PMI-SP Exam Dumps - PMI Certification Questions and Answers

According to the question, you are required to calculate the cost performance index (CPI) of 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. Now, putting the provided values in the formula: CPI = EV / AC = 325 / 410 = 0.792 As the CPI 0.792 is lesser than 1, it shows that the schedule performance is below expectation. What is BCWP (or EV)? Budgeted cost of work performed (BCWP) or Earned Value (EV) is the value of completed work. It is the budgeted amount for the work actually completed on the schedule activity during a given time period. What is BCWS (or PV)? Budgeted Cost of Work Scheduled (BCWS) or Planned Value (PV) is the authorized budget assigned to the scheduled work to be accomplished for a schedule activity or Work Breakdown Structure (WBS) component. What is ACWP (or AC)? Actual cost of work performed (ACWP) or Actual Cost (AC) is the total costs actually incurred and recorded in accomplishing work performed during a given time period for a schedule activity. It is the cost of the work to date, including direct and indirect costs. AC is money that has actually been expended to date.

Apportioned effort is effort applied that you cannot subdivide into work packages, but it is related to, usually in a supportive role, to the completion of the project work packages. The project management overhead, such managing the project work, is an example of apportioned effort. Apportioned effort (AE) is the effort that is applied to the project-related work that cannot be easily and readily divided into discrete efforts for those tasks, but which is associated in a direct proportion to the discrete work efforts that are capable of being measured. The presence of apportioned effort relies particularly on the performance of further efforts.

Answer option C is incorrect. This is an example of discrete effort.

Answer option A is incorrect. This is an example of a scope change that has not been approved.

Answer option D is incorrect. This is an example of a scheduling technique.

The schedule performance index shows how well the project is performing on its schedule goals. The SPI can be found by dividing the earned value by the planned value. In this instance, it is $2,025,000 divided by $2,250,000 for .90. The closer to 1, the better the performance. Schedule performance index (SPI) is the measure of schedule efficiency on a project. It is used in trend analysis to predict future performance. SPI is the ratio of earned value to planned value. The SPI is calculated based on the following formula: SPI = Earned Value (EV) / Planned Value (PV) If the SPI value is greater than 1, it indicates better than expected performance, whereas if the value is less than 1, it shows poor performance. The SPI value of 1 indicates that the project is right on target.

Answer option B is incorrect. 0.98 is the cost performance index.

Answer option A is incorrect. 1.02 is the to-complete performance index.

Answer option D is incorrect. -$108,120 is the variance at completion based on current performance.

The cost variance for the project is -$51,000. You can find the cost variance by using the formula earned value minus planned value. In this instance, it is: CV = EV - AC = (0.60* 2,456,900) - 1,525,140 = -51,000

Answer option C is incorrect. -$85,000 is the project's variance at completion.

Answer option A is incorrect. $122,845 is the project's schedule variance.

Answer option D is incorrect. There is a cost variance on this project of -$51,000.

The last duty of a project manager is to archive the project records as part of the organizational process assets.

Answer option B is incorrect. The cost summary is included in the final project report.

Answer option C is incorrect. The project variance is included in the final project report as it shows cost performance.

Answer option D is incorrect. A project office is an organization within the company that oversees and supports project. Marty would not close the project office.

A statement of work (SOW) is a document that captures and defines the work activities, deliverables and timeline that a vendor will execute against in performance of work for a customer. Detailed requirements and pricing are usually specified in it, along with many other terms and conditions. SOW is a narrative description of products or services to be supplied by the project. For internal projects, the project initiator or sponsor provides the statement of work based on business needs, product, or service requirements. For external projects, the statement of work can be received from the customer as part of a bid document.

Answer option A is incorrect. Scope of statement gives the narrative description of the project scope.

Answer option B is incorrect. Project charter is a document that formally authorizes a project manager to work on a project.

Answer option D is incorrect. WBS is a tool that defines a project and groups the project discrete work in a way that helps organize and define the total work scope.

This is an example of three-point estimate. A three-point estimate records the optimistic, most likely, and the pessimistic duration and then records an average for the predicted duration Three-point estimate is a way to enhance the accuracy of activity duration estimates. This concept is originated with the Program Evaluation and Review Technique (PERT). PERT charts the following three estimates: Most likely (TM): The duration of activity based on realistic factors such as resources assigned, interruptions, etc. Optimistic (TO): The activity duration based on the best-case scenario Pessimistic (TP): The activity duration based on the worst-case scenario The expected (TE) activity duration is a weighted average of these three estimates: TE = (TO + 4TM + TP) / 6 Duration estimates based on the above equations (sometimes simple average of the three estimates is also used) provide more accuracy. Here, it is, TE = ( 35 + 50*4 + 95) / 6 = 330/6 = 55

The procurement SOW consists of a description of some collateral services required, such as performance reporting or post- project operational support for the procured item. The procurement SOW is revised and refined as required when it moves through the procurement process until incorporated into a signed contract award.

Resource leveling is a rule of limiting the total number of hours a project team may work during a given time period in the project. If management restricts the project work to 45 per week, as in this example, Holly's schedule will likely increase because the project team can't complete as much work in one given time period.While this may be seen as a constraint, because it limits Holly's options, it's technically called a resource leveling heuristic.

Answer option B is incorrect. It is an assumption that's believed to be true, but it hasn't been proven to be true.

Answer option C is incorrect. Execution variance analysis describes the difference between what was planned and what was executed. A better term for this experience would simply be a scope variance, scope change, or defect.

The schedule performance index can be found by dividing the earned value by the planned value. In this project, it's $447,000 divided by the $558,750 for a value of 0.80. Schedule performance index (SPI) is the measure of schedule efficiency on a project. It is used in trend analysis to predict future performance.

SPI is the ratio of earned value to planned value. The SPI is calculated based on the following formula:

SPI = Earned Value (EV) / Planned Value (PV)

If the SPI value is greater than 1, it indicates better than expected performance, whereas if the value is less than 1, it shows poor performance. The SPI value of 1 indicates that the project is right on target.

Answer option A is incorrect. "80" is not the same value as ".80".

Answer option B is incorrect. 1.02 is the cost performance index.

Answer option C is incorrect. 102 is not a valid calculation for this question.