Project Management Study Set 3

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

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

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

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.

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

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

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

A project manager notices that the current EV for his project is lower than both the PV and the AC. He has reason to be concerned about the underperforming project.

A CPI index of 1.11 indicates that the project has spent less money than earned.

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

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

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

Schedule variance measures progress in time units.

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.

In some cases, conditions or scope can change, which, in turn, will require a change in the baseline plan to recognize new information.

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

The PCIC index measures the project percent complete in relation to the actual resources used so far on the project.

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

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.

When revising the estimated cost at completion, there are two approaches. The EAC_{re< / sub> is determined by experts in the field and the EACf< / sub> is a mathematical approach which assumes the CPI as the basis for forecasting cost at completion.}