Time & Cost Management Flashcards

A project manager is compressing the schedule by adding more resources to critical path activities. This technique is called:

Answer: Crashing

Crashing adds resources (people, equipment, overtime) to critical path activities to shorten the schedule, usually increasing cost.

What is the formula for Schedule Performance Index (SPI)?

Answer: EV / PV

SPI = EV / PV; an SPI greater than 1.0 indicates the project is ahead of schedule.

In the CAPM framework, which document authorizes the project manager to apply organizational resources to project activities?

Answer: Project Charter

The project charter formally authorizes the project and grants the project manager authority to use resources.

A lag in project scheduling refers to:

Answer: A delay imposed between a predecessor and successor activity

A lag is a directed delay between activities, such as waiting for concrete to cure before adding the next floor.

Which cost baseline document is used to measure and monitor project cost performance over time?

Answer: Cost Performance Baseline

The cost performance baseline is the approved time-phased budget against which actual project costs are compared.

When using the Estimate at Completion (EAC) formula that assumes past CPI performance will continue, the formula is:

Answer: BAC / CPI

EAC = BAC / CPI assumes future work will continue at the same efficiency rate as work performed to date.

What technique breaks project work into smaller components to improve the accuracy of cost and time estimates?

Answer: Bottom-up Estimating

Bottom-up estimating decomposes work into the lowest level of detail and rolls up estimates for greater accuracy.