You work as a project manager for BlueWell Inc. Your project is using a new material to construct
a large warehouse in your city. This new material is cheaper than traditional building materials, but
it takes some time to learn how to use the material properly. You have communicated to the
project stakeholders that you will be able to save costs by using the new material, but you will
need a few extra weeks to complete training to use the materials. This risk response of learning
how to use the new materials can also be known as what term?
A.
Benchmarking
B.
Cost-benefits analysis
C.
Cost of conformance to quality
D.
Team development
Explanation:
When the project team needs training to be able to complete the project work it is a cost of
conformance to quality.
The cost of conformance to quality defines the cost of training, proper resources, and the costs the
project must spend in order to ascertain the expected levels of quality the customer expects fromthe project. It is the capital used up throughout the project to avoid failures. It consists of two types
of costs:
Prevention costs: It is measured to build a quality product. It includes costs in training, document
processing, equipment , and time to do it right.
Appraisal costs: It is measured to assess the quality. It includes testing, destructive testing loss,
and inspections.
Answer D is incorrect. Team development describes activities the project manager uses to create
a more cohesive and responsive project team.
Answer B is incorrect. Cost-benefit analysis is the study of the benefits in relation to the costs to
receive the benefits of a decision, a project, or other investment.
Answer A is incorrect. Benchmarking compares any two items, such as materials, vendors, or
resources.