CED Project Planning & Execution 2 — Questions and Answers
Question 1: A nonprofit executive director is launching a capital campaign. Which project planning tool best maps task dependencies and identifies the critical path?
- Gantt chart
- PERT/CPM network diagram (Correct answer)
- SWOT analysis
- Balanced scorecard
Correct answer: PERT/CPM network diagram
PERT/CPM network diagrams explicitly model task dependencies and compute the critical path — the longest sequence that determines minimum project duration.
Question 2: Midway through a building renovation project, the contractor discovers unexpected structural damage. As executive director, your FIRST action should be to:
- Immediately notify the board of directors
- Assess scope, cost, and schedule impact before escalating (Correct answer)
- Issue a change order to extend the timeline
- Pause all project work until resolved
Correct answer: Assess scope, cost, and schedule impact before escalating
Before escalating or acting, the executive director should gather impact data so decisions and communications are informed rather than reactive.
Question 3: Which estimating technique involves averaging the optimistic, most likely, and pessimistic estimates using a weighted formula to produce a single duration estimate?
- Analogous estimating
- Bottom-up estimating
- Three-point (PERT) estimating (Correct answer)
- Parametric estimating
Correct answer: Three-point (PERT) estimating
Three-point (PERT) estimating uses the formula (O + 4M + P) / 6 to produce a weighted average that accounts for uncertainty.
Question 4: A project stakeholder map categorizes individuals by their level of interest and power. High-power, low-interest stakeholders should primarily be:
- Managed closely with frequent detailed updates
- Kept satisfied with targeted, high-level communication (Correct answer)
- Monitored with minimal engagement
- Ignored to avoid scope creep
Correct answer: Kept satisfied with targeted, high-level communication
High-power, low-interest stakeholders should be kept satisfied — they can derail projects if neglected but don't need constant detail.
Question 5: An executive director sets a project baseline at kickoff. The primary purpose of the baseline is to:
- Satisfy funder reporting requirements
- Provide a reference point for measuring project performance (Correct answer)
- Lock in staff assignments for the duration
- Document lessons learned for future projects
Correct answer: Provide a reference point for measuring project performance
A project baseline — covering scope, schedule, and budget — is the approved reference against which actual performance is compared throughout the project.
Question 6: Which risk response strategy involves transferring the financial impact of a risk to a third party such as an insurer or contractor?
- Avoidance
- Mitigation
- Transfer (Correct answer)
- Acceptance
Correct answer: Transfer
Risk transfer shifts the financial consequence of a risk to another party — through insurance, warranties, or contractual clauses — without eliminating the risk itself.
Question 7: During project execution, earned value analysis shows a Cost Performance Index (CPI) of 0.82. This means the project is:
- Ahead of schedule
- Getting $0.82 of value for every $1.00 spent (Correct answer)
- Under budget
- 82% complete
Correct answer: Getting $0.82 of value for every $1.00 spent
A CPI below 1.0 indicates cost overrun — the project is only delivering $0.82 of planned value for each dollar actually spent.
CED Project Planning & Execution 2
A nonprofit executive director is launching a capital campaign.
Which project planning tool best maps task dependencies and identifies the critical path?