QM 6655 - MIDTERM STUDY GUIDE
(CHAPTERS 1 - 7); PROJECT
MANAGEMENT - THE MANAGERIAL
PROCESS 7TH EDITION
A project - ANSWER-a temporary endeavor undertaken to create a unique product,
service, or result.
The major characteristics of a project are as follows: - ANSWER-1. An established
objective.
2. A defined life span with a beginning and an end.
3. Usually, the involvement of several departments and professionals.
4. Typically, doing something that has never been done before.
5. Specific time, cost, and performance requirements.
A program - ANSWER-is a group of related projects designed to accomplish a
common goal over an extended period of time.
Program Management - ANSWER-Program management is the process of
managing a group of ongoing, interdependent, related projects in a coordinated way
to achieve strategic objectives.
Project Life Cycle - ANSWER-The stages found in all projects— definition, planning,
execution, and delivery.
Project Life Cycle - Defining Stage: - ANSWER-Specifications of the project are
defined; project objectives are established; teams are formed; major responsibilities
are assigned.
Project Life Cycle - Planning Stage: - ANSWER-The level of effort increases, and
plans are developed to determine what the project will entail, when it will be
scheduled, whom it will benefit, what quality level should be maintained, and what
the budget will be.
Project Life Cycle - Executing Stage: - ANSWER-A major portion of the project work
takes place—both physical and mental. The physical product is produced (a bridge,
a report, a software program). Time, cost, and specification measures are used for
control. Is the project on schedule, on budget, and meeting specifications? What are
the forecasts of each of these measures? What revisions/changes are necessary?
,Project Life Cycle - Closing Stage: - ANSWER-Closing includes three activities:
delivering the project product to the customer, redeploying project resources, and
post-project review.
A 6 month project delay can result in a _____ percent loss in product revenue share.
- ANSWER-33%
Triple Bottom Line: - ANSWER-Planet, People, Profit
Strategic Management: - ANSWER-The process of assessing "what we are" and
deciding and implementing "what we intend to be and how we are going to get
there."
Two major dimensions of strategic management: - ANSWER-responding to changes
in the external environment and allocating scarce resources of the firm to improve its
competitive position.
Four Activities of the Strategic Management Process: - ANSWER-1. Review and
define the organizational mission.
2. Analyze and formulate strategies.
3. Set objectives to achieve strategy.
4. Implement strategies through projects.
SWOT analysis - ANSWER-strengths, weaknesses, opportunities, threats
Characteristics of objectives - SMART: - ANSWER-Specific, Measurable,
Assignable, Realistic, Time related
Project priority system - ANSWER-The process used to select projects. The system
uses selected criteria for evaluating and selecting projects that are strongly linked to
higher level strategies and objectives.
Project portfolio - ANSWER-Group of projects that have been selected for
implementation balanced by project type, risk, and ranking by selected criteria.
Implementation gap - ANSWER-The lack of consensus between the goals set by top
management and those independently set by lower levels of management. This lack
of consensus leads to confusion and poor allocation of organization resources.
Symptoms of organizations struggling with strategy disconnect: - ANSWER-1.
Conflicts frequently occur among functional managers and cause lack of trust.
2. Frequent meetings are called to establish or renegotiate priorities.
3. People frequently shift from one project to another, depending on current priority.
Employees are confused about which projects are important.
, 4. People are working on multiple projects and feel inefficient.
5. Resources are not adequate.
"Sacred cow" - ANSWER-A project that is a favorite of a powerful management
figure who is usually the champion for the project.
Project sponsor - ANSWER-Typically a high-ranking manager who endorse and lend
political support for the completion of a specific project.
Strong Matrix - ANSWER-A matrix structure in which the project manager has
primary control over project activities and functional managers support project work.
Advantages of Matrix Organization: - ANSWER-- Efficient: Resources can be shared
across multiple projects as well as within functional divisions.
- Strong Project Focus: A stronger project focus is provided by having a formally
designated project manager who is responsible for coordinating and integrating
contributions of different units.
- Easier Post-Project Transition: Because the project organization is overlaid on the
functional divisions, specialists maintain ties with their functional group, so they have
a homeport to return to once the project is completed.
- Flexible: Matrix arrangements provide for flexible utilization of resources and
expertise within the firm.
Disadvantages of Matrix Organization: - ANSWER-- Dysfunctional Conflict: The
matrix approach is predicated on tension between functional managers and project
managers who bring critical expertise and perspectives to the project. Such tension
is viewed as a necessary mechanism for achieving an appropriate balance between
complex technical issues and unique project requirements. While the intent is noble,
the effect is sometimes analogous to opening Pandora's box. Legitimate conflict can
spill over to a more personal level, resulting from conflicting agendas and
accountabilities. Worthy discussions can degenerate into heated arguments that
engender animosity among the managers involved.
- Infighting: Any situation in which equipment, resources, and people are being
shared across projects and functional activities lends itself to conflict and competition
for scarce resources. Infighting can occur among project managers, who are
primarily interested in what is best for their project.
- Stressful: Matrix management violates the management principle of unity of
command. Project participants have at least two bosses—their functional head and
one or more project managers. Working in a matrix environment can be extremely
stressful.
- Slow: In theory, the presence of a project manager to coordinate the project should
accelerate the completion of the project. In practice, decision making can get bogged
(CHAPTERS 1 - 7); PROJECT
MANAGEMENT - THE MANAGERIAL
PROCESS 7TH EDITION
A project - ANSWER-a temporary endeavor undertaken to create a unique product,
service, or result.
The major characteristics of a project are as follows: - ANSWER-1. An established
objective.
2. A defined life span with a beginning and an end.
3. Usually, the involvement of several departments and professionals.
4. Typically, doing something that has never been done before.
5. Specific time, cost, and performance requirements.
A program - ANSWER-is a group of related projects designed to accomplish a
common goal over an extended period of time.
Program Management - ANSWER-Program management is the process of
managing a group of ongoing, interdependent, related projects in a coordinated way
to achieve strategic objectives.
Project Life Cycle - ANSWER-The stages found in all projects— definition, planning,
execution, and delivery.
Project Life Cycle - Defining Stage: - ANSWER-Specifications of the project are
defined; project objectives are established; teams are formed; major responsibilities
are assigned.
Project Life Cycle - Planning Stage: - ANSWER-The level of effort increases, and
plans are developed to determine what the project will entail, when it will be
scheduled, whom it will benefit, what quality level should be maintained, and what
the budget will be.
Project Life Cycle - Executing Stage: - ANSWER-A major portion of the project work
takes place—both physical and mental. The physical product is produced (a bridge,
a report, a software program). Time, cost, and specification measures are used for
control. Is the project on schedule, on budget, and meeting specifications? What are
the forecasts of each of these measures? What revisions/changes are necessary?
,Project Life Cycle - Closing Stage: - ANSWER-Closing includes three activities:
delivering the project product to the customer, redeploying project resources, and
post-project review.
A 6 month project delay can result in a _____ percent loss in product revenue share.
- ANSWER-33%
Triple Bottom Line: - ANSWER-Planet, People, Profit
Strategic Management: - ANSWER-The process of assessing "what we are" and
deciding and implementing "what we intend to be and how we are going to get
there."
Two major dimensions of strategic management: - ANSWER-responding to changes
in the external environment and allocating scarce resources of the firm to improve its
competitive position.
Four Activities of the Strategic Management Process: - ANSWER-1. Review and
define the organizational mission.
2. Analyze and formulate strategies.
3. Set objectives to achieve strategy.
4. Implement strategies through projects.
SWOT analysis - ANSWER-strengths, weaknesses, opportunities, threats
Characteristics of objectives - SMART: - ANSWER-Specific, Measurable,
Assignable, Realistic, Time related
Project priority system - ANSWER-The process used to select projects. The system
uses selected criteria for evaluating and selecting projects that are strongly linked to
higher level strategies and objectives.
Project portfolio - ANSWER-Group of projects that have been selected for
implementation balanced by project type, risk, and ranking by selected criteria.
Implementation gap - ANSWER-The lack of consensus between the goals set by top
management and those independently set by lower levels of management. This lack
of consensus leads to confusion and poor allocation of organization resources.
Symptoms of organizations struggling with strategy disconnect: - ANSWER-1.
Conflicts frequently occur among functional managers and cause lack of trust.
2. Frequent meetings are called to establish or renegotiate priorities.
3. People frequently shift from one project to another, depending on current priority.
Employees are confused about which projects are important.
, 4. People are working on multiple projects and feel inefficient.
5. Resources are not adequate.
"Sacred cow" - ANSWER-A project that is a favorite of a powerful management
figure who is usually the champion for the project.
Project sponsor - ANSWER-Typically a high-ranking manager who endorse and lend
political support for the completion of a specific project.
Strong Matrix - ANSWER-A matrix structure in which the project manager has
primary control over project activities and functional managers support project work.
Advantages of Matrix Organization: - ANSWER-- Efficient: Resources can be shared
across multiple projects as well as within functional divisions.
- Strong Project Focus: A stronger project focus is provided by having a formally
designated project manager who is responsible for coordinating and integrating
contributions of different units.
- Easier Post-Project Transition: Because the project organization is overlaid on the
functional divisions, specialists maintain ties with their functional group, so they have
a homeport to return to once the project is completed.
- Flexible: Matrix arrangements provide for flexible utilization of resources and
expertise within the firm.
Disadvantages of Matrix Organization: - ANSWER-- Dysfunctional Conflict: The
matrix approach is predicated on tension between functional managers and project
managers who bring critical expertise and perspectives to the project. Such tension
is viewed as a necessary mechanism for achieving an appropriate balance between
complex technical issues and unique project requirements. While the intent is noble,
the effect is sometimes analogous to opening Pandora's box. Legitimate conflict can
spill over to a more personal level, resulting from conflicting agendas and
accountabilities. Worthy discussions can degenerate into heated arguments that
engender animosity among the managers involved.
- Infighting: Any situation in which equipment, resources, and people are being
shared across projects and functional activities lends itself to conflict and competition
for scarce resources. Infighting can occur among project managers, who are
primarily interested in what is best for their project.
- Stressful: Matrix management violates the management principle of unity of
command. Project participants have at least two bosses—their functional head and
one or more project managers. Working in a matrix environment can be extremely
stressful.
- Slow: In theory, the presence of a project manager to coordinate the project should
accelerate the completion of the project. In practice, decision making can get bogged
