I only need questions 1,2, and 6. Any help is appreciated!

PMAN 650 Midterm Examination (v3) Scenario (Value: 21 points) You and your spouse have purchased a foreclosure you hope to flip for a profit. The two bathrooms had been recently remodeled by the previous owners. The three bedrooms need only cosmetic work - something you decide to undertake yourself. The majority of your budget will be used for remodeling the kitchen, the dining room, and the family room. Since this is your first flip, you've hired an experienced home inspector to help you scope the project. You want to track costs carefully to stay as close to budget as possible and to give you an accurate baseline for similar work in future flips. Rather than doing a hierarchical decomposition of the project into various products/outcomes and then adding work package descriptors for each lowest-level product/outcome, you chose to list the components that needed work and then describe the work that must be completed for each of these components. NOTE: Assume your descriptions of the work that must be completed for each of the components are work package descriptors and that these work package descriptors are NOT decomposed into lower level elements. Some of the work may have to take a higher priority if cost issues arise during the renovation. The higher priority work includes modifications to the electrical, HVAC, and plumbing systems, removal of two walls to provide an open concept arrangement, and common flooring throughout the kitchen, family room, and dining room areas. The quality of other finishes in the kitchen, dining room, and/or family room may have to be reduced if the cost of the higher priority work becomes an issue. You decide to work backwards from your current list of work (shown below) to develop a WBS. You start by adding an element that represents the entire project and numbering it zero. You also decide to add several control accounts so that you can monitor and manage costs more effectively. These control accounts include: Higher Priority Work Lower Priority Work Utilities and Services (Electrical, HVAC, and Plumbing) Wall Removals Kitchen Dining Room (DR) Family Room (FR) 1. Without otherwise modifying the WBS structure, add the control accounts listed above. 2. Complete numbering the work breakdown structure so that Microsoft Project will automatically roll up work package costs to these control accounts. NOTE: Your WBS must not violate any WBS core characteristics. 1 PMAN 650 Midterm Examination (v3) WBS No. WBS Element 0 Three-Room Renovation Electrical System Upgrade the electrical service to 200 amps Replace the electrical panel Rerun electrical circuits affected by wall removals Run four new electrical circuits to the kitchen area HVAC Install new furnace and air conditioning units Rerun heating and ventilation ducts affected by wall removals Install ventilation duct for new kitchen range hood Install ventilation duct for new kitchen microwave Plumbing Systems Install larger diameter water pipe from water meter to the house Install tank-less hot water heater Rerun water pipes affected by wall removals Rerun vent pipes affected by wall removals Install water supply pipe for refrigerator ice maker Wall 1 Removal - Between Kitchen and Dining Room Demolish existing wall 1 Install new beam 1 to accept existing structural loads Repair ceiling in way of the new beam 1 Wall 2 Removal - Between Dining Room and Family Room Demolish existing wall 2 Install new beam 2 to accept existing structural loads Repair ceiling in way of the new beam 2 Flooring Install new laminate flooring in the kitchen, dining room, and family room Kitchen Window (Over Sink) Remove existing window over the sink Install new energy efficient window over the sink Replace/repair drywall as necessary around the kitchen window Install kitchen window trim Kitchen Lighting Replace existing can lights Install new pendant lights over the island Kitchen Cabinets, Island, and Countertops Kitchen Cabinets Install upper cabinets Install lower cabinets Install cabinet hardware Kitchen Island Install island Install island hardware Kitchen Countertops Install cabinet countertops 2 PMAN 650 Midterm Examination (v3) Install island countertop Kitchen Painting Repair any remaining drywall defects in the kitchen Paint the kitchen Kitchen Appliances Install range top Install oven Install microwave Install refrigerator Install dishwasher DR Window Remove existing DR window Install new energy efficient DR window Replace/repair drywall as necessary round the DR window Install DR window trim DR Lighting Install new DR chandelier DR Painting Repair any remaining drywall defects in the DR Paint the DR FR Windows Remove three existing FR windows Install three new energy efficient FR windows Replace/repair drywall as necessary around FR windows Install FR window trim FR Sliding Door Remove existing FR sliding door Reframe as necessary for new French door Install new energy efficient French door Replace/repair drywall as necessary around the door Install door trim FR Painting Repair any remaining drywall defects in the FR Paint the FR Other Related WBS Questions (Value: 9 points): 3. With respect to the WBS numbering system, which of the following statements is true? A. The numbering system is a unique identifier known as the code of accounts, which is used to track the costs of the WBS elements. B. The numbering system is a unique identifier known as the code of accounts, which is used to track time and resource assignments for individual work elements. C. The numbering system is a unique identifier known as the WBS dictionary, which is used to assign quality control codes to the individual work elements. 3 PMAN 650 Midterm Examination (v3) D. The numbering system is a unique identifier known as the WBS dictionary, which is used to track the descriptions of individual work elements. 4. Which WBS elements should ultimately be assigned resources, durations, and logical relationships? A. All WBS elements B. All work packages C. All elements at the X.X level, (e.g., 1.1, 1.2, etc.) D. All elements at the X.X.X level (e.g., 2.1.1, 2.1.2, etc.) E. All elements at the X.X.X.X level (e.g. 1.1.1.1, 1.1.2.1, etc.) 5. All of the following statements are true all of the time except: A. A WBS is created using a technique called decomposition. B. Decomposition divides products/outcomes into smaller components until the work package level is reached. C. Products/outcomes are always listed at the top level of the WBS. D. Decomposition requires a degree of expert judgment and also requires a close analysis of the project scope statement. Scenario: (Value: 10 points) You have been asked to lead a discussion group on project monitoring/controlling activities within your organization. You consult the PMBOK and find that it indicates the monitoring and controlling process group \"...consists of those processes required to track, review, and orchestrate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes\". The process group also involves: (1) \"controlling changes and recommending corrective or preventive action in anticipation of possible problems\"; (2) monitoring the ongoing project activities against the project management plan and the project performance baseline\"; and (3) influencing the factors that could circumvent integrated change control and configuration management so only approved changes are implemented\" (page 57). 6. Your boss asks you to describe five organizational management practices that could adversely impact the organization's ability to monitor/control project performance and explain how the impact occurs. Other Related Questions: (Value: 15 points) 7. Describe the triple constraint and explain how it impacts project cost management. The triple constraints are schedule, cost, and scope. The Triple Constraint displays the attributes that must be effectively handles for a successful completion and closed project. They are related. Time - actual time required to produce a deliverable. Costs- amount of money estimated to complete the project. Scope- elements that once completed make up the end project deliverable. View it as a triangle. Once cannot adjuct one side without it affecting the 4 PMAN 650 Midterm Examination (v3) others. If something in scope or time changes, then the cost will be affected, as a result. Therefore, PMs should understand what will be changed in costs if X, Y, Z were to happen ahead of time. 8. Which of the following is displayed as an S-curve? A. Funding requirements. B. Cost estimates. C. Expenditures to date. D. Cost baseline. 9. With respect to the process for developing a cost baseline, all of the following statements are true except: A. This process assigns cost estimates for expected future operating costs. B. The cost baseline is the time-phased budget at completion for the project. C. This process aggregates the estimated costs of project activities. D. The cost baseline will be used to measure variances and future project performance. 10. Which of the following might require re-baselining of the cost baseline? A. Revised cost estimates B. Budget updates C. Corrective action D. Updates to the cost management plan 11. What is the difference between the cost baseline and the performance measurement baseline? A cost baseline is a time-phased budget that will monitor and measure cost performance throughout project life cycle. It includes a budget contingency to accommodate the risk of incurring unidentifiable but normally occurring costs within the defined scope, and varies from project to project, depending on each project's unique budget and schedule. The Performance Measurement Baseline (PMB) is the time-phased budget plan against which contract performance is measured. It formed by the budget assigned to scheduled cost account. It equals the total allocated budget minus management reserve. The cost performance baseline is also known as a performance measurement baseline (PMB). Scenario: (Value: 21 points) You've volunteered to make bird houses, at your own expense and on your own time, to be offered for sale at your daughter's high school fair to raise money for new sports equipment. You have three different designs in mind. You estimate the first design will require about $5 in material cost and about two hours of work. The second design is a little more elaborate and will require about $10 in material cost and three hours of work. The last design, more elaborate yet, will require about $15 in material cost and four and a half hours of work. There are about 5 weeks remaining until the school fair. You figure you can safely work an average of between 35 and 40 hours per week (week day nights and weekends) and you only have $600 available to complete the project. After doing some expected value calculations, you conclude the best product mix 5 PMAN 650 Midterm Examination (v3) is 25 birdhouses using the first design, 20 birdhouses using the second design, and 15 birdhouses using the third design. You develop a construction plan as follows: For the work completed in week 1, you've spent $120. For the work completed in week 2, you've spent $130. 12. Calculate the planned budget for each week of the project and for the total project. Week First Second Third Project Costs 1 7 4 2 105 2 4 4 3 105 3 7 3 3 110 4 4 4 4 120 5 3 5 3 110 Total 25 20 15 550 13. At the end of week 2, you look at your actual progress and find the following: Calculate Earned Value (EV) for the first two weeks of the project and the project to-date. Week EV 1 96.92 2 96.25 14. Is the project ahead of schedule, on schedule, or behind schedule? What EVM information are you using to make this assessment and why? The project is ahead of schedule. SV is positive. 15. Is the project over budget, under budget, or on budget? What EVM information are you using to make this assessment and why? 6 PMAN 650 Midterm Examination (v3) The project is over budget. Cv is negative. 16. Assuming you continue working as you are without making any changes to your processes or materials, what is the forecast of total project cost? Will you exceed your total available funds? 17. Assuming you continue working as you are without making any changes to your processes or materials, what is the Variance at Completion (VAC)? 18. At the end of week 3 you discover you that SV is still positive but SPI is 0.95. What does this mean? A positive SV means that the project is earning more value than planned and ahead of schedule, but a SPI less than 1 means that the schedule is not progressing as quickly as planned. The project could be close to being behind schedule soon. Other Related EVM Questions: (Value: 24 points) 19. A negative result from a Cost Variance (CV) calculation means which of the following: A. AC is higher than EV. B. PV = 1. C. EV is higher than AC. D. EV is higher than PV. 20. Your project has an activity with a budget of $1,000 and a fixed formula 40/60 earned value (EV) accrual rule. The activity has started as of your EVM analysis date but is not yet complete. What is EV as of the analysis date? 40/60 earned value accrual rule means 40% of EV when the activity starts and 60% of EV when the activity ends. Earned Value is 40% of $1000 ($400) as of the analysis date which is the activity start date. 21. 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? Percent complete refers to 100% of the budget is earned at once and when the work is actually completed. Percent complete with gates is subjective and uses estimated percent complete along with tangible monitoring points. The advantage of such is that it requires actual milestones and allows credit against those milestones. It also helps to break out long duration projects into short, discrete work packages. 22. Under what conditions would the \"Cumulative CPI X SPI\" Estimate at Completion (EAC) formula provide a value numerically less than the \"Mathematical\" or \"Overrun to Date\" EAC formula? This would occur if something unexpected happed and it has to be accounted for, but the rest of the project performance would remain the same; unfavorable cost performance. 23. How does earned value management give a clearer picture of project schedule and cost status than a simple plan versus actual system? 7 PMAN 650 Midterm Examination (v3) Earned value measure that work was accomplished for the money spent. It gives a clearer picture project schedule and cost status than a simple plan versus actual system because the earned value system includes the time variable in measuring progress. The pan versus actual system has the potential to lead to false conclusions. 24. 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? CV is the difference between the earned value or work performed and the actual cost. It states the earned value of work performed for each dollar's worth of work scheduled. CPI measures the value of woek performed against the actual cost. The CV is useful in measuring overall project performance. CPI is useful for showing the efficient of the utilization of resources. 25. What is a cost account? How is it used? It refers to the method of measuring and reporting the use of costs on a project. Project costs are measured so that planned expenses can be compared to the budget, and the available funds can be evaluated as to whether they are too much or too little with respect to the work packages that have been completed. Cost accounts incorporate components such as cost, risks, schedule, etc. It relates to a specific work package component from the WBS where assignments have been made. It permits reporting to be done at the lower level such as the WBS and allows for comparison for other budgets, such as current or historical. 26. What are Level of Effort (LOE) work packages? How are EVM analysis results affected by LOE work packages? What can be done to reduce or eliminate the distortion introduced by LOE work packages? LOE work packages are support work packages that are not directly associated with the final project product, but support other work activities that are. Its duration is based on the discrete work activity it is supporting. It is time based, not performance based. With LOE packages, EV is always equal to PV. EVM can be affected by LOW work packages if they exceed 5-10% of the total budget, therefore they should be kept lower than 5%. One could (a) convert LOE work packages to subjectively measured work packages or (b) quarantine LOE work packages outside the performance measurement baseline in order to reduce or eliminate distortion. 8 WBS WBS Element 0 Three-Room Renovation Electrical System Upgrade the electrical service to 200 amps Replace the electrical panel Rerun electrical circuits affected by wall removals Run four new electrical circuits to the kitchen area HVAC Install new furnace and air conditioning units Rerun heating and ventilation ducts affected by wall removals Install ventilation duct for new kitchen range hood Install ventilation duct for new kitchen microwave Plumbing Systems Install larger diameter water pipe from water meter to the house Install tank-less hot water heater Rerun water pipes affected by wall removals Rerun vent pipes affected by wall removals Install water supply pipe for refrigerator ice maker Wall 1 Removal - Between Kitchen and Dining Room Demolish existing wall 1 Install new beam 1 to accept existing structural loads Repair ceiling in way of the new beam 1 Wall 2 Removal - Between Dining Room and Family Room Demolish existing wall 2 Install new beam 2 to accept existing structural loads Repair ceiling in way of the new beam 2 Flooring Install new laminate flooring in the kitchen, dining room, and family room Kitchen Window (Over Sink) Remove existing window over the sink Install new energy efficient window over the sink Replace/repair drywall as necessary around the kitchen window Install kitchen window trim Kitchen Lighting Replace existing can lights Install new pendant lights over the island Kitchen Cabinets, Island, and Countertops Kitchen Cabinets Install upper cabinets Install lower cabinets Install cabinet hardware Kitchen Island Install island Install island hardware Kitchen Countertops Install cabinet countertops Install island countertop Kitchen Painting Repair any remaining drywall defects in the kitchen Paint the kitchen Kitchen Appliances Install range top Install oven Install microwave Install refrigerator Install dishwasher DR Window Remove existing DR window Install new energy efficient DR window Replace/repair drywall as necessary round the DR window Install DR window trim DR Lighting Install new DR chandelier DR Painting Repair any remaining drywall defects in the DR Paint the DR FR Windows Remove three existing FR windows Install three new energy efficient FR windows Replace/repair drywall as necessary around FR windows Install FR window trim FR Sliding Door Remove existing FR sliding door Reframe as necessary for new French door Install new energy efficient French door Replace/repair drywall as necessary around the door Install door trim FR Painting Repair any remaining drywall defects in the FR Paint the FR