6120 Exam One

An activity with zero time duration used to express logic a unique numbering activity and start/finish a network schedule

Dummy

A list of activities preceding a given activity

PA list

A ___________ is the mean devised for attempting to reach a goal.

Plan

Change

Planned and conducted in uncertainty Changes are controlled by change control system Scope creep All changes will be formally documented.

Cultures of Organizations are reflected in their what?

Policies/procedures view of authority and relationships other factors

Accountability is what?

The sum of Authority and Responsibility, assures that a person is answerable for the satisfactory completion of an assignment

. When would it be appropriate to create a responsibility matrix rather than a full-blown WBS?

it would be appropriate to create a responsibility matrix rather than a full-blown WBS when the projects are small because the project which is vast and has vast scope requires elaborate WBS.

What is the total role of the Project Manager?

The planning, organizing, directing, and control of company resources for a relatively short-term objective that has been established to complete specific goals and objectives.

What covers introduction/background, technical description of project-an analysis, and timeline/milestones?

The statement of work.

Advantages of Stage/gate developed projects:

Activities performed concurrently Attuned to changes in market

An amount of work that can be identified so that we know what it involves and can recognize when it starts/finishes

Activity

All labor intensive work has a _____________ number

Base Efficiency Number It is the number of full time personnel at which the task is naturally most efficiently accomplished. Less than equal to or greater than one.

Planning:

Become completely familiar with all contract documents Develop the basic plan for executing and controlling the project. Direct the preparation of the project procedures. Direct preparation of the project budget.

Estimates the cost of individual work items and combing to get a project total. (smaller work items increase both cost and accuracy)

Bottom-up Estimating (Micro Estimating)

The three organizational types of a company:

Functional (traditional) Pure Project Matrix

What are the three types of Matrix Structured Organizations?

Functional-Matrix: authority lies with functional managers Balanced-Matrix: (classic) both project and functional share authority equally Project-Matrix: balance of authority strongly favors project management

What do projects usually have?

Funding limits, consumes resources, start/end date, specific objective w/ specific specifications

How is the Cost Baseline developed?

By summing estimated costs by period and is usually displayed in the form of an s-curve.

What are some types of Redetermination contracts?

Ceiling price, only downward adjustments Both increase and decrease some use more than one period

Long lead times can cause what?

Changes/redeterminations to plans to reflect inflation and cost of resources

The best way to improve estimates is how?

Collect and archive data on past project estimates and actual costs

What is the goal of the Project Manager

Completion of an activity within the constraints of time, cost, and performance With acceptance by the customer With minimum or mutually agreed upon scope changes Without disturbing the main work flow of the organization Without changing the corporate culture.

Three types of projects within a Project Portfolio

Compliance (mandatory) Strategic Operational

What are the main elements of Project Scope Management

Conceptual Development Scope Management Work Authorization Scope Reporting Control Systems Project Closeout

The four phases of the Project Life Cycle are ______________

Conceptualization Planning Execution (large man hours) Termination

Organizing

Develop organization chart for project Review project positions descriptions, outlining duties, responsibilities, and restrictions for key project supervisors. Participate in the selection of key project supervisors. Develop project manpower requirements. Continually review project organization and recommend changes in structure and personnel, if necessary

What is a disadvantage of a Fixed Price Contract?

Difficult and Costly to prepare.

What are some functional groups of an organization?

Engineering Operations Accounting Research Quality

What are the goals of Task Estimates?

Estimates of Calendar days Person days Budget Critical resources

A Connection between two or more activities and at the start/finish of a diagram-an event has no duration

Event

List some financial models that can be used for project selection:

Net Present Value Internal Rate of Return Return on Investment Payback period Expected commercial value Benefit to cost ratio

High risks typically stem from what?

New Technology development Unusual Approach No Previous experience, only training Unpredictable environment

What are some disadvantages of the functional structure?

No direct responsibility for projects - coordination is complex - no customer focal point - decisions made by most powerful

A method of drawing network schedules using circles of squares called nodes to represent activities

Node Diagram

Do not employ numbers at decision inputs, decision relies on other data

Non-numerical approach to selecting projects

Which organization structure has these disadvantages? costs technology suffers lack of technical interchange between projects lack of career continuity rules not always respected

Pure Project structured organization

How are clients able to get the minimum cost?

Putting work out for BIDS

What are some Work requirements/authorizations sent out?

Scope of work schedules budgets technical objectives

What is a time phased budget that is used to monitor and track cost performance of the project?

The Cost Baseline (typically an S curve)

Which organizational structure has: one boss - better technical control - effective w/ shared resources - clear career path - good personnel control

The Functional structure

What is the fundamental reason for an organizations existence called?

The Mission

For a project the contract is the basis of what?

The Specifications

If the project is described by a contract, the ________________ will be included in the contract.

The Statement of Work

What are some advantages of project organized structure

no departmental barriers shorter response time one boss of project customer focus effective integration of project

What are 5 resource planning inputs?

WBS Historical Info Scope Statement Resource Pool Desc. Organizational Policies

Why do Projects become Overrun?

Weather, Inadequate Requirements, resource shortage, priority changes, resistance from stakeholders, wrong project, improper tracking and control, inexperienced project manager/team

External Environmental Reasons of Project Failure

Weather, competitor, legal/policy barriers Solution: Stakeholder Management, Risk Management

What questions does a project objective answer? What would be an example of a good project objective?

What the project is, when the project should be finished, and how much it will cost

When does a cost estimate become a cost budget?

Whenever the estimate becomes time-phased

A process that sets a project's scope by breaking down its overall mission into a cohesive set of synchronous increasingly specific tasks.

Work Breakdown Structure

The ______________ is the cornerstone of Project Management.

Work Breakdown Structure (WBS)

External Organizational Reasons of Project Failure

Wrong project, resource shortage, priority change Solution: Portfolio Management, Risk Management, PMO (group)

Controlling stage is what?

measuring progress toward an objective, evaluating what remains, taking corrective actions

Projects are __________ and _________

temporary and unique

What is Project Management?

the application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations from the project.

Numerical approach to selecting projects:

use numbers as inputs for the decision process

What is a future target of end results that an organization wants to achieve?

Goal

Operations are _________ and ______________

Ongoing and repetitive

Finding a probably total project duration based on the sum of probably values

Stochastic process

The base estimating curves can be utilized to trade off ___________________

Time Cost and Resources

General management is the process of achieving Organizational goals by engaging what five major functions?

1. Planning 2. Organizing 3. Directing (leading) 4. Controlling 5. Change

What are the 7 steps of the formalized planning process?

1. What, how much, when 2. How (tasks/activities) 3. Who (of your own) 4. When, in what order (timing) 5. How much and when (budget) 6. How well (keep on track) 7. Repeat (controlling)

What is the criteria for a Project failure or overrun Project?

20% Late - 20% Over budget - 20% of business requirements not met

What are emergent properties?

Above and beyond the parts of a system. Systems can produce unintended consequences. (A cars parts won't doing anything till they're all together) If a system falls apart it looses emergent properties

A factor for the unexpected that is included in a proposal or an estimate.

A Contingency

Most companies are structure as what?

A Pyramid Top management, middle management, supervising, operations (laborers)

A project is _____________ (formal definition)

A complex, non-routine, one-time effort limited by time, budget, resources, and performance specifications designed to meet customer needs.

What is a system?

A recognizable whole which consists of a number of parts (called components or elements) that are connected in an organized way (the system's structure).

Uses the actual cost of a previous similar project as the basis of cost estimate

Analogous Estimating (Macro Estimating)

Splits money up amongst the WBS based off past projects

Apportion Method

What is required for each review point of a project?

Approval by senior management

A method of drawing network schedules using arrows to represent activities

Arrow Diagram

During change we _____________

Asses the four other functions to see how well they are doing

Responsibility is what?

Assuring that obligations are incurred by individuals within the organization effectively performing there specific assignments

A non-network-scheduling technique for scheduling

Bar Chart (Gantt Chart)

The number of full time personnel in which a task is done naturally most efficiently

Base Efficiency Nuber

A deterministic network scheduling technique from which we will determine the project's critical path

CPM (Critical Path Method)

What four things should be requested when getting an estimate?

Calendar Days Person (work) days Budget Critical Resources

An agreement between two parties wherein one part promises to perform a service and the part promises to do something in return.

Contract.

Typical nonfinancial selection models include what measurements?

Cost Potential ROi Time to market Developmental Risks Riskiness Government/policy restriction product durability

What is a time-phased budget that will be used to measure and monitor cost performance on the project?

Cost Baseline

Cost estimates Wbs Project Schedule Are inputs for what?

Cost Budgeting

Analogous Estimating Parametric Modeling Bottom-up Estimating Computerized tools are tools and techniques of what?

Cost Estimating

What are the following inputs for? WBS Resource Requirements Resource Rates Activity Duration Estimates Historical Info Chart of Accounts

Cost Estimating

Causes little incentive for contractor to control costs/schedule

Cost-Plus

What kind of contract attempts to relate profits to the uncertainties associated with achieving time, cost, and performance goals in large-scale development programs

Cost-plus Multiple Incentives

The contractor is reimbursed for all [allowable] direct costs and fixed amount to cover overhead and profit.

Cost-plus contract w/ fixed fee

Client shoulders the majority of Risk

Cost-plus; they will be forced to pay.

A tangible, verifiable work product.

Deliverable

Finding a total project duration based on the sum of known values

Deterministic process

Directing

Direct all work on the project that is required to meet contract obligations. Develop and maintain a system for decision making within the project team whereby decisions are made at the proper level. Promote growth of key project supervisors Establish performance objectives for project manager and performance goals for key project supervisors. Foster and develop a spirit of project team effort. Assist in resolution of differences or problems between department or groups on assigned projects. Anticipate and avoid or minimize potential problems by maintaining current knowledge of overall project status. Develop clear written strategy guidelines for all major problems with clear definitions of responsibilities and restraints.

True or false All projects no matter their size have a single cost baseline.

False, many, mostly larger ones have multiple cost baselines to measure different aspects of cost performance

Construction Project life cycle:

Feasibility Planning/Design Production Turnover/Startup

Under a _____________ contract, the contractor agrees to perform all work at a fixed price, as long as there are no changes to the scope or provisions of the agreement

Fixed Price

What are the two main types of contracts?

Fixed Price Cost-plus

Authority is what?

Granting individuals the authority so they can make final decisions for others to follow

A list of activities immediately preceding any given activity

IPA list

What are the four stages of risk management?

Identification Assessment Response Planning Tracking/Response

What is required across phases in a project?

Integration

PMBOK (Project Management Body of Knowledge)

Integration Management - Scope Management - Time Management - Cost Management - Quality Management - HR Management - Communications Management - Risk Management - Procurement Management

What are the disadvantages of the Matrix Structured Organization?

Multidimensional info dual reporting continuously changing priorities management goals differ from project goals potential for continuous conflict people do not feel they control their destiny

What are the four main sub-components of a project plan document?

Introduction Summary/Conclusion Management Technical

WBS methodology:

Managerial: Level 1: Project Level 2: Task Technical: Level 3: Subtask Level 4: Work package Level 5: Effort

What are the three sources of internal risk?

Market Risk Assumption Risk Technical Risk

What are some sources of external risk?

Market environment Gov. Regulations Interest/exchange rates physical environment resource supplier failure

Which organization structure is flexible easy to share resources good cooperation between dept's more input for decisions good discipline/specific knowledge effective integration of projects increased knowledge transfer between projects

Matrix Structured Organization

-Determining the organizational structure and selecting personnel immediately below his/her level. -Restructuring to meet demands by the environment. is what?

Organizing

The 10 primary characteristics/factors of culture:

Member identity Team emphasis Management focus Unit integration Control Risk tolerance Reward criteria Conflict tolerance Means versus end Open-system

What three things does a contract convey?

Method, cost/terms of payment, what is to be done

An event that has some special significance usually to management or client

Milestone

Advantages of Phased developed projects:

Minimize technical risk creates sense of urgency

Strategic Management requires strong links among:

Mission Goals Objectives Implementation of Strategy

Controlling

Monitor project activities for compliance with company purpose and philosophy and general corporate policies. Interpret, communicate and require compliance with the contract, the approved plan, project procedures, and directives of the client. Maintain personal control of adherence to contract warranty and guarantee provisions. Closely monitor project activities for conformity to contract scope provisions. Establish change notice procedures to evaluate and communicate scope changes. See that the plans for controlling and reporting on costs, schedule, and quality are effectively utilized. Maintain effective communications with the client and all groups performing project work

If quality is not prioritized it is assumed that it is the _________________ and cannot vary in final product

Number one priority

What are the main elements covered in the project scope checklist?

Objective Deliverables Milestones Technical Requirements Limits/exclusions Reviews w/ customer

The System Manager, with holistic view, keeps in mind what functions?

Objective/criteria environment resources components interactions management

Each project plan will have as a minimum :

Objectives Project Authority Management (Including Risk Management) Resources and Schedule Performance Measures and Assurance Change Control

Work generally involves either two things: (or two types of work categories)

Operations or Projects

What are the five ways or measurements to tell a status of an activity?

Opinion units Completed Start/end Milestones cost ratio

A stochastic network-scheduling technique

PERT (program evaluation and review technique)

Uses characteristics in a mathematical model to predict cost. Usually reliable with good historical info, parameters quantifiable and scalable

Parametric Modeling

Phase-end reviews are called what?

Phase exits, stage gates, kill points. They determine if project should continue and find/correct errors in a cost effective manner

-Setting forth the philosophy of the Organization (Company) -Initiating and guiding strategic and long range planning. -Establishing organizations objectives is what?

Planning

What is estimates of future events diminish in accuracy?

Planning Horizon

Name the factors that influence the quality of estimates:

Planning Horizon Project Duration People (skill,team,productive) Project Structure/organization Organizational Culture Activity Duration Estimates

Internal Reasons of Project Failure

Poor definition, poor tracking, technical barriers Solution: Risk management and Planning/Control

What is long duration projects increase the uncertainty in estimates?

Project Duration

A group of projects in a business that aim at strategic objectives, share resources, and compete for funding:

Project Portfolio

Includes the planned start and expected finish dates for the project elements that costs will be allocated to. It is needed to assign costs to the time period when the cost will be incurred

Project Schedule

Common forms of risk in projects

Resignation Inefficient Training Poor initial specifications Short on manpower

Expert Judgement and Alternatives Identification are tools for what?

Resource Planning

________ involves determining what physical resources and what quantities of each should be used to perform project activities.

Resource Planning

Issues within project screening/selection:

Risk (unpredictability) Commercial (market potential) Internal Operation Issues Addition factors: patent protection, impact to company image, strategic fit

A time-based arrangement of project activities

Schedule

What are the objectives to be prioritized in a project?

Schedule Costs Critical Resources Quality

A method to simplify drawing node diagrams

Sequence steps

A network-scheduling technique using monte carlo methods

Simulation

A detailed narrative description of the work required for a project.

Statement of Work

What is the difference between the summary plan in a proposal and the project plan.

Summary plan is for customer, project plan is for project team

A way of viewing the world in a holistic manner:

Systems Thinking

Three simple gauges of project sucess

TIME BUDGET PERFORMANCE

What are the five primary causes of risk?

Technical Risk Commercial Risk Financial Risk Execution Risk Contract/Legal Risk

A project is a system in that _____________

The components are affected by being in the system; The assembly does something; The project is greater than the sum of the components

What is risk a function of?

The likely hood of it occurring and the impact of it occurring.

True or flase on some projects especially small ones resource planning cost estimating and cost budgeting are viewed as a single process

True

Cost-Plus incentive Fee Contract:

cost based on a target cost and savings/overruns will be shared by the client and contractor

What does planning project work require?

definition of technical effort requirements for labor material tooling facilities funding

Leadership does what

directs and motivates people to attain the goal

What is the reason Project Management exists?

get the groups and different levels of each group to communicate, cross functionally, towards common goals and objectives