Project Management Traditional (Predictive) Project Management Flashcards

24 sample cards from the Traditional (Predictive) Project Management deck

Sampled from the end of the deck, so these are different cards from the ones shown on the syllabus page.

1. What shape does the cumulative cost baseline (S-curve) take, and why?

   It is an S-shaped curve. Spending is slow at the start (few resources), accelerates during the middle execution phase (peak activity), and levels off near the end (closeout), producing the characteristic 'S.'

2. Define the four core EVM values: PV, EV, AC, and BAC.

   PV (Planned Value) = budgeted cost of work scheduled. EV (Earned Value) = budgeted cost of work actually performed. AC (Actual Cost) = actual cost of work performed. BAC (Budget at Completion) = total planned budget for the project.

3. Write the formulas for Schedule Variance (SV) and Cost Variance (CV) and interpret their signs.

   $$SV = EV - PV \qquad CV = EV - AC$$ Positive is favorable (ahead of schedule / under budget); negative is unfavorable (behind schedule / over budget); zero is on plan.

4. Write the formulas for SPI and CPI and state what each value means.

   $$SPI = \frac{EV}{PV} \qquad CPI = \frac{EV}{AC}$$ A value $> 1$ is favorable, $= 1$ is on plan, and $< 1$ is unfavorable for schedule (SPI) or cost (CPI) performance.

5. Give the standard EAC formula assuming current cost performance (CPI) will continue.

   $$EAC = \frac{BAC}{CPI}$$ This estimate at completion projects the total cost assuming the project continues at its cumulative CPI.

6. Give the formulas for ETC and VAC in Earned Value Management.

   Estimate to Complete: $$ETC = EAC - AC$$ Variance at Completion: $$VAC = BAC - EAC$$ VAC is the projected budget surplus (positive) or overrun (negative).

7. Write the To-Complete Performance Index (TCPI) formula based on the BAC and explain its use.

   $$TCPI = \frac{BAC - EV}{BAC - AC}$$ It is the cost-efficiency that must be achieved on remaining work to meet the BAC. If $TCPI > 1$, the remaining work must be done more efficiently than planned.

8. A project has EV = \$800, PV = \$1000, AC = \$1000. Compute CV, SV, CPI, and SPI, and interpret.

   $CV = 800 - 1000 = -\$200$ (over budget); $SV = 800 - 1000 = -\$200$ (behind schedule); $CPI = \frac{800}{1000} = 0.8$; $SPI = \frac{800}{1000} = 0.8$. The project is both behind schedule and over budget.

9. What is the purpose of the 'Plan Quality Management' process?

   To identify quality requirements and standards for the project and its deliverables, and to document how the project will demonstrate compliance with those requirements. It is done in the Planning process group.

10. Distinguish quality from grade.

    Quality is the degree to which a set of inherent characteristics fulfills requirements (conformance to spec). Grade is a category assigned to deliverables having the same functional use but different technical characteristics. Low quality is always a problem; low grade may be acceptable.

11. Differentiate the cost of conformance from the cost of nonconformance (Cost of Quality).

    Cost of conformance is money spent to prevent failures—prevention costs (training, processes) and appraisal costs (inspection, testing). Cost of nonconformance is money spent because of failures—internal failure costs (rework, scrap) and external failure costs (warranty, liability, lost business).

12. Compare Quality Assurance (QA) and Quality Control (QC).

    QA (Manage Quality) is process-oriented and proactive—auditing processes and improving them to ensure appropriate quality standards are used (prevention). QC (Control Quality) is product-oriented and reactive—inspecting/measuring deliverables to verify conformance (inspection). QA prevents defects; QC finds defects.

13. In which process groups do Plan Quality Management, Manage Quality (QA), and Control Quality (QC) occur?

    Plan Quality Management is in Planning; Manage Quality (Quality Assurance) is in Executing; Control Quality (Quality Control) is in Monitoring and Controlling.

14. What is the difference between prevention and inspection in quality?

    Prevention keeps errors out of the process (build quality in). Inspection keeps errors from reaching the customer by examining the output. The principle 'prevention over inspection' means it is cheaper to prevent mistakes than to find and fix them later.

15. Distinguish attribute sampling from variable sampling in quality control.

    Attribute sampling evaluates results on a binary basis—the result either conforms or does not (pass/fail). Variable sampling rates results on a continuous scale that measures the degree of conformity (e.g., a measured dimension).

16. What are the '7 Basic Quality Tools' (Ishikawa's seven)?

    Cause-and-effect (Ishikawa/fishbone) diagrams, flowcharts, check sheets, Pareto diagrams, histograms, control charts, and scatter diagrams.

17. What does a Pareto diagram show, and what principle underlies it?

    A Pareto diagram is a histogram ordered by frequency of occurrence that shows how many defects were generated by each identified cause. It reflects the 80/20 principle: roughly 80% of problems stem from about 20% of the causes, focusing effort on the 'vital few.'

18. What is a control chart, and what do the control limits versus specification limits represent?

    A control chart displays process data over time to determine whether a process is stable and predictable. Control limits (typically $\pm 3\sigma$) are set by the process's natural variation; specification limits reflect customer requirements. A process can be in control yet still fail to meet specifications.

19. State the 'Rule of Seven' and the 'out of control' condition on a control chart.

    A process is out of control if a data point falls outside the upper or lower control limit, OR (Rule of Seven) if seven or more consecutive points fall on one side of the mean, indicating a non-random pattern that should be investigated even though no point breached a limit.

20. What is a cause-and-effect (Ishikawa/fishbone) diagram used for?

    It is used to trace an undesirable effect (the problem, at the fish's 'head') back to its root causes by branching potential contributing causes (e.g., categories like methods, machines, materials, people, environment, measurement) off the spine.

21. What is Make-or-Buy analysis, and in which knowledge area is it used?

    Make-or-Buy analysis is a general management technique used to determine whether particular work should be accomplished by the project team (make) or purchased from outside sources (buy). It is used in the Plan Procurement Management process (Project Procurement Management).

22. What cost comparison underlies a basic make-or-buy decision, and how is the break-even quantity found?

    Compare the total cost to make versus the total cost to buy. Each option has fixed and variable (per-unit) costs; the break-even quantity is where total make cost equals total buy cost: $$FC_{make} + v_{make} Q = FC_{buy} + v_{buy} Q$$ Below break-even one option is cheaper; above it, the other.

23. In a make-or-buy decision, buying is favored under what circumstances (give two).

    Any two of: the organization lacks the required expertise, capacity, or resources; the work is not part of core competencies; buying is cheaper over the needed volume; time constraints require faster delivery; or transferring risk to a seller is desirable.

24. Buy option: \$10{,}000 fixed + \$50/unit. Make option: \$30{,}000 fixed + \$30/unit. At what quantity are the costs equal?

    Set $10{,}000 + 50Q = 30{,}000 + 30Q$, so $20Q = 20{,}000$, giving $$Q = 1000 \text{ units.}$$ Below 1000 units buying is cheaper; above 1000 units making is cheaper.

What this deck covers

Traditional (Predictive) Project Management flashcards FAQ