MGMT 444: Chp 1-3 Study Guide
Outsourcing projects using a request for proposal:
The number of new technologies that are available to support learning is growing. So are the number of vendors and freelance developers who have the skills and tools needed to use those technologies. Outsourcing often makes sense today for several reasons: Flexible resources: When project loads are lower, staff may do them. But when project loads increase, staff may need to outsource project work to meet all the company's goals. Skills: When a company has a project using a new technology, they may not yet have the skills to do it in-house. L&D managers may have staff members work with a contractor to complete the project and grow employee skills with a new technology
Establish project objective:
The objective must be agreed upon by the sponsor or customer and the organization that will perform the project.
Cost Section:
The objective of the cost section of the contractor proposal is to convince the customer that the contractor's price for the proposed project is realistic and reasonable.
Management Section:
The objective of the management section of the contractor proposal is to con-vince the customer that the contractor can do the proposed work (the project) and achieve the intended results
Technical section
The objective of the technical section of the contractor proposal is to convince the customer that the contractor understands the need or problem and can provide the least risky and most beneficial solution
Assign responsibility
The person or organization responsible for each work item in the WBS must be identified in order to inform the project team of who is responsible and accountable for the performance of each work pack-age and any associated deliverables.
What is a proposal selection criteria?
The scorecards are not the sole mechanism for evaluating proposals and selecting the winner. They are usually used as input to the decision-making process.
the evaluation criteria.
These are the criteria that the customer will use to evaluate proposals from competing contractors in order to select the one to perform the project.
Cost Section: Materials
This portion gives the cost of materials the contractor needs to purchase for the project.
Cost Section: Labor
This portion gives the estimated costs of the various types or classifications of people who are expected to work on the project.
Proposal formatting
Three sections Technical Management Cost Detail level Depends on complexity of the project Requirements from the RFP
Management Section: Related experience
To help convince the customer that the contractor can do the project, the contractor should provide a list of similar projects it has completed.
Cost Section: Subcontractors and consultants
When contractors do not have the expertise or resources to do certain project tasks, they may outsource some of the work to subcontractors or consultants to perform those tasks
Bid
When you are ready to purchase It's formal. Like ordering from a set menu. When you have exact requirements Advantage: comparison of prices
RFQ
When you know exactly what you want. Ask questions about requirements. It's structured. Like a five-course meal. When you know exactly what you want and why. Advantage: lets you focus on price.
RFI
When you're looking for information. Ask general questions. It's casual. Like grabbing a drink. When you're not sure what you're looking for. Advantage: they're fast.
RFP
When you're ready to shop. Ask specific questions It's formal. Like a dinner party. When you know what you want,but need details. Advantage: comparison of vendors.
Bid/No Bid Factors to consider: Competition
Which other contractors might also submit a proposal in response to the RFP?
Bid/No Bid Factors to consider: Extension of capabilities
Would the proposed project provide the contractor with an opportunity to extend and enhance its capabilities?
What are constraints?
You must be this tall to ride the rollercoaster The project objective could be constrained by many factors, including scope, quality, schedule, budget, resources, risks, customer satisfaction, and stakeholder support.
Major deliverables
are the major end products or tangible items that are expected to be produced during and at the completion of the performance of the project,
Constraints
could include such things as a requirement to complete the project without disrupting the current workflow, or the necessity to outsource a project because the organization does not have the appropriate expertise or capacity to perform the project with its own staff
Approval requirements
define the limits of authority of the project manager,
What are the elements of the closing phase?
project evaluations are conducted, lessons learned are identified and documented to help improve performance on future projects, and project documents are organized and archived. Final phase Collect and make final payments Recognize and evaluate staff Conduct post project evaluation Document lessons learned Archive project documents Record lessons learned
What are the elements of the initiating phase?
projects are identified and selected First phase Identify need, problem, or opportunity Determine if the select project What will you use to evaluate the different projects Develop project charter Rationale Is it possible/realistic Project objective Expected benefits General requirements and conditions Decide if RFP needed
Description
provides a high-level description of the project.
Project title
should be concise and create a vision for the end result of the project
Reporting requirements
state the frequency and content of project status reports and reviews
Purpose
summarizes the need and justification for the project.
statement of work (SOW)
that outlines the major tasks the customer wants the contractor or project team to perform to accomplish the project scope and produce all the deliverables.
What is the definition of a project?
A project is an endeavor to accomplish a specific objective through a unique set of interrelated activities and the effective utilization of resources.
Define scope:
A project scope document must be prepared. It should include customer requirements, a statement of work, as well as a list of deliverables and associated acceptance criteria that can be used to validate that the work and deliverables meet specifications.
Determine budget:
A total budget for the project can be developed by aggregating the cost estimates for each activity.
Estimate activity costs:
Activity costs should be based on the types and quantities of resources estimated for each activity as well as the appropriate labor cost rate or unit cost for each type of resource.
Implications of global project management
Adds a dimension of complexity Changes project dynamics Requires awareness of factors Cultural differences Currency Codes and regulations Business organization Political relations Workforce availability Competency Skills to know: Foreign language skills Knowledge of Cultures Geography World history and contemporary events International economics Awareness of Customs and etiquette Geopolitical environment Technology adoption and translation software
Examples of aligning goals to select a project:
Alignment with company goals Anticipated sales volume Increase in market share Establishment of new markets Anticipated retail price Investment required Estimated manufacturing cost per unit Technology development required Return on investment Human resources impact Public reaction Competitors reaction Expected time frame Regulatory approval Risks
What are assumptions?
All girls like the color pink. What people assume is going to happen -> can kill a job
Bid/No Bid Factors to consider: Project resources
Are appropriate resources available to perform the project if the contractor is selected as the winner?
Bid/No Bid Factors to consider: Proposal resources
Are appropriate resources available to prepare a quality proposal?
Develop project schedule:
Based on the estimated duration for each activity and the dependent relationships of the sequence of activities in the network diagram, develop the overall project schedule, including when each activity is expected to start and finish, as well as the latest times that each activity must start and finish in order to complete the project by the required completion date.
What are some project attributes?
Clear objective Series of interdependent activities Various resources Specific time frame Unique, one-time endeavor Sponsor or customer Degree of uncertainty specific time frame or finite life span
Bid/No Bid Factors to consider
Competition Risk Mission Extension of capabilities Reputation Customer funds Proposal resources Project resources
Sequence activities:
Create a network diagram that shows the necessary sequence and dependent relationships of the detailed activities that need to be performed to achieve the project objective
how do you prepare for an RFP?
Decision made to outsource to external resource Comprehensively describe project requirements Includes need, problem, or opportunity description Allows contractors to develop a thorough proposal Facilitates the development of evaluation criteria Maybe communicated informally or formally, in writing or verbally
what deliverables the customer expects the contractor to provide
Deliverables are the tangible items that the contractor is to provide during and at the completion of the project.
Estimate activity resources
Determine the types of resources, must consider the availability of each type of resource, whether it is internal or external (such as subcontractors), and the quantity available over the duration of the project.
What are the elements of the controlling phase?
Different set of skills Controlling changes
Bid/No Bid Factors to consider: Customer funds
Does the customer really have funds available to go forward with the project?
What are the elements of the project management process?
Establish project objective: Define scope: Create WBS: Assign responsibility Define specific activities: Sequence activities: Estimate activity resources Estimate activity durations: Develop project schedule: Estimate activity costs: Determine budget:
Importance of building relationships
Establishing and building trust is key to developing effective and successful relationships with clients and partners. One way to foster this is to always keep your word; be reliable and responsive
How are projects identified and selected?
Evaluate needs, costs, benefits Determine which are projects Select project Develop criteria List assumptions Gather data Evaluate each opportunity Combine "gut" feelings and quantitative information to make decision
Bid/No Bid Decision making
Evaluation by a contractor of whether to go forward with the preparation of a proposal is sometimes referred to as the bid/no-bid decision
Bid/No Bid Factors to consider: Reputation
Has the contractor successfully completed projects for the same customer in the past, or were there problems that left the customer dissatisfied
Cost Section: Travel
If travel (other than local travel) is required during the project, the costs of travel such as air fare, lodging, and meals need to be included.
What are the phases of the Project Life Cycle?
Initiating Phase Planning Phase Performing Phase Controlling Phase Closing Phase
Bid/No Bid Factors to consider: Mission
Is the proposed project consistent with the contractor's business mission?
Bid/No Bid Factors to consider: Risk
Is there a risk that the project will be unsuccessful technically or financially?
Estimate activity durations:
Make a time estimate for how long it will take to complete each activity, based on the estimate of the resources that will be applied.
The proposal solicitation process:
Notify potential contractors Identify selected group in advance to send copy Advertise in selected journals, newspapers, or websites Maintain competitive situation Provide equal information to all bidders Hold bidders' meeting to answer questions
What is a project charter?
Once a project is selected, it is formally authorized using a document referred to as a project charter, sometimes called a project authorization or project initiation document. In this document, the sponsor provides approval to go forward with the project and commits the funding for the project. The project charter also summarizes the key conditions and parameters for the project and establishes the framework for developing a detailed baseline plan for performing the project
What are the attributes of a Project Manager?
Prevent, anticipate, overcome Have good planning and communication Be responsible Control Changes
Definition of project management:
Project management is planning, organizing, coordinating, leading, and control-ling resources to accomplish the project objective.
What is a project selection criteria?
Project selection involves evaluating potential projects, and then deciding which of these should move forward to be implemented.
What are the elements within a project charter?
Project title Purpose Description Objective Success criteria or expected benefits Funding Major deliverables Acceptance criteria Milestone schedule Key assumptions Constraints Major risks Approval requirements Project manager Reporting requirements Sponsor designee Approval signature and date
The types of Requests:
RFI RFQ RFP Bid
Define specific activities:
Review each work package in the WBS and develop a list of the detailed activities that need to be performed for each work package and to produce any required deliverables.
What are some key constraints within which a project must be managed?
Scope Quality Stakeholders Schedule Budget Resources Risk Customer satisfaction Assumptions
Cost Section: Documentation
Some customers want the contractor to show separately the costs associated with the project documentation deliverable
Technical section: Proposed approach or solution
Some needs lend themselves to a specific proposed solution
Cost Section: Facilities
Some projects may require special facilities or additional space for the project team, for security reasons, to store materials, or to build, assemble, and test the project end item (deliverable)
Cost Section: Equipment
Some projects require equipment that must be purchased as part of the project.
Management Section: Equipment and facilities
Some projects require the contractor to use or have access to unique equipment or materials, such as high-performance computers, proprietary software, manufacturing equipment, or testing facilities
How to Identify a project:
Start of Initiating phase Recognize need, problem, or opportunity Various ways for identification Organizations strategic planning Response to unexpected events Group organized to address a need Important to clearly identify need to determine if worth pursuing Use decision-making process to prioritize and select project with greatest need Projects can also be identified as part of a company's normal operating or maintenance needs. There are circumstances when projects are identified as a result of unexpected events volunteers may come together and decide they want to do a project for a particular reason
Create WBS:
Subdivide the project scope into pieces or work packages. Although projects may seem overwhelming when viewed as a whole, one way to conquer even the most monumental endeavor is to break it down into smaller components. A work breakdown structure (WBS) is a hierarchical decomposition of the project work scope into work packages to be executed by the project team that will produce the project deliverables.
What is PMI?
The Project Management Institute (PMI) is a premier worldwide not-for-profit association for practitioners in the project management profession and individuals who want to learn more about the profession. PMI publishes A Guide to the Project Management Body of Knowledge(PMBOK® Guide), which provides a framework of processes and guidelines for the application of project management concepts, practices, and techniques. The association also created the PMI Code of Ethics and Professional Conduct, which sets standards and establishes expectations for professional behavior.
What are the elements within a RFP?
The RFP must state the project objective or purpose, statement of work (SOW) The RFP must include the customer requirements, what deliverables the customer expects the contractor to provide. acceptance criteria the customer will use to determine customer-supplied items the approvals required by the customer the type of contract the customer intends to use. the payment terms the customer intends to use. the required schedule for completion of the project and key milestones. provide instructions for the format and content of the con-tractor proposals. indicate the due date by which the customer expects potential contractors to submit proposals the evaluation criteria.
Management Section: Description of major tasks
The contractor should define the major tasks that will be performed in carrying out the project and provide a brief description of what each major task includes.
Management Section: Project organization
The contractor should describe how the work and resources will be organized to perform the project
Management Section: Deliverables
The contractor should include a list of all deliverables (tangible products or items) that will be provided during the project, such as reports, drawings, manuals, and equipment.
Management Section: Project schedule
The contractor should provide a schedule for performing the major tasks required to complete the project
Technical section: Benefits to the customer
The contractor should state how the proposed approach or solution would benefit the customer and achieve the project's success criteria or expected outcomes.
Technical section: Understand the need
The contractor should state its understanding of the customer's problem or need in its own words.
What are the elements of the performing phase?
the project plan is executed, and activities are carried out to produce all the project deliverables and to accomplish the project objective Third phase Accomplish project objectives Project manager leads Project team completes the project Increase pace as more resources are added Monitor and control progress Take corrective action as needed Manage and control changes with sponsor approval Achieve customer satisfaction with acceptance of deliverable
The RFP must include the customer requirements,
which define functional, operational, and performance specifications or capabilities that must be met.
What are the elements of the planning phase?
defining the project scope, identifying resources, developing a schedule and budget, and identifying risks Second Phase Show how project scope will be accomplished Plan the work and work the plan Develop baseline plan What needs to be done -- scope, deliverable How it will get done -- activities, sequence Who will do it -- resources, responsibilities How long it will take -- durations, schedule How much it will cost -- budget What the risks are Have actual resources plan the work
Acceptance criteria
describe the quantitative criteria for each major deliver-able that the sponsor will use to validate that each deliverable meets certain performance specifications and are the basis for the sponsor s accepting that the deliverable is indeed done correctly and meets the sponsor s expectations.
Determining need, opportunity, and mandates/problem:
during an organization's strategic planning, as part of its normal business operations, in response to unexpected events, or as a result of a group of individuals deciding to organize a project to address a particular need.
Major risks
identify any risk that the sponsor thinks has a high likelihood of occurrence or a high degree of potential impact that could affect the successful accomplishment of the project objective.
acceptance criteria the customer will use to deter-mine
if the project deliverables are completed according to the customer's requirements.
Key assumptions
include those that the project rationale or justification is based on
The RFP must state the project objective or purpose,
including any rational or background information that may be helpful to contractors so that they can prepare thorough and responsive proposals
Approval signature and date
indicate that the sponsor has officially or formally authorized the project.
Success criteria or expected benefits
indicate the outcomes or expected quan-titative benefits that will result from implementation of the project.
Funding
indicates the total amount of money the sponsor authorizes for the project
What is an RFP?
is a document, prepared by the sponsor/customer, which defines the project requirements and is used to solicit proposals from potential contractors to do the project
Milestone schedule
is a list of target dates or times (also referred to as mile-stone dates) for the occurrence of key events (also referred to as milestones) in the project timetable
Objective
is a statement of what is expected to be accomplished the end product or deliverable
Project manager
is an individual in the organization who has been identified to be the manager for the project.
Benefits of project management:
is having a satisfied customer project manager = led a successful project effort, enhanced your reputation as a project manager and positioned yourself for expanded career opportunities project team = satisfaction of being on a winning team individual contributor = greater contribution to future, more complex projects
Sponsor designee
is the person who the sponsor designates to act on behalf of the project sponsor
