Theory questions PROM

Disadvantages of Agile PM

-Doesn't satisfy top managers' need for budget, scope and schedule control -Need long time to evolve in an org. -Best on small proj. F2F replaces timeconsisting documentation

What major info. will you find in a Project Review?

-Process and methods review Review of the strategic intent, selection criteria, project charter, objectives, scope and acceptance criteria. -Organizational review What fundamental org. culture properties affect project success and failures, and what influences the teams

What are the best practices to outsource work?

-Well defined requirements and procedures -Extensive training and team-building exercises -Well-established conflict management -Frequent review and status updates -Long-term outsourcing relationships All parties work together as partners sharing the ultimate goal of a successful project

Advantages of Agile PM

-Work is divided into smaller chunks that are more easily scheduled and controlled -Collaboration between customer and designers is increased -> happy customers -Methods demand that features be tested and functional when applied

Six reasons scheduling resources is important

1) If resources are limited and activity time estimates are accurate, the resource-constraint schedule will materialize as the proj. is implemented, not the time-constraint schedule. 2) Creating schedule beforehand, leaves time to consider other reasonable alternatives 3) Sometimes priorities can change 4) Provides info. needed to prepare time-phased work package budget with dates 5) Allows PM'm to assess how much flexibility they have over certain resources 6) You identify what you already have, and what you need

5 characteristics that differentiate projects

1. An established objective 2. A defined lifespan (beg. and end) 3. Involvement of several departments and professionals 4. Doing something which has never been done before 5. Specific time, cost and performance requirements.

What are challenges to manage virtual teams?

1. Developing trust (to each other, geographical seperation) 2. Effective patterns of communication (when to email, when to use electronical bulletin boards, when to videoconference, when to call, when to fly)

What are the six elements of a scope statement?

1. Project Objective (what, when and how much the project concerns) 2. Deliverables (expected deliveries throughout) 3. Milestones (significant event that occurs) 4. Technical requirements (clarify the deliverables) 5. Limits and exclusions (limits you will have to deal with, and what is not included from the proj. side) 6. Reviews with customer (internal and/or external view from the customer)

8 traits being an effective project manager

1. System thinker 2. Personal integrity 3. Proactive 4. High emotional intelligence 5. General business perspective 6. Effective time management 7. Skillful politician 8. Optimist

Three advantages using a project maturity model

1. The purpose of maturity models are to enable org. to assess their progress is implementing the best practices in their industry and continuously move to improve 2. Project-driven companies with higher maturity levels are more successful in managing projects. 3. Serves as a measuring stick and an indicator of progress

Differences between leading and managing a project

A good project manager is valuable because they have the ability to both manage and lead a project.

Matrix

A hybrid organizational form in which a horizontal project management structure is "overalid" on the normal functional hierarchy. +: Efficient (resources can be shared across multiple proj. as well as within division, flexible) -: conflict, stressful (at least two bosses), slow

Define a Project

A project is a temporary endeavor undertaken to create a unique product, service or result. The major gal is to satisfy a customer's need.

Contigency reserves are split into:

Budget reserves: are set up to cover identified risks, and are allocated to specific segments or deliverables Management reserves: are set up to cover unidentified risks and are allocated to risks associated with the total project

Cost Performance Index (CPI)

CPI = EV / AC

Cost Variance (CV)

CV = EV - AC CV = BV + SV

Direct costs

Clearly chargeable to a specific work package, and can be influenced by the project manager. Represents cash outflows and must be paid as the proj. progresses. x: labor, material, equipment

Technical dimension of project management

Consists of the formal, disciplined, purely logical parts of the process. Planning, scheduling and controlling projects. Eg. creating the deliverables and the WBS facilitates planning and monitoring the progress of the project. "Science"

Project risk can/can't be eliminated if the project is carefully planned. Explain

Contigency funds are established to cover project risks - identified and unknown. When, where and what cost is not known until the risk occurs. The size of the contingency reserves depend on uncertainty inherent in the project. Risk management is reactive, not proactive

How would a project manager use the CPI?

Cost Performance Index measures cost efficiency. The CPI can provide an "early warning signal" as to cost overruns so that adjustments can be made to the budget or scope of a project. CPI = EV / AV

5 common reasons for crashing a project

Crash = Shortening the duration of an activity or proj. beyond hen it can be normally done 1. The estimated completion date is beyond what is publicly promised 2. You suddenly have access to a lot more resources 3. Time to market: Intense global competition 4. Unforseen delays (bad weather) 5. Incentive contracts (makes reductino of time rewarding)

Risk Register Document

Details all identified risks, including descriptions, category and probability of occurring, impact and respons, amongst others.

What are the three major types of costs?

Direct costs Direct Project Overhead Costs General and Administrative Overhead Costs

Estimated Cost at Completion (ECAC)

ECAC = BCAP / CPI

Estimated Time at Compl. (ETAC)

ETAC = BTAC / SPI

Compression of the Product Life Cycle

In high-tech industries the PLC is averaging 6 months to 3 years, vs. 30 years ago it was 10-15 years. Speed therefore becomes a competitive advantage - you need products and services to the market ASAP.

What are some of the key environmental forces that have changed the way projects are managed?

Increase in the importance and the role of projects in contributing to the strategic direction og organizations. -Compression of the Product Life Cycle -Knowledge Explosion -Tripple Bottom Line -Corporate Downsizing -Increased Customer Focus -Small projects represent big problems

What is Agile project management

Instead of attempting to plan the entire proj. up fornt, Agile Pm relies on incremental, interactive development cycles to complete projects. It is a continuously journey; the final proj. design is not known in great detail and is always developed.

How do environmental factors affect project implementation?

Legal/Political Security Geography Economics

Functional Organizations

Managing within the existing functional hierarchy of the org. Keyword - delegation. +: No change (No radical alteration in the design), Flexibility (max. flexibility in the use of staff. Specialists can temporary work on the proj. -: Lack of focus (proj. responsibilities can get pushed aside to meet primary obligations), Slow (lack of horizontal, direct communication)

Small projects represent big problems

Many companies have no idea of the problems involved with inefficient management of small projects. They often have the same, or more risk as do large projects.

How does a communication plan benefit management of projects?

Many of the problems that occur in a project can be traced back to insufficient time devoted to establishing a well-grounded internal communication plan. Poor communication is a major contribution to project failure.

Direct Project Overhead Costs

More related to which resources of the organization are being used in the project. The costs can be tied to project deliverables or work packages. x: salary of the PM

Bottom up estimates

More t´detailed than TD. It includes cost elements in the WBS and in the major deliverables, and therefore normally has a higher figure than TD. Costs more than TD because there's a lot more work. Used later on in the project

Why are accurate estimates critical to effective project management?

Needed to support good decisions Needed to schedule work Needed to develop cash flow needs Needed to determine how long the proj. should take and its cost Needed to determine whether the proj. is worth doing Needed to determine how well the proj. is progressing

Knowledge Explosion

Product complexity has increased the need to intergrate technology. Project Management has emerged as an important discipline for achieving this task. The growth in new knowledge has increased the complexity of projects.

What is more important for successfully completing a project? Formal / Cultural

Project managers have to be able to operate in several, potentially diverse, organizational cultures. Interact with clients, stakeholders and employees.

Why should a project manager emphasize group rewards over individual rewards?

Projects are a collaborative effort, so it makes sense to encourage and reward the team. Recognizing individuals can give room for problems, conflicts, jealousy and create a toxic environment.

General and Administrative Overhead Costs

Represent organization costs that are not directly linked to a specific project. These costs are carried for the duration of the project. x: advertising

Schedule Performance Index (SPI)

SPI = EV / PV

Schedule Variance (SV)

SV = EV - PV

Why honor the customs/traditions?

Show respect and be polite to achieve what you want. If they don't like you, you won't.

Why is it important to build a relationship before you need it?

Successful PM's need to be not only influential, but also need to exercise influence in a way that builds ans sustains the trist of others, and this can take time. Trust maintains smooth and efficient interacting.

Dedicated teams

Teams operate as separate units from the rest of the parent org. +: Simple (operates independently), Fast (full attention from participants, quicker response time) -: Expensive (New position (PM), resources are assigned on a full-time basis)

Why should an organization not rely only on ROI (Return of Investment) to select projects?

The NPV model finds the present value of all net cash inflows. It considers the time value of money, cash flow and profitability. When using the NPV model, the ROI-hurdle rate can differ for different projects. ROI's also differ for riskier vs. safer projects.

The portfolio of projects is typically represented by compliance, strategic, and operations projects. Explain

The aim of portfolio management is to ensure that projects are aligned with strategic goals and prioritized appropriately. It provides info. that allows people to make better business decision.

Why is the critical path and slack important to the P?

The network is the framework for the proj. system and is used by the proj. manager to make decision concerning the cost, time and performance. If slack is delayed, it will impact the rest of the slack and the project.

What is the project network?

The proj. network is the tool for planning, scheduling and monitoring project prosess. It shows the logical sequences, and in most cases the times for the activities to start and finish along with the longest path(s) throughout the network - the critical path.

Tripple Bottom Line

The threat of global warming has brought sustainable business practices on the agenda.

Sociocultural dimension of project management

This side involves the messier world of implementation. It centers on creating a temporary social system within a larger organization environment that combines the talents of a divergent set og professionals working to complete the project. "Art"

Portfolios of projects - Operational projects

Those needed to support current operations. They are designed to improve efficiency og systems, reduce costs etc. x: installing new equipment

Portfolios of projects - Strategic projects

Those that directly support the organizations long-run mission, directed toward increasing revenue or market share. x: new products

The technical and sociocultural dimensions of PM are basically two sides of the same coin. Explain.

To be successful, a project manager must be a master of both dimensions, and balance their attention to both the technical and sociocultural aspects of project management.

Explain the role projects play in the strategic management process

Two major dimensions of strategic management are: Responding to changes in the external environment, and allocating scarce resources of the firm to improve its competitive position. The second dimension is the internal responses to new action programs aimed at cnhancing the competitive postition of the firm. Strategic management positions the org. to meet the needs and requirements of its customers for the long term.

Portfolios of projects - Compliance projects

Typically those needed to meet regulatory conditions required to operate in a region. They usually have penalties if they aren't implemented. x: rebuilding something after a tsunami

Top down estimates

Usually uses experience and/or informatino to determine the proj. duration and cost. It's not very accurate, as the refernece point can be very different from your actual project. Used in the beginning. Often much of the info. needed to make accurate time & cost estiamtes are not available in the starting phase.