PJM 5900 – Final Exam Review 1 Learning Objectives—Week 1 • Define project management • Define a project • Identify the attributes of projects • Differentiate projects from maintenance and Operations • Identify the benefits of project management • Identify the primary generic constraints in project management • Demonstrate an understanding of project management processes • Describe the project management knowledge areas 2 Define project management: Project management is a discipline for the planning and managing resources for the successful completion of a specific effort with specific goals and objectives. It is a set of best practices for planning, executing and controlling project work. Define a project: A project is a temporary endeavor undertaken to create a unique deliverable, a product, service or result. Identify the attributes of projects: projects are temporary, unique and deliver a product, service or result. Differentiate projects from maintenance and operations: Project work is unique, the approach is adaptability to change, activities are based on budgeting which is critical, the sequence of activities must be determined, the work crosses organizational units and the reporting relationship is informal. General management is routine, managed by exception, periodic budgeting is important, activities are pre-determined, the work is done within an organizational unit and the reporting relationship is formal. Identify the benefits of project management: The benefits of project management are better control of financial, physical and human resources, improved customer relations, shorter development times, lower costs, higher quality, increased reliability and predictability, better internal co-ordination, improved focus and worker moral. Identify the primary generic constraints in project management: The triple constraints are scope, cost and schedule. As scope increases or decreases the schedule and cost either increase or decrease.. Demonstrate an understanding of project management processes: The project management processes are initiating, planning, executing, monitoring and controlling and closing. Describe the project management knowledge areas. The project management knowledge areas are; integration management, scope management, schedule management, cost management, quality management, resource management, communication management, risk management, procurement management and stakeholder management. 2 Learning Objectives—Week Two • Define portfolio and program • Differentiate between process groups and project life cycle phases • Identify project management process groups and project processes • Explain the interrelationships between portfolio, program and project management • Identify the characteristics of portfolios and programs • Classify projects into portfolios and programs according to their characteristics 3 Define portfolio and Program: A portfolio is projects, programs, subsidiary portfolios and operations managed as a group to achieve strategic objectives. A program is related projects, subsidiary programs and program activities that are managed in a coordinated manner to obtain benefits not available from managing them individually. Differentiate between process groups and project life cycle phases: Process groups are The project processes are the processes, tools and techniques used to ensure the success of the project. The project life cycle characteristics are starting the project, organizing the project, carrying out the project work and closing the project. PMBOK defines it as the series of phases that a project passes through from its start to its completion. Identify project management process groups and project processes: The project management process groups are: The project management process groups are initiating, planning, executing, monitoring and control and closing. There are 49 knowledge areas processes that fall into the five project management process groups. Explain the interrelationships between portfolio, program and project management: A project is a temporary endeavor undertaken to create a unique product, service or task. Projects are grouped into programs which are related project, subsidiary programs and program activities that are managed in a coordinated manner to obtain benefits not available from managing them individually. Portfolios are project, programs, subsidiary portfolios and operations managed as a group to achieve strategic objectives. Program and project management focus on doing programs and projects the right way and portfolio management focuses on doing the right programs and projects Identify the characteristics of portfolios and programs: Programs are related projects that look to optimize the projects as a whole rather than individually, resources can be shared to keep all projects on schedule. Portfolios like financial portfolios focus on the global strategy to ensure the organization is working on the rights projects, investing in the right areas employing the correct resources on the right projects and ensuring that the projects are consistent with the strategy of the organization. Classify project into portfolios and programs according to their characteristics: Think about developing a new airplane. The engine design is the project, propulsion design is the program and the entire aircraft is the portfolio. 3 Learning Objectives—Week 3 • Explain how projects are initiated within organizations • Describe the processes of the initiating process group • Identify the inputs of the initiating process group • Identify and describe the components of a project charter • Create a project charter • Define the term stakeholder and identify the key stakeholders of a project 4 Explain how projects are initiated within organizations: Business cases are developed on strategic ideas. The business cases are presented to Senior Management who select the projects that will proceed. Project are selected based on their value (financial, competitive and strategic) to the organization, a mandate by regulators and expect judgement. Describe the processes of the initiating process group. The processes in the initiating group are Develop Project Charter and Identify stakeholders. The Project Charter defines, at a high level, the business justification, scope, budget and schedule for the project. Stakeholders are individuals, groups, or organizations that may affect, be affected by or perceive themselves to be affected by a decision, activity, or outcome of a project, program or portfolio. Identify the inputs of the initiating process group: The inputs of the Project Charter are the business case, agreements, enterprise environmental factors (EEF), and organizational process assets (OPA). The inputs of identifying stakeholders are the Project Charter, Business Case, project management plan project documents, agreements, EEF and OPA. Identify and describe the components of a project charter: The components of the project charter are project purpose, measurable project objectives and related success criteria, high level requirements, high level project description, boundaries and key deliverables, overall project risk, summary milestone schedule, preapproved financial resources and key stakeholder list. Define the term stakeholder: Stakeholders are individuals, groups, or organizations that may affect, be affected by or perceive themselves to be affected by a decision, activity, or outcome of a project, program or portfolio. 4 Learning Objectives—Week 4 • Describe the Project Management Institute (PMI)’s project management framework • Identify the elements of the project management framework • Explain how the project management knowledge areas are integrated with the process groups and the project management processes to create a practical project management framework • Identify the processes of the planning process group • Explain the purpose of a Requirements Traceability Matrix • Compare and contrast the PMI’s project management (PM) framework with other PM frameworks such as PRINCE2 and Six Sigma 5 1. PMI Project Management Framework is Process Groups and Knowledge areas. 2. The Process Groups are: Initiating, Planning, Executing, Monitoring and Controlling and Closing. The Knowledge Ares are: Integration Management, Scope Management, Schedule Management, Cost Management, Quality Management, Resource Management, Communications Management, Risk Management, Procurement Management and Stakeholder Management 3. The process groups and knowledge areas build on each other through progressive elaboration. Using Inputs, Tools and Techniques and Outputs. Inputs are based on processes you’ve completed in prior process and Enterprise Environmental factors and Organizational Process Assets. Tools and Techniques are the processes within the knowledge areas and the outputs flow to the next steps. 4. The planning process group includes: Project Management Plan, Scope Management, Requirements, Scope, WBS, Schedule Management, Activities, Sequence Activities, Activities Duration, Schedule, Cost Management, Estimate Costs, Budget, Quality Management, Resource Management, Activity Resources, Communication Management, Risk Management, ID Risks, Qualitative Risk Analysis, Quantitative Risk Analysis, Risk Resources, Procurement Management and Stakeholder Engagement. 5. Prevents Scope Creep by ensuring that all requirement tie back and forward to activities. Six Sigma improves quality of output. Waterfall PRINCE2 Initiating Start Planning Plan Executing Monitoring Direct Manage Stage Close Close 5 Learning Objectives—Week 5 • Identify the processes involved in the planning process group • Define the scope of a project • Draft a Project Scope Statement • Create a Work Breakdown Structure • Describe the characteristics of a quality work breakdown structure (WBS) • Differentiate between a process-based breakdown structure and a work breakdown structure • Differentiate between project deliverables and project activities 6 Identify the processes involved in the planning process group. The processes involved in the planning process are; scope schedule and costs. Define the scope of a project. The scope of the project is the sum of the products, services and results to be provided as a project. What is a project scope statement? The description of the project scope, major deliverables, assumptions and constraints. A WBS decomposes deliverables into sub-deliverable and work packages. Work packages are the smallest deliverable to which cost and duration are defined and managed. A quality WBS decomposes the quality standards into at least 2 levels and provides the quality standards Process-based WBS defines work in process steps (work phases or function). The process steps taken to deliver each deliverable. In a construction project it might be design, administration, excavate, demolition, etc. The WBS defines work based on deliverables and decomposes the deliverables into sub-deliverables and work packages. Differentiate between project deliverables and project activities. Project deliverables are part of Scope planning and Project Activities are part of scheduling activities 6 Learning Objectives—Week 6 • Define activities for a project schedule management plan • Create an activity list for a project schedule management plan • Define milestones for a project schedule management plan • Estimate activity durations for a project schedule management plan • Distinguish between duration and effort in effort-driven scheduling models • Compare and contrast activity duration estimating techniques such as PERT estimating techniques, parametric estimating techniques, and expert judgment 7 • Define Activities is the process of identifying and documenting the specific actions to be performed to produce the project deliverables. • Create an Activity List by decomposing the WBS deliverables into a series of activities/tasks. Continue to decompose until you reach the most appropriate level for planning. WBS Deliverables are nouns Activities/Tasks are verbs. • Milestones are time-bounded but don’t represent work, they are used as checkpoints. They are also called gates, phase gates and decision points. In Rolling Wave initiation planning, you add key milestones in the initial long range plans. • Estimate activity duration methods are expert judgment, analogous estimating, parametric estimating PERT estimating (O+4M+P)/6 • Distinguish between duration and effort. Duration is the total elapsed time between the beginning and completion of the activity. Effort is the actual time to complete a task. In an effort-driven scheduling method the duration is shortened or lengthened as resources are added or removed, while work remains unchanged. • Compare and contrast: Expert Judgment is using SMEs both those assigned to the team and other to estimate duration based on their experience. Analogous Estimating refers to using a similar model based on historical data. Parametric Estimating is using statistic applied to a historic model. PERT estimates are a more rigorous statistical tool which is most appropriately used when the project has a great deal of uncertainly. 7 Learning Objectives—Week 7 • Develop a project schedule by defining dependencies between project activities • Differentiate between AON and AOA networks • Explain and create different types of dependencies in a project schedule • Create a network diagram for a project schedule • Calculate and analyze the critical path of a project schedule • Differentiate between burst and merge activities • Differentiate between lead and lag time in a project schedule • Calculate slack time in a project schedule 8 Develop a project schedule by defining dependencies between project activities. There are three types of dependencies Mandatory: logically there is no way to complete the task unless they are put in a certain order. Discretionary the order is defined by the team. External are determined by someone outside the project. Additionally there are 4 different dependency scheduling types. Finish-to-Start Task A finishes before Task B. Start-to-Start. Task B starts when Task A starts. Finish-to-Finish Task B finishes when Task A finishes. Start-to-Finish Task A starts when Task B finishes. An AON network is Activity on Node and is the method used by MS Project. AOA is Activity on Arrow which is usually used with a PERT chart. A Merge Activity is an activity that has two or more preceding activities on which it depends. A Burst Activity is an activity that has more than one activity immediately following it. Lead time is an acceleration of the successor activity and can be used only on finish-to-start activity relationships. Lag time is a delay in the successor activity and can be found on all activity relationship types. Lag time is generally scheduled in the beginning of the Project. Lead time is generally scheduled as the project progresses. Slack is determined by a backward pass through the critical path. It represents the amount of time an activity can be delayed without delaying the project’s completion. 8 Final Review • Give an example of: – Mandatory Dependency – Discretionary Dependency – External Dependency • What is a: – AOA Network Diagram – AON Network Diagram 9 There are 3 kinds of Dependencies or Relationships: – Mandatory Dependency– Logically, there is no way to complete the tasks unless they are put in a certain order; e.g., you can’t start testing a drug until the drug has been developed. – Discretionary Dependency– these relationships are suggested by and defined by the project team; e.g., We will not start testing drug until we have determined that the product is safe and effective in monkeys -- External Dependency – are determined by someone outside the project; e.g. the drug tests are dependent upon the supplier bringing the syringes chemicals to create the drug. What is a: – Activity on Arrow (AOA Network Diagram) are usually used with PERT Charts, these are the earliest type of network diagram; they can only be used to show simple FS (Finish-to-Start) relationships so they have begun to be replaced by: – Activity on Node (AON Network Diagram), which are also called Precedence Diagrams are typically used with the Critical Path Method. They can show more complex relationships and have become the preferred method for most PMs. This is the method MS Project uses. 9 Final Review • What tasks need to be done first? 10 This is an example of an Activity on Arrow Network Diagram • Each Arrow represents an Activity – notice that the activity is given a name (in this case A, B, etc.) and assigned a duration (e.g., A = 10) • The circle or “node” represents the start and end point for the activity. So the numbers in the nodes represent the point just before the activity begins, not the activity itself. • The Arrows point from left to right and they can only represent FS (Finish-toStart) relationships • We can look for “paths” through this network. One path would be A, and once A is done then D and then F and then H to the 7th step. Which we’ll say represents the end of the time segment we’re looking at. We’re not concerned with when activities actually occur at this point – only with their dependencies and how long they take. So that path A-D-F-H would be 10+8+7+2 days = 27 days. The task which needs to be done first is A and/or B. 10 Final Review • What are the paths in this Network Diagram? • What is the critical path? 11 Another use for the Activity on Node (AON) Network Diagram is to determine Critical Path. You will recall that Critical Path is the sequence of activities that represents the longest path through a project, which determines the shortest possible duration. The Critical Path if delayed would delay the completion of the project. Once you have a start date, the actual dates appear on the nodes. The Critical Path in this example is A – C – E – G – H. We determine this as follows: we work left-to- right in what is called a “forward pass” adding the duration to the earliest start time of each activity. Activity A takes 2 days and has no predecessors. Activity A’s earliest start time is 0 as it has no predecessor and the earliest finish time is 2 days. Activity C’s predecessor is Activity A so the earliest start time is 2 adding the duration of 2 the earliest finish time is 4 days. Activities not on the Critical Path can be delayed and as a result have slack or float. Float is the amount of time that a schedule activity can be delayed or extended from the early start date without delaying the project finish date or violating a schedule constraint. We determine the amount of float by working right-to-left in what is called a “backward pass”. We start with the latest finish date and subtract the duration to determine the latest start time. You will notice that Activity F can start as late as day 10 and Activity B can start as late as day 1. The importance of this is that if you are running behind and you have resources working on Activity F you can deploy the resources from Activity F to one of the other Activities on the Critical Path and reduce the duration. MS Project will populate the Critical Path based on the duration. MS Project makes the assumption that there are 5 days in a week. As a result in this example, MS Project will calculate the duration of the Critical Path as 19 days as it will add two weekends to the original 15 days. The completed critical path drawing is found on page 15 in week 7. 11 Learning Objectives—Week 8 • Define the “Estimate Activity Resources” Process • Identify Resource needs for a project • Assign Resources to a project activities • Explain the concept “resource leveling” • Describe different approaches to estimating activity resources and costs • Estimate resources and costs for activities in a project • Demonstrate an understanding of the nature and types of cost drivers in a project • Classify project costs into their fixed and variable components • Distinguish between fixed, variable, and overhead costs in a project • Create a time-phased cost baseline Define the “Estimated Activity Resources Process.” Determine the Human Resource, Material, Equipment and Facilities Requirements utilizing the WBS and apply one of the five estimating techniques to each requirement Identify resources needs for a project. Human resources can be identified by thinking about: What skills are required for each task? Do you need an expert? Are special skills required? Are the resources available internally? Material, equipment and facilities resources need to be identified as well. Assign resources to a project activities. Identify what resources are available, what percentage of their time is available, will the resource be available for the entire project and are the resources available when needed. Explain the concept of resource leveling: A technique in which start and finish dates are adjusted based on resource constraints with the goal of balancing the demand for resources with the available supply. It can be used when shared or critically required resources are available only at certain times or in limited quantities or are over-allocated. Available float is used to level resources. Describe different approaches to estimating activity resources and costs. Resource estimating can be done utilizing the following method, Expert Judgment. Bottom-up Estimating which is a method of estimating project duration or cost by aggregating the estimates of the lower level components of the WBS. Analogous Estimating is a technique for estimating duration or cost using historical data, like a similar project. Parametric Estimating is an estimating technique in which an algorithm is used to calculate cost or duration based on historical data and project parameters like cost/square foot. PERT Estimating which is not used as much as it only works with finish to start task. Learning Curve the duration of repetitive activities is shorter as the tasked are learned and applied. Demonstrate an understanding of the nature and types of cost drivers in a project. Cost drivers are the unit of an activity that controls the change in activities cost. Those activities for HR are Work, Duration and Effort. Materials and Equipment are driven by usage and sometimes overhead. Overhead may also be added to Management time and expense. Distinguish between fixed, variable and overhead costs in a project. Fixed costs are costs which do not change regardless of the usage. An example of a fixed cost is rent on a building or rent of a machine. Variable costs are costs which change based on usage. As an example, labor is a variable cost. The cost per hour of an individual’s time is fixed but your project is only billed for the time the employee is working on the project. Overhead costs are set by Company policy to cover expenses such as management time, facilities costs, sales and marketing and machine costs. Create a time-phased cost baseline. A cost baseline is a “time phased budget” that is used as the basis against which to measure, monitor and control overall cost performance on the project. 12 Final Review • What relationships are these examples? 13 – Finish-to-Start – i.e., Task A finishes before Task B can start; e.g., You need to prime the wall before you can paint it. – Start-to-Start - Task B starts when Task A starts; e.g., Taking Minutes will start as soon as the Meeting Starts. – Finish-to-Finish - – Task B finishes when Task A finishes; e.g., I can’t finish grading Midterms until every student in this class has finished taking the Midterm. But I can start before everyone takes the test; I just can’t be finished until after the last student finishes.– Start-to-Finish - Task A starts when Task B finishes; this is rarely used because we generally turn it around to FS and change the order of Task B and A; but here’s an example: an employee can’t transfer to new job until a replacement is found for her current job. Why not just move Task 1 first and then it could be a FS? Find a replacement and then transfer the employee – that’s the way most PMs schedule; but Start-to-Finish (SF) is available. The first example is a Finish-to-Finish relationship. The second example is a Startto-Start relationship. 13 Final Review 14 You may find that your tasks don’t follow exact FS (Finish-to-Start) or SS (Start-to-Start) or FF (Finish-to-Finish) relationships. You may want to make adjustments. You can modify dependencies with Lead & Lag time Let’s start with lag time – this is built in at the beginning of a project. PMs use this to give some buffer in the schedule to allow for tasks that are delayed; e.g., back to our pharmaceutical example. A drug company plans to test the drug by giving it to 12 subjects. The subjects will take the pills for 6 days. Each day the results of the drug will be analyzed. Then when the trial is over, as we see from this Gantt chart, the researchers will write the report of their findings. However, the PM and her team know that the side effects they’re looking for, don’t always show up right away, so they build in a little extra lag time by adding 3 days to the FS relationship. Here’s what it would look like. Notice the extra lag time and the fact that these activities now will take longer – by 3 days. Let’s take the same scenario but change the story. We still have the drug trial followed by the report. This time, though, the researchers haven’t noticed any side effects in previous trials so they aren’t concerned about adding any buffer time. Instead, they think this is a very promising drug and they want to get the news out to the medical community ASAP. So they decide that they could start writing the report about the initial results before the trials are completely finished. Instead of adding 3 days of lag, they subtract 3 days of lead time. This means that 3 days before they finish the trials, they’ll have enough info to start the report. Here’s what that would look like: Notice that the report will come out a lot sooner this way. Lead time is often added later in a project when the project has been delayed or needs to be finished earlier for any reason. Both examples display lead time the first showing a Finish-to-Finish relationship, the second one showing a Startto-Start relationship. 14 Final Review • True or False: You only need to schedule staff for a plan • True or False: All resources assigned to a project work 40 hours/week • True or False: All tasks must have 3 resources assigned to them • True or False: Changing Max Units from 100% to 200% for a resource means the resource is available 80 hours/week 15 1. False you must also schedule materials, facilities and equipment. 2. False the max unit for a 40 hour week is 100% a 20 hour per week employee would have a max unit of 50%. 3. False 4. False changing max units from 100% to 200% means you have 2 FT resources working on the task each working 40 hours for a total of 80 hours. 15 • Assuming that you have only 1 Resource available 40 hours/week, what is the best way to resource level the following task: – – – – Ask the resource to work 20 hours overtime Cut the work for the task by 20 hours Allow an additional 2.5 days for the task to be completed Cancel the task and start over 16 Allow an additional 2.5 days for the task to be completed assuming the task is not on the critical path. 16 • Assuming that both Task 1 and Task 2 must be completed within 5 days, what’s the best way to staff the work? – Hire 1 Full-time Resource and ask him/her to work 50 hours – Hire 1 Full-time Resource and 1 Part-time Resource and ask 1 to work 10 hours and 1 to work 40 hours – Hire 1 Full-time Resource and ask him/her to complete the work in 6.5 days – Hire 2 Full-time Resources and ask them to each work 40 hours 17 Hire 1 Full-time Resource and 1 Part-time Resource and ask 1 to work 10 hours and 1 to work 40 hours. Why because both tasks must be completed within 5 days. 17 Final Review • How can you fix the over allocation for Painters? 18 The first question you must ask yourself is if the task is on the critical path? The second question is if there is any free slack. If the task is not on the critical path you can extend the duration by 1 week. If the task is on the critical path, you may borrow resources from a similar task with free slack (latest start date, latest finish date). If there is no free slack you then use the technique called crashing and determine how you can shorten the duration for the least incremental cost. In the case of crashing you buy resources. 18 Final Review • Assuming Painters are paid $50/hour, how much will Painting tasks cost? • How would you resource level this work? 19 1. The painting task will cost $6,500. 2. The first question you must ask is “Is the task on the critical path?” If not, you extend the duration 2.5 days with painter 1 starting the shutters when they are done painting the house and painter 2 starting the porch when they are done painting the house. Painter 1 joins painter 2 on the porch when the shutters are done. 19 Final Review • When do you use this chart and what does it tell you? 20 This chart is the final budget baseline. The baseline is used to compare progress against actual costs. 20 Learning Objectives—Week 9 • Identify the processes, tools and techniques involved in project integration management • Identify and explain some of the tools and techniques a project manager can use to expedite a project • Explain the importance and describe the role of a project baseline • Analyze a project schedule and cost baseline for potential issues such as under and over allocation, schedule conflicts, and open-ended activities • Describe how to create a project management master plan • Explain the concept of baselining a project plan • Explain how to create and the importance of a RACI chart • Explain how to create and the importance of a probability and impact (P&I) matrix 21 Identify the processes, tools and techniques involved in project integration management. The integration Management Processes are: Develop Project Charter, Develop Project Management Plan, Direct and Manage Project Work, Manage Project Knowledge, Monitor and Control Project Work, Perform Integrated Change Control and Close Project. The tools and Techniques are Expert Judgement, Data Gathering, Interpersonal skills and Meetings. The Project Manager is responsible for this knowledge area and the responsibility can not be delegated. Identify and explain some of the tools and techniques a project manager can use to expedite a project. 1. First you would use the no cost techniques like utilizing free slack to allocated HR and equipment. 2. Crashing adding resources such as HR, equipment/speciality equipment at a cost. Determine the least cost method that will reduce the duration the most. 3. Fast-tracking, primarily used in the Construction industry, in this expediting technique the building phase begins before the design and plan are finished. 4. Additional HR, Overtime for the team and/or reduce the scope of the project. Explain the importance and describe the role of a project baseline. The project baseline is the approved version of the plan that can be changed only through the change control process and is used as the basis of comparison to actual results. Describe how to create a project management master plan. The plan includes: the scope management plan, schedule management plan, cost management plan, quality management plan, Human resource management plan, communication management plan, risk management plan, procurement management plan and stakeholder management plan. Explain the concept of baselining a project plan. Complete the scope baseline the schedule baseline and cost baseline. The project baseline serves as the standard of comparison against actual performance. Explain how to create and the importance of a RACI Plan. A RACI plan denotes Responsibility, Accountability, Consulted and Informed. Explain how to create and the importance of a probability and impact (P&I) matrix. A P&I Matrix is a risk matrix used to identify risks that have a high probability of happening and will have high impact on the project. 21 Final Review • Quality Management Plan – How is quality defined? – What goes into a Quality Management Plan? • Human Resource Management Plan – What goes into a Human Resource Management Plan? • Communications Management Plan – What goes into a Communications Management Plan? 22 Quality is the degree to which a set of inherent characteristics fulfills requirements. The Quality Management Plan defines the quality standards and explains how the project team will implement quality policies. Typical the plan will include standards, metrics and what’s needed to complete the project. The HR Management Plan includes: • Project Organizational Chart • Responsibility Assignment Matrix • Resource Histograms are bar charts showing the amount of time that a resource is scheduled to work over a series of time periods. An example of a resource histogram is located on Page 19 of last weeks Lecture. Communications Management Plan includes: • Stakeholder communications requirements • Information to be shared: format, content, level of detail • Who will receive it/Who will produce it • Guidelines for conveying information • Frequency of communications • Escalation Procedures for resolving issues • Revision procedures for updating communications plan • Glossary of terminology and abbreviations 22 Final Review • What is this chart and what is it used for? 23 The Project Org Chart lists: • The Sponsor • The Steering Committee- Senior Managers with Project Oversite responsibility • The Project Champion who is the person along with the PM who is responsible for getting the project over the finish line on-time, on-budget and on-scope. Signed off by the Stakeholders. • And the team leads along with their roles and responsibilities. The chart is used to define roles and responsibilities. 23 Final Review • What is a Risk? • What is an Issue? • What are the steps in Risk Management Planning? • When do you plan for Risks? 24 What is Risk? Risk is an uncertainty that can have either a negative or positive effect on meeting project objectives. Risk is also an event which may happen What is an Issue? An issue is an event which has happened already. What are the steps in Risk Management Planning? The Risk Management plan defines the procedures for managing risk throughout the life of a project. The documents include; methodology for risk management, roles & responsibility, budget and schedule estimates for risk-related activities, risk categories, probability & impact matrices, list register. The plan may also include contingency plans, fallback plans and contingency reserves. When do you plan for Risks? At the beginning during the planning phase and throughout the project as additional risks are identified. 24 Final Review • How do you make this chart? 25 How do you make this chart? This is a Probability & Impact Matrix. The probability of the risk occurring appears on the vertical axis and the impact of the risk occurs on the horizontal axis. Risk are plotted from low to high from left to right if the risk is negative. Positive risk are plotted from low to high from right to left. Negative risks with high probability and high impact and positive risks with high probability and high impact are managed aggressively. 25 Learning Objectives—Week 10 • Describe the Project Manager’s work during the executing process group or the execution phase of a project • Identify the processes, tools and techniques used to execute project work • Describe how a team differs from a group • Describe Tuckerman’s model for Team Development • Identify different Leadership Styles 26 Describe the Project Manager’s work during the executing process group or the execution phase of a project: The Project Manager is responsible, accountable and has the authority to deliver the Project on time, on budget and within scope. The PM manages the team as they work on Activities. They ensure Quality standards are met and planned processes are followed. They recruit, train and evaluate the team. They keep the stakeholders informed on the project, gather information on the project, distribute it and manage stakeholder expectations. The PM manages the bid process and deliverable acquired from outside resources. Identify the processes, tools and techniques used to execute project work: The process are direct and manage project work, manage project knowledge, manage quality, acquire resources, develop team, manage team, manage communications, implement risk responses, conduct procurement and manage stakeholder engagement. The tools and techniques uses are expert judgment, data gathering, interpersonal and team skills, meetings, manage the project plan, manage information and decision making. Describe how a team differs from a group: A team is a type of group, which is committed to a common goal and has expectations of each other’s performance toward the goal. Teams differ from groups because they are formal, have common goals and expect a result. Describe Tuckerman’s model for Team Development: Teams go through five stages of development, forming when the team meets and learns about the opportunities and challenges of their goal , storming the team works to gain each other’s trust, norming resolve disagreements through a spirit of cooperation, performing where the group focuses on achieving their common goal and adjourning when the task is completed and the team is broken up. Identify different leadership styles: Laissez-faire the leader is hands off and delegates decision making. Transactional where the leader relies on rewards and punishments to optimize performance. Servant where the leaders main goal is to serve, they share power and put the needs of the employee first. Transformational leadership the leader identifies the needed change, creates a vision of change through inspiration. Charismatic the leader uses their personality to inspire the team. And Interactional where the leader considers the work environment , values and situation as the driver of the leadership. 26 Final Review • What does the Project Manager do during Project Execution? • What should the Project Manager monitor during the project? • What metrics should the PM use and how does he know they are the right metrics? 27 What does the Project Manager do during Project Execution? The PM manages the project team in their daily work as they work on the Activities, assures that quality standards are met and planned processes are followed, recruits, trains and evaluates the team, works with functional managers, communicates and manages stakeholder expectations, gathers and distributes project metrics and manages the bid process if outside resources are required. What should the Project Manager monitor during the project? The main objective in project execution is to produce the Project Deliverables. The PM should check the plan, check the work and check the work packages. And, ask the following questions, did work on the deliverables start on time? Did the scheduled resource work on it? And is the deliverable done and cone correctly? What metrics should the PM use and how does he know they are the right metrics? The PM establishes upfront what metrics are required by senior management, the team and stakeholders. Metrics typically include: milestone reports, actual to baseline reports/variances, estimates to completion (cost and schedule). 27 Final Review • When do you need to submit a Change Request? • Who can submit a Change Request? • What information do you need on a Change Request? 28 When do you need to submit Change Requests? Anytime the work isn’t progressing as originally planned or if scope change, schedule change or cost change is proposed. Who can summit a Change Request? You, your team, stakeholders, the sponsor, the Steering Committee and/or regulatory body. What information do you need on a Change Request? What needs to be changed, what is the proposed change, what are the reasons for the proposed change, what are the impacts of the proposed change (scope, schedule, budget) and what are the alternatives to the proposed change. 28 Final Review • Give an example of each Conflict Management approach: – – – – – – Confrontation Compromise Smoothing Forcing Withdrawal Collaborating • How do you know which approach to use? 29 Give examples of each Conflict Management approach: Confrontation (avoiding) is a lose//lose strategy where neither party is cooperating with the other person to help them achieve their goals nor are they actively pursuing their own goals. An avoiding strategy might be applied when the issues is not that important to you or you deem the detrimental effects from the conflict outweigh the benefits of resolving the issue. Compromise—in this strategy, no one wins and no one loses. You take a middle ground where both parties can live with the solution but neither are particularly happy. Smoothing (accommodating) is a lose/win strategy. The focus is on resolving the issue from the other person’s point of view. It is appropriate to employ the accommodating strategy when you were wrong or the issue is much more important to the other person. Forcing (competing) is a win/lose strategy. The situation is viewed as though someone must lose for the other to win. This may be appropriate in situations when the decision must be made quickly. Withdrawal this strategy is defined as retreating from an actual or potential conflict situation, postponing the issue to be better prepared or to be resolved by others Collaborating (problem solving) is a win/win strategy where you focus on achieving your goals but with the recognition that the best solution is one that benefits both parties. This is the preferred strategy in most situations. Meredith, Mantel, Shafer, & Sutton (2017) Project Management in Practice (6rh edition. Wiley & Sons page 45 29 Learning Objectives—Week 11 • Explain the processes involved in monitoring and controlling project work • Explain the role of project change management during the executing process group • Track project variance and report on project status • Describe a typical project status report 30 Explain the processes involved in monitoring and controlling project work. Monitoring is collecting project performance data, producing performance measures and reporting and disseminating performance information. Controlling is comparing actual performance with planned performance, analyzing variances, assessing trends to effect process improvements, evaluating possible alternatives and recommending appropriate corrective action as needed. Explain the role of project change management during the executing process group. The process of change control is reviewing all change requests, approving changes and managing changes to deliverables, and the project management plan. Changes may be approved or denied based on an analysis of the impacts of change on the scope and cost of the change and an understanding of alternative changes that would accomplish the same end. Changes are approved on a formal change document by the steering committee and relevant stakeholders. Track project variance and report on project status. Data is collect and reported based on the scheduled frequency. Types of reporting include status versus the schedule and status versus the budget. Measures commonly analyzed are earned value which is the work performed versus the budget authorized to perform that work. Other measures include estimated cost to completion, estimated time to completion, cost performance index (CPI) which is the ratio of earned value to actual cost and schedule performance index (SPU) which is the ration of earned value to planned value. 30 Learning Objectives—Week 11 Continued • Define the monitoring and controlling process group • Identify the processes, tools and techniques involved in monitoring and controlling a project • Explain the importance of developing a controlling an monitoring system • Monitor and control project work • Estimate the completion date and cost of a project • Describe the process of designing a project control system • Create a status report 31 Define the monitoring and controlling process group: Monitoring and Control Project Work is the process of tracking, reviewing and reporting the overall progress to meet the performance objectives defined in the project management plan. Identify the processes, tools and techniques involved in monitoring and controlling a project: The process group includes: Monitor and Control Project Work, Perform Integrated Change Control, Validate Scope, Control Scope, Control Schedule, Control Costs, Control Quality, Control Resources, Monitor Communications, Monitor Risks, Control Procurement and Monitor Stakeholder Engagement. The tools and techniques used to monitor and control a project are expert judgment, data analysis (alternatives analysis, cost-benefit analysis, earned value analysis, root cause analysis, trend analysis and variance analysis), decision making and meetings. Explain the importance of developing a controlling and monitoring system: The key benefits of this process are that it allows stakeholders to understand the current state of the project, to recognize the actions taken to address any performance issues, and to have visibility into the future project status with cost and schedule forecasts. Describe the process of designing a project control system: Identify the special characteristics of scope, cost, and time that need to be controlled in order to achieve the project goals as stated in the project plan. The boundaries and performance characteristics for each level of detail in the project activities must be determined. Control must be managed at the work level Mechanisms to gather and store data must be designed. 31 Final Review • When would you use this diagram? 32 This diagram is known as for the Ishikawa or cause and effect diagram (also known as fishbone diagram). The purpose of the cause and effect diagram is to break down (in successive layers of detail) root-causes that potentially contribute to a particular effect. Root-cause analysis is intended to reveal key relations and the possible causes. The causes emerge by analysis such as brainstorming. Each potential cause is traced back to find the root-cause. The objective of root-cause analysis is to find a permanent solution to the issue. 32 Final Review • Is this project doing well? 33 The project is off to a difficult start. We are one day into the project and have the following results: 1.31 days over schedule, 33 hours over schedule and $1,650 over budget. Budgeted days was 24.94d Budgeted cost was $11,400 Scheduled hours was 228h Earned Value (hours) is 1.14 Earned Value (cost) is 1.14 CPI is .95 SPI is .87 ETC is $125,499 ESC is 2729.15h 33 Leaning Objectives • Describe the Project Manager’s work during the project closing process group • Explain the importance of capturing lessons learned throughout a project life cycle • Explain how to conduct lessons learned for a project • Describe the benefits of the closing process group • Define project evaluation • Identify evaluation criteria/metrics for project performance evaluation • Describe the project audit process • Differentiate between various types of project closure 34 Describe the Project Manager’s work during the project closing process group: The work consists of evaluating the project which is delivering the final product, service or result to the customer, evaluating how the project worked and close out contracts with vendors. The other phase is the actual closing. Explain the importance of capturing lessons learned throughout a project life cycle: Lessons learned are an iterative process, you collect them as you go so that you ensure continuous improvement of processes and determine solutions that will ensure the success of the existing project and future projects. Explain how to conduct lesson learned for a project: Lessons learned should be focused on the positive results of continuous improvement. The questions that should be asked are What has the project produced, created or achieved, What has the project not produced that was expected, What worked well and What did not work well. Describe the benefits of the closing process group: The key benefits are that phases, projects and contracts are closed out appropriately and organizational processes are reviewed and improved. Define project evaluation: Evaluation appraises the progress and performance relative to the project’s initial or revised plan. Identify evaluation criteria/metrics for project performance evaluation: The criteria are efficiency, customer impact/satisfaction, business direct success, future potential, contribution to the organization’s goals and objectives and contribution to the teams objectives. Describe the project audit process: Familiarize the audit team with the requirements of the project, audit the project on–site, write up the audit report and distribute the audit report. Differentiate between various types of project closure: The types of project closure are closure by extinction, closure by addition, closure by integration and closure by starvation. 34 Final Review • What do you need to do to closeout your project? 35 There are two parts to closing out a project evaluation and closing. Evaluation consists of: • Evaluate the project success criteria • Deliver the final project, service or result to the customer • Evaluate how the project worked • Close out contracts with vendors Close out consists of: • Ensure completion of the work. • Notify the client of the project completion and obtain the client’s acceptance and acknowledgement of the project. • Clear all accounts and document final billing and invoicing. • Redistribute personnel, materials, equipment and project resources. • Clear the project with legal. • Determine what records to keep and deliver them to the project book. • Determine any product support requirement and ensure that support is delivered. • Oversee the closing of the project’s books. 35 Introduction to Earned Value Management Dr. Joseph Griffin, PMP® 2 Overview • Background of Earned Value • Purpose of Earned Value • Overview of Earned Value • Limitations of Earned Value Background • Basic concepts conceived in industrial context • More fully developed during 1950s – 1960s • Emerged as a tool to: – Track costs – Report progress • “What did we get for the costs we incurred?” Purpose • Example Construction Project: • Project details: – Total Budget: $200,000 – Baseline Schedule: 5 months – Assume costs equally spread over 5 months at $40,000 per month Purpose • Current Status – End of month 2 – Actual Cost to date: $100,000 Purpose • What does this mean? • Ahead of schedule? • Over budget? • Under budget? • Behind schedule? Overview of Terminology • BAC – Budget at Completion • SPI – Schedule • AC – Actual Cost • CPI – Cost Performance • EV – Earned Value • PV – Planned Value • CV – Cost Variance • SV – Schedule Variance Performance Index Index • ETC – Est. to Completion • EAC – Est. at Completion How to Determine Earned Value? • Imagine a simple project with four phases Deliverable Budgeted Amount Earned Value Phase 1 $100 $100 Phase 2 $100 $200 Phase 3 $50 $250 $500 Phase 4 $250 • When deliverables or tasks are partially complete, you estimate a percentage Earned Value Numbers Title Value Actual Cost $100,000 Planned Value $80,000 Earned Value $90,000 10 Earned Value Analysis • Variances: – Cost Variance (CV) = EV – AC (-$10,000) – Schedule Variance (SV) = EV – PV ($10,000) • Indexes: – Cost Performance Index (CPI) = EV / AC (.90) – Schedule Performance Index (SPI) = EV / PV (1.125) 11 Earned Value Forecasting • BAC = $200,000 • EAC = BAC / CPI = $222,222 • ETC = EAC – AC = $122,222 • VAC = BAC – EAC = -$22,222 12 Illustration • Results: – Over budget – Ahead of schedule Title Value Title Value BAC $200,000 Schedule Variance $10,000 Actual Cost $100,000 Cost Perf. Index .90 Planned Value $80,000 Sched. Perf. Index 1.125 Earned Value $90,000 Est. to Completion $122,222 Cost Variance -$10,000 Est. at Completion $222,222 Summary • It is a project performance & measurement tool – Gain insight into past project performance – Understand the current project position – Forecast the future performance & outcomes • Accomplished through revealing the relationship between actual cost, planned value, & earned value Limitations • Understanding limitations creates realistic expectations • Doesn’t tell you how to correct variances • Data can be manipulated • Relies on accurate data • Quality is not directly considered as part of metrics Reporting Best practices • Do – Summarize the data (use chart, table, etc.) – Explain terms (SPI, CPI, etc) in understandable language – Explain why you are where you are – Explain what next steps are • Don’t – Show calculations in body of report (put in an appendix) 16 Project Closure Dr. Joseph A. Griffin, PMP® 2 Overview of Lecture • Aspects of the closing phase • Closing an unsuccessful project 3 Aspects of the Closing Phase • Client / Sponsor processes • Deliverables processes • Stakeholder processes • Project plan / file processes • Project Team processes 4 Project Closure – Client / Sponsor • Deliverables review • Final acceptance • Sign off on accepting project as complete & deliverables as acceptable • Project Feedback 5 Project Closure – Deliverables • Final inspections / review • Hand off or exchange process • Document acceptance 6 Project Closure – Stakeholders • Contract closeout • Accounts payable • Performance reviews • Waivers • Close procurements 7 Project Closure – Project Plan / File • Final updates to project file • Document lesson learned • Create project summary • Archive file 8 Project Closure – Project Team • Team evaluations • Re-assignments • Team lessons learned 9 Closing an Unsuccessful Project • What makes a project unsuccessful? • Internal Projects – Work through issues with sponsor • External Projects – Consult with company’s attorney – Communicate carefully – Cancel all work 10
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