Project Management Topic 3/Unit 3 & Topic 2/Unit 4

Closing

* Team members will have completed work * Smaller team may remain to turn the results over to the customer * There will not be anyone around to complete documentation or approve invoices for payment. * PM and project team will transition to other assignments * Lessons learned - experience gains documented - both positive and negative experiences * If customer ID items to be corrected, re-planning and executing may need to occur to satisfy customer.

In examining the triple constraints for the opening of a coffee shop, which development will affect the project scope? A) Addition to building is cancelled due to unanticipated underground storage tank B) Late winter freeze delays early spring start to construction C) Installation of parking lot takes an extra day due to weather D) Coffee cups have increased in price since they were selected

A

In this scenario, what would have been the effect if the winter was shorter and milder than predicted and the ground thawed and mud dried early? (Choose all that are correct.) A) You could negotiate to reduce cost due to ability to lengthen the schedule. B) Project could have started earlier. C) Nothing.

A & B

The changes described in the above scenario are an example of what? (Select all that are correct.) A) How a change to one aspect of the triple constraint impacts the other two. B) When part of the triple constraint changes, there is nothing that can be done to contain the other two. C) There is often more than one way to accommodate changes in a constraint.

A & C

Project Charter

A document that formally recognizes the existence of a project and provides direction on the project's objectives and management.

Operating Necessity Model

A process of selecting a project based upon if it will ensure ongoing operations.

Gantt Chart

A time and activity bar chart that is used for planning, managing, and controlling major programs that have a distinct beginning and end.

The project timeline has been determined. Milestone dates have been determined and identified. Time required for each task path is determined. The critical path is identified. Which statements are correct? (Choose all that apply.) A) Even though milestone dates are key dates in the project schedule, there are instances where they may be changed. B) Tasks on noncritical paths can have resources temporarily diverted to other tasks without impacting the schedule. C) Only changes to government regulations can justify changes to project scope. D) Only tasks on the critical path need be tracked. E) It is just as important to track progress of paths with long float times as tasks on the critical path.

A, B, E

Realistic

Accurately reflects the way the organization does business; Appropriate for the level of resources, capabilities, and external environment of the organization.

You have been going in so many directions at once that you decide to hire an assistant project manager to help you keep track of all the project details. How should you bill this expense?

As a project cost.

What is correct about a project baseline? (Choose all that apply.) A) The baseline provides a way for the project manager to assign blame when things go wrong. B) The baseline provides a means of determining how much requested changes will cause deviation from original project plans. C) The baseline document indicates what you based all your estimates on. D) The baseline documents the initial project scope that was agreed to. E) The baseline can help determine how much, if any, float time has been used.

B, D, E

Project Executing Phase

Based on the plans created during the project planning phase, the project team completes the required work activities. Outcomes are tangible or intangible products. Intermediate outcomes = Deliverables.

In reviewing chef Caesar's request for some additional specialized kitchen utensils he says he cannot live without, you need to compare the request with the .

Baseline

Aspects of Defining stage

Determine Project General Costs Determine Expected Revenues Clarify size of building

Baseline

Determines what is included in the scope, functional requirements, business needs, and stakeholders; important to have scope baseline well defined. Once a project is completed, any variances from the initial cost estimates, schedule, or project deliverables will be compared with the baseline requirements and approved changes.

Change Management Plan

Documents how changes to the project outcomes will be managed, approved, implemented, and monitored.

Time Management Plan

Explains how the schedule will be developed, monitored and controlled.

True or False. An increase in the original project costs will make it possible to purchase better quality materials and/or add resources that make it possible to speed up the project schedule.

FALSE

True or False. The key to creating a budget is careful and complete documentation of the assumptions that come from the project-defining phase.

FALSE

True or False: A project scope is an instrument used to view and evaluate a project.

FALSE

True or False: The triple constraint means there needs to be three justifications to change anything in the project.

FALSE

True or False: The project manager has created a Gantt chart for the project. They can now do the budget.

FALSE - Gantt shows elapsed time of project but not actual hours worked.

True or False. The scope statement requires the project be completed under budget. This an acceptable requirement.

FAlse - it is not reasonable to mandate spending less money than budgeted.

True or False. A cost of business includes travel expenses and technology investments necessary for the project.

False

True or False. A shortened set of project milestones will lead to increased labor costs to ensure that a project is completed on time.

False

True or False: In a construction project, better weather always allows for an early start to a project.

False

True or False. The project scope is the most important of the triple constraints since it describes what the project must produce.

False - All are important

Reasons for justifying a project can be classified as:

Government Requirement Reduce Costs / Increase Profits Meet Customer Needs Address Competition

Milestones

Key dates, usually when a particularly important deliverable must be delivered. ( May include customer reviews, government inspections, and other activities that must be performed on specific dates before the project may proceed - sometimes referred to as "cast in stone" indicating they cannot or will be extremely difficult to be rescheduled.

The contract offers the contractor a share of savings if the project comes in under budget, providing the scope is met, quality is not decreased, and schedule is met. Is this acceptable?

Maybe - since bonus is % of savings and not set amount, it must be verified that government permit this type of bonus compensation.

The project contract offers the contractor a bonus to complete the project early, as long as the scope is met, quality is not decreased, and budget is not exceeded. The amount of the bonus is based on how many days early the project is completed. Is this acceptable?

Maybe - since bonus is on # of days, considered cost savings and can be considered a % of savings, not set amount, so must be verified that government permit this type of bonus compensation.

Within the project schedule, what indicates critical events and other activities that must be performed by specific dates before the project may proceed?

Milestones

The financial measure of the total future benefits of a project minus the costs of the project is called .

Net present value

The key to creating a budget is careful and complete documentation of the assumptions that come from the -Select- phase.

Planning

PERT Chart

Production schedule specifying the sequence and critical path for performing the steps in a project.

A decrease in what may make it possible to increase the project scope and/or add materials or resources that make it possible to speed up the project schedule?

Project Costs

Project acceptance criteria, technical requirements, and what else are common components of project scope statements?

Project constraints

Constraint Project Costs

Project costs are sum of all expenses directly charged to the project including: salaries/wages; materials; facility purchase or rental (for project use); equipment purchase or rental ( for extent for project use); travel expenses (extent of use); tech investment incl systems and processes and even project management software, cost of quality level, all functions and scope requirements

What does a project baseline help to establish?

Projected scope, schedule, and cost

In the preceding scenario, use of a generator instead of connecting to the power grid is an example of change to what?

Scope

TRUE/FALSE: The discount rate can be equivalent to the interest rate that would be paid to a bank.

TRUE

True or False. You have created a project contract that offers the contractor a bonus to complete the project early, as long as the scope is met, quality is not decreased, and budget is not exceeded. This is acceptable.

TRUE

Float Time

The amount of time a specified task or activity can overrun without delaying the whole project

Low Cost

The cost of gathering data and running the model should be low relative to the scale of the project.

A possible change in cost has to be viewed in regards to any...

decrease in schedule or increase in scope.

Critical Path

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

Baseline is critical in

review changes and making smarter decisions about what to change. It reminds you of your initial assumptions and allows you to make educated decisions when you move away from where you started.

TRUE/FALSE: When calculating NPV, any one-time expenses do not need to be included.

FALSE

True or False: In the quality constraint, the customer can always revise the quality level to reduce costs or schedule.

FALSE - sometimes government has mandated safety levels

True/False: The project planning phase required few resources than the project defining phase.

False

Which financial concept used for project selection evaluates projects in the same way that financial investments are evaluated?

Internal Rate of Return

Capturing and Documenting Lessons Learned

Pm gather from own experiences, reviewing status reports, soliciting input from stakeholders. Normally stored centrally in knowledge base by an organization ( Can be both positive and negative). Completed in closing stage.

When Lessons Learned Should be Applied

Primary source for use in the defining and planning phases of a project.

The ____________ is a written statement summarizing the work that will be completed to provide a project outcome that will meet the customer's requirements. project sponsor

Project Charter

Constraint: "Project Schedule"

Project schedule is defined by beginning and end dates; can be represented as a timeline on a calendar, certain key dates (milestones) must be identified

Easy to use

Provide results in a reasonable amount of time. Results should be easily understood by the decision makers.

Model Selection Criteria

Realistic Capable Flexible Easy to Use Low Cost Comparable

Competitive Necessity Model

Require a project proposal, which includes justification, cost, and time estimates, as well as documented outcomes. Based on if project will ensure viability of the company in the competitive market.

Project Scope

Result of the project is desired to be. Defines the product of the project. (Scope Statement or Statement of Scope or Statement of Work (SOW))

Weighted Factor Scoring Model

Senior management assigns a level of importance of each criterion which then assigns a value based on that level when calculating the total project score.

Project Defining Phase

The idea for the project is formalized into a project proposal and the decision on whether the project will be selected for implementation is made. It begins when an idea for a project is identified by a company.

Payback Period

The length of time that it takes for a project to fully recover its initial cost out of the net cash inflows that it generates. Payback Period = Estimated Cost / Monthly Return or Cost/Savings

Comparable

The model should be usable across a range of projects such that the outcomes of the model can be used to compare projects.

Flexible

The model should provide accurate measures across a reasonable range of conditions.

Collecting Customer Requirements

The process of gathering information from the customer and stakeholders in order to define the high level project outcomes Pg 48 (Determines Processes and Activities needed)

Sacred Cow Projects

These projects are often created to satisfy the expectations of the leader with little regard for the project's viability or contribution to strategic or operational needs.

True/False: A Work Breakdown Structure is created to help ensure that stakeholders are satisfied that the project outcomes will be achieved and the project team understands the work to be completed.

True

Capable

Uses factors that are relevant to the organization; you would not expect one model to cover all dimensions of a project; you would want to use models that cover their dimension comprehensively

Scope Creep

adding functions to an information system after the project has begun - ambiguities in initial info or new information can lead to scope creep - can strain project budge, resources, time, etc

Work Breakdown Structure

defines the hierarchy of project tasks, subtasks, and work packages

Including time value of money in the payback period equation will _____ which of two projects being compared will be chosen

have an unknown impact on

Project Justification/Business Case

is a statement explaining the business need for the project. - helps tie back to strategic/operational goals

future net cash flows

need to know the costs (cash outflows) and benefits (cash inflows) for the entire working life of the project outcome.

Models are representations of _____

reality

Time Value of Money

the principle that a dollar received today is worth more than a dollar received in the future.

Defining Characteristics

* Developing proposal will require company resources (cost) in order to make a decision, not all ideas will move even into defining stage. * Project proposal * Few involved * Relationship w/ Customer begins to be defined. * Project Charter or Contract begins to formulate * Ends w/ decision to accept or reject project, if approved project sponsor will approve project charter

Execution Project Phase Characteristics

* Large numbers may be added to complete the project. * Real work of creating project outcomes. * Team uses plan to produce outcomes * Discuss how the linear process is interrupted by an iterative process - occurs when monitoring and controlling processes are used to ensure that the project execution is going as planned. If not, the team may need to return to planning in order to correct the situation and get approved before returning to execution. * Mindful of scope creep - when add functionality without caring about impact on rest of project. - changes must follow normal change management procedure and be approved by all parties.

The Procurement Management Plan identifies how the project team will acquire products and services from outside organizations. Choose what will be done during procurement management planning. (Choose all that apply.) A) Products and services will be put out to bid by at least three vendors to be sure we are getting the best product and service. B) We will go to the grocery store every day to see what is on sale. C) Cash will be used to get the best price. D) Food service companies will be allowed to bid on staples at a volume discount to be delivered as needed.

A, C, D

The Scope Management Plan documents how the scope will be initially developed, maintained during project execution, and verified at project closure. Choose which items will be done during scope planning. (Choose all that apply.) A) If you have time, you will have a food truck. B) You will be so successful that you should consider opening 25 franchises. C) You will open one restaurant. D) You will be done by October 31.

C & D

Module 12: Triple Constraints of Projects

Cost (Maximum Budget), Time (Schedule), Scope (Quality is aspect of scope) Presented in Triangle to show you cant affect one without affecting at least one of the others.

Project Life Cycle

Defining, Planning, Executing, Closing

When adding the consideration of the time value of money to a payback period model, cash flows are to reflect a more accurate estimate for the payback period.

Discounted

Requirements Management Plan

Documents how requirements will be analyzed, documented, and managed throughout the project.

Cost Management Plan

Explains how costs will be estimated, monitored, controlled during the project.

Procurement Management Plan

Identifies how the project team will acquire products and services from outside organizations.

Statement of Work

Includes project objectives, deliverables, acceptance criteria, technical requirements, project limits and exclusions, project milestones, project constraints, project assumptions.

What is a possible shortcoming of using a project selection model?

Models are singular in their vision of reality.

Project Selection Models

Models can move the focus of project evaluation and prioritization, depending on the purpose of the model. Numeric Models: return on investment, time required to return initial investment, market share or Non-numeric Models

Comparative Checklist

Non-numeric; uses series of questions to evaluate each potential project. Flexible; best with group of interviewers

Scope

Not just quality. Scope is number and type of features or functions. Quality is how well the feature meets the requirement of scope or function - subjective and often costly.

Examples of Measurable Goals - Vary depending on project type

* Date product needs to be ready for release * Price point to be achieved * Maximum production time required for assembly * Total cost of the project * Features and Functionality * Similar Quantifiable Results

TRUE/FALSE: The selection criteria determines if the initiative is a project, program or portfolio.

FALSE

(Defining Stage) Project proposal must include:

* Major project outcomes and deliverables * How the project will be completed * High-level estimate of cost and completion time * Reason for project * Benefits of project * Resources needed * Potential risks to derail * Major stakeholders and their roles in projects * Where the decisions are made by the deciding customer or stakeholder Feeds into the project charter.

Benefits of Iterative Processes

* Method to address Uncertainty * Provides Phase-Gates or "go/no go" where project can be easily stopped before more resources expended *

PM Closing Responsibilities

* Reassign any project resource back to company * Document the project results and lessons learned * Close out any procurement activities * Verify that the completed project is transitioned over to the customer.

Planning Characteristics

* Work Breakdown Structure * Project requirements gathered from stakeholders and the project team IDs work activities necessary to produce project deliverables. * SMEs may be added to team to carefully plan and budget activities needed to be completed. * Ends when the approval of the project scope, budget, and schedule are approved.

Project Defining Phase Activities

1) Collecting Customer Requirements 2) Requirements refined into measurable (SMART) goals and specifications. - serves to keep project team focused on outcomes that meet/exceed expectations 3) Measurable goals and specifications used to write the preliminary scope of the project. 4) Preliminary Scope within charter and deliverables must to agreed upon by customer/sponsor and the organization. 5) Project Justification Statement / Business Case 6 ) Project Selection Process 7) Project Charter

Activities of the Project Closing Phase

1) Deliver Project Outcomes and Deliverables to the Customer or Sponsor A) Confirm project final outcomes match requirements B) Turnover finished project deliverables C) Provide any documentation to customer/sponsor D) Obtain customer/sponsor acceptance and sign-off on the project outcome E) Get feedback 2) Close out all Procurements - any product or service obtained outside of team must be paid for or returned for credit. At closure of team, all project accounts will be closes so all invoices must be paid and credits received. A) Pay All open invoices B) Return excess materials C) Manage disposition of leased equipment D) Process all credits for returns and adjustments E) Reconcile all accounts payable F) Complete final financial reports required 3) Complete the administrative work to close out the project. A) Complete performance reports B) Archive all records C) Gather and document lessons learned D) Return all assets to the sponsoring organization E) Release team members to new assignments

Activities of Project Planning Phase

1) Project team begins to form - expert knowledge needed to ID activities, estimate costs, estimate activity completion times. 2) PM may or may not be assigned during defining, however must be named in planning to take the lead during the planning phase. 3) Costs will be incurred from people, office space, equipment, resources, etc required to do planning. 4) Degree of planning varies with scale of project - must be comprehensive enough that the schedule can be managed, budget accurate, activities clearly defined 5) Tools to plan Examples: Gantt Chart, Work Breakdown Structure, Network Diagram (only tools NOT plan itself) 6) Project Plan - robust document that addresses all the activities necessary to complete the project. "set of subsidiary plans that address all aspects of project management) 7) Conclusion - Team will have a schedule, budget, and scope that are sufficiently accurate - iterative process

Activities of the Project Executing Phase

1) Talent needs added, HR will guide PM in how to select team members, and then provide them with a project orientation and training. 2) Procurement people - will use procurement plan to acquire external materials/services needed 3) Project Team Members - begin completing activities to create project outcomes or related to various planning areas (communication, quality, stakeholder mgmt, etc) 4) PM directs/managers project work - reviewing, monitoring progress, ID issues - costs, schedule, scope, quality ( usually more than 1/2 PM time is spent on problem resolution around interpreting elements of the plan) 5) if PM detests issue, may need to intercede (called monitoring-"status" and controlling-"completed as planned") - May require REPLANNING and then back to executing with new plan 6) As part of monitoring and conrolling, outcomes are compared against scope to ensure customer expectations will be met - once all completed, execution phase is over

The Risk Management Plan documents how risk events will be identified in advance, monitored, potentially mitigated, and managed across the project life cycle. During a strategy session, you asked everyone to identify potential risks for the restaurant. Pick out which ones are the most relevant. (Choose all that apply.) A) A competitor will open up in the neighborhood. B) The weather will not be sunny. C) We will only be able to raise 75% of the money we need. D) The chef quits.

A, C, D

Scoring Criteria

Extends benefits of Checklist by identifying a set of criteria important to the company's objectives- adds score to criteria/questions - can be quantitative or qualitative

The Integration Management Plan documents how the various processes and planning areas will be kept in sync throughout the project life cycle. Choose which items will be done during integration planning. (Choose all that apply.) A) Describe accounting processes. B) Select colors for the dining room. C) Establish needs for procurement systems for ordering food. D) Have a food tasting. E) Describe what it will be like to take customer orders to give to the kitchen.

A,C,E

TRUE/FALSE: Project checklists are always a quick and simple approach to project selection

FALSE

The Communications Management Plan documents which information will be communicated, when it will be communicated, how it will be communicated, and to whom. What will be done during communication planning? (Choose all that apply.) A) Lunchtime chats will be used to gather information B) Monthly customer meetings will be held C) We will assume everyone understands what is happening based on intuition D) Team status reports will be done weekly

B & D

*** LEAVE PLANNING PHASE WHEN SCOPE, BUDGET, AND SCHEDULE ARE APPROVED BY CUSTOMER OR SPONSOR AND THE PROJECT TEAM. BECOME THE BASELINES TO MEASURE PROJECT PERFORMANCE THROUGHOUT EXECUTION.

Baseline to Measure Performance

Internal Rate of Return

Calculates the rate of return for a project; recognizes the time value of money by capturing both the duration of the investment return and the return rate. Rate that is identified by IRR is the rate of return, which makes the cost of the project equal to the future cash flows of the project. Higher Rate of Return is Desired.

Time

Calendar time of when something will be available (date or time of day) Work time required to produce or procure the item. (hours of labor / equipment / facilities used)

Execution Phase Completion

Complete when all the project work activities that produce the promised final deliverables are ready to be delivered to the customer or sponsor.

Who and Where is the Customer?

Customer is person/organization providing requirements that define the project outcomes receiving benefits of the project. May be within or outside of the organization.

Closing Phase Ends When...

Customer's acceptance of project outcome and host organization's acceptance of all project documentation signals the completion of the project closing phase and ends the prloject life cycle.

Human Resource Management Plan

Defines the roles, skills, and knowledge needed by project team members. Identifies when the human resource will be needed and how the person will be identified, trained, and integrated with the team.

Specifications Definition

Describe customer requirements that identify precise and measurable characteristics of the project outcome. (Ex Design and Engineering requirements - weight, dimensions, speed, etc)

Alignment

Describes connecting project outcomes to company goals.

Process Improvement Plan

Describes how the processes and procedures used on the project will be evaluated to ensure that the most efficient methods are implemented.

Project Planning Phase

Detailed planning occurs, level of detail tailored to align with project complexity, must be sufficient so stakeholders are satisfied outcomes will be achieved and project team aware of work needing done. Often done is Work Breakdown Structure.

Risk Management Plan

Documents how risk events will be identified in advance, monitored, potentially mitigated, and managed across the project life cycle.

Configuration Management Plan

Documents how the project team and stakeholders will keep track of the versions of project documents to ensure that the most up-to-date document is in use. Pg 49

Quality Management Plan

Documents how the quality of the project deliverables will be measured and what steps will be taken to monitor and assure that the quality meets the customer requirement.

Scope Management Plan

Documents how the scope will be initially developed, maintained during project execution, and verified at project closure.

Integration Management Plan

Documents how the various processes and planning areas will be kept in sync throughout the project life cycle.

Communications Management Plan

Documents which information will be communicated, when it will be communicated, how it will be communicated, and to whom.

Stakeholder Management Plan

Explains how stakeholders will be identified along with their level of interest in the project and influence over the project. This is closely tied to the communications plan since stakeholders will need varying levels and frequency of information. Pg 49

Net Present Value

Financial measure of the total future benefits of a project minus the costs of the project. TVM considered by discounting future benefits. Uses concept of future net cash flows. + NPV - future benefits outweigh cost of project - NPV - costs of project outweigh future benefits

Planning Aspects:

ID work activities/tasks Draft architectural blueprints Estimate Materials and labor costs.

Project Selection Process

If project benefits are worth the costs, project will move forward to planning phase. Project Sponsor will have authority to expend resources for projects and will sign project charter, which summarizes all the key information about the project and authorizes the project manager to assemble the team and begin detailed planning.

Project Closing Phase

Is when the project outcomes are delivered to the customer and/or sponsor and the customer and/or sponsor evaluates them to determine if they are acceptable - deliverables are ready, the budget and time requirements are met and quality is achieved, and lessons learned are documented. When the customer and/or sponsor accepts the project outcome(s), the PM must ensure that all the loose ends are tied up.

Developing Lessons Learned

It is always better to learn from someone else's mistakes rather than learning by accident.

The Iterative Nature of a Project

Large Projects may be broken into different phases, each phase is a full project with a deliverable. At end of phase 1, a decision will be made whether phase 2 will occur - called a phase-gate that gives leadership opportunity to decide if moving forward is prudent.

Preliminary Project Scope

Preliminary scope is a written statement summarizing the work that will be completed to provide a project outcome that will meet the customer or sponsor's requirements. To be further refined during planning phase. Preliminary scope and deliverables must be agreed upon by the customer or sponsor and organization.

Project Selection

Process of identifying which projects an organization will undertake. Involves evaluating and prioritizing project proposals.

True or False: You have planned the grand opening for the restaurant. Everyone is excited to see the chef design an amazing menu and to have the team decorate the dining room. You have left the planning stage and are now in the execution phase.

TRUE