Jack works as a project manager for the NHQ project. His project has a budget of $2,208,456 and
is scheduled to last for three years. His project is currently forty percent complete though it should
be forty-five percent complete. In order to reach this point of the project, he has spent $725,000.
Management needs a performance report regarding the NHQ project. Management is concerned
that this project will be over budget upon completion. Management would like to create a report
telling them how much more the project will need to complete. What value should Jack tell the
management?
A.
$1,087,497.74
The critical path will now take 26 days.
B.
$755,000.56
The critical path will now take 17 days.
C.
$1,112,978.45
The EAC is BAC/CPI.
QUESTION 113
You are the project manager of the NHG. The following figure represents your project network
diagram.
Management has asked that you add some features to the project scope. Through the change
control system these changes are approved and they’ll affect Activity I. The duration of Activity I,
which is on the critical path, will decrease by three days. What affect does this have on the critical
path?
The critical path will now take 23 days.
D.
$790,988.76
The critical path will now take 20 days.
C.
$1,112,978.45
The EAC is BAC/CPI.
QUESTION 113
You are the project manager of the NHG. The following figure represents your project network
diagram.
Management has asked that you add some features to the project scope. Through the change
control system these changes are approved and they’ll affect Activity I. The duration of Activity I,
which is on the critical path, will decrease by three days. What affect does this have on the critical
path?
The critical path will now take 23 days.
A.
$1,087,497.74
The critical path will now take 26 days.
B.
$755,000.56
The critical path will now take 17 days.
C.
$1,112,978.45
The EAC is BAC/CPI.
QUESTION 113
You are the project manager of the NHG. The following figure represents your project network
diagram.
Management has asked that you add some features to the project scope. Through the change
control system these changes are approved and they’ll affect Activity I. The duration of Activity I,
which is on the critical path, will decrease by three days. What affect does this have on the critical
path?
The critical path will now take 23 days.
D.
$790,988.76
The critical path will now take 20 days.
Explanation:
The project will need $1,087,497.74 more to complete. This formula, the estimate to complete, is
estimate at completion minus the actual costs. Here,
CPI = EV/AC
= (0.40*2,208,456)/725,000
= 1.21846, and
ETC = EAC – AC
= (BAC/CPI) – AC
= (2,208,456/1.21846) – 725,000
= 1,812,497.74 – 725,000
= 1,087,497.74
The estimate to complete (ETC) is the expected cost needed to complete all the remaining work
for a scheduled activity, a group of activities, or the project. ETC helps project managers predict
what the final cost of the project will be upon completion. The formula for the ETC is EAC- AThe critical path is the path in the project network diagram with the longest duration. In project
management, a critical path is the sequence of project network 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). This project actually has two critical paths. Path ACGIJ takes
23 days. Path ACGHJ also takes 23 days. When Activity I decreases by three days the critical will
still take 23 days to complete as Path ACGHJ remains a critical path.
Answer option A is incorrect. The duration of the critical path did not increase.
Answer option D is incorrect. The duration of the path ACGIJ will decrease to 20 days but the
critical path will remain at 23 days.
Answer option B is incorrect. The critical path did not reduce to 17 days.