QM 6655 Midterm (Chapters 1, 2, 3, 4, 5, 10, 11, 16)

Resource conflicts and multitasking

Resource sharing leads to multitasking. Multitasking involves starting and stopping work on one task to go and work on another project, then returning to the work on the original task.

When the size and scope of the project do not warrant an elaborate WBS or OBS, one tool that can be used is

Responsibility matrix

Dedicated project structure

The project manager has full control The entire organization is organized in the form of projects The staff has only project work

Financial criteria for projects

These are appropriate when there is a high level of confidence associated with estimates of future cash flows.

The major strength of using a WBS and OBS

They can be integrated to create a project control point (cost account).

How does a WBS help the project manager?

This hierarchical structure facilitates evaluation of cost, time, and technical performance at all levels in the organization over the life of the project.

Compliance projects:

Those needed to meet regulatory conditions required to operate in a region - "must do" - also includes emergency projects.

Operational projects:

Those needed to support current operations. Designed to improve efficiency, reduce costs, and improve performance.

Program

a group of related projects designed to accomplish a common goal over an extended period of time

Project Life Cycle - Executing Stage:

a major portion of the project physical (and/or mental) work takes place the "deliverables" and end "product" of the project are produced time, cost, and specification measures are used for control forecasts are used to gauge subpart and overall progress change/configuration management takes place (if necessary). Status reports, changes, quality, forecasts

Project complexity

Time to implement new technology has a habit of expanding in an increasing, nonlinear fashion. Sometimes poorly written scope specifications for new technology result in errors in estimating times and costs.

Project sponsor

Typically a high-ranking manager who champions and supports a project.

Multi-weighted scoring project selection model:

Uses several weighted selection criteria to evaluate project proposals. Will include qualitative and/or quantitative criteria. Projects with higher weighted scores are considered better.

Communication for information needs

What information is pertinent to stakeholders who contribute to the project's progress?

Communication for sources of information?

When the information needs are identified, the next step is to determine the source of information. How will it be collected?

Project priority system

The process used to select projects. The system uses selected criteria for evaluating and selecting projects that are strongly linked to higher level strategies and objectives.

Project life cycle

The stages found in all projects— definition, planning, execution, and delivery.

Scope Creep

The tendency for the scope of a project to expand once it has started.

Payback method for selecting projects:

The time it takes to pay back the project investment. Does not consider the time value of money or the life of the investment.

Project structure and organization

Which project structure is chosen to manage the project will influence time and cost estimate.

Project

A temporary endeavor undertaken to create a unique product, service, or result..

White elephants:

Projects that at one time showed promise but are no longer viable.

WBS Dictionary

Provides detailed information about each element in the WBS. The dictionary typically includes the work package level (code), name, and functional description.

Two financial models for selecting projects:

payback method & net present value (NPV)

The communication plan is usually created by the _________ __________ and/or the __________ _________ in the early stage of project planning.

project manager, project team.

Bread and Butter projects

projects are relatively easy to accomplish and produce modest commercial value

Two major dimensions of strategic management:

responding to changes in the external environment and allocating scarce resources of the firm to improve its competitive position

Project management trade-offs

scope, cost, time

A WBS includes:

- Defines work (what). - Identifies time to complete a work package (how long). - Identifies a time-phased budget to complete a work package (cost). - Identifies resources needed to complete a work package (how much). - Identifies a single person responsible for units of work (who). - Identifies monitoring points for measuring progress (how well).

Matrix arrangement structure disadvantage

- Dysfunctional Conflict: The matrix approach is predicated on tension between functional managers and project managers who bring critical expertise and perspectives to the project. .- Infighting: Any situation in which equipment, resources, and people are being shared across projects and functional activities lends itself to conflict and competition for scarce resources. Infighting can occur among project managers, who are primarily interested in what is best for their project. - Stressful: Matrix management violates the management principle of unity of command. Project participants have at least two bosses—their functional head and one or more project managers. Working in a matrix environment can be extremely stressful. - Slow: In theory, the presence of a project manager to coordinate the project should accelerate the completion of the project. In practice, decision making can get bogged down as agreements have to be forged across multiple functional groups. This is especially true for the balanced matrix.

Matrix arrangement structure advantage

- Efficient: Resources can be shared across multiple projects as well as within functional divisions. - Strong Project Focus: A stronger project focus is provided by having a formally designated project manager who is responsible for coordinating and integrating contributions of different units. - Easier Post-Project Transition: Because the project organization is overlaid on the functional divisions, specialists maintain ties with their functional group, so they have a homeport to return to once the project is completed. - Flexible: Matrix arrangements provide for flexible utilization of resources and expertise within the firm.

Dedicated project structure disadvantage

- Expensive: Not only have you created a new management position (project manager), but resources are also assigned on a full-time basis. - Internal Strife: Sometimes dedicated project teams become an entity in their own right and conflict emerges between the team and the remainder of the organization. - Limited Technological Expertise: Creating self-contained teams inhibits maximum technological expertise being brought to bear on problems .- Difficult Post-Project Transition: Assigning full-time personnel to a project creates the dilemma of what to do with personnel after the project is completed.

Functional organization project structure disadvantage:

- Lack of Focus: Each functional unit has its own core routine work to do; sometimes project responsibilities get pushed aside to meet primary obligations. This difficulty is compounded when the project has different priorities for different units. - Poor Integration: There may be poor integration across functional units. Functional specialists tend to be concerned only with their segment of the project and not with what is best for the total project. - Slow.: It generally takes longer to complete projects through this functional arrangement. - Lack of Ownership: The motivation of people assigned to the project can be weak.

Functional organization project structure advantage:

- No change: Projects are completed within the basic functional structure of the parent organization. - Flexibility: There is maximum flexibility in the use of staff. Appropriate specialists in different functional units can temporarily be assigned to work on the project and then return to their normal work. - In-Depth Expertise: If the scope of the project is narrow and the proper functional unit is assigned primary responsibility, then in-depth expertise can be brought to bear on the most crucial aspects of the project. - Easy Post-Project Transition: Normal career paths within a functional division are maintained.

Dedicated project structure advantage

- Simple: Other than taking away resources in the form of specialists assigned to the project, the functional organization remains intact with the project team operating independently. - Fast: Projects tend to get done more quickly when participants devote their full attention to the project and are not distracted by other obligations and duties. - Cohesive: A high level of motivation and cohesiveness often emerges within the project team. - Cross-Functional Integration: Specialists from different areas work closely together and, with proper guidance, become committed to optimizing the project, not their respective areas of expertise.

Project considerations

- Size of project - Strategic importance - Novelty and need for innovation - Need for integration (number of departments involved) - Environmental complexity (number of external interfaces) - Budget and time constraints - Stability of resource requirements

Project communication plans address the following core questions

- What information needs to be collected and when? - Who will receive the information? - What methods will be used to gather and store information? - What are the limits, if any, on who has access to certain kinds of information? - When will the information be communicated? - How will it be communicated?

Major characteristics of a project

1. An established objective. 2. A defined life span with a beginning and an end. 3. the involvement of several departments and professionals. Across-the-organizational participation 4. Typically, doing something that has never been done before. 5. Specific time, cost, and performance requirements.

Four Activities of the Strategic Management Process:

1. Review and define the organizational mission. 2. Analyze and formulate strategies. 3. Set objectives to achieve strategy. 4. Implement strategies through projects.

Two reasons project managers need to understand organization's mission and strategy.

1. So they can make appropriate decisions and adjustments 2. So they can be effective project advocates.

A 6 month project delay can result in a _____ percent loss in product revenue share.

33%

Organizational Breakdown Structure (OBS)

A structure used to assign responsibility for work packages.

Organizational culture

A system of shared norms, beliefs, values, and assumptions held by an organization's members. The "personality" of the organization.

Project Office

A centralized unit within an organization or department that oversees and improves the management of projects.

Cost account

A control point of one or more work packages used to plan, schedule, and control the project. The sum of all the project cost accounts represents the total cost of the project.

Project charter

A document that authorizes the project manager to initiate and lead a project.

Work breakdown structure (WBS)

A hierarchical method that successively subdivides the work of the project into smaller detail.

Weak matrix arrangement

A matrix structure in which functional managers have primary control over project activities and the project manager coordinates project work.

Balanced matrix arrangement

A matrix structure in which the project manager and functional managers share roughly equal authority over the project. The project manager decides what needs to be done; functional managers are concerned with how it will be accomplished.

Strong matrix arrangement

A matrix structure in which the project manager has primary control over project activities and functional managers support project work.

Priority matrix

A matrix that is set up before the project begins that establishes which criterion among cost, time, and scope will be enhanced, constrained, or accepted.

Responsibility matrix (RM)

A matrix whose intersection point shows the relationship between an activity (work package) and the person/group responsible for its completion.

Net present value for selecting projects:

A minimum rate of return discount (i.e. 15%) is used to compute present value of all future cash inflows and outflows.

Process Breakdown Structure (PBS)

A phase-oriented grouping of project activities that defines the total scope of the project. Each descending level represents an increasingly detailed description of project work.

Sacred Cow

A project that is a favorite of a powerful management figure who is usually the champion for the project.

Acceptance criteria

A set of conditions that is required to be met before deliverables are accepted.

Phase Gate Model

A structure process to review and evaluate each project phase to determine whether to continue, revise, or cancel the project.

Organization Politics

Actions by individuals or groups of individuals to acquire, develop, and use power and other resources to obtain preferred outcomes when there is uncertainty or disagreement over choices.

Padding estimates

Adding a safety factor to a time or cost estimate to ensure the estimate is met when the project is executed.

Project management professional (PMP)

An individual who has met specific education and experience requirements set forth by the Project Management Institute.

Project Management Institute (PMI)

An organization of project management professionals from around the world, supporting and promoting the careers, values, and concerns of project managers.

Matrix arrangement structure

Any organizational structure in which the project manager shares responsibility with the functional managers for assigning priorities and for directing the work of individuals assigned to the project.

Agile Project Management

Approach that focuses on adaptability to rapid and unexpected change. (rolling wave) Works best in small teams of 4-8

Project Life Cycle - Closing Stage:

Closing includes three activities: delivering the project product to the customer, redeploying project resources, and conducting a post-project review. Train customer, transfer documents, release resources, evaluation, lessons learned.

Coding the WBS

Codes are used to define levels and elements in the WBS. Allow reports to be consolidated at any level in the structure.

Project Classificatoin

Compliance, strategic project, operational projects

The WBS is best suited for _______ and _______ projects that have tangible outcomes.

Design, build.

Communication for responsibility and timing

Determine who will send out the information.

Strategic projects:

Directly supports the organization's long run mission. Directed toward increasing revenue or market share.

Accept

For which criterion is it tolerable not to meet the original parameters ?

Three types of project management structures:

Functional organization, dedicated project team, Matrix arrangement.

Project portfolio

Group of projects that have been selected for implementation balanced by project type, risk, and ranking by selected criteria.

Oysters:

High risk, high value projects.

Communication for dissemination modes?

How is the information being disseminated to stakeholders?

Communication for stakeholder analysis

Identify the target groups

What does sociocultural approach involve?

Leadership, Problem solving, teamwork, negotiation, politics, customer expectations.

Pearls project

Low risk development projects with high commercial payoffs.

Work package

Lowest level of the WBS

People

People can influence the quality of time and cost estimates.

Process projects are driven by ____________ ____________, not by plans/blueprints.

Performance requirements.

What is the triple bottom line?

Planet, People, Profit

Two types of risk associated with projects:

Risks associated with the total portfolio of projects. Specific project risks that can inhibit the execution of a project, such as schedule, cost, and technical.

What does technical approach involve?

Scope, WBS, Schedules, Resource allocation, baseline budgets, Status reports.

Non-Financial criteria for project

Selecting project based on developing and maintaining core competencies.

Who is responsible for prioritizing projects?

Senior Management

Organizations with many ____ projects going on concurrently face the most difficult project management problems.

Small

Project Life Cycle - Defining Stage:

Specifications of the project are defined; project objectives are established; teams are formed; major responsibilities are assigned. Goals, Specifications, Tasks, Responsibilities.

Gold plating

The addition of any feature or enhancement not considered in the original scope plan or product description at any point in a project.

Project scope

The end result or mission of a project - a product or service for a customer/client. The purpose is to define as clearly as possible the deliverable(s) for the end user and to focus project plans.

Priority team

The group (sometimes the project office) responsible for selecting, overseeing, and updating project priority selection criteria.

Implementation gap

The lack of consensus between the goals set by top management and those independently set by lower levels of management. This lack of consensus leads to confusion and poor allocation of organization resources.

Project Life Cycle - Planning Stage:

The level of effort increases, and plans are developed to determine what the project will entail, when it will be scheduled, whom it will benefit, what quality level should be maintained, and what the budget will be. Schedules, Budgets, Resources, Risks, Staffing.

Checklist project selection model:

The most frequently used method in selecting projects. Uses a list of questions to review potential projects and to determine their acceptance or rejection.

Functional organization project structure

The organization's staff members are grouped by specialty Department will have its own projects The functional manager has the highest authority The role and authority of a project manager is little to none

Constrain

The original parameter is fixed

Strategic management

The process of assessing "what we are" and deciding and implementing "what we intend to be and how we are going to get there."

Milestones

an action or event marking a significant change or stage in development.

Enhance

given the scope of the project, which criterion should be optimized?

Planning horizon

the length of time on which a forecast is based.

Organizational culture

the set of values, ideas, attitudes, and norms of behavior that can impact estimates.