You are the project manager of a project that has a budget of $875,000 and you have completed 40 percent of the project work. Due to some errors, however, you have actually spent $425,000 of the budget. Management wants to know what the project's cost performance index is. What value do you report?
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 it's
$350,000 divided by $425,000 for a CPI
of .82.
Answer option B is incorrect. $350,000 is the earned value of the project.
Answer option A is incorrect. -$75,000 is the cost variance for the project.
Answer option D is incorrect. -$187,500 is the predicted variance at the completion of the project.
Tom works as the project manager for Blue Well Inc. He is working with his project to ensure timely and appropriate generation, retrieval, distribution, collection, storage, and ultimate disposition of project information. What is the process in which Tom is working?
Tom is working with the project communication management process, as it is required to ensure the
timely disposition of project information. Project Communications Management is one of the nine
Knowledge Areas. It employs the processes required to ensure timely and appropriate generation,
collection, distribution, storage, retrieval, and ultimate disposition of project information. The
following processes are part of Project Communications Management:
Identify Stakeholders
Plan Communications
Distribute information
Manage Stakeholder Expectations
Report Performance
The Project Communications Management processes provide the critical links among people and
information that are necessary for successful
communications. These processes interact with each other and with the processes in the other
Knowledge Areas as well.
Answer option B is incorrect. Managing stakeholder expectation is the process of working and
communicating with the stakeholders to meet
their requirements.
Answer option A is incorrect. Work performance measurement uses the information to create
project activity metrics to evaluate actual
progress compared to planned progress.
Answer option D is incorrect. Stakeholder analysis is the process of gathering and analyzing
quantitative and qualitative information to
determine the interest of the stakeholders.
You are the project manager for your organization. Management has asked you to document the
holidays, weekends, and other corporate
working hours, which will supersede the project timings for your schedule. Which calendar will
communicate to the project stakeholders, when
the project work will take place within the organization?
You are the project manager of the GHQ Project. You have to prioritize activities for the effective management of project. For this, you have created a network diagram to schedule a set of project activities as shown in the figure:

Based on this figure, what is the critical path of this project?
The activity nodes of path ACFGJ equals 26 days and is the longest path to completion - it is the
critical path.
ACFGJ= A(4)+C(8)+F(4)+G(6)+J(4)=26
What is a critical path?
A critical path is the sequence of project activities, which add up to the longest overall duration. This
determines the
shortest time possible to complete the project. Any delay of an activity on the critical path directly
impacts the planned
project completion date (i.e. there is no float on the critical path). A project can have several,
parallel, near critical paths. An
additional parallel path through the network with the total durations shorter than the critical path is
called a sub-critical or
non-critical path.
These results allow managers to prioritize activities for the effective management of project
completion, and to shorten the
planned critical path of a project by pruning critical path activities, by 'fast tracking' (i.e., performing
more activities in
parallel), and/or by 'crashing the critical path' (i.e., shortening the durations of critical path activities
by adding resources).
Answer option A is incorrect. ABEHJ takes only 22 days to complete; it is not the critical path.
ABEHJ=A(4)+B(5)+E(2)+H(7)+J(4)=22
Answer option C is incorrect. ADGJ takes only 15 days to complete; it is not the critical path.
ADGJ=A(4)+D(1)+G(6)+J(4)=15
Answer option B is incorrect. ACFIJ takes only 23 days to complete; it is not the critical path.
ACFIJ=A(4)+C(8)+F(4)+I(3)+J(4)=23
Which of the following individuals performs various management roles within an administrative or functional area of the business, such as human resources, finance, accounting, or procurement?
The role of a functional manager is to perform various management roles within an administrative or functional area of the business, such as human resources, finance, accounting, or procurement. He is assigned his own permanent staff to carry out the ongoing work. He should have a clear directive to manage all tasks within his functional area of responsibility. Answer option D is incorrect. A project manager is an expert in the field of project management. He is responsible for the entire project from inception to completion. The project manager leads the team and helps negotiate the multiple relationships within any project whether with clients, team members, firm principals or any variety of partners and functions as the hub of a project. Answer option A is incorrect. Seller is also known as a vendor, supplier or contractor. They are external company's elements that enter into a contractual agreement to provide components or services necessary for the project. Answer option B is incorrect. The role of operations manager is to perform various management roles in a core business area, such as research and development, design, manufacturing, provisioning, testing, or maintenance. The operations manager directly deals with constructing and maintaining the saleable products or services of the enterprise.
Mary is the project manager of the H1QZ Project. This project is a subproject of the HQZ Project and the project schedule is fixed and cannot vary. Stephen, a project team member, reports that he's having trouble completing his project assignment and will likely be at least two days late. Examine the figure given below:

If Stephen's assignment is Activity B, what impact will his two days of lateness have on the project end date?
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