CAPM Cost & Schedule Management Flashcards

In Earned Value Management, what does the Schedule Performance Index (SPI) indicate when it is greater than 1.0?

Answer: The project is ahead of schedule

An SPI greater than 1.0 means the project is ahead of schedule, as more earned value has been generated than the planned value for that period.

Which cost estimate is typically the most accurate and is prepared from detailed engineering documents and specifications?

Answer: Definitive (bottom-up) estimate

A definitive or bottom-up estimate is the most accurate type, built from detailed WBS components and engineering data, typically with a ±5–10% accuracy range.

What is the critical path in a project schedule network?

Answer: The longest path through the network that determines the project duration

The critical path is the longest sequence of dependent activities through the network diagram, and it determines the minimum possible project duration.

A project has a Cost Performance Index (CPI) of 0.8. What does this indicate?

Answer: For every $1 spent, only $0.80 of value is being produced

A CPI of 0.8 means the project is over budget—for every dollar spent, only 80 cents worth of planned work has been accomplished.

What is 'float' (also called slack) in project scheduling?

Answer: The amount of time an activity can be delayed without delaying the project end date

Float (or slack) is the amount of time an activity can be delayed without delaying the project finish date or a successor activity's early start.

Which scheduling technique involves compressing the schedule by adding resources to critical path activities to finish them faster?

Answer: Crashing

Crashing adds resources (people, equipment, overtime) to critical path activities to shorten their duration, typically increasing cost.