MGMT 464 test 2
inefficient resource utilization
Because projects have different schedules and requirements, there are peaks and valleys in overall resource demands
Overall schedule slippage
Because projects often share resources, delays in one project can have a ripple effect and delay other projects
avoiding risk
Changing the project plan to eliminate the risk or condition - impossible to eliminate all risk events, some specific risks may be acoided before you launch the project
risk register
Details all identified risks, including descriptions, category, and probability of occurring, impact, responses, contingency plans, owners, and current status
Resource-Constrained Scheduling
If resources are not adequate to meet peak demands, the late start of some activities must be delayed, and the duration of the project may be increased.
Resource-Constrained Project
Is one in which the level of resources available cannot be exceeded. • Resources are fixed, time is flexible: inadequate resources will delay the project.
Retaining Risk
Making a conscious decision to accept the risk large risks
heuristics
Mental shortcuts or "rules of thumb" that often lead to a solution (but not always). to solve large, combinatorial problems do not always yield an optimal schedule, but they are very capable of yielding a "good" schedule for very complex networks with many types of resources allocate resources to activities to minimize project delay, that is, heuristics prioritize which activities are allocated resources and which activities are delayed when resources are not adequate
Time-Constrained Project
Must be completed by an imposed date. Time is fixed, resources are flexible: additional resources are required to ensure project meets schedule.
Time-phased budget baseline
Planned costs that are broken down by distinct time periods (e.g., $5,000 per week) for a work package, as opposed to a budget for a whole job/project (6 months for a total of $130,000). Time phasing allows better cost control by measuring the actual rate of expenditure versus the planned expenditure rate over small pieces of the project.
Schedule Risk
Risk events that jeopardize completing the project on time.
Transferring Risk
Shifting responsibility for a risk to another party. does not change risk
free slack
The amount of time that a task can be delayed without delaying the start date of another task.
Risk Appetite
The degree of uncertainty an entity is willing to take on, in anticipation of a reward.
crash cost
The direct cost for completing an activity in its crash time
lag
The minimum amount of time a dependent activity must be delayed to begin or end
parallel method
The most widely used approach to apply heuristics, which have been found to consistently minimize project delay over a large variety of projects is the X starts from the beginning of project time and, when the resources needed exceed the resources available, retains activities first by the priority rules: 1. minimum slack 2. smallest duration 3. lowest activity identification number
Lag relationship
The relationship between the start and/ or finish of a project activity and the start and/or finish of another activity. The most common lag relationships are (1) finish-to-start, (2) finish-to-finish, (3) start-tostart, and (4) start-to-finish.
materials
The resource in a technology system that changes.
project network
The tool used for planning, scheduling, and monitoring project progress
Activity-on-arrow (AOA)
a network diagram in which arrows designate activities
Activity-on-Node (AON)
a network diagram in which nodes designate activities
Cost Risk
a risk management tool that measures the costs associated with treating the organization's loss exposures
documenting responsibility
a second key for controlling the cost of risks
path
a sequence of connected, dependent activities
Failure Mode and Effects Analysis (FMEA)
a systematic process for identifying potential design and process failures before they occur, with the intent to eliminate them or minimize the risk associated with them impact x probability x detection = risk value
laddering
a technique used in in-depth interviews in an attempt to discover how product attributes are associated with desired consumer values
software
a tool the project manager uses to view the project from different perspectives and conditions
time buffers
amounts of time used to compensate for unplanned delays in the project schedule
Merge Activity
an activity that has two or more preceding activities on which it depends
contingency plan
an alternative plan that will be used if a possible foreseen risk event actually occurs
looping
an attempt by the planner to return to an earlier activity
activity
an element of the project that requires time - built by work packages
opportunity
an event that can hace a positive impact on project objectives
all risks are probabilistic so reserves
are no tincluded in the baseline for each work package or activity. They are only activated when a risk occurs
dependency represented with
arrows
resource schedule
assigns time=phased costs that provide the project budget baseline
splitting tasks is a scheduling technique used to get
better project schedule and/or to increase resource utilization useful if the work involved does not include large start up or shutdown costs most common error is to interrupt "people work"
node
box
Concurrent Engineering
bringing engineering design and manufacturing personnel together early in the design phase - breaks activities into smaller segments so work can be done parallel
the risk management process begins
by trying to generate A list of all the possible risks that could affect the project
a major element of the risk control process is
change management
task-related currencies
come in different forms and are based on the project manager's ability to contribute to others' accomplishing their work - most significant form is the ability to respond to subordinates' requests for additional manpower, money, or time to complete a segment of a project
reason for accelerating project completion
competitive advantage, time to market, imposed deadlines
leadership is about
coping with change
management is about
coping with complexity
By using informatino from your WBS and resource schedule, you can
create a time-phrased cost baseline
Personal-related currencies
deal with individual needs and an overriding sense of self esteem - by asking for help and seeking opinions, delegating authority over work, and allowing individuals to feel comfortable stretching their abilities
Inspiration-related currencies
derive from people's burning desire to make a difference and add meaning to their lives - most powerful form of influence
contingency funds
established to cover project risks - identified and unknown
5 responses to opportunity
exploit share enhance escalate accept
threats
external risk sources
these systems do not measure how much work was accomplished for the money spent
hence, without time-phasing cost to match your project schedule, it is impossible to have reliable information for control purposes
a project manager's behavior symbolizes
how other people should work on the project
networks provide project schedule by
identifying dependencies, sequencing, and timing of activities
critical path
in a PERT network, the sequence of tasks that takes the longest time to complete
the cost impact of a risk event
increases over the life of a project
splitting
interrupting work on one task and assigning the resources to work on a different task for a period of time, then reassigning them to work on the original task no splitting means that once an activity is placed in the schedule, assume it will be worked on continuously until it is finished
when demand for a specific resource type is erratic,
it is difficult to manage, and utilization may be very pooer
project cost-duration graph slopes
less steep: less it costs to shorten one time period steep slope: it will cost more to shorten one time unit
downside of leveling
loss of flexibility that occurs from reducing slack. The risk of activities delaying the project also increases because slack reduction can create more critical activities and/or near-critical activities. Pushing leveling too far for a perfectly level resource profile is risky. Every activity then becomes critical
networks
mutually beneficial alliances that are generally governed by the law of reciprocity
technical risk
often be the kind that causes the project to shut down problematic
law of reciprocity
one good deed deserves another and likewise one bad deed deserves another
more common problems encountered in managing multiproject resource schedules
overall schedule slippage inefficient resource utilization resource bottlenecks
stakeholders
people and organizations that are actively involved in the project whos interest may be positively or negatively affected by the project
resources are
people equipment and material that can be drawn on to accomplish something something the availability or unavailability of resources will often influence the way projects are managed
three basic relationships for activities included in a project network
predecessor activities successor activities concurrent or parallel
actions of project managers show
priorities, urgency, and problem solving, cooperation, standards of performance, ethics
when two or more activities require the same resource, the
priority rules are applied if they are equal, the activity with the smallest duration would be placed in the schedule first then the lowest activity identification number
when making individual assignments
project managers should match the demands and requirements of specific work with the qualifications and experience of available participants as best as they can
risk management attempts to
recognize and manage potential and unforeseen trouble spots that may occur when the project is implemented. It identifies as many risk events as possible, minimizes their impact, manages responses to events that do materialize, and provides contingency funds to cover risk events that actually materialize
leadership involves
recognizing and articulating the need to significantly alter the direction and operation of the project, aligning people to the new direction and motivating them to work together to overcome hurdles produced by the change adn to realize new objectives
what if cost is the issue, not time?
reduce project scope have owner take on more responsibility outsource project activities or even the entire project brainstorm cost saving options
limited resource schedule usually
reduces slack, reduces flexibility by using slack to ensure delay is minimized, and increases the number of critical and near-critical activities scheduling complexity is increased because resource constraints are added to technical constraints; start times may now have 2 constraints traditional critical path no longer meaningful
sensitivity
reflects the likelihood the original critical path(S) will change once the project is initiated
indirect costs
represent overhead costs such as supervision, administration, consultants, and interest not associated with any particular work package or activity vary directly with time
direct costs
represents labor, materials, equipment, and sometimes subcontractors assigned directly to a work package or an activity
normal time
represents low-cost, realistic, efficient methods for completing the activity under normal conditions
crash point
represents the maximum time an activity can be compressed
no amount of planning can overcome
risk, or the inability to control chance events
most changes fall into 3 categories
scope changes in the form of design or additions represent big changes implementarion of contingency plans, when risk events occur, represent changes in baseline costs and schedules improvement changes suggested by project team members represent another category
how far to reduce the project time from the normal time toward the optimum depends on the
sensitivity of the project network (sensitive if it has several critical or near critical paths)
Contingency Reserve
set up to cover identifies risks, allocated to specific segments or deliverables of the project for past
management reserves
set up to cover unidentifieed risks and are allocated to risks associated with the total project separated because their use requires approval from different levels of project authority
look for critical activities that can be shortened with the
smallest increase in cost per unit of time
assumptions
splitting activities will not be allowed the level of resources used for an activity cannot be changed
most commonly used relationship extrentions
start-to-start and finish-to-finish or a combination of the two
forward pass
starts with the first project activity(ies) and traces each path through the network to the last project activity(ies) - add activity times along each path in the network (ES+DUR=EF) - you carry the early finish to the next activity where it becomes the early start, or - if the next succeeding activity is a merge activity you select the largest early finish number of all its immediate predecessor activities
Position-related currencies
stem from the manager's ability to enhance others' positions within their organization - strong forms is sharing contacts with other people
relationship-related currencies
strengthening the relationship with someone rather than directly accomplishing the project tasks essense is forming a relationship that transcends normal professional boundaries and extends into the realm of friendship develop by giving personal and emotional backing
total slack
tells us the amount of time an activity can be delayed and not delay the project (LS-ES=SL) slack or float
project success is strongly affected by
the degree to which a project has the support of top management
the chances of a risk event occuring are greatest during
the early stages of a project, when uncertainty is highest and many questions remain unanswered
Scenario Analysis
the easiest and most commonly used technique for analyzing risks. assess risk in terms of probability of the event and impact of the event
reducing risk is usually
the first alternative considered
network is developed from
the information collected for the WBS and is a graphic flow chart of the project plan WBS
network depicts
the project activities that must be completed, the logical sequences, the interdependencies of the activities to be completed, and in most cases the times for the activities to start and finish along with the longest path(s) through the network
if resources are truly limited and activity time estimates are accurate,
the resource-constrained schedule will materialize as the project is implemented important to develop schedule before a project begins to leave time for considering reasonable alternatives
funding risk
the risk that an investor who uses short-term borrowing to make long-term investments will be unable to renew the short-term borrowing
crash time
the shortest possible time to complete an activity
management by wandering around
through face to face interactions, project managers are able to stay in touch with what is really going on in the project and build cooperation essential to project success
one common mistake made early in the risk identification process is
to focus on objectives and not on the events that could produce consequences
factors in determining who should work with each other
to minimize unnecessary tension, managers should pick people with compatible work habits and personalities but who complement each other experience future needs should be considered
cost or control account
total cost at each intersenction
groups make more accurate judgments about risks than individuals
true
the sources of project risks are
unlimited
Finish-to-Start Relationship
when the next activity in the sequence must be delayed even when the preceding activity is complete
escalating risk
when the project encounters a threat that is outside the scope of the project or authority of the project manager
burst activity
An activity that has more than one activity immediately following it.
Predecessor Activity
An activity that logically comes before a dependent activity in a schedule.
leveling
Delay noncritical activities by using positive slack to reduce peak demand and fill in the valleys for the resources
Resource bottlenecks
Delays and schedules are extended as a result of shortages of critical resources that are required by multiple projects
change management systems
Involve reporting, controlling, and recording changes to the project baseline
Parallel Activities
activities that can take place at the same time
people
most obvious and important project resource
equipment
usually presented by type, size, and quantity
Options when resources are not constrained
- Add resources, but see Brooks' law - adding manpower makes software projects later - Outsource and subcontract - Schedule overtime - Use a project team - recall from chapter 3 that one advantage is speed - Do it twice - fast (quick and dirty solution) and correctly, then go back and correct it
Options when resources are constrained
- Fast-tracking - rearrange the network, put in lags, allow things that were sequential to be done in parallel - Critical chain scheduling - Reduce project scope - Compromise quality - improve the efficiency of the project team
Backward Pass—Latest Times
- How late can the activity start? (late start—LS) - How late can the activity finish? (late finish—LF) - Which activities represent the critical path? - How long can the activity be delayed? (slack or float— SL)
Mitigating Risk
- Reducing the probability or likelihood an adverse event will occur*** - Reducing impact or consequences of adverse event
Forward Pass—Earliest Times
1. How soon can the activity start? (early start—ES) 2. How soon can the activity finish? (early finish—EF) 3. How soon can the project be finished? (expected time—TE)
3 steps to construct a project cost-duration graph
1. find total direct costs for selected project durations 2. find total indirect costs for selected project durations 3. sum direct adn indirect costs for these selected durations graph is then used to compare additional cost alternatives for benefits
steps to social network building
1. identify those stakeholders whom the project depends for success - whose cooperation will we need? Whose agreement or approval? Whose opposition would keep us from accomplishing the project? 2. Initiate contact and began to build a relationship with these people
Basic Rules to Follow in Developing Project Networks
1. left to right 2. an activity cannot begin until all preceding connected activities have been completed 3. arrows on networks indicate precedence and flow, can cross over each other 4. each activity should have a unique identification number 5. an activity identification number must be larger than that of any activities that precede it 6. looping is not allowed 7. conditional statements are not allowed 8. experience suggests that when there are multiple starts, a common start node can be used to indicate a clear project beginning on the network. A single project end node can be used to indicate a clear ending
Backward Pass
A critical path method technique for calculating the late start and late finish dates by working backward through the schedule model from the project end date. - you subtract activity times along each path starting with the project end activity (LF-DUR=LS) - you carry the LS to the preceding activity to establish its LF, or - if the next perceeding activity is a burst activity; in this case you select the smallest LS of all its immediate successor activities to establish its LF
Successor Activity
A dependent activity that logically comes after another activity in a schedule.
Project cost-duration graph
A graph that plots project cost against time; it includes direct, indirect, and total cost for a project over a relevant range of time.
Hammock Activity
A group of related schedule activities aggregated and displayed as a single activitiy.
Risk Breakdown Structure (RBS)
A hierarchical representation of risks according to their risk categories.
risk profile
A list of questions that addresses traditional areas of uncertainty on a project.
Program Evaluation and Review Technique (PERT)
A method for analyzing the tasks involved in completing a given project, estimating the time needed to complete each task, and identifying the minimum time needed to complete the total project.
risk
An uncertain event or condition that, if it occurs, has a positive or negative effect on one or more project objectives.
