Project Management Exam 2
scope creep
Expanding the scope of the project by making changes to the scope without appropriate approval.
total slack (TS)
If it is a positive value, it is the amount of time that the activities on a particular path can be delayed without jeopardizing completion of the project by its required completion time. If it is a negative value, it is the amount of time that the activities on a particular path must be accelerated to complete the project by its required completion time. Also referred to as total float.
Travel costs.
If travel (other than local travel) is required during the project, the costs for travel, such as airfare, lodging, and meals, need to be included.
Project objectives require
It requires completing the project work scope and producing all the deliverables by a certain time and within budget. It should also include the expected benefits that will result from implementing the project and define the success of the project. The project objective must be clearly defined and agreed upon by the sponsor or customer and the project team or contractor that will perform the project. The project objective must be clear, attainable, specific, and measurable.
System implementation.
System implementation. The existing system is replaced with the new, improved system, and users are trained. Several methodologies exist for converting from the existing system to the new system with minimal interruption to the users.
System analysis.
The development team defines the scope of the system to be developed, interviews potential users, studies the existing system (which might be manual), and defines user requirements.
time-phased budget
The distribution by time period of the total budgeted cost for a work package or project over its expected time span based on when specific activities are scheduled to be performed.
Project required completion time
The time or date by which a project must be completed, usually established by the sponsor or customer.
Earned value (EV)
The value of the work actually performed. Also referred to as budgeted cost of work performed (BCWP).
The ES and EF times are determined by calculating forward—that is, by working through the network diagram from the beginning of the project to the end of the project.
by working through the network diagram from the beginning of the project to the end of the project.
The latest finish and latest start times are determined by
calculating backward through the network diagram.
The project objective should be
clear and concise at the beginning of the project. However, there can be situations where the project objective needs to be modified as the project proceeds because of extenuating circumstances or new information.
In some cases, the acceptance criteria may need to
describe certain inspection techniques (such as sampling), testing procedures (length of testing period, use of external laboratory), or specific testing equipment or facilities that must be used (calibrated to industry standards, environmental chamber).
Once a TBC has been established for each work package, the second step in the project budgeting process is to
distribute or spread each TBC over the expected time span of its work package.
The estimated costs
for an activity should be reasonable and realistic.
Latest finish (LF) time
is the latest time by which a specific activity must be completed for the entire project to be finished by its required completion time. It is calculated on the basis of the project required completion time and the estimated durations of succeeding activities.
having a written quality plan at the outset of a project is extremely beneficial
it helps prevent incurring additional costs and schedule extensions due to rework caused by work and deliverables that fail to meet quality requirements and customer expectations.
work items
the WBS subdivides the project into smaller pieces
information system
A computer-based system that accepts data as input, processes the data, and produces information for users.
activity
A defined piece of work that consumes time. Also referred to as a task.
project quality plan
A document that defines the specifications, standards, and codes that must be met during the performance of the project work, and the procedures for quality tools and techniques, to assure and control quality. Also referred to as quality plan.
project scope document
A document that includes the customer requirements, statement of work, deliverables, and acceptance criteria.
cost performance index (CPI)
A measure of the cost efficiency with which the project is being performed; the cumulative earned value divided by the cumulative actual cost.
Resource leveling
A method for developing a schedule that attempts to minimize the fluctuations in requirements for resources without extending the project schedule beyond its required completion time. Also referred to as resource smoothing.
Resource-limited scheduling
A method for developing the shortest schedule when the quantity of available resources is fixed. This method will extend the project completion time, if necessary, to keep within the resource limits.
laddering
A method of showing the dependent relationship of a set of activities that is repeated several consecutive times and allows the activities to be completed in the shortest possible time while making the best use of available resources.
Bar chart
A planning and scheduling tool that displays project activities along a time scale. Also referred to as a Gantt chart.
systems development life cycle (SDLC)
A project management planning tool consisting of a set of phases or steps to be completed over the course of development of an information system.
responsibility assignment matrix (RAM)
A table that designates the individuals or organizational units responsible for accomplishing each work item in a work breakdown structure.
resource requirements plan
A table that illustrates the expected utilization of resources by time period during the time span of the project.
system testing
After individual modules within the system have been developed, testing can begin. Testing involves looking for logical errors, database errors, errors of omission, security errors, and other problems that might prevent the system from being successful. After the individual modules are tested and problems are corrected, the entire system is tested. Once the users and the developers are convinced that the system is error-free, the system can be implemented.
Resource-constrained planning
An approach to creating a network diagram and schedule in which the sequence and dependent relationships of activities are based on resource constraints that take into account the availability of a limited quantity of resources.
cost variance (CV)
An indicator of cost performance; the cumulative earned value minus the cumulative actual cost.
Problem definition.
Data are gathered and analyzed, and problems and opportunities are clearly defined. Technical, economic, operational, and other feasibility factors are defined and studied to determine, at least initially, whether the information system can be successfully developed and used.
During each reporting period, two kinds of data or information need to be collected:
Data on actual performance & Information on any changes to the project scope, schedule, and budget.
The project objective should include the following elements:
Expected benefits, Primary project end product or deliverable, date & budget
Committed costs
Funds that have been obligated for an item that has been ordered or purchased but not yet paid for, and therefore are not available to be spent elsewhere on the project because they will be needed at some later time to pay for the item. Also referred to as obligated costor encumbered cost.
Critical path
In a network diagram, any path of activities with zero or negative total slack. The longest (most time-consuming) path. Also see most critical path.
Reserve.
In addition to the above items, the project team or contractor may include an estimated amount for contingencies to cover unexpected situations that may come up during the project, such as items that may have been overlooked when the initial project scope was defined, activities that may have to be redone because they may not work the first time (redesigns), or a high probability or high impact risk that may occur. Often there is a separate budget (management reserve) set aside for contingencies at the project level rather than for specific activities.
quality control
Monitoring the quality of the work early and regularly throughout the performance of the project, comparing results with quality standards, and making any necessary corrective actions immediately.
Project control process
Regularly gathering data on actual project performance, comparing actual performance to planned performance, and taking corrective action immediately if actual performance is behind planned performance.
System Design
Several alternative conceptual designs are produced that describe input, processing, output, hardware, software, and the database at a high level. Each of these alternatives is then evaluated, and the best one is selected for further design and development.
Facilities costs
Some projects may require special facilities or additional space for the project team, for security reasons, to store materials, or to build, assemble, and test the project end item (deliverable). If such facilities are required, the estimated costs for renting the space need to be included.
Equipment costs.
Some projects require equipment that must be purchased as part of the project. Equipment can include items such as computers and machinery. For example, a project to construct a clinic would include the purchase of various types of medical equipment. Or a project to upgrade a manufacturing facility may include the purchase of new production machinery. Or a new office might include the purchase of new computer systems.
System development.
The actual system is brought into existence. Hardware is purchased, and software is purchased, customized, or developed. Databases, input screens, system reports, telecommunication networks, security controls, and other features are also developed.
Data on actual performance includes
The actual time that activities were started and/or finished The actual costs expended and committed The earned value of the work completed
total budgeted cost (TBC)
The aggregate amount of the estimated costs of all the specific activities to perform and complete a work package or the project. Also referred to as budget at completion (BAC).
cumulative actual cost (CAC)
The amount of costs actually expended and committed to accomplish all the work performed up to a specific point in time. Also referred to as actual cost of work performed (ACWP).
actual cost
The amount of costs actually expended and committed to accomplish the work performed. Also referred to as actual cost of work performed (ACWP).
Free slack (FS)
The amount of time that a specific activity can be postponed without delaying the earliest start time of its immediately succeeding activities. It is the relative difference between the amounts of total slack for activities entering into the same activity. It is always a positive value. Also referred to as free float.
There is one rule that must be followed in making these forward calculations:
The earliest start time for a specific activity must be the same as or later than the latest of all the earliest finish times of all the activities leading directly into that specific activity.
There is one rule that must be followed in making these backward calculations:
The latest finish time for a specific activity must be the same as or earlier than the earliest of all the latest start times of all the activities emerging directly from that specific activity.
Project objectives
The planning process is based on the project objective, which establishes what is to be accomplished. Often the project objective is stated in the project charter or request for proposal (RFP). The objective is the tangible end product that the project team or contractor must produce and deliver in order for the sponsor or customer to achieve the expected benefits from implementing the project. The project objective is usually defined in terms of the end product or deliverable, schedule, and budget.
forecasted cost at completion (FCAC)
The projected total cost of all the work required to complete a project based on the actual cost expended, the earned value of work performed, and the remaining work to be done. Also referred to as estimated cost at completion (EAC).
to-complete performance index (TCPI)T
The rate of performance required for the remaining work in order to complete the project or a work package within its total budgeted cost.
dependent relationship
The sequence in which activities must be finished before other activities can start. Also referred to as precedence relationship.
Reporting period
The time interval at which actual project performance will be compared to planned performance.
Project estimated start time
The time or date when a project is expected to begin.
cumulative earned value (CEV)
The value of the work actually performed up to a specific point in time; total budgeted cost multiplied by the percentage of the work estimated to be complete. Also referred to as budgeted cost of work performed (BCWP).
Labor costs.
These are the estimated costs for the various types or classifications of people who are expected to work on the project, such as painters, designers, and computer programmers. The labor costs are based on the estimated work time (not necessarily the same as the activity estimated duration) and the dollar labor rate for each person or classification.
Materials costs.
These are the estimated costs of materials that the project team or contractor needs to purchase for the project, such as paint, lumber, piping, shrubbery, carpeting, electrical cable, paper, art supplies, food, computers, and application software.
Information on any changes to the project scope, schedule, and budget include
These changes could be initiated by the customer or the project team, or they could be the result of an unanticipated occurrence.
expected benefits should include
This element should also include a quantified measure if appropriate, such as a percent, dollar amount, or absolute number.
Subcontractors and consultants costs.
When project teams or contractors do not have the expertise or resources to do certain project tasks, they may outsource some of the work to subcontractors or consultants to perform those activities. Examples of such tasks include designing a brochure, developing a training manual, developing software, and catering a reception.
The estimated cost of an activity is based on
an estimate of the types and quantities of resources required to perform the activity
deliverables
are the products or outputs that the project team or contractor will produce and provide to the customer during and at the completion of the performance of the project.
Date
by which the project is required to be completed, such as by June 30, 2018, or in 18 months.
The SOW section of the project scope document is where the contractor or project team can
can state and clarify exactly what is included in the work scope and provide an opportunity to reconsider items that are not stated but that the customer may have forgotten to include in her requirements or RFP.
Committed costs are also referred to as
commitments, obligated costs, or encumbered costs.
Customer requirements
define the functional, operational, and performance specifications or capabilities that must be met for the project's end product and other project deliverables.
Statement of Work (SOW)
defines the major tasks that will need to be performed to accomplish the work that needs to be done and produce all the project deliverables. The SOW defines what the project team or contractor will do. If something is not included in the SOW, then it should be assumed that it will not be done or provided.
project scope
defines what needs to be done. It is all the work that must be done to produce all the project deliverables, satisfy the sponsor or customer that all the work and deliverables meet the requirements and acceptance criteria, and accomplish the project objective.
The project charter or RFP
establishes the framework for further elaboration of the project scope.
WBS
establishes the framework for further planning to create a baseline plan for performing the project work. The project scope document may include a high-level WBS in a graphic chart format or as an indentured list of the work items and associated deliverables.
The estimated duration for an activity must be based on the
estimated quantity of resources required to perform the activity.
Some of a customer's requirements for a new house
five bedrooms, a two-car attached garage, a fireplace, and a geothermal system. One of the requirements for a commercial security system might be eight hours of battery backup power in case of an outage of the primary power source.
The estimated duration
for each activity must be the total elapsed time—the time for the work to be done plus any associated waiting time.
the WBS establishes the framework
for how the work will get done to produce the project deliverables.
A change control system needs to be established
for the process and procedures that define how changes will be documented, approved, and communicated.
In many cases, the customer states
high-level requirements in the project charter or RFP, but the project team or the contractor may need to collect more information from the customer or end users to further refine the requirements.
network diagram
is a tool for arranging the specific activities in the appropriate sequence and defining their dependent relationships. It defines the sequence of how the activities will get done.
Earliest start (ES) time
is the earliest time at which a specific activity can begin, calculated on the basis of the project estimated start time and the estimated durations of preceding activities.
Earliest finish (EF) time
is the earliest time by which a specific activity can be completed, calculated by adding the activity's estimated duration to the activity's earliest start time:
Latest start (LS) time
is the latest time by which a specific activity must be started for the entire project to be finished by its required completion time. It is calculated by subtracting the activity's estimated duration from the activity's latest finish time:
The key to managing cash flow
is to ensure that cash comes in faster than it goes out.
The key to quality control
is to monitor the quality of the work early and regularly throughout the performance of the project, compare results with quality standards, and make any necessary corrective actions immediately, rather than waiting until all the work is completed before checking or inspecting for quality.
The key to effective project control is
measuring actual progress and comparing it to planned progress on a timely and regular basis and taking any needed corrective action immediately.
The project manager and the customer
must agree on all changes to the project objective. Any such changes might affect the remaining work scope, deliverables, completion date, and final cost.
Customer requirements can include
specifications regarding size, color, weight, or performance parameters, such as speed, uptime, throughput, processing time, or operating temperature range, that the project result must satisfy.
Primary project end product or deliverable
such as a mobile app shopping capability, a nationwide marketing campaign, a dormitory complex, or a noninvasive medical monitoring device.
When estimating resources for activities,
the availability of each resource has to be taken into account.
The agreed-upon project scope document establishes
the baseline for any changes that may be made to the scope during the performance of the project.
Acceptance criteria
the quantitative measures or references to specifications, standards, or codes that will be used should be stated, as the criteria will be the basis for the customer agreeing that a deliverable is acceptable. The inclusion of specifications or standards will help assure quality of the deliverable.
it is necessary to estimate
the types and quantities of resources required to perform each specific activity.
Project management is a proactive approach
to controlling a project to ensure that the project objective is accomplished, even when things do not go according to plan.
expected benefit examples
to increase sales volume by 5,000 units annually, to expand customer base in European markets by 60 percent, to reduce the number of patients that contract postsurgical infections by 50 percent, to double the number of donors, or to reduce annual overhead costs by $150,000.
The project scope document defined
what needs to be done in terms of the SOW and deliverables
Work Breakdown Structure (WBS)
which is a hierarchical decomposition of the project work scope into work packages that produce the project deliverables. It is a technique for organizing and subdividing all the project work and deliverables into more manageable components.
The estimated resources required for an activity
will influence the estimated duration to perform the activity and the estimated cost of the activity.
expected benefits
will result from implementation of the project and define success. This element establishes why the project is being done. It may include verbs, such as to increase, expand, reduce, save, establish, and so on.
