PMI-SP PMI Scheduling Professional Questions and Answers

Schedule variance (SV) is a measure of schedule performance on a project. The variance notifies that the schedule is ahead or behind what was planned for this period in time. The schedule variance is calculated based on the following formula: SV = Earned Value (EV) - Planned Value (PV) If the resulting schedule is negative, it indicates that the project is behind schedule. A value greater than 0 shows that the project is ahead of the planned schedule. A value of 0 indicates that the project is right on target. The earned value in this instance is forty percent of the project budget, $778,000, and the planned value is $398,000 because George is to be fifty percent done at the end of the second quarter, as the work is spread evenly across all quarters. The schedule variance is -$77,800 for the project.

Answer option A is incorrect. .96 represents the cost performance index.

Answer option C is incorrect. -$34,500 represents the project's variance at completion if the project continues as is.

Answer option D is incorrect. -$13,800 is the cost variance for the project.

A milestone is simply a significant point or event in the project. It does not have to be assigned to a specific date, but is usually assigned to the completion of project phases. A milestone is the end of a stage that marks the completion of a work package or phase, typically marked by a high level event such as completion, endorsement or signing of a deliverable, document or a high level review meeting. In addition to signaling the completion of a key deliverable, a milestone may also signify an important decision or the derivation of a critical piece of information, which outlines or affects the future of a project. In this sense, a milestone not only signifies distance traveled (key stages in a project) but also indicates direction of travel since key decisions made at milestones may alter the route through the project plan. To create a milestone, enter 0 (zero) in the Duration field. The task will automatically be classified as a milestone.

Answer option C is incorrect. This is a project constraint.

Answer option B is incorrect. A project goal is an objective for time, cost, scope, and other metrics.

Answer option D is incorrect. All activities must be completed in order to complete the project work. Activities that are not completed are quality issues that prevent the project from completing the project scope.

According to the PMBOK, Gina will not need the WBS directly, but will rely on the scope baseline. A Work Breakdown Structure (WBS) in project management is a tool that defines a project and groups the project's discrete work elements in a way that helps organize and define the total work scope of the project. A WBS element may be a product, data, a service, or any combination. WBS also provides the necessary framework for detailed cost estimating and control along with providing guidance for schedule development and control.

Answer option A is incorrect. The scope baseline is an input to define the project activities.

Answer option D is incorrect. Enterprise environmental factors are an input to define the project activities.

Answer option B is incorrect. Organizational process assets are an input to define the project activities.

Corrective actions should be taken to move the results of the project work back into alignment with the project scope. The project team must start their activities on time and finish on time. A corrective action is a change implemented to address a weakness identified in a management system. Normally corrective actions are implemented in response to a customer complaint, abnormal levels of internal nonconformity, nonconformities identified during an internal audit or adverse or unstable trends in product and process monitoring such as would be identified by SP

C. It is method of identifying and eliminating the causes of a problem, thus preventing their reappearance. Examples of a corrective action are :Improvements to maintenance schedulesImprovements to material handling or storage

Answer option C is incorrect. Management reserve is time and funds allotted for unforeseen issues and risks within the project.

Answer option A is incorrect. Padding each estimate may cause the project to succumb to Parkinson's Law: work expands to fill the amount of time allotted to it. In addition, the project team may still delay the start time of their project assignments.

Answer option B is incorrect. Disciplining the project team may be a good option if the problem continues. The best option is to first apply corrective actions.

The performance measurement baseline, which can be comprised of cost, scope, and schedule, is the foundation for creating a performance report.

Answer option B is incorrect. The scope baseline will only reflect the performance of the scope, whereas performance reports typically need scope, time, and cost as its foundation.

Answer option A is incorrect. Cost variances and the cost performance index are cost values that must be considered along with the scope performance and schedule performance.

Answer option D is incorrect. Only reporting performance on the schedule is not enough for a performance report. Laura should also report on scope and cost at a minimum.

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?

Templates are used to identify the typical schedule milestones in the Define Activity process. The tools and techniques used in defining the activity process are as follows: Decomposition: It is used to further divide the project work package into a more smaller and convenient form called activities. Rolling Wave Planning: It is a form of progressive elaboration planning where the work to be accomplished in the near term is planned in detail and future work is planned at a higher level of WBS. Templates: It is an activity list or a part of the activity list taken from the previous project and used in a new project. Expert Judgement: The skilled members in a project team or other experts who develop project scope statements can help provide knowledge in defining activities.

Any meetings, phone calls with multiple participants, or conferences are examples of the interactive communications.

Answer option B is incorrect. Active communication is not a PMBOK term for project management.

Answer option D is incorrect. A push technique describes a distribution from the project manager out to the message recipients, such as email.

Answer option C is incorrect. A pull technique describes a distribution method where the recipients of the message pull the message from a source, such as a Web server.

The Precedence Diagramming Method uses both predecessors and successors as nodes in the project network diagram. The PDM approach is the most common network diagram approach used.

Answer option C is incorrect. Dependency determination identifies the order of the project work.

Answer option B is incorrect. The schedule network template is a tool that uses a previous project network diagram as a base for the current project network diagram.

Answer option D is incorrect. Activity on the node places activities on circles within a network diagram. It is an example of the precedence diagramming method.

These are some communication activities that Tom uses to communicate with the team and the stakeholders. Communications skills are part of general management skills and are used to exchange information. Communication has many dimensions: Written and oral, listening, and speaking Internal (within the project) and external (customer, the media, the public) Formal (reports, briefings) and informal (memos, ad hoc conversations) Vertical (up and down the organization) and horizontal (with peers) Communication is the most important skill that a project manager must posses. It is the single most important characteristics of a top-class project manager. Project managers must communicate well in order to integrate and maximize the performance of team members. Oral and written communications are the backbone of every successful project. During different phases of a project, a project manager requires to communicate through different manners (for example, documentation, meeting updates, etc.) and he must ensure that the information communicated is explicit, clear, and complete.

Answer option C is incorrect. It is a technique to resolve conflict that arises while communicating with different parties.

An activity is the effort needed to complete a work package. The activities are linked to the work packages in the WBS. An activity is the element of work performed throughout the various stages of a project. It is a group of people, communications, processes, and work items that correspond to a joint effort to achieve a goal. An activity is a way to manage the work collectively with others in any organization. The create WBS process identifies the deliverables at the lowest level in the WBS, called the work package. Project work packages are divided into smaller elements known as activities, which correspond to the work required to complete the work package.

Answer option D is incorrect. This is a definition of all the work that the project team and manager must complete in order to complete the total activity list.

Answer options A and C are incorrect. These are not valid definitions of an activity.

Fred should add lag time to each painting activity. Since lag time is waiting time, Fred will have to wait twenty-four hours after the priming is finished before he can start painting. What is a lag? A lag directs a delay in the successor activity. Lags require the dependent activity to have added either to the start date or to the finish date of the activity. For example, in a project of making radio-controlled airplanes, after applying glue and pasting stickers, it requires twenty-four hours to dry the glue. Any activity can be started after that only. This period, of twenty-four hours, is a lag.

Answer option C is incorrect. There is no reason to add an intermediary task as waiting. Adding lag time is the most appropriate as there are fewer activities to manage.

Answer option D is incorrect. Priming all of the room first and then painting all of the rooms would cause Fred to readjust the entire sequencing of activities. In addition, we do not know the reason why Fred has scheduled all the rooms to be primed and then painted. There may be successor activities in the project that need to enter each room, such as carpeting, as soon as a room has been painted. If that were the case the additional activities would have to wait for all of the priming to be completed and then the sequential rooms to be painted before they could start.

Answer option A is incorrect. Lead time actually moves activities closer together rather than farther apart. Lead time would cause the painting and priming activities to overlap, something that Fred does not want to happen. What is a lead? A lead allows an acceleration of the successor activity. It works just the opposite of lag. For example, in a software application project, before designing is fully completed for first phase, a program development group can start this phase programming. This overlapping of timing is a lead.

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, the actual costs are $125,000 more than what the work is worth, which means you'll need to find the earned value, $795,024 and add $125,000 to find the actual costs of the project, which are $920,024.

Answer option A is incorrect. This is a trick as 86 is not the same value as .86. On your PMP exam pay attention to these little details.

Answer option C is incorrect. .90 is slightly more than the Schedule Performance Index of this project.

Answer option B is incorrect. This value represents the actual cost of the project.

Crashing means that the project manager will add resources to the project to complete effort-driven activities in the project. This schedule compression technique adds costs to the project. What is crashing? Crashing is a schedule compression technique to obtain the greatest amount of compression for the least incremental cost. Crashing works for activities where additional resources will shorten the duration. Approving overtime, bringing in additional resources, paying to expedite delivery to activities on the critical path are examples of crashing.

Answer option C is incorrect. Crashing does generally add costs to the project because of the labor added, but this is not the best choice for the question.

Answer options D and A are incorrect. These are not the valid definitions of crashing.

The only statement that is true is that the critical path shows the project's earliest date for completion. 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 C is incorrect. There can be more than one critical path, as two paths in the project network diagram can both take the same amount of time and be longer than any other paths in the project.

Answer option A is incorrect. The critical path can be, and often is, crashed with extra resources in an attempt to recover the project schedule.

Answer option B is incorrect. The critical path is the longest path to project completion.

The schedule variance can be found by subtracting the planned value from the earned value. In this instance, it is $170,370 minus $227,160. SV = 170,370 - 227,160 = -56,790 Schedule variance (SV) is a measure of schedule performance on a project. The variance notifies that the schedule is ahead or behind what was planned for this period in time. The schedule variance is calculated based on the following formula: SV = Earned Value (EV) - Planned Value (PV) If the resulting schedule is negative, it indicates that the project is behind schedule. A value greater than 0 shows that the project is ahead of the planned schedule. A value of 0 indicates that the project is right on target.

Answer option A is incorrect. $45,789 is not a valid calculation.

Answer option D is incorrect. -$30,268 is the expected variance at completion.

Answer option C is incorrect. There is enough information to know.

The project will need $787,504 more to complete. This formula, the estimate to complete, is estimate at completion minus the actual costs. Here,

CPI = EV/AC =(0.40*1,258,456)/525000= 0.95882, and

ETC = EAC - AC

= (BAC/CPI) - AC

=(1,258,456/0.95882) - 525000

= 1,312,504- 525000

= 787,504

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- AC. The EAC is BAC/CPI.

Answer option C is incorrect. This is the estimate at completion.

Answer option A is incorrect. This is the planned value.

Answer option D is incorrect. This is not a valid value based on the current project performance.

The best answer is to make certain quality control happens in the project. This means reviewing past work and ensuring that future inspections are met.

Answer option A is incorrect. Removing the lag time does not solve the problem. It actually removes quality control requirements.

Answer option C is incorrect. Only inspecting future work for quality control ignores potential past quality issues in the project.

Answer option D is incorrect. While this answer is technically correct, it does not address the quality faults that may be creeping into the project deliverables.

Because this project needs the specific resource of Henry, the application developer, and Henry is not available, it is considered as a resource constraint. Recall that a constraint is anything that limits the project manager's option.

Answer option C is incorrect. A resource requirement is simply the need for an application developer.

Answer option B is incorrect. This is likely a matrix organization, but it is not the best answer for this question.

Answer option A is incorrect. While there may be some competition for skilled resources, such as Henry, the application developer, it is not the best answer for this question.

The project management team defines which activities are external to the project. An external dependency is any nonproject activity that is external to the project but has a direct impact on the project activities. An external dependency may be an inspector or any agency that may have to give prior approval before the project can move forward. These dependencies are external to the organization and are determined by the project management team to find which dependencies are external all through the process of sequencing the activities.

Answer option C is incorrect. The project manager may be part of the project management team, but this is not the best choice.

Answer option A is incorrect. The project team does not define this relationship.

Answer option B is incorrect. The project sponsor would not define the external dependencies.

Involving the project team is needed as part of the work package decomposition to get better and more accurate results. The project team comprises the people completing the work and often the experts that can direct the discussion and decomposition efforts. The decomposition technique is used to further divide all project deliverables into smaller component activities. Activities correspond to the effort required to complete a work package. Each and every work package in the WBS is decomposed into the activities needed to create the work package deliverables. Involving team members in the decomposition technique results in better and more precise outcomes.

Answer option B is incorrect. While the team may help the activity decomposition go faster, this is not the best choice for this question.

Answer option A is incorrect. Through the decomposition process, the project manager will learn about the project work, but this is not the primary reason to involve the project team.

Answer option D is incorrect. It is possible to create assignments while completing the activity list, but usually all of the activities are defined and sequenced, and then resources are assigned to manage availability and utilization.

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.

The activity resource requirements will need to be addressed because the imposed constraint will cause a need for more resource to complete the activities by July 2. What is resource leveling heuristics? Resource leveling heuristics is a prioritization method that allocates inadequate resources to critical path activities first. It is a schedule network analysis technique useful to a schedule that has already been analyzed by the critical path method. It is used when shared or critical essential resources are only available at certain times, in limited quantities, or to keep resource usage at a constant level. It is a technique that resolves resource conflicts by delaying tasks within their slack allowances. Resource leveling is the process in which project teams come across problems when developing their project schedules. If a company has multiple projects running simultaneously that require the same resources, then problems can arise. It can often cause the critical path method to change.

Answer option C is incorrect. The project scope does not need to be addressed as there has not been a request to reduce or increase the project scope.

Answer option B is incorrect. The project charter will not change. In fact, the charter will rarely, if ever, change once has been approved and signed.

Answer option D is incorrect. The schedule management plan would not be the biggest concern in this instance. The plan defines how the schedule will be created, executed, monitored and controlled.

Reserve analysis is not an input to the determine budget process. It is a technique used for determining the budget. The inputs to the determine budget process are as follows: Activity cost estimates Basis of estimates Scope baseline Project schedule Resource calendars Contracts Organizational process assets

This is an example of an organizational process asset. The previous project is the historical information that the current project can use. This could also be, with a bit more information, an example of an analogous estimate. Organizational process assets are forms, templates, and other support pieces that the project managers can use to help manage their projects. It is usually something that has been created before the project begins and often, but not always, comes from historical information.

Answer option D is incorrect. This is not a valid term for this question.

Answer option B is incorrect. The lessons learned documentation is a separate document that Gary might reference for his current project, but this is not a valid choice.

Answer option C is incorrect. While organizational process assets are inputs to this process, this choice is not the best selection for the question.

Management reserve is an allotment of time added to the end of the project schedule. When delays happen within the project, the delays are subtracted from the management reserve.

Answer option C is incorrect. Kenny is not using a three-point estimate in this instance.

Answer option A is incorrect. Rewards and recognitions are a good incentive for accurate work, but errors and delays may still happen and the rewards would not necessarily prevent delays in the project.

Answer option B is incorrect. Kenny may be using some type of analogous estimating to predict activity duration, but the best answer is the reliance on the management reserve.

The Identify Stakeholders process identifies all people or organizations that are impacted by the project. It also documents relevant information regarding their interests, involvement, and impact on project success. Stakeholder register and stakeholder management strategy are outputs of this process.

Answer option C is incorrect. Project charter is one of the inputs of the Identify Stakeholders process.

Answer option A is incorrect. Scope baseline is one of the outputs of the Create Work Breakdown Structure (WBS) process.

Answer option B is incorrect. Project scope statement is one of the outputs of the Define Scope process.

The resource calendar defines when and how long a resource will be utilized. Not all resources are human - facilities, equipment, and other things are resources that must be scheduled. A resource calendar is used to make sure that work resources (people and equipment) are scheduled only when they are available for work. They affect a specific resource or category of resources. By default, the working time settings in the resource calendar are the same as in the project calendar. However, a user can customize the resource calendar to show individual schedule information, such as vacations, leaves of absence, or equipment maintenance time.

Answer option B is incorrect. The project scope would not address resource utilization.

Answer option A is incorrect. The project schedule is not the best answer for this question. The project schedule is an in depth plan of the important project phases, activities, milestones, tasks, and the resources allocated to each task.

Answer option C is incorrect. The project calendar documents when the project work will take place, not the utilization of resources.

The various phases of the decision making process are as follows: Problem definition: This phase explores, clarifies and defines the problem. Problem solution generation: This phase draws out the new idea generating process by brainstorming multiple solutions and rejecting premature decisions. Ideas to action: This phase defines the evaluation criteria, rate pros and cons of alternatives and helps in selecting the best solution. Solution action planning: This phase involves key participants to gain acceptance and commitment to make the solution work. Solution evaluation planning: This phase performs the post implementation analysis, evaluations and lessons learned. Evaluation of the outcome and process: This phase evaluates how well the problem was solved or project goals were achieved.

Crashing adds project resources and usually increases costs - though it may also increase some project risks. Crashing is a schedule compression technique to obtain the greatest amount of compression for the least incremental cost. Crashing works for activities where additional resources will shorten the duration. Approving overtime, bringing in additional resources, paying to expedite delivery to activities on the critical path are examples of crashing.

Answer option D is incorrect. Crashing does not always increase project risks.

Answer option C is incorrect. Crashing does not restrict resource utilization - that is resource leveling.

Answer option B is incorrect. This is not a valid definition or description to crashing the project.

The autoregressive moving average is an example of a causal/econometric method for the forecasting project performance. The casual/econometric forecasting method uses the assumption that it is possible to identify the underlying factors, which might influence the variable being forecasted. For example, sales of umbrellas might be associated with weather conditions. If the causes are understood, projections of the influencing variables can be made and used in the forecast. Some examples of casual/econometric forecasting method are as follows: Regression analysis using linear regression or non-linear regression Autoregressive moving average (ARMA) Autoregressive integrated moving average (ARIMA) Econometrics

Answer option B is incorrect. The time series method relies on the earned value, moving average, extrapolation, and growth curve.

Answer option A is incorrect. The judgmental methods use intuition, the Delphi method, and forecast by analogy.

Answer option C is incorrect. The ensemble forecasting is not part of the causal/econometric method for forecasting.

The difference between the buffer needed and the buffer remaining can determine whether corrective action is appropriate.

Answer option C is incorrect. This is not an accurate description of how the critical chain determines the need for corrective action.

Answer option B is incorrect. This is not an accurate description of how the critical chain determines the need for corrective action.

Answer option A is incorrect. This is not an accurate description of how the critical chain determines the need for corrective action.

Change requests are an output of performance report, and allow the project manager to address corrective actions and preventive actions to help the project get back in alignment with performance baselines.

Answer option B is incorrect. While performance reports are an output of the performance reporting, these reports do not specifically address the problems in the project.

Answer option A is incorrect. Updating the organizational process assets is an important activity, but it does not address the poor performance directly.

Answer option C is incorrect. Performance re-baselining is not an output of performance reporting so this choice is not valid.

Only change request is a valid answer. The five outputs of the control schedule process are work performance measurements, organizational process assets updates, change requests, the project management plan updates, and project document updates. Change requests are requests to expand or reduce the project scope, modify policies, processes, plans, or procedures, modify costs or budgets or revise schedules. These requests for a change can be direct or indirect, externally or internally initiated, and legally or contractually imposed or optional. A Project Manager needs to ensure that only formally documented requested changes are processed and only approved change requests are implemented.

Answer option D is incorrect. Activity resource requirement is not an output of the control schedule process.

Answer option A is incorrect. The project schedule is not an output of the control schedule process.

Answer option B is incorrect. Lessons learned is not an output of the control schedule process.

PERT, which means the Program Evaluation and Review Technique, is a duration estimating technique that uses the formula (O+(4M)+P)/6 for the optimistic, most likely, and pessimistic values for each work package. A PERT chart is a project management tool used to schedule, organize, and coordinate tasks within a project. PERT stands for Program Evaluation Review Technique, a methodology developed by the U.S. Navy in the 1950s to manage the Polaris submarine missile program. A PERT chart presents a graphic illustration of a project as a network diagram consisting of numbered nodes (either circles or rectangles) representing events, or milestones in the project linked by labeled vectors (directional lines) representing tasks in the project. The direction of the arrows on the lines indicates the sequence of tasks.

Answer option C is incorrect. This is the formula for the three-point estimate.

Answer options A and B are incorrect. These are not the valid formulas.

Project scope is the effort that must be required to gather a client's plan, goals for space, purpose, properties, impact, and stage of eminence. Scope management sets the boundaries for the project and is the foundation on which the other project elements are built. Scope management helps to organize the work responsibilities and their requirements for successful completion. Managing the project scope is primarily concerned with defining and controlling what is and what is not included in the project.

The communications management plan will define who will receive what information.

Answer option B is incorrect. The project sponsor may be a recipient but the project communications management plan is the best selection.

Answer option A is incorrect. Functional management is not the best choice in a projectized structure.

Answer option D is incorrect. The project customer may receive a copy of the report, but the project communications management plan should direct the communications.

Communication channels are paths of communication with stakeholders in a project. The number of communication channels shows the complexity of a project's communication and can be derived through the formula shown below: Total Number of Communication Channels = n (n-1)/2 where, n is the number of stakeholders. Hence, a project having five stakeholders will have ten communication channels. Putting the number of stakeholders in the formula we can get the required communication channel for the project. It is (80 x 79)/2 for 3,160 communication channels.

The schedule variance is the earned value minus the planned value. In this instance, it is $938,260-$1,055,543 = -$117,282. Schedule variance (SV) is a measure of schedule performance on a project. The variance notifies that the schedule is ahead or behind what was planned for this period in time. The schedule variance is calculated based on the following formula: SV = Earned Value (EV) - Planned Value (PV) If the resulting schedule is negative, it indicates that the project is behind schedule. A value greater than 0 shows that the project is ahead of the planned schedule. A value of 0 indicates that the project is right on target.

Answer option D is incorrect. This is the cost variance for the project.

Answer option A is incorrect. This is the variance at completion.

Answer option C is incorrect. This is the inverse of the earned value.

When the project manager relies on consultants or the project team (or both), it is an example of expert judgment. Expert judgment is a technique based on a set of criteria that has been acquired in a specific knowledge area or product area. It is obtained when the project manager or project team requires specialized knowledge that they do not possess. Expert judgment involves people most familiar with the work of creating estimates. Preferably, the project team member who will be doing the task should complete the estimates. Expert judgment is applied when performing administrative closure activities, and experts should ensure the project or phase closure is performed to the appropriate standards.

Answer option C is incorrect. This is not an example of decomposition.

Answer option B is incorrect. This is not an example of rolling wave planning.

Answer option A is incorrect. This is not an example of using a project template.

An activity is an individual element of work that is logically linked to other activities to form the schedule. Its primary characteristics include an overall duration based upon the resources applied to it (manpower, material, and equipment), as well as a start and completion date that is tied to a work calendar. It also has a relationship with other activities (predecessors and successors).

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.

Contingency reserves are estimated costs to be used at the discretion of the project manager to deal with anticipated, but not certain, events. These events are "known unknowns" and are part of the project scope and cost baselines. The contingency reserve is calculated by multiplying the probability and the impact for the risk event value for each risk event. The sum of the risk events equals the contingency reserve for the project. Note that Risk D is a positive risk amount.

Answer option C is incorrect. This value is the sum of the risk events if you did not include Risk D as a positive risk value.

Answer option A is incorrect. This is a sum of the risk event.

Answer option B is incorrect. This is a sum of the risk events without including Risk D as a positive risk event.

A statement of work (SOW) is a document that captures and defines the work activities, deliverables and timeline that a vendor will execute against in performance of work for a customer. Detailed requirements and pricing are usually specified in it, along with many other terms and conditions. SOW is a narrative description of products or services to be supplied by the project. For internal projects, the project initiator or sponsor provides the statement of work based on business needs, product, or service requirements. For external projects, the statement of work can be received from the customer as part of a bid document.

Answer option B is incorrect. Scope of statement gives the narrative description of the project scope.

Answer option A is incorrect. Project charter is a document that formally authorizes a project manager to work on a project.

Answer option D is incorrect. WBS is a tool that defines a project and groups the project discrete work in a way that helps organize and define the total work scope.

Parametric estimates are created for repetitive tasks, such as four hours per unit installed; 1,000 units to install would equate to 4,000 hours. A template does not address this type of time estimating directly. A template for time estimating is an analogous estimate type. A template for any project is an activity list or a part of the activity list from a previous project. The template contains the activity attributes information and other vivid information that are helpful to define activities. It is also used to classify schedule milestones.

Answer option D is incorrect. Templates can include activity attribute information.

Answer option A is incorrect. Templates do indicate milestones.

Answer option C is incorrect. Templates can save time for the project manager and the project team.