(08) Project Performance

Question 1

Reasons for reducing project duration.

Answer 1

• customer requirements
• contract commitments
• time to market matrix
• incentives, bonuses for early completion
• overhead and good will costs
• pressure to move resources to another project

Question 2

Monitoring and controlling projects (definition)

Answer 2

Comparing actual performance against plan to identify deviations.

Question 3

What deviations?

Answer 3

• Current status of project (schedule and cost)
• Remaining cost and date that project will be completed
• Potential problems that need to be addressed now
• Out of control activities that require intervention
• Causes of schedule and cost overruns
• Forecast of overruns at time of project completion

Question 4

Crashing (formula)

Answer 4

slope = crash cost - normal cost / normal time - crash time

Question 5

Changes (cus..)

Answer 5

Due to customer requests - add new features or taking out original features.

Question 6

Changes (risk..)

Answer 6

Due to risk event - implementation of contingency plan.

Question 7

Changes (pro..)

Answer 7

Due to suggestions from project team members - improvement.

Question 8

Time Management (sch..)

Answer 8

Schedule control to..

• Keep track of project status.
• Determine whether there is change in schedule.
• Manage changes in schedule when they occur.
• Influence factors that cause a change in schedule.
• Tracking gantt chart, performance review, team member morale, earned value management, milestone completion dates.

Question 9

Cost Management (cost control to..)

Answer 9

• Monitor cost performance
• Ensure only appropriate project changes are included
• Inform stakeholders of changes that will affect costs

Question 10

Cost Management (cost control for..)

Answer 10

• Updating project management plan
• Documentation of corrective plan
• Revised estimate of project completion
• Requested changes
• Updating organisational process assets

Question 11

Baseline.

Answer 11

The primary reference point against which we measure changes in our project

• Start and end date
• Durations
• Work and cost estimates

Question 12

Tracking Gantt Chart.

Answer 12

Used to monitor and control projects.

Question 13

• Actual performance = 1.3 million.

- Planned = 1 million. Why?

Answer 13

• May be ahead of schedule, $300k may represent costs for labour working ahead of schedule.
• Behind schedule.
• Therefore, need to performance EVM analysis to be sure.

Question 14

EVM (definition)

Answer 14

A systematic project management process used to find variances in projects based on the comparison of worked performed and work planned.

Question 15

Term (ear..)

Answer 15

Earned Value or BCWP

- Percent of original budget earned from work completed

Question 16

Term (pla..)

Answer 16

Planned budget or BCWS

- Cumulative time phased baseline of the value of the work scheduled

Question 17

Term (act..)

Answer 17

Actual cost or ACWP

- Actual cost incurred from accomplishing work

Question 18

Term (cos..)

Answer 18

Cost Variance
- Difference between EV and AC for work completed to date
CV = EV - AC or = BCWP - ACWP

Question 19

Term (sch..)

Answer 19

Schedule Variance
- Difference between EV and and the baseline line to date
SV = EV - PV or = BCWP - BCWS

Question 20

Term (bud..)

Answer 20

Budgeted at Completion (BAC)

- Total budgeted cost of the baseline

Question 21

Term (var..)

Answer 21

Variance at Completion (VAC)
- Indicates actual cost at completion
VAC = BAC - EACe derived from estimators in field
VAC = BAC - EACf derived from a formula

Question 22

Performance Index (CPI)

Answer 22

Cost Performance Index
- Measures cost efficiency of work accomplished to date
(CPI = EV/AC)

Question 23

Performance Index (SPI)

Answer 23

Scheduling Performance Index
- Measures scheduling efficiency
(SPI = EV/PV)

Question 24

Performance Index (ETC)

Answer 24

Estimate to Complete

= (BAC-EV)/CPI

Question 25

Performance Index (EAC)

Answer 25

Estimated at Completion | = ETC + AC

Question 26

Performance Index (PCIB)

Answer 26

Percent of Completion in terms of Budget. | = EV/BAC

Question 27

Performance Index (PCIC)

Answer 27

Percent of Completion in terms of Actual Expenditure. | AC/EAC

Question 28

Variance analysis

Answer 28

Comparing EV against: - PV - AC - Positive value = good, negative value = bad (e.g. over budget, behind schedule etc.)

Question 29

If EV charts show cost overrun or performance under- run, project manager has to..

Answer 29

1. Use resources from activities that have performed better than expected 2. Hold a meeting with project team members to think of solution 3. Telling clients that project may be late or over-budget