question

Analogous Estimating is also known as? (2 terms)

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top-down estimating or as making an order-of-magnitude estimate

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This type of estimate is typically done as part of the business case development or during the early stages of scope planning when there isn't a lot of detail on the project

answer

Analogous or top-down estimating

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What type of estimating uses historical data from past projects along with expert judgment to create a big-picture estimate?

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Analogous estimating (top-down, order-of-magnitude)

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What type of estimates are the least accurate of all the estimating techniques but also the least costly. Analogous estimates rely on expert judgment.

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Analogous estimating (top-down, order-of-magnitude)

question

What type of estimating is done during the business case or early stages of the project?

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Analogous estimating (top-down, order-of-magnitude)

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Parametric estimating is dependent on what?

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Parametric estimating is dependent on the accuracy of the data used to create the cost estimating model.

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What type of estimating is the most concise and accurate?

answer

Bottom up estimating

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What type of estimating assigns a cost estimate to each work package on the project?

answer

Bottom up estimating

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What are the 2 critical inputs for a bottom-up estimate?

answer

WBS and project resource requirements

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What is the formula used for Parametric estimating?

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The quantity of work multiplied by the rate.

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Of the 3 types of estimating, analogous, parametric, and bottom up, which is the most time consuming?

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Bottom-up estimates are the most accurate of all the estimating techniques, but they're also the most time-consuming to perform

question

When you are calculating cost estimates, you need to base the estimate on work effort. What is work effort?

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The total time it will take for a person to complete the task if they do nothing else from the time they start until the task is complete.

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What is a work effort estimate is also referred to as?

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A person-hour estimate.

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Assume there is a task to perform technical writing that has an activity duration estimate of four days. When you perform cost planning, you need to know the actual number of hours spent performing the task. So, let's say the technical writer is allocating 5 hours a day to the project over the course of 4 days. How do you calculate the work effort?

answer

The work effort (person-hour estimate) is calculated by multiplying the hours times the days. The work effort estimate is 5 hours a day multiplied by 4 days, which equals 20 hours.

question

Duration estimates help you calculate what?

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How long the project will take to complete for schedule planning

question

Work effort helps you calculate what?

answer

How much the project will cost when you are doing cost planning.

question

How do you find out the rate to use for cost estimating?

answer

For materials or equipment, the current cost of a similar item is probably as accurate as you can get. The largest overall cost for many projects is the human resource or labor cost, and this cost is often the most difficult to estimate. The actual rate that someone will be paid to perform work, even within the same job title, can fluctuate based on education and experience level. If you're procuring contract resources, you'll get a rate sheet that describes the rates for a given job title and the resource's travel rates if they're coming from out of town.

question

How do you calculate the cost of each task?

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The cost of each task is calculated by multiplying the work effort for each resource by the rate for that resource.

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How do you calculate the total project cost estimate?

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The cost for each task was calculated by listing each resource and multiplying the work effort by the rate for each resource (task). Now you add all those together to get the total project cost estimate.

question

Example of a total project cost estimate.

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Resource number one: Tech writer with a work effort of 20 hours at $30 an hour. 20 multiplied by 30 equals $600 for the total cost of that task. Resource number two: programmer with a work effort of 100 hours at $50 an hour. 100 times 50 equals $100,000. Add these together (600 + 100,000) and you get the total project cost estimate of 100,600.

question

How do you calculate a bottom-up estimate?

answer

Work effort estimates are provided for each activity and then rolled up into an overall estimate for the deliverable or the project.

question

What is cost budgeting?

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The process of aggregating all the cost estimates and establishing a cost baseline for the project. The project budget is used to track the actual expenses incurred against the estimates

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What is the cost baseline?

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The total expected cost for the project. Once approved, it's used throughout the remainder of the project to measure the overall cost performance.

question

What is a contingency reserve?

answer

A contingency reserve is a certain amount of money set aside to cover costs resulting from possible adverse events on the project. These costs may come about for many reasons, including scope creep, risks, change requests, variances in estimates, cost overruns, and so on. There are always expenses that come up later during the project that we didn't plan for up front. The contingency fund is designed to cover these types of expenses.

question

What is a management reserve?

answer

A management reserve is an amount set aside by upper management to cover future situations that can't be predicted. As with the contingency reserve, the amount of a management reserve is typically based on a percentage of the total project cost.

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What makes a management reserve different from a contingency reserve?

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What makes the management reserve different from the contingency reserve is the spending authority and the fact that it covers unforeseen costs. The contingency fund is usually under the discretion of the project manager, who controls how these funds are spent. The management fund is usually controlled by upper management, and the project manager can't spend money out of this fund without approval from upper management. Management reserves are not included as part of the project budget or cost baseline.

question

The project budget is used to create what?

answer

The cost baseline.

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What is the cost baseline?

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The total approved expected cost for the project

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What is Quality planning?

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The process of identifying quality standards and determining how to meet those standards.

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What is a quality management plan? What does it describe?

answer

A plan that describes how the project team will carry out the quality policy or policies.

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What are the 3 tools or techniques used for quality planning?

answer

Cost benefit analysis, benchmarking, and flow charting

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What is benchmarking?

answer

A technique that uses similar activities as a means of comparison. It compares the before and after results or compares previous similar activities from past projects to current projects.

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When is benchmarking useful?

answer

When you're changing or upgrading the way you do business

question

What do flow charts help determine?

answer

Flow charts determine or help anticipate where and when a problem may occur

question

What is cost of quality?

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Cost of quality is the total cost of all the work required to ensure the project meets the quality standards.

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What are the 3 types if cost associated with quality?

answer

Prevention, appraisal, and failure

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What are prevention costs?

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The costs of keeping defects out of the hands of customers.

question

What are some examples of prevention costs?

answer

Quality planning, training, design review, contractor/supplier costs, and testing performed

question

What are appraisal costs?

answer

Costs associated with activities performed to examine the product or process and make sure quality requirements are being met.

question

What are 3 examples of appraisal costs?

answer

Inspection, testing, and quality audits

question

What are failure costs?

answer

The cost of activities needed if the product fails.

question

What are failure costs also known as?

answer

The cost of poor quality

question

What are the 2 categories of failure costs?

answer

Internal and external

question

When do internal failure costs happen?

answer

When the customer is not satisfied but the product is still under the control of the organization.

question

What are some examples of internal failure costs?

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Cost of corrective action, rework, scrapping, and downtime.

question

When do external failure costs happen?

answer

When the product has reached the customer and they determine quality requirements have not been met.

question

What are some examples of external failure costs?

answer

Inspections at the customer site, returns and customer service costs.

question

The cost benefit analysis is used for planning quality management and what else? (early stage of project)

answer

Project selection. Cost benefit analysis is also a project selection tool.

question

What type of estimating technique rolls up costs starting from the work package level?

answer

Bottom-up

question

Which project process group involves measuring the work of the project and making sure project team members stay on task and on schedule?

answer

Monitoring and Controlling

question

What is the longest path through a network diagram?

answer

Critical path

question

Name the two types of failure costs. Internal failure costs and external failure costs

answer

Internal failure costs and external failure costs

question

State the purpose for performing quality control.

answer

This involves monitoring work results to determine whether they comply with the standards set out in the quality management plan

question

Name the three common causes of variance.

answer

Random variances, known or predictable variances, and variances always present in the process

question

This funding allocation is set aside by the management team to cover future expenses on the project that can't be planned for.

answer

Management reserve

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Name the formula for EAC.

answer

EAC is Estimate at Completion. The formula is EAC = AC + ETC. AC is actual Cost. ETC is Estimate to Complete (bottom up)

question

Describe what occurs when performing administrative closure procedures.

answer

Project documents are gathered and centralized, a post-project review is performed, and the final project closeout report is created

question

Consensus on a WBS should be obtained from which group?

answer

Stakeholders

question

What is the term for a symptom that means a risk event is about to occur?

answer

Risk trigger

question

Task estimating by using people who are familiar with the tasks is called what?

answer

Expert judgment

question

Name the process group that obtains sign-off of a successful project.

answer

Closing

question

Name the positive risk response strategies. (4)

answer

Exploit, share, enhance, and accept

question

Name the two risk analysis techniques.

answer

Qualitative risk analysis and quantitative risk analysis

question

This is the total, approved, expected cost for the project.

answer

Cost baseline

question

Name the negative risk response strategies. (4)

answer

Avoid, transfer, mitigate, and accept

question

This quality-planning technique compares and measures similar activities.

answer

Benchmarking

question

What formal document contains all of the plans created during the project process group?

answer

Project management plan

question

What funding allocation is an amount of money set aside to deal with the cost of possible adverse events?

answer

Contingency reserve

question

What is Actual cost (AC)

answer

The cost to complete a component of work in a given time period. Actual costs include direct and indirect costs

question

Addition

answer

A type of project ending that occurs when projects evolve into ongoing operations

question

Bottom-up estimating

answer

Individually estimating each work package, all of which are then rolled up, or added together, to come up with a total project estimate. This is a very accurate means of estimating, provided the estimates at the work package level are accurate

question

Comprehensive project plan.

answer

Integrates all planning data into one document that the project manager can use as a guidebook to oversee the project work during the Executing and Controlling phases

question

Definitive estimate

answer

An estimating technique that assigns a cost estimate to each work package in the project WBS. This is the most accurate of the cost estimating techniques, which typically falls within −5 percent and +10 percent of the actual budget.

question

Deliverable

answer

An output or result that must be completed in order to consider the project complete or to move forward to the next phase of the project. Deliverables are tangible and can be measured and easily proved.

question

Failure costs

answer

The cost if the product fails, including downtime, user support, rework, and scrapping the project

question

Fast-tracking.

answer

A schedule compression technique where two activities that were previously scheduled to start sequentially start at the same time. Fast-tracking reduces schedule duration

question

Feasibility study

answer

Undertaken to determine whether the project is a viable project, the probability of project success, and the viability of the product of the project

question

Finish-to-finish

answer

A project task relationship in which the finish of the successor task is dependent on the finish of the predecessor task.

question

Finish-to-start

answer

A project task relationship in which the successor task cannot begin until the predecessor task has completed.

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This project process group is where activities are performed to monitor the progress of the project and determine whether there are variances from the project plan. Corrective actions are taken during this process to get the project back on course.

answer

Monitoring and Controlling

question

A quantitatively based estimating technique that is typically calculated by multiplying rate times quantity.

answer

Parametric estimating

question

A grouping of related projects that are managed together to capitalize on benefits that couldn't be achieved if the projects were managed separately.

answer

Program

question

Calculates the expected value, or weighted average, of critical path tasks to determine project duration by using three estimates: most likely, pessimistic, and optimistic.

answer

Program evaluation and review technique (PERT)

question

What is the PERT calculation?

answer

The PERT calculation is (optimistic + pessimistic + (4 × most likely)) / 6.

question

Reports from project team members listing the tasks each team member is working on, the current progress of each task, and the work remaining.

answer

Progress reports

question

Determining the impact of identified risks on the project and the probability they'll occur. Aligns risks in a priority order according to their effect on the project objectives.

answer

Qualitative risk analysis

question

A potential future event that can have either negative or positive consequence

answer

Risk

question

The process used to identify and focus on those risks that are the most critical to the success of your project.

answer

Risk analysis

question

Identifying the potential project risks and documenting their characteristics.

answer

Risk identification

question

A numbered list of risks that are produced during the risk identification process and that are documented within a risk register.

answer

Risk list

question

Details how risk management processes will be implemented, monitored, and controlled throughout the life of the project. It does not define responses to individual risks.

answer

Risk management plan

question

The process that involves implementing the risk response plan, tracking and monitoring identified risks, and identifying and responding to new risks as they occur.

answer

Risk monitoring and control

question

Identifying, analyzing, and determining how risk events will be managed for a project.

answer

Risk planning

question

A process that describes how to reduce threats and take advantage of opportunities, documents the plan for negative and positive risk events, and assigns owners to each risk.

answer

Risk response planning

question

An event that warns a risk is imminent and a response plan should be implemented

answer

Risk trigger

question

A task relationship where the finish of the successor task is dependent on the start of its predecessor

answer

Start-to-finish

question

A project task relationship where the start of the successor task depends on the start of the predecessor task.

answer

Start-to-start

question

The total time it takes for a person to complete a task if they did nothing else from the time they started until the task was complete.

answer

Work effort

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