Project Management Exam 1
the 5 core PM process groups
Initiating, planning, executing closing monitoring and controlling at the planning and executing steps
cost estimating methods
expert judgement analogous (similar project) parametric (eg $ per sq foot) three-point estimating team decision making (Brainstorm) reserve analysis (contingency reserves) simulation
projects used to be _______ (customer-focused)...now they are increasingly ______ to organizations
external, internal
a project is a ________ endeavor undertaken to create a unique product, service or result
temporary
project manager's planning responsibilities
the PM will plan/provide goals and objectives, major milestones, requirements, ground rules and assumptions, time, cost, and performance constraints, operating procedures, administrative policy reporting requirements
sequence activities
1.57.01 1.57.01.01 1.57.01.02 etc.
challenges to PM
30% of all projects canceled midstream over half of completed projects came in up to 190% over budget over half of completed projects came in up to 220% late
A COST MANAGEMENT SYSTEM SHOULD BE IMPLEMENTED RIGHT AT THE ______ OF THE LIFE CYCLE OF THE PROJECT
BEGinning
program
a group of related projects
earned value management
a systematic process that uses earned value as the primary tool for integrating cost, schedule, technical performance (Scope) and risk management emphasizes prevention over correction (feedforward control,l) should be used continuously throughout the project
variance
any schedule, technical performance (scope) or cost deviation from a specific plan schedule variance: compares actual versus planned schedule progress...are you ahead of schedule or behind? cost variance: compares actual costs versus planned costs (budget)...are you under budget or over budget
operations
are ongoing and produce repetitive products, services, or results much like lindsey lohan
cost management includes
cost estimating, cost accounting, project cash flow, company cash flow, direct labor costing, overhead rate costing
project selection models
differ in terms of their: realism, capabilities, flexibility, cost, easy computerization
determine budget
estimate costs - determine budget - control costs the process of aggregating the estimated costs of activities or work packages to establish an authorized cost baseline
planning is an _______ process
iterative
organized chunks of work are known as
sprints
BCWS PV THANG
study the worksheet
CPM
study the worksheet
cost baseline
the cost baseline is a time-phased budget used to measure, monitor and control overall cost performance on the project
nature of project selection models
turn inputs into outputs, models are tools, inputs never fully describe the situation, outputs never fully describe the expected results managers are the decision makers
PV =
FV / (1 + k)^n DCF is simply discounting the future cash flows of competing projects so they can be compared today
monte carlo simulation
Monte Carlo simulation is a computerized mathematical technique that allows people to account for risk in quantitative analysis and decision making.
types of project selection models
nonnumeric models numeric models
project charter
a document that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities the approved project charter formally initiates the project
rolling wave planning
a form of progressive elaboration planning where the work to be accomplished in the near term is planned in detail, while the work far in the future is planned in less detailed form
kanban in 4 easy steps
a Japanese manufacturing system in which the supply of components is regulated through the use of a card displaying a sequence of specifications and instructions, sent along the production line. 1. visualize your work 2. limit work-in-progress with two hands you can juggle only few balls before you start dropping them. At 100% capacity you have minimal throughput. kanban is all about maintaining flow and eliminating waste. start by putting limits on columns in which work is being performed. WIP limits aim to enforce a high, smooth flow of work and eliminate different kinds of waste 3. don't push. pull instead! 4. monitor, adapt and improve
the flaw of averages
a classic case of the flaw of averages involves a statistician who drowns while crossing a river that is 3ft deep on average if it takes 1 hour, on average, to get to the airport, then if you leave home 1 hour before your flight, you will be late approx. 50% of the time
work package
a natural subdivision of cost accounts clearly distinguishes one work package from all others assigned to a single functional group contains clearly defined start and end dates that are representative of physical accomplishment limits the work to be performed to relatively short periods of time to minimize the work-in-process
project
a project is a temporary endeavor undertaken to create a unique product, service or result
wbs
a properly developed work breakdown structure makes the following possible: detailed planning can be performed, costs and budgets can be established, objectives can be linked to available resources in a logical manner, specific authority and responsibility can be assigned represents units of work at the lowest level where the work is performed. work package is a generic term used to identify discrete criteria a work package can be at any level of the wbs the 1.1.0, 1.2.0 thing
the triple constraint model
a triangle within a circle time on left angle, cost on right angle, performance (Scope) as base left side of circle = on time on budget and within scope right side of the circle = project success
senior management's planning responsibilities include
act as the negotiator for disagreements between project and functional management clarification of critical issues communication link with customer's senior management
ad of scoring models
allow multiple criteria structurally simple direct reflection of managerial policy easily altered allow for more important factors allow easy sensitivity analysis
bottom line - weighted scoring models
allow multiple objectives of the organization to be reflected as project selection criteria weighted scoring models are easily adapted to changes in management philosophy strategy and environmental changes do not suffer from the bias toward the short runt hat is inherent in profitability
precedence diagramming methods
arrow diagram method/critical path method program evaluation and review technique
incremental scope changes can be _____ but watch out for "_____ _____"
beneficial scope creep (uncontrolled changes or continuous growth in a project's scope)
monitoring & controlling
change control, validate scope, controls schedule, control costs, control quality, control communications/stakeholder engagements, monitor and control risks, control procurements
closing
close project or phase, close procurements
requirements - scope - wbs
collect requirements: the process of determining, documenting, and managing stakeholder needs and requirements to meet project objectives define scope: the process of developing a detailed description of the project and product create wbs: the process of subdividing project deliverable and project work into smaller, more manageable components
portfolio
collection of programs or projects that meet a business ned
progressive elaboration
continuously improving and revising a plan as more detailed and specific information becomes available
what information is used with project graphics
cost schedule and performance
project graphics =
data visualization useful for monitoring schedule/cost, control schedule/cost, expediting planning, eliminating idle timer, etc. ultimate purpose is to tell a story (well)
as time goes on cost and staffing level
decreases along with planning starting the project then organizing and preparing then carrying out the work (highest point on the arc) then closing the project
planning
define scope, create WBS, define/sequence/estimate activity durations, set cost/budget, plan quality, identify risk/perform risk analysis, plan procurements
project management plan
defines how the project is executed, monitored and controlled, and closed plan can be either summary level or detailed, and can be composed of one or more subsidiary plans
functional manager will plan/provide
detailed task descriptions to implement objectives, requirements, and milestones detailed schedules and manpower allocations to support budget and schedule identification of areas of risk, uncertainty, and conflict
weighted factor model (cadillac)
each factor is weighted relative to its importance a good way to include nonnumeric data in the analysis factors need to =1 all weights must be set up so higher values mean more desirable small differences in totals are not meaningful
ad profitability models
easy to use and understand based on accounting data and forecasts familiar and well understood gives a go/no-go indication can be modified to include risk
PPP steps
establish PMO identify project selection categories and criteria (funnels) identify the need, develop list of alternatives, evaluate alternatives, choose suitable projects, implement plans to execute selected projects collect project data assess resource availability reduce project and criteria set prioritize the projects within categories select the projects to be funded and held in reserve implement the process
estimate costs process
estimate costs - determine budget - control costs
dis advantages of matrix structure
expensive to maintain, conflict between who is in charge
unweighted 0-1 factor model
factors selected raters score the project on each factor each project gets atonal score main advantage is that the model uses multiple criteria major dis are that it assumes all criteria are of = importance
advantages of network scheduling
form the basis for all planning and help management decide how to use its resources allow for control of a project helps management evaluate alteratives given time delays, slack time, and resource constr5aints, etc.
functional manager's role
has the responsibility to define how the task will be done and where the task will be done (i.e. the technical criteria) the functional manager has the responsibility to provide sufficient resources to accomplish the objective within the project's constraints (i.e. who will get the job done) has the responsibility for the deliverable
multiple project challenges
how to make sure selected projects are closely tied to organizational goals and strategy how to ensure these many projects add value how to keep stakeholders happy
purpose of PPP
identify non-projects prioritize list of projects limit # of projects identify real options for each project identify projects with good fit (w/strategy) eliminate excessively risky projects eliminate projects that skip the formal selection process keep from overloading the organization's resource base
dis profitability models
ignore nonmonetary factors payback ignores time-value of money biased toward the short-term IRR can have multiple solutions nonlinear all are sensitive to errors
simple diagram
in circles get bread - get meat and condiments - put stuff on bread
project life cycle (single phase project)
initiation, planning, executing, monitoring & controlling, closing as time increases along the horizontal access resources increase along the vertical until they all drop off at maturation
executing
manage project work, perform quality assurance, acquire/develop/manage project team, manage communications/stakeholder engagement, conduct procurements
interface management
managing human interfaces within the project team managing human interfaces between the project team and the functional organization managing human interfaces between the project team and senior management managing human interfaces between the project team and the customer's organization, whether an internal or external organization
est. pitfalls
misinterpretation of the statement of work, omissions or improperly defined scope, poorly defined or overly optimistic schedule, inaccurate wbs, applying improper skill levels to tasks, failure to account for risks, failure to use the correct estimating technique proper prior planning prevents piss poor performance the seven p's
nonnumeric
models that do not return a numeric value for a project to compared with other projects these are not really models, but rather qualitative justifications for projects not all bad
numeric models
models that return a numeric value for a project that can be easily compared with other projects major categories = profit (discounted cash flow NPV and IRR), real options, scoring payback is the LEAST precise of all capital budgeting methods ($ not adjusted for TVM)
symptoms of a misaligned portfolio
more projects than management expected inconsistent determination of benefits competing projects "interesting" projects projects whose costs exceed benefits no risk analysis
two types of pricing policies
one-off one of a kind contract with little or no follow-on potential objective: win the contract, execute profitability relationship one of many contracts an entry point to larger follow up project contracts objective: win the contract, perform with excellence
PM coordinates and integrates the work of the _________ ________
operational islands management gaps (horizontal breaks in the triangle) + functional gaps: departmentalization (vertical breaks in the triangle) = operational islands if you do a cross-sectional
types of estimates
order of magnitude estimates (top down) made without any detailed engineering data, may use past experiences, accuracy +/- 35% within the scope of the project approximate estimates (top down) made without any detailed engineering data, may use previous similar projects, accuracy +/- 15% definitive estimates (grassroots buildup estimate) prepared from well-defined engineering data, vendor quotes, unit prices, a well-developed wbs etc, accuracy +/- 5%. da best.
project time management
plan schedule mgt. - define activities - sequence activities - est. activity resources - est. activity duration - develop schedule - control schedule
project management is the
planning organizing, directing, controlling of company resources to achieve project goals PM's initiate, plan, execute, monitor & control, and close they are also known as the interface manager
factors to consider for scope changes
process improvement, revenue or profits, potential spin-offs, customers' requests, change sin technology
initiating
project charter: a document that formally authorizes a project and documents initial requirements that satisfy stakeholders needs identify stakeholders
PMO
project management office: a management structure that standardizes the project-related governance processes and facilitates the sharing of resources, methodologies, tools and techniques
PPP
project portfolio process links projects directly to the goals and strategy of the organization means for monitoring and controlling projects
a project charter may include
project purpose, measurable project objectives, high level requirements, summary budget, summary milestone schedule, etc.
inputs used to create a project charter
project statement of work - a narrative description of the work to be accomplished business case (provides the necessary information to determine if the project will provide positive NPV, for example) a contract enterprise environmental factors organizational process assets
simulation
refers to an analytical method of repeated, random sampling, meant to approximate the behavior of a real-life system, especially when other methods are too costly or difficult to reproduce
PM maturity
refers to the organizational mastery of skills required to manage projects competently ways to measure: initial, repeatable, defined, managed, optimizing, ad hoc, abbreviated, organized, managed, adaptive most organizations do not do maturity well
project sponsor
relationship: objective setting, up-front planning, project organization, key staffing, master plan, policies, monitoring execution, priority-setting, conflict resolution, executive-client contact
organizaional strucures
relative influence on vertical functional then matrix then project functional influence in decision making then dual influence then project influence in decision making
dis scoring models
relative meausre linear in form can have large # of criteria unweighted models assume = importance
unweighted factor scoring model
replaces x's with factor score typically 1-5 scale column of scores is summed projects with high scores are selected each factor is weighted the same less important factors are weighted the same as important ones easy to compute just tool or average the scores
types of nonnumeric models
sacred cow (a project, often suggested by the top management, that has taken on a life of its own) operating necessity (a project that is required in order to protect lives or property or to keep co in op) competitive necessity ( project required in order to maintain the co position in the marketplace) product line extension (projects to expand a product line are evaluated on how well the new product meshes with the existing product line rather than on overall benefits) comparative benefit (projects are subjectively ranked ordered based on their perceived benefit to the co)
example subsidiary plans
scope management plan, requirements management plan, cost management plan, quality management plan, etc.
real options
selecting a project (with 0 or - NPV) may lead to opportunities that may not have been available otherwise opp to learn about new tech opp to gain access to new customers opp for a follow-on contract
traditional spreadsheet analysis uses a ____ _____ to represent uncertain or variable inputs
single value (like the average)
the s' curve
slow start, quick momentum, slow finish conventional representation of project progress
project management
the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements
IRR
the internal rate of return is the discount rate (k) where the PV of the cash inflows = the initial investment if IRR is > the firm's cost of capital (it's hurdle rate), then accept
wbs cautions
the more detailed the wbs,the more acurate costly it becomes - balance the two competing aims once the wbs is established, it forms the foundation for (scope, schedule, and cost) baselines - change is difficult and expensive wbs creation is an art - it is a planning/controlling/communication tool
develop project management plan
the process of defining, preparing and coordinating all subsidiary plans and integrating them into a comprehensive project management plan
inputs to the project plan
the project charter, outputs from other (organizational PM processes), enterprise environmental factors, organizational process assets
stretch-j curve
the project doesn't look like much until very near completion, ex. software, chemical processes, a cake
scoring models (the cadillac of all models)
the use of multiple criteria for project selection 1. unweighted 0-1 factor model 2. unweighted factor scoring model 3. weighted factor model
special problems - pricing
the work is priced out at the salary of those employees who will perform the work, and the cost is billed back the same way (ideal method, if possible) work is priced out at the department average, but all work performed is billed back to the project at the actual salary of those employees who perform the work (can be a problem if higher salary workers are used) work is priced out at the department average, and all work performed is charged to the project at the department average salary, regardless of who accomplished the work (easy to do, but not accurate)
cost est. are not blind luck
they should be well-thought-out decisions based on best available information, some type of cost estimating relationship, some type of cost model
purpose of project graphics
to monitor and control projects, and communicate project information to the intended audience
the results in a static, or deterministic, result that might be ________ __ __ _____ of possible outcomes
unrepresentative of the range
wbs level description
usually specified by the client and managed by the PM 1. total program 2. projects 3. tasks generated by contractor for inhouse control and managed by the functional managers 4. subtasks 5. work packages 6. level of effort
traditional waterfall style vs agile (scrum) style
waterfall : requirements - design - implementation - verification - maintenance scrum : that crazy green circle from the first powerpoint. Product Owner: The Product Owner should be a person with vision, authority, and availability. The Product Owner is responsible for continuously communicating the vision and priorities to the development team. It's sometimes hard for Product Owners to strike the right balance of involvement. Because Scrum values self-organization among teams, a Product Owner must fight the urge to micro-manage. At the same time, Product Owners must be available to answer questions from the team. Scrum Master: The Scrum Master acts as a facilitator for the Product Owner and the team. The Scrum Master does not manage the team. The Scrum Master works to remove any impediments that are obstructing the team from achieving its sprint goals. This helps the team remain creative and productive while making sure its successes are visible to the Product Owner. The Scrum Master also works to advise the Product Owner about how to maximize ROI for the team. Team: According to Scrum's founder, "the team is utterly self managing." The development team is responsible for self organizing to complete work. A Scrum development team contains about seven fully dedicated members (officially 3-9), ideally in one team room protected from outside distractions. For software projects, a typical team includes a mix of software engineers, architects, programmers, analysts, QA experts, testers, and UI designers. Each sprint, the team is responsible for determining how it will accomplish the work to be completed. The team has autonomy and responsibility to meet the goals of the sprint.
Waterfall
works best in construction/manufacturing works in environments with stable, relatively unchanging project requirements requires one phase to be completed before moving to the next developed by Benington in 1956
Agil (scrum)
works best in software development but is becoming more popular in other project environments works in environments with dynamic, changing project requirements like web software is iterative, team and requirements-driven uses repeated cycles of planning-execution-reflection
why do we need project management?
you can glean market demand, business needs, social needs, environmental considerations, customer requests, technological advances, and legal requirements