Winter 2015FinalBasics1. (4 points) Match each description to the project management deliverable to which it applies most.Project management deliverable Description________ Gantt chart a. Often includes milestone symbols and can serve asa progress evaluation tool________ Network diagram b. Establishes the existence of a project and definesthe projects objectives________ Project charter c. The plan against which project performance ismeasured________ Time-phased budget d. Shows the appropriate sequence andinterrelationships of activities to accomplish theoverall project work scope2. (4 points) While attending a networking event, you meet a Director-Human Resources from an organizationthat interests you. The Director asks what you are currently learning about at DePaul, and you reply that youare taking a course in project management. The Director asks, What is this Project Management Institute thatI keep hearing about? and Why should I care about the Project Management Institute? You only have 2minutes to answer. Show your answers in your own words below.a. What is the Project Management Institute?b. Why should the Director-Human Resources care about the Project Management Institute? Provide areason specific to the Directors role.p. 3 of 11 v. 002631063. (3 points) As shown below, projects are accounting for an increasing percentage of an organizations activities.Describe one business trend that is causing this. Explain clearly.Explanation:.4. (3 points) Match each description to the term to which it applies most.Term Description________ Program management a. Organization unit responsible for coordinating projectmanagement standards, processes, and systems________ Project management office b. Ensures that the allocation of resources to projects is alignedwith the strategic focus and risk tolerance of the organization________ Project portfolio management c. A group of related projects organized within a commonmanagement structurep. 4 of 11 v. 00263106Business case5. (4 points) Read about the following situation, then answer the questions that follow:A 6-month IT project has been proposed. See below for the projects financial analysis. The project sponsor isconcerned that the projects scope is too ambitious and that the project might fail. The sponsor has asked youto reduce scope. You have identified areas where scope can be cut, but you have not yet updated the financialanalysis.Describe the likely effects of your scope cuts on the following items in the financial analysisin relative terms(e.g., increase/decrease, smaller/larger, etc.), not absolute numbers. Provide support (e.g., reasons) for whatyou say. Document assumptions as necessary.a. Project durationb. Development costs (year 0 costs)c. Annual operating costsd. Annual benefitsDiscount rate 8%Assume the project is done in year 0Project duration (in months): 6 Year0 1 2 3 TotalCosts 140,000 40,000 40,000 40,000Discount factor 1.00 0.93 0.86 0.79Discounted costs 140,000 37,037 34,294 31,753 243,084Benefits 0 200,000 200,000 200,000Discount factor 1.00 0.93 0.86 0.79Discounted benefits 0 185,185 171,468 158,766 515,419Discounted benefits – costs (140,000) 148,148 137,174 127,013 272,336 NPVCumulative benefits – costs (140,000) 8,148 145,322 272,336ROI 112%Payback late in year 1p. 5 of 11 v. 002631066. (2 points) Give an example of when an organization would not rely only on financial criteria to select projects.Risk management7. (3 points) The diagram below shows that the risk management process tries to achieve a balance between twodifferent costs. Explain in your own words what these two costs are and how a project manager can try toachieve the balance.Explanation:8. (4 points) Mitigation is one of four major types of risk responses. For each IT project risk below, use your ownwords to describe a possible mitigation response:Risk Mitigation responsePoorly defined requirementsLack of qualified resourcesLack of management supportInexperienced project managerCost of ____________ Cost of __________$$ $$p. 6 of 11 v. 00263106Estimating9. (3 points) You are responsible for estimating the effort required for an upcoming software development project.You have reviewed the project requirements. This is a type of project that is new to you and you are not surehow much effort the project will require. Describe an approach you would use in this situation to estimate theproject effort.10. (3 points) Researchers have found that productivity varies with project size. Describe what happens toproductivity (increase? decrease? no change?) as project size increases, and provide one reason why ithappens.Scheduling11. (10 points) Review the information in the table.a. What is the projects original duration and critical path? Show your work.b. The sponsor would like to finish the project at least 6 weeks earlier than the original duration. You canspend up to $15,000 more than the original cost budget. Determine which activities should be crashed.Explain your choices.ActivityPredecessorOriginalDuration(weeks)CrashDuration(weeks)Original Cost($) Crash Cost ($)A None 4 2 10,000 14,000B A 6 4 30,000 38,000C A 2 1 8,000 9,500D B 2 1 12,000 18,000E B, C 7 5 40,000 43,000F D, E 8 3 20,000 32,500p. 7 of 11 v. 0026310612. (4 points) Why are lags used in developing project networks? Explain. Also, illustrate by describing a briefexample pertinent to an IT project.Project monitoring and controlling13. (20 points) The project you manage has signed a contract with a third party to conduct software testing. Thetotal expected cost or budget at completion for this testing subproject is $12,000. Testing is divided into fourphases. You are to pay the contractor their actual costs incurred after completion of each phase.The first phase of testing went as planned. The second phase experienced some problems and went overbudget. The manager in charge of testing has assured you that the few problems they encountered could notbe helped and that she does not expect them to continue in the remaining phases. As a smart project manager,you have asked the third party for metrics data on their progress. You are concerned that these problems maycontinue throughout the remaining testing activities.Using the information on the next page, conduct an earned value analysis and answer the following questionsabout the testing subproject. Show your work. Show your work. Note that the Planned Value column on thenext page represents what is planned to be earned by the end of testing. Each question below pertains to thetesting subproject overall:a. What is the current percent complete?b. What is the current cost variance?c. What is the current cost performance index?d. What is the estimate at completion, assuming the current cost variance will continue?e. What is the estimate at completion, assuming the current cost variance will NOT continue, i.e., all remainingwork will be done at the budgeted cost?p. 8 of 11 v. 00263106PlannedValueActualCostPercentCompleteEarnedValuePhase 1: Test PlanningDevelop unit test plan $ 500 $ 500 100% $ 500Develop integration test plan $ 600 $ 600 100% $ 600Develop acceptance test plan $ 550 $ 550 100% $ 550Payment 1: $ 1,650 $ 1,650 (paid) $ 1,650Phase 2: Unit TestingCode walkthroughs with team $ 600 $ 700 100% $ 600Test software units $ 800 $ 1,200 100% $ 800Identify programs that do not meet specifications $ 500 $ 500 100% $ 500Modify code $ 1,200 $ 1,300 100% $ 1,200Retest units $ 300 $ 400 100% $ 300Verify code meets standards $ 200 $ 200 100% $ 200Payment 2: $ 3,600 $ 4,300 (paid) $ 3,600Phase 3: Integration TestingTest integration of all modules $ 600 $ 600 100% $ 600Identify components that do not meet specifications $ 300 $ 500 75% $ 225Modfiy code $ 1,400 $ 1,400 50% $ 700Retest integration of modules $ 400 $ 400 75% $ 300Verify components meet standards $ 250 $ 200 80% $ 200Payment 3: $ 2,950 $ 3,100 $ 2,025Phase 4: Acceptance TestingBusiness review with client $ 400 0% $ -Client tests system $ 800 0% $ -Identify units and components that do not meet specifications $ 500 0% $ -Modify code $ 800 0% $ -Retest units and components $ 700 0% $ -Verify that system meets standards $ 600 0% $ -Payment 4: $ 3,800 $ – $ -p. 9 of 11 v. 0026310614. (5 points) Recall the project described in homework 4, problem #5:A customer hires a contractor to install and configure analytics software on five identical servers. Thecontractor will be reimbursed for labor only. Because the software is known to be difficult to configure,the contractor estimates two days per server at eight hours per day and at $125 per hour. Overtime willalso be paid, if necessary, at the same rate of $125 per hour.The first server was completed in three days because of time needed to understand how to configurethe software. The first server required a total of two hours of overtime. The second server wascompleted in two days and required no overtime.Use the 50-50 rule to determine the values for the following. Show your work.a. PVb. EVc. BACd. SVe. CVp. 10 of 11 v. 00263106Human resource management15. (2 points) Shown below is the Tuckman model of team development. This model has several implications for aproject manager. Fully explain one of these implications.Implication:16. (2 points) Describe one of the ways project managers can use the situational leadership model for the benefit ofa project. Be specific.p. 11 of 11 v. 00263106Communications management17. (4 points) Answer the following regarding lessons-learned reports.a. Describe when in a projects life cycle such a report should be created/updated. Explain fully.b. Describe when in a projects life cycle such a report should be referred to. Explain fully.Trends18. (2 points) In your own words, describe one way that agile projects have to be managed differently thantraditional projects. Be specific.19. (3 points) Your organization has asked you to recommend IT project and portfolio (PPM) software for them toadopt. Before evaluating specific software offerings, you first need to decide which type of IT PPM software isappropriate for your organization:? Cloud-based IT PPM services? IT PPM software products deployed as dedicated instances, either on-site or off-siteIdentify and briefly describe in your own words three organizational requirements that (according to Gartner)would make it more appropriate for you to focus on evaluating IT PPM software products deployed as dedicatedinstances, either on-site or off-site (rather than cloud-based IT PPM services).Winter 2015FinalBasics1. (4 points) Match each description to the project management deliverable to which it applies most.Project management deliverable Description________ Gantt chart a. Often includes milestone symbols and can serve asa progress evaluation tool________ Network diagram b. Establishes the existence of a project and definesthe projects objectives________ Project charter c. The plan against which project performance ismeasured________ Time-phased budget d. Shows the appropriate sequence andinterrelationships of activities to accomplish theoverall project work scope2. (4 points) While attending a networking event, you meet a Director-Human Resources from an organizationthat interests you. The Director asks what you are currently learning about at DePaul, and you reply that youare taking a course in project management. The Director asks, What is this Project Management Institute thatI keep hearing about? and Why should I care about the Project Management Institute? You only have 2minutes to answer. Show your answers in your own words below.a. What is the Project Management Institute?b. Why should the Director-Human Resources care about the Project Management Institute? Provide areason specific to the Directors role.p. 3 of 11 v. 002631063. (3 points) As shown below, projects are accounting for an increasing percentage of an organizations activities.Describe one business trend that is causing this. Explain clearly.Explanation:.4. (3 points) Match each description to the term to which it applies most.Term Description________ Program management a. Organization unit responsible for coordinating projectmanagement standards, processes, and systems________ Project management office b. Ensures that the allocation of resources to projects is alignedwith the strategic focus and risk tolerance of the organization________ Project portfolio management c. A group of related projects organized within a commonmanagement structurep. 4 of 11 v. 00263106Business case5. (4 points) Read about the following situation, then answer the questions that follow:A 6-month IT project has been proposed. See below for the projects financial analysis. The project sponsor isconcerned that the projects scope is too ambitious and that the project might fail. The sponsor has asked youto reduce scope. You have identified areas where scope can be cut, but you have not yet updated the financialanalysis.Describe the likely effects of your scope cuts on the following items in the financial analysisin relative terms(e.g., increase/decrease, smaller/larger, etc.), not absolute numbers. Provide support (e.g., reasons) for whatyou say. Document assumptions as necessary.a. Project durationb. Development costs (year 0 costs)c. Annual operating costsd. Annual benefitsDiscount rate 8%Assume the project is done in year 0Project duration (in months): 6 Year0 1 2 3 TotalCosts 140,000 40,000 40,000 40,000Discount factor 1.00 0.93 0.86 0.79Discounted costs 140,000 37,037 34,294 31,753 243,084Benefits 0 200,000 200,000 200,000Discount factor 1.00 0.93 0.86 0.79Discounted benefits 0 185,185 171,468 158,766 515,419Discounted benefits – costs (140,000) 148,148 137,174 127,013 272,336 NPVCumulative benefits – costs (140,000) 8,148 145,322 272,336ROI 112%Payback late in year 1p. 5 of 11 v. 002631066. (2 points) Give an example of when an organization would not rely only on financial criteria to select projects.Risk management7. (3 points) The diagram below shows that the risk management process tries to achieve a balance between twodifferent costs. Explain in your own words what these two costs are and how a project manager can try toachieve the balance.Explanation:8. (4 points) Mitigation is one of four major types of risk responses. For each IT project risk below, use your ownwords to describe a possible mitigation response:Risk Mitigation responsePoorly defined requirementsLack of qualified resourcesLack of management supportInexperienced project managerCost of ____________ Cost of __________$$ $$p. 6 of 11 v. 00263106Estimating9. (3 points) You are responsible for estimating the effort required for an upcoming software development project.You have reviewed the project requirements. This is a type of project that is new to you and you are not surehow much effort the project will require. Describe an approach you would use in this situation to estimate theproject effort.10. (3 points) Researchers have found that productivity varies with project size. Describe what happens toproductivity (increase? decrease? no change?) as project size increases, and provide one reason why ithappens.Scheduling11. (10 points) Review the information in the table.a. What is the projects original duration and critical path? Show your work.b. The sponsor would like to finish the project at least 6 weeks earlier than the original duration. You canspend up to $15,000 more than the original cost budget. Determine which activities should be crashed.Explain your choices.ActivityPredecessorOriginalDuration(weeks)CrashDuration(weeks)Original Cost($) Crash Cost ($)A None 4 2 10,000 14,000B A 6 4 30,000 38,000C A 2 1 8,000 9,500D B 2 1 12,000 18,000E B, C 7 5 40,000 43,000F D, E 8 3 20,000 32,500p. 7 of 11 v. 0026310612. (4 points) Why are lags used in developing project networks? Explain. Also, illustrate by describing a briefexample pertinent to an IT project.Project monitoring and controlling13. (20 points) The project you manage has signed a contract with a third party to conduct software testing. Thetotal expected cost or budget at completion for this testing subproject is $12,000. Testing is divided into fourphases. You are to pay the contractor their actual costs incurred after completion of each phase.The first phase of testing went as planned. The second phase experienced some problems and went overbudget. The manager in charge of testing has assured you that the few problems they encountered could notbe helped and that she does not expect them to continue in the remaining phases. As a smart project manager,you have asked the third party for metrics data on their progress. You are concerned that these problems maycontinue throughout the remaining testing activities.Using the information on the next page, conduct an earned value analysis and answer the following questionsabout the testing subproject. Show your work. Show your work. Note that the Planned Value column on thenext page represents what is planned to be earned by the end of testing. Each question below pertains to thetesting subproject overall:a. What is the current percent complete?b. What is the current cost variance?c. What is the current cost performance index?d. What is the estimate at completion, assuming the current cost variance will continue?e. What is the estimate at completion, assuming the current cost variance will NOT continue, i.e., all remainingwork will be done at the budgeted cost?p. 8 of 11 v. 00263106PlannedValueActualCostPercentCompleteEarnedValuePhase 1: Test PlanningDevelop unit test plan $ 500 $ 500 100% $ 500Develop integration test plan $ 600 $ 600 100% $ 600Develop acceptance test plan $ 550 $ 550 100% $ 550Payment 1: $ 1,650 $ 1,650 (paid) $ 1,650Phase 2: Unit TestingCode walkthroughs with team $ 600 $ 700 100% $ 600Test software units $ 800 $ 1,200 100% $ 800Identify programs that do not meet specifications $ 500 $ 500 100% $ 500Modify code $ 1,200 $ 1,300 100% $ 1,200Retest units $ 300 $ 400 100% $ 300Verify code meets standards $ 200 $ 200 100% $ 200Payment 2: $ 3,600 $ 4,300 (paid) $ 3,600Phase 3: Integration TestingTest integration of all modules $ 600 $ 600 100% $ 600Identify components that do not meet specifications $ 300 $ 500 75% $ 225Modfiy code $ 1,400 $ 1,400 50% $ 700Retest integration of modules $ 400 $ 400 75% $ 300Verify components meet standards $ 250 $ 200 80% $ 200Payment 3: $ 2,950 $ 3,100 $ 2,025Phase 4: Acceptance TestingBusiness review with client $ 400 0% $ -Client tests system $ 800 0% $ -Identify units and components that do not meet specifications $ 500 0% $ -Modify code $ 800 0% $ -Retest units and components $ 700 0% $ -Verify that system meets standards $ 600 0% $ -Payment 4: $ 3,800 $ – $ -p. 9 of 11 v. 0026310614. (5 points) Recall the project described in homework 4, problem #5:A customer hires a contractor to install and configure analytics software on five identical servers. Thecontractor will be reimbursed for labor only. Because the software is known to be difficult to configure,the contractor estimates two days per server at eight hours per day and at $125 per hour. Overtime willalso be paid, if necessary, at the same rate of $125 per hour.The first server was completed in three days because of time needed to understand how to configurethe software. The first server required a total of two hours of overtime. The second server wascompleted in two days and required no overtime.Use the 50-50 rule to determine the values for the following. Show your work.a. PVb. EVc. BACd. SVe. CVp. 10 of 11 v. 00263106Human resource management15. (2 points) Shown below is the Tuckman model of team development. This model has several implications for aproject manager. Fully explain one of these implications.Implication:16. (2 points) Describe one of the ways project managers can use the situational leadership model for the benefit ofa project. Be specific.p. 11 of 11 v. 00263106Communications management17. (4 points) Answer the following regarding lessons-learned reports.a. Describe when in a projects life cycle such a report should be created/updated. Explain fully.b. Describe when in a projects life cycle such a report should be referred to. Explain fully.Trends18. (2 points) In your own words, describe one way that agile projects have to be managed differently thantraditional projects. Be specific.19. (3 points) Your organization has asked you to recommend IT project and portfolio (PPM) software for them toadopt. Before evaluating specific software offerings, you first need to decide which type of IT PPM software isappropriate for your organization:? Cloud-based IT PPM services? IT PPM software products deployed as dedicated instances, either on-site or off-siteIdentify and briefly describe in your own words three organizational requirements that (according to Gartner)would make it more appropriate for you to focus on evaluating IT PPM software products deployed as dedicatedinstances, either on-site or off-site (rather than cloud-based IT PPM services).