Chapter2-4 Project Management Framework

Project : Temporary endeavor with a beginning and an end Create a unique product ,service or result Done for a purpose Has interrelated activities Is progressively elaborated

Portfolio is a collection of programs and/or projects and other work that are grouped together to meet strategic objectives. These may not be interdependent or directly related.

Program is a group of related projects managed in coordinated way to obtain benefits and control not available from managing them individually.

PMI defines stakeholders as : Project Manager Customer Performing Organization , government agencies Sponsor Team Internal / External End users Society, Citizens Others – owners, funders, sellers

Stakeholder Management is made up of the following steps : Identifying stakeholders Assessing their knowledge and skills Analyzing the project to make sure their needs will be met Getting and keeping them involved in the project through assigning them work, using them as experts, reporting to them,

involving them in changes and the creation of lessons learned Getting their sign-off ad formal acceptance during closure

Forms Of Organization Functional : (Power rests with the functional manager) Matrix : (In strong matrix, power rests with the project manager . In week matrix, power rests with the functional

manager . In a balanced matrix, the power is shared between the functional manager and the project manager . Projectized : All organization is by projects. The project manager has total control of projects. Personnel are assigned and

report to a project manager .

Advantages and Disadvantages of each organizational form :

ProjectizedAdvantages Disadvantages

Efficient project organization No "home" when project is completedLoyalty to the project Lack of professionalism is disciplinesMore effective communications than functional Duplication of facilities and job functions

Less efficient use of resources

MatrixAdvantages Disadvantages

Highly visible project objectives Not cost effective because of extra administrative personnel

Improved project manager control over resources More then one boss for project teamsMore support from functional organizations More complex to monitor and controlMaximum utilization of scarce resources Tougher problems with resource allocationBetter coordination Need extensive policies and proceduresBetter horizontal and vertical dissemination of information than functional

Functional mangers may have different priorities than project managers

Team members maintain a "home" Higher potential for conflict and duplication of effort

FunctionalAdvantages Disadvantages

Easier management of specialists People place more emphasis on their functional specialty to the detriment of the project

Team members report to only one supervisor No career path in project managementSimilar resources are centralized, companies are grouped by specialties

Project manager has no authority

Clearly defines career path in areas of work specialization

Chapter5 Integration Management

Constraints: are factors that limit the project team's options.

Lessons learned: is a document that talks about what was done right, wrong and what be done differently if the project could be redone. It should cover three areas : Technical aspects of the project. Project management (how did we do with WBS creation, risk etc.?) Management (how did we do with communications and leadership as a project manager? )

Project management information system (PMIS) : is an all-encompassing phrase to mean the system set up in advance that keep the project manager informed of the status of all project tasks. A PMIS is critical to now what is really happening on the project and the real status of the project . it may contain manual and automated tools , techniques and procedures including reporting ,meetings, management by walking around ,asking questions and using a Gantt chart.

Project plan components :Project charter BudgetProject management approach ScheduleScope statement ResourcesWBS Change control plan/systemResponsibility chart/assignments Performance measurement baselinesNetwork diagram/ major milestones Management plans (scope, schedule, cost, quality, staffing, communications, risk

response, procurement )

Baseline : every time you see the word baseline, think of the original project plan with approved changes .

Kickoff meeting : a meeting of all parties to the project (customers, sellers, project team, senior management, agencies, functional management, sponsor). It is held at the end of the planning phase just before beginning work on the project .

Work authorization system : a formal procedure for sanctioning project work to ensure that work is done at the right time and in the proper sequence .

Change control board : is formed to review change requests to determine if additional analysis is warranted . they also approve or reject project changes. the board may include the project manager, customer, experts, sponsor ad others .

Change control system : a collection of formal, documented procedures, paperwork, tracking systems and approval levels for authorizing changes .

The exam has many situational questions, dealing with hw to make changes.For example :A functional manger wants to make a change to the project .what is the first thing a project manager should do? Or , a senior manager wants to make a change to the scope of work . what is the best thing to do first?The answers are the same in either case . generally, the team should follow these steps :

1. evaluate (assess) the impact of the changes to the project2. create (compute) alternatives including cutting other tasks, crashing, fast tracking, etc .3. meet with management ,sponsor and internal stakeholders4. meet with customer as necessary

Chapter6 Scope Management

Scope Management: Includes the processes required to ensure that the project includes all the work and only the work required to complete the project successfully .It is primarily concerned with what is ad what is not in the project.

Project Selection Methods :1. Benefit Measurement method (comparative approach )

Murder board – a panel of people who try to shoot down anew project idea Peer review Scoring models Economic models Benefit compared to cost

2. Constrained optimization methods (mathematical approach) Linear programming Integer programming Dynamic programming Multi-objective programming

Project Charter Components : Project title and description (what is the project? ) Project manager assigned and authority level (who is given authority to lead the project ,and can he determine

budget, schedule, staffing, etc. ?) Objectives (what numerical criteria related to the triple constraint will be used to measure project success ?) Business case (why is the project done?) Product description / deliverables (what are the specific deliverables are wanted and what will be the end result

of the project ?) Signed and approved by Senior management (a person who is high enough in the organization to warrant everyone on the team to him

or her. )

Constraints : factors that limit the team's options such as resources , budget, schedule and scope .

Scope Statement : provides a basis for common understanding of the scope among the stakeholders and to determine if the project phase has been completed .

Scope management Plan : a document that describe how scope and scope changes will be managed .

Management By Objectives (MBO) : A management philosophy that says an organization should be managed .It has three steps :1. Establish unambiguous and realistic objectives .2. Periodically evaluate if objectives are being met3. Take corrective action

Delphi technique : A method most commonly used to obtain expert opinions on technical issues, scope of work needed, estimates or risks .

To use Delphi technique, a request for information is sent to experts, the responses they return are compiled, and the results are sent back to them for further review. The Delphi technique has three rules :

1. Do not get the experts in the same room2. keep the experts identifies anonymous3. Try to build consensus

A WBS is a deliverable-oriented grouping of project components that organizes and defines the total scope of the project .

Scope Definition and Decomposition : is subdividing the major project deliverables into smaller, more manageable components. The best way to handle these terms is to think of scope definition and decomposition as what you are doing, and the WBS as the tool to do it .

Scope Verification : The process of formalizing acceptance of the project scope by the stakeholders .

Scope verification focus is on the acceptance of the scope of the work while quality control involves analysis of the correctness of the work .

Chapter7 Time Management

Scheduling Tools :1. Milestone Charts2. Flowcharts3. Bar(Gantt) Chart4. Network Diagram

Under what circumstances would you use a network diagram instead of a Gantt chart ?

To show interdependencies between tasks

Under what circumstances would you want to use a milestone chart instead of a Gantt chart ?

To report to senior management

Under what circumstances would you want to use a Gantt chart instead of a network diagram ?

To track progressTo report to the team

A network diagram is completed after the project charter ,project staffing and WBS .

Methods to draw network diagrams :1. Activity on Node (AON) or Precedence diagramming method (PDM) :

There can be 4 type of relationships between tasks :Finish-to-start , Finish-to-finish , Start-to-start , Start-to-finish

2. Activity on Arrow (AOA) , Activity on Line or Arrow Diagramming Method (ADM)This method uses :

Only finish-to-start relationships between tasks May use dummy activities PERT and CPM estimating techniques can only be drawn on AOA diagram

3. GERT : A network diagram method that allows loops between tasks .

Types Of Dependencies : The sequence of tasks depends on the following dependencies :1. Mandatory Dependency (hard logic) 2. Discretionary dependency (Preferred , preferential or Soft logic )3. External Dependency

Estimating Methods :1. CPM ( Critical Path Method ) :

It refers to estimating based on one time estimate per activity2. PERT (Program Evaluation and Review Technique )

PERT formula : (P+4M+O)/ 6Standard Deviation of a task using PERT : P-O/6Variance of a task using PERT : (P-O/6)2

# in order to find standard deviation of a series of items ,there is a rule . You cant add standard deviations ; you must convert standard deviations into variances and then take the square root of the total to convert back into standard deviation .

3. Monte Carlo Simulation .

The critical path is the longest duration path through a network diagram and determines the shortest time to complete the project .

LAG : inserted waiting time between tasks

SLACK ( FLOAT) : the a mount of time a task can be delayed without delaying the project .Slack is found using either LS-ES or LF-EF . LS is the latest a task can start, ES is the earliest a task can start , LF is the latest a task can finish and EF is the earliest a task can finish .

The general definition of slack can be refined further to the following subcategories of slack :1. Free Slack (float) : the a mount of time a task can be delayed without delaying the early start date of its successor .2. Total Slack (float) : the amount of time a ask can be delayed without delaying the project completion date .3. Project Slack(float) : the amount of time a project can be delayed without delaying the externally imposed project completion

date required by the customer or management , or previously committed to by project manager .

Shortening the Schedule ( Duration compression ) :1. Re-Estimating 2. Crashing : Adding more resources to critical path tasks while maintaining scope3. Fast Tracking : doing critical path tasks in parallel that were originally planned in series

Resource Leveling : Leveling lets schedule and cost slip in favor of having a stable number of resources each month .

Heuristics : means a rule of thumb

Variance analysis : comparing actual dates with planned .

Chapter8 Cost Management

Inputs To Estimating : (or what do you need before you estimating cost or time ) :1. WBS2. Network Diagram3. Schedule4. Historical information5. Resource pool6. Risk management plan7. Risks

Resource Planning involve :1. Review WBS2. Identify potentially available resources3. Review historical information a bout the use of resources in past or similar projects .4. Review organizational policies on resource use5. Solicit expert judgment on what resources are needed and available .6. Quantify resource requirement by task7. Develop a plan to what types of resources are needed , in what numbers , when

Cost estimating methods :1. Analogous estimating (top-down) :

top or middle managers use expert judgment or the actual time and cost of previous ,similar projects as the basis for estimating the current project . analogous estimating is a form of expert judgment .

2. Bottom-Up estimating :with this technique ,the people doing the work create cost and schedule estimates. Estimates ,based on the WBS ,are rolled up to get a project total

3. Parametric Estimating : .Use a mathematical model to predict project costs and it has two types :

Regression (or scatter diagram ) Learning curve – the 100th room printed will cost less than the first room because of improved efficiency .

4. Computerized estimating tools

EARNED VALUE ANALYSISAcronym Term InterpretationPV Planned Value What is the estimated value of the work planned to e done ?EV Earned Value What is the estimated value of the work actually accomplished ?AC Actual Cost What is the actual cost incurred ?BAC Budget at Completion How much did we budget for the total job ?EAC Estiamte at

CompletionWhat do we currently expect the total project to cost ?

ETC Estimate to complete From this point on,how much more do we expect it to cost to finish the job ?VAC Varience at completion How much over or under budget do we expect to be at the end of the project ?

Advantages of analogous estimating DisadvantagesQuick Less accurateTasks need not be identified Estimates prepared with a limited amount of detailed

information and understanding of the projectLess costly to create Requires considerable experience to do wellGives the project manager an idea of the level of management's expectations

Infighting at the highest management levels to gain the biggest piece of the pie without knowing what the pie is

Overall project costs will be capped Extremely difficult for projects with uncertainty

Advantages of bottom-up estimating DisadvantagesMore accurate Takes time and expenses to do this form of estimatingGains buy-in from the team Tendency for the team to pad estimatesBased on a detailed analysis of the project Requires that the project be defined and understoodProvides a basis for monitoring and control Team infighting to gain the biggest piece of the pie

Name Formula InterpretationCost Variance (CV) EV-AC Negative is over budget ,positive is under budgetSchedule Variance (SV) EV-PV Negative is behind schedule , positive is a head of scheduleCost Performance Index (CPI) EV / AC We are getting $____________out of every $1Schedule performance Index (SPI)

EV / PV We are [only] progressing at ______% of the rate originally planned .

Estimate at completion (EAC)Note : There are many ways to calculate EAC. The first formula to the right is the one most often asked on the exam

BAC / CPI

AC + ETC

AC + BAC – EV

AC + (BAC-EV) / CPI

As of now how much do expect the total project to cost ? $_____ . Used if no variances from the BAC have occurred or you

will continue at the same rate of spending Actual plus a new estimate for remaining work. used

when original estimate was fundamentally flawed. Actual to date plus remaining budget .used when current

variances are thought to be a typical of the future Actual to date plus remaining budget modified by

performance. used when current variances are thought to be typical of the future .

Estimate to Complete (ETC) EAC – AC How much more will the project cost ?Variance at completion BAC – EAC How much over budget will we be at the end of the project ?

OriginalPlan PV BAC

AC ETC EAC

Old Term Old Acronym New AcronymBudgeted Cost of work scheduled BCWS PVBudgeted cost of work performed BCWP EVActual cost of work performed ACWP AC

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Accuracy of estimates : there is three levels :1. order of magnitude estimate : this type of estimate is usually made during the initiating phase and is in the range of -25% to

+75% from actual .2. Budget estimate : this type of estimate is usually made during the planning phase and is in the range of -10% to +25% from

actual 3. Definitive estimate : this type of estimate is also made during the planning phase and is in the range of -5% to + 10% from

actual.

Present Value : means the value today of future cash flows and can be found by the formula :PV = FV / (1+r)n

FV : future value r: interest rate n : number of time periods

Net Present Value (NPV) :means the present value of the total benefits (income or revenue ) less the costs .You have two projects to choose from .project A will take three years to complete and has an NPV of US $45000. project B will take six years to complete and has an NPV of US $85000 which one would you prefer ?The answer is project B

Internal Rate of Return (IRR) :You have two projects to choose from : project A with an IRR of 21% or Project B with an IRR of 15% which one you would prefer ? the answer is project A

Benefit Cost Ratio (BCR) : compares the benefits to the costs of different projects where benefits are the same as revenue, or sometimes referred to as "payback" . Remember that revenue is not the same as profit . a BCR of >1 means the benefits are greater than the costs . a BCR of <1 means the costs are greater than the benefits . a BCR of 1 means the costs and benefits are the same .

Opportunity Cost : The opportunity given up by selecting one project over another .You have two projects to choose from : Project A with NPV of US$ 45,000 or Project B with an NPV of US$ 85,000 what is the opportunity cost of selecting project B ?The answer is $45,000

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Today

Chapter9 Quality Management

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Impact of Poor Quality :1. Increased Costs2. Low morale 3. lower customer satisfaction4. Increased risk

Cost Of Conformance Cost Of Non ConformanceQuality training ReworkStudies ScrapSurveys Inventory costs

Warranty costs

Tricks for understanding the difference between quality planning ,assurance, and control

Tricks to understand the difference

Quality Planning Quality Assurance Quality ControlPlan Implement ,check overall Measure detailsWhat quality standards should we use on the project ?

How will we meet those standards

What lessons can we find to improve quality – quality audit ?

Let's take the outputs of quality control measurement and see if we will meet the overall quality standards.

Are our quality standards still appropriate ?

Let's measure (test) the number of errors in the program .

Let's measure schedule performance.

Did we meet the specific quality standards ?

Mostly done during Planning Executing controlling

Quality planning includes :1. identifying quality standards relevant to the project and determining how to satisfy them2. Benchmarking3. Benefit/Cost analysis4. flowchart5. design of experiments6. cost of quality7. fishbone diagram

Quality Assurance includes:1. the process of evaluating overall performance on a regular basis to provide confidence that the project will satisfy the

relevant quality standards2. re-evaluating quality standards , methods and procedures used on the project3. quality audits – a structured review of quality activities that identifies lessons learned .

Quality Control Tools :1. Inspection2. Pareto diagram3. Fishbone diagram4. Checklists5. Statistical sampling6. control charts7. Flowcharting8. Trend analysis

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Chapter10 Human Resource Management

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Human Resource Responsibilities for Project Managers :1. creating a project team directory2. negotiating with resource managers for best resources3. creating project job descriptions for team members and other stakeholders4. understanding the team's and other stakeholders needs for training related to their work on the project and making sure they

get the training5. creating a formal plan for team , management and other stakeholders ; how they will be involved in the project and what roles

they will perform – a staffing management plan

Responsibility Chart :1. Responsibility Matrix : this chart cross-reference team members with tasks they are to accomplish2. Resource histogram :Is a graph that shows the number f resources used each month and is displayed in a bar chart format.3. Resource Gantt chart . : Shows WHEN staff is allocated to tasks

Halo Effect : The tendency to rate high or low on all factors due to impression of a high or low rating on some specific factor. This can mean " you are a great programmer therefore we will make you a project manager and also expect you to be great "

Powers Of Project Manager :1. Formal (legitimate) 2. Reward3. Penalty (coercive) 4. Expert5. Referent

Leadership styles :1. Directing : Telling others what to do2. Facilitating : Coordinating the input of others3. Coaching : Instructing others4. Supporting : Providing assistance along the way5. Autocratic making decisions without input6. Consultative : Inviting ideas from others7. Consensus Problem solving in a group with decision making based on group agreement >

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Chapter11 Communications Management

The following terms sometimes show up on the exam :1. Nonverbal : about 55% of all communications are nonverbal ( e.g. based on physical mannerisms )2. Para lingual : means the pitch and tone of your voice .this also help to convey a message 3. Active Listening : The receiver confirms that she is listening ,confirms agreement and asks for clarification .4. Effective listening : watching the speaker to pic up physical gestures and facial expressions, thinking about what you want to

say before responding asking questions repeating and providing feedback .5. feedback : saying things like " Do you understand what I have explained " usually asked be the sender .

Communications Method When usedFormal written Complex problems , project plans , project charter ,

communicating over long distancesFormal verbal Presentations , speechesInformal written Memos , email , notesInformal verbal Meetings , conversations

Communication Blockers :1. Noise2. Distance3. Improper encoding of messages4. Saying "that is a bad idea "5. Hostility 6. Language7. Culture

Communication Channels : N x (N-1) /2 where N equals the number of people

Performance reporting : 1. Status report : describing where the project now stands .2. Progress report : describing what has been accomplished .3. Trend report : examining project results over time to see if performance is improving and deteriorating4. forecasting report : predicting future project status and performance .5. variance report : comparing actual results to planned .6. earned value : integrating scope , cost and schedule measure to assess project performance .

All projects must be closed out no matter the circumstances under which they stop , are terminated or complete . if the project involves contracts , contract close out should occur before administrative closure .

What activities are done during closure ?1. Product verification2. Financial closure3. Lessons learned4. Update records5. Final project performance reporting6. project archives

Chapter12 Risk Management

Definition of Risk or Risk event : a discrete occurrence that may affect the project for good or bad .

Risk Factors :1. The probability that it will occur (what)2. The range of possible outcomes (impact or amount at stake )3. Expected timing (when) in the project life cycle4. Anticipated frequency of risk events from that source (how often )

Risk averse - some one who does not want to take risks .

Risk Tolerances : The amount of risk that is acceptable ( tolerance level ) .for example " a risk that affects our reputation will not be tolerated " or " a risk of two weeks delay is okay but nothing more .

A risk management plan may include :1. Methodology 2. Roles and responsibilities : non team members may be included3. Budgeting for risk management process4. Timing : hoe often the risk process will be performed throughout the project5. scoring and interpretation6. Thresholds : a method to determine which risks will and will not be acted upon7. Reporting formats8. Tracking

Risk Categories : New1. Technical , quality or performance risks2. Project management risks3. organizational risks4. external risks

Risk Categories : Old 1. External : regulatory , environmental , government , market shifts 2. Internal : Time , Cost , unforeseen conditions , scope changes , inexperience , poor planning , people , staffing , materials ,

equipment3. Technical : Changes in technology4. Unforeseeable : Only a small portion of risks ( some say a bout 10% ) are actually unforeseeable .

Information-Gathering Techniques :1. Brainstorming2. Delphi technique3. Interviewing4. Strengths , weaknesses , opportunities and threats analysis

Types Of Risk :1. Business : Risk of a gain or loss2. Pure ( Insurable ) risk : Only a risk of loss ( e.g. fire ,theft , personal injury )

Risk Triggers : (Symptoms) : A PM should determine what are the early warning signs for each risk on a project so that they will understand when to take action .

Expected Monetary Value (or Expected Value ) : The product of two numbers , probability and consequences ( impact or the amount at stake )

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Risk Response Strategies : 1. Avoidance2. Mitigation 3. Acceptance4. transference ( Deflection , Allocation )

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Contingency Plans - Planned response to risks or putting in place the contingency plans set up during risk response planning

Workarounds : unplanned responses to risks or dealing with risks that you could not or did not anticipate .

Chapter13 Procurement Management

General Rules :1. A contract is a formal agreement 2. All requirements should be specifically stated in the contract .3. All contract requirements must be met4. changes must be in writing and formally controlled5. Most governments back all contracts by providing a court system for dispute resolution .

Project manager role in procurement :1. Identify risks and incorporate mitigation and allocation of risks into the contract2. Help tailor the contract to the unique needs of the project .3. Fit the schedule for completion of the procurement process into the schedule for the project .4. Be involved during contract negotiation5. Protect the integrity of the project and the ability to get the work done 6. Protect the relationship with the seller

The Procurement Management ProcessSTEP What happens during

"BUZZWORDS"What do you have when you are done

1. Procurement planning Make or Buy Make or by , contract type selected , scope of work drafted

2. Solicitation planning RFP created RFP ready3. Solicitation Q & A Proposal created4. Source selection Pick one Contract signed5. Contract Administration Admin Substantially complete6. Contract closeout Finish Done

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The difference between administrative closure and contract closeout :1. Contract closeout occurs first. All contracts would be closed out before the project is closed out . Therefore, at the end of the

contract, the project manager would perform a procurement audit for each contract . administratively close out the contract , and then administratively close out the project when the whole project is completed .

2. Administrative closure may be done at the end of each project phase and at the end of the project as a whole. Contract close out is done only once , at the end of the contract .

3. Administrative closure uses the term " lessons learned " and contract closeout uses the term " procurement audit "4. Contract closeout requires more documentation tan administrative closure .

Chapter14 Professional Responsibility

Professional Responsibility means :1. Do the right thing2. Follow the right process3. Act ethically , fairly and professionally4. Watch for conflicts of interests or the appearance of conflicts of interest5. Report violations6. Increase knowledge and practices7. Deal with problems

Professional responsibilities breaks down into the following categories :1. Ensure individual integrity2. Contribute to the project management knowledge base3. Enhance individual competence4. Balance stakeholders interests5. Interact with team and stakeholders in professional and cooperative manner