Project Management Midterm

· Responsibility matrix:

(linear responsibility chart) summarizes the tasks to be accomplished and who is responsible for what on a project. RM consists of a chart listing all the project activities and the participants responsible for each activity and those who assist the task/activity.

· Distinguish between top-down and bottom-up time & cost estimation:

-Top-down from executives to managers using group consensus or math. Someone who uses experience and/or information to determine the projects duration and total cost. Uses ratios, approtion, consensus, learning curves -Bottom-up form managers to executives, estimates of elements of the work breakdown structure. Serves as a checklist on cost elements in the WBS by rolling up the work packages and associated cost accounts to major deliverables. Using a hybrid approach, range estimates,

Characteristics of effect project teams

1. Share a sense of common purpose 2. Make effective use of individual talents and expertise 3. Have balanced and shared roles 4. Maintain a problem-solving focus 5. Accept differences of opinion and expression 6. Encourage risk taking and creativity 7. Set high personal performance standards 8.Identify with the team.

*· A baseline project plan

A concrete document and commitment; it represents the first real plan with cost, schedule, and resource allocation. The planned cost and schedule performance are used to measure actual cost and schedule performance. Serves as an anchor point for measuring performance.

· * A network diagram

A graphic flow chart of the project job plan. The network depics the project activities that must be completed, the logical sequences, the interdependencies of the activities to be completed, and in most cases the times for the activities to start and finish along with the longest path(s) through the network. Should flow from left to right, not drawn to a time scale, and can vary in how detailed the diagram should be.

· Work package (task or activity)

A work package is the lowest level of the WBS. Work packages are short-duration tasks that have a definite start and stop point, consume resources, and represent cost. Is the basic unit used for planning, scheduling, and controlling the project. 1.What - Defines work 2. How long - Time to complete work package 3.Cost - Time-phased budget to complete a work package 4.How much - Resources needed to complete work 5.Who - Single personal responsible for unit 6.How well - Monitoring points for measuring progress

· Activity-on-Arrow (AOA) network diagram

Activity-on-arrow method for drawing project networks. Uses an arrow to depict an activity.

· Activity-on-Node (AON) network diagram

Activity-on-node method for drawing project networks. Uses a node (rectangle) to depict an activity.

· A project sponsor

Any high ranking management who can endorse or lead support of the project

Gantt charts are

Are computer programmed bar charts that are easy to interpret and update.

· Change management

Change management involves reporting, controlling, and recording changes to the project baseline. Change management systems are designed to accomplish the following: Identify proposed changes List expected effects of proposed changes on schedule and budget Review, evaluate, and approve/disapprove changes formally Negotiate and resolve conflicts of change, conditions, and cost Communicate changes to parties affected Assign responsibility for implementing change Adjust master schedule and budget Track all changes that are to be implemented

Project Definition

Complex, non-routine endeavor that is limited by time, budget and resources to meet customer's needs.

· How national culture can impact a transnational project

Cultural factors: customs and social standards, values and philosophies, language, microcultural environments,etc. Ethnocentric perspective - the tendency to believe that one's cultural values and ways of doing things are superior to all others. Wanting to conduct business only on your terms and stereotyping other countries Ignoring the "people factor" in other countries by putting work ahead of building relationships

· A project lifecycle

Define<Planning<Executing>Closing Majority of the time is spent in Execution, but activities in other realms can be in parallel

***· How to manage when you have responsibility for results, but no formal authority

Definition of a Weak Matrix: PM are responsible for creating schedules, checklists, progression of project, collects information on status of work, and facilitates, monitor project completion. Functional managers mostly call all the shots, PM acts as a liason

*· The role of knowledge management in improving future time & cost estimates:

Draw on the expertise of those who are familiar with the project elements when creating a time & cost estimate. They will give an estimate based on experience and best judgment.

· Financial criteria for project selection

Financial Models for selecting a project, are the preferred method to evaluate projects. These models are appropriate when there is a high level of confidence associated with estimates of future cash flows. Example Payback model and net present value (NPV)(Examples Chapter 2 Slide 28-33) Unfortunately, pure financial models fail to include many projects where financial return is impossible to measure and/or other factors are vital to the accept or reject decision.

· The interaction between organization structure (e.g.: functional, dedicated project teams, matrix) and project management

Functional: Organization based on specific skills or service area are grouped together Matrix: Hybrid of functional and divisional, so one person may be doing multiple tasks Dedicated: specialists who work full time on projects, no outer distractions.

· A project portfolio system

Goal: proper prioritization and alignment of strategic goal for better decision making. Must include: Project classification, criteria, source of proposals, evaluation of proposals, and managing.

· Ways to reward teams & team members

Group and individual rewards work. Group can be used for bigger accomplishments, while individual rewards may include smaller recognitions. · Letters of commendation · Public recognition for outstanding work · Job assignments · Cash ·Flexibility (making exceptions to the rules)

· The danger of groupthink

Groupthink refers to the tendency of members in highly cohesive groups to lose their critical evaluative capabilities. This happens when there are pressures for conformity within a group and as a result,decisions are made quickly and without much consideration. Symptoms of groupthink include: Illusion of invulnerability - the team feels invincible and complacent about the quality of their decisions Whitewash of critical thinking - group discusses only a few solutions and fails to recognize the adverse consequences that could follow their preferred course of action Negative stereotypes of outsiders - group considers any outsiders who oppose their decision as the bad guys who are perceived as incompetent and malicious Direct pressure - when a team member does not speak out or question the direction in which the team is headed. This happens because the team is focusing on the speed of the project and avoiding conflict

· Stakeholder analysis:

Identify target groups, typical groups could be customer, sponsor, project team, project office, or anyone who needs project info to make decisions and/or contribute to project progress. Tool: analyze major project stakeholders' communication needs. How and what is the communication influenced by the stakeholders interest and power. Prioritize stakeholders by "power/interest" map. Example: keep unions and operation managers informed while only providing general information to the legal, PR, and other departments.

*· The interaction between organizational culture and time & cost estimation

In some organizations padding estimates is tolerated and even privately encouraged. Others place a premium on accuracy and strongly discourage estimating gamesmanship.

· The need to plan for changes to the project's scope, schedule & budget

It is important to have an alternative plan that can be used if changes occur to the project's scope, schedule, or budget. Having a plan will reduce or mitigate the negative impact that an unforeseen change can have on the project.

· Mapping dependencies

Mapping dependencies can be helpful when identifying social networks. These include stakeholders on whom the project depends for success. Example on page 348-349. Answers questions: · Whose cooperation will we need? · Whose agreement or approval will we need? ·Whose opposition would keep us from accomplishing the project?

Role of Project Manager

Marshall resources to the project Are linked directly to the customer interface Provide direction, coordination and integration to the team Are responsible for performance of the team

· How a project manager can manage conflict between team members

Mediate the conflict - manager intervenes and tries to negotiate a resolution. One of the keys in trying to find common ground. Arbitrate the conflict - manager imposes a solution to the conflict after listening to each party. Goal is not to decide who wins but to have the party win. Control the conflict - first try to reduce the intensity of the conflict by smoothing over differences or interjecting humor into the situation. If conflict continues, project assignments may need to be rearranged so that two parties are not working together. Accept it - in some cases the conflict will outlive the life of the project and the manager has to live with it Eliminate the conflict - this happens when the conflict is no longer tolerable. Either one individual (the clear villain) or both parties should be eliminated from the project. Their removal would give a clear signal to others on the team that this kind of behavior is unacceptable.

*· The potential for interaction between project constraints

One of the primary jobs of a project manager is to manage the trade-offs among time, cost, and performance. To do so, project managers must define and understand the nature of the priorities of the project. They need to have a candid discussion with the project customer and upper management to establish the relative importance of each criteria. One technique found in practice that is useful for this purpose is completing a priority matrix for the project to identify which criterion is constrained, which should be enhanced, and which can be accepted: Constrain: The original parameter is fixed. The project must meet the completion date, specifications and scope of the project, or budget. Enhance: Give the scope of the project. What criteria to optimize.(take opportunity to low cost and shorten schedule. Enhance means adding value) Accept: for which criteria is it tolerable not meet the original parameter.

· The interaction between organizational culture and project management

Organizational Culture: PM must compromise team values and behaviors of a company's employees.

· Why conflict is common in project teams

People often come from different backgrounds and job focuses with different methods that work best for them. Members will disagree over priorities, allocation of resources, the quality of specific work, solutions to discovered problems, and so forth. Conflict may be beneficial by forcing members to get more information to better serve the customer/project outcome.

· Management by walking around (MBWA)

Project management is a "contact sport." You initiate contact and begin to build a relationship with those players. MBWA reflects that managers spend the majority of their time outside their offices. There is a purpose/pattern behind the "wandering."

· Project constraints (e.g. scope, time & resources)

Projects are evaluated according to accomplishments, cost, and time.These three are also highlight one of the primary functions of project management, which is balancing the trade-off among time, cost, and performance while ultimately satisfying the customer.

*· The interaction between multi-tasking or task-splitting and time & cost estimation

Pros: If slack occurs, workers can multi-task or split time to work on other tasks. Multiple things can be handled at once, lessening costs and time spent communicating between workers. Cons: taking someone from the critical path would not be beneficial for time and money because those people are needed in their assigned tasked in order for the project to finished on time. Also, having workers multi-task can ruin focus and project communication, slowing down the project, reducing quality, and wearing out workers.

*· Best practices for time & cost estimation

Responsibility - estimates should be made by the persons most familiar with the task. Use several people to estimate Normal conditions - estimates should be based on normal conditions, efficient methods, and a normal level of resources Time units - all task time estimates need consistent time units Independence - Each task time estimate should be considered independently of other activities Contingencies - work package estimates should not include allowances for contingencies Adding risk assessment to the estimate helps to avoid surprises to stakeholders

· Project scope

Sets the stage for developing a project plan. Is the definition of the end result or mission of your project -a product or services for your client/customer. The primary purpose is to define as clearly as possible the deliverable(s) for the end user and to focus project on successful completion of its goals.

Project Stakeholders

Stakeholders are individuals and organizations that are actively involved in the project, or whose interests may be positively or negatively affected as a result of project execution or completion. They may also exert influence over the project and its results.

Project Plan

Start with the project network used for planning, scheduling, and monitoring project progress to do this start with WBS.

· Project duration

The Project Network provides an estimate of the project's duration (from start to finish). Project duration should be specified: hours, days, weeks, etc.

Total Slack (float)

The amount of time an activity can be delayed and not affect the project duration (TS = LS - ES or LF - EF)

· The concept of "influence as exchange" (law of reciprocity)

The basic principle is that "one good deed deserves another, and likewise, one bad deed deserves another." The primary way to gain cooperation is to provide resources and services for others in exchange for future resources and services. "Quid pro quo" (something for something). Or, "You scratch my back, I'll scratch yours."

Functional vs. Dysfunctional Conflict

The distinguishing factor between functional and dysfunctional is how the conflict affects project performance, not how individuals feel. Conflict is inevitable, so the key is for project managers to encourage functional conflict and manage dysfunctional conflict. Functional Conflict - members can be upset and dissatisfied with the interchange, but as long as the disagreement furthers the objectives of the project, then the conflict is functional. Dysfunctional Conflict - Sometimes functional conflict degenerates into dysfunctional conflict. This change occurs when technical disagreements evolve into irrational personality clashes or when failure to resolve an issue causes unnecessary delays in critical project work.

critical path

The longest activity path(s) through the network. The critical path can be distinguished by identifying the collection of activities that all have the same minimum slack. If an activity on the path is delayed, the project is delayed the same amount of time.

*· Project charter (Project Scope Checklist)*

The project scope is the keystone interlocking all elements of a project plan. You may need to use the following checklist to ensure that the scope definition is complete. 1.Project Objectives: define the overall objective to meet customers' needs. The project objective answers the questions what, when, how much and at times, where. 2.Deliverables: expected, measurable output over the life of the project. Deliverables and requirements are often used interchangeably. 3.Milestones: a significant event in a project. Should be natural, important control points in the project (easy to recognize). 4.Technical requirements: typically clarify either the deliverables or define the performance specifications (to ensure proper performance). 5.Limits and exclusions: limit of the scope should be defined. Failure to do so can lead to false expectations and to expending resources and time on the wrong problem. 6.Review with customers: the main concern here is the understanding of an agreement to expectations. Is the costumer getting what he/she needs. Clear communication in all these issues is imperative to avoid claims or misunderstandings

Scope Creep

The tendency for project scope to expand over time due to changing requirements, specifications, and priorities. (Avoid by writing carefully a scope statement).

· How a project manager's role changes over a project's lifecycle

There can be changes in competition of resources and staff, or if problems arise as the project unfolds

· A project team

They manage and complete project work They may also have a responsibility for project completion but also look at how project may affect individual lives

Work Breakdown Structure (WBS)

WBS is the output of hierarchical process (outline) that identifies the products and work elements involved in a project. Is used to help assure projects with the current organization and to establish a basis for control (outline the project with details). WBS defines the relationship of the final deliverable (the project) to its sub deliverables, and in turn, their relationships to work packages. Best suite for design and build projects that have tangibles outcomes rather than process-oriented projects.

· Non-Financial criteria for project selection

With this criteria, a firm may support projects that don't have high profit margin for other strategic reasons such as: To capture a larger market share To make it difficult for competitors to enter the market To develop an enabler product, which by its introduction will increase sales in more profitable products To develop core technology that will be used in next-generation products To reduce dependency on unreliable suppliers To prevent government intervention and regulation To restore corporate image or enhance brand recognition To demonstrate its commitment to corporate citizenship and support for community development

Stages of Team Development

forming, storming, norming, performing, adjourning

· Late Finish time (LF)

how late the activity can finish

· Late Start time (LS)

how late the activity can start

Early Finish time (EF)

how soon the activity can finish

· Early Start time (ES)

how soon the activity can start

Critical Path Method (CPM)

network path(s) that has (have) the least slack in common. Longest path through the activity network. Shortest expected time in which the entire project can be completed. Important because it impacts completion time, it is where you put your best people, where you pay extra extension when doing risk assessment, where you look when other managers asking to 'borrow' people or equipment, and where you look when you don't have time to monitor all activities.

Forward Pass

starts with the first project activity(ies) and traces each path (chain of sequential activities) through the network to the last project activity(ies). As you trace along the path, you add the activity times. You add activity times along each path in the network (ES + DUR = EF) You carry the early finish (EF) to the next activity where it becomes its early start (ES), or If the next succeeding activity is a merge activity, you select the largest early finish number (EF) of all its immediate predecessor activities.

Backward Pass

starts with the last project activity(ies) on the network. You trace backward on each path subtracting activity times to find the late start (LS) and late finish (LF) times for each activity. You subtract activity times along each path starting with the project end activity (LF - DUR = LS). You carry the LS to the preceding activity to establish its LF, or If the next preceding activity is a burst activity; in this case you select the smallest LS of its immediate successor activities to establish its LF.