MGT1201 Chapter 6 Schedule & Budget

What is PERT and how is it related to CPM?

• PERT stands for Program Evaluation and Review Technique, developed around the same time as the Critical Path Method (CPM), and it employs a project network diagram with a statistical distribution.

• PERT is a method used exclusively for software development projects, unrelated to CPM.

• PERT is a budgeting technique that focuses on cost management in projects.

• PERT is a scheduling tool that only applies to construction projects.

What is the expected duration formula in PERT?

• (Optimistic + 4 * Most Likely + Pessimistic) / 6

• (Optimistic + Pessimistic) / 2

• (Most Likely + Pessimistic) / 2

• (Optimistic + Most Likely + Pessimistic) / 3

What is the Critical Path in project management?

• The shortest path in a project that determines the total time.

• The longest path in a project that determines the total time; if any task on this path is delayed, the whole project is delayed.

• A path that includes all tasks regardless of their duration.

• A path that only includes tasks that are completed on time.

What is a Gantt Chart used for in project management?

• To create a timeline for project tasks.

• To analyze project risks and issues.

• To allocate resources among team members.

• To track project expenses and budgets.

What is the purpose of project management software tools?

• To help plan and track the progress of projects

• To replace project managers entirely

• To automate all business processes

• To eliminate the need for communication among team members

What are sunk costs?

• Money that can be recovered after a purchase.

• Money already spent that cannot be recovered, such as a laptop purchased last year.

• Future expenses that are expected to be incurred.

• Costs that are variable and can change over time.

What is the role of a project network diagram?

• It visually represents the sequence of project activities and their dependencies.

• It outlines the budget and financial resources of a project.

• It lists all the team members involved in the project.

• It provides a timeline for project completion.

What is the significance of leveling resources in project budgeting?

• It allows for the allocation of more budget to high-priority tasks.

• It ensures that no team member is over-allocated, meaning they are not assigned to two tasks scheduled at the same time.

• It helps in reducing the overall project duration by compressing tasks.

• It provides a way to increase the number of team members for a project.

What is a milestone in project management?

• A significant point or event in a project timeline that marks the completion of a key phase or deliverable.

• A document that outlines the project's objectives and goals.

• A budget estimate for the entire project duration.

• A team meeting to discuss project progress.

What does the project schedule depend on?

• The project schedule depends on the budget allocated for the project.

• The project schedule depends on how activities are sequenced and the tasks and time estimates in the Work Breakdown Structure (WBS).

• The project schedule depends on the availability of resources and team members.

• The project schedule depends on the client's approval and feedback.