Quiz 4

What constitutes Quality?

"Quality is the degree to which the project fulfills requirements"

communication management plan

"The Communications Plan is the process of developing an appropriate approach and plan for project communications activities based on the information needs of each stakeholder, project team and needs of project" Inputs to this plan include: oProject Charter oResource Management plan oStakeholder Engagement plan oProject Documents • Requirements Documentation • Stakeholder Register oEnterprise Environmental Factors oOrganizational Process Assets "Project Managers spend 90 percent of their time communicating!" Communication is more than just "status reports" Examples of Communication Other Than status updates: -Internal Communications oWork Schedules/Plans oConflict resolution/mediation oNegotiating oExpectations -External Communications oMedia promotions touting the good this project will bring to the community oCommunicating potential projects risks and risk mitigation plans oAsking stakeholders what they need oNegotiating A basic concept of communication is that communication should be: efficient (provide only the information needed) and effective (providing information in the right format at the right time) oTo create a Communication Plan you need to determine the Stakeholders requirements oDifferent Stakeholders have different communication requirements oDon't just communicate to communicate. •What is the Purpose of the communication? •What value is it adding? oAsk people what information they want and when oUse multiple methods of communication •How do people want to be communicated to? oRemember to include communications to team member's supervisors oHave a system for storing, maintain & retrieving comm. oConsider how location, culture, security, privacy & language might impact the communication oRealize that communication is two way! • How will you receive information / communication? oPlan communications to all stakeholders

If a project has a 60% chance of a $100,000 profit and a 40% chance of a $100,000 loss, what is the Expected Monetary value for this project? a.$100,000 profit b.$60,000 Loss c.$20,000 profit d.$40,000 loss

(.60*100,000 - .40* 100,000) = 20,000 profit

We can calculate how many channels of communication are needed given the size of the team

(N*(N-1))/2 N=number of people

Earned Value Analysis(EVA)

(aka Earned Value Management, EVM) is a way of managing projects by measuring performance and progress "Looking at the amount of work done so far in the project, How much money were we supposed to have spent?"

Planning process group -> project cost management (associated processes in parentheses)

(plan cost management, estimate costs, determine budget)

Planning process group -> project risk management (processes associated in parentheses)

(plan risk management, identify risks, perform qualitative risk analysis, perform quantitative risk analysis, plan risk responses)

EVA example

-> on doc

Calculating schedule and cost variance

-> on word doc

Calculation of risk example

-> on word doc

Decision tree

-> on word doc

Earned Value Example

-> on word doc

Failure Mode Effect Analysis (FMEA)

-> on word doc

Plotting Schedule and Cost Variance

-> on word doc

Probability/Impact Matrix

-> on word doc

Risk Management PlanDefinitions for Probability & Impacts

-> on word doc

How do you know your communication was received & understood the way you intended it to be understood?

-> use communication types to make sure everyone got the same memo

EVA in MS Project has two options for calculating earned Value

1. % Complete (based on time) 2. % Physically Complete (based on actual physical work completed) Earned Value marries Time with Money Determining the EV involves collecting data on the percent complete for each work package and then converting this percentage to a dollar amount by multiplying the Total Budgeted Cost of the work package by the percent complete. (Gido & Clements)

4 responses to negative risks

1. Avoid: To increase the impact or probability of an opportunity. Ex. Say we have projects taking place in different locations and in one location they come up with a better way of doing something. We then decide to adapt this same procedure to other aspects of the project 2. Transfer: Transferring ownership of a threat to a third party to bear and/manage the risk if it occurs Ex. Fire insurance, auto insurance 3. Mitigate: Action(s) taken Reduce the probability of occurrence or impact Ex. Training is provided to increase the level of expertise in writing a programming language 4. Accept: Acknowledging the existence of a threat but no proactive action is taken Ex. A November outdoor wedding is planned in Arizona. While there is a threat of rain, research by the bride shows only a 5% chance of rain occurring during the month of November in Arizona, so she does not rent a tent

4 responses to positive risks

1. Enhance: To increase the impact or probability of an opportunity. Ex. Say we have projects taking place in different locations and in one location they come up with a better way of doing something. We then decide to adapt this same procedure to other aspects of the project 2. Share: Transferring ownership of an opportunity to a third party. Ex. Sharing opportunities with a third party so both parties benefit 3. Exploit: Used for hi-priority opportunities where the organization wants to ensure the opportunity is realized Ex. If we have three teams working on different aspects of the project and one team finishes ahead of schedule we can allocate those workers to the other two teams 4. Accept: Acknowledging the existence of an opportunity Ex. There is little chance to enhance, share or exploit the positive risks.

3 areas of quality

1. Plan Quality Management 2. Perform Quality Assurance 3. Control Quality

Developing a project management plan

1. Quality Plan (Construction QA/QC) 1.1 Review of Contract Manager's QA Plan 1.2 Construction Standards 1.3 LEED Certification Responsibilities 1.4 Inspections 1.4.1 Self Inspections 1.4.2 Independent Inspections 1.5 Coordination with Utilities & Public Agencies 1.6 Audit Provisions 1.7 Retaining Construction Professionals & Contractors 1.7.1 Due Diligence 1.7.2 Qualifications 1.8 Safety Programs 1.9 Documentation of QA/ QC Procedures 1. Quality Plan (Design QA/QC) 1.1 Performance Criteria & Standards 1.2 LEED Certification Responsibilities 1.3 Coordination Amongst Design Professionals 1.4 Retaining Design Consultants 1.4.1 Due Diligence 1.4.2 Qualifications 1.5 Independent Design Review 1.5.1 Design Phases 1.5.2 Sign-Off 1.6 Responsibilities for Obtaining Permits 1.7 Documentation of QA/ QC Procedures

Environmental Plan (part of project management plan)

1.0 Development of Environmental Plan 1.1.1 Site Environmental Assessment 1.1.2 Hazardous Materials 1.1.2.1 Notification Process of Discovery 1.1.2.2 Remediation Process 1.1.2.2.1 Retain Outside Consultants 1.1.2.2.1.1 Qualifications 1.1.2.2.1.2 Due Diligence 1.1.2.2.2 Permits 1.1.2.2.3 Record Keeping & Reporting 1.1.2.2.4 Guard Against Cost Overrun & Delays

Resource management plan

1.0 HR/Skills Assessment Project Organization Chart Roles & Resp. 1.1 Project Management Office 1.1.1 Outside Consultants 1.1.1.1 Outside Project Mgmt. Consultants 1.1.1.2 Construction Team 1.1.2 Design Service Providers 1.1.2.1 Design Architect 1.1.2.2 Architect of Record 1.1.2.3 Structural Engineer 1.1.2.4 Mechanical, Electrical, Plumbing Engineer 1.1.2.5 Civil Engineer 1.1.2.6 Sustainability Consultant 1.1.2.7 Acoustic Engineers 1.1.2.8 Others 1.0 Project Equipment Assessment 1.1 Machinery 1.1.1 Cranes 1.1.2 Backhoes 1.1.3 Fork Lifts 1.1.4 Others 1.2 Tools 1.2.1 Saws 1.2.2 Drills 1.2.3 Sanders 1.2.4 Hand Tools 1.2.8 Others 1. Site Safety Plan 1.1 Contractor Safety Plan Review 1.2 On Site Safety Meetings 1.3 External Communications 1.4 Site Security Plan 1.5 Site Protection Plan 1.5.1 Fencing 1.5.2 Scaffolding 1.5.3 Adjacent Properties 1.5.3.1 Neighboring Properties 1.5.3.2 Sidewalks / Alleyways 1.6 Emergency Preparedness Plan 1.7 Reporting Procedures 1.7.1 Monthly Status 1.7.2 Incident Reporting

Planning project cost management - estimating costs

3 Point Estimating: 1. Triangular Distribution: (O + M + P) ÷ 3 2. Beta Distribution: (O + 4M + P ) ÷ 6 Heuristics: Generally accepted practices or accepted rule Example: Planning is always about 20 percent of the total project length Analogous Estimating (Top Down): Can be used for cost as well as time estimating. Uses similar previous projects based on expert opinion Parametric Estimating: Looks at the relationships between variables on an activity to calculate time or cost estimates. Example: timer per line of code or time per foot or time per installation oRegression oLearning Curve

Your team has come up with potential 400 risks and 20 major causes to these risks? During the project planning the team cannot come with an effective way to mitigate or insure against a risk. It is not work that can be outsourced or eliminated. What is the BEST solution? a.Accept the risk b.Continue to investigate ways to mitigate the risk c.Look for ways to avoid the risk d.Look for ways to transfer the risk

A - accept risk b/c work can't be outsourced or eliminated so have no choice but to accept it

Resource Breakdown Structure (RBS)

A Resource Breakdown Structure is very similar to Requirements Breakdown Structure. It identifies major Resource Categories and breaks those categories down further

Earned value example

A project has a budget of $12 million and a 12 month schedule. Assume that money will be allocated (spent) equally each month over the course of the project until the 12th month. After 2 months the PM discovers that just 5% of the work is finished and $1 million has been spent. PV = $2 million EV = $2 million * .05 = $100K AC = $1 million CV = EV - AC = $100K - $1 million = -$900K CV % = 100 * (CV / EV) = 100 * (-900K / 100K) = -900% overrun SV = EV - PV = $100K - $2 million = .1 - 2 = -$1,900K or 1.9 months behind SV% = 100 * (SV/PV) = 100 * (-1.9/2) = -95% behind schedule Already $900,000 over budget Already 1.9 months behind CPI = EV/AC = $.1 / $1 = .1 SPI = EV/PV = $.1 / $2 = .05 Both are well below 1.0 So this project is behind schedule and is over budget Forecast Cost at Completion: FCAC = BAC ÷ CPI FCAC = $12,000,000 ÷ .1 = $120,000,000 Forecast Cost at Completion, assuming remaining tasks stay on track: FCAC = Cum Actual Cost + ( BAC - Cum. EV) FCAC = $1,000,000 + (12,000,000 - $100,000) FCAC = $12,900,000 To Complete Performance Index (TCPI): TCPI = (BAC - EV) ÷ (BAC - CAC) cum act. cost TCPI = ($12,000,000 - $100,000) ÷ ($12,000,000 - $1,000,000) TCPI = $11,900,000 ÷ $11,000,000 TCPI = 1.08 This indicates there is $11,900,000 worth of work remaining but only $11,000,000 left in the budget. Work must be done at an efficiency rate of 1.08 to get the project done within a budget of $12,000,000

Negative risk example

A weather event causes a delay in progress. A new city legislation prevents construction work in the city past 9pm, thus delaying the project completion

Quality problems

According to W. Edwards Deming, 85% of quality problems on a project are attributable to the management environment and the process in which the team utilizes.

A project manager analyzed the quality of risk data and asked various stakeholders to determine the probability and impact of a number of risks. He is about to move to the next process of risk management. Based on this information, what has the project manager forgotten to do? a.Evaluate trends in risk analysis b.Identify risk triggers c.Provide a standardized risk rating matrix d.Create a fallback plan

C - after analyzing risks want to rate risks and prioritizing those risks

Formulas

Cost Variance (CV)= EV - AC Schedule Variance (SV)= EV - PV Cost Performance Index (CPI)= EV ÷ AC Sch. Performance Index (SCI)= EV ÷ PV Est. at Completion (EAC)= BAC ÷ CPI Est. to Complete (ETC)= EAC - AC Variance at Completion (VAC)= BAC - EAC To Complete Performance Index (TCPI)= (BAC - EV) ÷ (BAC - AC) F'cast at Completion (FCAC)= BAC ÷ CPI

Which of the following is NOT a response type for Positive Risks? a.Exploit b.Enhance c.Accept d.Leverage

D - if positive risk want to exploit, enhance, and accept it

From a reporting standpoint you should determine in advance what specific kinds of reporting you will communicate

Examples: oStatus Reports compared to baseline •Variance Reports oProgress reports oEarned Value Reports oProjection/Forecast Reports oIssues

Forecasting example

Forecast Cost at Completion: FCAC = BAC ÷ CPI FCAC = $100,000 ÷ .81 = $123,457 Forecast Cost at Completion, assuming remaining tasks stay on track FCAC = Cum Actual Cost + ( BAC - Cum. EV) FCAC = $72,000 + (100,000 - $58,000) FCAC = $114,000 If project continues past period 8 without changing anything - will forecast higher cost that is over budget Assuming remaining tasks stay on task

There are essentially 4 primary categories of communication

Formal Written -> formal memo (company letterhead), writing about policy Formal Verbal -> meeting, assembly, message Informal Written -> emails, texts Informal Verbal -> unplanned meetings, communications outside of meetings

Activity Resource Requirements

Identifies the types and quantities of resources required for each activity in a work package

Degrees of quality

In addition to specifying "degrees of quality", such as the number of coats of paint, Standard procedures should be developed. For example, Procedures for how painting or electrical work is to be done

Individual Risk

Is an uncertain event or condition that, if it occurs, has a positive or negative effect on one or more project objectives

Overall project risk

Is the effect of uncertainty on the project as a whole, arising from all sources of uncertainty including individual risks, representing the exposure of stakeholders to the implications of variations in project outcome, both positive & negative

Project manager role

It is the Project Manager's job to ensure Quality is incorporated into the project! However, the Project Manager must keep a close eye on efforts to ensure team members are not providing extra quality, extra functionality, etc. than is required by the project As Project Managers we must constantly drive continuous quality improvement in practices, process, product deliverables.

Just in time (JIT)

JIT is as present in projects as it is in manufacturing. We want materials & resources delivered as they are needed. This places a heavy emphasis on supplier quality & consistency of service.

Formulas

ORIGINAL: CV = EV - AC SV = EV - PV CPI = EV ÷ AC SPI = EV ÷ PV REVERSE: EV = CV + AC EV = SV + PV EV = CPI x AC EV = SPI x PV

Risk management life cycle

Phases of Risk Management oRisk Identification oRisk Assessment •Quantitative Analysis •Qualitative Analysis oRisk Mitigation (prevent) •Prioritize •Create Risk Models oPlan Risk Responses (Risk Contingency) oRisk Monitoring and Control

Difference between Planned Value and Earned Value

Planned Value is the total of all work planned Earned Value shows how much of the budget and time (i.e. schedule) should have been spent, given the amount of work completed to a specific point in time. oIf the Planned value for a project is $500 then the sum of all work packages planned for the project is $500

Definition of Project Cost Management

Project Cost Management includes the processes involved in estimating, budgeting, financing, funding, managing and controlling costs so that the project can be completed within approved budgets

Resource management plan

Project Resource Management includes the processes to identify, acquire, and manage the resources needed for the successful completion of the project Plan Resource Management is the process of defining how to estimate, acquire, manage and utilize physical and team resources

Planning process group -> knowledge areas (and associated processes in parentheses)

Project cost management (plan cost management, estimate costs, determine budget) Project quality management (plan quality management) Project resource management (plan resource management, estimate activity resources) Project communications management (plan communications management)

Suppliers

Quality is not just about the quality of our work on a project, but also the quality of our suppliers!

How is Quality injected into the project?

Quality must be planned in, not inspected in!

Quality Management Plan

Quality needs to be defined in the Planning Phase for all aspects of the project. For example: oWhat should the painted walls look like when completed? oHow many coats of paint are to be painted on the walls? oExcess paint should be scraped from all windows oWhat gauge should the electrical wiring be? oGrade of Steel oThickness of concrete oHi - Medium - Low quality items

Developing a risk management plan

Risk Transfer: Insurance • Professional Liability Ins. • CGI (Commercial General Liability Insurance) • OCIP (Owner Controlled Ins. Program) (Wrap-Up Ins.) • Builders Risk Bonding • Bondable Sub-contractors • Payment Bonds • Performance Bonds (Contract Bond) Identify Risks (examples): • Gov't/State/Town Approvals • Site Conditions • Delivery Delays • Contractor Default • etc...

Calculation of risk

Risks can only be managed if they are measured quantitatively oRisk is measured by assigning a monetary value to it oRisk is calculated by multiplying probability and impact of risk Risk Exposure = Risk Probability * Risk Impact Where: Risk probability is the likelihood that a risk could happen and risk impact is the effect on the project objectives if a risk event happens

SPI and CPI example

SPI = EV ÷ PV = $58,000 ÷ $67,000 = .87 CPI = EV ÷ AC = $58,000 ÷ $72,000 = .81 Doing poorly - behind schedule and over budget Only progressing 87% Only making .81 for every $1 This project is not doing well. This project is behind schedule and over budget SPI = .87 < 1.0 CPI = .81 < 1.0

More accurate version of variance

Schedule Variance (SV) EV - PV = SV Cost Variance (CV) EV - AC = CV

Earned Value Example

The project Manager calls a meeting and says, 6 months into this project and our CPI is 1.2 and our SPI is .89. We are getting 1.2 dollars for every dollar we put into the project but only progressing at 89% of the originally planned rate. What are our options? Project in trouble b/c SPI is behind schedule (less than 1) -> CPI is 1.2 -> under budget - good Options: 1.Increase productivity -Hire more people b/c under budget so can afford it -Acquire additional resources w/ extra budget money

Risk assessment model

The risk is identified in the upper left corner. The Probability of occurrence across the top and the impact if the risk actually takes place is listed on left side of the matrix. If you want, you can assign a point value to each. For example, low probability = 1, high probability = 3; low impact = 1, high impact = 3. This is one way to quantify/rank risks -> on word doc

SPI and CPI example

To Complete Performance Index (TCPI): TCPI = (TBC - EV) ÷ (TBC - CAC) cum act. cost TCPI = ($100,000 - $58000) ÷ ($100,000 - $72,000) TCPI = $42,000 ÷ $28,000 TCPI = 1.5 This indicates there is $42,000 worth of work remaining but only $28,000 left in the budget. Work must be done at an efficiency rate of 1.5 to get the project done within a budget of $100,000 Need to pick up pace 150% if complete on time

Positive risk example

You are working on an international project and funds are allocated in US dollars though most of the expenses are in the foreign currency. Shortly after the project begins the foreign currency depreciates significantly leaving a budget surplus Positive risk example - certain companies are doing well during covid - ex: alcohol companies -> making hand sanitizer, furniture companies doing well -> people staying home - ex: less pollution during lockdowns b/c no one driving or traveling

Which of the following is an OUTPUT of the Collect Requirements process? a.Requirements Traceability Matrix b.Project Scope statement c.Work Breakdown structure d.Change Requests

a. Requirements Traceability Matrix The Requirements traceability Matrix is an output to the Collect Requirements process

A new project manager is being mentored by a more experienced PMP certified project manager. The new project manager is having difficulty finding enough time to manage the project because the scope is being progressively elaborated. The PMP-certified project manager advises that the basic tools for project management, such as the work breakdown structure can be used during project executing to assist the project manager. Which one of the follow can the work breakdown structure be used? a.Communicating with the customer b.Showing calendar dates for each work package c.Showing the functional managers for each team member d.Showing the business need for the project

a.Communicating with the customer The WBS can be used to communicate with the customer. The MBS does not show dates or responsibility assignments. This information is found in the MBS Dictionary

The Project Manager may use [this], ______________, to make sure team members clearly know what work is included in each of their work packages a.The Project Scope Statement b.The Product Scope c.The WBS Dictionary d.The Schedule

c. The WBS Dictionary The MBS contains specific information on each work package (i.e. individual task)

RACI Chart

can be used to assign responsibilities R - responsible -> person working on activity A - accountable -> person w/ decision authority C - consult -> key stakeholder who should be included in decision or work activity I - inform -> needs to know of decision or action

Creating the project team - factors

oAvailability §Who is available and when are they available? oAbility §What competencies do people possess? oExperience §Have the people done similar or related work? Have they done it well? oInterests §Are the people interested in working on this project? oCost §How much will each team member be paid, particularly if they are contracted from outside the organization? oOrganizational structure §Recall functional organizations, matrix and project structures §Team Balance; strengths & Weaknesses oCollective bargaining agreements §Union contracts can require certain roles and reporting relationships oEconomic conditions §Hiring freezes, reduced training funds, lack of travel budget can restrict staffing options

Project cost management objectives

oDefine Project Cost Management oDifferentiate between cost estimation & Cost Budgeting oDescribe the Cost Management Process oDefine Earned Value oApply Earned Value

Risk management plan

oDetermine the amount and areas of potential risk oRisk Management efforts should be appropriate to the size and complexity of the project as well as experience level of the team oAre there prior Risk Management check lists or is this a completely new project? oWho will be involved and how will the team perform risk management

Planning project cost management

oIn larger projects, costs are managed at a higher level than at an individual activity level. oUnder the Control Account technique, related activities are grouped and their costs are managed as one unit Plan Cost Management is the process of defining how project costs will be estimated, budgeted, managed, monitored and controlled Estimating costs is the process of developing an approximation of the cos of resources needed to complete project work Determining the budget is the process of aggregating the estimated costs of individual activities or work packages to establish a baseline. It excludes management reserves

Poor quality leads to

oIncreased costs oDecreased profits oExcess-work oSchedule delays oLow customer satisfaction oIncreased risks oLow morale Failure!

Risk identification categories

oInternal Risks (Project Management risks) §Resources, project management structure, poor planning, cost and schedule risks, skill of PM & PM Team §Organizational: Inadequate prioritization of projects, funding, project conflicts, politics, cultural (resistance to change) oExternal risks §Legal and regulatory requirements, supplier and contractor risks, economy, external teams oTechnical risks §Quality, reliability, technology availability, complexity oUnforeseen *Unforeseen - small portion of risks we identify -> 10% or less *Internal - culture, team members, funding *External - economy, competition, lack of resources, equipment, duties *Technical - wifi connection, etc.

Acquiring project team

oNegotiating for the best possible resources oKnowing which resources have confirmed availability oHiring new employees oHiring contract resources oManaging risks of resources becoming unavailable oDevelop team building activities MEP = Mechanical, Electrical & Plumbing Team building activities build relationships, trust -> makes you realize you can't do it by yourself What type of Teams/Staff do you want? oDedicated oPart Time Switching costs - time required for individual to mentally switch tasks and get back to a productive level oPartnership oVirtual oJunior versus senior staff Consider productivity versus cost

Additional planning process components

oProject Change Management oConfiguration Management oScope Baseline oCost Baseline oPerformance Measurement Baseline oProject Life cycle description oDevelopment approach

Inputs to developing a Resource Management Plan include

oProject Charter oQuality Management plan oScope Baseline oProject Documents oEnterprise Environmental Factors oOrganizational Process Assets oExpert Judgment Enterprise Environmental Factors include: organizational culture, geographic distribution of facilities & resources, existing resources competencies, market conditions, talent pool

Planning process components -> knowledge areas

oProject Management Integration oProject Scope Management oProject Schedule Management oProject Cost Management oProject Quality Management oProject Resource Management oProject Communications Management oProject Risk Management oProject Procurement Management oProject Stakeholder Management

Risk assessment

oRisk Assessment templates oSeveral are used to help identify the "Risk Drivers" oSome templates are simple in that they help identify the Risk Drivers, while others will actually create a numerical value to weigh and then rank order each risk oAll Risk Assessment is looking at: §The probability of occurrence §The cost/impact of the risk should it occur

Some Additional Potential Sources of Risk

oScope oResources oQuality oSchedule oCustomer Satisfaction

Cost Management Plan

oThe Cost Management Plan is concerned with the costs of the resources needed to complete project activities oIt provides details on how to plan, manage, and control the project cost in relation to the cost baseline and manage the cost variances oThe techniques involved in estimating the cost of each project activity is similar to the ones used in estimating project time i.e. expert judgment, analogous, bottom-up estimating & reserve analysis are some of the techniques used in cost management

Risk management plan

oThe Risk Management Plan is a component of the Project Management Plan that describes how risk management activities will be structured and performed oRisk Management is something that should be planned for in advance and performed on a regular basis throughout the course of the project oProject Risk Management includes the processes of conducting risk management planning, identification, analysis, response planning response implementation and monitoring of risks oIdentify your client Risk Profile -Are they Risk Averse? (avoids risk) -What is their Risk Tolerance? (the level of risk that can be tolerated) -What is their Risk Threshold? (amount of acceptable risk) Inputs to Risk Management: oProject Information Background oOrganizational Assets oEnterprise Environmental Factors oIndustry Wide Factors oProject Charter oProject Management Plan oScope Baseline oNetwork Diagram oTime & Cost Estimates oSchedule Management Plan oCost Management Plan oCommunications Management Plan oQuality Management Plan oHuman Resources Management Plan oProcurement Documents oProject documents oStakeholder Register oRisk Management Plan oRisk Register oWork Performance Data & Reports Risk Management Plan Areas: oMethodology oRoles & Responsibilities oBudget oTiming oRisk Categories oDefinitions of probability of impact oStakeholder tolerances oReporting & Tracking *Methodology (data sources, specific approaches, tools that will be used to perform risk management) *Roles & Responsibilities (identifies the risk management team members for each type of activity described in the risk management plan & clarifies their responsibilities)

Staff management plan

oWhere will your staff come from? oResource Calendars (when are people available? When will they be used?) oRelease Plan (when will resources be released?) oStaff training needs (what kinds of training does the staff need?) oRecognition and Reward (how will you motivate your staff? What criteria will be used to recognize and reward?) oDevelop/obtain personnel assessment tools oCompliance (how will the project comply with any rules related to human resources?) oSafety (develop a work safety plan. What policies are in place to protect workers?

Quality Management Plan

refers to defining quality for the project and how quality will be achieved oIdentify quality practices & standards for the project oDetermine how you will measure to ensure quality standards are being met oCreate metrics, processes & standards where none exist oDetermine processes to be used on the project oWork to Improve the processes used on the project. oPerform Marginal Analysis or Cost Benefit Analysis to determine where benefits received from improving quality equals the incremental cost of improving quality oDeveloped in the Planning Phase oPerformed during the Execution Phase oMonitored in the Control Phase

Estimating Resource Requirements - Project Document Updates

§Activity List §Activity Attributes §Resource Calendar **All these are used to help estimate needed resources

Estimating Resource Requirements - Skill Matrices/Assessment

§List skills required by activity §List skills available by staff Skill categories: developed by looking at each activity and describing skills needed Skill levels: qualitative evaluation of skill level for each employee

Schedule Performance Index

§Measure of how close the project is to performing work as it was actually scheduled §SPI = EV/PV oSPI > 1 means ahead of schedule oSPI < 1 means behind schedule §Projected duration at end = old duration/SPI Schedule Performance Index (SPI) This index tells us if the project is behind or ahead of schedule. The project is progressing at X% of the rate originally planned. >1 is Good; <1 is Bad SPI = EV ÷ PV

Cost Performance Index

§Measure of how close the project is to spending on the work performed to what was planned to have been spent §CPI = EV/AC oCPI > 1 means under cost oCPI < 1 means cost overrun §Projected cost at end = original cost/CPI Cost Performance Index (CPI) This index tells us if the project is over or under budget. We are getting $XX worth of work out of every dollar spent >1 is Good; <1 is Bad CPI = EV ÷ AC

Key Components of EVA

§Planned Value (PV): As of today, it's the estimated value of the work planned to be done *Formerly called budgeted cost of work scheduled (BCWS) §Actual Cost (AC): This is the Actual Cost to date to complete all or some portion of the tasks. *Formerly called actual cost of work performed (ACWP) §Earned Value (EV): Value of work actually done by the status date *Formerly called budgeted cost of work performed (BCWP) *****These must all be in the same units if we are to measure cost performance

Key Components of EVA

§Schedule Variance (SV): Schedule Variance is the difference between Earned Value and Planned Value (i.e. SV = EV - PV) §Cost Variance (CV): Cost Variance is the difference between Earned Vale and Actual Cost (i.e. CV = EV - AC) §Budget at Completion (BAC) This is our estimate of the project cost §Estimate at Completion (EAC) This is our estimate of what the project will cost at the conclusion of the project once project begins. §Estimate to Complete (ETC) This is our estimate of how much MORE the project will cost from this point on to finish the project §Variance at Completion (VAC) As of today, how much more or under budget do we expect to be at the end of the project? §Earned Value (EV) Budget at Completion (BAC) x % of Actual Work Performed(completed) Determining the EV involves collecting data on the percent complete for each work package and then converting this percentage to a dollar amount by multiplying the Total Budgeted Cost of the work package by the percent complete. (Gido & Clements)

Prevention Strategies

§What is the best project mgmt. model to use §Requirements gathering (Expert Input) §WBS construction §Dynamic Risk Management Process §Scope Change Management Process §Milestone Trend Charts §Earned Value Analysis oSPI = EV / PV Schedule Performance Index = Earned Value ÷ Planned Value oCPI = EV / AC Cost Performance Index = Earned Value ÷ Actual cost SPI > 1.0 project is ahead of schedule; < 1.0 project is behind schedule CPI > 1.0 you are spending less than planned; < 1.0 you are spending more than planned.

Resources

•People (most difficult resource to schedule) •Facilities Planning rooms, conference rooms, etc. •Equipment •Money for project expenses Travel, room, meals, supplies •Materials Products, physical deliverables, parts

Common Risk Management Mistakes

•Risk identification is completed without knowing enough about the project •Risk identification ends too soon, resulting in a brief list if risks •Risks identified are general rather than specific •Whole categories of risks are missing (ex. Technology, culture, etc) •Some things considered to be risks are not uncertain, they are facts, and are therefore, not risks!