PMAN650_Midterm_Exam

Before you begin the exam, rename this file as PMAN650_Midterm_Exam_yourlastname. Multiple Choice and Short Answer Questions (2.5 points each) Questions 1 and 2 are based on the generic work breakdown structure presented below: WBS No. Descriptor 0 Project 1 1st Level Product Outcome A 1.1 2nd Level Product/Outcome A.1 1.1.1 3rd Level Product Outcome A.1.1 1.1.1.1 Work Package A.1.1.1 1.1.1.2 Work Package A.1.1.2 1.1.2 3rd Level Product/Outcome A.1.2 1.1.2.1 Work Package A.1.2.1 1.2 2nd Level Product/Outcome A.2 1.2.1 Work Package A.2.1 1.2.2 Work Package A.2.2 1.2.3 Work Package A.2.3 2 1st Level Product/Outcome B 2.1 2nd Level Product/Outcome B.1 2.1.1 Work Package B.1.1. 2.1.2 Work Package B.1.2 3 1st Level Product/Outcome C 3.1 Work Package C.1 3.2 2nd Level Product/Outcome C.2 3.2.1 Work Package C.2.1 3.2.2 Work Package C.2.2 3.3 2nd Level Product/Outcome C.3 3.3.1 Work Package C.3.1 1. Identify two areas where the WBS structure does not exhibit good WBS structural characteristics. How would you modify the WBS to resolve each issue? Remember, this is a generic WBS; disregard any perceived issues associated with the descriptors and the format of the numbering system. Focus on issues associated with desired WBS core characteristics. 2. Define Planned Value (PV) and Budget at Completion (BAC). When does PV equal BAC? 3. When are Fixed Formula Earned Value (EV) measurement rules appropriate? 4. What is the difference between percent complete and percent complete with gates earned value (EV) measurement rules? What advantage does the latter have over the former? 5. Under what conditions would the high end Estimate at Completion (EAC) formula provide a value numerically less than the low-end EAC formula? 6. You’ve just completed an earned value analysis of your project. The results indicate one of the control accounts CV of negative 100 and a CPI of 1.02. What does this mean? 7. Describe the cost baseline. What is the difference between the cost baseline and the performance measurement baseline? 8. Describe the relationships among project cost, schedule, and scope. 9. How does earned value give a clearer picture of project schedule and cost status than a simple plan versus actual system? 10. What is a cost account? How is it used? 11. Why is it important to resist changes to the performance measurement baseline? Under what conditions would changes to the baseline be appropriate? When would changes to the baseline not be allowed? 12. Cost Variance (CV) and Cost Performance Index (CPI) can both be used to determine whether a project is on budget, under budget, or over budget at a particular point in time. Why have two measures for the same thing? Project Exercise A – 20 points From the data shown below, calculate the earned value (EV) of each control account as of 5/30/14. Assume all control account work is on schedule except as noted below. Control Account Scheduled Start Scheduled Completion Budgeted Value EV Progress Rule 1 3/3/2014 6/30/2014 10,000 Percent Complete with Gates (Note 1) 2 5/5/2014 6/6/2014 3,000 Fixed Formula: 50/50 3 5/26/2014 6/6/2014 1,000 Fixed Formula: 0/100 4 5/12/2014 5/30/2014 2,000 Fixed Formula: 30/70 5 4/14/2014 7/11/2014 15,000 Weighted Milestones (Note 2) Note (1): Five equally-valued gates have been established in this control account. Two of the five gates are complete as of 5/30/14.The Control Account Manager estimates that half of the work required for the third gate has also been completed. Note 2: Six milestones have been established in this control account with the following values: (1) milestone 1 – 20%; milestone 2- 15%; milestone 3 – 10%; milestone 4 – 25%; milestone 5 - 15%; milestone 6 – 15%. Three of the milestones are complete as of 5/30/14. Project Exercise B – 20 points You’re undertaking a backyard renovation and have decided to create several management control points where scope, budget, and schedule will be integrated and compared to earned value for performance measurement: (1) preparatory work; (2) outdoor living area; (3) lawn and garden areas; (4) privacy considerations; and (5) utilities and services to support outdoor activities. The outdoor living area includes a paver patio, weather protection, an outdoor kitchen, and an eating/lounging area. The proposed WBS for the project is shown below. The WBS is decomposed to the work package level; i.e., each work package stands on its own and does not include any lower level elements. The top level WBS (numbered 0) is the total project. Complete the WBS numbering system without modifying the WBS structure. WBS No. Descriptor 0 Backyard Renovation 1 Preparations Obtain building permits Locate/mark underground utilities cable/pipes Utilities/Services Entertainment Lighting and Outdoor Electrical Service System Select/purchase entertainment lighting and outdoor electrical service system components Locate/install entertainment lighting system components Interface entertainment lighting system with electrical panel Test entertainment lighting system Locate/install outdoor electrical service system wiring Interface outdoor electrical service system with electrical panel Test electrical service system Landscape Lighting System Select/purchase landscape lighting system components Locate/install landscape lighting system components Interface landscape lighting system components with outdoor electrical service system Cooking Gas System Select/purchase cooking gas system components Install gas line and shutoff valve for cooking equipment Interface with gas source and test connection Irrigation System Select/purchase irrigation system components Locate/install irrigation system components Interface with water source and test connection Outdoor Living Area Paver patio Select/purchase patio construction material Stakeout and prepare area for new patio Install new paver patio Weather Protection Select/purchase patio cover Install patio cover Outdoor Kitchen Cooking Area Locate and install cooking equipment Interface cooking equipment with cooking gas service and test connection Test cooking equipment Preparation Area Locate and install cabinets and countertops Locate/install cabinet electrical receptacles Interface receptacles with outdoor electrical service system wiring - test connection Eating/Lounging Area Purchase patio furniture Assemble/install patio furniture Lawn/Garden Areas Planting Beds Layout and prepare planting beds Install trees/plants Mulch planting beds Lawn Prepare lawn areas Install sod Privacy Select/purchase fencing material Install fencing Paint fencing