Manager Styles Coercive Authoritative Affiliative Democratic Pacesetting Coaching Forms of Power Coercive Reward Legitimate Punishment - Is based

on the idea in the mind of the person being influenced that the person having the influence has the ability to inflict punishment or pain. Reward - Is based on the idea in the mind of the person being influenced that the person having the influence has the ability to administer some sort of reward. By Position - Is based on the idea in the mind of the person being influenced that the person having the influence has this influence because of the values of the person being influenced. In other words, the influenced person believes that the person influencing has the right to do this through formal authority in the organization. By Personality - Is based on the idea in the mind of the person being influenced that the person having the influence has this influence based on the person being influenced having a strong desire to identify with the person influencing. A person who leads others by virtue of his or her charisma has this type of power. Special Knowledge & Ability - Is based on the idea in the mind of the person being influenced that the person having the influence has this influence based on special knowledge or ability. This special knowledge or ability is believed to help the influenced achieve their goals. The project manager has been assigned by senior management and is in charge of the project. Also known as positional power. Immediate Compliance Providing Long term direction and Vision Creating Harmony Building Commitment & Generating new Ideas Accomplish tasks to high standards of excellence Long term professional development of others

Referent

Expert

Representative Formal / Position

Conflict Styles Avoiding Accommodating Competing The person seeks to avoid or postpone having to deal with conflict (often until more facts can be gathered, or one party has had time to think it through) The person seeks to maintain the relationship with others by subordinating his own position The person seeks to impose his will or solution on others, despite their misgivings or differing opinions

Compromising Collaborating Resolving Conflicts Forcing Smoothing

The persons seeks to find a solution to the conflict by having each of the parties make concessions The person seeks to find a solution by involving all parties affected by the conflict.

Compromise

Problem Solving / Confronting Withdrawal Team Decisions Individual Minority Majority Consensus Concordance

Win-Lose -- One way to resolve a conflict is for one party to force the other to agree. This is the kind of conflict resolution that happens when one person has power over another and exercises it. Loss – Loss -- Temporary – Smoothing minimizes the disagreement by making differences seem less important. This kind of resolution occurs when either one of the persons disagreeing or another person in the group attempts to make the differences smaller than they seem. Loss – Loss -- Compromise is similar to smoothing. Using this type of conflict resolution, each of the parties gives up something to reach a common ground. In this resolution the parties themselves agree to give up on some points but not others. In doing this they reach a common agreement that has relatively few points of disagreement. Best Solution – Win-Win Yield – Lose -- Temporary

Very Low Team Involvement – One person actually makes the decision Low Team Involvement – A few of those involved in a situation meet to consider the matter and make a decision, and this decision is binding for all concerned Low Team Involvement - More than half of those involved in the situation make a decision, and it is binding for all concerned. Very high Team involvement - Consensus is needed for most important decisions. Complete and absolute - Concordance (100% commitment) is needed for decisions of critical importance.

Influence and Leadership Coercive Influence Reward Influence Position Influence Is based upon the leader’s capability to punish Is based on the leader’s ability to dispense rewards Is based upon the tendency of people to respond to individuals in higher positions

Expert Influence Information Influence Personal Influence

Is based upon your skill or experience which others may hold in high regard Is based upon the information or knowledge you have that’s not available to others Is based upon your individual personality and charisma, and the relationships you create

Motivation Models Needs People are motivated to satisfy perceived needs MASLOW

CLAYTON ALDERFER Suggested that needs can be classified into 3 broad categories Existence Relatedness Growth Expectancy Equity Herzberg’s Theory Needs include basic survival needs, both physiological and Safety needs Needs include all aspects of interpersonal relationships – Social Needs Needs include self-esteem and achievement of potential

If a person does not believe it is possible to do something, or that no consequence of value will occur to the person if that something is done, then the person will not be motivated to act in the first place. People wanted to be treated fairly, and will be motivated to restore a feeling of equity if they are not treated fairly • Hygiene agents – These are not motivate people, absence of these will demotivate performance – Job security, Paycheck, clean & safe working conditions, sense of belonging, civil working relationships etc., • Motivating Agents – These are the elements that motivate

Theory X Theory Y Theory Z

the people to perform – Responsibility, appreciation of work, recognition, chance to excel, education, other opportunities other than financial rewards. Managers think that, the workers are lazy, and no trust on them, need micromanagement Self-led, motivated, and can accomplish new tasks proactively Participative management style. Workers will be motivated by sense of commitment, opportunity, and advancement. Workers in this organization learn the business by moving to through the ranks of the company

Negotiations Persuading Bridging Disengaging Asserting Attractive Avoiding Based on logic or fact; can be measured objectively Offering of support; disclosing vulnerability Legitimate tactic; use to buy time or de-fuse tense situations Based on personal beliefs, values and attitudes; very subjective Making others share positive feelings, envision desirable outcomes Not legitimate; used when we are not comfortable about negotiating the issues

Team Development Stages Forming Storming Norming
When first formed, a team is just a group of individuals who have been assigned to work together. Individuals tend to focus on their own goals As teams begin actual work, they often go through a period of conflict. This is natural: members are sorting out their roles and differences in opinion on work issues In the Norming Stage, the group starts to function as a team. Group norms are established and peer pressure tends to keep individual behaviors within expectations. Team member roles are clear and the team agrees on the right decision-making technique for a given situation. Real work tasks are attacked and the group agrees on approaches and processes. Things get done in a more definable, repeatable, predictable way. Successful teams move on to the Performing Stage when their effort becomes focused. Members are dedicated to achieving team goals. The team responds to opportunities quickly. Leadership, responsibility and recognition are typically shared among team members. Members leverage the diversity of their team mates, and play to their individual strengths. A high level of trust and trustworthiness abounds. Some teams, such as project teams and parallel teams, have a scheduled end. When the team has realized its goal, it is disbanded. This final phase is called the Adjourning or Mourning Stage. When a team's work is finished, members may feel a sense of loss or disillusionment that affects their

Performing

Adjourning / Mourning

ability to be effective in their next assignment.

Benefit Measurement Methods Murder Boards Murder boards are committees full of folks that ask every conceivable negative question about the proposed project. Their goal is to expose strengths and weakness of the project—and kill the project if it’s deemed worthless for the organization to commit to. Not a pleasant decision-making process. Scoring models (sometimes called weighted scoring models) are models that use a common set of values for all of the projects up for selection. For example, values can be profitability, complexity, customer demand, and so on. Each of these values has a weight assigned to them—values of high importance have a high weight, while values of lesser importance have a lesser weight. The projects are measured against these values and assigned scores by how well they match to the predefined values. The projects with high scores take priority over projects will lesser scores. Just like they sound, benefit/cost ratio (BCR) models examine the cost-to-benefit ratio. For example, a typical measure is the cost to complete the project, the cost of ongoing operations of the project product, compared against the expected benefits of the project. For example, consider a project that will cost $575,000 to create a new product, market the product, and provide ongoing support for the product for one year. The expected gross return on the product, however, is $980,000 in year one. The benefit of completing the project is greater than the cost to create the product. How long does it take the project to “pay back” the costs of the project? For example, the AXZ Project will cost the organization $500,000 to create over five years. The expected cash inflow (income) on the project deliverable, however, is $40,000 per quarter. From here it’s simple math: 500,000 divided by $40,000 is 12.5 quarters, or a little over three years to recoup the expenses. Discounted cash flow accounts for the time value of money. If you were to borrow $100,000 for five years from your uncle you’d be paying interest on the money, yes? (If not, you’ve got a great uncle.) If the $100,000 were invested for five years and managed to earn a whopping six percent interest per year, compounded annually it’d be worth $133,822.60 at the end of five years. This is the future value of the money in today’s terms. The net present value (NPV) is a somewhat complicated formula, but allows a more precise prediction of project value than the lump sum approach found with the PV formula. NPV evaluates the monies returned on a project for each time period the project lasts. In other words, a project may last five years, but there may be a return of investment in each of the five years the project is in

Scoring Models (Weighted scoring models)

Benefit/Cost Ratios

Payback Period

Discounted Cash Flow

Net Present Value

existence, not just at the end of the project.
Time Period 1 2 3 4 5 Totals Investment NPV Cash Flow 15,000.00 25,000.00 17,000.00 25,000.00 18,000.00 $100,000.00 Present Value 14,150.94 22,249.91 14,273.53 19,802.34 13,450.65 83,927.37 78,000.00 $5,927.37

Internal Rate of Return

The last benefit measurement method is the internal rate of return (IRR). The IRR is a complex formula to calculate when the present value of the cash inflow equals the original investment. Don’t get too lost in this formula—it’s a tricky business and you won’t need to know how to calculate the IRR for the exam. You will need to know, however, that when comparing multiple projects’ IRRs, projects with high IRRs are better choices than projects with low IRRs. This makes sense. Would you like an investment with a high rate of return or a lower rate of return?

Constrained Optimization Methods Linear Programming Nonlinear Programming Integer Algorithms Dynamic Programming Multi objective Programming EAC Formulas EAC = BAC / CPI EAC = AC + ETC EAC = AC + (BAC – EV) EAC = AC + ((BAC – EV) / CPI) Sources of Power Used if no variance from BAC or you will continue at the same rate of spending Used when original estimate is flawed Used when current variances are atypical of the future Used when variances are thought to be typical of the future

Legitimate Coercive Reward Expert Referent

Formal, position Punishment Reward Expert Well Respected Person

Contingency Reserve Calculation
Risk Probability Impact: Cost Is Negative; Benefits Are Positive –$4000 $3000 $2100 –$2500 Contingency Reserve Fund Ex$V

A B C D

20% 45% 10% 65%

–$800 $1350 $210 –$1625 $865

Reasons for Conflict 1 2 3 4 5 6 7 Schedules Priorities Resources Technical Beliefs Administrative Policies & Procedures Project Costs Personalities

Project Endings Addition Starvation Integration Extinction Quality Gurus Crosby Juran Deming Kaizen Zero Defect, Prevention or rework results Fitness for use, conformance Quality is a management problem (85%) Continuous improvement Projects becomes Operations Resources and Budget cuts Resources reassigned or redeployed to other projects Successful end of the project

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Utility Theory – A technique that characterizes an individual’s willingness to take risk Autocratic Project Manager – Makes decisions without team input Spending Plan - The project's spending plan is the plan for the flow of money to pay for the project. Sum of years digits calculation depreciation – 1+2+3+4+5 => 5+4+3+2+1 => 15 o After 2 years = 4/25 * Item Value o This is a accelerated depreciation method

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Learning Curve – Average unit cost decreases as much units are produced Mores – Different standards of conduct in cultures Frederick Taylor – believed that work should be broken down into smaller pieces, and procedures written to perform it. Halo effect – Assuming that a person can do other things well because he or she is currently exhibiting excellent performance Referent – Well respected person Process – A series of actions that brings about a result Project Management process map – A diagram that shows the usual location of knowledge areas with in the processes Privity – Describes contractual relationships (Contractual, confidential information between customer and vendor) Liquidated damages – An agreed-to penalty for missing a project milestone Constructive change – One party assumes that the other has the authority to make changes Types of dispute resolutions – Negotiation, Mediation, Arbitration, Litigation Variance – Square of Standard Deviation Gold Plating – Including enhancements that are not necessary to accomplish the objective of the project. Constrained Optimization – Linear Programming MBO – Management by objectives Attribute Sampling – Determining if a product conforms to a specification or does not (GO NO-GO). Force Majeure – External risks like Earthquakes, Floods etc., SWOT – Strengths, Weaknesses, Opportunities, Threats. Ordinal Scales – Low, High, Very high etc., Cardinal Scales – 0.1, 0.3, 0.5, 0.9 etc., Distribution Types – Uniform, Normal, Triangular, beta and log normal Triangular Distribution – Optimistic, Most Likely and Pessimistic. Normal & Log Distribution – Mean and Standard deviation Sensitivity Analysis – Which risks have the most potential impact on the project? Risk Response Strategies – Avoidance, Transfer, Mitigation, Acceptance Risk Premium – Company pays to third party for transferring the risk

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Active acceptance – Developing a Contingency plan to execute, should a risk occur Passive acceptance – no action, leaving the project team to deal with the risk as they occur Fallback plan – if the risk has a high impact, or if the selected strategy may not fully effective (or is an additional contingency plan to use in the event that the first contingency plan fails). Contingency allowances – Amounts of time, money, or resources to account for know risks. Risk response Plan – Also called Risk Register Reports used to monitor and control the risks – Issue Logs, Action-Item Lists, Jeopardy Warnings and Escalation Notices. Project Closing – Project postmortem Project Portfolio management – Is the process of choosing and prioritizing projects within an organization Business Risk – The risk of financial gain or loss Pure Risk – Risks that could threaten the safety of the individuals on the project JIT – Just in Time – Decreases the inventory investments Kaizen Technologies – Small process and product improvements that are carried out on a continuous basis Optimal quality – when revenue from improvements equals the incremental costs to achieve the quality Parkinson’s Law – Work expands so as to fill the time available for its completion. Resource Leveling – Smoothes out the project schedule so resources are not overallocated. A result of this is that project’s are often scheduled to last longer than initial estimates. Sapir-Whorf Hypothesis – An understanding of the local language, its implied meaning, and colloquialisms allow individuals to have a deeper understanding of the people, their values and actions. Culture Shock – Initial disorientation a person first experiences when visiting a country other than his own. Ethnocentrism – Happens when individuals measure and compare a foreigner’s actions against their own local culture. The locals typically believe their own culture is superior to the foreigner’s culture. Sixth domain (Professional Responsibilities) – Ensure Integrity, Contribute to the knowledge base, Apply professional knowledge, Balance stakeholder interests, Respect differences. Personal Literacy – Understanding and valuing yourself Social Literacy – Engaging and challenging others Business Literacy – Focusing and Mobilizing your organization Cultural Literacy – Valuing and leveraging cultural difference Paralingual – Used to describe the pitch and tone on one’s voice Exception Report – When variance exceed a given limit Bull’s eye – Used to trigger communication needs to management when EVM results fall with in the identified ranges

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Unilateral Contract – Purchase Order. Single source seller – Only one seller the company wants to do the business with. Letter of intent – An organization intended to buy from a seller Proposal – Does not list the price to complete the work, but instead offers solutions to the buyer for completing the project needs. IFB – Invitation for Bid – Typically a request for sealed document that lists the seller’s firm price to complete the detailed work. RFP – Request for Proposal – Documents from Buyer to seller requesting information on completing the work RFI – Request for Information – Documents from Buyer to seller requesting information on completing the work Letter Contract – Use this for immediate work NPV – Net Present Value – NPV assumes reinvestment at the cost of capital – (Sum of Discounted – Initial Investment) IRR – Internal Rate of return – Discounted rate when NPV = 0 – Reinvestment at the IRR rate Common source of conflict during early phases of the project – Priorities Common source of conflict during Execution phase of the project – Schedule Time and Material (T & M) – Unit price contracts Depreciation Types – Straight Line depreciation, Accelerated Depreciation (Sum of Year’s digit and Double declining balances) Sunk Costs – These are all costs incurred prior to a decision point / Monies that have been spent on the project. Opportunity Costs - Based on net present value, this is what you give up because you did not select an alternate use for the money you are going to spend. Suppose you have your money invested at 6 percent in a money market fund. If an alternate opportunity comes along that promises a higher yield, then the opportunity cost of the new investment is 6 percent. After all of the calculations to justify the project, it still has to beat 6 percent to be viable. If it seems a little simplistic, that's because it is! PERT – Program Evaluation and Review Technique – Used where uncertainty in the duration of the activities. SD – (Pessimistic – Optimistic) / 6 EV – Expected Value = (O + 4M + P) / 6 Variance – (SD)2 1 SD – 68.26 2 SD – 95.44 3 SD – 99.73 6 SD – 99.99 Free Float - This is the total time a single activity can be delayed without delaying the early start of any successor activities. Total Float - This is the total time an activity can be delayed without delaying project completion. Project Float - This is the total time the project can be delayed without passing the customer-expected completion date.

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Steps to find the SD for a total project o Find EV for each activity and Sum all o Find the SD by (P – O) 6 formula o Square the SD calculated in the previous step - Variance o Sum all the SD squared o Find Square root of the previous step’s value – This is the SD for the Project CPM & PERT – Not considers the resource availability, that is why resource leveling heuristics will come into picture Risk Mitigation – Is an effort to reduce the probability or impact of the risk to a point where the risk can be accepted. Contingency Budget – This money is not assigned to specific project tasks and is set aside and available to fund the work that must be done if and when a risk occurs – Required the Project manager approval Management reserve – Is similar to the contingency budget in that it is made available to fund unknown risks when they occur. In order to prevent the inappropriate use of this budget, a person at a level above the project manager level must approve the use of these funds. Risk Analogy – If rain is the risk o Avoidance – Don’t go outside, so that we never become wet o Transfer – Hire another party, so that he will go wet instead of you o Mitigation – Take an Umbrella o Acceptance – Go wet Expected Value = Risk Probability x Risk Impact Least conflict in Implementation Phase – Conflict over personality Issues Chart of Accounts – Any numbering system that is used to monitor project costs by category such as labor, supplies, or materials etc., Net Cash Flow = Cash Flow In – Cash Flow Out Blanket Order – The price is based on the goods or services that will be sold over the period of the blanket order. The seller has a long-term order from the buyer and can invest in the means of production. The buyer has a stable price for the period of the blanket order. If the buyer does not buy all the goods or services that were promised, the price per unit is adjusted at the end of the contract. Since the inventory is delivered as needed, the inventory carrying cost is of no consequence to the buyer. Forward Buying – The amount of goods required for a long period of time is purchased and delivered at one time. There is a quantity discount for this type of purchase, but it has no effect on capital investment unless it would be to build a place to store the goods. It will decrease transportation cost, increase inventory, prevent the risk of future price increases, and increase the cost associated with obsolescence. RFB – Request for Bid – used when source selection will be price driven RFP – Request for Proposal – Solution Driven Staffing Plan – The functional manager must have a staffing plan that allows him or her to know where the people in the functional organization are committed. Theory X – Type X managers think that all people are basically lazy and that unless they are threatened or in some way forced to do work, they will not do any work.

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These managers direct work to be done and do not allow very much participation in any decision making, because they feel that the participation by the workers would only lead to less work being done. Useful for Extremely difficult project like in military etc., Theory Y – Type Y managers believe that people will do a good job for the sake of doing it. They believe in participative management and sharing information with the workers. These managers will also listen to problems that are brought up by their staff. Ouchi’s Theory Z – Stats that workers need to be involved with the management process. General Management Skill – Leading, Communicating, Negotiating, Problem Solving, Influencing Marginal Analysis – Marginal analysis studies the cost of the incremental improvements to a process or product and compares it against the increase in revenue made from the improvements. For example, the price of the added feature may cost the company $7.50 per unit, but the amount of gained sales per year because of the improvement will meet or exceed the cost of the improvement. Attribute Sampling – Measure conformance to quality on a per unit basis Variable Sampling – Measure conformance to quality as a whole Random Causes – Determine expected variances of quality Special Causes – Determine anomalies to quality Goldratt’s Critical Chain Theory – Add buffer to the critical chains Product scope measured against the Requirements Project scope measured against the Project Plan Law of diminishing returns – At some point in the work, the “duration to effort ratio” becomes saturated, and adding additional laborers will actually become counterproductive. Informal Communication – Ad hoc conversations, Memos Bulls eye – Communication between PM to Management when variance crosses some level Code of Accounts – Any numbering system to uniquely identify each component of the WBS Claim – A request, demand, or assertion of rights by a seller against a buyer, or vice versa, for consideration, compensation, or payment under the terms of a legally binding contract, such as for a disputed change. Process Groups – Initiation, Planning, Executing, Controlling and Closing Knowledge Areas – Common Cause – Random Cause – A source of variation that is inherent in the system and predictable. On the control chart, it appears as part of the random process variation (i.e., variation from a process that would be considered normal or not unusual), and is indicated by a random pattern of points within the control limits. Special Cause – A source of variation that is not inherent in the system, is nor predictable, and is intermittent. It can be assigned to a defect in the system. On a control chart, points beyond the control limits, or non-random patterns within the control limits, indicate it.

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Control – Comparing actual performance with planned performance, analyze variance, assessing trends to effect process improvements, evaluating possible alternatives, and recommending appropriate corrective action as needed. Control Account – Where scope, budget, actual cost, schedule are integrated and compared to earned value for performance measurement. CAP – Cost Account Plan – All the work to be done for Control Account. COQ – Cost of Quality o Prevention & Appraisal  Quality Planning  Quality Control  Quality Assurance (Training etc.,) o Failure costs  Rework  Components  Cost of warranty  Wastage  Loss of reputation etc., CPI = EV / AC CPF / CPPC – Cost-plus-Fee / Cost-plus-percentage-cost – Cost and a fee (% of costs), which varies from With respect to Actual Cost. CPFF – Cost-plus-fixed-fee – Cost and a Fixed fee CPIF – Cost-plus-incentive-fee – Cost and a incentive fee (seller earns profit, if it meets the performance) Direct Costs – Costs incurred for exclusive benefit of the project o Salaries of full time project staff Indirect Costs – Generally calculated as % of direct costs o Overhead costs o General and administrative costs o Cost of doing business  Salaries of mgmt indirectly involved in the project  Utilities CV = EV – AC Critical Activity – Any activity on the Critical Path Critical Chain Method – A schedule network analysis technique that modifies the project schedule to account for limited resources Data Date – As-of date or time-now date Develop Project Team – The process of improving the competencies and interactions of team members to enhance project performance. EVM – Earned Value Management – Integrate the Scope, Schedule and Resources for performance measurement Effort – Number of labor units required to complete a schedule activity or WBS component. Duration – Number of work periods required to complete a scheduled activity or WBS component.

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Exception Report – Document that includes only major variations from the plan. FMEA – Failure Mode and Effect Analysis – An analytical procedure in which each potential failure mode in every component of a product is analyzed to determine its effects on the reliability of that component and, by itself or in combination with other possible failure modes, on the reliability of the product for all ways that a failure may occur. For each potential failure, an estimate is made of its effects on the total system and of its impact. In addition, a review is undertaken of the action planned to minimize the probability of failure and to minimize its effects. FFP – Firm-fixed-price – Firm Fixed amount FPIF – Fixed-price-incentive-fee – Fixed price + Fee (if seller meets the project objectives) Fixed Price or Lump-Sum Contract – Fixed Fee. It may also include incentives for meeting or exceeding the project objectives Ground Rules – A list of acceptable and unacceptable behaviors adopted by a project team to improve working relationships, effectiveness, and communication. Imposed Dates o Start no earlier than o Finish no later than Lag – Plus (+) Lead – Minus (-) Lowest Qualified Bidder – A contracting process in which the lowest bid is accepted after meeting the minimum qualifications Management by Exception – A management technique that emphasizes attention to performance behavior that falls outside of some predetermined range of normal or expected outcomes. This technique is characterized by containment and conservatism. Master Schedule – A summary-level project schedule that identifies the major deliverables and WBS components and key schedule milestones. Methodology – A system of practices, techniques, procedures, and rules used by those work in a discipline. Milestone Schedule – A summary level schedule that identifies the major schedule milestones. Near Critical Activity – A schedule activity with low total float. Network Open end – A schedule activity with out any predecessor or successor activities. Objective o A strategic position to be attained o Purpose to be achieved o A result to be obtained o A product to be produced o A service to be performed Path Convergence – Merging of parallel schedule network paths into the same node in the project schedule network diagram. Many predecessors for an Activity Path Divergence – Many successors for an activity. Opposite to Path convergence

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PMB – Performance Measurement Baseline – An approved integrated scopeschedule-cost plan for the project work against which project execution is compared to measure and manage performance. Technical and Quality may also be included Performance Reporting o Status Reporting o Progress Measurement o Forecasting Plan Contracting – The process of documenting the products, services, and results requirements and identifying potential sellers. Planning Package – A WBS component below the Control account with known work content but without detailed schedule activities. Portfolio – Collection of Projects/Programs grouped together to facilitate effective mgmt of that work to meet the strategic business objectives. Mitigation – Preventive Action Procedure – A series of steps followed in a regular definitive order to accomplish something Process – A set of interrelated actions and activities performed to achieve a specified set of products, results or services Procurement Documents o IFB o Invitation for negotiations o RFI – Request for various pieces of information related project o RFQ – Price quotations for standard products/items o RFP o Seller responses Project life cycle is a subset of Product life cycle Product scope – The features and functions that characterize a product, service or result Project – A temporary endeavor undertaken to create a unique product, service, or result Project Life Cycle – Sequence of Phases Project Phases – Collection of logically related project activities o Generally Completed in sequence, may overlap o Project phase is not a Project management Process group Project Scope o Major deliverables o Project objectives o Project assumptions o Project Constraints o Statement of Work o Justification Punchlist – The items remaining to be completed after a final inspection Quantitative Risk Analysis – The process of numerically analyzing the effect on overall project objectives of identified risks

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Total Float in Resource-Limited Schedule – Late Finish Date of CPM – Resourcelimited finish date Retainage – A portion of contract payment that is withheld until contract completion to ensure full performance of the contract terms Rolling Wave Planning – A form of progressive elaboration planning where work to be accomplished in the near term is planned in detail at a low level of the work breakdown structure, while the work far in the future is planned at a relatively high level of WBS Schedule compression – Shortening the project schedule duration without reducing the scope SPI = EV/PV Scope changes – A scope change almost always requires an adjustment to Project Cost or schedule. Scope Creep – Adding features and functionality without addressing the effects on time, costs and resources, or without customer approval Sensitivity Analysis – Used to help determine which risks have the most potential impact on the project by keeping all other uncertain elements at their baseline value. Should-Cost Estimate – An estimate of the cost of a product or service used to provide an assessment of the reasonableness of a prospective seller’s proposed cost. SMCI – Standardize, Measure, Control, and Improve Solo source – A type of procurement where only one supplier is asked to bid. Specification Limits – These are on either side of the mean, of the data plotted on a control chart meets the customer’s requirements for a product or service. This area may be greater than or less than the area defined by the control limits ___________________________________ ----------------------------------------------------================================ ----------------------------------------------------____________________________________ Upper Specification Limit Upper Control Limit Mean Lower Control Limit Lower Specification Limit

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Subnet / Fragment – A subdivision of a project schedule network diagram, usually representing a subproject or a work package Three-Point Estimate – Estimate using Optimistic, Most Likely and Pessimistic Threshold – A cost, time, quality, technical, or resource value used as a parameter, and which may be included in product specifications. Crossing the threshold should trigger some action, such as generating an exception report. Tight Matrix – A system in which each project has an assigned work area, and employees sit together in that area while they are working on the project, even through they do not report to the same supervisor Time & Material – It is a hybrid of Fixed price and Cost reimbursement

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o Cost Reimbursement – Because full value of the contract is not known at the time of award and have no definitive end o Fixed price – Unit rates are preset by the buyer and seller TCPI – To complete performance index o (BAC – EV) / (BAC – AC) o Remaining work / Remaining Budget Toolbox meeting – A regular meeting of field supervisors and workers to review important work issues; particularly those pertaining to safety TQM – Total quality management – A common approach to implementing a quality improvement program within an organization. Trait – A distinguishing feature of the person’s character Triggers – Risk symptoms – Warning signs Triple Constraint – Scope, Cost and Time Two-Envelop system – It has two phases o Firms qualification o Pricing Value Engineering – A creative approach used to optimize project life cycle costs, save time, increase profits, improve quality, expand market share, solve problems, and/or use resources more effectively VAC = BAC – EAC Variance Threshold – A predetermined range of normal outcomes that is determined during the planning process and sets the boundaries within which the team the team practices management by exception Voice of customer – A planning technique used to provide products, services, and results that truly reflect customer requirements by translating those customer requirements into appropriate technical requirements for each phase of the project product development War Room – A room used for project conferences and planning, often displaying charts of cost, schedule status, and other key project data WBS o A deliverable-oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives o Total Scope of the project o Each descending level will provide the detailed information o Decompose till Work Packages o Both Internal deliverables and External Deliverables WBS Directory – A document that describes each component of WBS and include for each WBS component o Brief description of the scope / SOW o Defined deliverables o List of associated activities o List of Milestones o Responsible organization o Start and End Dates

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o Resources Required o Estimate of Cost o Charge Number o Contract information o Quality Requirements o Technical references Reassignment Plan – A reassignment plan improves morale because resources know their next assignment prior to the conclusion of their activity or scheduled end date on the project. Crosby – Zero Defect Juran – Fit for use Deming – 85% of cost of quality is management problem Distribution – Represents the Probability and Impact of the risk to the project objectives Performing Stage – Self actualization Stage Fait accompli tactics – One party claims the issue under discussion has already been decided and can’t be changed. Budget updates  leads to cost rebaselining Scope change – Any changes to the agreed-upon WBS Product scope change leads to  Project scope change Scope changes leads to  Schedule Revisions, but not always Schedule variance of critical path activities will affect the project schedule and need corrective action. When revisions are necessary  establish a new schedule baseline Budget Updates – The cost baseline is changed as a result of budget updates to reflect the new cost estimates. Significant updates to budget leads to rebaselining Contract Closeout – Do the following o Completing and settling the terms of the contract o Work described in the contract was completed accurately and satisfactorily o Product Verification o Formal acceptance notice to seller Procurement audit o used for lessons learned o It examines the procurement process for areas of improvements (from Procurement Planning to Contract Administration) o Used by buyer & seller, as an opportunity for improvements Contract file o Indexed for easy reference o Which in turn store in project archives (Administrative Closure) Administrative Closure o At the end of each phase / At the end of the project o Verifies and documents the project outcome Product Documentation o Requirement documents

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o Specifications o Plans o Technical documents o Electronic files o Drawings etc., Project Archives (Administrative Closure) o Performance Management Documentation o Product Documentation o Other Documents o Contract documents (contract file, which is output from Contract Closure) o Electronic Database o Electronic Documents o Should be Indexed Project Closure & Formal acceptance o Verifying the product of the project that meets all the requirements o Obtain formal acceptance o Kicks off the warranty period Post-implementation audits – Examine the project from beginning to end and look at what went right and what went wrong Decomposition Steps o Identify Major Deliverables o Decide if adequate cost and duration estimates can be developed o Identify constituent components of the deliverables o Verify the correctness of decomposition WBS Updates  also called refinements Learning Curve – The cost per unit decreases the more units workers complete, this is because workers learn as they complete the required work. Variable Costs – Costs that vary depending on the conditions within the project Fixed Costs – Costs that remain the same throughout the project Communication Channels – N(N-1) / 2 Marginal Analysis – The cost of the incremental improvements to a process or product and compares it against the increase in revenues made from the improvements. Assignable Cause - When a value is out of control (in control charts). Project Records o Memos o Correspondence o E-mails o Other project relevant information Project Reports – Formal communications on o project activities o Status o Conditions

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o Management o Customers o Policies Project Presentation – Useful in providing information to o Customers o Management o The project Team o Other stakeholders Project life cycle – Collectively the project phases – Serves to define beginning and end of the project Project phase – Dividing the project to improve management control and provide for links to ongoing operations Strategic Plan o Program  Project • Phase – Conclusion marked by a review of key deliverables and project performance to date. These reviews are called phase exits, stage gates, or kill points o Deliverable Phase sequencing – Generally involves some form of technology transfer or handoff o Requirements  Design o Construction  Operations o Design  Manufacturing etc., Product Life Cycle o Project Life Cycle – subset of Product life cycle  Subproject Life Cycle Managing stakeholder expectations may be difficult because stakeholders often have very different objectives that may come into conflict. Differences between stakeholders will be resolved in favor of customer. High Risk taking organizations  Aggressive, Entrepreneurial PMO – Providing support functions to project managers in the form of training, software, templates etc., to actually being responsible for the results of the project. General Management skills o Finance & accounting o Sales & Marketing o Research & Development o Manufacturing & Distribution o Strategic Planning o Tactical Planning o Operational Planning o Organizational Structures o Organizational behavior o Personnel administration

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o Compensation o Benefits o Career Paths o Motivation o Delegation o Supervision o Team Building o Conflict Management o Personal Time Management o Stress Management Leadership o Project o Technical o Team Negotiating o Arbitration o Mediation Internationalization o Time zones differences o National & regional Holidays o Travel Requirements o Face-to-Face meetings o Logistics of teleconferencing o Volatile Political differences Processes – A series of actions bringing about a result o Project management processes o Product oriented processes Project Management Software o Aids integration within a project Project management Methodology o Hard tools  Project Management Software o Soft tools  Meetings etc., Project Selection Methods – Decision Models, Calculation method Charter o Business Need o Product Description Product Analysis o Product breakdown analysis o Systems Engineering o Value Engineering o Value Analysis o Function Analysis o Quality function deployment

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Alternative Identification o Brainstorming o Lateral Thinking Project Objectives – Quantifiable criteria that must be met for the project to be considered success. Must include o Cost o Schedule o Quality Scope Management Plan – Include the following o Expected Stability o Identification & Classification Decomposing the deliverables will give the following advantages – Critical to project success o Improve accuracy of coat, duration, and resource estimate o Define baseline for performance measurement and control o Clear responsibility assignment Product Documentation o Plans o Specifications o Technical documentation o Drawings etc., Inspections o Reviews o Product reviews o Audits o Walk-throughs Mandatory Dependencies – That are inherent in the nature of the work being done (Physical Limitations) – Hard Logic Discretionary Dependencies – Best Practices – Preferred Logic, Preferential logic, Soft logic CPM – Deterministic GERT – Probabilistic PERT – Weighted average – Use when there is a uncertainty in the activity duration – also called Method of moment analysis Supporting Details (Schedule development output) includes o Resource Histograms o Alternative Schedules o Schedule contingency reserves Revisions – Changes to the schedule start and end dates Cost budgeting  It includes cost of financing Spending Plan – Cash-flow forecast – to measure disbursements Quality Management o Proprietary Approaches

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 Deming  Juran  Crosby etc., o Non proprietary  TQM  Continuous Improvement etc., Quality management plan provides o Input to Overall Project plan o Quality Control o Quality Assurance o Quality Improvement Operational Definitions – Also called Metrics In an even distribution any date in the distribution will have the same probability as any other date in the distribution Human Resources Management – Effective use of stakeholders including sponsors, customers, partners, individual contributors, and others Organizational planning  done as part of earliest project phases, but should review regularly throughout the project to ensure continued applicability Technical Interfaces o Within the Phases o Between the phases Constraints (Organizational Planning inputs) o Organizational Structure o Collective bargaining agreements – Contractual agreements with unions or employee groups may require certain roles or reporting relationships o Preferences of the project management Team – if the members of project management team have had success with certain structures in the past, then they are likely to advocate similar structure in the future o Expected staff assignments – How the project is organized is often influenced by the competencies of specific individuals Templates (Organizational Planning T&T) – Use the following from earlier projects o Roles and responsibility definitions o Reporting Relationships Staffing management Plan – Include o When and how human resources will be bought onto and taken off of the project team o Resource Histograms o Particular attention should be paid to how project team members will be released when they ate no longer needed on the project  Reduce cost by reducing or eliminating the tendency to “make work” to fill the time between this assignment and the next  Improve morale by reducing or eliminating the uncertainty about the future employment opportunities Supporting details (Organizational Planning output)

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o Organizational Impact o Job descriptions – Position descriptions o Training Needs Characteristics of potential available staff members o Previous Experience o Personal Interests o Personal Characteristics o Availability o Competencies & Proficiency Individual development (managerial & Technical) is the foundation necessary to develop the team Team development often complicated when team members are accountable to both a functional manager and the project manager. Effective management of this dual reporting relationships is often a critical success factor for the project, and is generally the responsibility of the Project Manager Team Development occurs through out the project War room – Where the team congregates and posts schedules, updates etc., Direct & indirect costs for training are generally paid by the performing organization Communications planning is done as part of the earliest project phases. However, the results of this process should be reviewed regularly throughout the project and revised as needed to ensure continued applicability Communication Technology influencing factors o The immediacy of the need for information o The availability of technology o Expected staff assignments o The length of the project Responsibilities of Sender o Making the information clear, unambiguous, and complete, so that the receiver can receive it correctly o Conforming that it is properly understood Responsibilities of Receiver o Making sure that information is received in its entirety and understood correctly Project Records o Correspondence o Memos o Documents describing the project etc., Project Reports – Formal project reports on the project status and/or issues Performance Reporting – How resources are being used to achieve project objectives. Generally provide information on Scope, Schedule, Cost, and Quality. (Also Risk and Procurement). Reports can be prepared comprehensively or on an exception basis EV Analysis – Integrates Scope, Cost (or Resources) and Schedule. Common formats of performance reports o Bar Charts (also called Gantt Chart)

o S-Curve – Display cumulative EV Analysis data o Histograms o Tables Administrative Closure functions o Collecting Project records o Ensure they reflect final specifications o Analyzing project success o Effectiveness o Lessons Learned o Arching the information for future use o Perform at the end of every phase and at the end o Update the skills in the staff pool database Project Closure (Administrative Closure output) o Customer formally accepted the project results, and deliverables o Requirements of the performing organization (Staff evaluations, Budget Reports, Lessons learned) Risk Management Plan includes the following o Methodology o Roles and Responsibilities o Budgeting o Timing o Scoring Interpretation o Thresholds o Reporting Formats – Describes the content and format of the risk response plan. o Tracking – Document all facets of risk activities will be recorded for the benefit of the current project, future needs, and lessons learned. Documents if and how risk processes will be audited Risk Categories o Technical, Quality or Performance o Project Management Risks o Organizational Risk o External Risks Information gathering techniques o Brainstorming o Delphi technique o Interviewing o SWOT Analysis Diagramming Techniques o Cause-and-effect o Flow charts o Influence Diagram Simulation

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o Cost risk Analysis – Use WBS o Schedule risk Analysis – Use PDM Contested Changes – Changes that can not be agreed upon in a Contract Needs Analysis – Feasibility Study Most organizations have documented policies and procedures specially defining who can sign such agreements on behalf of the organization, typically called a delegation of procurement authority

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