PM - Section 2 - Quiz, Flashcards & Trivia

1. Can the Hermite Polynomials be used to assess the shape of an S-Curve of a project that, in the middle of its forecasted duration, is running over-budget, and that is forecasted to end using the 110% of the resources planned?

Yes

No

Yes - it simply will be redeployed through:

(0.5;current use of resources in %) - (1;1.1)

Explanation

Yes - it simply will be redeployed through:

(0.5;current use of resources in %) - (1;1.1)

2. Mary, a junior manager of the iBuild company, is estimating the cost of a new project for a residential building in Bogotà using the Bulk Park estimate. She estimated the base cost with the great number of historical data related to the building operation of iBuild in North Italy, but she is having some trouble with the Escalation Factor (EF). Her boss told her to do it keeping into consideration that the building is almost entirely in concrete. The data: Price of concrete in most recent project: 1 €/Kg Most recent project: 2010 Price, concrete, in Italy, 2012: 1.5 €/kg Price, concrete, in Bogotà, 2012: 2 €/kg Price, concrete, in Bogotà, 2012: 1.8 €/kg Average inflation rate: 2%/year Help Mary in estimating EF

1.50

1.11

2.00

1.20

1.56

1.16

The escalation factor is:

"the index summarizing the temporal cost trend for the resource used to build the plant"

and DOES NOT depend on the difference in the geographic location of two project. Therefore it is related to the price of the concrete in Italy:

EF = 1.5/1 = 1.5

There is no need to correct for inflation because the market prices by definition take into consideration inflation.

Moreover, it will be the Location Factor that will take into consideration the difference in price between North Italy and Bogotà.

Explanation

The escalation factor is:

"the index summarizing the temporal cost trend for the resource used to build the plant"

and DOES NOT depend on the difference in the geographic location of two project. Therefore it is related to the price of the concrete in Italy:

EF = 1.5/1 = 1.5

There is no need to correct for inflation because the market prices by definition take into consideration inflation.

Moreover, it will be the Location Factor that will take into consideration the difference in price between North Italy and Bogotà.

3. Given the following information about a network diagram: Activity | Duration | Precedences A 3 None B 2 None C 3 A, B Compute EOT(C)

2

3

4

5

Not enough data are provided

EOT(k) = max(j:Ak){EFT(j)}

where Ak is the set of direct predecessor of C

EOT(C)=max(3;2)=3.

Source: Network diagram - slide 30.

Explanation

EOT(k) = max(j:Ak){EFT(j)}

where Ak is the set of direct predecessor of C

EOT(C)=max(3;2)=3.

Source: Network diagram - slide 30.

4. In a Precedence Diagram, it is always true that: EFT(i) - EST(i) = d(i) + 1 where d(i) is the duration of task i.

True

False

A PDM allows for every type of link (Resource Network: Slide 21), and with links different from FS, the equation does not always hold (see for example exercise slide 89.

Explanation

A PDM allows for every type of link (Resource Network: Slide 21), and with links different from FS, the equation does not always hold (see for example exercise slide 89.

5. The PERT techniques allows a network diagram to have FS-FF-SF-SS links

True

False

Source: Network Diagram - slide 21.

Explanation

Source: Network Diagram - slide 21.

6. Using the Bulk Park estimate, when the size decreases, the cost per unit of size:

Decreases if M

Increases if M

Decreases if M

Is always constant

The estimate is: C = C0*(P/P0)^M if M<1, C/P (the cost per unit of size) is:

C / P = C0 / P0^M * P^M / P = a * P^M / P = a / P^(1-M), with (1-M)>0, that is an hyperbole, therefore when P decreases, C/P increases.

Explanation

The estimate is: C = C0*(P/P0)^M if M<1, C/P (the cost per unit of size) is:

C / P = C0 / P0^M * P^M / P = a * P^M / P = a / P^(1-M), with (1-M)>0, that is an hyperbole, therefore when P decreases, C/P increases.

7. The usualy analytic cost estimation for the "Bulk Materials" is:

One-by-one analytic cost estimation based on the characteristic of the single material

Average quantity used in old project times eventual increase in average price

Project-specific, based on the estimated quantity requested by engineering documents

Done through the "cost curve"

Source: Cost estimate - slide 32

Explanation

Source: Cost estimate - slide 32

8. Divide the following statement about the use of the S-Curve based on the two phase of the project to which they belong: Phase of the project: A- Planning phase B- Control and redevelopment phase Statement: 1- Run an integrated time/cost analysis 2- Study correlation among project macro-phases 3- Plan resource usage and assess the congruence with the progress rates 4- Estimate EAC 5- Redevelop the resources

A{1;2;3} B{4;5}

A{2;5} B{1;3;4}

A{2;3} B{1;4;5}

A{1;3;4} B{2;4;5}

1- it is a cost schedule analysis, for which the detailed schedule of the project is necessary: B
2- done at the beginning in the planning phase: A
3- it's a planning activity: A
4- it is a cost schedule analysis, for which the detailed schedule of the project is necessary: B
5- redevelop the resource is done when problem arise during the project: B

Source: S-Curve 12 and 13.

Explanation

1- it is a cost schedule analysis, for which the detailed schedule of the project is necessary: B
2- done at the beginning in the planning phase: A
3- it's a planning activity: A
4- it is a cost schedule analysis, for which the detailed schedule of the project is necessary: B
5- redevelop the resource is done when problem arise during the project: B

Source: S-Curve 12 and 13.

9. EMC Italy, a company set in Milan focus on Big Data, is currently dealing with the project for a new platform for one of its client. A young project manager, newly hired, is contacted by the client, that asks for a 2 days reduction in the duration of the project. The netwok diagram is the following [D(i) is the duration of task i]: Activity | Precedence | Duration standard | Cost [in thousand €] A None 4 weeks 9*(6-D(A)) B None 3 weeks 12*(7-D(B)) C A 4 weeks unknown D B 3 weeks 4*(8-D(D)) E C, D 4 weeks 3*[4-D(A)] + 10*(6 - D(E)) The activities can be crashed at most to half of their standard duration. Each activity must last a natural number of weeks. Considering that task C cannot be reduced because it is outsourced to a 3rd party, decide what price the young manager should ask the client, considering the EMC standard 20% mark-up on the cost of approved change. If more than a solution is possible, assume the manager choses the less expensive for the client. [Provide the solution as a number in thousand €, approximating at 0 decimal digit, withouth any measurement unit, e.g.: 18]

The activities that can be crashed to gain 2 days on the duration of the project are A, C, and E, of which C cannot be crashed.

The marginal cost of decrease activity A of 1 week is:

9 + 3 = 11 (9 from A and 3 from E)

The marginal cost of decrease of one week E is 10. Therefore it is more cheaper to decrease E of 2 weeks (it is allowed).

The price to be asked is: 10*2*1.2=24 thousand €.

Explanation

The activities that can be crashed to gain 2 days on the duration of the project are A, C, and E, of which C cannot be crashed.

The marginal cost of decrease activity A of 1 week is:

9 + 3 = 11 (9 from A and 3 from E)

The marginal cost of decrease of one week E is 10. Therefore it is more cheaper to decrease E of 2 weeks (it is allowed).

The price to be asked is: 10*2*1.2=24 thousand €.

Submit

10. BE AWARE: this exercise is tough. MPIF S.p.A. (Manage Project is fun) a project management company set in Como has been awarded with a contract from LIF Inc. (Logistic is funnier) for the renewal of its warehouse set in Rovellasca Manera. The project plan presetend by MPIF contains an S-Curve approximated with a trapezoidal function with aceleration phase equal to 4 months decelaration phase equal to 2 months and maximum rate of usage of resoruces equal to 0.1 (10%). Unfortunately during the approval meeting with the client LIF asked for a shorter duration of the works in order to minimize the loss due to the inaccessibility of the warehouse. After long discussions that did not leaded to violent actions only thanks to the intervention of the local police forces the managers of LIF made the following proposal: an additional benefit on the price of the work is awarded based on the following equation: where d is the duration of the work and B the additional benefit in &euro. Knowing that: the cost function of MPIF for an increase in the rate of usage of resoruces for this plan is: where r is the rate of resources usage (in decimal form) and C the additional costs in &euro due to the physical structure of warehouse the duration fo the aceleration phase cannot be changed due to a precise anti-dragging code followed by MPIF the deceleration phase cannot be changed. Help the project manager of MPIF in proposing the optimal project duration from the MPIF point of view. [Note: please provide the answer in month withouth the unit of measurement with 2 decimal digit with a "." as separator. e.g.: 3.12]

The initial duration of the central phase of the project is:

4/2*0.1 + C*0.1 + 2/2*0.1 = 1 -> C=7 months

The project therefore has an initial duration of 13 months. The marginal additional benefit for MPIF is:

MB = 200.000(13 - d) - 20000((r-0.1)*100)^2

the first derivative is:

MB' = 200000/r^2 - 400000000*r + 40000000 = 0 -> r=0.1297 (it is a maximum, therefore is the rate the manager is looking for)

The new central phase lasts:

4/2*0.1297 + C*0.1297 + 2/2*0.1297 -> C = 4.71 months

the MPIF optimal duration is therefore:

D = 4 + 2 + 4.71 = 10.71 months

Explanation

The initial duration of the central phase of the project is:

4/2*0.1 + C*0.1 + 2/2*0.1 = 1 -> C=7 months

The project therefore has an initial duration of 13 months. The marginal additional benefit for MPIF is:

MB = 200.000(13 - d) - 20000((r-0.1)*100)^2

the first derivative is:

MB' = 200000/r^2 - 400000000*r + 40000000 = 0 -> r=0.1297 (it is a maximum, therefore is the rate the manager is looking for)

The new central phase lasts:

4/2*0.1297 + C*0.1297 + 2/2*0.1297 -> C = 4.71 months

the MPIF optimal duration is therefore:

D = 4 + 2 + 4.71 = 10.71 months

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