Tuesday, December 25, 2012

Happy Holidays

Happy Holidays everyone!
So, my course is finished this weekend. I hope I did well... I am waiting for the final results. Anyhow, I plan to study on my own starting from January first, so I can write this exam in Summer.

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Friday, October 12, 2012

Project Communication Plan

This plan comprises of:

What information needs to be collected
and when?
Who will receive the information?
What methods will be used to gather
and store information?
What are the limits, if any, on who has access to certain kinds of information?
When will the information be communicated?
How will it be communicated?



Information Needs are:

Project status reports
Deliverable issues
Changes in scope
Team status meetings
Gating decisions
Accepted request changes
Action items
Milestone reports


Developing A Communication Plan:

1.Stakeholder analysis
2.Information needs
3.Sources of information
4.Dissemination modes
5.Responsibility and timing






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Wednesday, October 10, 2012

Responsibility Matrices


Responsibility Matrix (RM)
Also called a linear responsibility chart.
Summarizes the tasks to be accomplished and who is responsible for what on the project.
Lists project activities and participants.
Clarifies critical interfaces between units
and individuals that need coordination.
Provide an means for all participants to view their responsibilities and agree on their assignments.
Clarifies the extent or type of authority that
can be exercised by each participant.














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Saturday, October 6, 2012

Costs

Types of Costs


Direct Costs
Costs that are clearly chargeable
to a specific work package.
Labor, materials, equipment, and other
Direct (Project) Overhead Costs
Costs incurred that are directly tied to an identifiable project deliverable or work package.
Salary, rents, supplies, specialized machinery
General and Administrative Overhead Costs
Organization costs indirectly linked to a specific package that are apportioned to the project
Reasons for Adjusting Estimates
Interaction costs are hidden in estimates.
Normal conditions do not apply.
Things go wrong on projects.
Changes in project scope and plans.
Adjusting Estimates
Time and cost estimates of specific activities are adjusted as the risks, resources, and situation particulars become more clearly defined.

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Friday, October 5, 2012

Apportion Method of Allocating Project Costs Using the Work Breakdown Structure


Top-Down and Bottom-Up Estimates


Level of detail is different for
different levels of management.
Level of detail in the WBS varies
with the complexity of the project.
Excessive detail is costly.
Fosters a focus on departmental outcomes
Creates unproductive paperwork
Insufficient detail is costly.
Lack of focus on goals
Wasted effort on nonessential activities


Bottom-Up Approaches for Estimating Project Times and Costs


Template methods
Parametric procedures applied to specific tasks
Range estimates for
the WBS work packages
Phase estimating: A hybrid

Top-Down Approaches for Estimating Project Times and Costs


Consensus methods
Ratio methods
Apportion method
Function point methods for software and system projects
Learning curves

Top-Down versus Bottom-Up Estimating


Top-Down Estimates
Are usually are derived from someone who uses experience and/or information to determine the project duration and total cost.
Are made by top managers who have little knowledge of the processes used to complete the project.
Bottom-Up Approach
Can serve as a check on cost elements in the WBS
by rolling up the work packages and associated cost accounts to major deliverables at the work package level.


Estimating Projects: Preferred Approach

Make rough top-down estimates.
Develop the WBS/OBS.
Make bottom-up estimates.
Develop schedules and budgets.
Reconcile differences between top-down
and bottom-up estimates







Thursday, October 4, 2012

PERT—Program Evaluation Review Technique


Assumes each activity duration has a range that statistically follows a beta distribution.
Uses three time estimates for each activity: optimistic, pessimistic, and a weighted average to represent activity durations.
Knowing the weighted average and variances for each activity allows the project planner to compute the probability of meeting different project durations.





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Benefits of a Change Control System


1.Inconsequential changes are discouraged
by the formal process.
2.Costs of changes are maintained in a log.
3.Integrity of the WBS and performance measures
is maintained.
4.Allocation and use of budget and management reserve funds are tracked.
5.Responsibility for implementation is clarified.
6.Effect of changes is visible to all parties involved.
7.Implementation of change is monitored.
8.Scope changes will be quickly reflected in baseline and performance measures.



Risk - Change Control System Process


1.Identify proposed changes.
2.List expected effects of proposed changes
on schedule and budget.
3.Review, evaluate, and approve or disapprove
of changes formally.
4.Negotiate and resolve conflicts of change, condition, and cost.
5.Communicate changes to parties affected.
6.Assign responsibility for implementing change.
7.Adjust master schedule and budget.
8.Track all changes that are to be implemented

Risk Management Benefits


A proactive rather than reactive approach.
Reduces surprises and negative consequences.
Prepares the project manager to take advantage
of appropriate risks.
Provides better control over the future.
Improves chances of reaching project performance objectives within budget and on time.


Step 1: Risk Identification
Generate a list of possible risks through brainstorming, problem identification and risk profiling.
Macro risks first, then specific events

Step 2: Risk Assessment
Scenario analysis for event probability and impact
Risk assessment matrix
Failure Mode and Effects Analysis (FMEA)
Probability analysis
Decision trees, NPV, and PERT
Semiquantitative scenario analysis


Failure Mode and Effects Analysis (FMEA)
Impact × Probability × Detection = Risk Value



Step 3: Risk Response Development
Mitigating Risk
Reducing the likelihood an adverse event will occur.
Reducing impact of adverse event.
Avoiding Risk
Changing the project plan to eliminate the risk or condition.
Transferring Risk
Paying a premium to pass the risk to another party.
Requiring Build-Own-Operate-Transfer (BOOT) provisions.
Retaining Risk
Making a conscious decision to accept the risk.



Contingency Plan
An alternative plan that will be used if a possible foreseen risk event actually occurs.
A plan of actions that will reduce or mitigate the negative impact (consequences) of a risk event.
Risks of Not Having a Contingency Plan
Having no plan may slow managerial response.
Decisions made under pressure can be potentially dangerous and costly.

Opportunity Management Tactics


Exploit
Seeking to eliminate the uncertainty associated with an opportunity to ensure that it definitely happens.
Share
Allocating some or all of the ownership of an opportunity to another party who is best able to capture the opportunity for the benefit of the project.
Enhance
Taking action to increase the probability and/or the positive impact of an opportunity.
Accept
Being willing to take advantage of an opportunity if it occurs, but not taking action to pursue it.






Contingency Funds
Funds to cover project risks—identified and unknown.
Size of funds reflects overall risk of a project
Budget reserves
Are linked to the identified risks of specific work packages.
Management reserves
Are large funds to be used to cover major unforeseen risks (e.g., change in project scope) of the total project.
Time Buffers
Amounts of time used to compensate for unplanned delays in the project schedule.
Severe risk, merge, noncritical, and scarce resource activities


Step 4: Risk Response Control
Risk control
Execution of the risk response strategy
Monitoring of triggering events
Initiating contingency plans
Watching for new risks
Establishing a Change Management System
Monitoring, tracking, and reporting risk
Fostering an open organization environment
Repeating risk identification/assessment exercises
Assigning and documenting responsibility for managing risk


Sources of Change
Project scope changes
Implementation of contingency plans
Improvement changes









Wednesday, October 3, 2012

Estimating Projects

Estimating Projects 

Estimating
The process of forecasting or approximating the time and cost of completing project deliverables.
The task of balancing expectations of stakeholders and need for control while the project is implemented.
Types of Estimates
Top-down (macro) estimates: analogy, group consensus, or mathematical relationships
Bottom-up (micro) estimates: estimates of elements
of the work breakdown structure


Importance of Estimating Time and Cost-

To support good decisions.
To schedule work.
To determine how long the project should take and its cost.
To determine whether the project is worth doing.
To develop cash flow needs.
To determine how well the project is progressing.
To develop time-phased budgets and establish the project baseline.





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Tuesday, October 2, 2012

WBS

* This breakdown groups work packages by type of work within a deliverable and allows assignment of responsibility to an organizational unit. This extra step facilitates a system for monitoring project progress

 WBS
Facilitates evaluation of cost, time, and technical performance of the organization on a project.
Provides management with information appropriate
to each organizational level.
Helps in the development of the organization breakdown structure (OBS). which assigns project responsibilities to organizational units and individuals
Helps manage plan, schedule, and budget.
Defines communication channels and assists
in coordinating the various project elements.
Organizational Breakdown Structure (OBS)
Depicts how the firm is organized to discharge its work responsibility for a project.
Provides a framework to summarize
organization work unit performance.
Identifies organization units responsible
for work packages.
Ties the organizational units
to cost control accounts.