Week 6 Summary Review Questions

1. What does earned value (EV) measure?

EV means Earned value. It is a measuring system that includes features such as actual cost (AC), earned value (EV) and planned value (PV) and is used to track the project’s progress as far as scope, time, and cost is concerned.

2. True or False? A plan can succeed without accurate information.

False

3. What items should the project leader look for in status and variance reports?

Many organizations have their own project status and variance report templates which are used to track a project’s periodic (daily, weekly, monthly) progress.

4. True or False? Status and variance reports tend to be reactive in nature.

True

5. True or False? If a great deal of money and effort has been expended a project should never be discontinued.

False

6. Describe the potential issues associated with a time or cost overrun.

The various business, project, and interpersonal issues for a time or cost overrun are as:

• Business issues for a time or cost overrun
– Failure to meet return on investment criteria
– Non-financial benefits losing attention

• Project issues for a time or cost overrun
– Need to identify cost drivers
– Use of less costly resources

• Interpersonal issues for a time or cost overrun
– Need to negotiate with customer or sponsor
– Need to gain input and alternatives from project team members
– Tendency to blame and scapegoat rather than solve the problem

7. The planning process requires the redefinition and re-establishment or project specifications and performance needs as work progresses.

8. True or False? Project management is an iterative process.

True

9. Describe the root causes of project slippage.

• Miscommunication—For example, an employee’s misperception of what’s expected.

• Substandard ability—Substandard ability to perform