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HOMEWORK
Refer to Chapter 13 of Project Management: A Systems Approach to Planning, Scheduling, and
Controlling (12th edition) for supporting information and assistance in completing each exercise.

Review each of the following questions or exercises and provide the answers in the space provided.
Some questions and situations will have more than one appropriate answer or response. Project
managers are aware that many issues they face on a daily basis may have several possible solutions.
These exercises are designed to encourage you to think about alternatives before taking action and to
select the option that would produce the greatest benefit or most effectively resolve a situation.

ROM Top down -15% to +75%

Budget Top down -10% to + 25%

Definitive Bottom up -5% to +10%

x
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The work breakdown structure and activity schedules are priced out through the
lowest pricing units of the company. All information is priced out at the lowest
level of performance required, which will be the task level. Costing information is
rolled up to the project level and then one step further to the total program level.

Sunk cost: This is a cost that has been incurred and will not be affected by any
future decision. It is basically money spent. Sunk costs are not considered when
making decisions about whether to continue with a project or terminate the project.
This is a cost that has been incurred and cannot be recovered.

Opportunity cost: The loss of potential gain from other alternatives when one
alternative is chosen. Something given up when a decision is made.
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x
x
x
x
x
x
x
x
x
x

x
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3
1
4
2
7
6
5
(responsibility assignment matrix) 10
9
8
13
12
11

Note:
Suggestive
answers,
other
Review/Ensure the SOW is free of imprecise language. reasonable
Have the SOW reviewed by a third party. solutions
are also
acceptable.

Verify the scope statement and project scope.

Obtain support from functional groups.
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Involve functional groups in the planning

Consider risks associated with scheduling
Validate assumptions

Use functional manager knowledge

Use templates from previous projects
Review WBS with scope statement and statement of work.

Identify the appropriate skill levels required

Provide training

Prepare a risk management plan and conduct risk analysis.

Obtain support from expertise (accounting groups)

Ensure that estimates include forecasts of economic conditions.

Review standard practices/policies, review expectations with project sponsors and

executives.

Use templates to assist in estimating, obtain a third-party review of estimates.

Consider the time value of money, plan for inflation and changing market
prices for material, identify overhead (rent, telecom costs, support services,
benefits)
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Note for
Q13:
Suggestive
answers,
other
reasonable
Develop a plan to identify & verify requirements early in the project. solutions
Validate requirements before developing project plans. are also
acceptable
.

Define resource requirements.

Negotiate with functional managers for qualified resources.

Review the project objectives and scope statement with management.

Align with project objectives.

Define required skills before selection of a project manager

Establish a mentor relationship with a more experienced project manager.

Obtain records and historical data from previous projects.

Request supporting data for all estimates.

Progressively elaborate estimates.

Validate/Reassess estimates at the completion of each phase.

Establish contractor selection criteria/ expectations and performance

measurement criteria.
Negotiate penalty clauses and other controlling processes
in the contract.

x
x x
x x

x
x

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