Project Mgt. test 1

Burst activity:

activity that has more than one activity immediately following it (more that one dependency arrow flowing from it).

Activity:

an element of the project that requires time but may not require resources.

opportunity

an event that can have positive impact on project objectives.

Cost Risks

Review price to avoid the trap of using one Ilump sum to cover price risks.

Checklist Models

Use a list of questions to review potential projects and to determine their acceptance or rejection. Allow greater flexibility in selecting among many different types of projects and are easily used across different divisions and locations. Fail to answer the relative importance or value of a potential project to the organization and does not allow for comparison with other potential projects.

Multi-Weighted Scoring Models

Use several weighted selection criteria to evaluate project proposals. Include qualitative and/or quantitative criteria. Allow for comparison with other potential projects.

Net Present Value (NPV)

Uses management's minimum desired rate of return (discount rate) compute the present value of all net cash inflows.

Probability Analysis

Uses statistical technique in assessing project risk. Ex: decision trees, NPV, program evaluation and PERT.

Resource pool-

provides the organization with a cadre of trained project managers and professionals.

Total Slack

Tells us the amount of time an activity can be delayed and not delayed the project. Is how long an activity can exceed its early finish date without affecting the project end date or an imposed completion date.

EMR Project

The development of a hand-held electronic medical reference guide to be used by emergency medical technicians and paramedics.

late time

The latest an activity can start or finish without delaying the completion of the project.

Four Activities of the Strategic Management Process (1. Review and define the organizational mission)

The mission identifies "what we want to become." Mission statements identify the scope of the organization in terms of its product and service.

Аcсept

Be willing to take advantage of the opportunity if it occurs, but not taking action to pursue it.

A network schedule

that has only one critical path and noncritical activities that enjoy significant slack would be labeled "insensitive."

Phase gate model

-Is a series of gates that a project must pass through in order to be completed. -Its purpose is to ensure that the organization is investing time and resources on worthwhile projects that contribute to its mission and strategy. -Each gate is associated with a project phase and represents a decision point. -A gate can lead to three possible outcomes: go (proceed), kill (cancel), or recycle (revise and resubmit).

Goals of Smoothing Resource Demand

-Reduce the peak of demand for the resource. -Reduce the number of resources over the life of the project. -Minimize the fluctuation in resource demand.

Management reserves

-cover unidentified risks and are allocated to risks associated with the total project.

Technical Risks

Backup strategies if chosen technology fails. Assess whether technical uncertainties can be resolved.

Disadvantages of Matrix Management

1. Dysfunctional conflict 2. Infighting 3. Stressful 4. Slow

Advantages of Matrix Management

1. Efficient 2. Strong project focus 3. Easier post-project transition 4. Flexible

Weaknesses of the Dedicated Project Team Approach

1. Expensive 2. Internal strife 3. Limited technological expertise 4. Difficult post-project transition

Defining

1. Goals 2. Specifications 3. Tasks 4. Responsibilities

Disadvantages of Using Functional Organization to Administer and Complete Projects

1. Lack of focus 2. Poor integration 3. Slow 4. Lack of ownership

heuristics

1. Minimum slack 2. Smallest (least) duration 3. Lowest activity identification number

Advantages Using Functional Organization to Administer and Complete Projects

1. No change 2. Flexibility 3. In-depth expertise 4. Easy post-project transition

Two Major Dimensions of Strategic Management:

1. Responds to changes in the external environment and allocates the firm's scare resources to improve its competitive position. 2. Internal responses to new action programs aimed at enhancing the competitive position of the firm.

Planning

1. Schedules 2. Budgets 3. Resources 4. Risks 5. Staffing

Strengths of the Dedicated Project Team Approach

1. Simple 2. Fast 3. Cohesive 4. Cross-functional integration

Two main reasons project managers need to understand their organization's mission and strategy:

1. So they can make appropriate decisions and adjustments. 2. So they can be effective project advocates. They have to be able to:

Executing

1. Status reports 2. Changes 3. Quality 4. Forecasts

Closing

1. Train customer 2. Transfer documents 3. Release resources 4. Evaluation 5. Lessons learned

early time

172 The earliest an activity can start or finish based on network logic, the data date, and any schedule constraints.

Merge activity:

: an activity that has more than one activity immediately following (more that one dependency arrow flowing from it).

Gantt chart

A bar chart of schedule information where activities are listed ok the vertical axis, dates are shown on the horizontal axis, and activity durations are shown in horizontal bars placed according to start and finish.

Program Defined

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

risk breakdown structure (RBS)

A hierarchical depiction of the identified project risks, arranged by risk category and subcategory, that identifies the various areas and causes of potential risks.

risk profile

A list of questions that address traditional areas of uncertainty on a project.

Benefits of Risk Management

A proactive rather than reactive approach. Reduces surprises and negative consequences. Prepares the project manager to take appropriate action. Provides better control over the future. Improves chances of reaching project objectives on time, within budget, and of meeting required performance.

Program Management Defined

A process of managing a group of ongoing, interdependent, related projects in a coordinated way to achieve strategic objectives completion of all courses required for a business major

Risk Defined

An uncertain event or condition that if it occurs, has a positive or negative effect on project objectives. • No amount of planning can overcome or control risk.

Project Defined

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

risk severity matrix

A tool used to assess the impact of risks on a project.

Laddering

Activities are broken into segments so the following activity can begin sooner and not delay the work.

Risk Assumptions

Activities with the most slack pose the least risk. • Reduction of flexibility does not increase risk. The nature of an activity (easy, complex) doesn't increase risk.

Share

Allocate some or all of the ownership of an opportunity to another party who is best able to capture the opportunity for the benefit of the project.

Risk Management

An attempt to recognize and manage potential and unforeseen trouble spots that may occur when the project is implemented. •What can go wrong (risk event). •How to minimize the risk event's impact (consequences). •What can be done before an event occurs (anticipation). •What to do when an event occurs (contingency plans).

Time Buffers

Are amounts of time used to cushion against potential delays in the project . -Add to activities with severe risks. -Add to merge activities that are prone to delays. -Add to noncritical activities to reduce the likelihood that they will create another critical path. -Add to activities that require scarce resources.

Direct Costs

Are clearly chargeable to a specific work package Examples: Labor, materials, equipment, and other.

Contingency Funds

Are funds to cover project risks-identified and unknown.

Mega Projects Defined

Are large-scale, complex ventures that typically cost $1 billion or more, take many years to complete, and involve multiple private and public stakeholders.

General and Administrative (G&A) Overhead Costs

Are not directly linked to a specific project Examples: Advertising, accounting, salary of senior management above the project level.

Technical or Logical Constraints

Are related to the networked sequence which project activities must occur.

Resource-Constrained Project

Assumes the level of resources available cannot be exceeded. Resburces are fixed and time is flexible. If the resources are inadequate, it will be acceptable to delay the project. Consult a project priority matrix to determine if the project is time- or resource- constrained.

Direct Project Overhead Costs

Can be tied to project deliverables or work packages Examples: Salary of the project manager, temporary rental space for the project team, supplies, specialized machinery.

Risks of the absence of a contingency plan

Cause a manager to delay or postpone the decision to implement a remedy. Lead to panic and acceptance of the first remedy suggested. Make the decision making under pressure which can be dangerous and costly.

Avoiding Risk

Changing the project plan to eliminate the risk or condition

Three major criteria (trade-offs) that a project manager has to manage are:

Cost (budget) Time (schedule) Performance (scope) A project manager can manage the project trade-offs by completing a priority matrix for the project and identifying which criterion is: Constrain-original parameter is fixed. Enhance-a criterion should be optimized. Accept-a criterion is tolerable not to meet the original parameter.

Project Classification

Deciding whether the project fits with the organization strategy.

Leveling (Smoothing) Techniques

Delay noncritical activities by using positive slack to reduce peak demand and fill in the valleys for the resources without delaying the entire project.

Organization Breakdown Structure (OBS)

Depicts how the firm has organized to discharge work responsibility. Provides a framework to summarize organization unit work performance. Identifies the organization units responsible for work packages. • Ties the organizational unit to cost control accounts.

Risk Register

Details all identified risks, including descriptions, category, probability of occurring, impact, responses, contingency plans, owners, and current status.

Funding Risks

Evaluate the risk of reductions in funding-a cut in the project.

Risk Control

Executing the risk response strategy. Monitoring triggering events. Initiating contingency plans. Watching for new risks.

Schedule Risks

Expedite or "crash" the project to get it back on track. Schedule activities in parallel or use start-to-start lag relationships. Use the best people for high-risk tasks.

Risk Identification

Generate a list of all the possible risks that could affect the project through brainstorming and other problem identifying techniques. Focus on the events that could produce consequences, not on project objectives. Use risk breakdown structure (RBS) in conjunction with work breakdown structure (WBS) to identify and analyze risks. Identify the macro risks first then specific areas can be checked. Use risk profile (a list of questions) to address traditional areas of uncertainty on a project.

Major Characteristics of a Project

Has an established objective • Has a defined life span with a beginning and an end Involves several departments and professionals Involves doing something never been done before Has specific time, cost, and performance requirements

Resource Smoothing

Involves attempting to even out varying demands on resources by delaying noncritical activities (using slack) to lower peak resource demand and, thus, increase resource utilization when resources are adequate over the life of the project.

Project Management Office (PMO)

Is a centralized unit within an organization or a department that oversees and supports the execution of projects. Plays a critical role in helping matrix systems mature into more effective project delivery platforms.

Project Charter

Is a documentation that authorizes the project manager to initiate and lead the project. Often includes a brief scope description as well as such items as risk limits, business case, spending limits, and even team composition.

The Project Network Defined

Is a graphic flow chart depicting the project activities that must be completed, the logical sequences, the interdependencies of the activities to be completed, and the times for the activities to start and finish along with the longest path(s) through the network-the critical path. Provides the basis for scheduling labor and equipment. Enhances communication among project stakeholders. Provides an estimate of project duration. Provides the basis for budgeting the cash flow. Identifies which activities are "critical" and should not be delayed. Highlights which activities to consider for compressing the project duration. Helps managers get and stay on the project plan.

Work Breakdown Structure (WBS)

Is a hierarchical outline of the project with different levels of detail. Identifies the products and work elements involved in a project. Defines the relationship of the final deliverable (the project) to its sub-deliverables, and, in turn, their relationships to work packages. • Serves as a framework for tracking cost and work performance. Is best suited for design and build projects that have tangible outcomes rather than process-oriented projects.

Agile Project Management (Agile PM)

Is a methodology emerged out of frustration with using traditional project management processes to develop software. Employs an incremental, iterative process sometimes referred to as a 'rolling wave' approach to complete projects. Focuses on active collaboration between the project and customer representatives, breaking projects into small functional pieces, and adapting to changing requirements. Works best in small teams of four to eight members.

Process-oriented project

Is a project that the final outcome is a product of a series of steps and phases. • Is a project that evolves over time with each phase affecting the next phase. Is a project that is driven by performance requirements, not by plans/blueprints.

Splitting Tasks

Is a scheduling technique used to get a better project schedule and/or to increase resource utilization. Involves interrupting the work and sending the resource to another activity for a period of time and then having the resource resume work on the original activity. Can be useful if the work involved does not include large start- up or shut-down costs. Is considered a major reason why projects fail to meet schedule.

Scope Statements

Is a short, one- to two-page summary of key elements of the scope, followed by extended documentation of each element. Is also referred to as "statements of work (SOWS)."

Organizational Culture Defined

Is a system of shared norms, beliefs, values, and assumptions that blinds people together, thereby creatin shared meanings. Reflects the "personality" of the organization. Performs several important functions in organizations. • Provides a sense of identity for its members Helps legitimize the management system Clarifies and reinforces standards of behavior Helps create social order

Contingency Plan

Is an alternative plan that will be used if a possible foreseen risk event becomes a reality. Is a plan of action that will reduce or mitigate the negative impact of the risk event. Is not a part of the initial implementation plan and effect after the risk is recognized.

Free Slack

Is the amount of time an activity can be delayed without delaying any immediately following (successor) activity. Is how long afm activity can exceed its early finish date without affecting the early start dates of any successor(s). Allows flexibility in scheduling scarce resources. Occurs only activity at the end of a chain of activities, where you have a merge activity.

Work Package

Is the lowest level of the WBS. Is a short-duration task that has a definite start and stop point, consumes resources, and represents cost. Should not exceed 10 workdays or one reporting period. Should be as independent of other work packages of the project as possible. Is the basic unit used for planning, scheduling, and controlling the project.

The Critical Path

Is the network path(s) that has (have) the least slack in common. Is the longest path through the activity network. Is the shortest expected time in which the entire project can be completed. Is important because it impacts completion time. Is where you put best people on. Is where you pay extra attention when doing risk assessment. Is where you dòn't look when other managers are asking to "borrow" people or equipment. Is where you look when you don't have time to monitor all activities.

Strategic Management Defined

Is the process of assessing "what we are" and deciding and implementing "what we intend to be and how we are going to get there." Is a continuous, iterative process aimed at developing an integrated and coordinated long-term plan of action. Requires strong links among mission, goals, objectives, strategy, and implementation.

Estimating Defined

Is the process of forecasting or approximating the time and cost of completing project deliverables. Is a trade-off, balancing the benefits of better accuracy against the costs of secured increased accuracy.

Scope Creep

Is the tendency for the project scope to expand over time-usually by changing requirements, specifications, and priorities.

Rolling Wave Development

Iterations typically last from one to four weeks. The goal of each iteration is to make tangible progress such as define a key requirement, solve a technical problem, or create desired features to demonstrate to the customer. At the end of each iteration, progress is reviewed, adjustments are made, and a different iterative cycle begins. Each new iteration subsumes the work of the previous iterations until the project is completed and the customer is satisfied.

Sociocultural

Leadership Problem solving Teamwork Negotiation Politics Customer expectations

WBS Coding System

Levels and elements in the WBS Organization elements Work packages Budget and cost information Allows report to be consolidated at any level in the structure.

Downside of Smoothing

Loss of flexibility that occurs from reducing slack. Creates more critical activities and/or near-critical activities because of slack reduction.

Retaining Risk

Making a conscious decision to accept the risk of an event occurring.

The Project Manager

Manages temporary, non-repetitive activities and frequently acts independently of the formal organization. Marshals resources for the project. Is the direct link to the customer. Works with a diverse troupe of characters. Provides direction, coordination, and integration to the project team. Is responsible for performance and success of the project. Must induce the right people at the right time to address the right issues and make the right decisions.

Establishing a Change Management System

Monitoring, tracking, and reporting risk. Fostering an open organization environment. Repeating risk identification/assessment exercises. Assigning and documenting responsibility for managing risk.

Time-Constrained Project

Must be completed by an imposed date. Time (project duration) is fixed and resources are flexible. If required, resources can be added to ensure the project is completed by a specific date.

Escalate

Notify the appropriate people within the organization of the opportunity.

Escalating risk

Notifying the appropriate people within the organization of the threat.

Four Activities of the Strategic Management Process 3. Set objectives to achieve strategies

Objectives translate the organization strategy into specific, concrete, measureable terms. Objectives answer in detain where a firm is headed and when it is going to get there.

Resource Constraints

Occur when the absence, shortage, or unique interrelationship and interaction characteristics of resources require a particular sequencing of project activities. Resources Constraints People Materials Equipment

Resource-Constrained Scheduling

Occurs when resources are not adequate to meet peak demands. The late start of some activities must be delayed, and the duration of the project may be increased.

Resource Problem

Only eight design engineers can be assigned to the project due to the shortage of design engineers and commitments to other projects. The peak demand is 21 design engineers.

Sources of Change

Project scope changes. Implementation of contingency plans. Improvement changes.

WBS Dictionary

Provides detailed information about each element in the WBS.

Mitigating Risk

Reducing the likelihood an adverse event will occur. Reducing impact of adverse event.

Characteristics of Objectives

S-Specific (be specific in targeting an objective) M-Measurable (establish a measurable indicators of progress) A-Assignable (maek the obeiective assignable to one person for competion) R-Realistic (state what can realistically be done woth available resources) T-Time related (state when the objective can be achieved, that is duration

Technical

Scope WBS Schedules Resource allocation Baseline budgets Status reports

Exploit

Seek to eliminate the uncertainty associated with an opportunity to ensure that it definitely happens.

Transferring Risk

Shifting responsibility for a risk to another party. Fixed price contracts, insurance, build own operate transfer (BOOT) provisions.

Hammock Activity

Spans over a segment of a project. Has a duration that is determined after the network plan is drawn. Is very useful in assigning and controlling indirect project costs. Is used to aggregate sections of the project to facilitate getting the right level of detail for specific sections of a project.

Enhance

Take action to increase the probability and/or the positive opportunity.

scenario analysis

Technique for analyzing risks where team members assess the significance of each risk event in terms of probability and impact of the event.

The Reference Class Forecasting (RCF)

Three Major Steps: 1. Select a reference class of projects similar to your potential project. 2. Collect and arrange outcome data as a distribution. Create a distribution of cost overruns as a percentage of the original project estimate (low to high). 3. Use the distribution data to arrive at a realistic forecast. Compare the original cost estimate for the project with the reference class projects. Benefits: Outside empirical data mitigates human bias. Politics, strategic, and promoter forces have difficulty ignoring outside RCF information. serves reality check for funding large projects. helps executives avoid unsound optimism. leads to improved accountability. provides a basis for project contingency funds.

Parallel activities:

activities that can take place at the same time, if desired.

Top-down (macro) estimates-

analogy, group consensus, or mathematical relationships Are usually derived from someone who uses experience and information to determine the project duration and total cost

Bottom-up (micro) estimates-

based on estimates elements found in the work breakdown structure Can take place after the project has been defined in detail Can serve as a check on cost elements in the WBS by rolling up the work packages and associated cost accounts to major deliverables Provide the customer with an opportunity to compare the low cost, efficient. Method approach with any imposed restrictions.

Contingency reserves

cover identified risks and allocated to specific segments or deliverables of the project.

multi-project environment

creates the problems of project interdependency and the need to share resources. Resource sharing leads to multitasking-involves starting and stopping work on one task to go and work on another project, then returning to the work on the original task.

Command and control center

has direct authority over the project.

Control tower-

improves project execution.

Oysters

involve technological breakthroughs with tremendous commercial potential.

Weak matrix

is a formally designed project manager responsible for coordinating project activities.

Matrix management

is a hybrid organizational form in which horizontal project management structure is overlaid on the normal functional hierarchy. Project participants report simultaneously to both functional and project managers.

parallel method

is an iterative process that starts from the beginning of project time and, when the resources needed exceed the resources available, retains activities first by the priority rules.

matrix structure

is designed to utilize resources optimally. Individuals work on multiple projects as well as being capable of performing normal functional duties. It attempts to achieve greater integration by creating and legitimizing the authority of a project manager. It provides dual focus between functional/technical expertise and project requirements.

sacred cow

is often used to denote a project that a powerful, high- ranking official is advocating.

"Projectitis"

is referred to as a negative dimension to dedicated project teams. A we-they attitude can emerge between project team members and the rest of the organization.

Problem 1: The Implementation Gap

is the lack of understanding and consensus of organization strategy among top and middle-level managers.

Sensitivity

is the likelihood the original critical path(s) will change once the project is initiated.

Phase estimating

is used when an unusual amount of uncertainty surrounds a project and it is impractical to estimate times and costs for the entire project.

Project selection

may be based not so much on facts and sound reasoning as on the persuasiveness and power of people advocating projects.

Dedicated project teams

operate as units separate from the rest of the parent organization. A full-time project manager is designated to pull together a core group of specialists who work full time on the project. The project manager recruits necessary personnel from both within and outside the parent company.

Strong matrix

project manager controls most aspects of the project, including scope trade-offs and assignment of functional personnel. The project manager controls when and what specialists do and has final say on major project decisions. The functional managers have title over their people and are consulted on a need basis. The functional managers serve as subcontractors for the project.

Bread-and-butter

projects involve evolutionary improvements to current products and services.

Splitting

refers to interrupting work on one task and assigning the resources to work on a different task for a period of time, then reassigning them to work on the original task.

Pearls

represent revolutionary commercial advances using proven technology.

Path:

sequence of connected, dependent activities.

White elephants

showed promise at one time but are no longer viable.

lag

the minimum amount of time a dependent activity must be delayed to begin or end. can be used to constrain finish-to-start, start-to-start, finish-to- finish, start-to-finish, combination relationships.

Critical path:

the path with the longest duration through the network.

Weather station-

tracks and monitors project performance.

Activity-on-Node (AON)

uses a node to depict an activity.

Activity-on-Arrow (AOA)

uses an arrow to depict an activity.

Benefits of Project Portfolio Management

· Builds discipline into project selection process. • Links project selection to strategic metrics. Prioritizes project proposals across a common set of criteria, rather than on politics or emotion. • Allocates resources to projects that align with strategic direction. Balances risk across all projects. • Justifies killing projects that do not support organization strategy. • Improves communication and supports agreement on project goals.

Four Activities of the Strategic Management Process 2. Analyze and formulate strategies

• Formulating strategy answers the question of what needs to be done to reach objectives. Strategy formulation includes determining and evaluating alternatives that support the organization's objectives and selecting the best alternative.

Four Activities of the Strategic Management Process 4. Implement strategies through projects

• Implementation answers the question of how strategies will be realized, given available resources.

Project Scope Defined

• Is a definition of the end result or mission of your project- a oduct or service for your client/customer. Defines the results to be achieved in specific, tangible, and measurable terms.

Responsibility Matrix (RM)

• Is also called a linear responsibility chart. Summarizes the tasks to be accomplished and who is responsible for what on the project. • Lists all the project activities and the participants responsible for each activity. Clarifies interfaces between units and individuals that require coordination. Provides a mean for all participants in a project to view their responsibilities and agree on their assignments. Clarifies the extent or type of authority exercised by each participant.

Process Breakdown Structure (PBS)

• Is used for process-oriented projects. • Is often referred to as the "waterfall method" in the software industry.

Balanced matrix

• The project manager is responsible for defining what needs to be accomplished. The project manager establishes the overall plan for completing the project, integrates the contribution of the different disciplines, set schedules, and monitors progress. The functional managers are concerned with how it will be accomplished. The functional managers are responsible for assigning personnel and executing their segment of the project according to the standards and schedules set by the project manager.

Purposes of the Project Scope Statement

• To clearly define the deliverable(s) for the end user. To direct focus on the project purpose throughout the life of the project for the customer and project participants. To be published and used by the project owner and project participants for planning and measuring project success.