Project Management Midterm Study Guide Chapters 1-4

What kinds of information are included in a work package?

- it defines what work, how long, cost, how many resources needed, who is responsible, and how well it is doing based on performance

Going to college is analogous to working in a matrix environment in that most stu dents take more than one class and must distribute their time across multiple classes. What problems does this situation create for you?How does it affect your performance? How could the system be better managed to make your life less difficult and more productive?

A Matrix structure is a combination structure. Combination structure is formed when one uses two different organizational structures in structuring an organization. For example: An overlap of the functional and the multidivisional structure, as shown below: In a school environment, matrix structure creates undue pressure with multiple subject and multiple assignments. Students remain heavily loaded with exams, term papers, individual assignments etc. It deters one to perform at his/her full potential. A system in which students need to take one class at a time is best to be more productive in school.

Define a project. What are five characteristics which help differentiation projects from other functions carried out in the daily operations of the organization?

A project is a complex, non routine, one-time effort limited by time, budget, resource, and specifications. Differentiating characteristics of projects from routine, repetitive daily work are below: a. A defined life span b. A well-defined objective c. Typically involves people from several disciplines d. A project life cycle e. Specific time, cost, and performance requirements.

You work as an analyst in the marketing department for Springfield International (SI). SI uses a weak matrix to develop new services. Management has created an extremely competitive organizational culture that places an emphasis upon achieving results above everything else. One of the project managers that you have been assigned to help has been pressuring you to make his project your number one priority. He also wants you to expand the scope of your work on his project beyond what your market- ing manager believes is necessary or appropriate. The project manager is widely per- ceived as a rising star within SI. Up to now you have been resisting the project manager's pressure and complying with your marketing manager's directives. However, your most recent interchange with the project manager ended by his saying, "I'm not happy with the level of help I am getting from you and I will remember this when I become VP of Marketing." How would you respond and why?

A weak matrix structure is basically the same as a practical design with a large portion of the position lying with the useful chiefs. The undertaking chief just arranges with the representatives working under the utilitarian heads partially. Nonetheless, how the work is done and who does what part how much is basically settled and constrained by the practical directors.

This chapter discussed the role of values and beliefs in forming an organization's culture. The topic of organizational culture is big business on the Internet. Many companies use their Web pages to describe their mission, vision, and corporate values and beliefs. There also are many consulting firms that advertise how they help organizations to change their culture. The purpose of this exercise is for you to obtain information pertaining to the organizational culture for two different companies. You can go about this task by very simply searching on the key words "organizational culture" or "corporate vision and values." This search will identify numerous companies for you to use to answer the following questions. You may want to select companies that you would like to work for in the future. a. What are the espoused values and beliefs of the companies? b. Use the worksheet in Figure 3.6 to assess the Web page. What does the Web page reveal about the culture of this organization? Would this culture be conducive to effective project management?

A. The chosen Companies for identifying their organization culture are Microsoft and Amazon Microsoft's culture comprises of the following values: 1. Empathy and innovation 2. Diversity and inclusion 3. Recognition and Community building 4. Accountability Amazon's culture comprises of the following values: 1. Customer obsession 2. Insist on the highest standards 3. Invent and simplify 4. Think big 5. Frugality 6. Earn trust 7. Deliver results

What are the relative advantages and disadvantages of the functional, matrix, and dedicated team approaches and managing projects?

Advantages: 1. No comprehensive changes in parent organizations' operations and design layout when executing a project 2. Flexible staff members 3. Expertise of staff members in their respective departments 4. Transition phase for employees are much easier Disadvantage: 1. Poor integration among specialists 2. Demotivated members due to pressure in completing the project

What is meant by an integrative approach to project management? Why is this approach important in today's environment?

An integrative approach to project management is one in which all the parts are interrelated. This approach is important because it can give an organization a competitive edge in today's environment. An integrative approach includes two parts. First, projects must have a strong link to the organization's strategic plan, which is directed toward meeting the customer's needs. A project priority system reinforces this linkage by prioritizing projects according to their contribution to the strategic plan and allocates resources by the priorities set. Second, an integrative approach provides an integrated system for the actual implementation of the projects. This includes an information system which supports decision making and a sociocultural environment which creates a positive, active contribution from team members responsible for completing the project.

What do you believe is more important for successfully completing a project-the formal project management structure or the culture of the parent organization?

Both are important and an argument can be made for either structure or culture. The bias of the authors is that culture is more important than structure since it more directly impacts behavior. A positive organizational culture can compensate for the inherent weaknesses of the formal structure. For example a functional matrix can be effective if the norms and customs of the organization value teamwork and effective problem-solving. Conversely, a functional matrix is likely to be disastrous in a negative culture that encourages competition and looking out only for yourself. Alternatively, one could argue that an organization can circumvent a negative culture by creating an independent project team or a strong project matrix. In either case, the strategy is to insulate the project team from the dominant organizational culture and create a unique project subculture.

Under what conditions would it be advisable to use a strong matrix instead of a dedicated project team?

Both structures can be quite effective. The strong matrix would be recommended when the organization cannot afford to have people work full-time on the project and when the culture of the organization supports the dual authority structure. Dedicated project teams are recommended when speed is essential to success and there is not enough project work to warrant a formal matrix structure. Dedicated project teams are also recommended when the prevalent culture within the organization does not support collaboration and innovation

The portfolio of projects is typically représentâtes by compliance, strategic, and operations projects. What impact can this classification have on project selection?

By carefully aligning your project proposal with one classification, you may increase the chances of it being selected. Remember, senior management typically allots budgets for each category independent of actual project selection. Knowledge of funds available, risk portfolio, senior management bias, etc. may cause some to attempt to move their project proposal to a different classification to improve the chances of the project being selected.

Discuss the pros and cons of the checklist versus the weighted factor method of selecting projects

Checklist: - have flexibility - can be used across different divisions and locations - doesn't answer relative importance or value of a project - doesnt let you compare with other projects Weighted - allows comparison and ranking of potential projects - open system -allows self evaluation - power and politics are exposed

What are some of the key environmental forces that have changed the way projects are managed? What has been the effect of these forces on the management of projects?

Some environmental forces that have changed the way we manage projects are the product life cycle, knowledge growth, global competition, organization downsizing, technology changes, time-to-market. The impact of these forces is more projects per organization, project teams responsible for implementing projects, accountability, changing organization structures, need for rapid completion of projects, linking projects to organization strategy and customers, prioritizing projects to conserve organization resources, alliances with external organizations, etc.

Other than culture, what other organizational factors should be used to determine which project management structure should be used?

Two main considerations: - The percentage of core work that involves projects - Resource Availability Organizations that evolve around projects should consider a projectized form of structure Organizations that have mainstream operations and projects should use a matrix structure When resource availability is limited then a matrix structure should be used that would allow sharing personnel across projects & operations

Individually identify what you consider to be the greatest achievements accomplished by mankind in the last five decades. Now share your list with three to five other students in the class, and come up with an expanded list. Review these accomplishments in terms of the definition of a project. What does your review suggest about the important of project management?

Typical responses center on technology, medical advances, space exploration—e.g., computer advances, laser operations and new drugs, building the space station. Often you have to point out that many of these projects are really programs.

What questions does a project objective answer? What would be an example of a good project objective?

What the project is, when the project should be finished, and how much it will cost

Why does the priority system described in this chapter require that it be open and published? Does the process encourage bottom-up initiation of projects? Does it discourage some projects? Why?

Without a strong priority system it can lead to problems within the organization. Having an open priority system ensures that projects are selected based on their contribution to the organization. If it isn't open it can create 3 specific issues: 1) Implementation Gap 2) Organization Politics 3) Resource conflicts and multitasking It does encourage bottom up; it allows organization members to evaluate projects in a fair manner

Why should an organization not rely only on ROI to select projects?

Financial criteria, like ROI alone, will not ensure that selected projects contribute to the mission and strategy of a firm. Other considerations such as developing new technology, public image, brand loyalty, ethical position, and maintaining core competencies be considered. Furthermore it is difficult or next to impossible to assess ROI for many important projects. While ROI is likely to be a key consideration for many organizations, multiple screening criteria are recommended for selecting and prioritizing projects.

Two new software projects are proposed to a young, start-up company. The Alpha project will cost $150,000 to develop and is expected to have annual net cash flow of $40,000. The Beta project will cost $200,000 to develop and is expected to have annual net cash flow of $50,000. The company is very concerned about their cash flow. Using the payback period, which project is better from a cash flow standpoint? Why?

Payback = Investment / Annual Savings Project Alpha: $150,000 / $40,000 = 3.75 years Project Beta: $200,000 / $50,000 = 4.0 years Project Alpha is the better payback

How are projects linked to the strategic plan?

Projects are linked to the strategic plan because projects represent how a strategy is to be implemented. Since some projects are more important than others, the best way to maximize the organization's scarce resources is through a priority scheme which allocates resources to a portfolio of projects which balance risk and contribute the most to the strategic plan.

Describe the major components of the strategic management process

1. Defining the mission of the organization 2. Analysis of the external and internal environments 3. Setting Objectives 4. Formulating strategies to reach objectives 5. Implementing strategies through objectives

You are in charge of organizing a dinner-dance concert for a local charity. you have reserved a hall that will seat 30 couples and have hired a jazz combo A. Develop a scope statement for this project that contains examples of all the elements. Assume that the event will occur in four weeks and provide your best guess estimated of the dates B. what would the priorities likely be for this project?

1. Project Objective - Is to successful plan and organize a concert for a chosen local charity 2. Deliverables - A venue - Secruity Team - Stage - Insurance - Food Caters - Seating layout - Dancers 3. Milestones: - Week 1: Date is set, booked venue and caterers, contract signing, permission from people in-charge -Week 2: Finalize equipment needed, security of place is secured, decors are set, food menus is finalized -Week 3: Theme for dance is set, utilies are complete -Week 4: Rehearsals, stage is set up, ensure that decor is ready and all set. 4. Technical -Sound system -Waste Disposal -Régulations are obtained -Restrooms 5. Limit and Exclusion - Seating capacity is enough for all 30 couples - Enough food for everyone and beverages are served - Security for the place - Event would end at 11pm 6. Customer Review -Scope would be shared to everyone who attended Time is most likely the hardest hurdle to cross, since everything must be scheduled and executed well. Sharing the accomplishment report to the customer since this gives you a good reputation to them

How can project management offices support effective project management?

1. Tracks the process that occurs during project. it also tracks quality, time spent, and budget 2. Supports managers through different training 3. Advancement in technology

You work for Barbata Electronics. Your R&D people believe they have come up with an affordable technology that will double the capacity of existing MP3 players and use audio format that is superior to MP3. The project is code named KYSO (Knock Your Socks Off). What kind of project management structure would you recommend they use for the KYSO project? What information would you like to have to make this recommendation and why?

I will recommend them project based organizational structure. In this a separate project team will be initiated whose members will be drawn from different functional areas. This project structure will be assigned this particular project witha specific budget for the development of this new mp3.This structure will be providing a concentrated effort for the success of new product launch under the guidance of a responsible project manager.To recommend this offer, I have gone through the following information, 1) Number of employees in the organization having different key responsibilities. 2) The number of functional experts in the organization. 3) The analysis of MP3 market 4.) Name of some people who are having good interest in this mp3 product. 5) Competitor's analysis to know what type of structure and payout they are giving to their employees. 6) A list of people who are having technological expertise. 7) A strong capable person who will lead your initiative for the development of this technology

Review the front page of your local newspaper, and try to identify all the projects contained in the articles. How many were you able to find?

It is nearly impossible to open a newspaper and not find articles relating to projects. Sunday editions are especially good for this exercise. Even experienced project managers find the number of projects far greater than they would have predicted. Each one was managed by a project manager! This is a good illustration of the important role projects play in our daily lives.

You work for LL Company, which manufactures high-end optical scopes for hunting rifles. LL Company has been the market leader for the past 20 years and has decided to diversify by applying its technology to develop a top-quality binocular. What kind of project management structure would you recommend they use for this project? What information would you like to have to make this recommendation, and why?

LL company should use Matrix project structure for this project. To make this recommendation I would need to know what are (a) organizational considerations - for ex. How important is project management to the success of this firm, it is important to know what is the resource availability, if a firm is ready to make transition to matrix structure. (b) Project Consideration - how large is the project, is it strategically critical and new to the company, how much innovation is required etc. (c) Organizational culture - it is very important to know how the organization functions, as project management structure, organizational culture and project success goes hand in hand.

1. You manage a hotel resort located on the South Beach on the Island of Kauai in Hawaii. You are shifting the focus of your resort from a traditional fun-in-the-sun destination to eco-tourism. (Eco-tourism focuses on environmental awareness and education.) How would you classify the following projects in terms of compliance, strategic, and operational? a. Convert the pool heating system from electrical to solar power. b. Build a four-mile nature hiking trail. c. Renovate the horse barn. d. Launch a new promotional campaign with Hawaii Airlines. e. Convert 12 adjacent acres into a wildlife preserve. f. Update all the bathrooms in condos that are 10 years old or older. g. Change hotel brochures to reflect eco-tourism image. h. Test and revise disaster response plan. i. Introduce wireless Internet service in café and lounge areas. How easy was it to classify these projects? What made some projects more difficult than others? What do you think you now know that would be useful for managing projects at the hotel

Most students classify the projects as follows: Compliance: Operational: Strategic: d., g., i. a., c., j. b., e., f., h. Most students claim it was not too difficult to classify the projects other than they had to make judgment calls given the limited information. In real life they would have such information. Debates occur around whether converting the heating system to solar polar was an operational necessity or to fit the eco-friendly image. Likewise, launching the promotional campaign with Hawaii Airlines would be considered strategic if it promoted the eco-tourism theme, otherwise it could be consider operational.

When would it be appropriate to create a responsibility matrix rather than a full-blown WBS?

On smaller projects where verbal, face-to-face communication is possible, a responsibility matrix should be adequate. Sometimes a responsibility matrix is used for a segment of a project or one in which a team wishes to stress responsibility.

Why is the implementation of projects important to strategic planning and the project manager?

Strategic plans are implemented primarily through projects—e.g., a new product, a new information system, a new plant for a new product. The project manager is the key person responsible for completing the project on time, on budget, and within specifications so the project's customer is satisfied. If the project is not linked to the strategic plan of the organization, resources devoted to the project are wasted and a customer need is not met. This lack of connectivity occurs more in practice than most would believe.

Explain the role projects play in the strategic management process

Strategy is implemented primarily through projects. Successful implementation of projects means reaching the goals of the organization and thus meeting the needs of its customers. Projects that do not contribute to the strategic plan waste critical organization resources.

Individually identify projects assigned in previous terms. We're both sociocultural and technical elements factors in the success or difficulties in the projects?

Students will naturally focus on sociocultural aspects in part because they are more familiar with concepts such as leaderships, problem-solving, and teamwork than scope, WBS, and baseline budgets. Furthermore interpersonal friction is often a source of consternation on student projects. The instructor may have to point out that interpersonal conflicts often arise from ill-defined scopes, uneven work schedules, and poor planning.

How does a communication plan benefit management of projects?

The advantage of establishing a communication plan is that instead of responding to information requests you are controlling the flow of information. Keeping stakeholders informed with timely information reduces confusion, unnecessary interruptions, and can provide project managers greater autonomy. Why? Because by reporting on a regular basis how things are going and what is happening, you allow senior management to feel more comfortable about letting the team complete the project without interference

Why is it important to assess the culture of an organization before deciding what project management structure should be used to complete a project?

The culture of the organization can impact the effectiveness of different project management structures. Organizational cultures that do not encourage teamwork, collaboration, and cross-functional integration need a stronger project management structure (i.e., project team, project matrix) to be successful. Conversely, a functional matrix can be effective in an organization in which the culture of the organization is conducive to project management.

What distinguishes a weak matrix from a strong matrix?

The most distinguishing characteristic between a weak and strong matrix is the relative influence the project manager has over project participants and functional managers. In a weak matrix, the project manager role is limited to coordinating project activities. The functional managers are responsible for managing their segment of the project. The project manager has little formal authority over the project. In a strong matrix, the project manager controls most aspects of the project, including design trade-offs and assignment of project personnel. The functional managers are responsible for supporting project completion. A project manager in the weak matrix is not likely to be involved in performance appraisals and compensation decisions while project managers in a strong matrix would be.

The technical and sociocultural dimensions of project management are two sides to the same coin. Explain.

The system and sociocultural dimensions of project management are two sides of the same coin because successful project managers are skillful in both areas. The point is successful project managers need to be very comfortable and skillful in both areas.

What does it mean if the priorities of a project include: Time-constrain, Scope-accept, and Cost-enhance?

Time-Constrain: means that the project must be finished at the specified date; Scope-Accept: reduce scope&performance of the project can be tolerated Cost-Enhance: costs should be optimized, and opportunities should reduce costs

What are the six elements of a typical scope statement?

a. Project objective b. Deliverables c. Milestones d. Technical requirements e. Limits and exclusions f. Reviews with customer.