Question 1

Rachel notices that the current EV for her project is higher than both the PV and the AC.Rachel has reason to be concerned.

Accepted Answer

When the EV is higher than the PV and the AC, this results in positive cost and schedule variances.This indicates that the project is progressing well in terms of cost.Rachel should check her tracking Gantt chart to make sure critical activities are progressing well.

Question 2

Two major reasons for creating a baseline are to monitor and report progress and to estimate cash flow.

Accepted Answer

The major reasons for creating a baseline are to monitor and report progress and to estimate cash flow.Therefore, it is crucial to integrate the baseline with the performance measurement system.

Question 3

The only accurate method for determining the true time progress of the project is to compare the project network schedule against the actual network schedule to measure if the project is on time.

Accepted Answer

Schedule variance measures progress in dollars rather than time units.Therefore, it is unlikely that any translation of dollars to time will yield accurate information telling if any milestone or critical path is early, on-time, or late.

Question 4

When revising the estimated cost at completion, there are two approaches.The EAC_re is determined by experts in the field and the EAC_f is a mathematical approach which assumes the CPI as the basis for forecasting cost at completion.

Accepted Answer

The EAC_re and the EAC_f both determine the estimated cost at completion.They are simply different approaches.The EAC_re is determined by experts in the field and the EAC_fis a mathematical approach which assumes the CPI as the basis for forecasting cost at completion.

Question 5

Although it is very difficult to measure, measuring technical performance is as important as measuring schedule and cost performance.

Accepted Answer

It is very difficult to specify how to measure technical performance because it depends on the nature of the project.Suffice it to say, measuring technical performance must be done.Technical performance is frequently where quality control processes are needed and used.Project managers must be creative in finding ways to control this very important area.

Question 6

Schedule variance measures progress in time units.

Accepted Answer

Schedule variance measures progress in dollars rather than time units.Therefore, it is unlikely that any translation of dollars to time will yield accurate information telling if any milestone or critical path is early, on-time, or late.

Question 7

A "rubber baseline" occurs when, in an effort to disguise poor performance, the baseline changes to constantly match results.

Accepted Answer

Care should be taken not to use baseline changes to disguise poor performance on past or current work.A common signal of this type of baseline change is a constantly revised baseline that seems to match results.Practitioners call this a "rubber baseline" because it stretches to match results.

Question 8

Earned value is defined as the budgeted cost of the actual work performed.

Accepted Answer

Earned value (EV)is defined as the budgeted cost of the work performed.Earned value is the percentage complete times the budgeted cost of an activity or activities.

Question 9

The PV, AC and CV are all required to assess the current status of the project.

Accepted Answer

PV, EV and AC are all required to assess the current status of the project.From these values project variances and efficiency ratios can be calculated.

Question 10

Progress and performance can be measured quantitatively as well as qualitatively.

Accepted Answer

Time and budgets are quantitative measures of performance that readily fit into the integrated information system.Qualitative measures such as meeting customer technical specifications and product function are most frequently determined by on-site inspection or actual use.

Question 11

Most changes will not result in serious scope changes and should be absorbed as positive or negative variances.

Accepted Answer

Project managers should allow scope changes only if it is clear that the project will fail without the change, the project will be improved significantly with the change, or the customer wants it and will pay for it.Most changes will not result in serious scope changes and should be absorbed as positive or negative variances.

Question 12

The baseline is derived from merging information from the work packages with the project network.

Accepted Answer

The baseline is derived from the cost and duration information found in the work breakdown structure (WBS)database and time-sequence data from the network and resource scheduling decisions.

Question 13

The best method for assigning costs to the baseline under the 50/50 rule is to establish frequent checkpoints over the duration of the work package and assign completion percentages in dollar terms.

Accepted Answer

The best method for assigning costs to the baseline under the percent complete rule is to establish frequent checkpoints over the duration of the work package and assign completion percentages in dollar terms.

Question 14

Because of their easy-to-understand visual format, tracking Gantt charts are the most favored, used, and understandable option for reporting project status.

Accepted Answer

The Gantt chart is the most favored, used, and understandable.This kind of chart is commonly referred to as a tracking Gantt chart.Gantt and control charts serve well as a means for tracking and trending schedule performance.Their easy-to-understand visual formats make them favorite tools for communicating project schedule status-especially to top management, who do not usually have time for details.

Question 15

A project control system allows for comparing actual performance against plan to identify deviations; however, the system doesn't impact the quality of communication between stakeholders.

Accepted Answer

A project control system allows for accurate information regarding the current status of a project to be communicated to stakeholders.

Question 16

All scope changes that result in increased costs should be avoided.

Accepted Answer

Although scope changes are usually viewed negatively, there are situations when scope changes result in positive rewards.Scope changes can represent significant opportunities.In product development environments, adding a small feature to a product can result in a huge competitive advantage.A small change in the production process may get the product to market one month early or reduce product cost.

Question 17

An undesirable schedule variance always indicates that the project is running behind schedule.

Accepted Answer

A negative schedule variance suggests problems or changes that have taken place.Schedule variance measures progress in dollars rather than time units.Therefore, it is unlikely that any translation of dollars to time will yield accurate information telling if any milestone or critical path is early, on-time, or late.

Question 18

A CPI index of 0.97 indicates that the project has spent less money than budgeted.

Accepted Answer

A CPI index of 0.97 indicates that you are only earning $.97 of planned work for each dollar spent.

Question 19

In calculating schedule variance and cost variance, a negative variance indicates a desirable condition, and a positive variance suggests problems.

Accepted Answer

A positive variance indicates a desirable condition, while a negative variance suggests problems or changes that have taken place.

Question 20

Baseline costs typically include labor, equipment, materials and direct overhead cost.

Accepted Answer

The baseline (PV)is the sum of the cost accounts, and each cost account is the sum of the work packages in the cost account.Three direct costs are typically included in baselines-labor, equipment, and materials.

Quiz 13: Progress and Performance Measurement and Evaluation