Chapter2-4 Project Management Framework

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

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

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

 PMI defines stakeholders as :

 Project Manager
 Customer
 Performing Organization , government agencies
 Sponsor
 Team
 Internal / External
 End users
 Society, Citizens
 Others – owners, funders, sellers

 Stakeholder Management is made up of the following steps :

 Identifying stakeholders
 Assessing their knowledge and skills
 Analyzing the project to make sure their needs will be met
 Getting and keeping them involved in the project through assigning them work, using them as experts, reporting to them,
involving them in changes and the creation of lessons learned
 Getting their sign-off ad formal acceptance during closure

 Forms Of Organization
 Functional : (Power rests with the functional manager)
 Matrix : (In strong matrix, power rests with the project manager . In week matrix, power rests with the functional
manager . In a balanced matrix, the power is shared between the functional manager and the project manager .
 Projectized : All organization is by projects. The project manager has total control of projects. Personnel are assigned
and report to a project manager .

 Advantages and Disadvantages of each organizational form :

 Projectized
Advantages Disadvantages
Efficient project organization No "home" when project is completed
Loyalty to the project Lack of professionalism is disciplines
More effective communications than functional Duplication of facilities and job functions
Less efficient use of resources

 Matrix
Advantages Disadvantages
Highly visible project objectives Not cost effective because of extra administrative
personnel
Improved project manager control over resources More then one boss for project teams
More support from functional organizations More complex to monitor and control
Maximum utilization of scarce resources Tougher problems with resource allocation
Better coordination Need extensive policies and procedures
Better horizontal and vertical dissemination of Functional mangers may have different priorities than
information than functional project managers
Team members maintain a "home" Higher potential for conflict and duplication of effort

 Functional
Advantages Disadvantages
Easier management of specialists People place more emphasis on their functional specialty
to the detriment of the project
Team members report to only one supervisor No career path in project management
Similar resources are centralized, companies are Project manager has no authority
grouped by specialties
Clearly defines career path in areas of work
specialization
 Chapter5 Integration Management

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

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

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

 Project plan components :

Project charter Budget
Project management approach Schedule
Scope statement Resources
WBS Change control plan/system
Responsibility chart/assignments Performance measurement baselines
Network diagram/ major milestones Management plans (scope, schedule, cost, quality, staffing, communications, risk
response, procurement )

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

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

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

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

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

 The exam has many situational questions, dealing with hw to make changes.
For example :
A functional manger wants to make a change to the project .what is the first thing a project manager should do? Or , a senior
manager wants to make a change to the scope of work . what is the best thing to do first?
The answers are the same in either case . generally, the team should follow these steps :
1. evaluate (assess) the impact of the changes to the project
2. create (compute) alternatives including cutting other tasks, crashing, fast tracking, etc .
3. meet with management ,sponsor and internal stakeholders
4. meet with customer as necessary
 Chapter6 Scope Management

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

 Project Selection Methods :

1. Benefit Measurement method (comparative approach )
 Murder board – a panel of people who try to shoot down anew project idea
 Peer review
 Scoring models
 Economic models
 Benefit compared to cost
2. Constrained optimization methods (mathematical approach)
 Linear programming
 Integer programming
 Dynamic programming
 Multi-objective programming

 Project Charter Components :

 Project title and description (what is the project? )
 Project manager assigned and authority level (who is given authority to lead the project ,and can he
determine budget, schedule, staffing, etc. ?)
 Objectives (what numerical criteria related to the triple constraint will be used to measure project
success ?)
 Business case (why is the project done?)
 Product description / deliverables (what are the specific deliverables are wanted and what will be the
end result of the project ?)
 Signed and approved by
 Senior management (a person who is high enough in the organization to warrant everyone on the
team to him or her. )

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

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

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

 Management By Objectives (MBO) : A management philosophy that says an organization should be managed .It has
three steps :
1. Establish unambiguous and realistic objectives .
2. Periodically evaluate if objectives are being met
3. Take corrective action
 Delphi technique : A method most commonly used to obtain expert opinions on technical issues, scope of work needed,
estimates or risks .
To use Delphi technique, a request for information is sent to experts, the responses they return are compiled, and the
results are sent back to them for further review. The Delphi technique has three rules :
1. Do not get the experts in the same room
2. keep the experts identifies anonymous
3. Try to build consensus

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

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

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

 Scope verification focus is on the acceptance of the scope of the work while quality control involves analysis of the
correctness of the work .
 Chapter7 Time Management

 Scheduling Tools :
1. Milestone Charts
2. Flowcharts
3. Bar(Gantt) Chart
4. Network Diagram

Under what circumstances would you use a network To show interdependencies between tasks
diagram instead of a Gantt chart ?
Under what circumstances would you want to use a To report to senior management
milestone chart instead of a Gantt chart ?
Under what circumstances would you want to use a To track progress
Gantt chart instead of a network diagram ? To report to the team

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

 Methods to draw network diagrams :

1. Activity on Node (AON) or Precedence diagramming method (PDM) :
There can be 4 type of relationships between tasks :
Finish-to-start , Finish-to-finish , Start-to-start , Start-to-finish
2. Activity on Arrow (AOA) , Activity on Line or Arrow Diagramming Method (ADM)
This method uses :
• Only finish-to-start relationships between tasks
• May use dummy activities
• PERT and CPM estimating techniques can only be drawn on AOA diagram
3. GERT : A network diagram method that allows loops between tasks .

 Types Of Dependencies : The sequence of tasks depends on the following dependencies :

1. Mandatory Dependency (hard logic)
2. Discretionary dependency (Preferred , preferential or Soft logic )
3. External Dependency

 Estimating Methods :
1. CPM ( Critical Path Method ) :
It refers to estimating based on one time estimate per activity
2. PERT (Program Evaluation and Review Technique )
PERT formula : (P+4M+O)/ 6
Standard Deviation of a task using PERT : P-O/6
Variance of a task using PERT : (P-O/6)2
# in order to find standard deviation of a series of items ,there is a rule . You cant add standard deviations ; you must convert
standard deviations into variances and then take the square root of the total to convert back into standard deviation .
3. Monte Carlo Simulation .

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

 LAG : inserted waiting time between tasks

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

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

 Shortening the Schedule ( Duration compression ) :

1. Re-Estimating
2. Crashing : Adding more resources to critical path tasks while maintaining scope
3. Fast Tracking : doing critical path tasks in parallel that were originally planned in series

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

 Heuristics : means a rule of thumb

 Variance analysis : comparing actual dates with planned .

 Chapter8 Cost Management

 Inputs To Estimating : (or what do you need before you estimating cost or time ) :
1. WBS
2. Network Diagram
3. Schedule
4. Historical information
5. Resource pool
6. Risk management plan
7. Risks

 Resource Planning involve :

1. Review WBS
2. Identify potentially available resources
3. Review historical information a bout the use of resources in past or similar projects .
4. Review organizational policies on resource use
5. Solicit expert judgment on what resources are needed and available .
6. Quantify resource requirement by task
7. Develop a plan to what types of resources are needed , in what numbers , when

 Cost estimating methods :

1. Analogous estimating (top-down) :
top or middle managers use expert judgment or the actual time and cost of previous ,similar projects as the basis for
estimating the current project . analogous estimating is a form of expert judgment .
2. Bottom-Up estimating :
with this technique ,the people doing the work create cost and schedule estimates. Estimates ,based on the WBS ,are rolled
up to get a project total
3. Parametric Estimating : .
Use a mathematical model to predict project costs and it has two types :
• Regression (or scatter diagram )
• Learning curve – the 100th room printed will cost less than the first room because of improved efficiency .
4. Computerized estimating tools


Advantages of analogous estimating Disadvantages
Quick Less accurate
Tasks need not be identified Estimates prepared with a limited amount of detailed
information and understanding of the project
Less costly to create Requires considerable experience to do well
Gives the project manager an idea of the level of Infighting at the highest management levels to gain the
management's expectations biggest piece of the pie without knowing what the pie is
Overall project costs will be capped Extremely difficult for projects with uncertainty

Advantages of bottom-up estimating Disadvantages

More accurate Takes time and expenses to do this form of estimating
Gains buy-in from the team Tendency for the team to pad estimates
Based on a detailed analysis of the project Requires that the project be defined and understood
Provides a basis for monitoring and control Team infighting to gain the biggest piece of the pie

 EARNED VALUE ANALYSIS

Acronym Term Interpretation
PV Planned Value What is the estimated value of the work planned to e done ?
EV Earned Value What is the estimated value of the work actually accomplished ?
AC Actual Cost What is the actual cost incurred ?
BAC Budget at Completion How much did we budget for the total job ?
EAC Estiamte at What do we currently expect the total project to cost ?
Completion
ETC Estimate to complete From this point on,how much more do we expect it to cost to finish the job ?
VAC Varience at completion How much over or under budget do we expect to be at the end of the project ?
Name Formula Interpretation
Cost Variance (CV) EV-AC Negative is over budget ,positive is under budget
Schedule Variance (SV) EV-PV Negative is behind schedule , positive is a head of schedule
Cost Performance Index (CPI) EV / AC We are getting $____________out of every $1
Schedule performance Index EV / PV We are [only] progressing at ______% of the rate originally
(SPI) planned .
Estimate at completion (EAC) As of now how much do expect the total project to cost ? $_____ .
Note : There are many ways to BAC / CPI • Used if no variances from the BAC have
calculate EAC. The first formula occurred or you will continue at the same rate of
to the right is the one most often AC + ETC spending
asked on the exam
AC + BAC – EV
• Actual plus a new estimate for remaining work.
used when original estimate was fundamentally flawed.
• Actual to date plus remaining budget .used
AC + (BAC-EV) / CPI when current variances are thought to be a typical of the
future
• Actual to date plus remaining budget modified
by performance. used when current variances are
thought to be typical of the future .
Estimate to Complete (ETC) EAC – AC How much more will the project cost ?
Variance at completion BAC – EAC How much over budget will we be at the end of the project ?

Today
Original
Plan PV BAC

AC ETC EAC

Old Term Old Acronym New Acronym

Budgeted Cost of work scheduled BCWS PV
Budgeted cost of work performed BCWP EV
Actual cost of work performed ACWP AC

Revise Page 141 of ritta Book

 Accuracy of estimates : there is three levels :

1. order of magnitude estimate : this type of estimate is usually made during the initiating phase and is in the range of -25%
to +75% from actual .
2. Budget estimate : this type of estimate is usually made during the planning phase and is in the range of -10% to +25%
from actual
3. Definitive estimate : this type of estimate is also made during the planning phase and is in the range of -5% to + 10%
from actual.

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

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

 Internal Rate of Return (IRR) :

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

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

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

 Print Page 148 , 149 and attach them

 Chapter9 Quality Management

 Print Page 168 , 169 and attach them

 Impact of Poor Quality :

1. Increased Costs
2. Low morale
3. lower customer satisfaction
4. Increased risk


Cost Of Conformance Cost Of Non Conformance
Quality training Rework
Studies Scrap
Surveys Inventory costs
Warranty costs

 Tricks for understanding the difference between quality planning ,assurance, and control
Quality Planning Quality Assurance Quality Control
Plan Implement ,check overall Measure details
What quality standards should What lessons can we find to Let's measure (test) the
we improve quality – quality number of errors in the
Tricks to use on the project ? audit ? program .
understand the
difference How will we meet those Let's take the outputs of quality Let's measure schedule
standards control measurement and see performance.
if we will meet the overall
quality standards. Did we meet the specific
quality standards ?
Are our quality standards still
appropriate ?
Mostly done
during Planning Executing controlling

 Quality planning includes :

1. identifying quality standards relevant to the project and determining how to satisfy them
2. Benchmarking
3. Benefit/Cost analysis
4. flowchart
5. design of experiments
6. cost of quality
7. fishbone diagram

 Quality Assurance includes:

1. the process of evaluating overall performance on a regular basis to provide confidence that the project will satisfy the
relevant quality standards
2. re-evaluating quality standards , methods and procedures used on the project
3. quality audits – a structured review of quality activities that identifies lessons learned .

 Quality Control Tools :

1. Inspection
2. Pareto diagram
3. Fishbone diagram
4. Checklists
5. Statistical sampling
6. control charts
7. Flowcharting
8. Trend analysis

 Review page 175 for Control Chart

 Chapter10 Human Resource Management

 Print Page 191 , 192 , 193

 Human Resource Responsibilities for Project Managers :

1. creating a project team directory
2. negotiating with resource managers for best resources
3. creating project job descriptions for team members and other stakeholders
4. understanding the team's and other stakeholders needs for training related to their work on the project and making sure
they get the training
5. creating a formal plan for team , management and other stakeholders ; how they will be involved in the project and what
roles they will perform – a staffing management plan

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

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

 Powers Of Project Manager :

1. Formal (legitimate)
2. Reward
3. Penalty (coercive)
4. Expert
5. Referent

 Leadership styles :
1. Directing : Telling others what to do
2. Facilitating : Coordinating the input of others
3. Coaching : Instructing others
4. Supporting : Providing assistance along the way
5. Autocratic making decisions without input
6. Consultative : Inviting ideas from others
7. Consensus Problem solving in a group with decision making based on group agreement >

 Print 200,201,202,203 and attach them

 Chapter11 Communications Management

 The following terms sometimes show up on the exam :

1. Nonverbal : about 55% of all communications are nonverbal ( e.g. based on physical mannerisms )
2. Para lingual : means the pitch and tone of your voice .this also help to convey a message
3. Active Listening : The receiver confirms that she is listening ,confirms agreement and asks for clarification .
4. Effective listening : watching the speaker to pic up physical gestures and facial expressions, thinking about what you
want to say before responding asking questions repeating and providing feedback .
5. feedback : saying things like " Do you understand what I have explained " usually asked be the sender .


Communications Method When used
Formal written Complex problems , project plans , project charter ,
communicating over long distances
Formal verbal Presentations , speeches
Informal written Memos , email , notes
Informal verbal Meetings , conversations

 Communication Blockers :
1. Noise
2. Distance
3. Improper encoding of messages
4. Saying "that is a bad idea "
5. Hostility
6. Language
7. Culture

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

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

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

 What activities are done during closure ?

1. Product verification
2. Financial closure
3. Lessons learned
4. Update records
5. Final project performance reporting
6. project archives
 Chapter12 Risk Management

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

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

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

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

 A risk management plan may include :

1. Methodology
2. Roles and responsibilities : non team members may be included
3. Budgeting for risk management process
4. Timing : hoe often the risk process will be performed throughout the project
5. scoring and interpretation
6. Thresholds : a method to determine which risks will and will not be acted upon
7. Reporting formats
8. Tracking

 Risk Categories : New

1. Technical , quality or performance risks
2. Project management risks
3. organizational risks
4. external risks

 Risk Categories : Old

1. External : regulatory , environmental , government , market shifts
2. Internal : Time , Cost , unforeseen conditions , scope changes , inexperience , poor planning , people , staffing ,
materials , equipment
3. Technical : Changes in technology
4. Unforeseeable : Only a small portion of risks ( some say a bout 10% ) are actually unforeseeable .
 Information-Gathering Techniques :
1. Brainstorming
2. Delphi technique
3. Interviewing
4. Strengths , weaknesses , opportunities and threats analysis

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

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

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

 Revise decision tree page 238

 Risk Response Strategies :

1. Avoidance
2. Mitigation
3. Acceptance
4. transference ( Deflection , Allocation )

 Print page 242

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

 Workarounds : unplanned responses to risks or dealing with risks that you could not or did not anticipate .
 Chapter13 Procurement Management

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

 Project manager role in procurement :

1. Identify risks and incorporate mitigation and allocation of risks into the contract
2. Help tailor the contract to the unique needs of the project .
3. Fit the schedule for completion of the procurement process into the schedule for the project .
4. Be involved during contract negotiation
5. Protect the integrity of the project and the ability to get the work done
6. Protect the relationship with the seller

 The Procurement Management Process

STEP What happens during What do you have when you are done
"BUZZWORDS"
1. Procurement planning Make or Buy Make or by , contract type selected ,
scope of work drafted
2. Solicitation planning RFP created RFP ready
3. Solicitation Q&A Proposal created
4. Source selection Pick one Contract signed
5. Contract Administration Admin Substantially complete
6. Contract closeout Finish Done

 Print pages 262 , 263 , 264 , 266 , 267

 The difference between administrative closure and contract closeout :

1. Contract closeout occurs first. All contracts would be closed out before the project is closed out . Therefore, at the end of
the contract, the project manager would perform a procurement audit for each contract . administratively close out the
contract , and then administratively close out the project when the whole project is completed .
2. Administrative closure may be done at the end of each project phase and at the end of the project as a whole. Contract
close out is done only once , at the end of the contract .
3. Administrative closure uses the term " lessons learned " and contract closeout uses the term " procurement audit "
4. Contract closeout requires more documentation tan administrative closure .
 Chapter14 Professional Responsibility

 Professional Responsibility means :

1. Do the right thing
2. Follow the right process
3. Act ethically , fairly and professionally
4. Watch for conflicts of interests or the appearance of conflicts of interest
5. Report violations
6. Increase knowledge and practices
7. Deal with problems

 Professional responsibilities breaks down into the following categories :

1. Ensure individual integrity
2. Contribute to the project management knowledge base
3. Enhance individual competence
4. Balance stakeholders interests
5. Interact with team and stakeholders in professional and cooperative manner