Project Management Terminology

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Questions and Answers

What is the primary disadvantage of Budgeting in relation to cost or resource monitoring?

It shows work element interrelationships

It considers the probability of completion date

It considers the effects of delayed elements on others

It does not show work element interrelationships (correct)

What is the minimum time required to complete a project determined by?

Free Float

Total Float

Critical Path (correct)

Late Start

What is the term for the amount of time an activity may be delayed without delaying the completion date of the project?

Total Float (correct)

Free Float

Early Start

Late Start

What is the primary purpose of the Program Evaluation and Review Technique (PERT)?

To assess the risk of highly uncertain projects Signup and view all the answers

What is the term for the slack in the schedule of an activity?

Free Float Signup and view all the answers

What is represented by a dotted line on the arrow network diagram?

Dummy Activity Signup and view all the answers

What is the primary advantage of using PERT?

It provides a probabilistic approach to scheduling Signup and view all the answers

What is the term for the series of interconnected activities that determines the minimum time to complete the project?

Critical Path Signup and view all the answers

What is the purpose of project monitoring and control?

To detect and correct deviations from the desired budget, schedule, and quality Signup and view all the answers

What does the cost slope represent in the time-cost relationship?

The marginal trade-off of cost-to-time for an activity Signup and view all the answers

What happens to the duration of an activity when resources are added?

The duration decreases, but the direct cost typically increases Signup and view all the answers

What is the purpose of setting a project plan?

To communicate the plan to all participants Signup and view all the answers

What does the variance measure in the context of activity completion time?

The variability in the activity completion time Signup and view all the answers

What is the goal of project monitoring?

To detect deviations from the desired budget, schedule, and quality Signup and view all the answers

What is the purpose of control schedules for time and work?

To detect and correct deviations from the desired budget, schedule, and quality Signup and view all the answers

What is the relationship between the duration of an activity and the direct cost when resources are added?

The duration decreases, and the direct cost typically increases Signup and view all the answers

What is the purpose of Step 2 in the given PERT analysis?

To distribute the cost of an activity equally across its duration Signup and view all the answers

What is the total project cost mentioned in the example?

321k Signup and view all the answers

What is the accumulated cost on the 3rd day of the project?

65k Signup and view all the answers

What is the percentage of accomplishment on the 3rd day of the project?

14.02% Signup and view all the answers

What is the purpose of Step 3: Periodic Cash Flow in the PERT analysis?

To sum the cost per period for the entire project timeline Signup and view all the answers

How is the cost corresponding to an activity distributed in its duration?

Equally Signup and view all the answers

What is the purpose of Step 5: Fill up Table in the PERT analysis?

To fill up the table with the calculated values Signup and view all the answers

How many days are represented by the shaded green regions in the timeline for activity 1?

2 days Signup and view all the answers

Study Notes

Project Management Concepts

Late Start (LS): the latest time an activity can be started without delaying the project completion date.
Total Float (TF): the amount of time an activity can be delayed without delaying the project completion date.
Free Float (FF): the amount of time an activity can be delayed without delaying the early start time of the immediately following activity.

Critical Path Method

Critical Path: a series of interconnected activities with zero, free, and total float time, determining the minimum time to complete the project.
Dummy Activity: represented by a dotted line on the arrow network diagram, indicating that any activity following the dummy cannot be started until the preceding activities are completed.

Program Evaluation and Review Technique (PERT)

Developed in 1957 by the U.S. Navy as a probabilistic approach to scheduling.
More commonly used in the manufacturing industry.
Can be used for risk assessment of highly uncertain projects.

Network Scheduling

Represented by shaded green regions on the timeline.
Note that we draw the bar for activity D after activity A is completed, meaning at the end of day 2.

Time-Cost Relationship

Represents the shortest duration and the greatest cost.
Cost slope: represents the time-cost relationship or the marginal trade-off of cost-to-time for the activity.

Project Monitoring and Control

Goal: to detect and correct deviations from desired budget, schedule, and quality.
Detection: monitoring.
Correction: control.
Bring project performance back in line with plans.

Project Monitoring

Set of procedures and management practices.
Review of performance achieved or forecasted.
Uses performance metrics.

Project Plan

Must be developed with input from people who will be performing the work.
Must be communicated to all participants.

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Description

Test your understanding of project management concepts such as Late Start, Total Float, and Budgeting.