Project Life Cycle

Correct Answer: Vendor selection criteria

The correct answer is 'Vendor selection criteria.'

The Cost Management Plan is a component of the Project Management Plan that outlines how project costs will be planned, structured, and controlled. It typically includes:

1. Control thresholds for monitoring cost performance
2. Description of how cost variances will be managed
3. Units of measure for each resource

These are all legitimate components of the Cost Management Plan and are included in the other answer options.

However, 'Vendor selection criteria' is not a component of the Cost Management Plan. This is more closely related to the Procurement Management Plan, which deals with how the project will acquire goods and services from outside the organization.

The other options are incorrect because:

- Control thresholds for monitoring cost performance are essential for identifying when corrective actions may be necessary.
- Describing how cost variances will be managed is crucial for maintaining project financial health.
- Specifying units of measure for each resource ensures consistent cost estimation and tracking.

These elements are integral to effective cost management and are therefore part of the Cost Management Plan.

Correct Answer: Investigate the issues, solve them if they are part of the original project scope, and then seek sign off

The correct approach in project management when a client is reluctant to sign off on project closure due to some minor issues is to investigate the issues, solve them if they are part of the original project scope, and then seek sign off. The reason why the other answers are wrong is as follows: Forcing the client to sign off on the project is not ethical or professional because it does not take into account the client's concerns and it might harm the relationship with the client. Ignoring the client's concerns and closing the project would not be a good practice as it might lead to dissatisfaction from the client and potential reputational damage for the project manager or the organization. Handing over the issues for the operations team to solve might not be within their skill set or responsibilities and may also risk the client's satisfaction, as the problem could potentially not be addressed promptly or appropriately.

Correct Answer: Analogous estimating

The most appropriate cost estimation technique when there is limited detailed information available about the project is analogous estimating.

Analogous estimating uses historical data from similar projects to estimate the cost of the current project. This method is particularly useful when project details are scarce, as it relies on comparing the current project to past projects with similar characteristics.

This technique is quick and relatively easy to use, making it ideal for early project stages or when time constraints exist. It provides a rough order of magnitude estimate based on expert judgment and historical data.

Bottom-up estimating requires detailed information about project components, which is not available in this scenario. It involves estimating individual work packages and then aggregating them, which is not feasible with limited information.

Parametric estimating with complex algorithms typically requires more detailed project parameters and historical data to create accurate statistical relationships. This level of detail is not available in the given scenario.

Three-point estimating using PERT analysis involves calculating weighted averages of optimistic, most likely, and pessimistic estimates. While useful for considering uncertainty, it still requires more detailed project information than what is available in this case.

In summary, analogous estimating is the most suitable technique when project details are limited, as it leverages similarities with past projects to provide a reasonable estimate.