimating (Top-Down): looking at a similar project's cost estimations/historical data.
    • Parametric Estimating: using a statistical relationship with historical data.
    • Bottom-Up Estimating: breaking down the project into smaller work packages or tasks.
    • Three-Point Estimating (Triangular Distribution): averaging between high, low, and likely cost.
    • Beta Distribution Pert (Project Evaluation Review Technique).

    3-Point Estimating (Triangular Distribution)

    • Most Likely Estimate (M): the most realistic estimate given the information available.
    • Optimistic Estimate (O): the best-case scenario estimate.
    • Pessimistic Estimate (P): the worst-case scenario estimate.

    Project Performance Index

    • Schedule Performance Index (SPI): measures how much work has been completed compared to the plan.
    • To Complete Performance Index (TCPI): determines whether the remaining work can be completed within the budget.

    Stakeholder Management

    • A stakeholder is a person or organization that is actively involved in the project or whose interests may be affected by the project.
    • Creating a Stakeholder Profile Register is the first step in creating the Stakeholder Register.
    • Identifying stakeholders' responsibility, goals, expectations, and concerns.

    Risk Analysis

    • Performing qualitative and quantitative analysis to identify risks.
    • Qualitative analysis involves assessing the likelihood and impact of a risk.
    • Quantitative analysis involves gathering information, analyzing it, and updating the risk register.
    • Expected Monetary Value (EMV) is a way to quantify risk.

    Critical Path Method

    • The critical path is the longest timeframe in a project, in this case, Path B - D - E - FIN = 14 days.
    • To prove a path is critical, each task in that path must have a float/lag of 0, meaning no extra time for tasks.

    Calculating the Backward Pass

    • After completing the forward pass, each activity is completed in reverse sequence to find the latest start (LS) and latest finish (LF) times.
    • The backward pass helps calculate the float time for each task.

    Network Diagram

    • A network diagram shows the sequence of activities and their dependencies.
    • In this example, there are 5 paths in the network diagram.

    Earned Value Management (EVM)

    • Earned Value (EV) is the value of work completed to date and the budget planned for that work.
    • Actual Cost (AC) is the actual expense incurred by the team.
    • Cost Variance (CV) is the difference between EV and AC, indicating if the project is under or over budget.
    • Schedule Variance (SV) is the difference between EV and the planned value (PV), indicating if the project is ahead or behind schedule.

    Stakeholder Analysis

    • Stakeholder analysis identifies and categorizes stakeholders based on their power, interest, and influence on the project.
    • The goal is to understand stakeholders' expectations, concerns, and level of participation required.

    Analysis Techniques - Power/Interest Grid

    • The power/interest grid categorizes stakeholders into four quadrants: high power/high interest, high power/low interest, low power/high interest, and low power/low interest.
    • This helps identify significant stakeholders who deserve sustained management attention.

    Risk Analysis

    • Qualitative analysis determines the likelihood and impact of a risk on the project and budget.
    • Quantitative analysis applies numerical values to risks using techniques like expected monetary value (EMV) and probability distribution.
    • The risk register is updated based on the analysis, prioritizing high-impact, high-probability risks.

    Project Schedule vs. WBS

    • A project schedule defines what is happening when and with what resources, showing the sequence of work to complete all deliverables in the WBS.
    • A WBS does not have a time component or sequence and is based on deliverables.

    Project Schedule Management Processes

    • Plan Schedule Management: Identify how to manage the schedule.
    • Define Activities: Identify activities needed to produce deliverables.
    • Sequence Activities: Identify the order of project activities.
    • Estimate Resources: Estimate the resources required for each activity.
    • Estimate Durations: Estimate the time needed for each activity.

    Critical Path Method

    • The critical path is the longest sequence of activities in the project.
    • The critical path determines the minimum duration required to complete the project.
    • To prove that a path is critical, ensure that the float/lag for each task in this path is 0.

    Calculating the Backward Pass

    • Once the forward pass is complete, calculate each activity by moving backwards in sequence: LF - D = LS.
    • Calculate late start (LS) and late finish (LF) for each activity.

    Network Diagram Example

    • Create a network diagram to visualize the project schedule.
    • Add 1 day to Task C, since it starts 1 day later (after A).
    • There are 5 paths in this network diagram.

    Beta Distribution PERT

    • PERT is a technique used to estimate the time it takes to complete a task.
    • The formula for PERT is: M = (O + 4M + P)/6.
    • Example: Estimate the time it takes to complete a software development project.

    Control Costs

    • Control costs involve monitoring the project's status and comparing actual costs to planned costs.
    • Update project costs and re-evaluate cost assumptions made during planning.

    Project Risk Management

    • A risk is an uncertain event or condition that can impact project objectives (scope, schedule, cost, quality).
    • Risk management is the process of identifying and planning for risks.
    • Risks can have multiple causes, such as requirements, assumptions, constraints, or conditions.
    • Risk management involves preparing for risks to minimize their impact on the project.

    Project Schedule vs. WBS

    • WBS (Work Breakdown Structure) does not have a time component or sequence, and is based on deliverables.
    • Project Schedule defines what is happening when and with what resources, and shows the sequence of work to complete all deliverables in the WBS.

    Project Schedule Management Processes

    • Plan Schedule Management: Identify how to manage the schedule.
    • Define Activities: Identify activities that must be performed to produce deliverables.
    • Sequence Activities: Identify the order of project activities.
    • Estimate Resources: Estimate the resources required.
    • Estimate Durations: Estimate the time needed for each activity.

    Earned Value Management

    • Earned Value (EV) = QAR 9,000.
    • Actual Cost (AC) = QAR 11,200.
    • Estimate at Completion (EAC) = QAR 15,000 (over budget).
    • To Complete Performance Index (TCPI) = 3.75 (to determine if the budget is reasonable).

    Project Stakeholder and Communications Management

    • Stakeholders are individuals who need to be informed about the project.
    • The project manager needs to understand stakeholders' expectations, roles, and how they can influence and get involved in the project.

    PMBOK Risk Management Processes

    • Plan Risk Management: Determine how to perform project risk management.
    • Identify Risks: Document risks that may affect the project.
    • Perform Qualitative Risk Analysis: Prioritize risks for further analysis.
    • Perform Quantitative Risk Analysis: Use numerical models for risk analysis.
    • Plan Risk Responses: Develop options, actions, and contingency plans.
    • Monitor and Control Risks: Start and manage the risk plan.

    Risk Management

    • Risk Categories: Broad categories of risk that the project is vulnerable to.
    • Risk Breakdown Structure (RBS): Breaks down risk categories into specific components related to the project.
    • Guidelines for determining potential impact: Define impact levels for time and budget.
    • Probability Scale: Define probability levels used for risk analysis.

    Expected Monetary Value (EMV)

    • EMV is calculated by multiplying the probability of a risk by its impact.
    • EMV can be applied in two ways:
      • Calculate the total EMV for all risks to determine the budget required to account for them.
      • Calculate the monetary value of a decision to determine its feasibility.

    Risk Response

    • Avoid: Prevent the risk from happening.
    • Mitigate: Take action to reduce the risk's impact.
    • Transfer: Pay someone else to accept the risk.
    • Accept: Accept the risk if it cannot be avoided, mitigated, or transferred.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Related Documents

    Project Management Exam BUSG 2002-2 Final Review PDF

    Description

    Learn about the key elements of cost data management, including gathering and categorizing cost data, and summing costs to analyze resource allocation.

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser