OMGT Project Management Final

Slope =

(Crash cost - normal cost)/(normal time - crash time)

PERT (Program Evaluation and Review Technique)

A technique that uses optimistic, pessimistic, and realistic time estimates to calculate the expected time for a particular task.

Risk Severity Matrix (RSM)

A tool used to assess the impact of risks on a project.

Earned Value Rules

0/100 rule. This rule assumes credit is earned for having performed the work once it is completed. Hence, 100 percent of the budget is earned when the work package is completed. This rule is used for work packages having very short durations. 50/50 rule. This approach allows 50 percent of the value of the work package budget to be earned when it is started and 50 percent to be earned when the package is completed. This rule is popular for work packages of short duration and small total costs. Percent complete with weighted monitoring gates. This more recent rule uses subjective estimated percent complete in combination with hard, tangible monitoring points. This method works well on long-duration activities that can be broken into short, discrete work packages of no more than one or two report periods. These discrete packages limit the subjective estimated values. For example, assume a long-duration activity with a total budget of $500. The activity is cut into three sequentially discrete packages with monitoring gates representing 30, 50, and100 percent of the total budget. The earned amount at each monitoring gate cannot exceed $150, $250, and $500. These hard monitoring points serve as a check on overly optimistic estimates.

Options for reducing project duration when resources are not constrained

1. Adding resources 2. Outsourcing Project work 3. Scheduling overtime 4. Establish a core project team 5. Do it twice - Fast and correctly

Disadvantage of outsourcing

1. Coordination breakdowns 2. Loss of control 3. Conflict 4. Security issues 5. Political hot potato

Advantage of outsourcing

1. Cost reduction 2. Faster project completion 3. High level of expertise 4. Flexibility

Options for reducing project duration when resources are constrained

1. Improve the efficiency of the team 2. Fast-tracking 3. Critical-chain project management 4. Reducing scope 5. Compromise quality

Project direct costs

1. Labor 2. Materials 3. Equipment 4. Sometimes subcontractors Can be assigned to directly to a work package and/or activity

PMI COE Responsibility

1. Make decisions and take actions in the best interests of society, public safety, and environment 2. We accept those assignments that are consistent with our background, experience, skills, and qualifications 3. We inform ourselves and uphold policies, rules, and regulations and laws that governs our work, professional, and volunteer activities 4. We report unethical or illegal conduct to appropriate management & if necessary to those affected by our conduct 5. We bring violations to this Code to the attention of the appropriate body for resolution. We only file ethics complaints when they are substantiated by fact.

Project indirect costs

1. Overhead cost 2. Supervision cost 3. Administration 4. Consultants 5. Interest Can't be associated with a given work package

Impact of reducing project duration

1. Resentment 2. Fatigue

PMI COE Respect

1. Respect is our duty to show a high regard for ourselves, others, and the resources entrusted to us. 2. We inform ourselves about norms and customs and avoid in engaging in behaviors they might consider disrespectful 3. We listen to eachothers point of view, seeking to understand them. 4. We approach directly to those patterns with whom we have a conflict. 5. We conduct ourselves in a professional manner 6. We negotiate in good faith, do not exercise power of our expertise or position to influence decisions

Risk management process

1. Risk Identification 2. Risk Assessment 3. Risk Response Development 4. Risk Response Control

PMI COE Fairness

1. We demonstrate transparency in decision-making and fairness and constantly reexamine our impartiality 2. We provide equal access to information to those authorized & equal opportunities to qualified candidates 3. We do not discriminate against others based on, but not limited to, gender, race, age, religion, disability, nationality, or sexual orientation 4. We proactively and fully disclose any real or potential conflicts of interest to appropriate stakeholders 5. When we realize we have a real or potential conflict of interest we refrain from being involved in the decision-making process 6. We do not hire or fire, reward or punish, or award or deny contracts based on personal considerations, including or not limited to favoritism, nepotism, or bribery.

PMI COE Honesty

1. We earnestly seek to understand the truth 2. We are truthful in our communications and conduct and provide in a timely manner 3. We make commitments and promises in good faith 4. We do not engage on or condone behavior that is designated to deceive others 5. We do not engage in dishonest behavior with the intention of personal gain or at the expense of others

Steps in the control process

1.Setting a baseline plan. 2.Measuring progress and performance. 3.Comparing plan against actual. 4.Taking action.

CPM (Critical Path Method)

A schedule development method that determines a single early and late start date, early and late finish date, and the float for each activity on the project.

Fixed Price vs. Cost plus

I would recommend that a fixed-price contract be used by owners and/or contractors with a clearly defined project with a reasonable decision frame and low risk. Having low risk allows the project uncertainty to be minimized, and the contractors working on the project can estimate more effectively. Owners need to be careful when doing a fixed-price contract that their estimates are accurate, so their bid for the contract is reasonable for the work that is being done. The kind of project I would recommend for a cost-plus contract is one where the cost can be accepted by the owner, the owner is willing to take on more risk, and it is tailored towards incentivizable work. If the work is unable to be incentivized in a natural manner, then it may be not be the best for a cost-plus contract

PERT vs CPM

PERT is almost identical to the critical path method (CPM) technique except it assumes each activity duration has a range that follows a statistical distribution. PERT uses three time estimates for each activity. Basically, this means each activity duration can range from an optimistic time to a pessimistic time, and a weighted average can be computed for each activity. Because project activities usually represent work, and because work tends to stay behind once it gets behind, the PERT developers chose an approximation of the beta distribution to represent activity durations. This distribution is known to be flexible and can accommodate empirical data that do not follow a normal distribution. The activity durations can be skewed more toward the high or low end of the data range. beta distribution for activity durations that is skewed toward the right and is representative of work that tends to stay late once it is behind. The distribution for the project duration is represented by a normal distribution. The project distribution represents the sum of the weighted averages of the activities on the critical path(s)

PMI Code of Ethics and Professional Conduct Categories

Responsibility Respect Fairness Honesty

Earned value

The value of the work that has been completed and the budget for that work: EV=%Complete X BAC.

Tracking Gantt Chart vs. Baseline Gantt Chart

Tracking Gantt charts help communicate project progress by comparing the actual progress of the project vs. the planned progress of the project. It also provides an easy to understand visual for the performance of the project, and stakeholders can understand the project status easily. Baseline only shows proposed duration

Crashing

shortening activity time in a network to reduce time on the critical path so total completion time is reduced. Must crash a critical path activity, and should crash the smallest cost slope per unit of time possible.

BAC

total budgeted costs to date