WGU C722 FINAL EXAM!! Q&A – PROJECT MANAGEMENT (Guaranteed Score A+)

WGU C722 FINAL EXAM!! Q&A – PROJECT MANAGEMENT (Guaranteed Score A+) Three essential drivers that must be achieved to generate positive characteristics in project teams *** Cohesiveness, Trust, Motivation The five stages Dr. Bruce Tuckman (1965) introduced of group development *** Forming, Storming, Norming, Performing, Adjorning Forming *** In this stage, team members may be meeting for the first time. Often, no one really knows much about anyone else on the team. It may be premature to refer to this group of individuals as a team. It is a time of introduction and forming relationships and understanding from exchange of information. Storming *** Team members are beginning to know about each other, but they do not yet understand how to work together. Members may "jockey for position" within the team. The dynamics of working together beyond any written statement of "roles and responsibilities" are being established. Personalities surface, showing the strengths, weaknesses, and personal needs of each individual on the team. Integration into a team may come with some struggle and conflict. Norming *** Team members have "figured out" how they will interact with each other. Working relationships are beginning to form. Trust and understanding is beginning to form between team members. They are beginning to feel comfortable working together and openly and willingly sharing information. Performing *** Team members are fully comfortable working together. Trust has been developed. Working relationships have jelled. Work is being conducted and project progress is occurring. Adjourning *** This only occurs when all the team's work has been completed and the team is no longer required. This may occur at any time in the project life cycle. Co-located Teams *** involves team members physically working at the same location or holding project meetings together in a common setup. Virtual Teams *** are teams whose members interact primarily through electronic communications. Members of a virtual team may be within the same building or across continents. Two common situations occur that may prompt a change to the baseline scope *** The scope may be expanded to include additional functionality or the scope may be diminished due to changes in the project environment such as reduced funding or requirements or changing time/due date. Scope creep *** occurs when the project team integrates enhancements to the scope without proper evaluation and approval. work performance data *** will identify the work activities that are completed, partially completed, or not started. risk register *** is a list of potential risks, how the risks will be monitored, and what action will be taken should the risk event occur. corrective action *** is a document issued to identify quality failures and how they will be corrected. The deliverable itself may need to be reworked and the project plan may need to be revised to ensure that future deliverables do not include the same error. The Four Categories of Change *** Contingency plans, improvement changes, external events, scope change The change management system *** is in place to formally identify, evaluate, decide, and communicate project changes. Recording *** is the process of documenting and archiving project-related information. Reporting *** is a key nonverbal communications methodology used to inform and to document project information. Weekly status reports that are often working documents for the team to communicate: *** Accomplishments, Issues, Schedules, Resource utilization Monthly status reports for senior stakeholders that would include: *** Project overview bragging about progress, Issues including red light (critical) problems needing immediate resolution, yellow light items that are warning flags, and resolved issues, Current accomplishments, Future plans for the next month, Resource utilization and plans Monthly Financial Report *** showing progress against the budget quantifying monies spent and planned to be spent and identifying issues with recommendations for resolution Change management reporting *** showing changes identified, requiring approval, and resolution. Project controls *** are the data gathering, management, and analytical processes used to predict, understand, and constructively influence the time and cost outcomes of a project or program. Three Aspects of Project Quality *** quality management, quality assurance, and quality control. Quality management *** is the process of identifying the customer's requirements and how they will be measured. Quality assurance *** is the process of validating that the requirements and measurements are appropriate for the project environment. Quality control *** is the process of monitoring and changing project execution to ensure that activities are being executed as planned and will result in meeting the customer requirements. It is the monitoring and controlling process that occurs during project execution. Standards *** are requirements that are generally accepted by a group of firms that produce similar products or services. Requirements *** are what the customer needs to achieve from the completed project. Quality audits *** are rigorous reviews of the project performance. These reviews are often completed by groups of experts outside of the project team such as a company's quality assurance (QA) department or an outside consultant. positive outcomes of the audit *** Identifying issues before we go into production Identifying best practices that can be adopted by future project teams Identifying lessons learned that can improve performance on other projects Identifying problems that can be corrected before additional costs are incurred Checklists *** are one way of monitoring that activities/tasks have been addressed and one method of assuring that all needed documents are written. project charters *** contain enough information to understand who the project sponsor and project manager are, the purpose the project, a general idea of the scope, budget, and schedule. Statement of Work (SOW) *** defines the project's outcomes in terms of objectives, specific deliverables, acceptance criteria, technical requirements, milestones, constraints, and assumptions. Work Breakdown Structure (WBS) *** is a methodical deconstruction of deliverables into activities and then tasks to be performed. It details each activity that must be completed. living documents *** are all planning documents project scope *** describes how the project outcomes will be created. Documents the customer's expectations with regard to when the project will be completed (the time/schedule constraint) and how much the completed project will cost (the budget or cost constraint). Evolution of the Scope Statement *** Initial Scope (defining phase), Approved Scope Statement (planning phase), scope management (executing phase), scope verification (closing phase) product scope *** is used to describe the portion of the scope statement that defines the features and functions of the project outcome or deliverables. project scope statement *** represents a mutual understanding between the customer and the project team. project requirement *** is a characteristic, function, or capability that must be present in the project final outcome. Project deliverables *** are the features and functions of the project outcome that form the product scope. Resource Responsibility Matrix *** the resources needed are identified and the roles and responsibilities are detailed histogram *** is a graph of a frequency distribution in which rectangles with bases on the horizontal axis are given widths equal to the class intervals and heights equal to the corresponding frequencies. Knowledge, Skills, and Abilities (KSAs) *** skills required by the project team resource leveling *** The act of leveling the amount of resources needed to be constant over a period of time deliverable *** is a specific product or functionality that the project will provide. Activities are connected to two types of deliverables: *** Project management - communications, planning, execution, etc. Project specific to the desired end result of this project 8/80 rule *** do not assign anything that takes less than eight hours so we allow resources sufficient work to occupy them and we don't micromanage Project management deliverables *** the concrete items we need to manage this project. They are usually generic to a business or methodology adopted by a PM for use to manage the team and create sound communications. Project specific deliverables *** project specific deliverables are required tasks Risk Appetite *** is the degree of uncertainty an entity is willing to take on in anticipation of a reward. Risk Tolerance *** is the degree, amount, or volume of risk that an organization or individual will withstand. Risk Threshold *** refers to measurements along the level of uncertainty or the level of impact at which a stakeholder may have a specific interest. Below that risk threshold, the organization will accept the risk. Above that risk threshold, the organization will not tolerate the risk (PMBOK, 2015). Risk Planning *** is the process of reviewing every aspect of the project to identify what risks may occur. Risk Breakdown Structure (RBS) *** which follows the WBS and insures that each activity and task in the WBS is reviewed for risk and opportunity and documented as identified. Risk Management Options *** Avoid, mitigate, transfer and accept. Risk Avoidance *** During our planning, the team identifies the risk and sets a path to avoid the risk. Transfer of the risk *** transfer risk to someone else Mitigation *** is when the team acts in some fashion to reduce the impact or likelihood of the risk occurring. Accepting *** the risk is a response strategy where we recognize the risk and say that it is a part of the project, normal business practice and the team will plan to accept it accordingly. Opportunity Management *** Acceptance, Enhancing the opportunity and Sharing the opportunity risk register *** lists all risks (external, technical, or organizational) and assigns scores for probability and severity. Probability Severity (P*S) score *** helps us prioritize the risks appropriately. top-down estimation methods *** hese estimates are often provided by someone at the organization who has knowledge or experience from prior projects similar to the project being considered Bottom-up estimation methods *** require that estimates be made at the detailed work activity level of the WBS. parametric estimating *** top-down methods are based on the relationship between the current project and historical data ratio method *** uses experience from prior projects to estimate the overall cost of the current project. apportion method *** is based on the ratio method but takes into consideration specific functionality or types of work that will be required. Cost management *** is the process of measuring how close actual costs are to the budget and then making changes in project execution as needed. baseline budget *** is the approved budget and will be used as the standard for comparison of actual costs throughout the life of the project and identifying variances. Direct costs *** are costs that are directly attributable to completing the project work. Direct overhead costs *** are costs from the project that are shared across the work activities. General and administrative costs (G&A) *** are overhead costs from the project organization. padding *** people tend to add in extra time or money "just in case." Contingency reserves *** are costs included in the budget to cover situations that may occur. If the project requires the use of lumber, and lumber prices are known to fluctuate, then some portion of the lumber costs may be included in a contingency reserve. In a restaurant, food costs are very volatile and so the project must budget for those variances that can occur management reserve *** is an amount added to the overall project budget to cover unknown risks. Realistic *** Accurately reflects the way the organization does business. Appropriate for the level of resources, capabilities, and external environment of the organization. Capable *** Uses factors that are relevant to the organization. We would not expect one model to cover all dimensions of a project, we would want to use models that cover their dimension comprehensively. Flexible *** The model should provide accurate measures across a reasonable range of conditions. Easy to use *** Provide results in a reasonable amount of time. Results should be easily understood by the decision makers. Low cost *** The costs of gathering data and running the model should be low relative to the scale of the project. Comparable *** The model should be usable across a range of projects such that the outcomes of the model can be used to compare projects. Non-numeric project selection models *** focus on selection criteria that are not limited to traditional numeric performance measures (return on Investment [ROI], profit, revenue, etc.). competitive necessity model *** require a project proposal, which includes justification, cost, and time estimates, as well as documented outcomes. Operating necessity *** evaluates a project based on whether it will ensure ongoing operations with the understanding that not executing the project will result in operations being interrupted. Sacred cow projects *** are suggested by senior leadership or a powerful constituent of the company. Numeric project selection models *** use financial and other quantitative measures to drive decision making. Types are: internal rate of return, net present value, payback period. time value of money *** suggests that money is worth more to an organization now than in the future. payback period *** calculates the amount of time required to earn back the cost of doing the project. payback period formula *** (months)=Estimated Project Cost / Monthly Return (annual)=Cost / Savings internal rate of return (IRR) *** evaluates potential projects as if they were financial investments. It calculates the rate of return for a project. Net present value (NPV) *** is a financial measure of the total future benefits of a project minus the costs of the project. future net cash flows *** need to know the costs (cash outflows) and benefits (cash inflows) for the entire working life of the project outcome. Checklist project selection model *** use a series of questions to evaluate each potential project and then the answers to the questions would be compared to determine whether a project is accepted or rejected. Profit/profitability-based *** measure the financial returns of the project and include: payback period, net present value, and internal rate of return as possible measure. Scoring project selection model *** extends the benefits to the checklist approach and uses quantitative or qualitative criteria that are using a scale. Weighted factor scoring model *** senior management assigns a level of importance of each criterion which then assigns a value based on that level when calculating the total project score. operations *** are the ongoing, daily activities of an organization that produces revenue and expense. project *** is an activity or group of activities to generate a new, unique product, service, or results to support that program. However, it is possible that not all projects will be part of a larger program. There could, for example, be a project to develop a new battery that is more adaptable to more extreme temperature conditions. The product of this project could be applicable to all existing automobiles and not strictly a single program. portfolio *** is a group of related programs that support a long-term company goal or objective. The projects in a portfolio may individually address separate initiatives within the organization but collectively move the organization toward meeting a long-term goal or objective. business strategy *** consists of the activities, methods, tactics, etc. that will be employed to meet the business's goals. program *** is a group of related projects. project management *** the application of knowledge, skills, tools and techniques to project activities. Phases of the Project Life Cycle *** Defining (intializing), Planning, executing and closing Defining *** Determining the project's sponsor and the project's manager Creating a project charter. The charter is a document that, like a contract, is agreed upon by the sponsor and key stakeholders. It defines the project and authorizes the resources, roles, responsibilities, authorities, and scope for the project. Planning *** Technology Business process Staffing Training Testing Communications Budget constraints Integration of the project with operations and other projects Executing *** Unexpected changes that may present themselves in the competitive environment New organizational priorities Loss of key project resources Previously unidentified risks surfacing that puts the project plans in jeopardy Closing *** The closing phase of the project occurs when the project is completed to the customers' satisfaction. triple constraint *** cost (budget), schedule (time), and scope (deliverables). Project Manager (PM) *** is responsible and accountable for managing the project to maximize its success "working" project manager *** a functional manager "dedicated" project manager *** role in life is to be a project manager regardless of the operational needs of the business. Functional (Departmentalized) *** is the oldest and most basic form of organization. It is the type of organization most often represented in corporation shareholder reports Projectized *** subject matter experts (SMEs) from different functional areas are assigned to directly report to the project manager (PM) for a specific project. Matrix *** has less clearly defined lines of reporting. Business scenario *** represents an important business need or issue and provides an opportunity for others to create an appropriate, valuable solution Project objectives *** the following are typically determined by the project sponsor and are intended to be very specific in order to appropriately communicate project expectations. SMART Active listening *** the following is important to understanding what others are saying both verbally and nonverbally and for effective project management Stakeholder engagement *** the following is the process of communicating and interacting with stakeholders in a way that keeps them interested and focused on their involvement in the project Team status reports *** reports are often updated in an online collaboration tool and published weekly Work breakdown schedules *** ensures that everyone understands what has to be delivered and who is responsible to do what when 8 and 80 Rule *** a project manager should avoid controlling tasks that take less than eight hours and should not let more than two weeks go by without checking in project management maturity model (OPM3) five levels *** 1. "Ad Hoc" No formal standards, processes, methods, procedures, or staff to constitute a project management discipline. Standard technologies and reporting are sporadic 2."Planned" Project management standards, processes, methods, procedures, and staff exist in the organization, but are not considered to be an organizational standard. Basic documentation exists, inconsistent management support rarely/occasionally applied. 3."Managed" All project management standards, processes, methods, procedures, and staff are in place as organizational standards. Formal documentation exists, consistent management support, execution irregularly/inconsistently applied. 4."Integrated" More refined project management standards, processes, methods, procedures, and staff are in place. More refined documentation, consistent management support, consistent execution, and efficiency exist across all projects. Metrics are in place to collect performance data across all projects. 5."Sustained" Lessons learned and best practices are applied to continuously improve existing standards, processes, methods, procedures, and staff. Metrics are collected and applied at the project, portfolio, and organizational levels. The organization is in a position to evaluate future decisions based on past performance and maximize its competitive advantage in the industry. Weekly internal status meeting *** kind of meeting each leader speak to the status of their work and project risks, and explain the status of any mitigation activities. Advantages of Functional (Departmentalized) *** Lines of authority are clear. Departmental work is easily prioritized by identified departmental authority. There is flexibility in the use of staff. Subject matter experts (SME) available to work on multiple projects. Knowledge and experience readily shared between functional specialists. Technical continuity exists within the organization. Professional growth and career paths for the staff are clearly defined. disadvantages of Functional (Departmentalized) *** Utilizing resources across functions can be difficult. Requests for assistance from other departments not easily prioritized. It is inefficient for projects requiring collaboration/cooperation between departments. Project customer is not the only focus. Organization does not focus on solving project business issues. Project does not have a single individual responsible for all aspects of the project. Response to customer needs is slow and difficult. Project issues are not all given the same level of attention. Project is not managed holistically. Advantages of Projectized *** Clear lines of authority, the project manager has full authority. Once SMEs are assigned, there is less need to negotiate availability of resources. Project is managed holistically. Response to customer and stakeholder issues is faster and clearer. Skilled project team can support several successive projects of the same type. Timely decision making on project issues. Organizational structure is simple, flexible, and easy to understand. disadvantages of Projectized *** PM must have enough work to keep SMEs busy full-time or risk loss to another project or functional area. SME assigned may not have the most appropriate knowledge or expertise for the project. Approach is expensive because of the duplication of personnel. Equipment and personnel may be hoarded to ensure access to those resources. Team members lose access to a repository of functional or technical expertise. Policies and procedures may be applied inconsistently. Team members may be anxious about post-project work. Advantages of Matrix *** Central focus is the project. Project managers have access to a large reservoir of technically skilled people. Potentially more access to SMEs as needed. More chance to get the most appropriate SME. Project team members have less anxiety about the future. Customer issues are responded to quickly. Administrative personnel are not duplicated in each project team. Resource balancing between projects is simpler and more efficient. Project team organization is more flexible. Disadvantages of Matrix *** Requires cooperation and coordination between and among functional departments and project managers. SMEs not in daily contact with other SMEs for sharing of technical knowledge. Person with decision-making power is not always clearly identified. Resource balancing between projects can lead to friction. Project closeout tasks are often difficult in strong matrix organizations. Division of authority and responsibility is complex. project defining phase *** the idea for the project is formalized into a project proposal and the decision on whether the project will be selected for implementation is made. It begins when an idea for a project is identified by a company. planning phase *** when detailed planning occurs. It will require additional resources since people with specific knowledge about the work will need to provide input to the plan. executing phase *** is when the bulk of the work to complete the project outcomes occurs. Based on the plans created during the project planning phase, the project team completes the required work activities. project closing phase *** is when the project outcomes are delivered to the customer and/or sponsor and the customer and/or sponsor evaluates them to determine if they are acceptable - deliverables are ready, the budget and time requirements are met and quality is achieved, and lessons learned are documented. When the customer and/or sponsor accepts the project outcome(s), the PM must ensure that all the loose ends are tied up. project charter *** summarizes all of the key information about the project and authorizes the project manager to assemble the team and begin detailed planning. collecting customer requirements *** The process of gathering information from the customer and stakeholders in order to define the high level project outcomes project justification/business case *** is a statement explaining the business need for the project. Project Selection Process *** During the defining stage, the customer and project organization must determine whether the project is worthy of moving forward. project sponsor *** The person in the project organization who has authority to expend resources for projects Integration Management Plan *** Documents how the various processes and planning areas will be kept in sync throughout the project life cycle. Scope Management Plan *** Documents how the scope will be initially developed, maintained during project execution, and verified at project closure. Risk Management Plan *** Documents how risk events will be identified in advance, monitored, potentially mitigated, and managed across the project life cycle. Procurement Management Plan *** Identifies how the project team will acquire products and services from outside organizations. Communications Management Plan *** Documents which information will be communicated, when it will be communicated, how it will be communicated, and to whom. Human Resource Management Plan *** Defines the roles, skills, and knowledge needed by project team members. Identifies when the human resource will be needed and how the person will be identified, trained, and integrated with the team. Stakeholder Management Plan *** Explains how stakeholders will be identified along with their level of interest in the project and influence over the project. This is closely tied to the communications plan since stakeholders will need varying levels and frequency of information. Quality Management Plan *** Documents how the quality of the project deliverables will be measured and what steps will be taken to monitor and assure that the quality meets the customer requirement. Cost Management Plan *** Explains how costs will be estimated, monitored, controlled during the project. Time Management Plan *** Explains how the schedule will be developed, monitored and controlled. Configuration Management Plan *** Documents how the project team and stakeholders will keep track of the versions of project documents to ensure that the most up-to-date document is in use. Change Management Plan *** Documents how changes to the project outcomes will be managed, approved, implemented, and monitored. Process Improvement Plan *** Describes how the processes and procedures used on the project will be evaluated to ensure that the most efficient methods are implemented. Requirements Management Plan *** Documents how the customer and stakeholder requirements will be identified, integrated to the project scope, tracked throughout the project, and verified at closure. monitoring and controlling *** It is central to the PM's role to know the status of the project work (monitor) and take action as needed to ensure the project plan is completed as planned (control). lessons learned *** have great value to the project organization because they provide guidance for future projects. The triple constraint concept *** It is not possible to change any one side of a triangle without affecting the other two characteristics The triple constraints are: *** Time, Cost, Scope project scope *** is, simply put, what the result of the project is desired to be. statement of work (SOW) *** It defines the product of the project. Scope creep *** occurs when there are any—but particularly small—incremental additions to the project scope that are not subject to the formal scope change process. critical path *** is defined as the path with the longest duration from the start of the project to its completion. Float time/slack time *** is the amount of time an activity can be delayed without affecting the completion date of the project. Administrative activities *** during the project closing phase include performance report preparation, return of assets to the sponsoring organizations, archival of records, and documentation of lessons learned. Customer delivery activities *** project closing phase include returning excess materials, reconciling accounts payable, and preparing required financial reports. Milestones *** in a project schedule identify critical events and other activities that must be performed by specific dates before the project may proceed. Iterative planning processes *** allows the project to move forward in phases when not enough information is known to plan the entire project common components of project scope statements *** Project constraints, project acceptance criteria and technical requirements Project schedule *** A timeline that specifies when the project begins and when it is supposed to end Project cost *** The sum total of all expenses directly charged to the project Traditional project management methods *** PERT, CPM, critical chain, waterfall, and PRINCE2 Project evaluation and review technique (PERT) *** was developed in the 1950s to support the U.S. Navy's Polaris missile project. It uses a statistical approach to estimate the time that will be required to complete project work activities. Critical path method (CPM) *** was developed for the DuPont Corporation to help with projects in their manufacturing plants. It used for estimating project activity durations but CPM assumes that the estimates do not vary and time can be reliably estimated. Critical chain project management (CCPM) *** focuses on managing the uncertainties of a project. It assumes that resources available to complete the project are in limited supply and it specifically plans to ensure resource availability. Waterfall *** is a traditional practice which found its best use in software and hardware development. Extreme *** addresses issues of extraordinary uncertainty or complexity. PRINCE2 *** is a highly structured project management method which focuses on the specification of the outputs rather than the coordination of activities duration *** describe the number of time periods required to complete some portion of the work. activities *** are the starting point for developing the project schedule because they identify specific work that will need to occur in order to execute the project. Deterministic duration estimation techniques *** are appropriate when the activity durations are very predictable. Probabilistic duration estimation techniques *** are used when there is uncertainty in how long an activity will take. one-point estimate *** requires that the team expert provide a reliable estimate of the time necessary to complete the activity. triangular distribution *** Activity Duration=O+M+P/3 beta distribution *** uses the three estimates (optimistic, most likely, and pessimistic) but places emphasis on the most likely estimate. Activity Duration=O+4M+P/6 learning curves *** that as a person repeats a task, the time required to complete the task decreases. Other factors that can influence the impact of learning curves *** The complexity of the activity The level of human input required The duration of the activity The skill level required Activity Estimate Standard Deviation *** P−O/6 Activity Estimate Range *** (P−O) rill down in the Operations Plan, three specific activities have been identified *** Design Procedures, Create Training Guide, and Write Job Descriptions single-point calculation *** M*D network diagram *** visually shows the team and stakeholders how the schedule will unfold. precedence diagram *** show our understanding in a graphic representation for how the project will proceed. node label *** its unique identifier for every activity. immediate predecessor *** If a task is needed immediately Serial activities *** are done in a single stream of tasks. Concurrent Activities *** sets of activities can be done at the same time. Discretionary dependencies *** where the PM can choose based on resource availability, including people, money/budget, and other materials Mandatory or logical dependencies *** dependencies of one activity or task to another or legal requirements Internal dependencies *** dependencies such as impact on milestones as defined by the project requirements or under management control External dependencies *** dependencies that rely on external resources or forces Physical dependencies *** where primer must be applied before the final paint or where the plumber and electrician cannot work in the same utility closet at the same time project schedule network diagram *** A graphic representation of recognized dependencies. Finish-to-Start Relationships (FS) *** is a logical relationship in which a successor activity cannot start until a predecessor has finished. Finish-to-Finish Relationships (FF) *** is logical relationship where the successor task cannot be completed until the first task is completed. Start-to-Start Relationships (SS) *** we cannot start the successor activity until the predecessor activity has started. Start-to-Finish Relationships *** is where we cannot end the first task until the second task has started. Gantt Chart *** visually depict relationships on a project lead Time *** so that the successor task starts before its predecessor ends lag time *** makes the successor task start some time after its predecessor ends. examples of resources used in project tasks *** Money, supplies, humans Float or slack *** is the amount of time an activity, network path, or project can be delayed from the early start without changing the completion date of the project. Total float *** is the difference between the finish date of the last activity on the critical path and the project completion date. negative float *** which means the calculated completion date of the last activity is later than the targeted completion date established at the beginning of the project. free float *** activities that are not on the critical path have a difference between their early start date and their late start date, those activities can be delayed without affecting the project completion date. forward pass *** is when we start assigning dates based on the earliest start date, adding dates based on our estimates for each task in the diagram. backward pass *** know the required end date of the project, we can start from the end date Reduce critical path *** Inspect the tasks to identify if the tasks can be made shorter or if the estimate is too long. Have the experts review all of the estimates. crash *** is to obtain the greatest amount of compression of the schedule/critical path for the least incremental cost or time. critical chain *** builds on the critical path method by going a step further adding time buffers to account for limited resources. Fast-tracking *** is the term for tasks when they overlap despite their dependencies Schedule compression *** is the reduction of the overall project timeline to the least possible length for the least cost to the project. Schedule Compression Techniques *** Do the work faster — using more or better resources often results in more costs or reducing quality. Do less work — finish the tasks with less functionality. Reduce the quality of the work, accepting the potential consequences. EV *** Earned Value Dollar value of work completed AC *** Actual Cost Total dollar value of costs to date, includes work and invoices already paid as well as expenses that have been incurred but not invoiced or paid BAC *** Budget at Completion Approved total baseline budget approved for completed project 50-50 Rule *** Assigns 50% compete once activity is started, and 100% upon completion. No in between, every task is marked with either a 0%, 50%, or 100% 0-100 Rule *** Every task is marked as 0% completed until it is finished, then marked as 100% Cost Variance *** Determines if a project is meeting budget expectations Equation to determine if a project is meeting budget expectations *** Cost Variance CV = EV-AC (Earned Value - Actual Cost) Schedule Variance *** Determines if a project is meeting schedule expectations Equation to determine if a project is meeting schedule expectations *** Schedule Variance SV = EV-PV (Earned Value - Planned Value) CPI *** Cost performance index Measures cost efficiency CPI = EV/AC (Earned Value / Actual Cost) CPI > 1 or 100% CPI < 1 or 100% *** CPI>1 Project team is completing more work at less cost than expected CPI<1 Project team is accomplishing less work for the money spent and is behind budget SPI *** Schedule performance index Measures time efficiency SPI = EV/PV (Earned Value / Planned Value) SPI > 1 or 100% SPI < 1 or 100% *** SPI > 1 Project team is completing more work in less time than expected SPI < 1 Project team is completing less work than what is required in the time allowed and is behind schedule What is TCPI *** To complete performance index What the CPI (cost performance index) will need to be for the remainder of the project if the team intends to finish on budget TCPI Equation *** TCPI = (BAC - EV) / (BAC - AC) (Budget at Completion - Earned Value)/ (Budget at Completion - Actual Cost) TCPI when project is over-budget and customer approves new EAC (estimated cost at completion): *** TCPI = (BAC - EV) / (EAC - AC) (Budget at Completion - Earned Value)/ (New budget aka Estimated Cost at Completion - Actual Cost) PCIB *** Percent complete Index Budget How much work has been completed PCIB = EV / BAC Earned Value / Budget at Completion What is PCIC *** Percent complete index - cost Used when customer agrees to a new BAC (budget at completion) PCIC Equation *** PCIC = AC / EAC Actual Cost / Estimated Cost at Completion ETC *** Estimate to Completion How much money will need to complete the project ETC = (BAC - EV)/CPI (Budget at Completion - Earned Value) / Cost Performance Index CPI = EV/AC EAC *** Estimate at Completion Forecast of how much more the project is expected to cost to complete EAC = AC + ETC Actual Cost = Estimate to Completion ETC = (BAC - EV)/CPI [Cost performance index] CPI = EV/AC EVA *** Earned Value Assessment EVA Process Step 1 *** Collect measures from project records: 1. AC - Actual Cost 2. EV - Earned Value 3. PV - Planned Value 4. BAC - Budget at Completion EVA Process Step 2 *** Calculate Variances: 1. CV - Cost Variance 2. SV - Schedule Variance 3. PCIB - Percent complete index budget EVA Process Step 3 *** Calculate Performance Factors 1. CPI - Cost Performance Index 2. SPI - Schedule Performance Index EVA Process Step 4 *** Calculate Estimates or Identifying Performance Factors 1. ETC - Estimate to completion 2. EAC - Estimate at completion 3. TCPI - To complete performance Index 4. PCIB - Percent complete index budget or PCIC - (Percent complete index - cost) operations *** are the ongoing, daily activities of an organization that produces revenue and expense. project *** is an activity or group of activities to generate a new, unique product, service, or results to support that program. However, it is possible that not all projects will be part of a larger program. There could, for example, be a project to develop a new battery that is more adaptable to more extreme temperature conditions. The product of this project could be applicable to all existing automobiles and not strictly a single program. portfolio *** is a group of related programs that support a long-term company goal or objective. The projects in a portfolio may individually address separate initiatives within the organization but collectively move the organization toward meeting a long-term goal or objective. business strategy *** consists of the activities, methods, tactics, etc. that will be employed to meet the business's goals. program *** is a group of related projects. project management *** the application of knowledge, skills, tools and techniques to project activities. Phases of the Project Life Cycle *** Defining (intializing), Planning, executing and closing Defining *** Determining the project's sponsor and the project's manager Creating a project charter. The charter is a document that, like a contract, is agreed upon by the sponsor and key stakeholders. It defines the project and authorizes the resources, roles, responsibilities, authorities, and scope for the project. Planning *** Technology Business process Staffing Training Testing Communications Budget constraints Integration of the project with operations and other projects Executing *** Unexpected changes that may present themselves in the competitive environment New organizational priorities Loss of key project resources Previously unidentified risks surfacing that puts the project plans in jeopardy Closing *** The closing phase of the project occurs when the project is completed to the customers' satisfaction. triple constraint *** cost (budget), schedule (time), and scope (deliverables). Project Manager (PM) *** is responsible and accountable for managing the project to maximize its success "working" project manager *** a functional manager "dedicated" project manager *** role in life is to be a project manager regardless of the operational needs of the business. Functional (Departmentalized) *** is the oldest and most basic form of organization. It is the type of organization most often represented in corporation shareholder reports Projectized *** subject matter experts (SMEs) from different functional areas are assigned to directly report to the project manager (PM) for a specific project. Matrix *** has less clearly defined lines of reporting. Business scenario *** represents an important business need or issue and provides an opportunity for others to create an appropriate, valuable solution Project objectives *** the following are typically determined by the project sponsor and are intended to be very specific in order to appropriately communicate project expectations. SMART Active listening *** the following is important to understanding what others are saying both verbally and nonverbally and for effective project management Stakeholder engagement *** the following is the process of communicating and interacting with stakeholders in a way that keeps them interested and focused on their involvement in the project Team status reports *** reports are often updated in an online collaboration tool and published weekly Work breakdown schedules *** ensures that everyone understands what has to be delivered and who is responsible to do what when 8 and 80 Rule *** a project manager should avoid controlling tasks that take less than eight hours and should not let more than two weeks go by without checking in project management maturity model (OPM3) five levels *** 1. "Ad Hoc" No formal standards, processes, methods, procedures, or staff to constitute a project management discipline. Standard technologies and reporting are sporadic 2."Planned" Project management standards, processes, methods, procedures, and staff exist in the organization, but are not considered to be an organizational standard. Basic documentation exists, inconsistent management support rarely/occasionally applied. 3."Managed" All project management standards, processes, methods, procedures, and staff are in place as organizational standards. Formal documentation exists, consistent management support, execution irregularly/inconsistently applied. 4."Integrated" More refined project management standards, processes, methods, procedures, and staff are in place. More refined documentation, consistent management support, consistent execution, and efficiency exist across all projects. Metrics are in place to collect performance data across all projects. 5."Sustained" Lessons learned and best practices are applied to continuously improve existing standards, processes, methods, procedures, and staff. Metrics are collected and applied at the project, portfolio, and organizational levels. The organization is in a position to evaluate future decisions based on past performance and maximize its competitive advantage in the industry. Weekly internal status meeting *** kind of meeting each leader speak to the status of their work and project risks, and explain the status of any mitigation activities. Advantages of Functional (Departmentalized) *** Lines of authority are clear. Departmental work is easily prioritized by identified departmental authority. There is flexibility in the use of staff. Subject matter experts (SME) available to work on multiple projects. Knowledge and experience readily shared between functional specialists. Technical continuity exists within the organization. Professional growth and career paths for the staff are clearly defined. disadvantages of Functional (Departmentalized) *** Utilizing resources across functions can be difficult. Requests for assistance from other departments not easily prioritized. It is inefficient for projects requiring collaboration/cooperation between departments. Project customer is not the only focus. Organization does not focus on solving project business issues. Project does not have a single individual responsible for all aspects of the project. Response to customer needs is slow and difficult. Project issues are not all given the same level of attention. Project is not managed holistically. Advantages of Projectized *** Clear lines of authority, the project manager has full authority. Once SMEs are assigned, there is less need to negotiate availability of resources. Project is managed holistically. Response to customer and stakeholder issues is faster and clearer. Skilled project team can support several successive projects of the same type. Timely decision making on project issues. Organizational structure is simple, flexible, and easy to understand. disadvantages of Projectized *** PM must have enough work to keep SMEs busy full-time or risk loss to another project or functional area. SME assigned may not have the most appropriate knowledge or expertise for the project. Approach is expensive because of the duplication of personnel. Equipment and personnel may be hoarded to ensure access to those resources. Team members lose access to a repository of functional or technical expertise. Policies and procedures may be applied inconsistently. Team members may be anxious about post-project work. Advantages of Matrix *** Central focus is the project. Project managers have access to a large reservoir of technically skilled people. Potentially more access to SMEs as needed. More chance to get the most appropriate SME. Project team members have less anxiety about the future. Customer issues are responded to quickly. Administrative personnel are not duplicated in each project team. Resource balancing between projects is simpler and more efficient. Project team organization is more flexible. Disadvantages of Matrix *** Requires cooperation and coordination between and among functional departments and project managers. SMEs not in daily contact with other SMEs for sharing of technical knowledge. Person with decision-making power is not always clearly identified. Resource balancing between projects can lead to friction. Project closeout tasks are often difficult in strong matrix organizations. Division of authority and responsibility is complex.