MGT 4330 EXAM 1

Advantages of Team PM Structures

-simple -fast -cohesive -cross-functional integration -PM has all necessary resources

Organization Breakdown Structure (OBS)

Depicts how the firm has organized to discharge the work. Is an outcome of WBS

Multi-weighted scoring models

Each selection criteria is assigned a weight. Scores are assigned to each criterion for the project. Scores and weights are multiplied to come up with a total score against which to compare other projects.

Top Down Estimate

Estimates made by top management. Derive estimates from comparison to other projects, group consensus or mathematical models. Top MGT may have little knowledge of individual activities required for project.

Bottom Up Estimate

Gives customer the opportunity to compare low-cost, efficient methods with any imposed restrictions.

Work Package (WP)

Lowest level of WBS; work package is a short duration task that have a definite start and stop point

Responsibility Matrix (RM)

Summarizes the tasks to be accomplished and who is responsible for what project

What is a project? (PMBOK)

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

Work breakdown structure (WBS)

When the work of a project is successively divided into smaller and smaller elements. Outline of the project with different levels of detail.

Advantages of Functional PM Structures

-no change in the organization -maximum flexibility in the use of staff -In-depth expertise -Easy post-project transition

Estimating guidelines (how to improve accuracy)

-should be made by the person most familiar with the task -Use several people to estimate -All task times need to be consistent time units -assume normal condition and a normal level of resources. Do not consider conflicts in demand -Treat each task as independent of every other task. Look at plan as individual events, not chain -Estimates should not include allowances for contingencies -adding a risk assessment to task time can help avoid surprises

What are the benefits of portfolio management?

1. Build discipline into the project selection process 2. Link project selection to strategic metrics 3. Prioritize projects according to a set of common criteria 4. Allocate resources to projects that align with strategic direction 5. Justify killing projects that do not support organizational strategy 6. Improve communication and support agreement on local projects

10 most important skills of a project manager

1. People skills 2. Leadership 3. Listening 4. Good at verbal communication 5. Integrity, ethical behavior and consistency 6. Strong at building trust 7. Strong at building teams 8. Conflict resolution and conflict management skills 9. Understands balances and priorities 10. Critical thinking and problem solving

Project scope and checklist

1. Project Objective 2. Deliverables 3. Milestones 4. Technical requirements 5. Limits and exclusions 6. Reviews with customer

Phase/Life-cycle Estimating

Begins w/top down estimates and then refines estimates for phases of the project as it is completed. Ex: aerospace, IT, construction w/ incomplete design

Matheson & Matheson Classification of Projects

Bread and Butter: evolutionary improvements; high probability of success, low commercial value Pearls: revolutionary advances; high probability of success, high commercial value Oysters: technological breakthroughs with high commercial payoffs; low probability of success, high commercial value White Elephant: at one time showed promise but are no longer viable; low probability of success, low commercial value

Direct Project Overhead Costs

Can be tied to specific project deliverables or work packages. Ex: salary of project manager, temporary rental space for project team

Cost Account

The intersection of work packages and the organizational unit creates a project control point (cost account) and integrates work and responsibility

Why is an effective project portfolio management system necessary?

To ensure projects are aligned with strategic goals.

Characteristics of WPs in WBS

-Defines work -Identifies the time to complete the work package -Identifies a time-phased budget to complete the work package -Identifies the resources needed to complete the work package -Identifies a single person responsible for the work -Identifies monitoring points for measuring progress

Direct Costs

labor, materials, eqpt., etc. Chargeable to a specific work package

Characteristics of a Project? (PMBOK)

1. An established objective 2. A defined life span with a beginning and an end 3. Involvement of several departments and professionals 4. Doing something that has never been done before 5. Specific time, cost and performance requirements

What helps projects succeed?

1. Executive support 2. User involvement 3. Experienced project manager 4. Clear business objectives 5. Controlled scope 6. Standardized software 7. Clear basic requirements 8. Formal methodology 9. Reliable estimates 10. Other criteria, such as small milestones, proper planning, competent staff, and ownership

10 Cultural Characteristics and implications for projects

1. Member identity: members of the organization agree with the organization rather than the job or field 2. Team Emphasis: use of groups rather than individuals 3. People focus: Management takes impact of their decisions on people into account 4. Unit integration: parts of the organization are encouraged to coordinate and cooperate 5. Control: rules, policies and supervision used to control employees 6. Risk tolerance: employees are encouraged to be innovative and aggressive 7. Reward criteria: rewards based on performance 8. Conflict tolerance: employees are urged to air conflicts and criticisms 9. Means-end orientation: focus is on outcomes rather than techniques and processes 10. Open-system focus: Organization monitors and responds to change in the social environment'

Importance of Project Management

Project management has become a critical skill. Projects are the way all types of organizations accomplish their work. Critical to sustainable economic growth.

Reasons why estimates are off

-Interaction costs are not included in estimates; time necessary to coordinate activities isn't reflected in ind. estimates -Normal conditions don't apply -Things go wrong -Changes in project scope and plans -Overly optimistic estimates -Strategic misrepresentation

Non-financial Criteria

-To capture larger market share -To make it difficult for competitors to enter the market -to develop an enabler product -to develop core technology -to reduce dependency on unreliable suppliers -to prevent government intervention -to restore corporate image or enhance brand recognition

Disadvantages of Team PM Structures

-expensive -upsets regular organization, internal strife -facilities are duplicated and resources are used inefficiently -limited technological expertise -difficult post-project transition

Disadvantages of Functional PM Structures

-lack of focus -poor integration across functional units -conflicts over project priorities in the competition for resources -slow

Classification Schemes

Compliance/emergency: needed to meet regulatory conditions or "must do" Operational: Needed to support current operations Strategic: Support organization's long-run mission

Financial Criteria

Payback Period: - project cost/annual savings - emphasizes cash flows - ignores time value of money - assumes cash inflows are only for the investment period NPV: Uses minimum rate of return to compute present value of all net cash inflows. Positive = good Negative = reject IRR: IRR is the discount rate which makes the NPV = 0 ie present value inflows = present value outflows. Higher IRR is better

Program

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