Project Management Chapter 1-5 TEST REVIEW

Top-down VS bottom-up

The top-down approach to defining project tasks involves starting with the project goal or final deliverable, and breaking it down into smaller planning chunks The bottom-up approach to answering "what are the tasks" relies on project team members identifying the tasks and then organizing them into specific groups or work packages.

List the seven guidelines to develop useful work package estimates.

1) Responsibility 2) Use several people to estimate 3) Normal conditions 4) Time units 5) Independence (treat each task as independent) 6) Contingencies 7) Adding risk assessment to the estimate helps to avoid surprises to stakeholders

How might learning curves affect time and cost estimates?

Make or buy decisions: The analysis of the cost to make the product will be affected by the learning curve in effect.

What types of costs are there (direct, project overhead, and general/administrative)? Where would the project manager's salary be classified?

1) Direct Costs - Includes labour, materials, equipment, other - chargeable to specific work ie. equipment 2) Direct Project O/H costs - tied to project deliverables & work packages ie. salary of project manager, temporary rental space for project team 3) General & Administrative O/H Costs - costs that are not directly linked to the overall project - advertising, accounting, and senior management above project level Direct costs are controllable by the project manager :)

Identify and briefly describe the six elements on the recommended project scope checklist.

1) Project Objective 2) Deliverables 3) Milestones 4) Technical Requirements 5) Limits & Exclusions 6) Customer Review

Identify and briefly describe the five factors that are increasing the demand for project management

1. Compression of the product life cycle 2. knowledge explosion 3. Triple bottom line ( people, profit, planet) 4. increased customer focus 5. Small projects representing big problems

Identify and briefly describe the three major categories of project costs and give an example of each.

1. Direct costs (labor, materials, equipment, other), 2. Project Overhead Costs (salaries of project manager, rent on space to house the project), and 3. General and Administrative Overhead Costs (advertising, accounting, and senior management of the organization

Identify and briefly describe the three basic project management structures. Describe at least two advantages and two disadvantages of each structure.

1. Functional Organizational Structure In a functional organization structure, the project manager and all the resources work in the same company division, such as the sales and marketing department. Generally, the functional manager has more authority than the project manager. Advantages The functional structure gives you the least power as a project manager, but offers plenty of other advantages: It works well for small teams and small projects because the function has full control over the team members and other resources required. You can easily access the experts you need because they are in the same functional area. It's quick to get everyone together to resolve problems related to the project. You can limit the project communications tools you need to use because the team is relatively small and simple. You often get enthusiastic team members who are keen to work on the project because it provides them with career opportunities. Project work can be a great way to motivate your team. If you are handing the project over to a functional team, it's going to be the functional team you work in, which can make closing a project easier. Disadvantages Although this structure has plenty of advantages, also consider some downsides: Work takes place in a silo, which might mean that you don't have access to people outside your functional division. People on the project team might be more loyal to their department or team manager than to their work on the project, which can create conflicts. A large project can end up with a functional project manager from each function. It can result in work falling through the cracks if all project managers don't work harmoniously together. Functional work can be isolating in that you don't have an opportunity to network widely in the company. Maintaining a strategic focus can be harder. Project Organizational Structure Dedicated teams are put together to work on projects in a project organizational structure. The project manager probably has line management responsibility for the project team members. Examples of this would include large construction builds, but also corporate initiatives that require a dedicated team. The project manager has ultimate authority, reporting to the project sponsor and the project board. The individuals on the team work directly for the project manager. Advantages The obvious advantage of a project structure is that you have more control over the team, but other advantages are in place, too. Teams can have a strong sense of identity. It is the easiest structure within which to create a strong team culture. The whole team is focused on the team's goals, so conflict of loyalty exists with the day job for the people working on the project. Their day job is the project. Resources are dedicated to the project, so it's much easier to schedule work. You'll know when the team members are available and there's no risk that they'll be pulled off at short notice to business-as-usual work for another manager. Projects run in this structure are great environments for improving your project management skills as well as more technical leadership skills. Disadvantages The project structure is the easiest to work within but still has some drawbacks. Having a team dedicated to one project is an expensive commitment. It tends to be an option only on big projects. If you remove people from their functional jobs, they might find it difficult to go back, especially if the project is long. Project work is stretching, and returning to what you did before after a period working in a multidisciplinary environment on a new, challenging project isn't an appealing prospect for many people. Managing the transition of the team when you close a project becomes even more important. Sometimes closing a project can mean losing your job if the business has moved on and another role isn't available for you. By their nature, dedicated teams suck up resources to work on just one thing. They can limit the number of projects the company can do at any one time, especially when different projects require the same skills. Project managers in this type of structure do line management for their teams, too, which means spending time and effort on human resource tasks that you wouldn't have to do in other structures. If you enjoy this element of working with people, this factor could be an advantage. Matrix Organizational Structure The third option is a matrix structure. Resources are shared across both business-as-usual work and project work. It might mean having two managers or "dotted-line" responsibility to a project manager as well as to the team manager. The functional management line structure is normally in place first, and the project manager takes the dotted line. This structure splits power and authority between the functional or division team manager and the project manager. You'll need to use your negotiating skills to their full power! Advantages Matrix structures are very common because they allow managers to make flexible choices with how people spend their time. You'll likely work in a matrix environment at some point in your career. The advantages of this structure are as follows: Resources are used efficiently and can move around between projects as needed. You can work on lots of different things, sometimes in parallel—although this point can be argued as a disadvantage as well. Teams and individuals can be very responsive. If a new project comes along that has to take priority, it's easy enough to pivot and suddenly focus on something else. You can't do that easily in a project structure, which takes longer to disband and regroup. The structure requires that everyone use the same project management life cycle and methodology, so moving between projects is easy. People can join a project team with relatively little onboarding required when the terminology and processes are common. Disadvantages As with all setups, this one has its pitfalls, too. Despite it being a common structure, not many modern workplaces have cracked the problems of overload. Giving individuals too much to do can be easy if you don't have systems in place to manage and monitor the entirety of their workload. Other disadvantages are as follows: Conflict between projects is common because you might be fighting for the same resources as another project. The other project might have ring-fenced the best resources—the most appropriate people with the right skills—or their line manager might not make them available for project work. There can be some conflict between business-as-usual tasks and project work for individuals, especially when both managers are giving them different priorities. Resources might have a conflict about what development path they take for their future careers. Although you might know that you want to stay in project management, you may have the option of progressing into a more senior functional role or a more project-orientated role. But having lots of career options is a good thing, even if it does make for difficult decisions.

Moss McAdams

1. If you were Palmer at the end of the case, how would you respond? Palmer should have voiced his concerns regarding spreading his project members to think across other accounts. As soon as Palmer recognized the problems he should have addressed the issue. At the end of the case, Palmer should accept that the decision made by management was the best decision for all parties involved. Because Palmer is the project manager, it is his responsibility to handle all aspects of the project to include communication. More effective communication all around would have maybe lead to a different outcome. If I were Palmer, I would carefully think things through of what to say to Sands and Crosby so it doesn't come out offensive when addressing the issue of losing Olds as a valuable employee from the Johnsonville audit; in addition, stating some pros and cons of the project's completion based on Olds' commitment. All in all, a possible replacement that's just as good as Olds would suffice. 2. What, if anything, could Palmer have done to avoid losing Olds? First and most important he could have stood his ground. The conditions that were set forth in order to allow Olds to work on both projects were very clear. He was to work for Palmer from 1pm-5pm. He should have ensured that was the case the first time that there was an issue, there should have been a meeting to discuss why this would not be tolerated

Identify and briefly describe at least five of the ten primary characteristics of organization culture as discussed in the text.

1. Member identity : employees identify with the organization as a whole rather with their type of job or their field of professional expertise. 2. Team emphasis : the degree in which work activities are organized around groups rather than individuals. 3. Management focus : the degree in which management decisions take into account the effect of outcomes on people in the organization 4. Innovation and risk taking concern the degree to which employees are encouraged to be innovative and take risks. 2. Attention to detail concerns the degree to which employees are expected to exhibit precision, analysis, and attention to detail. 3. Outcome orientation concerns the degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve them. 4. People orientation concerns the degree to which management decisions take into consideration the effect of outcomes on people within the organization. 5. Team orientation concerns the degree to which work activities are organized around teams. 6. Aggressiveness concerns the degree to which people are aggressive and competitive rather than easygoing. 7. Stability concerns the degree to which organizational activities emphasize maintaining the status quo in contrast to growt

Identify in order from broadest to most specific, the six parts of the hierarchical breakdown of the WBS.

1. project, 2. deliverable, 3. sub deliverable, 4. lowest sub deliverable, 5. cost account, and work package

Identify the factors that should be considered to improve the quality of estimates for project times and costs.

1. Planning Horizon:estimates of current events are close to 100 percent accurate but are reduced for more distant events. 2. Project Duration: Time to implement new technology has a habit of expanding in an increasing, nonlinear fashion. 3. People: The people factor can also introduce errors in estimating times and cost. 4.Project Structure and Organization: Which project structure is chosen to manage the project will influence time and cost estimates. 5. Padding Estimates: In some cases people are inclined to pad estimates 6. Organization Culture: Organization culture can significantly influence project estimates. In some organizations padding estimates is tolerated and even privately encouraged. Other organizations place a premium on accuracy and strongly discourage estimating gamesmanship. 7. Other Factors: Finally, nonproject factors can impact time and cost estimates. For example, equipment down time can alter time estimates. National holidays, vacations, and legal limits can influence project estimates. Project priority can influence resource assignment and impact time and cost.

The typical Strategic Management Process includes four activities. Identify and briefly describe each activity

1. Review and define the organizational mission - the mission identifies "what we want to become." Mission statements change infrequently 2. Set long-range goals and objectives 3. Analyze and formulate strategies to reach objectives 4. Implement strategies through projects

What are Project Management Offices? Identify the three most common forms.

1. The Supportive PMO generally provides support in the form of on-demand expertise, templates, best practices, access to information and expertise on other projects, and the like. 2. in organisations where there is a desire to "rein in" the activities, processes, procedures, documentation, and more - a controlling PMO can accomplish that. 3. Directive PMO, This type goes beyond control and actually "takes over" the projects by providing the project management experience and resources to manage the project

Identify and briefly describe the three intended outcomes of integrating and linking projects with the Strategic plan

1. To aim for intended outcomes of clear organization focus, 2. best use of scarce organization resources, i.e. people, equipment capital 3. improve communications across projects and departments.

Identify and briefly describe the three forms of organizing projects using the matrix management approach.

1. Weak Form: In the "coordination" or "functional" or "weak" matrix (capacity delegation), the authority of the functional manager predominates and the project manager has indirect authority 2. Balanced Form: In the "balanced" matrix, the project manager sets the overall plan and the functional manager determines how work is to be done. 3. Strong Form: In "Project" or "strong" matrix organization (people delegation), the project manager has broader control and functional departments act as subcontractors to the project

Identify the five major characteristics of a PROJECT

1. an established objective 2. defined life span, there is a clear start and finish 3. usually involvement of several departments 4. typically, doing something that has never been done before 5. specific time, cost, and performance requirements

Identify and briefly describe the major methods of top-down estimating.

1. consensus, 2. ratio method, 3. apportion method, 4. function point, and 5. learning curves

Identify and briefly describe the three categories used to classify the priority of major project parameters.

1. constrain (the parameter is fixed), 2. enhance (the parameter should be optimized), and 3. accept (lower results are acceptable)

Identify and briefly describe the three elements that are traditionally used to measure the ultimate success of a project.

1. costs (budget), 2. time (schedule), and 3. performance (scope)

Identify and briefly describe the major methods of bottom-up estimating.

1. template method, 2. parametric procedure applied to specific tasks, 3. detailed estimates from the WBS work packages, and 4. phase estimating

What is more important to the successful completion of a project: the formal project management structure or the culture of the parent organization?

Both are important and an argument can be made for either structure or culture. The bias of the authors is that culture is more important than structure since it more directly impacts behavior. A positive organizational culture can compensate for the inherent weaknesses of the formal structure. For example a functional matrix can be effective if the norms and customs of the organization value teamwork and effective problem-solving. Conversely, a functional matrix is likely to be disastrous in a negative culture that encourages competition and looking out only for oneself. Alternatively, one could argue that an organization can circumvent a negative culture by creating an independent project team or a strong project matrix. In either case, the strategy is to insulate the project team from the dominant organizational culture and create a unique project subculture.

Identify and briefly discuss the three classes of projects usually found in an organizations project portfolio

Compliance- EMERGENCY, must do Operational- needed to support current operations Strategic- Support long run mission of the organization

Identify and briefly describe the four stages of the Project Life Cycle

Defining- objective established, major responsibilities assigned Planning- more effort, plans developed, budget and schedule as well Executing- Major portion takes place here Closing- deliver product to the customer, training them on how to use it

In project management terms, what is meant by "managing the trade-offs?"

During project execution decisions will be needed to balance the three success criteria; costs, schedule, and performance. Typically one will be degraded in order to maintain or improve another. Thus the criteria are traded off.

Should the project priority system be open and published? Why or why not?

Having an open priority system ensures that projects are selected based on their contribution to the organization. If it isn't open it can create 3 specific issues: 1) Implementation Gap 2) Organization Politics 3) Resource conflicts and multitasking

A Day in the Life of a Project Manager

How efectvely do you Think Rachel spenT her day? In my opinion, she spent her day efciently and eFecTvely. I believe Rachel is on top o± her responsibiliTes since she uses periods o± the day to relax and other parts o± the day to work hard. Another posiTve is that she helps manage projects that are ±alling behind schedule. She has very good planning skills. She is able to anTcipate both morning and evening events and Tmelines. However, I do think there could be a breakdown in communicaTon since there is no weekly meeTng. Weekly meeTngs are not always necessary but I believe that in the beginning stages o± a project the team needs to meet at least once a week so everything could get ironed out without losing anyone.

What are the issues around padding estimates?

If everyone at all level of project add a little padding, the project duration and cost are overstated

Under what conditions would the top-down approach to estimating project times and costs be the best choice?

In the early stages of a project to help develop the initial plan, in making strategic decisions, in projects of high uncertainty, in small internal projects, or in projects with an unstable scope

What is meant by "Scope Creep" and why is it significant to project managers?

It is the gradual expansion of project deliverables to the point that overall project constraints (costs and schedule) can no longer be met

How does the culture of an organization influence the quality of estimates?

Organizations vary in the importance, some say it isn't possible to estimate the future, where other organizations say its the bedrock

Describe what it means that a project manager must work with diverse troupe of characters

Project managers are typically the link to the customer and must manage the tension between customer expectations and what is feasible and reasonable. They provide direction, coordination, and integration to the project team, which is often made up of par-time participants loyal to their functional departments. Often times, project managers must work with many different types of people, such as vendors, suppliers and subcontractors.

"Politics and project management should not mix." Agree or Disagree and support your position

Projects and politics invariably mix and effective project managers recognize that any significant project has political ramifications. A good project selection process will minimize the impact of internal politics

Identify and briefly describe the five characteristics of effective objectives

Specific, measurable, Assignable, Realistic, Time Related

Identify and briefly describe the five steps in defining a project.

Step 1: Defining the project scope This step involves defining the project goals, deliverables and/or product or service for the client/customer. Step 2: Establishing the Project Priorities Project priorities refer to the importance given to specific segments of the project. E.g. Cost (Budget), Time, Performance (Scope). Step 3: Creating the WBS The outcome of subdividing the work of the project into smaller work elements is called the WBS. Step 4: Integrating the WBS with the organization This is the process of linking the organizational units responsible for performing work. The outcome of this process is the organization breakdown structure. Step 5: Coding the WBS for the information system A coding system is used to gain maximum usefulness of a breakdown structure. The codes are used to define levels and elements in the WBS, organization elements, work packages and budget and cost information

What is an OBS and how would you use it to plan a project?

The OBS is the process of defining which organization units are responsible for performing the work outlined in the individual work packages

What is a Project Priority Matrix and how would you use one?

The Project Priority Matrix is a graphic representation classifying the major project parameters of time, performance, and cost according to their priority. It is used to assist in making project trade-off decisions

What is a Responsibility Matrix and how would it be used in project management?

The RM summarizes the tasks to be accomplished and who is responsible for what on a project. It is used to ensure that all participants understand and agree on their assignments

What is meant by a work breakdown structure and how does it help manage projects

WBS is the logical subdividing of major activities into smaller elements. It is useful to ensure complete planning of a project as well as a basis for monitoring progress

In what situations would you use a process breakdown structure rather than a work breakdown structure?

The output of scope management is a specification that may be presented as a product breakdown structure (PBS) showing the deliverables and a work breakdown structure (WBS) showing the work required to produce them

What is the purpose of an Organizational Culture Diagnosis Worksheet?

The worksheet is a tool to help convert an organization's culture. It is composed of four parts, Physical Characteristics, Public Documents, Behavior, and Folklore

Why is profitability alone not an adequate measure of a project's value to an organization?

Today management is interested in identifying the potential mix of projects that will yield the best use of human and capital resources to maximize return on investment in the long run. Factors such as researching new technology, public image, ethical position, protection of the environment, core competencies, and strategic fit might be important criteria for selecting projects.

Under what conditions would the bottom-up approach to estimating project times and costs be the best choice?

When low cost, efficient estimates are needed, when time and cost are important, whenworking on a fixed price contract, or when the customer wants details

What are the two major shortcomings of using the Checklist approach to project selection?

fails to: 1. determine the relative importance of the project 2. compare projects to other potential projects

List five elements in a function point count process.

inputs, outputs, inquiries, flies, interphases

In terms of project management, what is a deliverable and give an example.

something produced or provided as a result of a process

Purpose of a scope statement

to clearly define deliverables for the customer - To focus the project on sucessful completion of its goals - It is to be used by the project owner and its participants as a planning tool & for measuring project objectives