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PMHub now offers you the benefit of daily guidance to help you stay on the road to success with the project management exam or to sharpen and exercise the project management skills you already possess. Each edition of the PMHub/Crosswind Tip of the Day will give you a question of the day, daily terminology booster, and links to other helpful tools that will prepare you for exam success.

Question of the Day

The Project Manager is evaluating data from a control chart and discovers nine consecutive data points on one side of the control chart. This is called what?

A) Too tight of control limits

B) A violation of the Seven Run Rule

C) Too loose of specification limits

D) Acceptable measurements

Terminology of the Day

Grade

A ranking to differentiate between products that have similar functions, but have different levels of quality

Answer and Explanation to Yesterday's Question

The project is using a new auto press machine that cost $50,000 US. The Project Manager is told to set up depreciation for the server over a five-year schedule, with the auto press having a value of $0 at the end of five years. Standard depreciation will be used in the calculation. What is the amount per year the server will depreciate?

A) $10,000 US (Correct)

B) $5,000 US

C) $2,500 US

D) Not enough information

Explanation: To calculate this, there are a few things to determine. What is the value of the asset at the end of the schedule? What is the amount of the asset to begin with? What is the number of years of the depreciation schedule? First, subtract the ending value of the asset from the beginning value of the asset ($50K-$0=$50K). The $50K is then divided by the years (5) of the depreciation schedule. This results in $10K per year of depreciation.