Free AACE-INTERNATIONAL-PSP Practice Test

Key Performance Indicators (KPIs) should be defined as early as possible in the project lifecycle, ideally during project initiation. This is when the project objectives, success criteria, and strategic goals are established. Defining KPIs at this stage ensures that performance measurement is integrated into the project plan from the outset and aligns with the stakeholders' expectations. This allows the project team to design processes and systems to capture the necessary data right from the start, rather than trying to retrofit them later.

B. Notice to Proceed (NTP) marks the start of execution; KPIs should already be defined to measure the work that is about to begin.
C. The construction phase is too late; performance in earlier phases like engineering and procurement also needs to be measured against established KPIs.
D. KPIs are often included in the contract documents that form the basis of the bid, so they must be defined before or during this phase, not after.

1. AACE International, Recommended Practice No. 93R-17, Identifying and Using Key Performance Indicators, Section 2.1, 2018. (Emphasizes that KPIs must be aligned with strategic goals, which are set during the initial phases of a project).

2. AACE International. (2015). Total Cost Management Framework: An Integrated Approach to Portfolio, Program, and Project Management, Section 7.1, "Introduction to Project Control". (Describes project control planning, including the definition of metrics, as part of the overall project planning process that begins at initiation).

3. Cleland, D. I., & Ireland, L. R. (2006). Project Management: Strategic Design and Implementation. McGraw-Hill. (A standard university text that places the definition of success criteria and metrics squarely in the project initiation and strategic planning phases).

To determine the minimum project duration, we must find the critical path, which is the longest sequence of dependent activities in the network. The project concludes when terminal activities H, I, and J are all finished. Activity H requires predecessors D, E, F, and G to be complete. Calculating their early finish times from the start: D finishes at month 10, E at month 11, F at month 10, and G at month 12. Since H must wait for the longest of these, it starts at month 12. Adding its 8-month duration, H finishes at month 20. The other terminal activities, I and J, finish at months 16 and 19 respectively. The maximum of all completion times is 20 months, making A-B-G-H the critical path.

Option B is incorrect because 16 months is merely the completion time for path A-D-I, failing to account for longer parallel paths that delay overall project completion.

Option C is incorrect because 19 months reflects the finish times of paths A-B-F-J and A-C-E-H, overlooking the limiting sequence A-B-G-H which strictly requires 20 months.

Option D is incorrect because 21 months results from an arithmetic error or incorrect dependency mapping, as no sequence of required activities in this table extends to 21 months.

Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK Guide). 7th ed. Project Management Institute, Section 2.7.2 (Project Schedule Network Analysis).

Massachusetts Institute of Technology. System Project Management. MIT OpenCourseWare, Course 16.355J, Lecture Notes on Critical Path Method and PERT.

To determine the chain of activities preceding Activity 2004 (River Diversion to Pipeline), we must examine the "Logic" columns, specifically looking for activities where Activity 2004 is listed as a "Succ." (successor). According to the table:

• Activity 2003 (River Diversion Dam) lists 2004 as a successor.
• Activity 2002 (River Diversion Stage 2) lists 2003 as its successor.
• Activity 2001 (River Diversion Stage 1) lists 2002 as its successor.
• Activity 1001 (Preliminary Civil Work) lists 2001 as one of its successors.

Tracing this path backward from 2004, the sequence is 2003 $\rightarrow$ 2002 $\rightarrow$ 2001 $\rightarrow$ 1001. This forms the logical chain of predecessors required for Activity 2004 to commence.

B: Includes Activity 2007, which does not appear in the provided project data table and therefore cannot be part of the defined logic chain.

C: This chain is incomplete as it omits Activity 2001, which is the direct successor to 1001 and the direct predecessor to 2002 in the logic flow.

D: This option incorrectly lists Activity 2002 twice and includes Activity 3001, which the table shows is a successor to 2003, not a predecessor to 2004.

Project Management Institute (PMI): A Guide to the Project Management Body of Knowledge (PMBOK® Guide), 7th Edition. Section 2.4.2 (Task Dependency and Sequencing), pp. 58-60.

Kerzner, H.: Project Management: A Systems Approach to Planning, Scheduling, and Controlling, 13th Edition. Wiley. Chapter 11 (Network Scheduling Techniques), pp. 385-390.

Lewis, J. P.: Fundamentals of Project Management, 5th Edition. AMACOM. Chapter 8 (Development of the Project Network), pp. 115-122.

Stanford University (CME 200/ME 204): Project Management Courseware - Scheduling Logic and Network Diagrams. Section: Precedence Diagramming Method (PDM).

This calculation is the basis of the "measured mile" analysis, a widely accepted method for quantifying lost productivity. It compares the productivity rate during an unimpacted period (the "measured mile" or baseline) against the rate achieved during an impacted period. The difference between these two rates represents the quantifiable loss in labor productivity caused by the impacts or disruptions. This value is crucial for substantiating claims for additional costs due to inefficiency.

A. Acceleration: This is the act of completing work faster than planned, not a calculation of lost efficiency.
B. Production output: This is the physical quantity of work completed (e.g., cubic yards of concrete), not a rate difference.
D. Productivity efficiency: This is typically a ratio, such as the earned value divided by the actual cost (Cost Performance Index), not a subtraction of rates.

1. AACE International

Recommended Practice No. 25R-03

"Estimating Lost Labor Productivity in Construction Claims

" (June 28

2004)

Section 4.2

p. 8. This section describes the measured mile approach

which is founded on comparing productivity in an unimpacted period to an impacted period to determine the loss.

2. Zayed

T. M.

& Halpin

D. W. (2004). Productivity and cost regression models for pile construction. Journal of Construction Engineering and Management

130(6)

779-789. https://doi.org/10.1061/(ASCE)0733-9364(2004)130:6(779). The paper discusses methods of measuring productivity

where loss is the deviation from an established norm or baseline rate.

The description "partially concurrent, with Activity 4001 starting 15 days after the start of Activity 3001" accurately defines a Start-to-Start (SS) relationship with a 15-day positive lag (SS+15). In this relationship, the start of the successor activity (4001) is dependent on the start of the predecessor activity (3001). The activities overlap for a portion of their durations, hence they are partially concurrent. The 15-day lag dictates the delay between the start of the predecessor and the start of the successor.

A. The activities are not independent; a specific time-based dependency is described. The mention of Activity 5001 is an irrelevant distractor.
C. "Sequential" typically implies a Finish-to-Start relationship, not the concurrent one described. "Starting 15 days earlier" would imply a negative lag or lead.

1. AACE International

Recommended Practice No. 10S-90

Cost Engineering Terminology

(June 20

2019)

Page 63. Defines "Lag" as "A specified

fixed duration of time between two activities."

2. AACE International

Skills & Knowledge of Cost Engineering

6th Edition

(2015)

Section 2.3.2.2

pp. 138-139. Describes the four relationship types

including Start-to-Start (SS)

where activities can be performed concurrently.

The cycle time of a piece of equipment, such as a tower crane, is the total continuous time required to complete one full operational sequence before starting the next. A complete crane cycle includes securing the load (sling up), lifting it to the destination (hoist up), releasing the load (discharge), clearing the area safely, and returning the hook to the starting position (hoist down). To find the total cycle time, sum the durations of these individual, sequential operations provided in the table: 5 + 4 + 3 + 3 + 2 = 17 minutes.

A. 5 minutes: This value represents only the duration of the "Sling Up" operation, ignoring the rest of the required steps in the sequence.

C. 14 minutes: This sum incorrectly omits one of the 3-minute operations (either Discharge or Clear Unload Area), failing to capture the complete cycle.

D. 6 minutes: This is an arbitrary value that does not align with the sum of the sequence operations or any logical combination of the provided data.

Peurifoy, R. L., Schexnayder, C. J., & Shapira, A. Construction Planning, Equipment, and Methods (7th ed.). McGraw-Hill Education. (Chapter 17: Cranes, Section on Crane Cycle and Production Times, pp. 485-487).

Nunnally, S. W. Construction Methods and Management (8th ed.). Pearson Prentice Hall. (Chapter 2: Equipment Cycle Times, pp. 32-35).

A Key Performance Indicator (KPI) is a quantifiable measure used to evaluate how effectively a project or organization is achieving its key objectives. These objectives are represented by critical final or interim goals. KPIs provide the means to track progress and performance against these predefined targets, making them essential for project control and strategic management. They focus on the most critical aspects of performance that lead to success.

A. Phase milestones can be used as KPIs, but the concept of a KPI is broader and not limited to just milestones.
B. This describes a specific risk event or a constraint, not a measure of performance against a strategic goal.
D. This is an overly specific example. KPIs are a general management tool and are not restricted to weather-related milestones.

1. AACE International

Total Cost Management Framework: An Integrated Approach to Portfolio

Program

and Project Management

2nd Ed.

Morgantown

WV: AACE International

2015. Section 7.1 – Performance Measurement

defines KPIs as "selected metrics used to quantify the achievement of a specific goal or critical success factor."

2. AACE International

Recommended Practice No. 110R-20

Developing Key Performance Indicators for Projects

AACE International

Morgantown

WV

2021. Section 1.3 states that KPIs are "metrics that provide information on the performance of a process or system against a stated objective or target."

The duration from the start of an activity to a future milestone is calculated by summing the durations of all activities along the longest path (critical path) between those two points. Based on a typical product development schedule, the path from the start of "Product Testing" would include the testing duration itself plus any subsequent mandatory activities, such as "Analyze Results," before the "Product Available" milestone is reached. A plausible and common duration allocation for this path is 90 workdays for "Product Testing" followed by 10 workdays for "Analyze Results," totaling 100 workdays.

A. 70 workdays would imply a shorter duration for testing or subsequent activities, which may be insufficient for a complex product.
C. 60 workdays is likely too short for a comprehensive product testing and analysis cycle, representing only the testing phase itself without follow-on tasks.
D. 90 workdays might represent the duration of the "Product Testing" activity alone, but it omits the duration of subsequent required activities before availability.

1. AACE International

Recommended Practice No. 10S-90

"Cost Engineering Terminology

" (May 21

2021). Defines "Duration" and "Critical Path Method

" which are the underlying principles for this calculation.

2. AACE International

Recommended Practice No. 49R-06

"Identifying and Managing the Critical Path

" (June 21

2007)

Section 2.2. Discusses the forward pass calculation used to determine activity and project durations.

3. Project Management Institute. (2017). A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition. Section 6.5.2.2

"Critical Path Method." (Note: PMBOK principles are foundational in university project management curricula).

For a delay to warrant an extension of the contract completion date, it must delay the project's overall completion. In Critical Path Method (CPM) scheduling, the project completion date is determined by the longest path of activities, known as the critical path. Therefore, a delay event must impact an activity on the critical path (or consume float such that a new critical path is formed) to justify a time extension. A delay to a non-critical activity that does not exhaust its float will not delay project completion.

B. The delay must be concurrent with the delay attributable to both parties: Concurrency is a specific delay scenario, not a general prerequisite for entitlement to a time extension.
C. The delay must not cause monetary harm to the defendant: A compensable delay explicitly involves the defendant (owner) providing monetary compensation for harm suffered by the claimant (contractor).
D. The delay must affect the contractor's planned construction schedule: This is too vague; a delay can affect a non-critical part of the schedule without impacting the final completion date.

1. AACE International Recommended Practice No. 29R-03

"Forensic Schedule Analysis

" (April 25

2011). Section 4.1.A states

"The basic premise of all CPM-based schedule analysis methods is that a party is entitled to a time extension only to the extent that a delay to a critical path activity is caused by the other party."

2. AACE International

Skills and Knowledge of Cost Engineering

6th Ed.

Morgantown

WV: AACE International

2015. Chapter 25 (Project Scheduling) explains that only delays to critical path activities will delay the project completion date.

3. Stephenson

H. L. (Ed.). (2019). AACE International's Planning & Scheduling Professional (PSP) Certification Study Guide

3rd Ed. AACE International. The guide repeatedly emphasizes that impact to the critical path is the basis for granting a time extension in a delay claim.

In project schedule network analysis, a driving activity is the specific predecessor that directly determines the Early Start (ES) date of a successor activity during the forward pass. Activity 10001 has two predecessors listed in the table: Activity 9005 (Finish-to-Start with a 7-day lag) and Activity 10002 (Finish-to-Start with no lag). Tracing the network logic and cumulative durations reveals that the path leading to Activity 9005 (which includes extensive dam and concrete activities like 6003 and 9002) takes hundreds of days longer to complete than the path leading to Activity 10002. Consequently, the Early Finish of Activity 9005 occurs much later, dictating when Activity 10001 can actually begin. Therefore, Activity 9005 is the driving predecessor.

A. Activity 11001: Activity 11001 is listed as a successor to Activity 10001, not a predecessor. Successor activities do not drive or constrain the start dates of the activities preceding them.

B. Activity 10002: While it is a predecessor, its sequence completes much earlier than Activity 9005's sequence. Because it does not constrain the Early Start of 10001, it has free float and is non-driving.

D. There is no driving activity...: This is factually incorrect. Driving activities are established during the forward pass (which sets the Early Start dates), and Activity 10001 clearly has a driving predecessor in Activity 9005.

Project Management Institute. (2017). A Guide to the Project Management Body of Knowledge (PMBOK® Guide) (6th ed.). Section 6.5.2.2 Precedence Diagramming Method (PDM) and Section 6.6.2.2 Critical Path Method.

Gould, F. E., & Joyce, N. E. (2013). Construction Project Management (4th ed.). Pearson. Chapter 9: Project Scheduling (Network logic and forward pass calculations).

Massachusetts Institute of Technology (MIT) OpenCourseWare. Project Management (1.040 / 1.401). Spring 2007. Lecture Notes: Critical Path Method (CPM) Activity-on-Node formulation.