MGMT 464 test 2

inefficient resource utilization

Because projects have different schedules and requirements, there are peaks and valleys in overall resource demands

Overall schedule slippage

Because projects often share resources, delays in one project can have a ripple effect and delay other projects

avoiding risk

Changing the project plan to eliminate the risk or condition - impossible to eliminate all risk events, some specific risks may be acoided before you launch the project

risk register

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

Resource-Constrained Scheduling

If 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-Constrained Project

Is one in which the level of resources available cannot be exceeded. • Resources are fixed, time is flexible: inadequate resources will delay the project.

Retaining Risk

Making a conscious decision to accept the risk large risks

heuristics

Mental shortcuts or "rules of thumb" that often lead to a solution (but not always). to solve large, combinatorial problems do not always yield an optimal schedule, but they are very capable of yielding a "good" schedule for very complex networks with many types of resources allocate resources to activities to minimize project delay, that is, heuristics prioritize which activities are allocated resources and which activities are delayed when resources are not adequate

Time-Constrained Project

Must be completed by an imposed date. Time is fixed, resources are flexible: additional resources are required to ensure project meets schedule.

Time-phased budget baseline

Planned costs that are broken down by distinct time periods (e.g., $5,000 per week) for a work package, as opposed to a budget for a whole job/project (6 months for a total of $130,000). Time phasing allows better cost control by measuring the actual rate of expenditure versus the planned expenditure rate over small pieces of the project.

Schedule Risk

Risk events that jeopardize completing the project on time.

Transferring Risk

Shifting responsibility for a risk to another party. does not change risk

free slack

The amount of time that a task can be delayed without delaying the start date of another task.

Risk Appetite

The degree of uncertainty an entity is willing to take on, in anticipation of a reward.

crash cost

The direct cost for completing an activity in its crash time

lag

The minimum amount of time a dependent activity must be delayed to begin or end

parallel method

The most widely used approach to apply heuristics, which have been found to consistently minimize project delay over a large variety of projects is the X starts from the beginning of project time and, when the resources needed exceed the resources available, retains activities first by the priority rules: 1. minimum slack 2. smallest duration 3. lowest activity identification number

Lag relationship

The relationship between the start and/ or finish of a project activity and the start and/or finish of another activity. The most common lag relationships are (1) finish-to-start, (2) finish-to-finish, (3) start-tostart, and (4) start-to-finish.

materials

The resource in a technology system that changes.

project network

The tool used for planning, scheduling, and monitoring project progress

Activity-on-arrow (AOA)

a network diagram in which arrows designate activities

Activity-on-Node (AON)

a network diagram in which nodes designate activities

Cost Risk

a risk management tool that measures the costs associated with treating the organization's loss exposures

documenting responsibility

a second key for controlling the cost of risks

path

a sequence of connected, dependent activities

Failure Mode and Effects Analysis (FMEA)

a systematic process for identifying potential design and process failures before they occur, with the intent to eliminate them or minimize the risk associated with them impact x probability x detection = risk value

laddering

a technique used in in-depth interviews in an attempt to discover how product attributes are associated with desired consumer values

software

a tool the project manager uses to view the project from different perspectives and conditions

time buffers

amounts of time used to compensate for unplanned delays in the project schedule

Merge Activity

an activity that has two or more preceding activities on which it depends

contingency plan

an alternative plan that will be used if a possible foreseen risk event actually occurs

looping

an attempt by the planner to return to an earlier activity

activity

an element of the project that requires time - built by work packages

opportunity

an event that can hace a positive impact on project objectives

all risks are probabilistic so reserves

are no tincluded in the baseline for each work package or activity. They are only activated when a risk occurs

dependency represented with

arrows

resource schedule

assigns time=phased costs that provide the project budget baseline

splitting tasks is a scheduling technique used to get

better project schedule and/or to increase resource utilization useful if the work involved does not include large start up or shutdown costs most common error is to interrupt "people work"

node

box

Concurrent Engineering

bringing engineering design and manufacturing personnel together early in the design phase - breaks activities into smaller segments so work can be done parallel

the risk management process begins

by trying to generate A list of all the possible risks that could affect the project

a major element of the risk control process is

change management

task-related currencies

come in different forms and are based on the project manager's ability to contribute to others' accomplishing their work - most significant form is the ability to respond to subordinates' requests for additional manpower, money, or time to complete a segment of a project

reason for accelerating project completion

competitive advantage, time to market, imposed deadlines

leadership is about

coping with change

management is about

coping with complexity

By using informatino from your WBS and resource schedule, you can

create a time-phrased cost baseline

Personal-related currencies

deal with individual needs and an overriding sense of self esteem - by asking for help and seeking opinions, delegating authority over work, and allowing individuals to feel comfortable stretching their abilities

Inspiration-related currencies

derive from people's burning desire to make a difference and add meaning to their lives - most powerful form of influence

contingency funds

established to cover project risks - identified and unknown

5 responses to opportunity

exploit share enhance escalate accept

threats

external risk sources

these systems do not measure how much work was accomplished for the money spent

hence, without time-phasing cost to match your project schedule, it is impossible to have reliable information for control purposes

a project manager's behavior symbolizes

how other people should work on the project

networks provide project schedule by

identifying dependencies, sequencing, and timing of activities

critical path

in a PERT network, the sequence of tasks that takes the longest time to complete

the cost impact of a risk event

increases over the life of a project

splitting

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 no splitting means that once an activity is placed in the schedule, assume it will be worked on continuously until it is finished

when demand for a specific resource type is erratic,

it is difficult to manage, and utilization may be very pooer

project cost-duration graph slopes

less steep: less it costs to shorten one time period steep slope: it will cost more to shorten one time unit

downside of leveling

loss of flexibility that occurs from reducing slack. The risk of activities delaying the project also increases because slack reduction can create more critical activities and/or near-critical activities. Pushing leveling too far for a perfectly level resource profile is risky. Every activity then becomes critical

networks

mutually beneficial alliances that are generally governed by the law of reciprocity

technical risk

often be the kind that causes the project to shut down problematic

law of reciprocity

one good deed deserves another and likewise one bad deed deserves another

more common problems encountered in managing multiproject resource schedules

overall schedule slippage inefficient resource utilization resource bottlenecks

stakeholders

people and organizations that are actively involved in the project whos interest may be positively or negatively affected by the project

resources are

people equipment and material that can be drawn on to accomplish something something the availability or unavailability of resources will often influence the way projects are managed

three basic relationships for activities included in a project network

predecessor activities successor activities concurrent or parallel

actions of project managers show

priorities, urgency, and problem solving, cooperation, standards of performance, ethics

when two or more activities require the same resource, the

priority rules are applied if they are equal, the activity with the smallest duration would be placed in the schedule first then the lowest activity identification number

when making individual assignments

project managers should match the demands and requirements of specific work with the qualifications and experience of available participants as best as they can

risk management attempts to

recognize and manage potential and unforeseen trouble spots that may occur when the project is implemented. It identifies as many risk events as possible, minimizes their impact, manages responses to events that do materialize, and provides contingency funds to cover risk events that actually materialize

leadership involves

recognizing and articulating the need to significantly alter the direction and operation of the project, aligning people to the new direction and motivating them to work together to overcome hurdles produced by the change adn to realize new objectives

what if cost is the issue, not time?

reduce project scope have owner take on more responsibility outsource project activities or even the entire project brainstorm cost saving options

limited resource schedule usually

reduces slack, reduces flexibility by using slack to ensure delay is minimized, and increases the number of critical and near-critical activities scheduling complexity is increased because resource constraints are added to technical constraints; start times may now have 2 constraints traditional critical path no longer meaningful

sensitivity

reflects the likelihood the original critical path(S) will change once the project is initiated

indirect costs

represent overhead costs such as supervision, administration, consultants, and interest not associated with any particular work package or activity vary directly with time

direct costs

represents labor, materials, equipment, and sometimes subcontractors assigned directly to a work package or an activity

normal time

represents low-cost, realistic, efficient methods for completing the activity under normal conditions

crash point

represents the maximum time an activity can be compressed

no amount of planning can overcome

risk, or the inability to control chance events

most changes fall into 3 categories

scope changes in the form of design or additions represent big changes implementarion of contingency plans, when risk events occur, represent changes in baseline costs and schedules improvement changes suggested by project team members represent another category

how far to reduce the project time from the normal time toward the optimum depends on the

sensitivity of the project network (sensitive if it has several critical or near critical paths)

Contingency Reserve

set up to cover identifies risks, allocated to specific segments or deliverables of the project for past

management reserves

set up to cover unidentifieed risks and are allocated to risks associated with the total project separated because their use requires approval from different levels of project authority

look for critical activities that can be shortened with the

smallest increase in cost per unit of time

assumptions

splitting activities will not be allowed the level of resources used for an activity cannot be changed

most commonly used relationship extrentions

start-to-start and finish-to-finish or a combination of the two

forward pass

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

Position-related currencies

stem from the manager's ability to enhance others' positions within their organization - strong forms is sharing contacts with other people

relationship-related currencies

strengthening the relationship with someone rather than directly accomplishing the project tasks essense is forming a relationship that transcends normal professional boundaries and extends into the realm of friendship develop by giving personal and emotional backing

total slack

tells us the amount of time an activity can be delayed and not delay the project (LS-ES=SL) slack or float

project success is strongly affected by

the degree to which a project has the support of top management

the chances of a risk event occuring are greatest during

the early stages of a project, when uncertainty is highest and many questions remain unanswered

Scenario Analysis

the easiest and most commonly used technique for analyzing risks. assess risk in terms of probability of the event and impact of the event

reducing risk is usually

the first alternative considered

network is developed from

the information collected for the WBS and is a graphic flow chart of the project plan WBS

network depicts

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

if resources are truly limited and activity time estimates are accurate,

the resource-constrained schedule will materialize as the project is implemented important to develop schedule before a project begins to leave time for considering reasonable alternatives

funding risk

the risk that an investor who uses short-term borrowing to make long-term investments will be unable to renew the short-term borrowing

crash time

the shortest possible time to complete an activity

management by wandering around

through face to face interactions, project managers are able to stay in touch with what is really going on in the project and build cooperation essential to project success

one common mistake made early in the risk identification process is

to focus on objectives and not on the events that could produce consequences

factors in determining who should work with each other

to minimize unnecessary tension, managers should pick people with compatible work habits and personalities but who complement each other experience future needs should be considered

cost or control account

total cost at each intersenction

groups make more accurate judgments about risks than individuals

true

the sources of project risks are

unlimited

Finish-to-Start Relationship

when the next activity in the sequence must be delayed even when the preceding activity is complete

escalating risk

when the project encounters a threat that is outside the scope of the project or authority of the project manager

burst activity

An activity that has more than one activity immediately following it.

Predecessor Activity

An activity that logically comes before a dependent activity in a schedule.

leveling

Delay noncritical activities by using positive slack to reduce peak demand and fill in the valleys for the resources

Resource bottlenecks

Delays and schedules are extended as a result of shortages of critical resources that are required by multiple projects

change management systems

Involve reporting, controlling, and recording changes to the project baseline

Parallel Activities

activities that can take place at the same time

people

most obvious and important project resource

equipment

usually presented by type, size, and quantity

Options when resources are not constrained

- Add resources, but see Brooks' law - adding manpower makes software projects later - Outsource and subcontract - Schedule overtime - Use a project team - recall from chapter 3 that one advantage is speed - Do it twice - fast (quick and dirty solution) and correctly, then go back and correct it

Options when resources are constrained

- Fast-tracking - rearrange the network, put in lags, allow things that were sequential to be done in parallel - Critical chain scheduling - Reduce project scope - Compromise quality - improve the efficiency of the project team

Backward Pass—Latest Times

- How late can the activity start? (late start—LS) - How late can the activity finish? (late finish—LF) - Which activities represent the critical path? - How long can the activity be delayed? (slack or float— SL)

Mitigating Risk

- Reducing the probability or likelihood an adverse event will occur*** - Reducing impact or consequences of adverse event

Forward Pass—Earliest Times

1. How soon can the activity start? (early start—ES) 2. How soon can the activity finish? (early finish—EF) 3. How soon can the project be finished? (expected time—TE)

3 steps to construct a project cost-duration graph

1. find total direct costs for selected project durations 2. find total indirect costs for selected project durations 3. sum direct adn indirect costs for these selected durations graph is then used to compare additional cost alternatives for benefits

steps to social network building

1. identify those stakeholders whom the project depends for success - whose cooperation will we need? Whose agreement or approval? Whose opposition would keep us from accomplishing the project? 2. Initiate contact and began to build a relationship with these people

Basic Rules to Follow in Developing Project Networks

1. left to right 2. an activity cannot begin until all preceding connected activities have been completed 3. arrows on networks indicate precedence and flow, can cross over each other 4. each activity should have a unique identification number 5. an activity identification number must be larger than that of any activities that precede it 6. looping is not allowed 7. conditional statements are not allowed 8. experience suggests that when there are multiple starts, a common start node can be used to indicate a clear project beginning on the network. A single project end node can be used to indicate a clear ending

Backward Pass

A critical path method technique for calculating the late start and late finish dates by working backward through the schedule model from the project end date. - 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 perceeding activity is a burst activity; in this case you select the smallest LS of all its immediate successor activities to establish its LF

Successor Activity

A dependent activity that logically comes after another activity in a schedule.

Project cost-duration graph

A graph that plots project cost against time; it includes direct, indirect, and total cost for a project over a relevant range of time.

Hammock Activity

A group of related schedule activities aggregated and displayed as a single activitiy.

Risk Breakdown Structure (RBS)

A hierarchical representation of risks according to their risk categories.

risk profile

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

Program Evaluation and Review Technique (PERT)

A method for analyzing the tasks involved in completing a given project, estimating the time needed to complete each task, and identifying the minimum time needed to complete the total project.

risk

An uncertain event or condition that, if it occurs, has a positive or negative effect on one or more project objectives.