PROCESS: Task 5. Plan and manage budget and resources

Estimate Costs - Outputs

.1 Activity cost estimates = costs associated with each individual activity .2 Basis of estimates = range of possible estimates, confidence levels, by whom

Conflict resolution techniques

1. Confrontation 2. Compromise 3. Smoothing 4. Forcing 5. Withdrawal

A project has an approved project baseline schedule of 180 days and the baseline budget is US$250,000. After 21 days, the project has spent US$60,000 and earned value is US$75,000. What is the cost performance index (CPI) for this project? 0.8 0.75 1.25 1.02

75/65=1.25 CPI = EV/AC

Resource Management Plan

A component of the project management plan that describes how project resources are acquired, allocated, monitored, and controlled.

The project team is defining certifications, technical competencies, and soft competencies for people, machinery, advance visualization software, workstations for physicians, and other supplies for a complex project that must be implemented in 5 months. If the project team uses a resource breakdown structure (RBS), how will it help to organize and visualize the resources? (Choose three). By hierarchy By source By category By type By last name

A, C, and D. By hierarchy, By category, and By type. The resource breakdown structure is a hierarchical representation of resources by category and type.

A project manager learns that a functional manager is assigning a two-week task in another project to a team member. Loss of this resource for two weeks will jeopardize the project schedule. What should the project manager do? Review the resource management plan to determine how to negotiate with the functional manager. Submit a change request to the change control board (CCB) to obtain a replacement resource from another department. Meet with the project sponsor to discuss the priority levels of the two projects. Assign another team member to perform the work of the team member who will be missing for two weeks.

A. Review the resource management plan to determine how to negotiate with the functional manager. The project manager should review the resource management plan to determine how to negotiate with the functional manager. The resource management plan is used to help determine how resources are categorized, allocated, managed, and released. This will provide guidance as to how the project manager can negotiate with the resource's reporting manager.

A new project manager has been assigned to a global project team. In the next few days, the project team must create a resource breakdown structure (RBS) for the project. However, the resource management plan states that the RBS should be created and reviewed only at the beginning of the project. What should the project manager do first? Update the resource management plan. Update the project management plan. Update the resource breakdown structure. Update the work breakdown structure.

A. Update the resource management plan The resource breakdown structure should be revisited throughout the project to adjust for any changes in resource needs so the Resource Management Plan needs to be rectified first.

Estimate Costs - TOOLS

Analogous Estimating = top down, using previous projects parametric estimating = statistical relationship bottom up estimating = greatest level of detail, highly accurate PERT = 3 point estimating

A project manager identifies conflicts among local and virtual team members' understanding of the deliverables. How can the project manager resolve these conflicts? Ask the project sponsor to meet with the team By collaborating with team members to address the conflicts Host a mediation session that brings a degree of satisfaction to all team members By emphasizing areas of agreement rather than areas of difference

B. By collaborating with team members to address the conflicts Project Manager uses soft skills to balance conflicting and competing goals to achieve consensus and bring stakeholders to alignment on objectives, which is called collaborating.

A company outsources the execution of a project with a fixed-price contract to a supplier. During execution, the supplier agrees to deliver additional customer requirements that were not included in the contract. To fulfill the expanded scope, both parties add more resources to keep the project on the planned schedule. Which technique is being applied in this project? Fast tracking Crashing Resource leveling Lead and lag

B. Crashing If the scope increases without increasing the schedule, the crashing technique achieves compression by adding more resources.

A project is slightly ahead of schedule. However, the project manager was informed that a critical deliverable will not be available on time. If the project manager is able to crash the deliverable that is behind what would the impact be? Project warranty issues would result. Project costs and risks would decrease. Project costs and risks would increase. Rework would need to be performed.

C. Project costs and risks would increase Crashing a project will increase both costs and risks.

A project is delayed due to resource availability, which puts the project budget at risk. Which document should the project manager use to review and update resources? Requirements Traceability Matrix Work Breakdown Structure Resource Breakdown Structure Responsibility Assignment Matrix

C. Resource Breakdown Structure A resource breakdown structure is a hierarchical representation of resources by category and type. It should be revisited throughout the project to adjust for any changes in resource needs.

Cost Variance (CV)

CV = Expected Value - Actual Value

Determine Budget Tools

Cost Aggregation = rollup each activity cost to get cost of work package Funding Limit Reconciliation = project current run rate vs planned over the life cycle

The output of Determine Budget is a

Cost Baseline. A Cost Baseline is different from a Project Budget. !!!

Determine Budget OUTPUT

Cost baseline = project cost + contigencies (wheras proj. budget is poj. costs + managment reserves) Project funding requirements = what gets funding when & by how much

A project manager is developing a project management plan to submit to the project sponsor in two weeks. The project sponsor, however, wants to review the early resource estimates before the deadline. How should the project manager show this information? Work breakdown structure (WBS) Work breakdown structure (WBS) dictionary Statement of work (SOW) Resource breakdown structure (RBS)

D. Resource breakdown structure (RBS) The resource breakdown structure is a hierarchical representation of resources by category and type. It is the simplest way to gather information on groups of resources

Cost Performance Index

Earned Value / Actual Cost = 1 on budget >1 under budget = 100/50 <1 over budget = 50/100

Project setup costs are considered _____ costs, not overhead costs

Fixed

documents that help you visualize people and physical resources

RBS (Resource Breakdown Structure) Project Team Directory Resource Calendar RAM (resource assignment matrix)

Best type of power to use

Reward and Expert power Expert can take some time to establish, so in the early days it's either reward or formal. In a weak matrix, you probably can't use reward so expert is all you've got.

Schedule Variance

SV = Expected Value - Planned Value

Analogous estimation is a form of _______ estimation. It doesn't use "detailed" historical task breakdowns, it's a high-level comparison.

TOP-DOWN

When creating the Project Charter, provide a budget RANGE (which could be informed by analogous or parametric estimation, among others)

TRUE

Resource Management Plan could be broken down into a ___________ (which can include policies such as when to be onsite) and a ________ Management Plan

Team Management Plan Physical Resource

RAM (resource assignment matrix)

WHO does each project activity in the schedule is managed with the

Crashing project

adding extra resources so increases cost & risk

S-curve is to show the

cost baseline and remaining budget and time.

plan cost management OUTPUT

cost management plan : units of measure, level of accuracy , reporting formats, control thresholds

Resource Calendar i

dentifies the working days, shifts, business hours, holidays, etc. of resources. When starting Acquire Resources you consult this.

index

divide

If a stakeholder asks for a precise project budget before planning is done, tell them to wait until planning is ____! (even though a budget range might have been provided early on in the Project Charter)

done

cost types

fixed cost variable cost direct cost indirect cost sunk cost

In a matrix organization, the PM negotiates with the ______ for resources

functional manager. (PMO is not involved in staffing)

Project performance appraisals

how an individual is performing,

Team performance assessment

how the team is doing together

Identified risks are both an

input and an output of Estimate Costs

Project Team Directory

is a documented list of project team members, their project roles, and communication info.

RBS (Resource Breakdown Structure)

is a hierarchical list of team and physical resources related by category and resource type that is used for planning, managing, and controlling project work. Each descending level represents an increasingly detailed description of the resource.

Release Criteria

is about releasing HR team members. It's both the timing and method of releasing them.

tacit knowledge

knowledge that cannot be codified; concerns knowing how to do a certain task and can be acquired only through active participation in that task

explicit knowledge

knowledge that is easily communicated and available to everyone

CPI is calculated with ACTUAL costs, not estimated costs. A CPI of .5 means

only getting 50% of every dollar invested. It's not about progressing at a rate (that's SPI)

Control Resources is really about ________, whereas Manage Team is for ______, especially tracking performance and optimizing performance

physical resources people

Schedule performance index

rate of meeting project schedule Earned Value (actual sched.)/ planned value (planned sched) =1 on schedule >1 =ahead = 10% actually complete /5% planned complete <1 =5 actually complete%/10% planned complete = behind

Determine Budget makes use of the

resource calendar (Resource Management)

COST RISK =

risk that costs of project go higher than planned

Value analysis (different from EVM) is about

seeking ways to do the same work at least cost, aka decrease cost while maintaining the same scope.

Resource Histogram

shows the resources used per time period. You don't just send the Functional Manager the resource histogram, you have to talk it through with them and ask their opinions.

variance

subtract

Control Cost tools

to-complete performance index - tells us how much effort to finish project TCPI = (BAC-EV) /(BAC-AV) >1 work harder <1 doing well =1 same ** BAC = budget at completion

Plan and manage budget and resources OUTLINE

• Estimate budgetary needs based on the scope of the project and lessons learned from past projects • Anticipate future budget challenges • Monitor budget variations and work with governance process to adjust as necessary • Plan and manage resources