Formulae used in the project management

This post has few formulae used in the project management. These are useful to get the real-time problems solved quickly.


Planned Value (PV) = Planned % complete * budget at completion(EIAC).

PERT formula is Estimate = (Optimistic +(Most Likely*4)+Pessimistic)/6

The formula for the number of channels is n*(n-1)/2, where n is is the number of stakeholders.

PMP Question and Answers 31-40

31. While having lunch with another project manager, he tells you that he underestimated the number of staff resources needed for his project by nearly 50%, but says he has plenty of reserves to cover the costs. During the next staff meeting, the same project manager says he has nothing new to report for his project and that all is progressing according to schedule. What do you do?
A. Double check your own resource estimates.
B. File a complaint with PMI.
C. Do nothing
D. Report this to the appropriate management
Answer: D, You must report this to the appropriate management. The other project manager has failed to follow proper project processes in failing to report this estimation error. Project managers are required to report errors and omission made by themselves or others, as per the PMI Code of Ethics and Professional Conduct.

32. The Control Procurements process ensures that the seller's performance meets contractual requirements and that the buyer performs according to the terms of the contract. This process is part of which process group?
A. Executing
B. Closure
C. Planning
D. Monitoring & Controlling
Answer: D, Control Procurements is part of the Monitoring and Controlling Process Group and is necessary for managing the contract and relationship between the buyer and seller.

33. One of the configuration management activities in the project involved capturing, storing and reporting configuration information needed to manage products and product information. This is known as:
A. Configuration status accounting
B. Configuration auditing
C. Configuration verification
D. Configuration identification
Answer: A, Configuration Status Accounting

34. The paint on the exotic cars that are manufactured in your plant is bubbling after about a year of application. What would be the BEST tool for your team to use to find potential causes of the peeling paint?
A. Defect Repair Review
B. Ishikawa Diagram
C. Control Chart
D. Inspection
Answer: B, All the choices are tools/techniques in quality control, however, the BEST choice would be the Ishikawa or Cause and Effect diagram.

35. You are assigned to prepare the Procurement management Plan for a project that involves setting up an org-wide supply chain management system. You are looking for a guideline on what type of contracts you can use and what type of contract forms are to be used for this project. Which source will help you obtain this?
A. Each project is unique so you will need to prepare the necessary documentation for this.
B. Department process repository
C. Organizational Process Assets
D. Integrated project plan
Answer: C, Organizational process assets provide existing formal and informal procurement-related policies, procedures, guidelines, and management systems that are considered in developing the procurement management plan and selecting the contract type to be used.

36. You are in charge of constructing the Ferris wheel in each town a carnival visits. However, this is something you have never done before and you are getting different opinions from others on how long it takes. Joe is new and has given you what you believe to be an optimistic estimate of 3 hours, Bill says it will take 10 hours, which seems too long to you and quite pessimistic. Lastly, Margie, who is the most experienced at this task is telling you it will take 8 hours. You are not sure who to believe, so you decide to do a PERT estimation, based on this you have determined it will take how many hours to assemble the Ferris wheel.
A. 7.5 hours
B. 8 hours
C. 21 hours
D. 7 hours
Answer: A, The PERT formula is Estimate = (Optimistic +(Most Likely*4)+Pessimistic)/6

37. You just found out that a major subcontractor for your project consistently provides deliverables late. The subcontractor approaches you and asks you to continue accepting late deliverables in exchange for a decrease in project costs. This offer is an example of:
A. Forcing
B. Smoothing
C. Confronting
D. Compromise
Answer: D, Both parties are giving up something, this is an example of Compromise.

38. You have your project team members record the time they spend on different activities during the day such as programming, electrical, HVAC, etc. This is an example of a tool and technique in what process?
A. Manage Communications
B. Direct and Manage Project Work
C. Monitor and Control Project Work
D. Manage Project Team
Answer: C, The Monitor and Control Project Work process tracks and reviews the project's progress.


39. A tool that provides a visual representation of human resource allocation to a project, number of working hours and availability on the project is a:
A. Resource Histogram
B. Staff release plan
C. Resource Breakdown Structure(RBS)
D. Organization Breakdown Structure(OBS)
Answer: A, Resource Histogram, this bar chart illustrates the number of hours that a project, department or entire project team will be needed each week or month over the course of the project. The chart can include a horizontal line that represents the maximum number of hours available for a particular resource. Bars that extend beyond the maximum available hours indicate the need for a resource leveling strategy.

40. Three strategies that typically deal with negative risks or threats are:
A. Enhance, Share and Accept
B. Transfer, Exploit and Accept
C. Avoid, Transfer and Exploit
D. Avoid, Transfer and Mitigate
Answer: D, Four negative risk management strategies are: Avoid, Transfer, Mitigate and Accept.

PMP Question and Answers 21-30

21. The Manage Project Team process is part of what process group?
A. Planning
B. Executing
C. Monitoring and Controlling
D. Closing
Answer: B, The Manage Project Team process is part of the Executing process group

22. You have been assigned a project where you are responsible for building a condo complex in a resort town. The project is expected to take 2 years to complete. During your work breakdown structure meeting you have decomposed many deliverables into work packages and schedule activities, however, there are some work packages that will be occurring a year from now, so you have elected not to decompose those deliverables and work packages at this time. This is an example of what tool and/or technique?
A. Scope Creep
B. Poor Planning
C. Rolling Wave Planning
D. Time Delayed Decomposition
Answer: C, The correct answer is rolling wave planning. Rolling Wave Planning is a form of progressive elaboration and is used when the project management team does not have enough information for a phase or deliverable that will occur quite a long way into the future.

23. You are analyzing the risk in a project and decide to do a sensitivity analysis to determine which risks have the most potential impact on the project. You look at a tool to help compare the relative importance of variables that have a high degree of uncertainty to those that are more stable. One such tool is,
A. Beta Distribution
B. S-Curve
C. Control Chart
D. Tornado Diagram
Answer: D, A Tornado diagram is useful for comparing the relative importance of variables that have a high degree of uncertainty to those that are more stable.

24. You the project manager responsible for building a 100,000 sq.ft. data center. One of the scheduled activities in your plan is to install the Computer Room Air Conditioning(CRAC) units, however in order to start the installation of the units the raised floor in the data center must be completely installed first, so the units have something to be bolted on to. This is an example of what type of dependency?
A. External
B. Optional
C. Discretionary
D. Mandatory
Answer: D, This is an example of a mandatory dependency since the units will be bolted to the raised floor.

25. Daniel is managing the development of an e-commerce website for his organization. Daniel enjoys coercive powers and has assigned Julie, a project team member, to facilitate the team meetings. During any team meeting, Julie must?
A. Influence team members to support the project manager's decisions
B. Support the team members to challenge the project manager's decisions
C. Negotiate with team members to achieve the project objectives
D. Remain neutral and facilitate the meetings
Answer: D, Since the project manager enjoys coercive powers, it seems likely that he has assigned a neutral facilitator to facilitate the team meetings. Facilitation is a management skill. A good facilitator should always remain neutral in a meeting and help facilitate consensus when required.

26.Which of the following is not an example of a procurement document?
A. Tender Notice
B. Risk Register
C. Request for Proposal(RFP)
D. Invitation for Negotiation
Answer: B, The risk register is not a procurement document. Procurement documents are used to seek proposals from prospective sellers. Examples are Invitation for bid, Request for proposal, Request for Quotation, tender notice, Invitation for Negotiation and contractor initial response.

27. Alan is the project manager of a project with 6 stakeholders. If the number of stakeholders goes up to 8, how many additional channels does he have to manage?
A. 2
B. 14
C. 13
D. 28
Answer: C, Formula for the number of channels is n*(n-1)/2, where n is the number of stakeholders. Therefore in the present situation, the no. of channels are 6*(6-1)/2 = 15
In the new situation, where the no.of stakeholders are 8, the no.of channels are 8*(8-1)/2 = 28. Hence the additional number of channels to manage is = 28-15 = 13.

28. A co-worker mentions that another project manager regularly takes certain project resources to expensive dinners and expenses it to the company. However, this project manager does not recognize or reward the contributions of any other project resources. What should you do?
A. Do nothing.
B. Confront the project manager.
C. Implement a formal reward and recognition program on your own project.
D. Report this to the appropriate management.

Answer: D, The rules of the organization must be applied without favoritism or discrimination. Rewarding only certain project resources and ignoring others is unfair and unprofessional. The code of ethics and professional behavior not only prohibit this behavior, but it also requires that project managers report violations by other project managers to the appropriate management.

29. When a project is performed under the contract, the contractual provisions will generally be considered as ______________ for the project.
A. Constraints
B. Exclusions
C. Deliverables
D. Provisions
Answer: A, When a project is performed under the contract, the contractual provisions are generally considered as constraints for the project as they are the limiting factors.

30. During a work breakdown structure meeting, you have decomposed the deliverables into work packages and created your WBS dictionary. However, you now want to decompose the work packages to assist you in estimating, executing and control the project. These decomposed work packages are called?
A. Work Packages can't be decomposed into smaller units
B. Activities
C. Milestones
D. Control Accounts
Answer: B, Activities represent the effort needed to complete a work package and are an output of the Define Activities process. During this process, the work packages are further decomposed into project activities.