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264 Cards in this Set
- Front
- Back
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Project Risk
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an uncertain event or condition that, if it occurs, has a positive or negative effect on a project objective.
Also referred to as the "Known-Unknown" |
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Delphi Technique
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Risk information is gathered from different individuals and then tabulated and sent back to the participants for review and adjustments. The process is conducted anonymously with the individuals not communicating with each other.
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Pure Risks
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Provides opportunity for Loss Only
AKA Insurable Risk |
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Business Risks
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Provides opportunity for Loss or Gain
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Secondary Risks
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Generated from the selection of the risk responses
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Residual Risks
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Remaining risks following the implementation of risk response
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Project Charter
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A formal document that authorizes the project, including:
-Acknowledges that the project exists -provides the PM authority to do the project -identifies high level requirements of the project -Links project to the other business strategies/objectives It is typically issued by the customer or Sr Management Answers why we are doing the project |
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Project Management Plan
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A comprehensive document that includes all management plans (i.e. Cost, Risk, Procurement, Communication, Staffing, etc.) as well as project performance measurement baselines.
Note: It is much more than a project Gant/Bar Chart |
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Project Manager
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The integrator. The one who brings it all together.
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Historical Information
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Documented information from past projects that is used to plan and manage future projects. It is necessary to achieve continuous improvement.
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Lessoned Learned
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A document that recognizes things that were done right, wrong, and may have been done differently. They are also necessary to achieve continuous improvements.
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Project Plan
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The assembly of all stakeholders' needs and objectives, which requires formal (signature) approval.
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Enterprise Environmental Factors
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All that makes up the organization's business env., culture, infrastructure, human resources, industry standards, system, etc.
Note: Baggage you have to carry around. |
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Organizational Process Assets
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All of the organizations business knowledge assets developed to date, including standardized processes, change control procedures, financial databases, historical project information, process measurement data, leassons learned, etc.
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Project Management Methodology
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Basiclly identified and describes the project management process, tools, and techniques that the organization applies for managing project activities.
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Project Baseline
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The original project plan, including all approved changes.
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Project Management Information System (PMIS)
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The system established by the PMO or by the PM w/the Project Team that is to determine/report project status. This may include manual as well as computerized tools.
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Change Request
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A formal document used for identifying and requesting changes to the approved project plan.
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Kickoff Meeting
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A meeting that may involve all the stakeholders held at the end of the planning process, usually before project work begins.
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Change Control System
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Includes the formal procedures, forms, tracking systems, review/approval responsibilities, etc. for authorizing changes to the project.
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Change Control Board
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Responsible for review of project change request to determine if further analysis and evaluation is necessary. Also responsible for approval and rejection of project changes.
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Corrective Actions
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Any actions applied to bring future project performance in line with the baseline project plan. The result of measuring performance of the project variables (i.e. cost, time, quality, etc) and identifying root cause of poor performance.
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Preventive Action
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Any actions that deal with anticipated or possible deviations from the baseline project plan. More proactive than Corrective Actions.
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Project Selection Method
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There are various techniques used to select projects to initiate from a project portfolio. 2 major types include:
1) Benefits measurement method (i.e. comparative) 2) Constrained optimization method (i.e. mathematical) |
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Defect Repair
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All necessary rework for project deliverables that do not meet specifications. Defects are found during the quality management process and approved or rejected via integrated change control.
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Integrated Change Control
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Involves coordinating change across all PMBOK knowledge areas including, but not limited to: scope verification, scope change control, schedule change control, cost change control, quality control, risk monitoring and control, contract administration, performance measuring and reporting
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Configuration Mangement
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A rigorous scope change management system focused on the configuration of the end product/deliverables
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Product Scope
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Describes the requirements that relate to the end-product or deliverables of the project.
Answers the question: "WHAT?" |
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Project Scope
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Describes the work necessary to produce the end-product or deliverables of the project.
Answers the question: "HOW?" |
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Project Scope Management Plan
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A document that describes how project scope as well as changes to project scope will be managed. A key output of scope planning that serves to minimize/eliminate scope creep.
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Scope Verification
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Involves reviewing work products/results to ensure that they are completed correctly and are useful.
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Scope Creep
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A symptom of poor project management, it is never the clients fault. It is almost always the project team.
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Stakeholder Analysis
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Involves various tools/techniques used to ensure that stakeholders' needs, wants, and expectations are understood and documented in the product/project scope.
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Product Analysis
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Involves analysis of the customers' stated objectives of the end-product/deliverables and translating/documenting them in the product/project scope.
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Project Scope Statement
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The Preliminary Scope Statement generated in the initiating process is further defined/developed through "progressive elaboration" to produce this final statement of the project scope.
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Work Breakdown Structure (WBS)
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A deliverable-oriented grouping of project elements that organizes and defines the total scope of the project. As with the scope statement, it is often used to develop or confirm a common understanding of the project scope among the stakeholders. Work not identified in it is outside the scope of the project. It is a hierarchal, logical breakdown of the project work elements, where each descending level represents an increasingly detailed definition of the project elements.
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Code of Accounts
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The collection of all the WBS codes
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WBS Code
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The unique identifier assigned to each element in the WBS
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Work Packages
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The elements at the lowest level of the WBS. They are further decomposed into scheduled activities.
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WBS Dictionary
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A formal document that is used to:
-identify/authorize project scope of work -provide a clearer understanding of work package and/or schedule activity scope of work -minimize/eliminate scope creep A collection of work element descriptions. Typically includes work package descriptions as well as other planning information, including schedule due dates, cost estimates, assumptions, interdependencies, acceptance criteria and resource assignments |
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Decomposition of Scope of Work
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The process of subdividing the major project deliverables into smaller more manageable components.
WBS is THE TOOL |
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Expert Judgement
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Typicall involves obtaining a one-time (i.e single point) estimate from the individual(s) responsible for planning and/or executing the activity
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Analogous Estimating
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Involves referencing similar project(s) previous performance (i.e. Estimated/actual data) for developing an approximate high level (i.e top-down) estimate
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Parametric Estimating
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Involves mathematical modeling of historical project data for developing overall project estimates based simply upon quantification of a project parameter (i.e. sq footage, lines of code, etc). Mathematical modeling methods include linear regression (i.e. scatter diagrams) or simple learning curve data.
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Advantages of Scheduling Milestones
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-provides "bird's eye view" of project
-deliverable based -easy to setup |
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Milestones
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Events representing the start or finish of a major phase of work or deliverables. They are more commonly used to plan and schedule the finish rather than the start of activities.
uses: -planning phase of work (top-down) -controlling project progress -communicating project deliverables and status |
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Advantages of Using Gannt Charts
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-Can see duration and phases/activity overlap
-ability to measure impact on resources -capability to show progress and forecast variance |
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Gannt Chart
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Visual technique for listing the project activities within a specified time frame.
Used to show planning, progress to date and slippage against the baseline. This scheduling tool is used where more detail is required in the project plan. Like the WBS these charts can be summary or detail in nature. They do not show, fundamentally, dependencies of activities. |
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Mandatory Activity Dependencies
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Inherent in nature of the work being done
AKA Hard Logic |
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Discretionary Activity Dependencies
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defined by the project management team. They are usually defined based on knowledge of:
- "best practices" within a particular application area - Some unusual aspect where a specific sequence is desired AKA Soft Logic or Preferred Logic |
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External Activity Dependencies
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Involve relationships between project activities and non-project activities
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Arrow Diagram Method (ADM)
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A method of constructing a project network diagram using arrows to represent activities and connecting them with nodes to show their dependencies.
AKA Activity-on-arrow (AOA) |
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Precedence Diagramming Method (PDM)
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Method of constructing a project network diagram using nodes to represent the activities and connecting them with arrows to show their dependencies.
AKA Activity-on-node (AON) |
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Finish to Start (FS) PDM Relationship
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Sequential type of relationship between activities. When Activity A finishes Activity B may start.
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Start to Start (SS) PDM Relationship
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Concurrence type of relationship between activities. Activity A starts, Activity B may start.
Note: Even though the activities are setup to start at the same time, Activity A is the predecessor and Activity B is the successor in the relationship (i.e. B can't start before A) |
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Finish to Finish (FF) PDM Relationship
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Concurrence type of relationship between activities. When Activity A finishes, Activity B may finish.
Note: Even though the activities are set up to finish at the same time, Activity A is the predecessor and Activity B is the successor in the relationship (i.e. Activity B can not finish before Activity A) |
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Start to Finish (SF) PDM Relationship
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A rarely used relationship which reads: When Activity B Starts THEN Activity A can Finish
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Total Slack (TS)
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The amount of delay time available to a task without impacting the critical path (the end date)
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Free Slack (FS)
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Amount of time delay available to an activity without impacting the earliest start time of its succeeding activities.
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Conditional Diagramming Method
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A diagramming technique that allows for non-sequential activities such as loops or conditional branches
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Program Evaluation and Review Technique (PERT)
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Requires application of 3 point estimating including an optimistic, pessimistic, and most likely estimate.
Note: Can be applied to project activity durations, resource hours, or cost estimates |
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Monte Carlo Simulation
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-Involves the process of building a project plan into a model (network diagram) to represent a system that can be examined for performance
-The project schedule is calculated many times, randomly selecting one of the 3 estimates for each network activity for each schedule calculation, in order to provide a statistical distribution of the calculated results. |
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Critical Chain Project Management (CCPM)
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Involves making a 2 point estimate (i.e. a 90% confidence level estimate and a 50% confidence level estimate) for activities scheduled serially.
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Duration Compression
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Various techniques that maybe applied to reduce the duration of the project without impacting scope or quality including:
-Concurrent scheduling (aka Fast Tracking) -Adding Resources (aka Crashing) -Use more capable resources -Use different technology or approach -Overtime -Consume time contigency/reserve |
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Schedule Variance Analysis
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Involves comparison and analysis of project activities planned start/finish dates to actual start/finish dates
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Schedule Management Plan
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A document that describes how project schedule as well as changes to project schedule will be managed, including:
-How/when to establish project schedule baseline -How project schedule performance will be measured -How schedule variances will be managed -How changes to the project schedule will be controlled |
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Resource Leveling Heuristics
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"Rules of thumb" applied for scheduling project activities when resources are limited, where activities with slack can be delayed.
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Cost Estimating
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Involves developing an approximation of the cost of the resources needed to complete project activity
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Cost Budgeting
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Involves aggregating the estimated cost of individual activities or work packages to establish a project cost baseline
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Cost Control
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Involves influencing the factors that create cost variances and controlling changes to the project budget including:
A) influencing the factors that create changes to cost baseline to ensure that changes are agreed upon B) Determining that the cost baseline has changed C)Managing the actual changes when and as they occur |
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Variable Costs
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Costs that change with the amount of production or the amount of work (e.g cost of materials, wages, etc.)
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Fixed Costs
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Costs that remain the same as production/work changes (e.g. set-up, rentals, etc.)
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Direct Costs
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Costs that are directly related/assignable to project work activities (i.e. for producing deliverables)
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Indirect Costs
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Overhead items or distributable costs incurred that are not directly assignable to specific project work activities (e.g. Project Managers)
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Analogous Estimating
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Also called top-down estimating, uses the historical cost of a previous, similar project as the basis for the project estimate
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Parametric Modeling
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Uses deliverables characteristics (i.e parameters) in a mathematical model to estimate project costs
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Bottom-up Estimating
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Involves estimating the cost of individual work packages/activities and roll-up (i.e. via the WBS)
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Computerized Tools for Estimating, Controlling, and Forcasting
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Commercially available cost estimating software, or cost estimating software developed/used by the performing organization
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Performance Measurement
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Involves collecting and analyzing project cost status and/or progress, including:
-Conducting performance review meetings -Cost Variance Analysis- Planned vs Actual -Cost Trend Analysis- Compare Variance vs Time -Earned Value Analysis- Scope/Cost/Schedule |
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Budget At Completion (BAC)
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The total approved budget for the project.
AKA cost baseline |
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Actual Cost (AC)
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Cost incurred for the work that was done to date.
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Planned Value (PV)
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The cost estimate of the work that was planned to date.
It is calculated by multiplying the BAC by the time (i.e duration) % complete. |
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Earned Value (EV)
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The cost estimate of the work that was accomplished to date. The work accomplished to date is expressed by the physical % complete.
It is calculated by multiplying the BAC by the physcial % complete. |
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Estimate to Complete (EAC)
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From the end of this period, how much we estimate it will cost to complete
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Variance At Completion (VAC)
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The amount of positive or negative variance we anticipate at the end of the project
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Schedule Variance (SV)
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Positive is understood as "Ahead of Schedule"
Negative is understood as "Behind Schedule" |
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Cost Variance (CV)
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Positive is understood as "Under budget"
Negative is understood as "Over Budget |
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Progress Reporting
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Concerned with what the project has accomplished so far. Typically expressed as physical % complete.
May also employ Reporting Rules (e.g. 50/50 Rule, 20/80 Rule, or 0/100 Rule) |
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Estimate Level of Accuracy
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Including the following generally accepted levels:
-Order of Magnitude : -25% to +75% of Actual Cost (based on conceptual info) -Budget Estimate : -10% to +25% of Actual Cost (based on preliminary design) -Definitive Estimate : -5% to +10% of Actual Cost (based on detailed design specs) |
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Life-Cycle Cost Management
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The processes of planning and controlling all direct and indirect costs associated with the development, roll-out and implementation of the product.
It represents the total cost of ownership of the product. |
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Direct Cost Accounting Term
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Direct charges
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Indirect Cost Accounting Term
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Organization's cost of doing business across all projects
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Fixed Cost Accounting Term
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Cost of renting space, etc.
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Variable Cost Accounting Term
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Cost of materials (salaries, etc.)
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Present Value (PV)
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The value today of future cash flow expressed in today's value
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Net Present Value (NPV)
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The total gains and losses calculated based on adding all of the PV for each peroid
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Internal Rate of Return (IRR)
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The % rate (interest rate) that makes the present values of costs or expenditures equal to the present value of gains or incomes
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Benefit Cost Ratio (BCR)
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Comparing project benefits against the cost of performing the project
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Payback Period
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The number of time periods it takes to recover the cost of the investment and start gaining. Lesser time periods is good!
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Opportunity Cost
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The opportunity of forgoing benefits or gains by selecting an alternate project.
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Sunk Cost
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Actual expenditure to date. When deciding on proceeding ahead with a troubled project, they are NOT considered.
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Working Capital
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Assets less liabilities available for the company to invest.
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Straight Line Depreciation
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Similar amounts of depreciation are deducted each year
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Double Depreciation
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More aggressive in the initial years
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Value Analysis
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Often referred to as "Value Engineering" Considering alternate ways of performing the project objectives and scope of work in ways to save money or reduce cost
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Crosby Quality Theory
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-Conformance to specifications
-Zero defects -Quality is free |
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Juran Quality Theory
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-Fitness for use
-Management can control 85% -Trilogy: Quality Planning Quality Control Quality Improvement |
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Deming Quality Theory
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-Consistent conformity and uniformity
-Management can control 85% -14 points |
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Taguchi Quality Theory
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-Conformance to target
-Robust design minimizes variation and sensitivity to change -Loss Function |
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Quality
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Conformance to requirements and fitness for use
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Project Quality Management
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According to PMI, involves:
-Overall quality of the end-product/deliverables -No gold-plating (i.e. adding extras) -Overall quality of project management process -Prevention over inspection |
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Quality Policy
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Overall intentions and directions of an organization with regard to quality. Should be in existence before project, if not develop for project.
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Benchmarking
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Comparing planned practices against other projects
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Flowcharting
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Cause-and-effect diagrams (e.g Fishbone)
Can be used for Systems or processes |
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Design of Experiments
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By experimentation, identify which variables have the most influence on the overall outcome
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Quality Audits
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Structured review of quality management activities for support of lessons learned and continuous improvement
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Benefits/Cost Analysis
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Considers the benefits vs the cost of quality requirements
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Cost of conformance
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Includes quality training, studies, and surveys
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Cost of Non-conformance
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Includes rework, scrap, inventory, and warranty costs
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Cost of Quality
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=Cost of Conformance + Cost of Non-Conformance
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Inspections
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Measuring, examining, and testing
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Control Charts
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Graphical display of measured results over time of a process
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Pareto Diagrams
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Histograms ordered by frequency of occurrence
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Statistical Sampling
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Inspecting part of a population to predict the total populations' quality characteristic
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Trend Analysis
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Mathematical techniques to forecast future outcomes based on historical results.
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Run Charts
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Analyze processes according to time or order to determine trends or patterns over time
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Scatter Diagrams
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Used to analyze relationships between 2 variables
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Normal Distribution
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A bell-curve representing the distribution of measured results which is used to measure variance from requirements
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Standard Deviation
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A standard measurement of how far the measured result is away from the mean or expected value (i.e. the peak of the curve)
AKA SIGMA +- 1 SIGMA represents 68.26% +- 2 SIGMA represents 95.46% +- 3 SIGMA represents 99.73% +- 6 SIGMA represents 99.99% |
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Responsibility for Quality
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The PM is ultimately responsible for overall quality of the project as well as the project deliverables. Yet, each project team member is responsible for verifying quality of the work performed
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Impact of Poor Quality
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Includes increased costs, low morale, lower customer satisfaction, and increased risk to the project
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Sponsor
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Financial Resource
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Senior Management
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Authorize project and provide management oversight
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Human Resources
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Involves striving to achieve the most effective use of people on the project. Must be sensitive to the projects temporary nature
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Roles and Responsibilities
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Involves identifying as well as documenting who does what and who decides what. Graphically represented by a Project Organization Breakdown Structure (OBS)
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Staffing Management Plan
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Describes when and how people will be used on the project.
Prerequisite for Resource Leveling |
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Resource Histograms and Gannt Charts
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Tools and Techniques applied for the analysis and reporting of resource utilization on the project
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Staffing Pool Decription
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Previous experiences; Personal interests; Personal Characteristics; Availability/Non-Availability
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Team Building Activities
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Individual and group, management and technical training to improve performance on the project.
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Rewards and Recognition
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Formal management systems that promote desired bahavior
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Co-location
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Placement and assignment of project team members
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Leadership Style
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Involves various styles for managing people, including:
Directing Facilitating Coaching Supporting Autocratic |
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Directing Leadership Style
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Telling others what to do
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Facilitating Leadership Style
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Coordinating with others
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Coaching Leadership Style
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Instructing others
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Supporting Leadership Style
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Assisting others
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Autocratic Leadership Style
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Deciding without others' input
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Power of the Project Manager
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Involves technique for getting people to perform, including:
Formal Reward Penalty Expert Referent |
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Formal Technique for Power of the Project Manager
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Power based upon your position/authority
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Reward Technique for Power of the Project Manager
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Providing rewards to performance
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Penalty Technique for Power of the Project Manager
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Penalizing non-performance
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Expert Technique for Power of the Project Manager
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Power based on your knowledge/experience
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Referent Technique for Power of the Project Manager
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Referring to power from higher authority
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Problem Solving
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Involves:
-Identifying root-cause (i.e. not the symptoms) -Analyzing/understanding the problem -Identifying practical solutions -Deciding upon and implementing the solution -Review the implemented solution, and verify it worked |
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Conflict Resolution
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Techniques applied for solving problems including:
Confronting Compromising Avoidance Smoothing Forcing |
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Confronting Techniques for Conflict Resolution
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Solving the root-cause problem
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Compromising Techniques for Conflict Resolution
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Finding a solution that satisfies all
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Avoidance Technique for Conflict Resolution
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Retreating from or postponing a decision
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Smoothing Technique for Conflict Resolution
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Emphasizing agreement vs. differences
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Forcing Technique for Conflict Resolution
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Taking one position at the expense of others
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McGregor's X and Y Theory
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Where type X people are incapable, avoid responsibilities and avoid work whenever possible; and type Y people are willing to work without supervision and want to achieve
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Herzberg's Theory
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Concerned with hygiene factors and motivating agents where:
-Poor hygiene factors can destroy motivation, but not improve it, including working conditions, salary, personal life, relationships at work, security, and status -Motivating agents are what truly motivate people, including responsibility, self-actualization, professional growth, and recognition |
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Maslow's Hierarchy
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AKA Pyramid of Needs
Top Self Actualization Esteem Social Safety Physiological Bottom |
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Self Actualization Needs
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Self-fufillment, growth, learning
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Esteem Needs
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Accomplishment, respect, attention, appreciation
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Social Needs
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Love, affection, approval, friends, association
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Safety Needs
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Security, stability, and free from harm
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Physiological Needs
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Need for food, water, clothing, shelter
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Ultimate Objective of Communications
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UNDERSTANDING
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Communication Message Packaging Conditions
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Culture
language competency emphasis/emotion volume/quantity internal vs. external vertical vs horizontal formal vs informal |
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Stakeholder Analysis
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Involves analyzing information needs of project stakeholders and determining methods of delivery
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Communication Management Plan (CMP)
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Includes listings of all project stakeholders, reports, files, meetings, including guidelines for collecting, updating, distributing, documenting, and storing information
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Performance Reporting
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Includes:
Status Reporting Progress Reporting Forecasting |
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Status Reporting
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where the project currently stands relative to the baseline
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Progress Reporting
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What the project has accomplished so far
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Forecasting
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Predicts future project status and progress
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Project Manager's Role in Communication Management
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Concerned with controlling project communications, in order to avoid miscommunication.
It is impossible for the project manager to control all communications |
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Administrative Closure
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Includes archiving project records, validating deliverables meet specifications, obtaining customer acceptance, closing the project, and documenting lessons learned
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Number of Communications Channels
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Is determined by the formula:
(N(N-1))/2 Where N= the number of people |
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Project Meeting Guidlines
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-Have a specific purpose for every meeting
-Have a specific object for each meeting -Prepare an agenda for each meeting -Invite appropriate individuals to attend the meeting -Distribute the agenda for the meeting -Start the meeting on time -Follow the agenda -Take good minutes, delegate/consolidate as necessary -Finish the meeting on time -Acknowledge decisions made as well as action items -Prepare and publish the meeting minutes -Request and incorporate revisions to meeting minutes |
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Risk Priority
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AKA Ranking
=Risk Probability x Risk Impact (aka severity) |
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Risk Factor
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All that constitutes the risk including:
-The risk event or condition -What's at stake -The probability of its occurrence -When and/or how often it may occur |
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Risk Tolerance
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The amount of risk that is acceptable.
Usually expressed by project metrics (i.e. cost, time, hours, quality, etc.) |
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Risk Identification Techniques
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Various tools/techniques for identifying risk:
-Brainstorming with the project team/stakeholders -Interviewing key project players -Checklists and databases -Delphi Technique: Anonymous expert assessment -Past projects' lessons learned -Cause and Effect Diagrams (AKA Fishbone) -SWOT Analysis: Strengths, Weaknesses, Opportunities and Threats |
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Risk Consequence
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The expected outcome/result, should the risk event or condition occur.
Usually expressed in project metrics (i.e. cost, time, hours, quality, etc.) |
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Source of Risk
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AKA Risk Categories
may include: -Changes in requirements -Design errors, omissions, and misunderstandings -Poorly defined or understood roles and responsibility -Poor estimates -Insufficiently skilled staff |
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Risk Event
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Discrete occurrences that may positively or negatively impact the project
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Risk triggers
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Symptoms of actual risk events. Something that indicated or signals that the risk event has occurred or is about to
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Risk Register
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A document containing the results of project qualitative and/or quantitative analysis as well as risk response planning.
It is a component of the project management plan. |
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Expected Monetary Value (EMV)
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= Risk Event Probability x Risk Event Value ($)
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Sensitivity Analysis
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Involves breakdown and analyzing the impact of an individual risk element while all other uncertain elements are held at their baseline value.
What if analysis |
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Simulation Techniques
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Involves application of 3 point estimates (i.e. Optimistic, Most Likely, Pessimistic) and performing "what-if" analysis techniques, including:
-Statistical Sums -Monte Carlo Simulations |
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Negative Risk Response Strategies
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Types of action steps to prevent or eliminate threats, including:
-Acceptance -Avoidance -Mitigation -Transfer |
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Acceptance Negative Risk Response Strategy
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Accepting the consequences in the event that the negative risk/threat occurs.
AKA WATCH |
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Avoidance Negative Risk Response Strategy
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Eliminate the threat by eliminating the threat or taking an alternative approach.
Involves changing the project management plan |
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Mitigation Negative Risk Response Strategy
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Involves reducing the probability and/or impact of the risk to an acceptable level.
Usually involves application of management tools/techniques. AKA Contain (manage the risk) |
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Transfer Negative Risk Response Strategy
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Transferring to a third party by means of a contract or an insurance policy
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Positive Risk Response Strategies
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Types of action steps to promote or ensure opportunities, including:
-Acceptance -Exploit -Enhance -Share |
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Acceptance Positive Risk Response Strategy
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Accepting the positive consequences in the event that the opportunity occurs.
AKA WATCH |
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Exploit Positive Risk Response Strategy
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Seeks to eliminate the uncertainty of the risk by exploiting strategies that make sure the opportunity definitely happens.
Involves changing the project management plan. |
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Enhance Positive Risk Response Strategy
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Includes increasing the probability and/or positive impact of the risk to an acceptable level.
Usually involves application of management tools/techniques |
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Share Positive Risk Response Strategy
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Allocating ownership of a positive risk to a third party by means of a partnership, team, joint venture, etc.
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Contingent Response Strategy
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Defining action steps if a risk event occurs
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Alternative Strategies
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Risk events maybe averted by another approach
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Insurance
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Arrangements, such as bonding, to deal with some categories of risk (e.g. pure risk)
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Workarounds
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Unplanned responses to negative risk events that were not defined or foreseen
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Reserve
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Setting aside a reserve amount of cost or time to handle the "unknown-unknowns" -what you are unable to plan/foresee
AKA Overall Project Contingency |
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Risk Response Audits
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Evaluating and documenting the effectiveness of implemented risk responses and identifying alternative risk responses, as necessary
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Risk Review
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Periodic meetings where project stakeholders review/asses risks that have been identified so far, and identify, analyze, and respond to any emerging, secondary, or residual risks
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Procurement Management Plan
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A formal or informal element of the project plan that describes how solicitation planning through contract close out will be managed
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Contract Management Plan
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A document that specifies how contract administration will be performed for an individual contract
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Legal Contract
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MUST have ALL of the following:
-An offer -Acceptance -Consideration (i.e. value, may not be $) -Legal Capacity: separate, competent legal parties -Legal Purpose (i.e. not for illegal applications) |
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Statement of Work (SOW)
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Describes the deliverable(s) in sufficient detail to allow prospective sellers to determine if they are capable of providing it
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Make or Buy Analysis
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Must reflect the perspective of the organization and include indirect and direct costs
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Contract Type Selection
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Includes 4 major types:
-Cost Reimbursable (CR) -Cost Plus Fixed Fee (CPFF) -Cost Plus % of Cost (CPPC) -Cost Plus Incentive Fee (CPIF) -Cost Plus Award Fee (CPAF) -Time and Materials -Fixed Price (FP) -Fixed Price Incentive Fee (FPIF) -Fixed Price Economic Price Adjustment (FPEPA) -Purchase Order (PO) |
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Procurement Documents
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used to solicit proposals
Types: -Invitations for Bid (IFB) -Request for Proposal (RFP) -Request for Quotation (RFQ) -Invitation for Negotiation -Contractor Initial Response |
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Qualified Sellers List
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Some organizations have pre-qualified seller information that can help when making decisions
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Centralized Contracting
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Where a contract manager in the contracting department may ne assigned to handle contracts across many projects
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Decentralized Contracting
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Where a contract manager is assigned full time to one project and reports directly to the project manager
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Proposal
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The seller response. Prepared in accordance with the procurement document requirements
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Evaluation Criteria
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Criteria used to rate or score proposals, including:
-Purchase Price -Understanding of Need -Overall or Life Cycle Costs -Technical Approach -Management Approach -Financial Capacity |
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Weighting System
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Method for quantifying qualitative data
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Screening System
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Establishes minimum requirements of performance of evaluation criteria
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Contract Negotiations
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Clarification and mutual agreement on the structure and requirements before signing. The objectives of the negotiations are:
1) Obtain a fair and reasonable price 2) Develop a good relationship with the seller |
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Contract
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Mutually binding agreement, legal relationship
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Contract Change Control
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Defines the process by which the contract can be changed
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Contract Claim
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An affirmation that the buyer has done something to hurt the seller and, as a result, the seller is seeking compensation
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Project Manager's Role in Procurement Management
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-Identifying risks associated with the potential contract
-Incorporate risk mitigation and contingency strategies into the control -Tailor the contract to suit the specific needs of the project -Plan and schedule the procurement process into the overall project schedule -Be involved with the contract negotiations -Protect the integrity of the project -Protect the integrity of the buyers organization -Protect the relationship of the seller |
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Ethical Practice
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Conforming to the standards of the Project Management Profession
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PMI Paradigm
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Project Managers always do the right thing, professionally and ethically
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Doing the "right think"
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includes but is not limited to:
-Being truthful in all communications -Complies with applicable laws/codes -Reports violations of applicable laws/codes -Avoids conflicts of interest -Respects intellectual property owned by others -Does not accept inappropriate payment/gifts -Fairly assesses and deals with problems |
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Communication Model
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Sender / Receiver
Message Noise Media Reponse |
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Noise
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Anything that interferes with or disrupts the message
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System or Process Flow Charts
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uses:
-defining process steps -studying process failures -identifying process defects common types: -Fishbone (Ishikawa) -Process flow charts -Project schedules (Gannt, network diagrams) |
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Estimate at Completion Cost
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=Actual Cost + Remaining Cost
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Estimate at completion Schedule
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=Actual Cost + Remaining Duration
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Cumulative Cost Curves
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AKA S Curves
Typical reporting tool/technique used to support stakeholder understanding of Project Cost Variance |
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Period Based Incremental Costs
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AKA Histograms
Typically applied to support stakeholder understanding of Project Cost Trend Analysis |
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Remember
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Projects maybe Typical but they are NEVER the same
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Program
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A group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually
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Project Management
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the application of knowledge, skills, tools and techniques to project activities in order to meet project requirements
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Areas of Knowledge/Expertise Needed for Effective Project Management
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-Project Management knowledge and practices
-General management knowledge and skills -Interpersonal skills -Understanding of the project environment -Application area knowledge, standards and regulations |
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Portfolio Management
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Centralized management of a collection of projects or programs to meet strategic business objectives
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Project Management Office (PMO)
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an organizational unit for centralizing and coordinating the management of projects under its domain. Which may include direct management of project activities and resources and/or project management support functions
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Stakeholder
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individuals and organizations that are actively involved in the project, or whose interests maybe positively or negatively affected by the project
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Functional Organizational Structure
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Project Management Authority = little or none
Resource Availability = little or non Project Budge Control = functional manager Project Manager's Role = Pat-time Project Management Administrative Staff = Part-time |
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Weak Matrix Organizational Structure
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Project Manager's Authority = limited
Resource Availability = Limited Project Budget Control = Functional Manager Project Manager's Role = Part-time Project Management Administrative Staff = Part-time |
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Balanced Matrix Organizational Structure
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Project Manager's Authority = low to moderate
Resource Availability = low to moderate Project Budget Control = mixed Project Manager's Role = Full-time Project Management Administrative Staff = Part-time |
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Strong Matrix Organizational Structure
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Project Manager's Authority = Moderate to high
Resource Availability = Moderate to High Project Budget Control = Project Manager Project Manager's Role = Full-time Project Management Administrative Staff = Full-time |
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Projectized Organizational Structure
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Project Manager's Authority = High to Almost Total
Resource Availability = High to Almost Total Project Budget Control = Project Manager Project Manager's Role = Full-time Project Management Administrative Staff = Full-time |
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Project Expeditor
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staff assistance
communication coordinator |
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Project Coordinator
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Reports to Sr Management
additional decision making authority |
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Triple Contraint
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Time, Scope, Cost
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Project Life Cycles
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Are comprised of processes:
-Project Management Processes -Product Oriented Processes Can differ within industry, application and/or organization. |
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Project Management Processes
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concerned with describing and organizing the work of the project
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Product-oriented Processes
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concerned with specifying and creating the project's product
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Integration Management
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Included unification, consolidation, articulation, and integration actions that are crucial for managing expectations, meeting customer and other stakeholder requirements and ultimate successful project completion
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Scope Management
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Includes processes required to endure that the project includes all the work required, and only the work required, to complete the project successfully
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Time Management
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Includes the processes required to ensure timely completion of the project
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Cost Management
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Includes the processes required to ensure that the project is completed within the approved budget
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Quality Planning
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identifying which quality standards are relevant to the project and determining how to satisfy them
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Perform Quality Control
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-monitoring specific project results to determine if they comply with relevant quality standards
-identifying ways to eliminate causes of unsatisfactory performance |
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Perform Quality Assurance
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the application of planned, systematic quality activities to ensure that they project will employ all processes needed to meet requirements
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Rule of 7
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7 consecutive data points on either side of the mean on a control chart is assignable cause
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