Question 1

The SPI is calculated as…

Accepted Answer

The Schedule Performance Index (SPI) is calculated as Earned Value (EV) divided by Planned Value (PV), which is option B. This metric is used in project management to measure the efficiency of time usage in a project.

Question 2

In earned value analysis…

Accepted Answer

In earned value analysis, positive variances for both schedule and spending indicate that the project is under budget and ahead of schedule, which is desirable. Negative variances would indicate the opposite, that the project is over budget and behind schedule.

Question 3

Estimated (remaining cost) to completion (ETC) is calculated as…

Accepted Answer

ETC is calculated as (BAC - EV)/CPI, where BAC is the Budget at Completion, EV is the Earned Value, and CPI is the Cost Performance Index. This formula estimates the remaining cost to complete the project based on the project's current cost performance.

Question 4

Paulina, a fashion designer, has a new project that requires her to make five dresses in seven days. A sum of $2,000 is allotted to her to fund the entire project. In three days, she completes one-third of the work and spends $1,2Calculate the cost performance index from the given scenario.

Accepted Answer

The cost performance index (CPI) is a measure of how well a project is performing in terms of cost. It is calculated by dividing the actual cost of work performed by the budgeted cost of work performed. In this case, Paulina has completed one-third of the work and spent $1,200. The budgeted cost of work performed is $2,000 / 7 * 3 = $857.14. Therefore, the CPI is $1,200 / $857.14 = 0.55.

Question 5

Kimberley, a project manager in a software development company, is assigned a new project. She is given a budget of $500,000 and a span of six months to complete the project. In three months, she is able to complete 50 percent of the project. In this scenario, the earned value of the work completed is _____.

Accepted Answer

The earned value (EV) is the budget allocated for the work actually completed. Since Kimberley has completed 50% of the project and the total budget is $500,000, the EV is 50% of $500,000, which is $250,000.

Question 6

The accountants of Junis Plex, a textile company, used to calculate the company's taxable income manually. However, the management recently adopted a software program that requires only few inputs from the accountants which automatically calculates the taxes owed by the company. The management releases a report for all its operations managers that provides specific instructions on how to use this software. Which of the following types of reports has Junis Plex used to inform its project managers of the new software program?

Accepted Answer

The report providing specific instructions on using the new software program is a special analysis report, as it addresses a specific issue or change in procedure.

Question 7

The total cost to complete a task is…

Accepted Answer

The answer of The total cost to complete a task...

Question 8

Walter, a luthier, is assigned with the task of building ten apartments in six months. He is given a budget of $1,500,000 to buy the necessary raw materials required for building ten apartments of same quality. In a period of four months, Walter is able to complete 75 percent of the work and spends $1,250,000 in the process. The project that Walter is working on has a spending variance of _____.

Accepted Answer

The answer of Walter, a luthier, is assigned with the...

Question 9

The CPI is calculated as…

Accepted Answer

The Cost Performance Index (CPI) is calculated as Earned Value (EV) divided by Actual Cost (AC), which is represented by choice E.

Question 10

To calculate the variable in its economic growth, Nunclemen Inc., a pharmaceutical company, collects data on the sales of its products based on how many doctors prescribe its medicines to their patients. However, a research study conducted by the company shows that pharmacists are a more reliable source than doctors. Nunclemen submits a report of this finding to all its stakeholders to review. Which of the following types of reports has the company used to inform its stakeholders of the results of the research study?

Accepted Answer

A special analysis report is used when a specific issue or topic needs in-depth analysis and presentation of findings, which fits the description of Nunclemen Inc. conducting and reporting on a research study about the reliability of pharmacists over doctors in prescribing their products.

Question 11

The schedule variance is calculated as…

Accepted Answer

Schedule variance is calculated as Earned Value (EV) minus Planned Value (PV), which measures the schedule performance on a project.

Question 12

Robert, a baker, receives an order for preparing 10 cakes in one day. He is given a budget of $5,0In six hours, he bakes two-thirds of the order and spends $3,6Calculate the schedule performance index from the given scenario.

Accepted Answer

The Schedule Performance Index (SPI) is calculated as the ratio of work performed to work scheduled. Robert was supposed to bake 10 cakes, but he baked two-thirds of that in six hours, which is $ \frac{2}{3} \times 10 = 6.67 $ cakes. The SPI is calculated as $ \frac{6.67}{10} = 0.667 $, which rounds to 0.66, making option D correct.

Question 13

_____ reports are primarily intended for special decisions or unexpected situations in which affected team members and outside managers need to be made aware of a change, and the change itself needs to be documented.

Accepted Answer

Exception reports are designed to highlight deviations from expected outcomes or standards, making them suitable for special decisions or unexpected situations that require attention and documentation.

Question 14

The cost/spending variance is calculated as…

Accepted Answer

The answer of The cost/spending variance is calculated as…
...

Question 15

Nadia, an intern in a restoration firm, collects data on a project involving the remodeling of a monument and sends the collected information to Maria, her supervisor. Maria uses this data to estimate the project's progress. After finding that the project is behind schedule, she makes small changes to the tasks involved in the project to bring the performance into agreement with the plan. In this scenario, Maria is engaged in _____ the project.

Accepted Answer

Maria is engaged in controlling the project by making adjustments to bring the project's performance in line with the plan after finding it is behind schedule.

Question 16

David, an architect, is in charge of executing a housing project. He appoints Charles to collect, record, and report all the necessary information to David and other relevant stakeholders. In this scenario, Charles will be engaged in _____ the project.

Accepted Answer

Charles's role involves collecting, recording, and reporting information, which aligns with monitoring activities in project management. Monitoring is about tracking the project's progress and performance to ensure it stays on schedule and meets its objectives.

Question 17

The first step in setting up a monitoring system is to:

Accepted Answer

Identifying key factors to be controlled is crucial as it helps in determining what aspects of the project need to be monitored closely to ensure its success. This step precedes personnel assignment, milestone identification, report requirements, and change management processes.

Question 18

_____ analysis reports are prepared to disseminate the results of a special study in a project concerning a particular opportunity or problem for the project.

Accepted Answer

Special analysis reports are specifically prepared to share the findings of a unique study within a project that addresses a specific opportunity or problem, aligning with the description given.

Question 19

Mauvin Maz, a fashion boutique, found that its newly acquired batch of raw materials did not meet the company's quality standards and was affecting the quality of its final products. In order to prevent any financial loss due to this problem, the top managers of Mauvin Maz decided to release a report to the workers asking them to stop using the newly acquired raw materials until a formal quality check is conducted. In this scenario, Mauvin Maz most likely released a(n) _____.

Accepted Answer

An exception report is issued when something out of the ordinary happens that needs to be addressed, such as the discovery of substandard raw materials that could affect product quality.

Question 20

Renuit Mec, a footwear manufacturing company, produces 10,000 shoes per day. In an average, about 200 shoes have more than one defect. However, the company has found that its newly installed machines are producing more defective products than the older machines. In order to prevent the production of more defective products, Renuit Mec releases a report to its employees asking them to stop using the newly installed machines. In this scenario, Renuit Mec most likely released a(n) _____.

Accepted Answer

The answer of Renuit Mec, a footwear manufacturing company, produces...

Quiz 7: Monitoring and Controlling the Project