Posted on

# PROJ 592 Proj Cost and Schedule Control Week 8 Final Exam Set 1_set 2 and set 3 A+ Answer

PROJ 592 Proj Cost and Schedule Control Week 8 Final Exam Complete A+ Set 1_set 2 and set 3 Answer

PROJ 592 Proj Cost and Schedule Control Week 8 Final Exam Complete A+ Set 1_set 2 and set 3 Answer

PROJ 592 Proj Cost and Schedule Control Week 8 Final Exam Complete A+ Set 1_set 2 and set 3 Answer

PROJ 592 Proj Cost and Schedule Control Week 8 Final Exam Complete A+ Set 1_set 2 and set 3 Answer

Proj 592 Week 8 Final Exam Answer

SET 1

Page: | 1 2 3 |
Question 1. | Question : | (TCO B) Estimating Procedures
(a) You are the project manager for a new high-rise office building. You are working on estimating the exterior landscaping for the new development. The landscaping requires the use of a special landscape stone. Based on recent experience, the most likely price for the material is \$120.00/ton. However, the price for this stone is volatile, and the price fluctuates over time based on market conditions and material availability. The most optimistic price estimate is \$100.00/ton, and the most pessimistic estimate is \$200.00/ton. What is the expected price of the material?
(b) In addition to price fluctuations, you are also uncertain of how much of the material will be required for the project. Scope changes and site conditions will affect the amount of material actually needed. The most likely amount required is 36 tons. However, as little as 32 tons or as much as 44 tons might be required.What is the expected amount of the material needed for the project? Round to two decimal places.
(c) Using the estimates from (a) & (b) what is the expected cost for the material over the life of the project using the COMPLEX method?

Question 2. | Question : | (TCO B) Contingency Allowance:
You are a project manager for the development of Motorola’s new 4G, HD, Touch Screen Cell Phone which is supposed to take the cell phone industry by storm. Listed below are the initial cost estimates for the materials and labor for one of the phones:
ITEM | COST ESTIMATE | TYPE OF ESTIMATE |
Case | \$15.00 | Order of Magnitude |
Handset | \$12.00 | Definitive |
Labor | \$2.00 | Definitive |
Speaker | \$2.50 | Budget |
Mouthpiece | \$5.50 | Budget |
Antenna | \$1.70 | Definitive |
Keypad | \$3.00 | Order of Magnitude |
Circuit boards (handset) | \$6.50 | Budget |
Circuit boards (base unit) | \$8.50 | Definitive |
Battery | \$1.20 | Order of Magnitude |
Charger | \$16.00 | Order of Magnitude |
Total cost | \$73.90 | NA |
The estimating department currently defines estimate accuracy as follows:
Order of Magnitude | -25%, +75% |
Budget | -10%, +25% |
Definitive | -5%, +10% |

(a) What contingency cost budget do you recommend for the product?
(b) The target retail price for the new telephone is \$165.00 per unit. The markup demanded by retailers is 50%. Based on cost factors, write a brief rationale for acceptance or rejection of the project, including any recommendations you have regarding the cost estimates.

Page: | 1 2 3 |

Question 3. | Question : | (TCO C) Work Breakdown Structure WBS
Eurocash has decided to develop a mutual fund comprised almost entirely of East European companies with a high growth potential. The process of developing a new mutual fund begins with concept development, which includes establishing a clear definition of the project’s objectives that is agreed upon by senior management and developing a marketing strategy.
* A business analysis is then performed that includes assessments of market feasibility, internal feasibility (budgetary resource requirements), and regulatory feasibility. * If the proposed fund passes the business analysis, the fund design is developed. * The design process consists of product design, service design, internal review and authorization, and SEC registration (assuming a U.S. market). * As the design process nears completion, generally recognized as a positive preliminary review by the SEC, employee training is performed. * After completion of the employee training and final regulatory approval, the product is launched, and post-launch reviews are conducted at predetermined intervals.

Prepare a work breakdown structure (WBS) for this project with activities corresponding to a two level task and sub-task hierarchy. Provide columns showing the WBS code and activities. Number and indent the WBS codes so that the level of each activity is clearly identified.

Question 4. | Question : | (TCO A) Budgeting processes and techniques
A company builds custom yachts for the high-end boating market. They develop and build these custom designs as a single individualized unit. The orders are generated by the marketing and sales department with help from the owners, who participate in the management of the company. Each new order is assigned to a project team which starts by making an estimate to the customer before a contract is signed. The project teams have a great deal of experience in these projects. As would be expected, the owners are hands-on and have opinions on the estimates. The marketing folks also provide suggestions on what the customer is willing to pay.
What are some processes and techniques that you would suggest to make the budgeting process work well? Start with general but also provide some specifics as relate to creating detailed project budgets. Be sure to justify why you think your recommendations will work.

Page: | 1 2 3 |
Question 1. | Question : | (TCO C) Schedule Crashing
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 13 days at minimum cost? State the number of days you will crash each activity.
(c) What is the additional cost to crash the project?
Critical path = B-C-D = 14
Activity | Normal time | Normal total cost | Crash time | Crash total cost |
A | 5 | 300 | 3 | 380 |
B | 3 | 250 | 1 | 330 |
C | 6 | 400 | 4 | 700 |
D | 5 | 150 | 3 | 250 |

Question 2. | Question : | (TCO E) Responsibility Assignment Matrix
Projects often cross many functional boundaries with team members reporting to different functional managers. This cross functional aspect can create problems with roles and responsibilities. You decide to use a Responsibility Assignment Matrix (RAM) to help with this situation. Your manager is wondering why you are spending your time on this tool when you already have resources assigned to tasks in your schedule.
(a) Why is the RAM such an effective tool for Project Managers?
(b) What are some of the typical responsibilities assigned on a RAM? |

Question 3. | Question : | (TCO E) Resource Allocation/Leveling
The following data were obtained from a project to expand a school: Activity | Duration | Predecessors | Resources / cost |
A | 2 Weeks | — | 2 Excavators/\$800 day each |
B | 3 Weeks | — | 2 Dump Trucks/\$600 day each |
C | 2 Weeks | B | 2 Concrete Mixers/\$250 day each |
D | 3 Weeks | A, C | 2 Cranes/\$2,000 day each |
E | 2 Weeks | B | 1 High-lift/\$500 day each |
F | 1 Weeks | B | 2 Excavators/\$800 day each |
G | 3 Weeks | F | 2 Cranes/\$2,000 day each |
The contractor has access to the listed quantity of machines of each type available at the listed cost ‘each’. The operations cannot be split. Additional equipment can be rented at a 50% cost premium if needed.
(a) Identify any resource conflicts in the above project. State the activities involved, the time frame of the conflict(s), the resources in conflict and the quantity of resource involved.
(b) What is the least cost method of resolving the conflict(s), assuming the project duration must not be extended? What additional cost, if any, will be incurred?

Page: | 1 2 3 |
Question 1. | Question : | (TCO G) Estimate At Completion forecast (EAC)
A project has been estimated to take eight weeks and cost \$65,000. The critical path is A – D. Cost and earned value data are provided below:
| | EV | PV | | | AC | | | | Budget | BCWP | – BCWS | SV | SPI | – ACWP | CV | CPI |
A | \$8,500 | \$8,500 | \$8,500 | \$ – | 1.00 | \$7,500 | \$1,000 | 1.13 |
B | \$15,000 | \$15,000 | \$15,000 | \$ – | 1.00 | \$13,000 | \$2,000 | 1.15 |
C | \$6,800 | \$2,530 | \$2,700 | (\$170) | 0.94 | \$4,000 | (\$1,470) | 0.63 |
D | \$18,000 | \$900 | \$3,000 | (\$2,100) | 0.30 | \$1,200 | (\$300) | 0.75 |
E | \$16,000 | \$0 | \$0 | \$ – | | \$0 | \$ – | |
Project: | \$64,300 | 26,930 | 29,200 | (\$2,270) | 0.92 | \$25,700 | \$730 | 1.05 |
(i) Calculate the Estimate At Completion (EAC) considering future performance will be back on schedule and budget.
(ii) Calculate EAC considering that the project will continue to perform as it has to date.
(iii) Using either of these two numbers discuss the status of the project and if the project manager needs to take corrective actions. Justify your comments. |

Question 2. | Question : | (TCO F) Earned Value
The following data were obtained from a project to design a new software package: Activity | Duration | Predecessors | Budgeted Cost |
A | 3 Days | — | \$8,320 |
B | 6 Days | — | \$11,740 |
C | 4 Days | A | \$11,550 |

D | 2 Days | C, B | \$7,850 |
E | 3 Days | A | \$10,750 |
F | 2 Days | D, E | \$8,600 |
At the end of day 4, the status of the project is as follows: Activity | % Complete | Actual Cost |
A | 100% | \$7,200 |
B | 80% | \$10,370 |
C | 25% | \$8,250 |
D | 0% | \$0 |
E | 80% | \$8,560 |
F | 0% | \$0 |
(a) Calculate the Cost and Schedule Variances and Indexes (CV, SV, CPI, SPI) for tasks A, B, C, D, and E.
(b) Write a brief analysis of the status of the project at this time, including task level, project level, and critical path. |

SET 2

Final Exam Page 1
1. (TCO B) Estimating Procedures
(a) You are the project manager for a new high rise office building. You are working on estimating the exterior landscaping for the new development. The landscaping requires the use of a special landscape stone. Based on recent experience the most likely price for the material is \$120.00/ton. However, the price for this stone is volatile, and the price fluctuates over time based on market conditions and material availability. The most optimistic price estimate is \$80.00/ton, and the most pessimistic estimate is \$180.00/ton. (Note there are 3 data points in for this estimate.)What is the expected price of the material?
(b) In addition to price fluctuations, you are also uncertain of how much of the material will be required for the project. Scope changes and site conditions will affect the amount of material actually needed. The most likely amount required is 36 tons. However, as little as 28 tons, and as much as 56 tons might be required.What is the expected amount of the material needed for the project?
(c) Using the estimates from (a) & (b), what is the expected cost for the material over the life of the project using the COMPLEX method?(Points : 30)

2. (TCO B) Contingency Allowance:
You are a project manager for the development of Motorola’s new 4G, HD, Touch Screen Cell Phone which is supposed to take the cell phone industry by storm. Listed below are the initial cost estimates for the materials and labor for one of the phones:
ITEM | COST
ESTIMATE | TYPE OF ESTIMATE |
Case | \$10.00 | Order of Magnitude |
Handset | \$12.00 | Definitive |
Labor | \$2.00 | Definitive |
Speaker | \$2.50 | Budget |
Mouthpiece | \$5.50 | Budget |
Antenna | \$1.70 | Definitive |
Keypad | \$3.00 | Order of Magnitude |
Circuit boards (handset) | \$6.50 | Budget |
Circuit boards (base unit) | \$8.50 | Definitive |
Battery | \$1.20 | Order of Magnitude |
Charger | \$16.00 | Order of Magnitude |
Total | \$68.90 | NA |
The estimating department currently defines estimate accuracy as follows:
Order of Magnitude | -25%, +75% |
Budget | -10%, +25% |
Definitive | -5%, +10% |
(a) What contingency cost budget do you recommend for the product?
(b) The target retail price for the new telephone is \$165.00 per unit. The markup demanded by retailers is 75%. Based on cost factors, write a brief rationale for acceptance or rejection of the project, including any recommendations you have regarding the cost estimates. (Points : 30)

3. (TCO C) Work Breakdown Structure WBS
Eurocash has decided to develop a mutual fund comprised almost entirely of East European companies with a high growth potential. The process of developing a new mutual fund begins with concept development, which includes establishing a clear definition of the project’s objectives that is agreed upon by senior management and developing a marketing strategy.
* A business analysis is then performed that includes assessments of market feasibility, internal feasibility (budgetary resource requirements), and regulatory feasibility. * If the proposed fund passes the business analysis, the fund design is developed. * The design process consists of product design, service design, internal review and authorization, and SEC registration (assuming a U.S. market). * As the design process nears completion, generally recognized as a positive preliminary review by the SEC, employee training is performed. * After completion of the employee training and final regulatory approval, the product is launched, and post-launch reviews are conducted at predetermined intervals.
Prepare a work breakdown structure (WBS) for this project with activities corresponding to a two level task and sub-task hierarchy. Provide columns showing the WBS code and activities. Number and indent the WBS codes so that the level of each activity is clearly identified. (Points : 30)

4. (TCO A) Budgeting processes and techniques
A company builds custom yachts for the high-end boating market. They develop and build these custom designs as a single individualized unit. The orders are generated by the marketing and sales department with help from the owners, who participate in the management of the company. Each new order is assigned to a project team which starts by making an estimate to the customer before a contract is signed. The project teams have a great deal of experience in these projects.
As would be expected, the owners are hands-on and have opinions on the estimates. The marketing folks also provide suggestions on what the customer is willing to pay.
What are some processes and techniques that you would suggest to make the budgeting process work well? Start with general but also provide some specifics as relate to creating detailed project budgets. Be sure to justify why you think your recommendations will work. (Points : 30)

Page: 1 2 3 |
1. (TCO C) Schedule Crashing
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 13 days at minimum cost? State the number of days you will crash each activity.
(c) What is the additional cost to crash the project?
Critical path = B-C-D = 14
Activity | Normal time | Normal total cost | Crash time | Crash total cost |
A | 5 | 300 | 3 | 380 |
B | 3 | 250 | 1 | 330 |
C | 6 | 400 | 4 | 700 |
D | 5 | 150 | 3 | 250 |
(Points : 30)

2. (TCO E) Responsibility Allocation Matrix
Projects often cross many functional boundaries with team members reporting to different functional managers. This cross functional aspect can create problems with roles and responsibilities. You decide to use a Responsibility Assignment Matrix (RAM) to help with this situation. Your manager is wondering why you are spending your time on this tool when you already have resources assigned to tasks in your schedule.
(a) Why is the RAM such an effective tool for Project Managers?
(b) What are some of the typical responsibilities assigned on a RAM? (Points : 30)

3. (TCO E) Resource Allocation/Leveling
The following data were obtained from a project to design a new software package: Activity | Duration | Predecessors | Personnel / Cost |
A | 3 days | — | 1 Systems Analyst/\$260 day |
B | 6 days | — | 3 Programmers/\$200 day each |
C | 4 days | A | 3 Programmers/\$200 day each |
D | 2 days | C | 2 Hardware specialists/\$230 day each |
E | 3 days | A | 1 Systems Analyst/\$260 day |
F | 2 days | D, E | 1 Test Engineer/\$300 day |
Personnel Available | Quantity |
Systems Analysts | 1 |
Programmers | 3 |
Hardware Specialists | 2 |
Test Engineers | 2 |
The software manufacturer has only the above personnel available for the project. Additional personnel can be hired from an agency at an 80% cost premium if needed.
(a) Identify any resource conflicts in the above project. State the activities involved, the time frame of the conflict(s), the personnel in conflict, and the number of people involved.
(b) Note that operations can be split if required: what is the least cost method of resolving the conflict(s), assuming the project duration must not be extended? What additional cost, if any, will be incurred? (Points : 30)

Page: 1 2 3
Page 3
1. (TCO G) Estimate At Completion forecast (EAC)
A project has been estimated to take eight weeks and cost \$65,000. The critical path is A – D. Cost and earned value data are provided below: | | EV | PV | | | AC | | |
| Budget | BCWP | – BCWS | SV | SPI | – ACWP | CV | CPI |
A | \$8,500 | \$8,500 | \$8,500 | \$ – | 1.00 | \$7,000 | \$1,500 | 1.21 |
B | \$15,000 | \$15,000 | \$15,000 | \$ – | 1.00 | \$13,000 | \$2,000 | 1.15 |
C | \$6,800 | \$2,530 | \$2,700 | (\$170) | 0.94 | \$4,000 | (\$1,470) | 0.63 |
D | \$18,000 | \$900 | \$3,000 | (\$2,100) | 0.30 | \$1,200 | (\$300) | 0.75 |
E | \$16,000 | \$0 | \$0 | \$ – | | \$0 | \$ – | |
Project: | \$65,000 | 26,930 | 29,200 | (\$2,270) | 0.92 | \$25,200 | \$ 730 | 1.07 |
(i) Calculate the Estimate At Completion (EAC) considering future performance will be back on schedule and budget.
(ii) Calculate EAC considering that the project will continue to perform as it has to date.
(iii) Using either of these two numbers discuss the status of the project and if the project manager needs to take corrective actions. Justify your comments.(Points : 30)

2. (TCO D) PMIS and cost accounting
An Earned Value system can be a very effective way to monitor projects. However, Earned Value Analysis requires a Project Cost Accounting System (PCAS).
(a) What are some of the benefits of PCAS?
(b) What are some of the software solutions for establishing a PCAS? (Points : 30)

3. (TCO F) Earned Value
The following data were obtained from a project to design a new software package: Activity | Duration | Predecessors | Budgeted Cost |
A | 3 Days | — | \$8,320 |
B | 6 Days | — | \$11,740 |
C | 4 Days | A | \$11,550 |
D | 2 Days | C, B | \$7,850 |
E | 3 Days | A | \$10,750 |
F | 2 Days | D, E | \$8,600 |
At the end of day 5, the status of the project is as follows: Activity | % Complete | Actual Cost |
A | 100% | \$7,200 |
B | 50% | \$6,370 |
C | 25% | \$8,250 |
D | 0% | \$0 |
E | 80% | \$8,560 |
F | 0% | \$0 |
(a) Calculate the Cost and Schedule Variances and Indexes (CV, SV, CPI, SPI) for tasks A, B, C, D, and E.
(b) Write a brief analysis of the status of the project at this time, including task level, project level, and critical path.(Points : 30)

Set 3

Week 8 : Final Exam – Final Exam

Page 1

Question 1. 1. (TCO A) Work Breakdown Structure (WBS)

A consumer electronics firm is planning an expansion into Milwaukee. Generally, the firm prefers to remodel large existing tenant spaces to suit its needs. After a site is selected from several alternatives, the corporate architect develops plans by reviewing the suitability of the existing structure and utilities. A modification and demolition plan is then developed. Interior finish plans are then developed from corporate standards and adjusted to each site.

• Building permits are handled by the general contractor (GC). The firm uses the GC for all of its construction in a region. The GC hires local subcontractors and provides on-site construction supervision.
• As construction begins, the firm also begins to assemble a new management team from existing management staff, making an attempt to use only staff that has an interest in relocating. Sales staff is hired locally.
• When construction is approximately 6 weeks from completion, inventory is ordered.

Prepare a WBS for this project with activities corresponding to a two-level task and subtask hierarchy. Provide columns showing the WBS code and activities. Number and indent the WBS codes so that the level of each activity is clearly identified. (Points : 25)

Question 2. 2. (TCO E) Using the network below and the additional information provided, find answers to the following questions.

(a) What is the crash cost per day per activity?
(b) Which activities should be crashed to meet a project deadline of 13 days at minimum cost? State the number of days you will crash each activity.
(c) What is the additional cost to crash the project?

Critical path = B-C-D = 15

Activity Normal time Normal total cost Crash time Crash total cost
A 4 \$300 3 \$360
B 3 \$250 1 \$330
C 7 \$400 4 \$550
D 5 \$150 3 \$250
(Points : 25)

Question 3. 3. (TCO E) There are many stakeholders and participants in projects, and they often get confused as to who is doing what. You decide to use an RACI to help with this situation. Your manager is wondering why you are spending your time on this tool when you already have resources assigned to tasks in your schedule.

(a) What do you tell management to justify your time creating the RACI?
(b) What are the best ways to create the RACI? (Points : 25)

Page 2

Question 1. 1. (TCO F) Earned Value

The following data were obtained from a project to design a new software package.
Activity Duration Predecessors Budgeted Cost
A 3 days — \$8,320
B 6 days — \$11,740
C 4 days A \$11,550
D 2 days C and B \$7,850
E 3 days A \$10,750
F 2 days D and E \$8,600

At the end of Day 5, the status of the project is as follows.
Activity % Complete Actual Cost
A 100% \$7,200
B 50% \$5,370
C 25% \$8,250
D 0% \$0
E 70% \$8,560
F 0% \$0

(a) Calculate the cost and schedule variances and indexes (CV, SV, CPI, SPI) for Tasks A, B, C, D, and E.

(b) Write a brief analysis of the status of the project at this time, including task level, project level, and critical path. (Points : 25)

Question 2. 2. (TCO C)
(a) You are the project manager for a new high-rise office building. You are working on estimating the exterior landscaping for the new development. The landscaping requires the use of a special landscape stone. Based on recent experience, the most likely price for the material is \$120.00/ton. However, the price for this stone is volatile, and the price fluctuates over time based on market conditions and material availability. The most optimistic price estimate is \$80.00/ton, and the most pessimistic estimate is \$180.00/ton.
What is the expected price of the material? Round to two decimal places.

(b) In addition to price fluctuations, you are also uncertain of how much of the material will be required for the project. Scope changes and site conditions will affect the amount of material actually needed. The most likely amount required is 36 tons. However, as little as 28 tons or as much as 56 tons might be required.
What is the expected amount of the material needed for the project?

(c) Using the estimates from (a) and (b), what is the expected cost for the material over the life of the project? (Points : 25)

Question 3. 3. (TCO E) Resource Allocation and Leveling

The following data were obtained from an in-house MIS project.
Activity Duration Predecessors Personnel/Cost
A 3 days — One systems snalyst/\$260 day
B 6 days — Two programmers/\$200 day each
C 3 days A Two programmers/\$200 day each
D 3 days B Two hardware specialists/\$280 day each
E 3 days B One hardware specialist/\$280 day
F 2 days C and D One test engineer/\$300 day

Personnel Available Quantity
Systems analysts 1
Programmers 4
Hardware specialists 2
Test engineers 1

The software manufacturer has only the above personnel available for the project. Additional personnel can be hired from an agency at a 90% cost premium if needed.

(a) Identify any resource conflicts in the above project. State the activities involved, the time frame of the conflict(s), the personnel in conflict, and the number of people involved.

(b) Note that operations cannot be split. What is the least-cost method of resolving the conflict(s), assuming the project duration must not be extended? What additional cost, if any, will be incurred? (Points : 25)

Page 3

Question 1. 1. (TCO D) Change control is critical to a successful project. Describe the roles and responsibilities of two key components of a good change control process: the change control board and the project manager. (Points : 25)

Question 2. 2. (TCO G) Your project is progressing well in your estimation. Your team has collected the following data. From these data, calculate the project’s ETC. Assume spending will continue at the same rate.
Activity A is 60% complete at a cost so far of \$100,000. It was estimated to cost \$200,000 when finished. It is at the end of Week 3 of 5. Activity B is 85% complete at a cost so far of \$50,000. It was estimated to cost \$80,000 when finished. It is at the end of Week 4 of 5. Activity C is complete at a cost so far of \$110,000. It was estimated to cost \$100,000 when finished. (Points : 25)

Question 3. 3. (TCO B) You are the 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 27 weeks to complete. You are in the planning stage of the project. You need to reduce the schedule for this project by 8 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 6 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 projects above, choose an appropriate schedule compression technique. Explain your choice. (Points : 25)

For getting the instant digital download answer, Please click on the “PURCHASE” link below to get “PROJ 592 Proj Cost and Schedule Control Week 8 Final Exam Complete A+ Set 1_set 2 and set 3 Answer”.

For instant digital download of the above solution or tutorial, please click on the below link and make an instant purchase. You will be guided to the PAYPAL Standard payment page wherein you can pay and you will receive an email immediately with a download link. Please note that in case of technical glitch, the solutions will be emailed to you within 24 hours.