MGT Quiz 2
Project management trade offs
Scope, Cost, Time
Limitations of WBS
dependency, sequencing, and timing of each of these factors are not included in the work package. A network activity can include one or more work packages.
Activity
an element in the project that consumes time—for example, work or waiting
Identify and briefly describe the five steps in defining a project
(1) Defining scope; (2) Establishing priorities; (3) Creating WBS; (4) Integrating WBS with organization; (5) Coding the WBS.
Identify and briefly describe the three types of project constraints that could impact or change the structure of project network
(1) Technical (logic)-the sequence that activities must be performed; (2) Resource-the absence of required people, materials, equipment, or working capital; (3) Physical-limitations based on space or environmental limits.
Identify and briefly describe the two major classifications of estimating project time and costs
(1) Top-down estimates are made for the project as a whole and typically made by top management; (2) Bottom-up estimates are made at the work package level and by those responsible for completing the work packages
Failures in work packages and networks are due to
(1) different people are used to define work packages and activities (2) the WBS is poorly constructed and not deliverable/output oriented
Top-Bottom Methods for Estimating Project Times and Costs
- Consensus Method - Ratio Method - Apportion Methods - Function Point Methods - Learning Curves
Bottom-Up Estimates
- Cost and time important -Fixed-price contract - Customer wants details
Why estimates can be off
- Interaction costs hidden in estimates - Normal conditions do not apply - Things go wrong in projects -Changes in project scope and plans - Overly optimistic
Top-Down Estimates
- Strategic decision making - High uncertainty - Internal, small project - Unstable scope
Bottom-Up Methods for Estimating Project Times and Costs
- Template Methods - Parametric Procedures Applied to Specific Tasks -Range Estimating - Phase estimating*
Use lags in order to
1. Break activities into smaller activities to avoid long delays 2. Constrain stat and finish of an activity
Problems in a multiproject environment
1. Overall schedule slippage 2. Inefficient resource utilization 3. Resource bottlenecks
Factors influencing quality estimates
1. Planning horizon; estimates of current events are close to 100 percent accurate but are reduced for more distant events. 2. Project duration; long-duration projects increase the uncertainty in estimates. 3. People; skills of the people making the estimates. Skills of the people working on the project, learning curve. Time spent communicating between team members. 4. Project structure; will influence time and cost estimates. E.g. dedicated project team or matrix. 5. Padding estimates. 6. Organizational culture. 7. Other factors; such as non-project factors.
Estimating Guidelines
1. Responsibility to those most familiar with task 2. Use several people to estimate 3. Based on normal conditions 4. Specify time units 5. Each task is independent of other tasks 6. Work package estimates should not include allowances for contingencies. 7. Add risk level
Each work package in the WBS must answer
1. what is being worked on 2. for how long 3. at what cost 4. how many resources are needed 5. who is responsible 6. how will is it being handled
Cost account
A control point of one or more work packages used to plan, schedule, and control the project. The sum of all the project cost accounts represents the total cost of the project.
Work Breakdown Structure (WBS)
A hierarchical decomposition of the total scope of work to be carried out by the project team to accomplish the project objectives and create the required deliverables.
Process Breakdown Structure (PBS)
A phase-oriented grouping of project activities that defines the total scope of the project. Each descending level represents an increasingly detailed description of project work. (Software development)
Resource-Constrained Project
A project that assumes resources are limited (fixed) and therefore time is variable.
Organization Breakdown Structure (OBS)
A structure used to assign responsibility for work packages.
Resource smoothing
A technique which adjusts the activities of a schedule model such that the requirement for resources on the project do not exceed certain predefined resource limits.
A hammock activity
Activity derives its name because it spans over a segment of a project. Determined after the network plan is drawn. Used to identify the use of fixed resources or costs over a segment of the project.
Merge Activity
An activity that has more than one activity immediately preceding it.
Scope Creep
the tendency for the project scope to expand over time (changing requirements, specifications, and priorities)
Laddering
Completing steps simultaneously. Example of making a trench.
white elephant
Projects that are over budget and under value, and the cost of maintaining them exceeds the benefits received (Olympics)
Resource Smoothing
Delaying noncritical activities to lower peak demand on resources
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.
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.
Parallel Activities
The activities can take place at the same time
Total Slack
The amount of time an activity can be delayed and not delay the project
free slack (free float)
The amount of time an activity can be delayed without delaying the early start of any immediately following activities
How does the WBS differ from the project network? How are WBS and project networks linked?
The network is developed from the information collected from the WBS and is a graphic flow chart of the project job plan. Networks provide the project schedule by identifying dependencies, sequencing, and timing of activities the WBS is not designed to do.
Work Package
The work defined at the lowest level of the WBS for which cost and duration can be estimated and managed.
Project Network
Tool used for planning, scheduling, and monitoring project progress.
Activity on node network (AON)
an approach used to create a network diagram, in which nodes represent activities and arcs represent the precedence relationships between them
Project charter
a document that authorizes the project manager to initiate and lead the project
Activity-on-arrow (AOA)
a network diagram in which arrows designate activities
Path
a sequence of connected, dependent activities
Burst Activity
has more than one activity immediately following it
Mega Projects
large-scale construction projects that require a huge capital investment; the construction of the Beijing Airport. Not only do they cost much more than expected, but they underdelivered on benefits they were to provide
Resources can include
people, materials, equipment,
Hierarchical Breakdown of the WBS
project, deliverable, subdeliverable, lowest subdeliverable, cost account, work package
A project scope should have
the objective, deliverables, milestones, technical requirements, limits and exclusions and reviews with customer
Critical Path
the path(s) with the longest duration through the network
Estimating in project management refers to
the process of forecasting or approximating the time and cost of completing project deliverables
The absence or shortage of resources can alter technical constraints, but
the resource dependency takes priority over the technological dependency but does not violate the technological dependency
Overview of project networks
• a visual flow diagram of the sequence, interrelationships, and dependencies of all the activities that must be accomplished to complete the project • Work packages from the WBS are used to build the activities found in the project network. • An activity can include one or more work packages. • The activities are placed in a sequence that provides for orderly completion of the project. Networks are built using nodes (boxes) and arrows (lines)
Project Communication Plans
∙ What information needs to be collected and when? ∙ Who will receive the information? ∙ What methods will be used to gather and store information? ∙ What are the limits, if any, on who has access to certain kinds of information? ∙ When will the information be communicated? ∙ How will it be communicated?
