Project Management Fundamentals

PMI (Project Management Institute)
Managing Projects in Different Environments:
WWPMM CRM IPD PMBok
1. Define Solution Design Concept Initiatling
2. Planning Solution Design Plan Planning
3. Execute Solution Delivery Develop, Quality, Launch Executing Controlling
4. Close Solution Delivery Life Cycle Close Closing
DPEC CPDL IPEC
WWPMM – processes are referred to as process groups.
WWPMM (World Wide Project Management Model)
IPD (Integrated Product Development)
CRM (Customer Relationship Management)
PMBOK (Project Management Body of Knowlege)
Relationships – WWPMM = IPD + CRM
IPD = IPMT (Integrated Portfolio Management Team) – must sign DCP (Decision Checkpoint)
contract which is specific entry and exit criteria that used for measure of progress of a project. Funding is approve phase-by-phase based on number of considerations.
CRM = opportunity owner and external customer
PMBOK = enforce disiplined approach to project management to help success on project.
Sponsor (Internal – Project Management Team or external – commisioning body)
– Formailzation of agreement
– Approval to proceed with start of project
– Acceptance of deliverables
– Cost spent
Behaviors of successful PM’s (TCPL)
1. Team Building
2. Communication
3. Project goal setting
4. Leadership
2 Types of contracts;
1. Time and material (Top down structure)
2. Fixed price (Bottom up structure)
PM single point of contact for all matter relating to project:
1. scope
2. cost
3. schedule
Project Charter
Purpose of PC documentation
1. Reason for undertaking the project
2. objectives and constraints of project.
3. Direction concering the solution
4. Identities of main stakeholders.
First piece of documentation produced for a project – makes the project “official” written by sponsor
Document that formalizes the request from sponsor for responding to business need.
Serves as a reference of authority for future of project.
Provides PM authority to apply organizational resources to project activity
IPD – Project Charter issued by IPMT (Integrated Portfolio Management Team which is the product sponsor)
CRM – Project Definition Report written by sponsor
Project Charter important tool for establising the authority assigned to PM especially in matrix environment.
Project Definition – written by Project Manager
work product that helps PM determine boundaries of the project – what it will encompass and what not.
defines the shape of the project.
Good for defining prelimary project baseline.
PD document includes:
1. objectives and scope
2. stakeholders and propose organization
3. responsiblities
4. major risks associated with the project.
Purpose of PC:
1. Formalize and understanding of PC by delivery org.
2. Provide plan elements in order to control planning and def activities.
3. Give initial description of project framework.
4. Gather fundamental characteristics of project in unique doc.
SOW -> Project Chart -> Corresponce -> Process -> Process Definition.
Project Definition contains the objective and the plan for defining activities.
Benefits of Project Charter.
1. Describes the problem to be solved.
2. Provide vision of how the business need will be resolved.
3. Describes the elements of the solution expected by the sponsor from delivery org
4. Identifies main stakeholders
Impact of not having a Project Charter
1. unclear needs
2. unstable direction to project.
3. possible ambiguity about project objective and scope.
4. ambiguity concerning solution
5. lack of identifying an important stakeholder for the project.
Benefits of Project Definition.
Enables Project Manager to identify project requirements from broader perspective, instead of focusing solely on deliverables. This ensures clarity of scope before detailed planning begins.
What is a team:
Group of individuals working towards a common goal.
PM ensures team members recognize skills and way in which team members depend on each other.
Organization Types
PM needs to understand the challenges involved in managing project within various org structures.
3 type of org sturctures:
1. Functional – group hierachically by specialty also know as conventional line organization : report to functional managers
2. Projectized – PM has full authority to assign priorities and direct work of individuals assigned to projects : report to PM. This structure is more expensive and less efficent to operate.
3. matrix – blend op functional and prioritized structure. PM shares responsibilities with Functional Managers. Problem mixed localty to Functional manager and PM as well as communication flow.
Team charter:
Team charter moves the team through the following stages:
1. forming
2. storming
3. norming
4. performing
Team Charter contains:
1. broad performance objectives
2. Roles
3. Responsibilities
4. Ground rules for the team
5. Expectation for the tream.
Team Charter devided into: (R2UT)
1. Team performance objectives
2. Rules of behavior
3. Rules of engagement
4. Useful information
Building a Team
1. Identify project skills.
2. Validate team skills
Organize team
PM commits team members to values
Team meeting opp for team building and team dev
Preparing OBS and distribute copy of structure to team members.
Ensure open communication
Document communication management plan to be email, discussion or bulletin board.
Maintain Team
Means of maintaining the team:
1. Motivating the team
2. Recognize and reward team behavior
3. Respond to team changes.
Select -> Organize -> Communicate -> Maintain -> Motivate -> Recognize Reward -> Respond to change
Communication Management:
Developing a Communication Management Plan – Meeting Matrix (periodic meetings)
1. What is being communicated (Purpose)
2. how it is communicated (Media)
3. who is communicating (Author or owner)
4. to whom is being communicated (Attendees)
5. how often must this happen (Frequency)
The policies of the delivery organization define the format and procedure for status meetings and project reports.
Seven Keys to Success
Project success is directly tied to involvement of business executives and the speed decisions and actions are made.
seven Keys to success is a framework for assessing and communicating project health.
How the Seven Keys to Success are used?
1. Common language for communicating project health.
2. Set consistent Steering Group agendas
3. Balance and prioritze corrective action
4. Structure and approach for Quality and Risk Review.
5. Identify and highlight underlying root causes of unhealthy project situations.
6. As a checklist for decision making
7. Effective throughout the Project Life Cycle.
7 Keys to success: (S2WTBRD)
– Team high performing:
Tree Colors:
1. Red – urgent
2. Yellow – warning
3. Green – okey to procees
The colors indicate the severity of the problem and how quickly corrective action is needed.
Defining the Technical Environment
The technical environment is the collection of physical space, hardware, software, netware and equipment that is shared by the project team and used to support or a subproject.
Technical environment includes:
1. Needs analysis
2. Survey the Project (part or all provided by sponsor)
3. Manage the project (perform a needs analysis- Project Schedule, Time, Risk, PCB, Business system.
Identify and Validate Requirements
1. Gather requirements – interview session
2. Categorize requirements – Organize and document findings by creating categories for project requirments.
3. Validate requirements – report the finding to the customer
Gather -> Categorize -> Validate
Use validate requirements as the established requirements baseline in the project.
Needs – Needs are activities, services products and deliverables that are useful, required or desired.Turn needs either into requirements or exclusions.
Needs : remeber what the sponsor told u. The sponsor must agree with your plans, so involving the sponsor early in the requirements-gathering process will save you time and headaches later.
Requirements Baseline is the requirements document that has been approved by the sponsor, stakeholders and key members of the project team.
Requirements Baseline defines what the sponsor wants and what the project team has agreed to deliver.
Requirements Baseline will not change unless it is approved by sponsor and goes through the correct Change Management process.Changes to the Baseline could effect the cost and schedule of the project.
Common Pitfalls of Requirements Gathering:
1. Unclear requirements
2. Premature solutions
3. Lack of clarity about who the sponsor is
4. Biases
What does it mean to decompose a project?
Subdividing of major project deliverables into smaller, more manageable components. You identify top-level elements of the project and divide the elements into manageable pieces for scheduling and tracking.
Type of Breakdown Structures
1. OBS (Organizational Breakdown Structure) – WHo
2. PBS (Product Breakdown Structure) – What
Benefits:
1. Identify work products and designate which work products are deliverables.
2. Identify reausable work product and components
3. Identify local relatioships
4. Create the WBS
5. Clarify info needed to formulate estimates
3. WBS (Work Breakdown Structure) – How (Activities the project must complete)
WBS generated after team understand the work products to be developed.
Development begins when deliverables are identified and agreed to by sponsor.
Levels of WBS
1. Activity – element of work at a particular level. Each activity results in a work product, when delivered to sponsor they are refered to as deliverables.
2. Common elements – work patterns
3. Lowest Level : work package is a group of work items assigned to a single person or small group to be done over a short period of time.
WBS Dictionary – a repository for descriptions of work elements and other key information such as budgets, basis of estimate and staffing.
Detailed background information about each work element.
OBS – shows how the project is organized by displaying the name of staffing resources for a project.
Risk Management
1. Identify Risks
2. Analyze Risks
3. Create a Risk Response Plan
4. Track and control Riks
5. React to the Riks
Ensure Risk Mitigation by ensuring the event does not happen. Risk response is what you do when the risk do happen. Risk Management plan is the whole respone process.
Risk management provides an environment for proactive decision making.
1. Planning
2. Tracking
3. Reacting to risk
Risk management includes:
1. Continuously assising riks
2. Determining which risks are important enough to address
3. Defining and implementing strategies and plans to address risks
Risk factor is a situational factor that has been identified as leading to a risk.
Risk Analysis include:
1. Evaluation
2. Prioritizing
Qualitative analysis to estimate probability, assign low, medium, or high category
Quantitative analysis uses numeric scale, usually from 0 to 1, to measure the probability of an event occuring, where 0 means it will not happen at all and 1 it will occur.
Prioritizing Risks
1. Rank evaluated risks from high to low
2. Use quantitative ranking when possible, else qualitive
3. Seperately rank risks with similar ratings
4. Prioritize risks as a team
Risk Response Options
1. Transfer Risk
2. Insurancee
3. Contingency
4. Mitigate
Completing a Risk Management Plan
1. Rank
2. RIN
3. Source of Risk
4. Risk Event
5. Response Strategies
Requirements
Schedule Cost
3 factors that characterize project risk:
1. Risk event
2. Risk probability
3. Impact
Project Estimate
What is an Estimate?
Estimate is an assessment of the likely quantitive result based on experience or historical data from pervious projects.
Key terms part of estimate:
Effort: number of labor units required to complete a task
Duration: number of work periods excluding holidays or other nonworking periods
Levels of effor: activities support projects but are not specifically put into the schedule.
Cost and schedule can be tracked back to poorly developed estimates.
Prepare a new estimate or validate an existing estimate when taken over by new PM.
Establish Estimating Objectives -> Determine Project Details -> Select Appropriate Model -> Develop Estimating Strategy and Plan -> Prepare Estimate -> Include Risk -> Validate and Finalize Estimate -> Baseline Estimate -> Use Estimate in Project Plan.
Staff effort – expressed in person hours
Elapsed time – total number of days over which the task occurs
Working time – working hours
Availability – time a staff person is available and willing to work
Productivity – relative measure of work in time unit
Duration – based on utilization rate
Cost – calculated based on assumed labor rate resulting in cost estimate
Differnce between effort and duration: is that effor relates to the number of labor units required to complete a project activity, whereas duration relates to the number of work periods required to complete it.
Utilization – amount of time a full-time equivalent can be used on a project.
Utilization Factor – describes the amount of time a full-time equivalent can be used for a length of the project.
Duration = (Effort/Productivity)/Availability
The shorter a project the higer the utilization level.
Models for Estimating
1. Top Down – compares historical data with experience
2. Bottoms-up – receiving estimates from all estimators and then summarizing them into a cost estimate for the project.
3. Parametric – measure effor of a task
4. Analogy or comparison – comparison of similar projects.
5. Expert judgment – information provided by a group or a person with specialized knowledge and training.
Types of costs
1. Direct Costs: incurred for the benefits of a specific project
2. Indirect Costs: are incurred for the joint benefit of multiple projects and are applied through an allocation process.
3. Fixed costs: occur regardless of the complexity of the project.
4. Variable costs: vary in relationship to related activities within the project.
5. Brand costs: expenditures made to manufacture, distribute, and support product or offer.
Estimating assumptions:
1. Resources
2. WBS
3. Methods
4. Approaches
5. Contingency
6. Project Strategy
Project Schedules
Task – subdivision or portion of an activity, lowest level of WBS
Activity – an element of work performed over a period of time within the project
Event – starting and ending point of activity
Milestone – achievement or significant event in the project or subproject, such a major decision or completion of an important activity.
Precedence relationship – dependency between two activites or project activities and milestones.
Precedence diagramming method (PDM) is meaning of constructing a project network diagram using nodes to represent activities and connecyting them with arrows to show the dependencies. Also know as activity-on-node (AON).
Project network diagram – schematic display of the dependencies among project activities.
PDM Network Relationships
Finish-to-start (FS)
Finish-to-finish (FF)
Start-to-start (SS)
Lag Time – delay (FS+1)
Lead Time – acceleration (FS-1)
Forward Pass – used to calculate the ES and EF date of all network activities.
Backward Pass- used to calculate the LS and LF dates of all network activities
2 types of Float
1. Free float: Determines the pressure that one activity puts on the next activity.
2. Slack: the amount of time a single activity can be delayed without delaying the ES of any subsequent activities.
Critical Path – longest path in the network.
Types of Schedules
1. Project Management Schedule : planned start and finished date for, and the dependencies between all work units for which the project organizational unit is responsible.
2. Operational Schedule : work products broken into work items
Change Management:
1. Identify change
2. Investigate change
3. Implement change
Change request – define as a request to change some document or aspect of the project that has been placed under change control.
Types of change:
1. Technical
2. Contractual
What is a baseline?
1. Baseline is the reference data on which execution of project activities are planned and controlled.
Formal baseline has a stakeholder, an approval, and sign-off
Change Management Process Illustrated
1. Identify the change
2. Clarify the scope
3. Estimate the complexity and cost of investigating.
4. Approval or rejection
Follow up actions for change requests.
1. Accept and considered to be in-scope
2. Accept and considered to be out-of-scope
3. Rejected
4. Deferred
The change management procedure includes which of the following?
A change log,
A change management process
A Change Control Board
Project control – aspect of project management defined as the process required to define and execute appropriate actions to ensure success of the project.
4 Steps of Project Control:
1. Establish Standards.
2. Observe Performance
3. Compare Planned with Actual Performance
4. Take Corrective Action
PCB (Project Control Book) is a collection of project documentation that establishes the framework for controlling the project. Helps keep project documentation up-to-date.
The PCB is used as a basis for reviews and audits, as an information repository for team members, and as a tool for other project managers.  It is important that you have all the latest information and status in your PCB.
Contents of the Project Control Book
Procedures
Plans
Records
1. What is the purpose of project control?
To predict what might happen if current conditions continue
A metric is a tool for measuring the progress of a project.
Earned value is one of the methods for gathering such information and monitoring a project’s performance.
The Earned Value (EV) is the amount of work actually accomplished, stated in terms of the budget assigned to accomplish that specific scope of work.
The Planned Value (PV) refers to the costs that should have been incurred for the work that should have been completed to date.
The Actual Cost (AC) is the total cost incurred for the work accomplished during a given period of time.
Budget at Completion (BAC) is the estimated total cost of the project at completion, or what the project should cost if your planning is accurate.
Estimate to Complete (ETC) is the projected cost to complete the project from a specified point in time.
Estimate at Completion (EAC) answers the question, “What will it cost when it is finished?”  Calculating the EAC requires two data points: the AC and the ETC.
Place the four stages of project control in the correct order
B.  Establish standards
C.  Observe performance
A.  Compare planned performance with actual performance
D.  Take corrective action
7. What is the Actual Cost (AC)?
The total cost incurred for the work accomplished during a given period of time
Different Types of PM Reviews
1. Contract readiness review
2. Periodic review
3. Completion review
4. Special review
5. Compliance review
6. Deliverable review
Business reviews
1. Business reviews
2. Project management reviews
3. Technical reviews
1. Which tool is used for identifying risks and generating containment plans?
GS Risk
2. Which tool creates standardized documents and letters?
DocumentFactory (DF)
3. Which Lotus Notes tool generates Work Breakdown Structures (WBS) and schedules based upon the IBM Global Services Method?
Engagement Support Environment (ESE)
4. Which Lotus Notes-based tool is used for storing, accessing, linking and managing project management work products?
Project Control Book (PCB)
5. Which tool is IBM’s strategic tool for enabling enterprise project management?
IBM Rational Portfolio Manager

PMI (Project Management Institute)
Managing Projects in Different Environments:
WWPMM CRM IPD PMBok1. Define Solution Design Concept Initiatling2. Planning Solution Design Plan Planning3. Execute Solution Delivery Develop, Quality, Launch Executing Controlling4. Close Solution Delivery Life Cycle Close ClosingDPEC CPDL IPEC
WWPMM – processes are referred to as process groups.

WWPMM (World Wide Project Management Model)IPD (Integrated Product Development)CRM (Customer Relationship Management)PMBOK (Project Management Body of Knowlege)
Relationships – WWPMM = IPD + CRM IPD = IPMT (Integrated Portfolio Management Team) – must sign DCP (Decision Checkpoint) contract which is specific entry and exit criteria that used for measure of progress of a project. Funding is approve phase-by-phase based on number of considerations.  CRM = opportunity owner and external customer PMBOK = enforce disiplined approach to project management to help success on project.
Sponsor (Internal – Project Management Team or external – commisioning body) – Formailzation of agreement – Approval to proceed with start of project – Acceptance of deliverables – Cost spent
Behaviors of successful PM’s (TCPL)1. Team Building2. Communication3. Project goal setting4. Leadership
2 Types of contracts;1. Time and material (Top down structure)2. Fixed price (Bottom up structure)
PM single point of contact for all matter relating to project:1. scope2. cost3. schedule
Project CharterPurpose of PC documentation1. Reason for undertaking the project2. objectives and constraints of project.3. Direction concering the solution4. Identities of main stakeholders.
First piece of documentation produced for a project – makes the project “official” written by sponsorDocument that formalizes the request from sponsor for responding to business need.Serves as a reference of authority for future of project.Provides PM authority to apply organizational resources to project activityIPD – Project Charter issued by IPMT (Integrated Portfolio Management Team which is the product sponsor)CRM – Project Definition Report written by sponsorProject Charter important tool for establising the authority assigned to PM especially in matrix environment.
Project Definition – written by Project Managerwork product that helps PM determine boundaries of the project – what it will encompass and what not.defines the shape of the project.Good for defining prelimary project baseline.
PD document includes:1. objectives and scope2. stakeholders and propose organization3. responsiblities4. major risks associated with the project.
Purpose of PC:1. Formalize and understanding of PC by delivery org.2. Provide plan elements in order to control planning and def activities.3. Give initial description of project framework.4. Gather fundamental characteristics of project in unique doc.
SOW -> Project Chart -> Corresponce -> Process -> Process Definition.
Project Definition contains the objective and the plan for defining activities.
Benefits of Project Charter.1. Describes the problem to be solved.2. Provide vision of how the business need will be resolved.3. Describes the elements of the solution expected by the sponsor from delivery org4. Identifies main stakeholders
Impact of not having a Project Charter1. unclear needs2. unstable direction to project.3. possible ambiguity about project objective and scope.4. ambiguity concerning solution5. lack of identifying an important stakeholder for the project.
Benefits of Project Definition.Enables Project Manager to identify project requirements from broader perspective, instead of focusing solely on deliverables. This ensures clarity of scope before detailed planning begins.
What is a team:Group of individuals working towards a common goal.PM ensures team members recognize skills and way in which team members depend on each other.
Organization TypesPM needs to understand the challenges involved in managing project within various org structures.
3 type of org sturctures:1. Functional – group hierachically by specialty also know as conventional line organization : report to functional managers2. Projectized – PM has full authority to assign priorities and direct work of individuals assigned to projects : report to PM. This structure is more expensive and less efficent to operate.3. matrix – blend op functional and prioritized structure. PM shares responsibilities with Functional Managers. Problem mixed localty to Functional manager and PM as well as communication flow.
Team charter:
Team charter moves the team through the following stages:1. forming2. storming3. norming4. performing
Team Charter contains:1. broad performance objectives2. Roles3. Responsibilities4. Ground rules for the team5. Expectation for the tream.
Team Charter devided into: (R2UT)1. Team performance objectives2. Rules of behavior3. Rules of engagement4. Useful information
Building a Team1. Identify project skills.2. Validate team skills
Organize teamPM commits team members to valuesTeam meeting opp for team building and team devPreparing OBS and distribute copy of structure to team members.
Ensure open communicationDocument communication management plan to be email, discussion or bulletin board.
Maintain TeamMeans of maintaining the team:1. Motivating the team2. Recognize and reward team behavior3. Respond to team changes.
Select -> Organize -> Communicate -> Maintain -> Motivate -> Recognize Reward -> Respond to change
Communication Management:Developing a Communication Management Plan – Meeting Matrix (periodic meetings)1. What is being communicated (Purpose)2. how it is communicated (Media)3. who is communicating (Author or owner)4. to whom is being communicated (Attendees)5. how often must this happen (Frequency)
The policies of the delivery organization define the format and procedure for status meetings and project reports.

Seven Keys to SuccessProject success is directly tied to involvement of business executives and the speed decisions and actions are made.seven Keys to success is a framework for assessing and communicating project health.
How the Seven Keys to Success are used?1. Common language for communicating project health.2. Set consistent Steering Group agendas3. Balance and prioritze corrective action4. Structure and approach for Quality and Risk Review.5. Identify and highlight underlying root causes of unhealthy project situations.6. As a checklist for decision making7. Effective throughout the Project Life Cycle.
7 Keys to success: (S2WTBRD)- Team high performing:
Tree Colors:1. Red – urgent2. Yellow – warning3. Green – okey to procees
The colors indicate the severity of the problem and how quickly corrective action is needed.
Defining the Technical EnvironmentThe technical environment is the collection of physical space, hardware, software, netware and equipment that is shared by the project team and used to support or a subproject.Technical environment includes:1. Needs analysis2. Survey the Project (part or all provided by sponsor)3. Manage the project (perform a needs analysis- Project Schedule, Time, Risk, PCB, Business system.
Identify and Validate Requirements1. Gather requirements – interview session2. Categorize requirements – Organize and document findings by creating categories for project requirments.3. Validate requirements – report the finding to the customer
Gather -> Categorize -> Validate
Use validate requirements as the established requirements baseline in the project.
Needs – Needs are activities, services products and deliverables that are useful, required or desired.Turn needs either into requirements or exclusions.

Needs : remeber what the sponsor told u. The sponsor must agree with your plans, so involving the sponsor early in the requirements-gathering process will save you time and headaches later.
Requirements Baseline is the requirements document that has been approved by the sponsor, stakeholders and key members of the project team.Requirements Baseline defines what the sponsor wants and what the project team has agreed to deliver.Requirements Baseline will not change unless it is approved by sponsor and goes through the correct Change Management process.Changes to the Baseline could effect the cost and schedule of the project.

Common Pitfalls of Requirements Gathering:
1. Unclear requirements2. Premature solutions3. Lack of clarity about who the sponsor is4. Biases
What does it mean to decompose a project?Subdividing of major project deliverables into smaller, more manageable components. You identify top-level elements of the project and divide the elements into manageable pieces for scheduling and tracking.
Type of Breakdown Structures1. OBS (Organizational Breakdown Structure) – WHo2. PBS (Product Breakdown Structure) – What Benefits: 1. Identify work products and designate which work products are deliverables. 2. Identify reausable work product and components 3. Identify local relatioships 4. Create the WBS 5. Clarify info needed to formulate estimates3. WBS (Work Breakdown Structure) – How (Activities the project must complete)WBS generated after team understand the work products to be developed.Development begins when deliverables are identified and agreed to by sponsor.
Levels of WBS1. Activity – element of work at a particular level. Each activity results in a work product, when delivered to sponsor they are refered to as deliverables.2. Common elements – work patterns3. Lowest Level : work package is a group of work items assigned to a single person or small group to be done over a short period of time.
WBS Dictionary – a repository for descriptions of work elements and other key information such as budgets, basis of estimate and staffing.Detailed background information about each work element.
OBS – shows how the project is organized by displaying the name of staffing resources for a project.
Risk Management1. Identify Risks2. Analyze Risks3. Create a Risk Response Plan4. Track and control Riks5. React to the Riks
Ensure Risk Mitigation by ensuring the event does not happen. Risk response is what you do when the risk do happen. Risk Management plan is the whole respone process.
Risk management provides an environment for proactive decision making.1. Planning2. Tracking3. Reacting to risk
Risk management includes:1. Continuously assising riks2. Determining which risks are important enough to address3. Defining and implementing strategies and plans to address risks
Risk factor is a situational factor that has been identified as leading to a risk.
Risk Analysis include:1. Evaluation2. Prioritizing
Qualitative analysis to estimate probability, assign low, medium, or high categoryQuantitative analysis uses numeric scale, usually from 0 to 1, to measure the probability of an event occuring, where 0 means it will not happen at all and 1 it will occur.Prioritizing Risks1. Rank evaluated risks from high to low2. Use quantitative ranking when possible, else qualitive3. Seperately rank risks with similar ratings4. Prioritize risks as a team

Risk Response Options1. Transfer Risk2. Insurancee3. Contingency4. Mitigate
Completing a Risk Management Plan1. Rank2. RIN3. Source of Risk4. Risk Event5. Response Strategies
Requirements

Schedule Cost

3 factors that characterize project risk: 1. Risk event 2. Risk probability 3. Impact
Project EstimateWhat is an Estimate?Estimate is an assessment of the likely quantitive result based on experience or historical data from pervious projects.
Key terms part of estimate:Effort: number of labor units required to complete a taskDuration: number of work periods excluding holidays or other nonworking periodsLevels of effor: activities support projects but are not specifically put into the schedule.
Cost and schedule can be tracked back to poorly developed estimates.
Prepare a new estimate or validate an existing estimate when taken over by new PM.
Establish Estimating Objectives -> Determine Project Details -> Select Appropriate Model -> Develop Estimating Strategy and Plan -> Prepare Estimate -> Include Risk -> Validate and Finalize Estimate -> Baseline Estimate -> Use Estimate in Project Plan.
Staff effort – expressed in person hoursElapsed time – total number of days over which the task occursWorking time – working hoursAvailability – time a staff person is available and willing to workProductivity – relative measure of work in time unitDuration – based on utilization rateCost – calculated based on assumed labor rate resulting in cost estimate
Differnce between effort and duration: is that effor relates to the number of labor units required to complete a project activity, whereas duration relates to the number of work periods required to complete it.
Utilization – amount of time a full-time equivalent can be used on a project.Utilization Factor – describes the amount of time a full-time equivalent can be used for a length of the project.
Duration = (Effort/Productivity)/Availability
The shorter a project the higer the utilization level.
Models for Estimating1. Top Down – compares historical data with experience2. Bottoms-up – receiving estimates from all estimators and then summarizing them into a cost estimate for the project.3. Parametric – measure effor of a task4. Analogy or comparison – comparison of similar projects.5. Expert judgment – information provided by a group or a person with specialized knowledge and training.
Types of costs1. Direct Costs: incurred for the benefits of a specific project2. Indirect Costs: are incurred for the joint benefit of multiple projects and are applied through an allocation process.3. Fixed costs: occur regardless of the complexity of the project.4. Variable costs: vary in relationship to related activities within the project. 5. Brand costs: expenditures made to manufacture, distribute, and support product or offer.
Estimating assumptions:1. Resources2. WBS3. Methods4. Approaches5. Contingency6. Project Strategy
Project SchedulesTask – subdivision or portion of an activity, lowest level of WBSActivity – an element of work performed over a period of time within the projectEvent – starting and ending point of activityMilestone – achievement or significant event in the project or subproject, such a major decision or completion of an important activity.Precedence relationship – dependency between two activites or project activities and milestones.Precedence diagramming method (PDM) is meaning of constructing a project network diagram using nodes to represent activities and connecyting them with arrows to show the dependencies. Also know as activity-on-node (AON).Project network diagram – schematic display of the dependencies among project activities.
PDM Network RelationshipsFinish-to-start (FS)Finish-to-finish (FF)Start-to-start (SS)
Lag Time – delay (FS+1)Lead Time – acceleration (FS-1)
Forward Pass – used to calculate the ES and EF date of all network activities.Backward Pass- used to calculate the LS and LF dates of all network activities
2 types of Float1. Free float: Determines the pressure that one activity puts on the next activity.2. Slack: the amount of time a single activity can be delayed without delaying the ES of any subsequent activities.
Critical Path – longest path in the network.
Types of Schedules1. Project Management Schedule : planned start and finished date for, and the dependencies between all work units for which the project organizational unit is responsible.2. Operational Schedule : work products broken into work items
Change Management:1. Identify change2. Investigate change3. Implement change
Change request – define as a request to change some document or aspect of the project that has been placed under change control.
Types of change:1. Technical2. Contractual
What is a baseline?1. Baseline is the reference data on which execution of project activities are planned and controlled.
Formal baseline has a stakeholder, an approval, and sign-off
Change Management Process Illustrated1. Identify the change2. Clarify the scope3. Estimate the complexity and cost of investigating.4. Approval or rejection
Follow up actions for change requests.1. Accept and considered to be in-scope2. Accept and considered to be out-of-scope3. Rejected4. Deferred
The change management procedure includes which of the following? A change log,A change management processA Change Control Board
Project control – aspect of project management defined as the process required to define and execute appropriate actions to ensure success of the project.
4 Steps of Project Control:1. Establish Standards.2. Observe Performance3. Compare Planned with Actual Performance4. Take Corrective Action
PCB (Project Control Book) is a collection of project documentation that establishes the framework for controlling the project. Helps keep project documentation up-to-date.
The PCB is used as a basis for reviews and audits, as an information repository for team members, and as a tool for other project managers.  It is important that you have all the latest information and status in your PCB.
Contents of the Project Control BookProceduresPlansRecords
1. What is the purpose of project control?To predict what might happen if current conditions continue
A metric is a tool for measuring the progress of a project.Earned value is one of the methods for gathering such information and monitoring a project’s performance.
The Earned Value (EV) is the amount of work actually accomplished, stated in terms of the budget assigned to accomplish that specific scope of work.
The Planned Value (PV) refers to the costs that should have been incurred for the work that should have been completed to date.
The Actual Cost (AC) is the total cost incurred for the work accomplished during a given period of time.
Budget at Completion (BAC) is the estimated total cost of the project at completion, or what the project should cost if your planning is accurate.
Estimate to Complete (ETC) is the projected cost to complete the project from a specified point in time.
Estimate at Completion (EAC) answers the question, “What will it cost when it is finished?”  Calculating the EAC requires two data points: the AC and the ETC.
Place the four stages of project control in the correct orderB.  Establish standardsC.  Observe performanceA.  Compare planned performance with actual performanceD.  Take corrective action
7. What is the Actual Cost (AC)?The total cost incurred for the work accomplished during a given period of time
Different Types of PM Reviews1. Contract readiness review2. Periodic review3. Completion review4. Special review5. Compliance review6. Deliverable review
Business reviews1. Business reviews2. Project management reviews3. Technical reviews
1. Which tool is used for identifying risks and generating containment plans?GS Risk
2. Which tool creates standardized documents and letters?DocumentFactory (DF)
3. Which Lotus Notes tool generates Work Breakdown Structures (WBS) and schedules based upon the IBM Global Services Method?Engagement Support Environment (ESE)
4. Which Lotus Notes-based tool is used for storing, accessing, linking and managing project management work products?Project Control Book (PCB)
5. Which tool is IBM’s strategic tool for enabling enterprise project management?IBM Rational Portfolio Manager

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