Achieve Success in the PMI PMI-SP Exam: A Detailed PMI Scheduling Professional Guide

The critical chain method is similar to the critical path method, but it considers the availability of project resources. The critical path method assumes that the project resources are available for the identified project work in the sequence of the work as defined in the project network diagram. The Critical Chain method is a project management technique in which schedule network analysis is used for the purpose of modifying and determining a set of project schedules to account for more inadequate than estimated project financial resources. This method tends to keep the resources levelly loaded, but requires the resources to be flexible in their start times and to quickly switch between tasks and task chains to keep the whole project on schedule. In the Critical Chain method, projects are completed more rapidly and with better scheduling consistency.

Answer options B, A, and D are incorrect. These are not valid definitions for the critical chain method.

Your schedule variance is -$33,750. You can find this by using the formula earned value-minus planned.

Answer option C is incorrect. Cost is not the largest variance in the project.

Answer option A is incorrect. Cost is not the largest variance in the project (it is -$8,000).

Answer option D is incorrect. -$20,000 is the variance at completion for the project.

Cost performance index (CPI) is used to calculate performance efficiencies. It is used in trend analysis to predict future performance. CPI is the ratio of earned value to actual cost. The CPI is calculated based on the following formula: CPI = Earned Value (EV) / Actual Cost (AC) If the CPI value is greater than 1, it indicates better than expected performance, whereas if the value is less than 1, it shows poor performance. The CPI value of 1 indicates that the project is right on target. In this instance, the actual costs are $125,000 more than what the work is worth, which means you'll need to find the earned value, $795,024 and add $125,000 to find the actual costs of the project, which are $920,024.

Answer option A is incorrect. This is a trick as 86 is not the same value as .86. On your PMP exam pay attention to these little details.

Answer option C is incorrect. .90 is slightly more than the Schedule Performance Index of this project.

Answer option B is incorrect. This value represents the actual cost of the project.

The judgmental forecasting method incorporates intuitive judgments, opinions and subjective probability estimates. Some examples of judgmental forecasting are as follows:

Composite forecasts

Surveys

Delphi method

Scenario building

Technology forecasting

Forecast by analogy

Answer option C is incorrect. Autoregressive moving average is an example of the causal/econometric method.

These tools and techniques are used in the Plan communications process. The tools and techniques used in the Distribute information process are as follows: Communication methods: These methods includes individual and group meetings, computer chats, audio and video conferences and other remote communications methods to distribute information. Information distribution tools: Various information distribution tools can be used to distribute information such as electronic tools, electronic conferencing tools, hard copy document distribution etc.

The estimate to complete is about knowing how much more money the project will need to complete its objectives. The estimate to complete (ETC) is the expected cost needed to complete all the remaining work for a scheduled activity, a group of activities, or the project. ETC helps project managers predict what the final cost of the project will be upon completion. The formula for the ETC is EAC- AC. The EAC is BAC/CPI. Here it is,

CPI = EV/AC

= (0.20*2,816,000)/495,000

= 563200/495,000

= 1.1378

EAC = BAC/ CPI

= 2,816,000/1.1378

= 2,474,952 (Approx)

ETC = EAC - AC

= 2,474,952 - 495,000

= 1,979,952

Answer options C and A are incorrect. These are not the valid answers for this question.

Answer option D is incorrect. This is the estimate at completion based on the current project performance.

The project charter is an input to the identify stakeholder process. It provides information about the internal and external parties concerned and is affected by the project. The project charter is the document that formally authorizes a project. The project charter provides the project manager with the authority to apply organizational resources to project activities. According to PMBOK Guide, the project charter should address the following information:

Requirements that satisfy customer, sponsor, and other stakeholder needs, wants and expectations Business needs, high-level project description, or product requirements that the project is undertaken to address

Project purpose or justification

Assigned Project Manager and authority level

Summary milestone schedule

Stakeholder influences

Functional organizations and their participation

Organizational, environmental and external assumptions

Organizational, environmental and external constraints

Business case justifying the project, including return on investment

Summary budget

If required, it also authorizes the next project phase, and updates the charter. The project manager should always be assigned prior to the start of planning, and preferably while the project charter is being developed.

Answer option A is incorrect. Expert judgment is a technique based on a set of criteria that has been acquired in a specific knowledge area or product area. It is obtained when the project manager or project team requires specialized knowledge that they do not possess. Expert judgment involves people most familiar with the work of creating estimates. Preferably, the project team member who will be doing the task should complete the estimates. Expert judgment is applied when performing administrative closure activities, and experts should ensure the project or phase closure is performed to the appropriate standards.

Answer option C is incorrect. Stakeholder analysis is the identification of stakeholder needs, wants and expectations. It involves the documentation, prioritization, and quantification of the needs to help define the project scope. Stakeholders' interests may be positively or negatively affected by execution or completion of the project and they may also exert influence over the project and its deliverables.

Answer option D is incorrect. The stakeholder register is a project management document that contains a list of the stakeholders associated with the project. It assesses how they are involved in the project and identifies what role they play in the organization. The information in this document can be very perceptive and is meant for limited exchange only. It also contains relevant information about the stakeholders, such as their requirements, expectations, and influence on the project.

The Critical Chain method examines the availability of project resources to determine when the resource may be utilized without conflicting with other activities. The Critical Chain method is a project management technique in which schedule network analysis is used for the purpose of modifying and determining a set of project schedules to account for more inadequate than estimated project financial resources. This method tends to keep the resources levelly loaded, but requires the resources to be flexible in their start times and to quickly switch between tasks and task chains to keep the whole project on schedule. In the Critical Chain method, projects are completed more rapidly and with better scheduling consistency.

Answer option C is incorrect. The Critical Path method examines the duration of the critical path to determine the finish date for the project. It does not consider when project activities are available.

Answer option B is incorrect. Resource utilization simply means that the resource is scheduled for work.

Answer option D is incorrect. A resource leveling heuristic is a guideline, such as a maximum of 35 hours per week, per resource. It is a rule that usually signals the maximum amount of hours a resource may be utilized on the project.

The schedule performance index shows how well the project is performing on schedule. It is found by dividing the earned value by the planned value. Schedule variance (SV) is a measure of schedule performance on a project. The variance notifies that the schedule is ahead or behind what was planned for this period in time. The schedule variance is calculated based on the following formula: SV = Earned Value (EV) - Planned Value (PV) If the resulting schedule is negative, it indicates that the project is behind schedule. A value greater than 0 shows that the project is ahead of the planned schedule. A value of 0 indicates that the project is right on target.

Answer option D is incorrect. EV-AC is the project's cost variance.

Answer option B is incorrect. EV/AC is the project's cost performance index.

Answer option A is incorrect. EV-PV is the project's schedule variance.

Lag time is positive time that requires the successor activity to wait for a defined amount of time, such as three days, before it can begin. Lag time does not change the task relationship, but requires a "waiting time" before the starting of the activity can begin. A lag time is a delay between the predecessor and the successor tasks. Sometimes it may be needed to schedule a delay between the predecessor and the successor tasks. For example, if two coats of paint are required to paint a car, then the final coat should be applied only when the first coat dries. This delay is known as the lag time. The lag time is entered as a positive value. The lag time can be entered as a duration or as a percentage of the predecessor's task duration. It is entered on the Predecessor tab in the Task Information dialog box.

Answer option D is incorrect. Float is a natural event that is discovered through the forward pass when using the critical path method. Float cannot be arbitrarily added as lag.

Answer option C is incorrect. Lead time actually brings activities closer together and causes them, in some cases, to overlap.

Answer option B is incorrect. Management reserve is a pool of time allotted for unscheduled changes and events that affect the project duration.