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PROJ 592 Proj Cost and Schedule Control Week 6 Quiz – Set 1 and 2

Pm 592 Week 6 Quiz

  1. | Question : | (TCO B) Crashing Problem

 

Using the network below and the additional information provided, find:

(a) The crash cost per day per activity?

(b) Which activities should be crashed to meet a project deadline of 12 days at minimum cost?

(c) What is the extra cost to crash the project?

  Activity | Normal Time | Crash Time | Normal Cost | Crash Cost |

A | 5 | 3 | $300 | $600 |

B | 3 | 2 | $250 | $450 |

C | 6 | 4 | $400 | $500 |

D | 5 | 3 | $150 | $400 |

 

 

 

  | Student Answer: |   | a) Crash cost of A = (600-300)/(5-3) = $150; Crash Cost of B = (450-250)/(3-2) = $200; Crash Cost of C = (500-400)/(6-4) = $50; Crash Cost of D = (400-150)/(5-3) = $125 b) As per the above schedule, the activities on the critical path are B, C, D with a duration of 14 days, and hence 2 days need to be crashed. The lowest crash cost is for Activity C, and hence activity C should be crashed to meet project deadline of 12 days c) The cost of crashing C for 2 days is $100 |

  | Instructor Explanation: | (a) Crash cost per day: Activity | Normal Time | Crash Time | Normal Cost | Crash Cost | Crash Cost/day |

A | 5 | 3 | $300 | $600 | $150 |

B | 3 | 2 | $250 | $450 | $200 |

C | 6 | 4 | $400 | $500 | $50 |

D | 5 | 3 | $150 | $400 | $125 |

  | $1,100 |   |

 Critical path:  B – C – D   14 days

 

(b) To reduce the schedule 2 days crash task C for two days.

(c) Cost to crash the project:

           C                   $50

           C                   $50

    Total Extra cost   $100

 

 

  1. | Question : | (TCO F) We have discussed at length the Earned Value Management process. I am sure all of you have used the traditional process of assessing projects where we compare actual dollars spent to the amount we had planned to spend. This was quick and easy, but it has its shortcomings, and the Earned Value Management process is said to be better.

 

(a) Why is this traditional approach different from using earned value when assessing project performance?

(b) Describe the EVM process used to determine how far our project is ahead of or behind schedule. |

|

  | Student Answer: |   | a) Using the traditional method of assessing project performance, we would be able to see if we have been over or under budget and timelines, and we would only have this information once the project has been completed. However, with the traditional approach would not be able to effectively track project performance at a task level and at any given point in time. Due to this, decisions that may need to be taken during the project or identifying issues or project health during project execution is more difficult using traditional approaches than using the EVM process. b) The EVM process is based on tracking the schedule and cost performance at a task level on an on-going basis, that will help determine project task level and overall status with effective indicators that would help make project related decisions. In the EVM process, a baseline plan is made for project costs and timelines and then these are tracked against actual costs and work completion to find out the cost variances and schedule variances and cost and schedule indexes, that will help determine how the project is performing on these parameters. If the variances are in negative or if the indexes are less than 1, it means that the task or the project is behind on cost and schedule and work needs to be done to bring it back, while indexes greater than 1 or positive variances show that the project is doing ahead and well on cost and schedule. |

Set 1

1. Question : (TCO B) Crashing Problem

Using the network below and the additional information provided, find:
(a) The crash cost per day per activity?
(b) Which activities should be crashed to meet a project deadline of 12 days at minimum cost?
(c) What is the extra cost to crash the project?
Activity | Normal Time | Crash Time | Normal Cost | Crash Cost |
A | 5 | 3 | $300 | $600 |
B | 3 | 2 | $250 | $450 |
C | 6 | 4 | $400 | $500 |
D | 5 | 3 | $150 | $400 |

2. Question : (TCO F) We have discussed at length the Earned Value Management process. I am sure all of you have used the traditional process of assessing projects where we compare actual dollars spent to the amount we had planned to spend. This was quick and easy, but it has its shortcomings, and the Earned Value Management process is said to be better.

(a) Why is this traditional approach different from using earned value when assessing project performance?
(b) Describe the EVM process used to determine how far our project is ahead of or behind schedule.

3. Question : (TCO E) The following information is extracted from a project to develop a state of the art alternative power energy storage device:
Activity Duration Predecessors Resources
A 4 days — 1 Research Engineer
B 3 days A 1 Marketing Specialist
C 5 days A 1 Design Engineer
D 3 days A 1 Design Engineer
E 3 days B 1 Prototype Builder
F 2 days D 1 Test Engineer
The Owner has stipulated that in order to provide continuity throughout the project, the same individual must handle all activities under his or her discipline. Activities on this project cannot be split.

(a) Identify any resource conflicts in the above project. State the activities involved, the time frame of the conflict(s), which resources(s) are involved, and the quantity required.
(b) Given the owner’s stipulation regarding project continuity, and the need to minimize project duration, how can this conflict be resolved? What will be the effect on the project duration?

4. Question : (TCO F) The following data were obtained from an Information Systems project to upgrade and expand a Local Area Network:
Activity Duration Predecessors Task Budget
A 3 Days — $4,920
B 6 Days — $7,680
C 3 Days A $15,140
D 2 Days B $4,980
E 3 Days B $5,630
F 2 Days C, D $2,270

At the end of Day 7, the status of the project is as follows:
Activity % Complete Actual Cost
A 100% $4,200
B 100% $8,740
C 100% $18,250
D 55% $2,600
E 10% $560
F 0% $0

(a) Calculate the Cost and Schedule Variances and Indexes for tasks A, B, C, D, and E.
(b) As project manager, write a brief summary of the status of the project at this time

5. Question : (TCO E) We have all been associated with projects with resource problems. As a project manager, you will be responsible for resolving these problems. Remember, resources are human and otherwise. If you can name it, it may be a resource.

(a) When there are not enough resources available to fill all the needs in the project plan, what are some specific remedies a project manager can take to complete the project. How does each of these affect the project plan and performance?
(b) Describe 5 of the many benefits to resource leveling.

Set 2

Week 6 : Time and Cost Monitoring and Control Part 2 – Quiz

Question 1. 1. (TCO B) Using the network below and the additional information provided, find
(a) the crash cost per day per activity;
(b) which activities should be crashed to meet a project deadline of 12 days at minimum cost; and
(c) what the extra cost is to crash the project.
Activity Normal Time Crash Time Normal Cost Crash Cost
A 5 3 $300 $350
B 3 2 $250 $325
C 6 4 $400 $700
D 5 3 $150 $200

(Points : 20)

Question 2. 2. (TCO E) The following information is extracted from a project to develop a state-of-the-art alternative power energy storage device.
Activity Duration Predecessors Resources
A 4 days — 1 research engineer
B 3 days A 1 marketing specialist
C 5 days A 1 design engineer
D 3 days A 1 marketing specialist
E 3 days B 1 prototype builder
F 2 days D 1 test engineer

The owner has stipulated that in order to provide continuity throughout the project, the same individual must handle all activities under his or her discipline. Activities on this project cannot be split.

(a) Identify any resource conflicts in the above project. State the activities involved, the days that have conflict(s), which resources are involved, and the quantity required.
(b) Given the owner’s stipulation regarding project continuity and the need to minimize project duration, how can this conflict be resolved? What will be the effect on the project duration? (Points : 20)

Question 3. 3. (TCO F) The following data were obtained from an information systems project to upgrade and expand a local area network.
Activity Duration Predecessors Task Budget
A 3 days — $4,920
B 6 days — $7,680
C 3 days A $15,140
D 2 days B $3,980
E 3 days B $5,630
F 2 days C and D $2,270

At the end of Day 7, the status of the project is as follows.
Activity % Complete Actual Cost
A 100% $4,200
B 100% $8,740
C 100% $18,250
D 75% $2,600
E 10% $560
F 0% $0

(a) Calculate the cost and schedule variances and indexes for Tasks A, B, C, D, and E.
(b) As project manager, write a brief summary of the status of the project at this time. (Points : 20)

Question 4. 4. (TCO B) You are project manager for three different projects.

Project A: This project is behind schedule by 12 weeks. It was to have been completed in 3 months. The sponsor has additional funds to help complete the project on time if needed but does not want to increase risk to the project.
Project B: This project is scheduled to take 28 weeks to complete. You are in the planning stage of the project. You need to reduce the schedule for this project by 9 weeks. This project has a number of predecessors that were created by the project team’s preference. The sponsor insists on having all the work done on time without unduly increasing risk or costs to the project.
Project C: This project is in the execution stage of the project. It is behind schedule by 8 weeks; it was scheduled to be completed in 10 weeks. The sponsor is desperate to accomplish something on this project. The budget is limited to the original amount, and all soft predecessors have already been removed.

For each of the project above, choose an appropriate schedule compression technique. Explain your choice. (Points : 20)

Question 5. 5. (TCO F) Given the following information, calculate the CV, SV, CPI, and SPI for this project. Also provide recommendations to improve the project’s performance if needed.
Activity A: This activity is complete. It was completed in 6 weeks; it was supposed to be completed in 5 weeks. The original budget for this activity was $400,000; in the end, it cost $450,000.

Activity B: This activity is 50% complete. Its original budget was $100,000. The costs to date are $55,000. The original project plan had this activity scheduled for 5 weeks; currently it is entering its third week.

Activity C: This activity is 75% complete. Its costs so far are $100,000. It is entering Week 4 of 5. It was planned to cost $100,000 when completed.

Activity D: This activity is not started yet; it will start in 2 weeks. It is planned to cost $400,000. Its costs to date are $0. (Points : 20)

 

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