Estimating Project Time and Cost
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Questions and Answers

Who is responsible for creating the project charter?

  • Project Manager (correct)
  • Project Team
  • Project Steering Group
  • Project Executive Sponsor
  • What is the role of the Project Executive Sponsor in stakeholder workshops?

  • Informed of the progress
  • Responsible for executing the workshop
  • Consulted for opinions
  • Accountable for the overall outcomes (correct)
  • Which deliverable requires the Project Team to be responsible?

  • Communications plan
  • Strategy drafts
  • Results of project voting (correct)
  • Project charter
  • In the RACI matrix, who is accountable for the strategy final version?

    <p>Project Executive Sponsor</p> Signup and view all the answers

    What does the term 'Consulted' imply in the RACI matrix?

    <p>Those whose opinions are sought actively</p> Signup and view all the answers

    Which of the following deliverables requires the Project Team to provide updates?

    <p>Results of stakeholder workshops</p> Signup and view all the answers

    Who is informed about the project management products?

    <p>Project Executive Sponsor</p> Signup and view all the answers

    Which role is designated as 'Informed' for the strategy drafts deliverable?

    <p>Project Team</p> Signup and view all the answers

    What is the main focus of the analysis described?

    <p>Optimizing rig move time and activity schedule</p> Signup and view all the answers

    Which step is likely involved in the critical path analysis process?

    <p>Rigging down the rig</p> Signup and view all the answers

    What does 'critical path' typically refer to in project management?

    <p>The sequence of tasks that determines the project's duration</p> Signup and view all the answers

    Which of the following best describes 'optimizing' in this context?

    <p>Improving efficiency and reducing time without increasing costs</p> Signup and view all the answers

    The term 'rig move time' likely refers to which aspect of the operation?

    <p>The time required to relocate the rig from one site to another</p> Signup and view all the answers

    What is the importance of estimating time and cost in project management?

    <p>To support decision-making and develop budget</p> Signup and view all the answers

    Which condition is most suitable for applying bottom-up estimation?

    <p>Detailed information is required by the customer</p> Signup and view all the answers

    Which of the following factors does NOT influence the quality of project estimates?

    <p>Project's potential profitability</p> Signup and view all the answers

    What does top-down estimation typically assess in projects?

    <p>Overall cost and time for strategic decision-making</p> Signup and view all the answers

    In which scenario is a top-down estimation more appropriate?

    <p>For small projects with internal teams</p> Signup and view all the answers

    What aspect enhances the quality of initial estimates?

    <p>Involving several knowledgeable people in the process</p> Signup and view all the answers

    Which of the following is a key guideline for developing work package estimates?

    <p>Involve experts familiar with proposed tasks</p> Signup and view all the answers

    Which condition favors the use of padded estimates?

    <p>When there is high uncertainty</p> Signup and view all the answers

    Which type of estimate is best suited for projects with a well-defined scope?

    <p>Bottom-up estimation</p> Signup and view all the answers

    What is the likelihood of using top-down estimation for very uncertain projects?

    <p>Low, as accuracy is compromised</p> Signup and view all the answers

    What is a potential drawback of using excessive detail in project estimates?

    <p>It can lead to unproductive focus on departmental issues.</p> Signup and view all the answers

    Which type of cost is typically associated with general company operations?

    <p>General and Administrative Overhead Costs</p> Signup and view all the answers

    What does the bottom-up approach for estimating project time and cost involve?

    <p>Breaking down the project into smaller tasks for detailed estimation.</p> Signup and view all the answers

    Which of the following is a reason for refining or adjusting estimates?

    <p>To accommodate changes in project scope.</p> Signup and view all the answers

    In the context of cost types, what are Direct Costs?

    <p>Costs directly attributable to a specific project.</p> Signup and view all the answers

    Which method is not a part of the Bottom-up approach for estimating project time and cost?

    <p>Strategic planning</p> Signup and view all the answers

    What is one of the factors influencing the quality of estimates?

    <p>Complexity of the project</p> Signup and view all the answers

    What is the first step in phase estimating over the product life cycle?

    <p>Identifying project milestones.</p> Signup and view all the answers

    What does the symbol 't' represent in Critical Path Analysis?

    <p>Activity duration</p> Signup and view all the answers

    Which equation is used to calculate 'ES' during the forward pass?

    <p>ES = EFpredecessor (max)</p> Signup and view all the answers

    What does 'LS' represent in project scheduling?

    <p>Latest time an activity can begin</p> Signup and view all the answers

    Which of the following statements about 'Total slack (TS)' is correct?

    <p>TS = LF - EF or TS = LS - ES</p> Signup and view all the answers

    In backward pass computation, how is 'LF' calculated?

    <p>LF = LSsuccessor (min)</p> Signup and view all the answers

    What does 'EF' signify in a project network?

    <p>Early time an activity can finish</p> Signup and view all the answers

    Which of the following best describes a 'merge activity' in scheduling?

    <p>An activity that has multiple successors</p> Signup and view all the answers

    How is the 'critical path' determined in project scheduling?

    <p>By selecting activities with zero total slack</p> Signup and view all the answers

    Study Notes

    Estimating Project Time and Cost

    • Importance of estimating time and cost: supports decision-making, scheduling work, developing budgets, and cash flow management.

    Estimating Guidelines and Methods

    • Quality of estimates can be influenced by factors such as planning horizon and organizational structure.
    • Top-down estimation provides strategic decision-making but is less detailed.
    • Bottom-up estimation is preferred when cost and time precision is critical.

    Conditions for Estimation Types

    • Top-down estimates are suitable for strategic decisions and high uncertainty.
    • Bottom-up estimates are ideal for internal, smaller projects and when detailed cost breakdown is required.

    Factors Influencing Estimate Quality

    • Planning horizon affects projection accuracy.
    • Non-project factors such as equipment breakdown and holidays may introduce variability.
    • Project duration impacts the reliability of estimates, especially with new technologies.

    Guidelines for Work Package Estimates

    • Estimates should be prepared by people familiar with the tasks involved.
    • Risk assessment should consider contingencies and normal operational conditions.

    Level of Detail in Estimation

    • Excessive detail can lead to unnecessary costs and product focus on departmental functions.
    • Insufficient detail may fail to address essential activities, leading to wasted efforts.

    Types of Costs

    • Direct Costs: Costs directly attributable to the project.
    • Direct Overhead Costs: Costs necessary for the support of project activities.
    • General and Administrative Overhead Costs: Expenses incurred for overall organizational management.

    Refining Estimates

    • Estimates must be adjusted for hidden interaction costs, optimistic scenarios, and strategic misrepresentation.
    • A database for past estimates can provide valuable insights to refine future estimates.

    RACI Matrix in Project Management

    • Clarifies roles:
      • Responsible: Those executing tasks.
      • Accountable: Approvers of deliverables.
      • Consulted: Stakeholders providing feedback.
      • Informed: Updates recipients on project status.

    Critical Path Analysis

    • Critical path determines the longest sequence of activities in a project, indicating the shortest path to completion.
    • Key terms include:
      • Activity Duration (t): Expected length of time for an activity.
      • Early Start (ES): Earliest possible time to begin an activity.
      • Late Finish (LF): Latest possible completion time without delaying the project.

    Network Calculations

    • Forward Pass Computation:
      • ES = EF of preceding activity (maximum).
      • EF = ES + duration of the current activity.
    • Backward Pass Computation:
      • LF = LS of succeeding activity (minimum).
      • LS = LF - duration of the current activity.

    Problem Solving in Estimation

    • Emphasizes the application of theoretical knowledge through practical problem-solving exercises to enhance understanding of estimation techniques and project network creation.

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    Quiz Team

    Description

    This quiz explores key concepts in estimating project time and cost, examining methods like top-down and bottom-up estimation. Learn how various factors influence the quality of estimates and their importance in strategic decision-making and budget development.

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