Chapter 13 - Progress and Performance Measurement and Evaluation
Chapter 13 Progress and Performance Measurement and Evaluation Multiple Choice Questions
1. A project monitoring system involves all of the following e cept! A. "etermining what date to collect #. "etermining how$ when$ and who will collect the data C. Adjusting the data ". Analysis of the data E. %eporting current progress
&. Ade'uate project controls have the advantage(s) of! A. *olding people accounta+le #. Prevents small pro+lems from getting large C. ,eeping focus ". #oth A and # are correct E. A$ #$ and C are all correct
3. A typical project progress report would contain a ll of the following sections ecept! A. Progress since last report #. Pro+lems and issues since last report C. Current status of project ". Corrective action planned E. All of these are typical sections
. he first step in the project control process of the measurement and evaluation of project performance is to A. /et a +aseline plan #. "etermine the project o+jectives C. "etermine the project delivera+les ". Analy0e the project +udget E. %eview the project priority matri
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Chapter 13 - Progress and Performance Measurement and Evaluation
. he second step in the project control process of the measurement and evaluation of project performance is to! A. %eview the +aseline plan with top management #. Analy0e inputs to control system C. Compare plan against actual ". Measure progress and performance E. %eview spending with team mem+ers
2. he third step in the project control process of the measurement and evaluation of project performance is to! A. %eview the +aseline plan with top management #. Analy0e inputs to the control system C. Compare the plan against actual performance ". Measure +oth progress and performance E. %eview spending with team mem+ers
. he last step in the project p roject control process of the measurement and evaluation of project performance is to! A. a4e appropriate action #. Prepare a report to top management C. 5ollow up on corrective action ". Measure progress and performance E. %eview spending with team mem+ers
6. 7n monitoring project time (schedule) performance actual performance should +e compared to! A. #udgets for the current year #. op management8s targets C. Project networ4 schedule derived from the 9#/:;#/ ". Progress on similar past projects E. Previous status reports
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Chapter 13 - Progress and Performance Measurement and Evaluation
<. A typical tool used to communicate project status is a! A. Project networ4 diagram #. =antt Chart C. A PE% chart ". #oth A and # are correct E. A$ #$ and C are all correct
1>. A tool used to monitor past p ast project schedule performance$ current performance$ and to estimate future schedule trends is a simple line chart 4nown as a! A. Project schedule control chart #. =antt chart C. PE% chart ". ?etwor4 diagram E. Milestone chart
11. An Earned An Earned Value System used System used to monitor project progress includes comparison of A. Actual costs versus +udget #. /chedule progress versus plan C. @uality progress versus plan ". #oth A and # are correct E. A$ #$ and C are all correct
1&. he earned value of a project is the! A. Project cost to date adjusted for project scop e changes #. otal project cost to date C. Cost incurred minus the planned cost ". Percent of the original +udget that has +een earned +y actual wor4 E. ?one of these are correct
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Chapter 13 - Progress and Performance Measurement and Evaluation
13. he cost variance for a project is calculated +y! A. E-AC #. AC-/ C. P-E ". CB-E E. EB-P
1. he schedule variance for a project is calculated +y! A. E-AC #. AC-/ C. P-E ". CB-E E. E-P
1. #aseline project +udgets are derived from! A. he organi0ation8s overall +udget #. ime-phasing the wor4 pac4ages C. op management directions ". #oth A and C are correct E. A$ #$ and C are all correct
12. ;f the following costs$ which are not included in +aseline A. Materials #. E'uipment C. Da+or ". A and C +ut not # E. All of these are usually included
1. he method most fre'uently used in measuring project progress is the A. >:1>> percent rule #. :& percent rule C. >:> percent rule ". &: percent rule E. Percent complete rule
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Chapter 13 - Progress and Performance Measurement and Evaluation
16. =enerally the method for measuring accomplishments centers on comparing A. Earned value with the epected schedule value #. Earned value with the actual costs C. Actual costs with +udgeted costs ". #oth A and # are correct E. A$ #$ and C are all correct
1<. 9hich of the following are re'uired to assess the current status of a project using the earned-value cost:schedule system A. #AC$ EAC$ and EC #. AC$ EAC$ and #AC C. C$ /B$ and #AC ". P$ E$ and AC E. CP7$ E$ and P
&>. 9hich of the following methods of variance analysis is the +est indicator of how far off the +udget a project will +e at completion A. #AC #. EAC C. EC ". AC E. CP7
&1. 9hich of the following methods will measure the cost efficiency of the wor4 accomplished to date A. /:C #. E:P C. E:AC ". AC:/ E. AC:C
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Chapter 13 - Progress and Performance Measurement and Evaluation
&&. 9hich of the following methods will measure the scheduling efficiency of the wor4 accomplished to date A. /:C #. E:P C. E:AC ". AC:/ E. AC:C
&3. An inde value less than one indicates that the project is A. Bnder cost or +ehind schedule #. ;ver cost or ahead of schedule C. Bnder cost or ahead of schedule ". ;ver cost or +ehind schedule E. ;n cost or on schedule
&. /cope creep affects! A. he organi0ation #. he project team C. he project suppliers ". #oth A and # are correct E. A$ #$ and C are all correct
&. /mall refinements that eventually +uild to +e major changes are 4nown as! A. Project erosion #. /cope creep C. /pecification adjustments ". /pecification refinements E. Continuous improvements
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Chapter 13 - Progress and Performance Measurement and Evaluation
&2. he percent complete inde that loo4s at percent complete in terms of +udgeted amounts is calculated +y which of the following A. E:#AC #. (E-P):#AC C. AC:EAC ". (E-AC):#AC E. (E-P):EAC
&. he percent complete inde that loo4s at percent complete in terms of actual amounts is calculated +y which of the following A. E:#AC #. (E-P):#AC C. AC:EAC ". (E-AC):#AC E. (E-P):EAC
&6. 9hich of the following will calculate the estimated cost to complete the project A. (AC-E):(P:AC) #. (#AC-E):(E:AC) C. (P:AC):(AC-E) ". (E:AC):(#AC-E) E. (#AC-E):(#AC-AC)
&<. 9hich of the following will calculate the o Complete Performance 7nde A. (AC-E):(P:AC) #. (#AC-E):(E:AC) C. (P:AC):(AC-E) ". (E:AC):(#AC-E) E. (#AC-E):(#AC-AC)
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Chapter 13 - Progress and Performance Measurement and Evaluation
3>. 9hich of the following is not true regarding scope creep A. 7t is common late in projects #. 7t is fre'uently unnoticed until time delays or cost overruns are o+served C. 7t wears down team motivation and cohesiveness ". Project suppliers resent fre'uent changes E. All of these are true
Fill in the Blank Questions
31. holds people accounta+le$ prevents small pro+lems from mushrooming into large pro+lems$ and 4eeps focus.
3&. he first step in creating a project control system for measuring and evaluating project performance is to .
33. A concept of is necessary to get a realistic estimate of performance against a time-phased +udget.
3. Bsually status reports should ta4e place every wee4s to +e useful and allow for proactive correction.
3. #ecause of their easy-to-understand visual format$ are the most favored$ used$ and understanda+le tool used to report project status.
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Chapter 13 - Progress and Performance Measurement and Evaluation
32. Control charts are fre'uently used to monitor progress toward $ which mar4 events and as such have 0ero duration.
3. he is a tool used to monitor past project schedule performance and current performance and to estimate future schedule trends.
36. he is the difference +etween the earned value and the actual costs for the wor4 completed to date.
3<. he is the difference +etween the earned value to date and the +aseline schedule.
>. is simply the percent complete$ times the original +udget.
1. he +est method for assigning costs to the +aseline is to esta+lish fre'uent over the duration of the wor4 pac4age.
&. 9hen measuring percent complete in the monitoring phase of the project$ it is common to limit the amount earned to until the wor4 pac4age is 1>> percent complete.
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Chapter 13 - Progress and Performance Measurement and Evaluation
3. he is the rule most fre'uently used +y practicing project managers to +oth assign costs to the +aseline and to measure progress using earned value.
. Cost variance tells us if the costs are more or less than was planned at any point over the life of the project.
. A positive variance in / or C indicates a condition.
2. he units of measure for / or C is in terms of .
. CP7 and /P7 are two types of indees that measure .
6. he indees compare the to-date progress to the end of the project.
<. An /P7 inde of 1.&& indicates that the project is schedule.
>. Although it is very difficult to measure$ measuring performance is as important as measuring schedule and cost performance.
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Chapter 13 - Progress and Performance Measurement and Evaluation
1. he +est defense against scope creep is a .
True / False Questions
&. he PC7# inde measures the project percent complete in relation to the resources that were +udgeted. rue 5alse
3. he PC7C inde measures the project percent complete in relation to the resources that have actually +een used so far on the project. rue 5alse
. Control is one of the most neglected areas of project management. rue 5alse
. Measuring performance against +udget is simply a case of comparing actual versus +udget. rue 5alse
2. Earned value is defined as the +udgeted cost of the wor4 performed. rue 5alse
. he +aseline is derived from merging information from the wor4 pac4ages with the project networ4. rue 5alse
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Chapter 13 - Progress and Performance Measurement and Evaluation
6. he networ4 chart is the most favored$ used$ and understanda+le option for reporting project progress to upper management. rue 5alse
<. 7n a project control chart$ four o+servations trending in one direction indicate there is a very high pro+a+ility that there is an identifia+le cause. rue 5alse
2>. Milestones are significant project events that mar4 major accomplishments. rue 5alse
21. he +est method for assigning costs to the +aseline under this rule is to esta+lish fre'uent chec4points over the duration of the wor4 pac4age and assign completion percentages in dollar terms. rue 5alse
2&. he original earned value cost:schedule system was pioneered +y the B./. "ep artment of "efense in the 1<2>s. rue 5alse
23. Earned value is calculated +y ta4ing the percent complete times the original +udget. rue 5alse
2. #aseline costs typically include la+or$ e'uipment$ materials and direct overhead cost. rue 5alse
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Chapter 13 - Progress and Performance Measurement and Evaluation
2. ;verhead costs and profit are typically included in the project +aseline. rue 5alse
22. he major reasons for creating a +aseline are to monitor and report progress and to estimate cash flow. rue 5alse
2. 7n calculating schedule variance and cost variance$ a negative variance indicates a desira+le condition$ and a positive variance suggests pro+lems. rue 5alse
26. An undesira+le schedule variance indicates that the project is running +ehind schedule. rue 5alse
2<. Cost variance tells us the different estimates among vend ors needed to complete the project over the life of the project. rue 5alse
>. A CP7 inde of >.< indicates that the project has spent less money than +udgeted. rue 5alse
1. ;ne method of estimating the costs to complete a project is to divide the wor4 remaining +y the CP7. rue 5alse
&. All scope changes that result in increased costs should +e avoided. rue 5alse
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Chapter 13 - Progress and Performance Measurement and Evaluation
3. Scope Creep refers to any significant changes made in the project once it is underway. rue 5alse
. he 4ey to managing scope creep is change management. rue 5alse
. he +est defense against scope creep is accepting only major changes. rue 5alse
2. he rule of using su+jective estimated percent complete in com+ination with hard$ tangi+le monitoring points wor4s well on long-duration activities that can +e +ro4en into short discrete wor4 pac4ages. rue 5alse
hort !ns"er Questions
. 7dentify the steps in creating a control process that measure and evaluate project performance.
6. 9hat is the difference +etween a +aseline =antt chart and a rac4ing =antt chart
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Chapter 13 - Progress and Performance Measurement and Evaluation
<. 7dentify and +riefly descri+e the three percent complete rules for placing costs in +aselines.
6>. Conducting an earned value analysis re'uires three data elements. 7dentify the acronyms for each and descri+e what they are.
61. 7n reviewing the +udget report of a project$ you notice that spending on the project is running a+out ten percent over plan. 7s the project in trou+le 9hy or why not
6&. 7nterpret the results of calculating the performance indees +ased on a range of possi+le calculated values.
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Chapter 13 - Progress and Performance Measurement and Evaluation
63. 7dentify the four indees used in project management control and identify the formulas for calculating the indees.
6. 7dentify and +riefly discuss the two methods to revise estimates of future project costs.
6. 9hat are 9eighted Monitoring =ates and why would you need them
62. 9hat is scope creep and why should a project manager +e concerned a+out it
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Chapter 13 - Progress and Performance Measurement and Evaluation
6. ypically$ project progress reports are designed and communicated in written or oral form. 7dentify the common topic format for such progress reports.
66. #riefly descri+e the general structure of a project monitoring information system for control.
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Chapter 13 - Progress and Performance Measurement and Evaluation
Chapter 13 Progress and Performance Measurement and Evaluation Answer ,ey
Multiple Choice Questions
1. A project monitoring system involves all of the following e cept! A. "etermining what date to collect #. "etermining how$ when$ and who will collect the data C# Adjusting the data ". Analysis of the data E. %eporting current progress A project monitoring system involves determining what data to co llectF how$ when$ and who will collect the dataF analysis of the dataF and reporting current progress.
AACSB: Analytic Bloom's: Comprehension Learning Objective: Structure o a !roject "onitoring #normation System Level: Easy
&. Ade'uate project controls have the advantage(s) of! A. *olding people accounta+le #. Prevents small pro+lems from getting large C. ,eeping focus ". #oth A and # are correct E# A$ #$ and C are all correct /ee list on page 3.
AACSB: $elective %hin&ing Bloom's: no(ledge Learning Objective: Structure o a !roject "onitoring #normation System Level: "edium
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Chapter 13 - Progress and Performance Measurement and Evaluation
3. A typical project progress report would contain a ll of the following sections ecept! A. Progress since last report #. Pro+lems and issues since last report C. Current status of project ". Corrective action planned E# All of these are typical sections /ee list on page .
AACSB: $elective %hin&ing Bloom's: Comprehension Learning Objective: Structure o a !roject "onitoring #normation System Level: Easy
. he first step in the project control process of the measurement and evaluation of project performance is to !# /et a +aseline plan #. "etermine the project o+jectives C. "etermine the project delivera+les ". Analy0e the project +udget E. %eview the project priority matri /ee list on page .
Chapter 13 - Progress and Performance Measurement and Evaluation
. he second step in the project control process of the measurement and evaluation of project performance is to! A. %eview the +aseline plan with top management #. Analy0e inputs to control system C. Compare plan against actual $# Measure progress and performance E. %eview spending with team mem+ers /ee list on page .
2. he third step in the project control process of the measurement and evaluation of project performance is to! A. %eview the +aseline plan with top management #. Analy0e inputs to the control system C# Compare the plan against actual performance ". Measure +oth progress and performance E. %eview spending with team mem+ers /ee list on page .
Chapter 13 - Progress and Performance Measurement and Evaluation
. he last step in the project control process of the measurement and evaluation of project performance is to! !# a4e appropriate action #. Prepare a report to top management C. 5ollow up on corrective action ". Measure progress and performance E. %eview spending with team mem+ers /ee list on page .
6. 7n monitoring project time (schedule) performance actual performance should +e compared to! A. #udgets for the current year #. op management8s targets C# Project networ4 schedule derived from the 9#/:;#/ ". Progress on similar past projects E. Previous status reports A major goal of progress reporting is to catch any negative variances from plan as early as possi+le to determine if corrective action is necessary. 5ortunately$ monitoring schedule performance is relatively easy. he project networ4 schedule$ derived from the 9#/:;#/$ serves as the +aseline to compare against actual performance.
Chapter 13 - Progress and Performance Measurement and Evaluation
<. A typical tool used to communicate project status is a! A. Project networ4 diagram B# =antt Chart C. A PE% chart ". #oth A and # are correct E. A$ #$ and C are all correct =antt charts (+ar charts) and control charts are the typical tools used for communicating project schedule status.
1>. A tool used to monitor past project schedule performance$ current performance$ and to estimate future schedule trends is a simple line chart 4nown as a! !# Project schedule control chart #. =antt chart C. PE% chart ". ?etwor4 diagram E. Milestone chart his chart is another tool used to monitor past project schedule performance and current performance and to estimate future schedule trends.
Chapter 13 - Progress and Performance Measurement and Evaluation
11. n Earned Value System used to monitor project progress includes comparison of A. Actual costs versus +udget #. /chedule progress versus plan C. @uality progress versus plan $# #oth A and # are correct E. A$ #$ and C are all correct he earned value system starts with the time-phased costs that provide the project +udget +aseline$ which is called the planned +udgeted value of the wor4 scheduled (P). =iven this time-phased +aseline$ comparisons are made with actual and planned schedule and costs using earned value. he earned value approach provides the missing lin4s not found in conventional cost-+udget systems.
AACSB: Analytic Bloom's: no(ledge Learning Objective: )evelopment o An Earned Value Cost*Schedule System Level: "edium
1&. he earned value of a project is the! A. Project cost to date adjusted for project scop e changes #. otal project cost to date C. Cost incurred minus the planned cost $# Percent of the original +udget that has +een earned +y actual wor4 E. ?one of these are correct Earned value for a tas4 is simply the percent complete times its original +udget. /tated differently$ E is the percent of the original +udget that has +een earned +y actual wor4 completed.
AACSB: Analytic Bloom's: no(ledge Learning Objective: )evelopment o An Earned Value Cost*Schedule System Level: "edium
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Chapter 13 - Progress and Performance Measurement and Evaluation
13. he cost variance for a project is calculated +y! !# E-AC #. AC-/ C. P-E ". CB-E E. EB-P /ee a+le 13.1 on page <.
AACSB: Analytic Bloom's: no(ledge Learning Objective: )evelopment o An Earned Value Cost*Schedule System Level: "edium
1. he schedule variance for a project is calculated +y! A. E-AC #. AC-/ C. P-E ". CB-E E# E-P /ee a+le 13.1 on page <.
AACSB: Analytic Bloom's: no(ledge Learning Objective: )evelopment o An Earned Value Cost*Schedule System Level: "edium
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Chapter 13 - Progress and Performance Measurement and Evaluation
1. #aseline project +udgets are derived from! A. he organi0ation8s overall +udget B# ime-phasing the wor4 pac4ages C. op management directions ". #oth A and C are correct E. A$ #$ and C are all correct he earned value system starts with the time-phased costs that provide the project +udget +aseline$ which is called the planned +udgeted value of the wor4 scheduled (P). =iven this time-phased +aseline$ comparisons are made with actual and planned schedule and costs using earned value. he earned value approach provides the missing lin4s not found in conventional cost-+udget systems.
AACSB: $elective %hin&ing Bloom's: no(ledge Learning Objective: )evelopment o An Earned Value Cost*Schedule System Level: "edium
12. ;f the following costs$ which are not included in +aseline A. Materials #. E'uipment C. Da+or ". A and C +ut not # E# All of these are usually included he +aseline (P) is the sum of the cost accounts$ and each cost account is the sum of the wor4 pac4ages in the cost account. hree direct costs are typically included in +aselinesG la+or$ e'uipment$ and materials.
AACSB: Analytic Bloom's: no(ledge Learning Objective: )evelopment o An Earned Value Cost*Schedule System Level: "edium
13-&
Chapter 13 - Progress and Performance Measurement and Evaluation
1. he method most fre'uently used in measuring project progress is the A. >:1>> percent rule #. :& percent rule C. >:> percent rule ". &: percent rule E# Percent complete rule his rule is the heart of any earned value system. he +est method for assigning costs to the +aseline under this rule is to esta+lish fre'uent chec4points over the duration of the wor4 pac4age and assign completion percentages in dollar terms.
AACSB: $elective %hin&ing Bloom's: Comprehension Learning Objective: )evelopment o An Earned Value Cost*Schedule System Level: Easy
16. =enerally the method for measuring accomplishments centers on comparing A. Earned value with the epected schedule value #. Earned value with the actual costs C. Actual costs with +udgeted costs $# #oth A and # are correct E. A$ #$ and C are all correct =enerally the method for measuring accomplishments centers on two 4ey computations! 1. Comparing earned value with the epected schedule value. And &. Comparing earned value with the actual costs.
AACSB: Analytic Bloom's: no(ledge Learning Objective: )evelopment o An Earned Value Cost*Schedule System Level: "edium
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Chapter 13 - Progress and Performance Measurement and Evaluation
1<. 9hich of the following are re'uired to assess the current status of a project using the earned-value cost:schedule system A. #AC$ EAC$ and EC #. AC$ EAC$ and #AC C. C$ /B$ and #AC $# P$ E$ and AC E. CP7$ E$ and P Assessing the current status of a project using the earned value cost:schedule system re'uires three data elementsGplanned cost of the wor4 scheduled (P)$ +udgeted cost of the wor4 completed (E)$ and actual cost of the wor4 completed (AC).
AACSB: Analytic Bloom's: no(ledge Learning Objective: )evelopment o An Earned Value Cost*Schedule System Level: )iicult
&>. 9hich of the following methods of variance analysis is the +est indicator of how far off the +udget a project will +e at completion A. #AC #. EAC C. EC $# AC E. CP7 Cost variance at completion. AC indicates epected actual over- or underrun cost at completion.
AACSB: Analytic Bloom's: no(ledge Learning Objective: )evelopment o An Earned Value Cost*Schedule System Level: )iicult
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Chapter 13 - Progress and Performance Measurement and Evaluation
&1. 9hich of the following methods will measure the cost efficiency of the wor4 accomplished to date A. /:C #. E:P C# E:AC ". AC:/ E. AC:C Cost performance inde (CP7) H E:AC.
&&. 9hich of the following methods will measure the scheduling efficiency of the wor4 accomplished to date A. /:C B# E:P C. E:AC ". AC:/ E. AC:C /cheduling performance inde (/P7) H E:P.
Chapter 13 - Progress and Performance Measurement and Evaluation
&3. An inde value less than one indicates that the project is A. Bnder cost or +ehind schedule #. ;ver cost or ahead of schedule C. Bnder cost or ahead of schedule $# ;ver cost or +ehind schedule E. ;n cost or on schedule /ee a+le 13.3 on page 2<.
&. /cope creep affects! A. he organi0ation #. he project team C. he project suppliers ". #oth A and # are correct E# A$ #$ and C are all correct /cope creep affects the organi0ation$ project team$ and project suppliers.
AACSB: $elective %hin&ing Bloom's: Comprehension Learning Objective: Other Control #ssues Level: "edium
13-&<
Chapter 13 - Progress and Performance Measurement and Evaluation
&. /mall refinements that eventually +uild to +e major changes are 4nown as! A. Project erosion B# /cope creep C. /pecification adjustments ". /pecification refinements E. Continuous improvements Darge changes in scope are easily identified. 7t is the Iminor refinementsI that eventually +uild to +e major scope changes that can cause pro+lems. hese small refinements are 4nown in the field as scope creep.
AACSB: Analytic Bloom's: Comprehension Learning Objective: Other Control #ssues Level: Easy
&2. he percent complete inde that loo4s at percent complete in terms of +udgeted amounts is calculated +y which of the following !# E:#AC #. (E-P):#AC C. AC:EAC ". (E-AC):#AC E. (E-P):EAC Percent complete inde PC7# H E:#AC.
Chapter 13 - Progress and Performance Measurement and Evaluation
&. he percent complete inde that loo4s at percent complete in terms of actual amounts is calculated +y which of the following A. E:#AC #. (E-P):#AC C# AC:EAC ". (E-AC):#AC E. (E-P):EAC Percent complete inde PC7C H AC:EAC.
&6. 9hich of the following will calculate the estimated cost to complete the project A. (AC-E):(P:AC) B# (#AC-E):(E:AC) C. (P:AC):(AC-E) ". (E:AC):(#AC-E) E. (#AC-E):(#AC-AC) A method used in large projects where the original +udget is less relia+le. his method uses the actual costs to date plus an efficiency inde (CP7 E:AC) applied to the remaining project wor4.
Chapter 13 - Progress and Performance Measurement and Evaluation
&<. 9hich of the following will calculate the o Complete Performance 7nde A. (AC-E):(P:AC) #. (#AC-E):(E:AC) C. (P:AC):(AC-E) ". (E:AC):(#AC-E) E# (#AC-E):(#AC-AC) CP7 H (#AC-E):(#AC-AC).
3>. 9hich of the following is not true regarding scope creep !# 7t is common late in projects #. 7t is fre'uently unnoticed until time delays or cost overruns are o+served C. 7t wears down team motivation and cohesiveness ". Project suppliers resent fre'uent changes E. All of these are true /cope creep is common early in projectsGespecially in new-product development projects. Customer re'uirements for additional features$ new technology$ poor design assumptions$ etc.$ all manifest pressures for scope changes. 5re'uently these changes are small and go unnoticed until time delays or cost overruns are o+served. /cope creep affects the organi0ation$ project team$ and project suppliers. /cope changes alter the organi0ation8s cash flow re'uirements in the form of fewer or additional resources$ which may also affect other projects. 5re'uent changes eventually wear down team motivation and cohesiveness. Clear team goals are altered$ +ecome less focused$ and cease +eing the focal point for team action. /tarting over again is annoying and demorali0ing to the project team +ecause it disrupts project rhythm and lowers productivity. Project suppliers resent fre'uent changes +ecause they represent higher costs and have the same effect on their team as on the project team.
AACSB: $elective %hin&ing Bloom's: no(ledge Learning Objective: Other Control #ssues Level: )iicult
Fill in the Blank Questions
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Chapter 13 - Progress and Performance Measurement and Evaluation
31. holds people accounta+le$ prevents small pro+lems from mushrooming into large pro+lems$ and 4eeps focus. Control Control holds people accounta+le$ prevents small pro+lems from mushrooming into large pro+lems$ and 4eeps focus.
AACSB: $elective %hin&ing Bloom's: no(ledge Learning Objective: Structure o a !roject "onitoring #normation System Level: Easy
3&. he first step in creating a project control system for measuring and evaluating project performance is to . set up a %aseline plan /ee list on page .
33. A concept of is necessary to get a realistic estimate of performance against a time-phased +udget. earned value Earned value is necessary to provide a realistic estimate of performance against a time-phased +udget. Earned value (E) is defined as the +udgeted cost of the wor4 performed.
Chapter 13 - Progress and Performance Measurement and Evaluation
3. Bsually status reports should ta4e place every wee4s to +e useful and allow for proactive correction. one to four Bsually status reports should ta4e place every one to four wee4s to +e useful and allow for proactive correction.
3. #ecause of their easy-to-understand visual format$ are the most favored$ used$ and understanda+le tool used to report project status. &antt charts =antt and control charts serve well as a means for trac4ing and trending schedule performance. heir easy-to-understand visual formats ma4e them favorite tools for communicating project schedule statusGespecially to top management$ who do not usually have time for details.
32. Control charts are fre'uently used to monitor progress toward $ which mar4 events and as such have 0ero duration. milestones Control charts are also fre'uently used to monitor progress toward milestones$ which mar4 events and as such have 0ero duration. Milestones are significant project events that mar4 major accomplishments.
Chapter 13 - Progress and Performance Measurement and Evaluation
3. he is a tool used to monitor past project schedule performance and current performance and to estimate future schedule trends. pro'ect schedule control chart Control charts are also fre'uently used to monitor progress toward milestones$ which mar4 events and as such have 0ero duration.
36. he is the difference +etween the earned value and the actual costs for the wor4 completed to date. cost variance Cost variance is the difference +etween the earned value and the actual costs for the wor4 completed to date where C H E - AC.
AACSB: Analytic Bloom's: no(ledge Learning Objective: )evelopment o An Earned Value Cost*Schedule System Level: "edium
3<. he is the difference +etween the earned value to date and the +aseline schedule. schedule variance /chedule variance is the difference +etween the earned value and the +aseline line to date where / H E - P.
AACSB: Analytic Bloom's: no(ledge Learning Objective: )evelopment o An Earned Value Cost*Schedule System Level: "edium
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Chapter 13 - Progress and Performance Measurement and Evaluation
>. is simply the percent complete$ times the original +udget. Earned value Earned value for a tas4 is simply the percent complete times its original +udget.
AACSB: Analytic Bloom's: Comprehension Learning Objective: )evelopment o An Earned Value Cost*Schedule System Level: "edium
1. he +est method for assigning costs to the +aseline is to esta+lish fre'uent over the duration of the wor4 pac4age. checkpoints he +est method for assigning costs to the +aseline under this rule is to esta+lish fre'uent chec4points over the duration of the wor4 pac4age and assign completion percentages in dollar terms.
AACSB: Analytic Bloom's: Comprehension Learning Objective: )evelopment o An Earned Value Cost*Schedule System Level: "edium
&. 9hen measuring percent complete in the monitoring phase of the project$ it is common to limit the amount earned to until the wor4 pac4age is 1>> percent complete. () or *) percent 9hen measuring percent complete in the monitoring phase of the project$ it is common to limit the amount earned to 6> or <> percent until the wor4 pac4age is 1>> percent complete.
AACSB: Analytic Bloom's: no(ledge Learning Objective: )evelopment o An Earned Value Cost*Schedule System Level: "edium
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Chapter 13 - Progress and Performance Measurement and Evaluation
3. he is the rule most fre'uently used +y practicing project managers to +oth assign costs to the +aseline and to measure progress using earned value. percent complete 7n practice$ the integration is accomplished +y u sing the same rules in assigning costs to the +aseline as those used to measure progress using earned value. Jou may find several rules in practice$ +ut percent complete is the wor4horse most commonly used.
AACSB: Analytic Bloom's: $elective %hin&ing Learning Objective: )evelopment o An Earned Value Cost*Schedule System Level: "edium
. Cost variance tells us if the costs are more or less than was planned at any point over the life of the project. "ork accomplished Cost variance tells us if the wor4 accomplished costs more o r less than was planned at any point over the life of the project.
AACSB: $elective %hin&ing Bloom's: Comprehension Learning Objective: )evelopment o An Earned Value Cost*Schedule System Level: "edium
. A positive variance in / or C indicates a condition. desira%le A positive variance in / or C indicates a desira+le condition.
AACSB: Analytic Bloom's: Comprehension Learning Objective: )evelopment o An Earned Value Cost*Schedule System Level: "edium
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Chapter 13 - Progress and Performance Measurement and Evaluation
2. he units of measure for / or C is in terms of . dollars /chedule variance measures progress in dollars rather than time units.
AACSB: $elective %hin&ing Bloom's: Comprehension Learning Objective: )evelopment o An Earned Value Cost*Schedule System Level: "edium
. CP7 and /P7 are two types of indees that measure . performance efficienc+ here are two indees of performance efficiency. he first inde measures cost efficiency of the wor4 accomplished to date (CP7). he second inde is a measure of scheduling efficiency to date (/P7).
6. he indees compare the to-date progress to the end of the project. percent complete wo project percent complete indees are used$ depending on your judgment of which one is most representative of your project. he first inde assumes the original +udg et of wor4 complete is the most relia+le information to measure project percent complete. he second inde assumes the actual costs-to-date and epected cost at completion are the most relia+le for measuring project percent complete. hese indees compare the to-date progress to the end of the project.
>. Although it is very difficult to measure$ measuring performance is as important as measuring schedule and cost performance. technical 7t is very difficult to specify how to measure technical pe rformance +ecause it depends on the nature of the project. /uffice it to say$ measuring technical performance must +e done. echnical performance is fre'uently where 'uality control processes are needed and used. Project managers must +e creative in finding ways to control this very important area.
1. he +est defense against scope creep is a . "ell,defined scope statement he +est defense against scope creep is a well-defined scope statement.
AACSB: Analytic Bloom's: Comprehension Learning Objective: Other Control #ssues Level: "edium
True / False Questions
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Chapter 13 - Progress and Performance Measurement and Evaluation
&. he PC7# inde measures the project percent complete in relation to the resources that were +udgeted. T-.E he PC7# inde assumes the original +udget of wor4 complete is the most relia+le information to measure project percent complete. he PC7# inde loo4s at percent complete in terms of +udget amounts.
3. he PC7C inde measures the project percent complete in relation to the resources that have actually +een used so far on the project. T-.E he PC7C inde assumes the actual costs-to-date and epected cost at completion are the most relia+le for measuring project percent complete. hese indees compare the to-date progress to the end of the project. he PC7C inde views percent complete in terms of actual dollars spent to accomplish the wor4 to date and the actual epected dollars for the completed project (EAC).
. Control is one of the most neglected areas of project management. T-.E Control is one of the most neglected areas of project management.
AACSB: $elective %hin&ing Bloom's: no(ledge Learning Objective: Structure o a !roject "onitoring #normation System Level: Easy
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Chapter 13 - Progress and Performance Measurement and Evaluation
. Measuring performance against +udget is simply a case of comparing actual versus +udget. F!E Measuring performance against +udget (e.g.$ money$ units in place$ la+or hours) is more difficult and is not simply a case of comparing actual versus +udget.
. he +aseline is derived from merging information from the wor4 pac4ages with the project networ4. T-.E he +aseline is derived from the cost and duration information found in the wor4 +rea4down structure (9#/) data+ase and time-se'uence data from the networ4 and resource scheduling decisions.
Chapter 13 - Progress and Performance Measurement and Evaluation
6. he networ4 chart is the most favored$ used$ and understanda+le option for reporting project progress to upper management. F!E he =antt chart is the most favored$ used$ and understanda+le. his 4ind of chart is commonly referred to as a trac4ing =antt chart. =antt and control charts serve well as a means for trac4ing and trending schedule performance. heir easy-to-understand visual formats ma4e them favorite tools for communicating project schedule statusGespecially to top management$ who do not usually have time for details.
<. 7n a project control chart$ four o+servations trending in one direction indicate there is a very high pro+a+ility that there is an identifia+le cause. T-.E 5our o+servations trending in one direction indicate there is a very high pro+a+ility that there is an identifia+le cause.
2>. Milestones are significant project events that mar4 major accomplishments. T-.E Milestones are significant project events that mar4 major accomplishments.
Chapter 13 - Progress and Performance Measurement and Evaluation
21. he +est method for assigning costs to the +aseline under this rule is to esta+lish fre'uent chec4points over the duration of the wor4 pac4age and assign completion percentages in dollar terms. T-.E he +est method for assigning costs to the +aseline under this rule is to esta+lish fre'uent chec4points over the duration of the wor4 pac4age and assign completion percentages in dollar terms.
AACSB: $elective %hin&ing Bloom's: Comprehension Learning Objective: )evelopment o An Earned Value Cost*Schedule System Level: "edium
2&. he original earned value cost:schedule system was pioneered +y the B./. "ep artment of "efense in the 1<2>s. T-.E he original earned value cost:schedule system was pioneered +y the B./. "epartment of "efense (";") in the 1<2>s.
AACSB: $elective %hin&ing Bloom's: no(ledge Learning Objective: )evelopment o An Earned Value Cost*Schedule System Level: "edium
23. Earned value is calculated +y ta4ing the percent complete times the original +udget. T-.E Earned value for a tas4 is simply the percent complete times its original +udget. /tated differently$ E is the percent of the original +udget that has +een earned +y actual wor4 completed.
AACSB: $elective %hin&ing Bloom's: Comprehension Learning Objective: )evelopment o An Earned Value Cost*Schedule System Level: Easy
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Chapter 13 - Progress and Performance Measurement and Evaluation
2. #aseline costs typically include la+or$ e'uipment$ materials and direct overhead cost. F!E he +aseline (P) is the sum of the cost accounts$ and each cost account is the sum of the wor4 pac4ages in the cost account. hree direct costs are typically included in +aselinesG la+or$ e'uipment$ and materials.
AACSB: $elective %hin&ing Bloom's: Comprehension Learning Objective: )evelopment o An Earned Value Cost*Schedule System Level: Easy
2. ;verhead costs and profit are typically included in the project +aseline. F!E ;verhead costs and profit are typically added later +y accounting processes.
AACSB: $elective %hin&ing Bloom's: Comprehension Learning Objective: )evelopment o An Earned Value Cost*Schedule System Level: Easy
22. he major reasons for creating a +aseline are to monitor and report progress and to estimate cash flow. T-.E he major reasons for creating a +aseline are to monitor and report progress and to estimate cash flow.
AACSB: $elective %hin&ing Bloom's: Comprehension Learning Objective: )evelopment o An Earned Value Cost*Schedule System Level: "edium
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Chapter 13 - Progress and Performance Measurement and Evaluation
2. 7n calculating schedule variance and cost variance$ a negative variance indicates a desira+le condition$ and a positive variance suggests pro+lems. F!E A positive variance indicates a desira+le condition$ while a negative variance suggests pro+lems or changes that have ta4en place.
AACSB: $elective %hin&ing Bloom's: Comprehension Learning Objective: )evelopment o An Earned Value Cost*Schedule System Level: "edium
26. An undesira+le schedule variance indicates that the project is running +ehind schedule. F!E A negative schedule variance suggests pro+lems or changes that have ta4en place.
AACSB: $elective %hin&ing Bloom's: Comprehension Learning Objective: )evelopment o An Earned Value Cost*Schedule System Level: )iicult
2<. Cost variance tells us the different estimates among vend ors needed to complete the project over the life of the project. F!E Cost variance tells us if the wor4 accomplished costs more o r less than was planned at any point over the life of the project.
AACSB: $elective %hin&ing Bloom's: no(ledge Learning Objective: )evelopment o An Earned Value Cost*Schedule System Level: )iicult
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Chapter 13 - Progress and Performance Measurement and Evaluation
>. A CP7 inde of >.< indicates that the project has spent less money than +udgeted. F!E /ee a+le 13.3 on page 2<.
&. All scope changes that result in increased costs should +e avoided. F!E Although scope changes are usually viewed negatively$ there are situations when scope changes result in positive rewards. /cope changes can represent significant opportunities. 7n 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 mar4et one month early or reduce product cost.
AACSB: $elective %hin&ing Bloom's: no(ledge Learning Objective: Other Control #ssues Level: "edium
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Chapter 13 - Progress and Performance Measurement and Evaluation
3. Scope Creep refers to any significant changes made in the project once it is underway. F!E Darge changes in scope are easily identified. 7t is the Iminor refinementsI that eventually +uild to +e major scope changes that can cause pro+lems. hese small refinements are 4nown in the field as scope creep.
AACSB: $elective %hin&ing Bloom's: no(ledge Learning Objective: Other Control #ssues Level: "edium
. he 4ey to managing scope creep is change management. T-.E he 4ey to managing scope creep is change management.
AACSB: $elective %hin&ing Bloom's: Comprehension Learning Objective: Other Control #ssues Level: Easy
. he +est defense against scope creep is accepting only major changes. F!E he +est defense against scope creep is a well-defined scope statement.
AACSB: $elective %hin&ing Bloom's: Comprehension Learning Objective: Other Control #ssues Level: Easy
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Chapter 13 - Progress and Performance Measurement and Evaluation
2. he rule of using su+jective estimated percent complete in com+ination with hard$ tangi+le monitoring points wor4s well on long-duration activities that can +e +ro4en into short discrete wor4 pac4ages. T-.E his is regarding percent complete with weighted monitoring gates. his more recent rule uses su+jective estimated percent complete in com+ination with hard$ tangi+le monitoring points. his method wor4s well on long-duration activities that can +e +ro4en into short$ discrete wor4 pac4ages of no more than one or two report periods.
. 7dentify the steps in creating a control process that measure and evaluate project performance. 1. /et the +aseline plan$ &. Measure the progress and performance$ 3. Compare plan against actual$ . a4e action as indicated +y the results.
6. 9hat is the difference +etween a +aseline =antt chart and a rac4ing =antt chart he +aseline chart is created during the project planning phase and lays out the logic and timing for major activities. he trac4ing chart shows progress against that plan + y using various graphical techni'ues to display progress.
Chapter 13 - Progress and Performance Measurement and Evaluation
<. 7dentify and +riefly descri+e the three percent complete rules for placing costs in +aselines. 1. >:1>> percent ruleF credit is earned when activity is complete and not +efore$ &. >:> percent ruleF > percent of the value is applied when the activity is started and the other > percent when it is completed$ and 3. Percent complete ruleF fre'uent chec4points are esta+lished with predetermined earned values and credit is given when those chec4points are achieved.
6>. Conducting an earned value analysis re'uires three data elements. 7dentify the acronyms for each and descri+e what they are. 1. PF +udgeted cost of wor4 scheduled$ &. EF +udgeted cost of the wor4 performed$ and 3. ACF actual cost of the wor4 performed.
AACSB: Analytic Bloom's: no(ledge Learning Objective: )evelopment o An Earned Value Cost*Schedule System Level: "edium
61. 7n reviewing the +udget report of a project$ you notice that spending on the project is running a+out ten percent over plan. 7s the project in trou+le 9hy or why not Jou don8t 4now for sure. he project may +e in trou+le however the cost overrun could +e due to the project +eing ahead of schedule. Jou would need to have an earned value analysis run +efore you could tell.
AACSB: Analytic Bloom's: Comprehension Learning Objective: )evelopment o An Earned Value Cost*Schedule System Level: "edium
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Chapter 13 - Progress and Performance Measurement and Evaluation
6&. 7nterpret the results of calculating the performance indees +ased on a range of possi+le calculated values. 7f the inde is less than one then the cost is under target or the project is ahead of schedule. 7f the inde is e'ual to one then either the cost or the schedule are on target. 7f the inde is greater than one the project is overspending or +ehind schedule.
63. 7dentify the four indees used in project management control and identify the formulas for calculating the indees. 1) Cost Performance 7nde (CP7) H E:AC$ &) /chedule Performance 7nde (/P7) H E:P$ 3) Percent Complete 7nde (PC7#) H E:#AC$ and ) Percent Complete 7nde (PC7C) H AC:EAC
6. 7dentify and +riefly discuss the two methods to revise estimates of future project costs. 1. %evision +y EpertsF changes are made +y eperts +ecause new information indicates that the original estimates were not accurate$ usually used on small projects$ and &. %evision +ased on C7F changes are made +y using Cost Productivity 7nde as a +asis for reforecasting the project costs EC. (#AC-E):(E:AC).
Chapter 13 - Progress and Performance Measurement and Evaluation
6. 9hat are 9eighted Monitoring =ates and why would you need them 9eighted Monitoring =ates wor4 well with long duration activities that can +e +ro4en into short discrete wor4 pac4ages. 5or eample$ esta+lishing monitoring gates at 3>K$ >K$ and 1>>K would serve as a chec4 on overly optimistic estimates of wor4 progress.
62. 9hat is scope creep and why should a project manager +e concerned a+out it /cope creep is small refinements that eventually +uild into a major change in the scope of the project. A project manager should +e concerned in that the project was put together and the resources assem+led to achieve specific o+jectives and while the motives can +e well intended the result is that sacrifices may +e re'uired to the other two 4ey areas of schedule and:or costs.
AACSB: Analytic Bloom's: Comprehension Learning Objective: Other Control #ssues Level: "edium
6. ypically$ project progress reports are designed and communicated in written or oral form. 7dentify the common topic format for such progress reports. 1. progress since last report$ &. current status of project$ 3. cumulative trends$ . pro+lems and issues since last report$ and . corrective action planned.
AACSB: Analytic Bloom's: no(ledge Learning Objective: Structure o a !roject "onitoring #normation System Level: )iicult
