ANSWERS - IES Master · Projectized Organization vs Strong Matrix are not very clear cut. 4. (b) In a Weak Matrix organization, the project manager has no authority over the project

1. (a)

2. (d)

3. (d)

4. (b)

5. (c)

6. (a)

7. (b)

8. (b)

9. (b)

10. (a)

11. (b)

12. (a)

13. (b)

14. (d)

15. (d)

16. (b)

17. (d)

18. (c)

19. (d)

20. (b)

ESE-2018 PRELIMS TEST SERIESDate: 18th November, 2017

ANSWERS

21. (d)

22. (a)

23. (d)

24. (b)

25. (c)

26. (b)

27. (a)

28. (c)

29. (a)

30. (c)

31. (b)

32. (a)

33. (a)

34. (c)

35. (a)

36. (a)

37. (c)

38. (c)

39. (d)

40. (d)

41. (d)

42. (c)

43. (b)

44. (b)

45. (d)

46. (d)

47. (a)

48. (b)

49. (a)

50. (c)

51. (d)

52. (b)

53. (b)

54. (a)

55. (c)

56. (d)

57. (d)

58. (c)

59. (d)

60. (a)

61. (b)

62. (c)

63. (a)

64. (d)

65. (d)

66. (d)

67. (d)

68. (b)

69. (c)

70. (b)

71. (d)

72. (c)

73. (b)

74. (d)

75. (c)

76. (a)

77. (d)

78. (d)

79. (d)

80. (d)

81. (d)

82. (b)

83. (b)

84. (b)

85. (c)

86. (c)

87. (b)

88. (d)

89. (b)

90. (d)

91. (d)

92. (a)

93. (c)

94. (c)

95. (c)

96. (a)

97. (c)

98. (c)

99. (c)

100. (a)

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1. (a)

In rolling wave planning, near term work isplanned in more detail, while the distantwork is planned broadly.

2. (d)

A project is planned set of interrelated tasksto be executed over a fixed period and withincertain cost and other limitations. It has amission or a target and also definite finishtime. Projects can vary in terms oftechnology, equipment and materials,machinery and people, work ethics andorganizational culture.

3 (d)

The type of organization with reference toproject management and organizationalstructure. Organizations can be broadlydivided into three general types: Functional,Projectized and Matrix (midway betweenFunctional and Projectized). Knowledgeabout the type of organization is vital toproject success as the project managementapproach will be dependent on the type oforganization in which the Project Manageris working in.

• Functional Organization: Functionalorganizations are organized around thefunctions the organization need to beperformed.

• Functions include: Human Resources,Information Technology, Sales, Marketing,Administration, etc.

• This is the traditional structure oforganizations

• The “Project Management” role will beperformed by a team member of a functionalarea under the management of a functionalmanager

• Resources are controlled and authorized byfunctional managers

• The “Project Management” role would actmore like a “Project Co-ordinator” or “ProjectExpediter” who do not usually carry the titleof “Project Manager”

• Project Management is considered a part-time responsibility

• Authority of the “Project Manager” is verylimited

• Projectized Organization: ProjectizedOrganizations are organized around projects

for maximal project managementeffectiveness.

• The Project Manager is given more authorityand resources control

• The Project Manager is responsible to theSponsor and/or Senior Management

• The Project Manager is usually a full-timerole

• Team members are usually co-locatedwithin the same office / virtually co-locatedto maximize communication effectiveness

• There can be some functional units withinorganization, however, those units are havinga supportive function only without authorityover the project manager

• Matrix Organization: Matrix Organizationsare organizations with structuresthat carries a blend of the characteristicsof functional and projectized organizations.

• Matrix organizations can be classified asweak, balanced or strong based on therelative authority of the Functional Managerand Project Manager

• If the “Project Manager” is given a role ofmore like “Project Co-ordinator” or “ProjectExpediter”, then the organization isconsidered “Weak Matrix”

• If the “Project Manager” is given much moreauthority on resources and budget spending,the organization is considered “StrongMatrix”

• The differentiations between FuncationalOrganization vs Weak Matrix and alsoProjectized Organization vs Strong Matrixare not very clear cut.

4. (b)

In a Weak Matrix organization, the projectmanager has no authority over the projectbudget and resources. He needs permissionfrom the functional manager to use theresources.

5. (c)

In a balanced matrix organization structure,both managers have equal authority overthe budget.

6. (a)

7. (b)

Project constraints are scope, resources,quality, schedule, budget and risk.

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8. (b)

According to the Project ManagementInsti tute (PMI), the term projectstakeholder refers to, “an individual, group,or organization, who may affect, be affectedby, or perceive itself to be affected by adecision, activity, or outcome of a project” .

Project stakeholders are entities that havean interest in a given project. Thesestakeholders may be inside or outsidean organizationwhich:

1. sponsor a project, or

2. have an interest or a gain upon a successfulcompletion of a project;

3. may have a positive or negative influence inthe project completion.

The following are examples of projectstakeholders:

• Project leader

• Senior management

• Project team members

• Project customer

• Resource Managers

• Line Managers

• Product user group

• Project testers

• Any group impacted by the project as itprogresses

• Any group impacted by the project when itis completed

• Subcontractors to the project

• Consultants to the project

9. (b)

Project managers need to developcommunication strategies to engagestakeholders throughout the project.Strategies such as meetings, sharedresources and project hubs keep stake-holders continuously informed and expecta-tions are transparent, leaving no room formiscommunication or confusion.

10. (a)

Most project life-cycle descriptions share anumber of common characteristics :

1. Cost and staffing levels are low at the startof the project, it increases progressively

during planning phase, reaches to peak inexecution phase.

2. At the start of project probability ofsuccessfully completing project is lowestand hence risk and uncertainty are highest.

3. At the start of project, ability of stakeholdersto influence final output of project is highestand gets progressively reduced as projectprogresses.

11. (b)

A project lifecycle is composed of one ormore phases. Options (a), (c) and (d) donot accurately describe the relationshipbetween project phases and project lifecycle and are therefore incorrect.

12. (a)

The concept or initiation phase comprisesonly those activities that initiate a project.Hence, the costs are generally lowest inthis phase of the project.

13. (b)

The ability of the stakeholders to influencethe final characteristics of the project productis highest at the start and gets progressivelylower as project continues. A majorcontributor to this phenomenon is that thecost of changes and error correctiongenerally increases or project continues.

14. (d)

Ideally speaking, each corporate,department, and section objective shouldbe(SMART)

• Specific – target a specific area forimprovement.

• Measurable – quantify or at least suggestan indicator of progress.

• Assignable – specify who will do it.

• Realistic – state what results canrealistically be achieved, given availableresources.

• Time-related – specify when the result(s)can be achieved.

15. (d)

The level of authority to be exercised bythe project manager is delegated by seniormanagement. It varies considerably fromcompany to company. The authority of theproject manager must be commensurate

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with the accountability to which he is held.It is dependent on corporate policies too.

16. (b)

* Issues are problems, gaps inconsistenciesor conflicts that occur unexpectedly in thelifecycle of a project.

* Issues are recorded and tracked in issuelog. It provides a tool for reporting andcommunicating all that is happening withina project.

* Issue log helps a project manager to raiseissues and ensure that they are investigatedand resolved quickly and effectively.

17. (d)

Project Communications Management

Given that a project manager’s job is oftensaid to be about 80% communication, thisis another small knowledge area. The threeprocesses are planning, managing andcontrolling project communications. It’s herethat you’ll write your communications planfor the project and monitor all the incomingand outgoing communications.Also ProjectCommunications Management includesthe processes that are required to ensuretimely and appropriate planning, collection,creation, distribution, storage, retrieval,management, control, monitoring, and theultimate disposition of project information.Project managers spend most of their timecommunicating with team members andother project stakeholders, whether they areinternal (at all organizational levels) orexternal to the organization. Effectivecommunication creates a bridge betweendiverse stakeholders who may have differentcultural and organizational backgrounds,different levels of expertise, and differentperspectives and interests, which impactor have an influence upon the projectexecution or outcome.

18. (c)

Project Management Knowledge Areas-

Project Integration Management

Project Scope Management

‘Project Time Management

Project Cost Management

Project Quality Management

Project Human Resource Management

Project Communications Management

Project Risk Management

Project Procurement Management

Project Stakeholder Management

Configuration management is not in Projectmanagement knowledge areas.

19. (d)

Project Time Management :

Project time management isn’t about beingpersonally more effective. It relates to howyou manage the time people are spendingon their project tasks, and how long theproject takes overall. This knowledge areahelps you understand the activities in theproject, the sequence of those activities,and how long they are going to take.

It’s also where you prepare your projectschedule.

Project time management is one of the 10PMP Knowledge Areas for project managers.It’s the discipline of project managementthat looks at controlling the amount of timeit takes to do the work. The project timemanagement processes are:

1. Plan schedule management

2. Define activities

3. Sequence activities

4. Estimate activity resources

5. Estimate activity durations

6. Develop schedule

7. Control schedule.

20. (b)

A process is a series of actions, changesor functions bringing about a result.

21. (d)

Project Integration Management

Integration management is a collection ofprocesses required to ensure that the variouselements of the projects are properlycoordinated. It involves making trade-offsamong competing objectives and alternativesto meet or exceed stakeholder needs andexpectations.Comprised of:

Project plan development

Integrating and coordinating all project plansto create a consistent, coherent document

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Project plan execution

Carrying out the project plan, according tothe strategy, plan and activities as per theplan

Integrated change control

Coordinating changes across the project.

22. (a)

Quality audits are independent reviewsperformed by trained auditors or 3rd partyreviewers. The purpose of a quality audit issame as the purpose of the perform qualityassurance process – to identify ineffectiveand inefficient process used in project.

Quality audits performed correctly willprovide the following benefits :

1. The products of the project is fit for useand meets safety standards.

2. Applicable laws and standards are adheredto.

3. Quality improvements are identified.

4. The corrective action is recommended andimplemented where necessary.

23. (d)

Project Scope Management

‘Scope’ is the way to define what yourproject will deliver. Scope management isall about making sure that everyone is clearabout what the project is for and what itincludes. It covers collecting requirementsand preparing the work breakdown structure.

24. (b)

Net present value (NPV) is a method ofdetermining the current value of allfuture cash flows generated by a projectafter accounting for the initial capitalinvestment. It is widely used in capitalbudgeting to establish which projects arelikely to turn the greatest profit.It excludesvariations in the value of money over time.

25. (c)

In project management, a projectcharter, project definition, or projectstatement is a statement of the scope,objectives, and participants in a project. Itprovides a preliminary delineation of rolesand responsibilities, outlines the projectobjectives, identifies the main stakeholders,and defines the authority of the project

manager. It serves as a reference of authorityfor the future of the project. The terms ofreference are usually part of the projectcharter.

A project charter should:

• Contain the essence of the project.

• Provide a shared understanding of theproject.

• Act as a contract between the projectsponsor, key stakeholders and the projectteam.

The project charter is usually a shortdocument that refers to more detaileddocuments such as a new offering requestor a request for proposal.

26. (b)

We can Choose Project B. All the same,compare the Risks in both for betterjudgement. We go with higher rate of returni.e B.

27. (a)

Initiation Phase : It is during this phasethat feasibility study is performed to decidewhether project can be undertaken or not.Only after this phase if the managementdecides to take up the project and theothers cases follows.

28. (c)

The Delphi technique has all of the followingcharacteristics

It is a way to reach a consensus of expertson a subject such as project risk.

It is a technique in which project riskexperts participate anonymously.

It helps reduce bias in the data and keepsany one person from having undue influenceon the outcome.

29. (a)

The primary objective of capacity planningtechniques is to estimate capacityrequirements early enough to be able tomeet those requirements and flawlessexecution of the capacity plan allows thefirm to avoid unpleasant surprises likeinsufficient capacity leads to deterioratingdelivery performance & excess capacitymay be a needless expense. MarketPotential, Funds Availability and Break Even

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Analysis becomes the important factors inCapacity Planning.

30. (c)

The Initiating (conception) process is wherestakeholders have the greatest ability toinfluence outcomes of the project. Risk ishighest during this stage because of thehigh degree of unknown factors.

31. (b)

Work package descriptions are not part ofproject charter, they are part of workbreakdown structure (WBS) document.

32. (a)

The project manager should be named earlyin the project, during project initiating ifpossible. It is then his or her responsibilityto control the project throughout its life.

33. (a)

A kickoff meeting is the first meeting amongthe project stakeholders. This meeting canbe held among the high-level projectstakeholders such as the project sponsor,management, and the project manager.

At the project level, you can have thismeeting with your team members. Sinceall of your team members are new, this willbe their first meeting together.

If the project is small, you can have onlyone project meeting with all of your teammembers before starting the project work.However, if the project is large you canhave it at the beginning of each phase.

If the project is very large, complex, andspread out in a large geographical area andyou want to have a kickoff meeting, youcan have it. However, in this case, themeeting will be a virtual kickoff meetingwhere all participants can communicate witheach other through the internet.

The kickoff meeting is an important tool forthe project manager to get to know all teammembers and motivate them to achieve theproject objectives. This is the first meetingfor the project and mainly performs the taskof kick-starting the project. A kickoff meetingis an opportunity for you to demonstrateyour abilities to lead and direct the project;therefore, you must plan and manage thismeeting carefully.

34. (c)

Fall back plan is used when a primaryresponse plan process to be inadequatecontingency reserve can be used formanaging risk but conducting bidderconference is not a strategy used in riskmanagement.

35. (a)

A project plan, according to the ProjectManagement Body of Knowledge (PMBOK),is: “...a formal, approved document used toguide both project execution and projectcontrol. The primary uses of the projectplan are to document planning assumptionsand decisions, facilitate communicationamong project stakeholders, and documentapproved scope, cost, and schedulebaselines. A project plan may besummarized or detailed.

36. (a)

Elapsed time is the time betweendesignating a resource to a task and thecompletion of the task. In simple terms, itis the passage of calendar days. ElapsedTime includes holidays and weekends.Elapsed time can be traced by milestonesthat have been set on the schedule of theproject.

Consider the first house painting example.You work 6 hours a day for 9 days. Theelapsed time for a normal day’s work maybe 4 hours, which includes 4 hours of realtime work plus breaks and lunch time. YourElapsed Time is 11 days, and that includesa Saturday and a Sunday, including thebreaks you take in between.

37. (c)

To calculate the late start and late finishdates for a set of tasks, we use backwardpass. Early Start (ES) and Early Finish(EF) use the forward pass technique.

38. (c)

A statement of work (SOW) is adocument routinely employed in the field ofproject management. It defines project-specific activities, deliverables and timelinesfor a vendor providing services to the client.The SOW typically also includes detailedrequirements and pricing, with standardregulatory and governance terms andconditions

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39. (d)

40. (d)

The term resource planning refers to planningof labor, capital equipment and materials.

41. (d)

Cost control is concerned with measuringvariances from the cost baseline and takingeffective corrective action to achieveminimum costs. Procedures are applied tomonitor expenditures and performanceagainst the progress of a project. Allchanges to the cost baseline need to berecorded and the expected final total costsare continuously forecasted. When actualcost information becomes available animportant part of cost control is to explainwhat is causing the variance from the costbaseline. Based on this analysis, correctiveaction might be required to avoid costoverruns.

Cost Control is control chnages to theProject Budget, so answer B and C.

42. (c)

43. (b)

The Bar Chart or Gantt Chart, shows thedurations, the starting and the ending date.

44. (b)

Bottom-up estimating is an extremelyhelpful technique in project management asit allows for the ability to get a more refinedestimate of a particular component of work.In bottom-up estimating, each task isbroken down into smaller components.Then, individual estimates are developed todetermine what specifically is needed tomeet the requirements of each of thesesmaller components of the work. Theestimates for the smaller indiv idualcomponents are then aggregated to developa larger estimate for the entire task as awhole. In doing this, the estimate for thetask as a whole is typically far moreaccurate, as i t al lows for carefulconsideration of each of the smaller partsof the task and then combining thesecarefully considered estimates rather thanmerely making one large estimate whichtypically will not as thoroughly consider allof the individual components of a task. Ingeneral, the smaller the scope, the greaterthe accuracy.

Thus, Bottom –up estimating is the mostaccurate cost estimating technique .

45. (d)

Cost control is concerned with measuringvariances from the cost baseline and takingeffective corrective action to achieveminimum costs. Procedures are applied tomonitor expenditures and performanceagainst the progress of a project. Allchanges to the cost baseline need to berecorded and the expected final total costsare continuously forecasted. When actualcost information becomes available animportant part of cost control is to explainwhat is causing the variance from the costbaseline. Based on this analysis, correctiveaction might be required to avoid costoverruns.

46. (d)

47. (a)

Resource planning involves determining whatquantities are to be used to perform projectactivities.

48. (b)

In essential, WBS which is nothingbut decomposition of project work ordeliverables into smaller more manageableparts.

49. (a)

A responsibility assignment matrix(RAM),also known as RACI matrix or linearresponsibility chart[ (LRC), describes theparticipation by various roles in completingtasks or deliverables for a project orbusiness process.It is especially useful inclarifying roles and responsibilities in cross-functional/departmental projects andprocesses.

50. (c)

A work package is a group of related taskswithin a project. Because they look likeprojects themselves, they are often thoughtof as sub-projects within a larger project.Work packages are the smallest unit ofwork that a project can be broken down towhen creating your Work BreakdownStructure (WBS).Tasks are typically groupedinto work packages based on geographicalarea, engineering discipline, technology, orthe time needed to accomplish them.

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51. (d)

Histogram is useful in determining howmuch time is expected from various teammembers and/or functions.

52. (b)

The WBS is a deliverable-oriented hierarchialdecomposition of the work to be executedby the project team to accomplish theproject objectives and create deliverables.

53. (b)

The cost baseline is a “time-phased budgetthat is used as a basis against which tomeasure, monitor, and control overall costperformance on the project.” Cost, detailand duration of any activity will be providedby Cost Estimates, WBS and Projectschedule respectively.

54. (a)

If you have more than one critical path, riskto your project will increase because nowyou have more than one path to manageclosely.

55. (c)

Risk management is helping in the selectionof good project, determining project scope,and developing reallistic estimate.

56. (d)

Root cause analysis seeks to find the causeof a particular risk

57. (d)

Option (a) refer to risk management

Option (b) refers to Delphi technique

Option (c) refers to project management

Option (d) best describes the changemanagement

58. (c)

59. (d)

Project risk is defined as the cumulativeeffect of chances of uncertain occurrenceswhich will adversely affect project objectives

60. (a)

61. (b)

62. (c)

Project Risk Characterization: Identifyingthe potential external or internal risksassociated with procurement actions usingestimates of probability of occurrence.

It is important to know the risk event thatcan take place, the probability of it andwhat will be its impact if it occurs.

63. (a)

Analogous Estimating : Analogousestimating uses a similar past project toestimate the duration or cost of currentproject, thus the root of the word is analogy.

It is used when there is limited informationregarding the current project, an analogousestimate is considered “top-down” and isgenerally not as accurate as otherestimating techniques.

Because the project manager’s, andpossibly the team’s, experience andjudgment are applied to the estimatingprocess, it is considered a combination ofhistorical information and expert judgment.

64. (d)

Seven Factors Leading to PoorExecution of Strategy:

There are many risks and pitfalls (hiddenrisks) for strategy execution, besides‘culture eating strategy for breakfast’, thereare more factors leading to the poorexecution of strategy.

1. Strategy Creep : Give lip service to thestrategy. Similar to the damage scopecreep can cause to projects, Strategy Creepcan be indicative of larger planning issuessuch as poor due diligence in the planningphase, no alignment with vision or mission,lack of clear objectives, lack of clear goals,etc. There’s lack of resource to supportstrategy.

2. Weak Leadership : There is a list ofreasons why strategy implementations fail,but every reason points back to weak orineffective leadership. Implementing newstrategies is difficult and is often met withgreat resistance. Leaders must be willingto display the courage and determinationrequired to continually push the initiativeforward to achieve the desired goal.

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3. Poor Prioritization : Lack of prioritizationof strategic objectives; lack of detailplanning to support plan goal achievement.It is important but so is other priority, andwhen you have to decide how to spendyour time and staffing, what to communicateto the management team and troops, howyour reward and what you recognize, thisstrategy doesn’t make the cut or gets justa little of your attention and resources.

4. Poor Communication and Coordination :Lack clear employee understanding of thestrategy and what it looks like in action ateach individual employee’s level. And theabsence of a clear strategy map. Lettingthe wrong pressures into the system suchas “get that product out there yesterday” tobeat the competition, to discover that youmanaged to do their work and beat yourselfin the process.

5. Mis-Translation of Strategy into Goals :Once a strategy is formulated, it has to betranslated into goals. A strategy is a generaloutline of loose action items that createdepartmental goals; goals are concreteitems with a measurable factor anddeadlines. Failure to recognize and managethe devil in the details. When you designedthe strategy, you may not have understoodthat the execution was going to impact otherareas of the business in ways you didn’tanticipate. Stay engaged.

6. Lack of Governance Structure : Thefailure can often be linked with poorexecution of strategy. You can have thegreatest strategic plan in the world, but itwill be worthless if the organizations arenot accountable to anyone for execution oftheir tasks.

– Organizational misalignment/poor strategycascading (to business units, departments,and individual goal plans)

– Lack of active involvement in strategyexecution governance management at theexecutive and organizational leader level

7. Lack of Meaningful Measurement :Failure to Measure: What gets measureddone, especially when there are reward andrecognition involved. Ensure you havesomething to measure. Understand timeframes for when to expect to see adifference. Execution of a strategy takes

much longer to show up in meaningfulmetrics than originally conceived. Havemeasurements to track (part of governancepractice) and track performance, providingmanagement and staff communication onprogress, and recognition of milestones &misses and the people who are achievingthe desired results.

65. (d)

Carrying out means execution and it ishappening in execution phase.

66. (d)

Earned Value Analysis (EVA) is anindustry standard method of measuring aproject’s progress at any given point in time,forecasting its completion date and finalcost, and analyzing variances in theschedule and budget as the projectproceeds.

67. (d)

Outputs from Cost Budgeting

1. Cost Baseline : The cost baseline is atime-phased budget that will be used tomeasure and monitor cost performance onthe project. It is developed by summingestimated costs by period and is usuallydisplayed in the form of an S-curve, asillustrated in Figure.

Many projects, especially larger ones, mayhave multiple cost baselines to measuredifferent aspects of cost performance. Forexample, a spending plan or cash-flowforecast is a cost baseline for measuringdisbursements.

68. (b)

Even though the measurement was notidentified in planning, the project managerwould still have to investigate the varianceand determine if it is important. Therefore,the project manager is in the project moni-toring and controlling process group.

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69. (c)

Work Performance Information is “theperformance data collected from variouscontrolling processes, analyzed in contextand integrated based on relationships acrossareas; e.g. status of deliverables, andforecasted estimates to complete, etc.”

Some examples of work performanceinformation are the time elapsed and moneyspent. Some examples of work performancemeasurements are cost variance, schedulevariance, cost performance index, scheduleperformance index, etc.

70. (b)

Burn Rate is a metric to assess theperformance of a certain project with respectto the original budget. In short, burn rate isthe rate at which the project is spending itsoriginal budget.

CPI = BCWP/ACWP = 1.2 This meansthat for every rupee spent, the project isachieving Re. 1.20 of value.

71. (d)

Cost Performance is a measure of theefficiency of expenses spent on a project.The formula that a business normally usesto assess the Cost Performance Index (CPI)is the ratio of earned value (EV) over actualcosts (AC).

CPI = 1000/500 = 2

72. (c)

Percent Complete is simply the amount ofwork that has been completed divided bythe budget at completion.

% complete = BCWP / BAC

Notice that the percent complete can neverbe greater than 100. This is because theBAC is the sum of the budget in the project.

73. (b)

Performing Quality Control : Performingquality control (QC) involves monitoringspecific project results to determine whetherthey comply with relevant quality standardsand identifying ways to eliminate causes ofunsatisfactory results.

It should be performed throughout theproject. Quality standards include projectprocesses and product goals. Project resultsinclude deliverables and project

management results, such as cost andschedule performance.

QC is often performed by a quality controldepartment or similarly titled organizationalunit. QC can include taking action toeliminate causes of unsatisfactory projectperformance.

74. (d)

A benefit-cost ratio is an indicator, usedin cost-benefit analysis, that attempts tosummarize the overall value for money of aproject or proposal. All benefits and costsshould be expressed in discounted presentvalues.

Benefits are not profits, Benefits =Revenues/Payback

75. (c)

Cost Variance is as important as ScheduleVariance. A project must completed withinthe approved budget. Exceeding plannedbudget is bad for stakeholders and projectmanager.

Cost Variance can be calculated bysubtracting the actual cost from earnedvalue.

Cost Variance = Earned Value – Actual Cost

CV = EV – AC

From the above formula, we can concludethat:

• If Cost Variance is positive, this means youare under budget.

• If Cost Variance is negative, this meansyou are over budget.

• If Cost Variance is zero, this means youare on budget.

Schedule Variance : Schedule variancetool gives us the information needed todetermine if we are ahead of schedule orbehind the schedule in terms of money.

Schedule Variance can be calculated bysubtracting planned value from earned value.

Schedule Variance = Earned Value –Planned Value

SV = EV – PV

From the above formula, we can concludethat:

• If Schedule Variance is positive, this meansyou are ahead of schedule.

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• If Schedule Variance is negative, this meansyou are behind schedule.

• If Schedule Variance is zero, this meansyou are on schedule.

When the project is completed, ScheduleVariance becomes zero, because at theend of the project all Planned Value hasbeen earned.

76. (a)

Cumulative cost curves, or S-curves, enablethe project manager to monitor costvariances at a glance. The difference inheight between the planned-expenditurecurve and the actual-expenditure curverepresents the monetary value of variancesat any given time.

The cost performance baseline is the totalexpected cost for the project whencalculating a budget at completion value,using an earned value managementtechnique. In earned value management(EVM) techniques, the cost performancebaseline is also known as the performancemeasurement baseline (PMB).

77. (d)

Earned Value Management VarianceFormulae leverage the Earned ValueManagement Fundamental Formulae (BAC,AC, PV, and EV) to determine the variancespertaining to project cost and schedule.

Apply the formula CV = EV – AC andSV = EV – PV

where Planned Value (PV),

Earned Value (EV),

Actual Cost (AC)

Schedule Variance (SV),

Cost Variance (CV)

So CV = 523000 – 643000 = –120,000

SV = 523000 – 632000 = –100,000

78. (d)

Characteristics of Project Phases : Eachproject phase is marked by completion ofone or more deliverables. A deliverable is atangible, verifiable work product such as afeasibility study, a detail design, or a workingprototype. The deliverables, and hence thephases, are part of a generally sequentiallogic designed to ensure proper definition

of the product of the project.

The conclusion of a project phase isgenerally marked by a review of both keydeliverables and project performance todate, to (a) determine if the project shouldcontinue into its next phase and (b) detectand correct errors cost effectively. Thesephase-end reviews are often called phaseexists, stage gates, or kill points.

79. (d)

If the contractor completes the workspecified in the procurement statement ofwork and met the term and conditions ofthe contract, the contract is consideredcomplete.

80. (d)

Each project wil l have dif ferentrequirements, but closure lists are likely toinclude all or most of the following:

• handover complete for all deliverables;

• all deliverables as accepted signed off byclient or sponsor;

• final project status reports complete;

• all financial processes and reports complete;

• project review complete;

• staff performance evaluations and reportscompleted;

• staff employment on project terminated;

• al l supply contracts and processesterminated;

• site operations and accommodation usedfor project closed down;

• disposal of equipment and materials;

• announcement of completion of project(internal, external and public relationscontacts);

• completion and storage of project file.

81. (d)

Quality Audits : Quality audits areindependent reviews performed by trainedauditors or third-party reviewers. The purposeof a quality audit is the same as the purposeof the Perform Quality Assurance process– to identify ineffective and inefficientprocesses used on the project. These auditsmight examine and uncover inefficient

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processes and procedures as well.

You can perform quality audits on a regularschedule or at random depending on theorganizational policies. Quality auditsperformed correctly will provide the followingbenefits :

• The product of the project is fit for use andmeets safety standards.

• Applicable laws and standard are adheredto.

• Corrective action is recommended andimplemented where necessary.

• The quality plan for the project is adheredto.

• Quality improvements are identified.

• The implementation of approved changerequests, corrective actions, preventiveactions, and defect repairs are confirmed.

82. (b)

During Closing phase, primary focus is onreleasing final output to customer, handingover project documents to sponsor ororganization terminating supplier contracts,communicating the closure of project to allstakeholders and releasing projectresources.

Failure of project is not called projectclosing.

83. (b)

Unnatural termination occurs whether or notthe project’s goals have been met; it is theresult of a decision to stop work at anarbitrary point. Unnatural terminations canresult from a breakdown in client/vendorrelationships, a change in customer needs,and unpredictable difficulty, or as the resultof a lack of funds. Even a highly successfulproject can be terminated in midstreamwhen a need disappears or is met by someother source.

84. (b)

Natural passing or Termination by murderis an example of termination by Extinction.

85. (c)

The diff iculty with relying on verbalagreements as contractual terms is thatthey are much more difficult to prove as itwill often be your word against your‘prospective’ employee’s.

This can be particularly difficult if a periodof time has passed, or if the relevantmanager who made the verbal agreementhas changed their mind, or even left thecompany.

86. (c)

No functional division exists in projectisedorganisation. Functional division is acharacteristic of functional organisation ormatrix organisation.

87. (b)

A stakeholder in an organization is definedby any group or individual who can affect oris affected by the achievement of theorganization’s objectives.

88. (d)

Programs may include elements of relatedwork outside of the scope of the discreteprojects in the program.

A Portfolio, for our purposes, is a collectionof programs and/or projects and other workthat are grouped together to facilitateeffective management of that work to meetstrategic business objectives.

89. (b)

• The initiating process group consists ofprocesses necessary to define a newproject or a new phase of an existingproject.

• It involves obtaining authorization for theproject or project phase.

• It defines objectives, outcomes, andsuccess criteria.

• It assigns a project manager.

• It allocates funds and resources.

90. (d)

PERT is event oriented and adoptsprobabilistic approach while CPM is activityoriented and follows deterministic approach.

91. (d)

Brainstorming is a group creativ itytechnique by which efforts are made to finda conclusion for a specific problem bygathering a list of ideas spontaneouslycontributed by its members.

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92. (a)

A contingency plan is a response plannedfor risk that were identified in the planningstage. Workarounds are responses for risksthat have popped up while working on theproject , and were left unidentified in earlierstages. A reserve is also considered in acontingency plan to respond to the riskevent, but the reserve in itself is not a plan.Therefore option C is also incorrect.

93. (c)

94. (c)

95. (c)

Appraisal costs are a specific categoryof quali ty control costs. Companiespay appraisal costs as part of the qualitycontrol process to ensure that their productsand services meet customer expectationsand regulatory requirements. These costscould include expenses for field tests andinspections.

96. (a)

There is minimum requirement of personneland hence minimum cost at the projectinitiation stage.

97. (c)

“A program is defined as a group of relatedprojects managed in a coordinated wayto obtain benefits and control not availablefrom managing them individually. Programsmay include elements of related workoutside the scope of the discrete projectsin the program. Programs are a form ofmultiple project coordination, leading tocertain synergies.

98. (c)

99. (c)

100. (a)

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ANSWERS - IES Master · Projectized Organization vs Strong Matrix are not very clear cut. 4. (b) In a Weak Matrix organization, the project manager has no authority over the project