Project Life Cycle customer interface project execution complete the project objectives

Chapter 1: Modern Project

- Provides direction, management - Managing the interface 4. Implement strategies
Management
coordination, and integration Integrated Management of between the project and through projects
What is a project? to the project team Projects external environment
- Is responsible for - Primary goal: profit  not
Definition: a temporary performance and success of just ↑ revenue but also to ↓
endeavour undertaken to create the project
cost
a unique product, service, or 1. Defining - Must induce the right people
- Secondary goal: CSR,
result - Very important but does at the right time to address
sustainability
It is a non-routine, one-time not require so much the right issues and make the
effort limited by time, resources manpower right decisions
and performance specifications - Goals/objectives are Current drivers of Project
designed to meet customer established Management
needs. Factors leading to the increased Characteristics of Objectives
- Specifications are defined Chapter 2: Organization
use of project management: SMART Goals
- Tasks Strategy and Project Selection
Characteristics of a project: 1. Specific: in targeting objective
- Responsibilities 1. Knowledge explosion (↑ Why Project Managers need to
1. An established objective 2. Measurable: indicator(s) of
2. Planning complexity)  need to understand Strategy
2. Something that has not been progress
- Level of effort increases integrate divergent - Must respond to changes
done before – requires 3. Assignable: to one person for
- Plans are developed to technologies with appropriate decisions
solving previously unsolved Alignment of Projects with completion
determine what the project 2. Compression of product life about future projects and
problems and using Organizational Strategy 4. Realistic: can be done with
will entail cycle: speed becomes a adjustments to current
breakthrough technology available resources
- Schedules, Budgets, competitive advantage Problems resulting from projects
3. Defined life span with a 5. Time related: when objective
Resources, Risks, Staffing 3. Triple bottom line uncoordinated project - Understanding their
beginning and an end can be achieved à duration
3. Executing (sustainability – planet, management systems: organisation’s strategy à
4. Cross/beyond organization Need for Project Priority
- Major portion of the people, profit) - Projects that do not support become effective advocates
participation – involvement System
project work takes place – 4. ↑ customer focus: organization’s overall of projects aligned with firm’s
of several departments and both physical and mental
developing customized strategic plans and goals mission à can convince Implementation Gap
professionals - Usually outsourced to the
products and services and - Independent managerial customers better - Lack of understanding and
5. Specific time, cost, and professionals
sustaining lucrative decisions  create internal Strategic Management Process consensus on strategy among
performance requirements - The bigger, the more
relationships with imbalances, conflicts and top management and middle-
manpower is required Strategic Management:
Program vs. Project customers confusion resulting in level (functional) managers
- Status reports - Requires every project to be
5. Small projects represent dissatisfied customers who independently
- Changes clearly linked to strategy
Program: big problems: small - Failure to prioritize projects implement the strategy
- Quality - Provides theme and focus of
- A group of related projects projects carry same or à waste of resources on non- Organization Politics
- Forecasts firm’s future direction
designed to accomplish a more risk as big projects value-added - Project selection is based on
4. Closing  Responding to changes
common goal over an and can represent hidden activities/projects the persuasiveness and
- Delivering project product: in external environment
extended period costs power of people advocating
train customer Project Management Today: – environmental
Program Management: projects
- Transfer documents Project Governance Socio-Technical Approach scanning
- Process of managing a group Resource Conflicts and
- Redeploying project Integration (or centralization) of Technical Dimension  Allocating scarce
of ongoing, interdependent, Multitasking
resources: release project management provides (“Science”) resources of firm to
related projects in a - Multiproject environment
resources senior management with: - Formal, disciplined, purely improve its competitive
coordinated way to achieve creates interdependency
- Evaluation - Overview of all project logical parts of the process position – internal
strategic objectives relationships of shared
- Post-project review: management activities - Planning, scheduling, and responses to new
Project is a subset of a program resources which results in the
Lessons learned - Big picture of how controlling projects programs
starting, stopping and
organizational resources are - Requires strong links among
Routine Work vs. Projects Challenge of Project restarting of projects
used mission, goals, objectives,
Management Sociocultural Dimension (“Art”) strategy
- Risk assessment of their Benefits of Project Portfolio
Project Manager: - Involves contradictory and
portfolio of projects Four activities of strategic Management
Routine, Repetitive work: - Manages temporary, non- paradoxical world of
- Rough metric of firm’s management process: 1. Builds discipline into
- can be replaced by repetitive activities and implementation
improvement in managing 1. Review and define project selection process
computer/machines  frequently acts - Centres on creating a
projects relative to others in organizational mission 2. Links project selection to
become obsolete independently of the formal temporary social system
the industry  so that 2. Set long-range goals and strategic metrics
Projects: organization within a larger organizational
company does not lag behind objectives 3. Prioritizes project proposals
- give more meaning to tasks - Marshals resources for the environment that combines
- Linkages of senior 3. Analyse and formulate across a common set of
project the talents of a divergent set
management with actual strategies to reach criteria, rather than on
- Is linked directly to the of professionals working to
 politics or emotion - Ignores time value of money 6. Prevent government a project is selected - Profits more normal 
4. Allocates resources to - Assumes cash inflows for intervention and regulation Sources and Solicitation of stabilise revenue
projects that align with investment period only Multi-Criteria Selection Models Project Proposals 2. Pearls
strategic direction - Does not consider - Restricting proposals from - Represent revolutionary
5. Balances risk across all profitability Checklist Model specific levels or groups commercial opportunities Advantages
projects - Uses list of questions to within the organization  using proven technical - Flexibility: can be temporarily
6. Justifies killing projects that review potential projects and opportunity lost advances assigned to work on project
Payback period (yrs) = to determine acceptance or
do not support strategy Estimated Project Cost/Annual - Within the organization 3. Oysters and then return to normal
7. Improves communication rejection - Request for proposal (RFP) - Involve technological work
Savings - Allows great flexibility in
and supports agreement on from external sources breakthroughs with high - No structural change
Net Present Value (NPV) Model selecting among many
project goals (contractors and vendors) commercial payoffs - In-depth expertise
- Uses management’s different types of projects
Portfolio Management System Ranking Proposals and 4. White Elephants - Easy post-project transition
minimum desired rate-of- - Easily used across different
Design Selection of Projects - Showed more promise at Disadvantages
return (discount rate) to divisions and locations
- Classification of a project - Prioritizing requires one time but are no longer - Lack of focus: each functional
compute present value of all - Fails to answer relative
- Selection criteria depending discipline, accountability, viable unit has its own core routine
net cash inflows importance or value of a
upon classification responsibility, constraints, Recommendation work to do
+ve NPV: project meets desired potential project and doesn’t
- Sources of proposals reduced flexibility, loss of - Capitalise on pearls - Poor integration: concerned
rate of return and is eligible allow for comparison with
- Evaluating proposals power - Eliminate or reposition only with their segment of
for further consideration other potential projects
- Managing the portfolio of Managing the Portfolio white elephants the project and not with what
-ve NPV: project is rejected - Potential opportunity for
projects - Senior management input - Balance resources devoted is best for total project
Portfolio of projects by type power plays, politics and - Governance team (project to bread-and-butter and - Slow
other forms of manipulation
1. Compliance Projects: must
h
F Multi-Weighted office) responsibilities oyster projects - Lack of ownership: additional
be done to meet regulatory Project NPV =I 0+ ∑ t
t
Scoring Model Chapter 3: Organisation burden; motivation of people
t =1 ( 1+k )
- Uses several weighted Structures assigned to project can be
requirements; emergency
projects  result in penalties qualitative and/or Project Management Structures weak
quantitative selection criteria
if not implemented Challenges to Organising Organising Projects: Dedicated
2. Strategic Projects: to directly I 0 = initial investment (-ve since it is to evaluate project proposals Projects Project Teams
- Each criterion is assigned a
support organization outflow) - Uniqueness and short - Teams operate as separate
weight  multiplied to get
strategies  help company F t = net cash inflow for period t total weighted score for
duration of projects relative units under the leadership of
to grow (long-run mission)  to ongoing longer-term a full-time project manager
directed towards increasing k = required rate of return project organisational activities - Projectized organisation 
- Is more realistic because it - Allows for comparison of Managing the Portfolio System
revenue or market share - Multidisciplinary and cross- projects are dominant form
3. Operational Projects: to keep considers TVM, cashflow and projects with other potential functional nature of projects
Senior Management Input of business  functional
profitability projects
day to day running à so that - Provide guidance in selecting creates authority and departments are responsible
current functions will not be - Failure to pick right factors responsibility dilemmas
Nonfinancial Strategic Criteria criteria that are aligned with for providing support for its
will render screening process
affected organisation’s strategic goals Choosing an Appropriate teams
1. Corporate Image “useless”
Selection Criteria - Decide how to balance Project Management Structure Dedicated Project Team
2. Customer Perception Applying a Selection Model
- Financial models: payback, available resources among - Good system balances needs
3. Employee Wellbeing
net present value (NPV) Project Classification current projects of the project with the needs
4. Enabling Technology
- Non-financial models: - Deciding how well a strategic Government Team of the organisation
projects of strategic Reasons for supporting projects or operations project fits the Responsibilities Organising Projects: Functional
importance to the firm that do not have high profit organization’s strategy - Publish priority of every Organisation
Multi-Criteria Selection Models margin: - Most important criteria: project - Different segments of the Advantages
- Use several weighted 1. Capture larger market share project’s fit to the - Ensure that the project project are delegated to - Simple
selection criteria to evaluate 2. Make it difficult for organization strategy selection process is open and respective functional units - Fast
project proposals competitors to enter the Selecting a Model free of power politics - Coordination is maintained - Cohesive: high level of
Financial Models market - Applying a weighted scoring - Reassess organisation’s goals through normal management motivation as they share a
The Payback Model 3. Develop an enabler product, model to align projects closer and priorities channels common goal
- Measures the time the which by its introduction will with the organization’s - Evaluate progress of current - Used when interest of one - Cross-functional integration
project will take to recover increase sales in more strategic goals projects functional area dominates the Disadvantages
the project investment profitable products  ↓ number of wasteful Balancing Portfolio for Risks project or one functional area - Expensive: new management
- Uses more desirable shorter 4. Develop core technology that and Types of Projects has a dominant interest in the position; resources are
projects
paybacks will be used in next- 1. Bread-and-Butter Projects project’s success assigned on full-time basis
 Helps identify proper
- Emphasizes cash flows  key generation products - Involve evolutionary Functional Organization - Internal strife: dedicated
goals for projects
factor in business 5. Reduce dependency on improvements to current project teams become an
 Helps everyone involved
Limitations of Payback unreliable suppliers products and services entity in their own right and
understand how and why
 conflict emerges individuals can divide their departments involved) Identifying Cultural customer’s needs - what,
- Limited technological energy across multiple - Environmental complexity when, how much, where Causes of Project Trade-offs
Characteristics
expertise: limited to projects on an as-needed (no. of external inerfaces) 2. Deliverables: list of expected - Shifts in relative importance
- Study the physical
specialists assigned to the basis - Budget and time constraints measurable outputs, either of criterions related to cost,
characteristics of an
project - Strong project focus: formally - Stability of resource by stages or at final stage time and performance
organisation  shed light on
- Difficult post-project designated project manager requirements 3. Milestones: natural, parameters
who has real power, extent to
transition  coordinates and integrates The higher the levels of these which organisation is important control points,  Budget – Cost
Organising Projects: Matrix contributions of different factors, the more autonomy and internally differentiated and shows only major segments  Schedule – Time
Structure units authority the project manager how formal organisation is 4. Technical requirements: to  Performance – Scope
- Hybrid organisational - Easier post-project and project team need to be - Read about the organisation clarify either deliverables or Managing Priorities of Project
structure (matrix) is overlaid transition: specialists successful. - Observe how people interact define performance Trade-offs
on the normal functional maintain ties with their Organisational Culture within the organisation specification to ensure proper - Constraint: original
structure functional groups - Interpret stories and folklore performance parameter is a fixed
Definition requirement
 Two chains of command - Flexible: flexible utilisation of - System of shared norms, surrounding the organisation 5. Limits and exclusions: to
(functional & project) resources and expertise prevent false expectation, or - Enhance: optimising a
beliefs, values, and Implications of Organisational
 Project participants within the firm define responsibilities of criterion over others
assumptions which binds Culture for Organising Projects
report simultaneously to Disadvantages customer - Accept: reducing (or not
people together, thereby - Challenges for project
both functional and - Dysfunctional conflict: 6. Reviews with customer: to meeting) a criterion
creating shared meanings managers in navigating
project managers tension between functional avoid scope creep; counter requirement
- “personality” of organisation organisational cultures:
- Matrix structure optimises managers and project that sets it apart from other  Interacting with culture sign the document by
use of resources managers  necessary customer representatives Project Management Trade-offs
organisations and subcultures of parent
 Allows for participation mechanism for achieving 1. Provides sense of identity organisation
on multiple projects appropriate balance between Project Scope: Terms and
to its members   Interacting with project’s
while performing normal complex technical issues and Definitions
generates commitment clients or customer
functional duties unique project requirements 1. Scope Statements
2. Helps legitimise organisations
 Achieves a greater  legitimate conflic can spill - Statements of Work (SOW)
management system of the  Interacting with other
integration of expertise over to more personal levels 2. Project Charter
organisation organisations connected
and project requirements resulting from conflicting - Can contain an expanded
3. Clarifies and reinforces to the project 
agendas and accountabilities version of scope statement
standards of behaviour  suppliers, vendors, Project Priority Matrix
- Infighting: conflic and - Document authorizing
Different Matrix Form what is permissible and subcontractors,
competition for scarce project manager to initiate
1. Weak form inappropriate behaviour consulting firms,
resources and lead the project
- Authority of functional 4. Helps create social order government, regulatory
- Stressful: project participants - Brief scope description and
manager predominates Characteristics of organisation agencies, community
have at least 2 bosses items such as risk limits,
- Project manager has culture: Chapter 4: Defining the Project
- Slow: decision making can get business case, spending
indirect authority 1. Member identity Step 1: Defining the Project limits, team composition
bogged down as agreements
2. Balanced form 2. Team emphasis Scope
have to be forged across 3. Scope Creep
- Project manager sets 3. Management focus Project Scope - Tendency for the project
multiple functional groups - Before the project begins:
overall plan 4. Unit integration - Definition of end result or scope to expand over time
Right Project Management forum for clearly establishing
- Functional manager 5. Control mission of the project – a due to changing
Structure priorities  shared
determines how work to 6. Risk tolerance product or service for the requirements, expectations and avoid
be done and assignes Organisation Considerations 7. Reward criteria client/customer specifications, and misunderstandings
personnel according to - Importance of project to 8. Conflict tolerance Purposes of the Project Scope priorities - Caveat: priorities may change
standards and schedules firm’s success 9. Means versus end Statement - Results in added costs and during the course of the
set by the project - Percentage of core work that orientation - To clearly define project delays project
manager involves projects 10. Open-system focus deliverable(s) for end user
3. Strong form - Level of resources (human Step 2: Establishing Project Step 3: Creating the Work
- To focus the project on
- Project manager has and physical) that are Priorities Breakdown Structure (WBS)
successful completion of its
broader control available - Hierarchical outline (map)
goals
- Functional departments - To be used by the project that identifies the products
Project Considerations
act as subcontractors to and work elements involved
- Size of project (no of people, owner and participants as a
the project: has title over in a project
$) planning tool and for
her people and is - Defines relationship of the
- Strategic importance measuring project success
consulted on a need basis final deliverable (the project)
- Novelty and need for Project Scope Checklist
Advantages to its sub deliverables, and in
innovation 1. Project objective: define the
- Efficient: resources shared turn, their relationships to
- Need for integration (no. of overall objective to meet
across multiple projects; work packages
- Best suited for design and for measuring success (how that the phase has been 1. Stakeholder Analysis
build projects that have well) successfully completed
tangible outcomes rather Step 4: Integrating the WBS and that the project
than process-oriented with the Organisation should move on to the
projects Organisational Breakdown next phase
Structure (OBS): Responsibility Matrices
- Depicts how the firm is Responsibility Matrix (RM)
organised to discharge its - Also called a linear
work responsibility for a responsibility chart
project - Summarizes tasks to be
 Provides a framework to accomplished and who is 2. Information needs
summarise organisation responsible for what on the  Project status reports
unit work performance project  Deliverable issues
 Identifies organisation units  Lists project activities and  Changes in scope
responsible for work participants responsible for  Team status meetings
packages each activity  Gating decisions
 Ties organisational units to  Clarifies critical interfaces  Accepted request changes
cost control accounts between units and  Action items
How WBS helps Project Step 5: Coding the WBS for the individuals that need  Milestone reports
Manager Information System coordination 3. Sources of information
- Facilitates evaluation of cost, WBS Coding System  Provide a means for all - Where the information
time, and technical - Defines: participants to view their resides and how it is
performance of the  Levels and elements of the responsibilities and agree collected
organisation on a project WBS on their assignments 4. Dissemination modes
- Provides management with  Organisation elements  Clarifies the extent or type - Database sharing programs
information appropriate to  Work packages of authority that can be to circulate information
each organisational level  Budget and cost exercised by each - Different people have
- Helps in the development of information participant immediate access to
the organisation breakdown - Allows reports to be - R: identify the committee relevant project
structure (OBS), which assigns consolidated at any level in member who is responsible information
project responsibilities to the organisation structure for coordinating efforts of 5. Responsibility and timing
organisational units and WBS Dictionary other team members - Who will send out the
individuals - Provides detailed information assigned to task and make information
- Helps manage plan, schedule, about each element in WBS sure task is completed - Timing and frequency of
and budget Process Breakdown Structure - S: members of the five- distribution appropriate to
- Defines communication (PBS) person team who will the information needs to
channels and assists in - Difficult to apply WBS to less support/assist individual be established
coordinating the various tangible, process-oriented responsible
Chapter 5: Project Time & Cost
project elements projects  projects evolve Project Communication Plan
Work Packages over time with each phase - What information needs to Estimating Projects
- Work package is lowest level affecting the next phase be collected and when?
of WBS - Process projects are driven by - Who will receive the
- Output-oriented: performance requirements information?
1. Defines work (what)  organised around phases - What methods will be used to
2. Identifies time to complete rather than deliverables gather and store information?
a work package (how long) - Checklists for phase exit - What are the limits on who
3. Identifies a time-phased requirements: has access to certain kinds of
budget to complete a work 1. Deliverables needed to information?
package (cost) exit a phase and begin a - When will the information be
4. Identifies resources needed new one communicated?
to complete a work 2. Quality checkpoints to - How will it be
package (how much) ensure that deliverables communicated?
5. Identifies a person are complete and
responsible for units of accurate
Developing a Communication
work (who) 3. Signoffs by all responsible
Plan:
6. Identifies monitoring points stakeholders to indicate
 - Padding estimates: add 7. Add a risk assessment to - Consensus method: pooled applied to specific tasks: use
padding to increase avoid surprises to experience of senior and/or per man day, per square
Estimating probability and reduce risk of stakeholders middle managers  helpful meters, times actual quantity
- Process of forecasting or being late  overstates in initial development of - Range estimates for the WBS
approximating the time and project duration and cost complete plan but sometimes work packages: high – low
cost of completing project - Organisation Culture: vary in significantly off the mark estimate  refine extremes
deliverables importance they attach to because little detailed by bringing more evaluative
- Task of balancing estimates  organisation information is gathered judgements to the estimate
expectations of stakeholders culture shapes every - Ratio methods (sometimes and potential risks
and need for control while dimension of project called parametric): used in - A hybrid: phase estimating: a
Top-Down vs. Bottom-Up
the project is implemented management concept or “need” phase of a Hybrid – a detailed estimate
Estimating
Types of estimates - Other (Non-project) Factors: project to get initial duration for the immediate phase, a
equipment down-time, Top-Down Estimates macro estimate for the
- Top-down (macro) estimates: - Are usually derived from and cost estimate
analogy, group consensus, or national holidays, legal limits, - Apportion method: closely remaining phase  used
project priority can influence someone who uses when an unusual amount of
mathematical relationships experience and/or follow past projects in
- Bottom-up (micro) estimates: resource assignment and features and costs uncertainty surrounds a
impact time and cost information to determine the project and it is impractical to
estimates of elements of the project duration and total - Function point methods for
work breakdown structure Estimating Guidelines for software and system estimate times and costs for
Times, Costs and Resources cost the entire project
- Are sometimes made by top projects: estimated using
1. Have people familiar with weighted macro variables  Range Estimating Template
managers who have little
the tasks make the weighted variables are
knowledge of the processes
Importance of Estimating Time estimate: hold people adjusted for complexity factor
used to complete the project
& Cost involved responsible for and added
- Estimates seldom represent
- To support good decisions failure to achieve estimated - Learning curves: time to
low-cost, efficient methods
- To schedule work time; build communication perform task improves with
Bottom-Up Approach
- To determine how long the channels early repetition
- Establish low-cost, efficient
project should take and its 2. Use several people to
methods Apportion Method of allocating Phase Estimating over Product
cost make estimates: people
- Can serve as a check on cost project costs using WBS Life Cycle
- To determine whether the bring different biases 
elements in the WBS by
project is worth doing better chance of being
rolling up the work packages
- To develop cash flow needs reasonable and realistic
and associated cost accounts
- To determine how well the 3. Base estimates on normal
to major deliverables at the
project is progressing conditions, efficient
work package level
methods, and a normal Top-down and Bottom-up
Factors Influencing Quality of
level of resources (not Conditions for Preferring Top- Estimates
Estimates
crashing condition): Down or Bottom-Up Time and
Simplified Basic Function Point
consensus in the Cost Estimates
Count Process for a Prospective
organisation as to what Project/Deliverable
normal conditions mean in
this project
4. Use consistent time units
in estimating task times:
Easier to estimate: Estimating Projects: Preferred Function Point Count Method
hours, minutes, seconds,
- Planning Horizon: short- etc. Approach
term; long-duration projects 5. Treat each task as - Make rough top-down
increase the uncertainty in independent, don’t estimates
estimates aggregate  does not - Develop WBS/OBS
- Make bottom-up estimates Level of Detail
- Complexity: Simple reflect the uncertainties of
- People: Doing the job; skills - Develop schedules and - Level of detail in WBS varies
individual activities and Bottom-Up Approaches for
of the people making the budgets with the complexity of the
generally results in Estimating Project Times &
estimates - Reconcile differences project, the need for control,
optimistic task time Costs
- Project Structure & between top-down and project size, cost, duration,
estimates
Organisation: Dedicated; bottom-up estimates - Template Methods: projects and other factors
6. Do not make allowances
speed gained from Top-Down Approaches for similar to the past, past - Excessive detail is costly
for contingencies 
concentrateed focus and Estimating Project Time & Costs project used as template with  Fosters a focus on
assume normal or average
localised project decisions changes made departmental outcomes
conditions
- Parametric procedures rather than on
 deliverable outcomes of all project-related (have) the least slack in
 Creates unproductive Reasons for Adjusting Estimates The Project Network activities common (least positive, 0 or
paperwork - Interaction costs are hidden - Flow chart that graphically  The shortest expected most negative, i.e. the worst)
- Insufficient detail is costly in estimates: hand-offs depicts the logical sequences, time in which the entire - Longest path through the
 Lack of focus on goals between tasks require time interdependencies, and start project can be completed activity network
 Wasted effort on and attention and finish times of the project  Delays on the critical - Shortest expected time in
nonessential activities - Normal conditions do not activities along with the path will delay which the entire project can
Types of Costs apply (resources does not longest path(s) through the completion of the entire be completed
scale linearly) network – the critical path project - Important because it impacts
Direct Costs  Provides the basis for Network Information
- Things go wrong on projects - Burst activity: an activity that completion time
- Costs that are clearly scheduling labour and
- Changes in project scope and has more than one activity - Where you put best people
chargeable to a specific work equipment
plans immediately following it on
package: labour, materials,  Enhances communication
- Overly optimistic (more than one dependency - Where you pay extra
equipment, etc. among project
- Strategic misrepresentation: arrow flowing from it) attention when doing risk
Direct (Project) Overhead Costs participants
some project promoters assessment
- Costs incurred that are Approaches
underestimate the costs of  Provides an estimate of - Where you look when other
directly tied to project - Activity-on-Node (AON)
the projects and the project’s duration managers asking to ‘borrow’
deliverables or work  Uses a node to depict an Activity-on-Node Network
overestimate project benefits  Provides a basis for people or equipment
packages: salary, rents, activity
to win approval budgeting cash flow - Where you look when you
supplies, specialised - Activity-on-Arrow (AOA)
Adjusting Estimates  Identifies activities that don’t have time to monitor all
machinery  Uses an arrow to depict
- Time and cost estimates of are critical activities
General and Administrative an activity
specific activities are adjusted  Highlights activities that Network Sensitivity
Overhead Costs as the risks, resources, and are “critical” and should
- Organisation costs indirectly - Likelihood the original critical
situation particulars become not be delayed Basic Rules to Follow in
linked to a specific package path(s) will change once the
more clearly defined  Help managers get and Developing Project Networks
that are appropriated to the project is initiated  how
stay on plan 1. Networks typically flow Determining Total Slack (TS)
project sensitive your network is
Estimating Database Templates from left to right - Amount of time an activity
- A network schedule that has
Contract Bid Summary Costs From WBS/Work Package to 2. An activity cannot begin can be delayed and not
only one critical path and
Network until all preceding delayed in the project
noncritical activities that
connected activities are - How long an activity can
enjoy significant slack would
complete exceed its early finish date
be labelled ‘insensitive’
3. Arrows indicate precedence without affecting the project
Network Diagram Error
and flow and can cross over end date or an imposed
- Illogical Loop
each other completion date
- What-if Scenario
Constructing a Project Network 4. Each activity must have a - Difference between the LS
unique identify number and ES (LS-ES=SL) or between Practical Considerations
3 Views of Cost - Collect and archive data on Terminology
5. An activity identification LF and EF (LF-EF=SL) - Network Logic Errors:
past project estimates and - Activity: an element of the
project that requires time but number must be greater Determining Free Slack (FS) conditional statements are
actuals
than that of any not permitted; looping –
- Project estimators select a may not require resources - Amount of time an activity
- Merge Activity: an activity predecessor activities attempt to return to earlier
specific work package item can be delayed after the start
6. Looping is not allowed activity
from the database for that has two or more of a longer parallel activity or
preceding activities on which 7. Conditional statements are - Activity numbering: each
inclusion activities
not allowed activity needs a unique
- Structured databases serve as it depends (more than one - How long an activity can
dependency arrow flowing 8. Use common start and stop identification code 
feedback for estimators and exceed its early finish date
nodes ascending and as simple as
as benchmarks for cost and into it) without affecting early start
- Parallel Activities: Activities possible
time for each project dates of any successor(s)
Refining Estimates Activity-on-Node Fundamentals - Use of computers to develop
Developing a Project Plan that can occur independently, - Allows flexibility in scheduling
at the same time and, if networks (and Gantt Chart):
scarce resources easy-to-understand, clear
desired, not at the same time - Only activities that occur at
- Path: a sequence of picture on a time-scaled
the end of a chain of horizon
connected dependent activities, where you have a
activities - Calendar dates: assign
merge activity, can have free calendar dates to project
- Critical: slack activities
 The longest path through
The Critical Path - Multiple starts and multiple
the activity network that
- Network path(s) that has projects: using a common
allows for the completion
 start and end node helps to Activity and Project Frequency Uncertain Activity Times out varying demands on
identify the total planning Distributions resources by using slack
period of all projects (delaying noncritical
Step Action activities) to manage
Automated Warehouse Order
Create an Activity resource utilisation when
Picking System Network 1
List resources are adequate over
Create a Network the life of the project
2
Diagram Resource-Constrained
Start-to-Start: may be used with Hammock Activities Calculate the Scheduling
or without lag  small lag
Hammock Activity 3a expected time for - The duration of a project may
allows a sequential activity to be
- Spans over a segment of a each activity be increased by delaying the
worked on in parallel and to
project Calculate the late start of some of its
compress the duration of the
- Has a duration that is 3b variance for each activities if resources are not
Extended Network Techniques critical path
determined after the network activity adequate to meet peak
to Come Close to Reality plan is drawn Complete Network demands
- Is very useful in assigning and - In the 3-time estimate Diagram with Types of Project Constraints
- Laddering
controlling indirect project approach, the critical path is activity duration Technical of Logical Constraints
 Activities that are broken
costs determined as if the mean using expected time. - Constraints related to the
into segments so the
- Is used to aggregate sections times for the activities were Calculate the networked sequence in which
following activity can 3c
of the project to facilitate fixed times variance for each project activities must occur
begin sooner and not
getting the right level of detail - The overall project activity. Do a Physical Constraints
delay the work
for specific sections of a completion time is assumed forward pass to find - Activities that cannot occur in
- Lags
project to have a normal distribution ES, EF and backward parallel or are affected by
 The minimum amount of
Probabilistic Project Schedule with mean equal to the sum pass to find LS, LF contractual or environmental
time a dependent activity
PERT – Program Evaluation of the means along the Show the Activity conditions
must be delayed to begin
Review Technique critical path and variance 4 Schedule. Find slack Resource Constraints
or end
- Knowing the weighted equal to the sum of the and critical path. - The absence, shortage, or
 Lengthy activities are
broken down to reduce average and variances for variances along the critical Find the Expected unique interrelationship and
the delay in the start of each activity allows the path Project Time, T, its interaction characteristics of
5
successor activities project planner to compute - Project’s completion time variance and resources that require a
 Lags can be used to the probability of meeting standard deviation: standard deviation particular sequencing of

√∑ σ
constrain finish-to- different project durations 2 Chpt 8: Scheduling Resources & project activities
start, start-to-start, Finish-to-Finish: finish of one
σT =E te Cost - People: skills
finish-to-finish, start- activity depends on finish of - Average project duration: - Materials: lack and
Resources
to-finish, or another T E =∑ t e - Project network times are not
availability of materials
- Equipment: presented by
combination a schedule until resources
te: average activity times type, size and quantity;
relationships have been assigned
along critical path recognition of equipment
An activity’s mean completion  Implicit assumption is
- Scheduled completion time: constraints before project
time, is: Ts that resources will be
Example of Laddering Using begins can avoid high
Finish-to-Start Relationship Start-to-Finish: finish of activity (a+ 4 m+b) - Probability the project will be available in the required
crashing or delay costs
t= completed before Ts: amounts when needed
depends on start of another 6  Adding new projects
Constraint Examples
Note: this follow a Beta T S −T E requires making realistic
Z=
Probability Distribution
a = optimistic completion time
estimate
√∑ σ 2
te
judgements of resource
availability and project
Use of Lags Combination: start-to-finish and durations
b = pessimistic completion time - Cost estimates are not a
finish-to-finish combinations
estimate budget until they have been
tied to two activities  more
m = most likely completion time time-phased
than one lag relationship can be
Finish-to-Start: typical, generic estimate Classification of Scheduling
attached to an activity Project Planning Process
network style  frequently Activity’s completion time Problem
Network Using Lags variance is:
used when ordering materials Classification of Problem

[ ]
2 - Using a priority matrix will
 must be justified and b−a
approved by someone σ 2= Resource Smoothing (or help determine if the project
responsible for a large section of 6 Levelling) is time or resource
the project - Involves attempting to even constrained
Time-constrained project of all activities conceptual start-up and complement each other Chpt 9: Reducing Project
- Must be completed by an Resource-Constrained Projects shutdown costs - Experience: veterans team up Duration
imposed date - Resources are limited in - Is considered the major with new hires  share their Rationale for Reducing Project
- Time is fixed, resources are quantity or availability reason why projects fail to experience and help socialise Duration
flexible: additional resources - Prioritise and allocate meet schedule the newcomers to the Time is Money: Cost-Time
are required to ensure resources to minimise project Benefits of Scheduling customers and norms of the Trade-offs
project meets schedule delay without exceeding Resources organisation Reducing the time of a critical
Resource-constrained project resource limit or altering the Leaves time for consideration - Future needs should be Patient Entry Project Network activity usually incurs
- Is one in which the level of technical network of reasonable alternatives recognised: take advantage of additional direct costs
resources available cannot be relationships Gives opportunity for reflection opportunities for people who - Cost-time solutions focus on
exceeded - Activities are scheduled using before project starts will work together in the reducing (crashing) activities
- Resources are fixed, time is heuristics (rules-of-thumb) - Cost-time trade-offs can be future to work together early on the critical path to shorten
flexible: inadequate resources that focus on: considered on so that they can be overall duration of the project
will delay the project  Minimum slack - Changes in priorities (found familiar with each other Reasons for imposed project
Resource Allocation Methods  Smallest (least) duration that it is actually resource Multiproject Resource duration dates:
Limiting Assumptions  Lowest activity constraint than time Schedules Patient Entry Time-Phased - Time-to-market pressures:
- Splitting activities is not identification number constraint, so add resources Common problems encountered Work Packages Assigned speed is a competitive
allowed – once an activity is - The parallel method is used to satisfy time constraint) in managing multiproject advantage
start, it is carried to to apply heuristics Provides information for time- resource schedules: - Unforeseen delays (e.g.,
completion  An iterative process phased work package budgets 1. Overall schedule slippage: adverse weather, design
- Level of resources used for an starting at the first time to assess: delays in one project can flaws, equipment breakdown)
activity cannot be changed period of the project and - Impact of unforeseen events have a ripple effect and delay cause substantial delays
Risk Assumptions scheduling period-by- such as turnover, equipment other projects midway in the project
- Activities with the most slack period the start of any breakdowns, or transfer of 2. Inefficient resource - Incentive contracts: bonuses
pose the least risk activities using the three project personnel utilisation: projects have for early completion
- Reduction of flexibility does priority rules - Amount of flexibility in different schedules and - Imposed deadlines and
- Costs do not have to be
not increase risk Impacts of Resource- available resources requirements  there are contract commitments:
distributed linearly, but the
- The nature of an activity Constrained Scheduling Assigning Project Work peaks and valleys in overall project duration time is set
costs should be placed as you
(easy, complex) doesn’t - Reduces slack; reduces - Project managers should resource demands while project is in its
expect them to occur
increase risk flexibility match, as best as they can, 3. Resource bottlenecks: delays “concept” phase before or
Time-constrained Projects and schedules are extended Monthly Cash Flow Statement without any detailed
- Increases criticality of events the demands and
- Must be completed by an - Increases scheduling requirements of specific work as a result of shortages of scheduling of all activities in
imposed date complexity with the qualifications and critical resources that are the project
- Require use of levelling - May make the traditional experience of available required by multiple projects - Overhead and public goodwill
techniques that focus on critical path no longer participants  natural Using the Resource Schedule to costs: prudent to examine the
balancing or smoothing meaningful tendency to assign the best Develop a Project Cost Baseline direct costs of shortening the
resource demands - Can break sequence of events people the most difficult tasks Why time-phased budget critical path versus the
- Use positive slack (delaying - May cause parallel activities Reasons why we should not baseline is needed overhead cost savings
noncritical activities) to to become sequential always assign the best people - To determine if the project is - Pressure to move resources
manage resources utilization - Activities with slack may the most difficult tasks on, ahead, or behind to other projects: cost of
- Prepares the firm to cover
over the duration of the become critical - Best people: resent to the schedule and over or under compressing the project can
costs over the lifespan of the
project Splitting fact that they are always its budgeted costs be compared with the
project
Resource Demand Levelling A scheduling technique for given the toughest - To know how much work has opportunity cost of not
Techniques for Time- Resource Usage Schedule releasing key equipment or
creating a better project assignments been accomplished for the
Constrained Projects schedule and/or increase - Less experienced allocated money spent – the people
- Advantages resources utilization participants: resent to the project cost baseline (planned Activity Graph
 Peak resource demands are - Involves interrupting work on fact that they are never given value, PV)
reduced an activity to employ the the opportunity to expand Creating a time-phased budget
 Resources over the life of resource on another activity, their skill/knowledge base - Assign each work package to
the project are reduced then returning the resource Factors to be considered in one responsible person or
 Fluctuation in resource to finish the interrupted work deciding who should work department and deliverable
demand is minimised - Is feasible when start-up and together - Compare planned schedule
- Disadvantages shutdown costs are low - Minimise unnecessary and costs using an integrative - Map out the full deployment
 Loss of flexibility that - Most common error is to tension: pick people with system called earned value of personnel and equipment
and can be used to generate Considering Time-Cost Trade
occurs from reducing slack interrupt “people work”, compatible work habits and Two Time-Phased Work
individual work schedules Offs
 Increases in the criticality where there are high personalities but who Packages (Labour Cost Only)
When the project deadline is
shorter than the activities time, Critical path: ABC them up to speed on the and perspectives that takes Commonly represent labour, may occur when the project is
what can be done? How to meet deadline: crash 2 project time to adopt materials, equipment and implemented
- Crash the project  make it days - Outsourcing project work: - Reducing project scope: leads sometimes subcontractors  What can go wrong (risk
shorter Which activity to crash: the subcontractor may have to reduction in functionality 2. Find total indirect costs for event)
- Trade-off: Add manpower, cheapest on the critical path access to superior technology of the project selected project durations:  How to minimise the risk
add equipment  costs or expertise that will (+) Big savings in time and generally represent overhead event’s impact
increase accelerate the completion of money costs such as supervision, (consequences)
To determine where and how the activity; frees up (-) Reducing the value of the administration, consultants  What can be done before
much to crash activity times, we resources that can be project and interests an event occurs
need information on the activity assigned to a critical activity - Compromise quality: usually 3. Sum direct and indirect costs (anticipation)
and the cost as follows and will ideally result in a not acceptable for these selected project  What to do when an
1. Activity cost under the Next, we need to find the unit short project duration Reducing Project Duration to durations even occurs (contingency
normal or expected activity crashing cost for the critical - Scheduling overtime: Reduce Project Cost Compare additional cost plans)
time (Ti, Ci) activities. We need to find Mi  No learning curve alternatives for benefits Risk Event Graph
2. Time to complete the and Ki.  Fewer distractions when - Determining activities to
activity under maximum Activity A: MA = 7-4 days people work outside shorten
crashing (i.e., the shortest Crashing cost: normal hours;  Shorten (crash) the
possible activity time) (Ti’) ' activities with the smallest
3. Activity cost under
C A−C A 800−500 (-) may Sustained overtime work
K A= = =$ 100 per
incur day costs
intangible increase in cost per unit of
maximum crashing (Ci’) MA 3 such as divorce, burnout, Explanation of Project Costs time
Crashing Activity Times and turnover Project Indirect Costs  Assumptions:
Ti = expected time for activity i - Establishing a core project - Costs that cannot be  Cost-time relationship is Risk Management’s Benefits
Ti’ = time for activity I under Which activity to crash? By how team, i.e., dedicated: linear
associated with any particular - A proactive rather than
maximum crashing many days? What is the cost? (+) Fast  Normal time assumes
work package or project reactive approach
Mi = max possible reduction in Method 1: Manual Method (+) Avoids hidden cost of low-cost, efficient
activity  supervision, - Reduces surprises and
time for activity I due to - Choose activity A because it is multitasking in which methods to complete the
administration, consultants, negative consequences
crashing (max crash the cheapest on the critical people are forced to juggle activity
interest - Prepares the project manager
amount) path the demands of multiple  Crash time represents a
- Costs that vary (increase) to take advantage of
As you crash this activity, other
M i=T i−T ' i activities may become critical.
projects with time  reducing project limit – the greatest time appropriate risks
(-) Expensive time directly reduces indirect reduction possible under - Provides better control over
Normal cost, cj, can be crashed Hence you have to check the - Do it twice – fast and costs realistic conditions the future
to a reduced time, t’j, under max critical path in the revised correctly Project direct costs  Slope represents a - Improves chances of reaching
crashing for an increased cost, network after your proposed (+) Additional costs of doing it - Normal costs that can be constant cost per unit of project performance
c’j crashing activities. twice are often more than assigned directly to a specific time objectives within budget and
Cost per unit reduction, Kj compensated for by the work package or project  All accelerations must on time
'
C j −C j Options for Crashing for 2nd day benefits of satisfying the activity  labour, materials, occur within the normal Risk Management Process
K j= and Associated Cost deadline equipment, subcontractors and crash times
Mi Resource Constrained Project Cost-Duration Graph Practical Considerations
- Improving project team - Using the Project Cost-
efficiency: improving the Duration Graph
Example on Crashing Activity
planning and organisation of - Crash Times
Times
the project or eliminating - Linearity Assumption
A machine company has a
barriers to productivity such - Choice of Activities to Crash
project to maintain two
as excessive bureaucratic Revisited
machines. The activity list is
interference and red tape - Time Reduction Decisions and
shown. The management wants
Options for Accelerating Project - Fast-tracking: critical Sensitivity
to complete the project in 10
Completion activities are done in parallel Chpt 7: Managing Risk
days. Is that possible? How?
Resources Not Constrained (concurrently) rather than Risk Management Process
- Adding resources: sequentially Risk
(+) hire more people, buy (-) Late design changes can - Indirect costs continue for the - Uncertain or chance events
more equipment produce wasted effort and life of the project  any that planning cannot
(-) increases the rework reduction in project duration overcome or control
communication - Critical-Chain Project means a reduction in indirect Risk Management
Management (CCPM): Step 1: Risk Identification
requirements costs - An attempt to recognise and
(-) Requires considerable - Generate a list of possible
Completion time: 12 days (-) additional delay of training 1. Find total direct costs for manage potential and
training and a shift in habits risks through brainstorming,
Deadline cannot be met new people and getting selected project durations: unforeseen trouble spots that
problem identification and
 risk profiling be used if a possible foreseen - Time/cost dependency links: Time Buffers form of design or additions
- Use risk breakdown structure risk event occurs costs increase when problems - Cushion against potential represent big changes
(RBS) in conjunction with - A plan of action that will take longer to solve than delays in the project - Implementation of
work breakdown structure reduce or mitigate the expected - Amounts of time used to contingency plans, when risk
(WBS) to identify and analyse negative impact - Price protection risks (a rise in compensate for unplanned events occur, represent
risks  macro risks first, then (consequences) of a risk input costs) increase if the delays in the project schedule changes in baseline costs and
specific events Risk Assessment Form event duration of a project is - Buffers are added to: schedules
- Risk profile is a list of - Conditions for activating increased 1. Activities with severe risks - Improvement changes
questions addressing implementation of Funding Risks 2. Merge activities that are suggested by project team
additional areas of contingency plan should be - Changes in the supply of prone to delays due to one members represent another
uncertainty on a project; decided and clearly funds for the project can or more preceding activities category
addresses both technical and documented dramatically affect the being late Change Management Systems
management risks Risk Severity Matrix - Plan should include a cost likelihood of implementation 3. Noncritical activities to 1. Identify proposed changes
- Project managers have to estimate and identify source or successful completion of a reduce the likelihood that 2. List expected effects of
encourage critical thinking of funding project they will create another proposed changes on
when it comes to risk - All contingency plans should - Especially true for publicly critical path schedule and budget
identification be communicated to team funded projects 4. Activities that require 3. Review, evaluate, and
members so that surprise and scarce resources to ensure approve or disapprove of
resistance are minimised Opportunity Management that the resources are changes formally
- Individual responsible for Exploit available when needed 4. Negotiate and resolve
Step 3: Risk Response monitoring the potential risk - Seeking to eliminate the conflicts of change,
Development and initiating the contingency uncertainty associated with Contingency Fund Estimate condition, and cost
Mitigating Risk plan needs to be assigned an opportunity to ensure that 5. Communicate changes to
- Reducing the likelihood an Risks of Not Having a it definitely happens parties affected
Step 2: Risk Assessment adverse event will occur Contingency Plan 6. Assign responsibility for
Share
- Risks need to be evaluated in - Reducing the impact of an - Having no plan may slow implementing change
- Allocating some or all of the
terms of the likelihood the adverse event managerial response 7. Adjust master schedule and
ownership of an opportunity Step 4: Risk Response Control
event is going to occur and Avoiding Risk - Decisions made under budget
to another party who is best - Risk register: details all
the impact or consequences - Changing the project plan to pressure can lead to panic, 8. Track all changes that are
able to capture the identified risks, including
of its occurrence eliminate the risk or condition and acceptance of the first to be implemented
opportunity for the benefit of descriptions, category, and
- Scenario analysis for event Transferring Risk remedy suggested which can Change Control Process
the project probability of occurring,
probability and impact - Paying a premium to pass the be potentially dangerous and Enhance impact, responses,
- Risk assessment form risk to another party; e.g., costly - Taking action to increase the contingency plans, owners,
- Risk severity matrix fixed-price contracts Risk Response Matrix probability and/or the and current status
 Failure Mode and Effects - Insurance: impractical positive impact of an Risk Control
Analysis (FMEA) because defining the project
Risk Value = Impact x Probability x Detection opportunity - Execution of the risk response
risk event and conditions to Accept strategy
- Probability analysis
an insurance broker who is - Being willing to take - Monitoring of triggering
 Decision trees: assess
unfamiliar with the project is advantage of an opportunity events
alternative courses of Risk and Contingency Planning
difficult and usually expensive if it occurs, but not taking - Initiating contingency plans
action using expected Technical Risks
- Requiring Build-Own- action to pursue it - Watching for new risks
values Benefits of a Change Control
Operate-Transfer (BOOT) - Can cause the project to be
 NPV: assess cash flow risks Contingency Funding and Time Establishing a Change System
provisions: host has shut down
in projects Buffers Management System 1. Inconsequential changes
transferred financial risk of - Backup strategies if chosen
 PERT: a more macro Contingency Funds - Monitoring, tracking, and are discouraged by the
ownership until the project technology fails
perspective by looking at - Funds to cover project risks – reporting risk formal process
has been completed and - Assessing whether technical
overall cost and schedule identified and unknown  - Fostering an open 2. Costs of changes are
capabilities proven uncertainties can be resolved
risks to review activity and size of funds reflects overall organisation environment maintained in a log
Retaining (aka Accepting) Risk Schedule Risks
project risk risk of a project - Repeating risk 3. Integrity of WBS and
- Making a conscious decision - Use of slack increases the risk
Defined conditions for Impact - Budget reserves  are linked identification/assessment performance measures is
to accept the risk of a late project finish
Sales of a Risk on Major Project to the identified risks of exercises maintained
Escalating Risk - Imposed duration dates
Objectives specific work packages - Assigning and documenting 4. Allocation and use of
- Beyond the scope/authority (absolute project finish date)
- Management reserves  are responsibility for managing budget and management
of the project/team - Compression of project
large funds to be used to risk reserve funds are tracked
Contingency Planning schedules due to a shortened
cover major unforeseen risks Change Control Management 5. Responsibility for
Contingency Plan project duration date
(e.g., change in project scope) Sources of Change implementation is clarified
- An alternative plan that will Cost Risks
of the total project - Project scope changes in the 6. Effects of change is visible
 to all parties involved - Initiate change - Cooperative relationships are tasks that increase skills and
7. Implementation of change - Provide direction and built on the exchange of abilities
is monitored motivation organisational “currencies” - Ownership/Involvement:
8. Scope changes will be - Innovate and adapt as (favours) letting others have ownership
quickly reflected in baseline necessary Commonly Traded and influence
and performance measures - Integrate assigned resources Organisational Cultures - Gratitude: expressing
Sample Change Request Managing Project Stakeholders Task-related currencies appreciation
Project Management Maxims: - Resources: lending or giving Social Network Building
- You cant do it all and get it money, budget increases, Mapping Stakeholder
all done: personnel, etc. Dependencies Priorities
Management by Wandering
Projects usually involve a vast - Assistance: helping with - Project Team Perspective:
Around (MBWA) - Subordinates discern project
web of relationships existing projects or  Whose cooperation will
managers’ priorities by how
- Hands-on work is not the undertaking unwanted tasks we need? MBWA they spend their time
same as leading: - Cooperation: giving task  Whose agreement or - Involves managers spending - Types of questions project
More pressure and more support, providing quicker approval will we need? the majority of their time in managers pose communicate
involvement can reduce your response time, or aiding  Whose opposition would face-to-face relationships priorities
effectiveness as a leader implementation keep us from with employees building Urgency
- What’s important to you - Information: providing accomplishing the cooperative relationships - Stringent deadlines, frequent
likely isn’t important to organisational as well as project? Characteristics of effective status report meetings and
someone else technical knowledge - Stakeholder’s Perspective: project managers aggressive solutions for
Different groups have Position-related currencies  What differences exist - Initiate contact with key expediting the project
Typically includes: different stakes - Advancement: giving a task between the team and stakeholders Problem Solving
- Description of the change (responsibilities, agendas, and or assignment that can result those on whom the team - Anticipate potential problems - How project managers
- Impact of not approving the priorities) in the outcome of a in promotion will depend? - Provide encouragement respond to problems sets the
change project - Recognition: acknowledging  How do the stakeholders - Reinforce the objectives and tone for how others tackle
- Impact of the change on - Remember: project effort, accomplishments, or view the project? vision of the project problems
project scope/schedule/cost, management is tough, abilities  What is the status of our - Intervene to resolve conflicts Cooperation
- Defined signature paths for exciting and rewarding – - Visibility: providing a chance relationships with the and prevent stalemates - How project managers act
review endeavour to persevere to be known by higher-ups or stakeholders? toward outsiders influences
- Tracking log number Network of Stakeholders significant others in the  What source of influence Managing Upward Relations how team members interact
Change Request Log organisation does the team have Project Success = Top with outsiders
- Network/Contacts: providing relative to the Management Support Standards of Performance
opportunities for linking with stakeholders? - Appropriate budget - If they want participants to
others Steps: - Responsiveness to exceed project expectations,
Inspiration-related currencies - Draw a map of the unexpected needs then they have to exceed
- Vision: being involved in a dependencies - A clear signal to the others’ expectations of a
task that has larger - Always better to organisation of the good project manager
significance for the unit, overestimate rather than importance of cooperation Ethics
organisation, customer, or underestimate dependencies Motivating the project team - How others respond to
Influence as Exchange society - Assess their significance - Influence top management in
Chpt 10: Being an Effective ethical dilemmas in the
The Law of Reciprocity - Excellence: having a chance through the power/interest favour of the team:
Project Manager course of a project will be
- One good deed deserves to do important things really matrix 1. Rescind unreasonable
Managing vs. Leading a Project influenced by how the project
another, and likewise, one well - Most significant stakeholders demands
Managing: coping with manager has responded to
bad deed deserves another - Ethical correctness: doing  high power and interest  2. Provide additional
complexity similar dilemmas
- The primary way to gain what is “right” by a higher deserve the greatest resources
- Formulate plans and
cooperation is to provide standard than efficiency attention 3. Recognise the Ethics and Project Management
objectives
resources and services for Relationship-related currencies Example of Stakeholder Map accomplishments of team Ethical Dilemmas
- Monitor results
others in exchange for future - Acceptance: providing members Situations where it is difficult to
- Take corrective action
resources and services closeness and friendship Leading By Example determine whether conduct is
- Expedite activities
Quid pro Quo - Personal support: giving right or wrong
- Solve technical problems
- Mutual exchanges of personal and emotional - Padding of cost and time
- Serve as peacemaker
resources and services backing estimations
- Make trade-offs among time,
(“back-scratching”) build - Understanding: listening to - Exaggerating pay-offs of
costs, and project scope
relationships others’ concerns and issues project proposals
Leading – coping with change
Influence “Currencies” (Cohen Personal-related currencies - Falsely assuring customers
- Recognise the need to change
and Bradford) - Challenge/Learning: sharing that everything is on track
to keep the project on track
- Being pressured to alter 4. High emotional intelligence Establishing a Team Identity  Desirable job
status reports (EQ): have command of their - Effective Use of Meetings: assignments
- Falsifying cost accounts emotions and be able to collective efforts of all team  Increased personal
- Compromising safety respond constructively to members define team flexibility
standards to accelerate others when things get a bit membership and reinforce a  Desirable job
progress out of control collective identity assignments
- Approving shoddy works 5. General business Project kick-off meeting - Co-location of team  Increased personal
Code of Conduct perspective: to integrate the Conditions Favouring - Provide an overview o f the members: common meeting flexibility
- Professional standards and contributions of different Development project, including the scope place and contain most Orchestrating the Decision-
personal integrity business and technical and objectives, the general significant project Making Process
Building Trust: The Key to disciplines - Ten or fewer team members schedule, method, and documentation
Exercising Influence 6. Effective time management: - Voluntary team membership procedures - Creation of project team
Trust time is manager’s scarcest - Continuous service on the - begin to address some of the name: makes the team more
- An elusive concept resource team interpersonal concerns tangible
- See it as a function of 7. Skilful politician: deal - Full-time assignment to the captured in the development - Get the team to build or do
character and competence effectively with a wide range team model something together early on:
 Character focuses on of people and win their - An organisation culture of - Begin to model how the team reinforces a sense of a team
1. Problem Identification:
personal motives support and endorsement of cooperation and trust is going to work together to - Team rituals: contribute to a
identify the underlying
 Competence focuses on their project - Members report solely to the complete the project unique team subculture, set
problem to which these
skills necessary to realise 8. Optimist: can-do attitude project manager Establishing ground rules project work apart from
alternatives and probably
motives Suggestions for Project - All relevant functional areas - Establish operational ground mainstream operations and
others are potential
The core of highly effective Managers are represented on the team rules reinforce a special status
solutions
people is a character ethic - Build relationships before you - The project involves a - Organisational and Requirements for an Effective
2. Generating alternatives:
- Consistency: more need them compelling objective procedural issues Project Vision
generate as many possible
predictable - Trust is sustained through - Members are in close - Normative issues on how the solutions as possible no
- Openness: more receptive to frequent face-to-face contact communication with each team will interact with each matter how outlandish they
others - Realise that “what goes other other may appear to be
- A sense of purpose: what is around comes around” 1. Planning decisions 3. Reaching a decision:
best for the organisation and Chpt 11: Managing Project Creating a High-Performance 2. Tracking decisions evaluate and assess the
the project Teams Project Team 3. Managing change merits of the alternatives
Contradictions of Project High Performing Teams decisions and reach a “meeting of
Management Synergy 4. Relationship decisions the minds” as to what
- Innovate and maintain - Positive energy: 1+1+1=10 Norms of High-performance solution is best for the
stability - Negative energy: 1+1+1=2 Teams 1. Its essential qualities must project
Building High-Performance
- See the big picture while Characteristics of high- - Confidentiality is maintained; be able to be communicated: 4. Follow-up: evaluate the
Project Teams
getting your hands dirty performing teams no information is shared use of concrete, image-based effectiveness of the
- Encourage individuals but 1. Share a sense of common outside the team unless all language is considered critical decision
stress the team purpose Recruiting Project Members
agree to it 2. Visions have to be Managing Conflict within the
- Hands-off/Hands-on 2. Make effective use of Factors affecting recruiting
- It is acceptable to be in challenging but realistic Project Team
- Flexible but firm individual talents and - Importance of the project
trouble, but it is not 3. Project manager has to Encouraging Functional Conflict
- Team versus organisational expertise - Management structure used
acceptable to surprise others believe in the vision: passion - Encourage dissent by asking
royalties 3. Have balanced and shared to complete the project
 tell others immediately for the vision tough questions
Traits of an Effective Project roles How to recruit?
when deadlines or milestones 4. Source of inspiration to - Bring in people with different
1. Systems thinker: take a 4. Maintain a problem-solving - Ask for volunteers
will not be reached others points of view
holistic rather than a focus Who to recruit?
- There is zero tolerance for Managing Project Reward - Designate someone to be a
reductionist approach to 5. Accept differences of opinion - Problem-solving ability
bulling a way through a Systems devil’s advocate
projects and expression - Availability
problem or an issue Group Rewards - Ask the team to consider an
2. Personal integrity: 6. Encourage risk taking and - Technological expertise
- Agree to disagree, but when a - Who gets what as an unthinkable alternative
establishing a firm sense of creativity - Credibility
decision has been made, individual reward? Managing Dysfunctional
who you are, what you stand 7. Set high personal - Political connections
regardless of personal - How to make the reward Conflict
for and how you should performance standards - Ambition, initiative, and
feelings, move forward have lasting significance? - Mediate the conflict: PM
behave 8. Identify with the team energy
- Respect outsiders, and do not - How to recognise individual intervene and negotiate a
3. Proactive: take action before The Five-Stage Team - Familiarity
flaunt one’s position on the performance? solution by using reasoning
it is needed to prevent small Development Model project team  Letters of commendation and persuasion
concerns from escalating into Project Team Meetings - Hard work does not get in the  Public recognition for - Arbitrate the conflict: PM
major problems way of having fun outstanding work imposes a solution to the
 conflict assumptions and conflicts: - Current status of project duration information found in resource and project cost schedules
- Control the conflict: PM need to probe deeper when (schedule and cost) work breakdown structure problems associated with - Schedule resources to
reduces the intensity  communicating - Remaining cost to complete (WBS) falling behind or progressing activities
assignments may need to be - Use electronic video project 2. Measuring progress and ahead of schedule - Time-phase work
rearranged technology to verify work - Date that project will be performance Earned Value Cost/Schedule packages into a network
- Accept the conflict: live with - Share the pain complete Quantitative measures: time System 3. Develop a time-phased
the conflict if the project is to Project Team Pitfalls - Potential problems to be and budgets - An integrated project budget using work
end soon Groupthink addressed now Qualitative measures: management system based packages included in an
- Eliminate the conflict: - Illusion of invulnerability - Cost and/or schedule determined by on-site on the earned value concept activity Accumulate
remove either one or both - Whitewash of critical overruns and the reasons for inspection or actual use that uses a time-phased budgets (PV)
parties thinking: ignore alternatives them 3. Comparing plan against budget baseline to compare 4. At the work package level,
Sources of Conflict over the - Negative stereotypes of - Forecast of overruns at time actual actual and planned schedules collect the actual costs for
Project Life Cycle outsiders of project completion Measure deviations from plan and costs the work performed (AC).
- Direct pressure Collecting Data and Analysis to determine if action is Glossary of Terms Multiply percent complete
Bureaucratic Bypass Syndrome - Who will collect project data? necessary - EV: earned value for a task is times original budget (EV).
- Special entitlement which - How will data be collected? 4. Taking action simply the percent complete 5. Compute the schedule
leads to rejection of - When will the data be If deviations from plans are times its original budget; EV is variance (EV-PV) and the
bureaucratic policies and collected? significant, corrective action the percent of original budget cost variance (EV-AC)
Rejuvenating the Project Team procedures and outside - Who will compile and analyse will be needed that has been earned by Project Management
bureaucrats will find ways to the data? Tools for Monitoring Time actual work completed Information System Overview
Informal Techniques put up roadblocks and thwart Reports and Reporting Performance [BCWP – budgeted cost of
- Institute new rituals the project team - Who will receive the reports? - Tracking Gantt chart: when work performed]
- Take an off-site break as a Team Spirit Becomes Team Different stakeholders and used with a network, the - PV: planned time-phased
team from the project Infatuation levels of management need dependencies are easily baseline of value of the work
- View an inspiration message - Too good is no good different kinds of project identified if tracing is needed scheduled
or movie - Become infatuated with the information - Control chart: plots the - AC: actual cost of work
- Have the project sponsor give challenge of the project and - How will the reports be difference between the completed; sum of costs
a pep talk the talent around them transmitted? schedules time on the critical incurred in accomplishing
Formal Techniques Development of Project
- Can leave in its wake a string - When will the reports be path at the report date with work [ACWP – actual cost of
- Hold a team building session Baselines
of broken professional and distributed? the actual point on the critical work performed]
facilitated by an outsider to Rules for placing costs in
personal relationships that Project Progress Report Format path - CV (cost variance) = EV – AC
clarify ownership issues baselines
contribute to burnout and - Progress since last report - Milestone schedules: keep - SV (scheduled variance) = EV
affecting performance - Costs are placed exactly as
disorientation upon - Current status of project more distal stakeholders – PV
- Engage in an outside activity they are expected to be
completion of the project 1. Schedule informed on the progress of a - BAC: budgeted cost at
that provides an intense “earned” in order to track
Going Native 2. Cost project completion; total budgeted
common experience to them to their point of origin
- Who am I serving? 3. Scope Baseline and Tracking Gantt cost of baseline or project - Percent complete rule
promote social development - Customer’s interests take - Cumulative trends Charts cost accounts
of the team  Costs are periodically
precedence over the parent - Problems and issues since last - EAC: estimated cost at assigned to a baselines as
organisation’s interest leading report completion units of work are
Challenges of Managing Virtual
to excessive scope creep and 1. Actions and resolution of - ETC: estimated cost to completed over the
Project Teams
open defiance of corporate earlier problems complete remaining work duration of a work package
Developing Trust
policy and interests 2. New variances and - VAC: cost variance at Purposes of a Baseline (PV)
- Exchange of social
Chpt 13: Performance problems identified completion; indicates An anchor point for measuring
information: who everyone is
Measurements - Corrective action planned expected actual over- or performance
and some personal
Structure of Project Monitoring The Project Control Process under-run cost at completion - A planned cost and expected
background information
Information System Control Developing an Integrated schedule against which actual
- Set clear roles for each team Development of an Earned
Creating a project monitoring - Process of comparing actual Cost/Schedule System cost and schedule are
member Value Cost/Schedule System
system involves determining: performance against plan to 1. Define the work using a measured
Developing effective patterns of Time-Phase Baseline Plan
- What data to collect identify deviations, evaluate WBS - A basis for cash flows and
communication - Corrects the failure of most
- How, when, and who will courses of action, and take - Scope awarding progress payments
- Don’t let team members monitoring systems to
collect the data appropriate corrective action - Work packages - A summation of time-phased
vanish connect a project’s actual
- How to analyse the data Project Control Steps - Deliverables budgets (cost accounts as
- Establish a code of conduct to performance to its schedule
- How to report current 1. Setting a baseline plan - Organisation units summed work packages)
avoid delays: develop a and forecast budget
progress to management Provides elements for - Resources along a project timeline
priority system - Systems that measure only
Information System Structure measuring performance - Budgets What costs are included in
- Establish clear norms and cost variances do not identify
What Data are Collected? Derived from cost and 2. Develop work and resource Baselines
protocols for surfacing
- Project direct overhead costs: measure schedule and cost down to the work package - Contains actual and revised
labour, equipment, materials performance level estimates that include
Rules applied to short-duration
- Overhead costs and profit are - Measuring EV begins at work - Use of labour hours in the EV newer, more complete
activities and/or small-cost
typically added later by package level system is the modus operandi information
activities
accounting processes - Work packages conditions: for most construction work  3. Management Reserve Index
- 0/100 percent rule: assumes
Methods of Variance Analysis 1. Not started yet: earn 0% labour hours are easy to (MRI)
100% of budget credit is
of PV understand and are often the CV earned at once and only
2. Finished: earn 100% of way many time and cost MRI =
PV estimates are developed MR when work is completed 
Comparing Earned Value (EV) used for work packages with
3. In-process or partially Indexes to Monitor Progress - Reflects the amount of MR
with: very short durations
complete: apply percent Performance Indexes that has been absorbed by
- Expected schedule value - 50/50 rule: allows for 50% if
complete rule to the PV - Typically used at the cost cost over-runs
- Actual costs the value of the work package
baseline to measure EV account level and above - Is popular in the
Assessing status of a project budget to be earned when it
Status Reports Cost Performance Index (CPI) construction industry
Required three data elements: is started and 50% to be
- Assess cost overruns in
EV earned when the package is
- Planned cost of the work Developing a Status Report CPI= terms of MR as it reflects
completed  used for work
scheduled (PV) AC how much one can afford
packages of short duration
- Budgeted cost of the work Assumptions - Measures the cost efficiency to spend
completed (EV) and small total costs
- Assume each cost account of work accomplished to date Interpretation of Indexes
- Actual cost of the work Rule used gates before the total
has only one work package, - Most accepted and used
completed (AC) budgeted value of an activity
and each cost account will be index as it is the most
Calculate schedule and cost can be claimed
represented as an activity on accurate, reliable and stable
variances - Percent complete with
the network Scheduling Performance Index
- Positive variance: a desirable weighted monitoring gates:
- Project network early start (SPI)
condition uses subjective estimated
times will serve as the basis EV Additional Earned Value Rules
percent complete in
- Negative variance: problems for assigning the baseline SPI=
or changes that have taken values PV combination with hard,
place tangible monitoring points 
- Once work of an activity - Measures scheduling
Cost Variance (CV) long-duration activities that
begins, some actual costs will efficiency to date
- Indicates if the work can be broken into short,
be incurred each period until Percent Complete Indexes (PCI)
accomplished costs more or discrete work packages of no
the activity is completed - Indicate how much of the
less than was planned at any more than one or two report
work accomplished
point in the project periods
WBS with Cost Accounts represents of the total
CV = EV – AC Summary Graph budgeted (BAC) and actual
- If CV is negative, project is (AC) dollars to date
Forecasting Final Project Cost
over budget 1. PCI Budgeted Costs (PCIB)
Schedule Variance (SV) EV
- Presents an overall PCIB= Methods used to revise
assessment in dollar terms of BAC estimates of future project
the progress of all work - Percent complete in terms costs:
packages in the project of budget amounts Revised estimated cost at
scheduled to date Project Baseline Gantt Chart - Does not include actual completion (EACre)
- Measures progress in dollars costs incurred - Allows experts in the field to
rather than time units - Favoured by many PM change original baseline
- Useful in assessing the Tracking Gantt Chart Showing when there is a high level durations and costs because
direction all the work in the Status of confidence in the original new information tells them
project is taking budget estimates the original estimates are not
Project Basline Budget
SV = EV – PV 2. PCI Actual Costs (PCIC) accurate
Forecasting cost at completion
- If SV is negative, the project is AC
behind schedule PCIC = (EACf)
EAC - Uses actual costs-to-date plus
- Views percent complete in an efficiency index to project
- Only the project network, or terms of actual dollars final costs in large projects
Cost/Schedule Graph Development of Status Reports tracking Gantt chart, and spent to accomplish the where the original budget is
- Snapshot of a project at a actual work completed can work to date and the actual unreliable
specific point in time give an accurate assessment expected dollars for the
- Status report uses EV to of schedule performance complete project (EAC) Forecasting Models:
 EACre & EACf unforeseen problems or Asked future projects in the use of report content.
improvements that change - What tasks are required to - Include more detail and - Project type (development,
the scope of the project close the project? depth than in-process marketing, compliance,
EAC ℜ= AC + ETC ℜ - Allow scope change only if it - Who will be responsible for project audits strategic)
- EACre: revised estimated cost is clear that the project will these tasks? Guidelines for Conducting a - Size (monetary)
at completion fail without the - When will closure begin and Project Audit - Number of staff
- AC: cumulative actual cost of change/project will be end? - Technical level (Low, Med,
work completed to date improved significantly with - How will the project be High)
- ETCre: revised estimated cost 1. The philosophy must be
the change delivered? - Strategic or Support
to complete remaining work that the project audit is not
- Care should be taken to not Wrap-Up Closure Checklist Analysis
a witch hunt
Earned Value Status Report use baseline changes to Includes succinct, factual review
2. Comments about
disguise poor performance on statements of the project.
individuals or groups
EAC f =ETC + AC past or current work
participating in the project
- Project mission and
Project Communication Plan objectives
should be minimised
- Procedures and systems used
3. Audit activities should be
Work remaining BAC−EV - Organisation resources used
ETC = = sensitive to human
- Outcomes achieved (SCSC)
CPI EV emotions and reactions
Recommendations
Other Control Issues 4. Accuracy of data should be
AC Chpt 14: Project Closure verifiable
- Technical improvements
Project Closure and Review - Corrective actions
Implementing Project 5. Senior management should
- May include terminating or
- EACf: estimated total cost of Deliverables announce support for the
Closedown sustaining vendor or
completion project audit
1. Getting delivery acceptance contractor relationships
- ETC: estimated cost to 6. The objective of project
from the customer Lessons learned
complete remaining work audits is not to prosecute
2. Shutting down resources - Reminders of mistakes easily
- AC: cumulative actual cost of but to learn and conserve
Technical Performance and releasing them to new avoided, and actions easily
work completed to date valuable organisation
Measurement 1. Wrapping up the project: uses taken to ensure success
- CPI: cumulative cost index to resources where mistakes
- Ramifications of poor ensure the project is 3. Reassigning project team - Retrospectives
date have been made
technical performance approved and accepted by members - Helps future project teams
- BAC: total budget of the 7. The audits should be
frequently are more profound the customer 4. Closing accounts and seeing avoid pitfalls and makes
baseline completed as quickly as is
- Technical performance is 2. Project audit: post-project all bills are paid project implementation
- EV: cumulative budgeted cost reasonable
frequently where quality reviews of how successful the 5. Delivering the project to smoother
of work completed to date project was the customer Appendix
control processes are needed
and used 3. Evaluation of performance 6. Creating a final report The Project Audit Process - Backup data
To Complete Performance and management of the Project Audits Step 1: Initiating and Staffing - Critical pertinent information
Scope creep
Index (TCPI) project: evaluation includes - Depends primarily on
- Minor refinements that - Examine project success and Project Retrospectives
- Useful as a supplement to the team, individual team organisation and project size
eventually build to major review why the project was
estimate at complete EACf members, and project - The outcome must represent
scope changes that can cause selected
computation manager performance an independent, outside view
problems - Include a reassessment of the
- Amount of value each Project Closure of the project
- Key to managing scope creep project’s role in the
remaining dollar in the Step 2: Data Collection and
is change management: well- Types of Project Closure organisation’s priorities
budget must earn to stay Analysis
defined scope statement and - Normal: completed project - Include a check on the
within the budget - Gather information and data
stating what the project is - Premature: completed early organisational culture and
BAC−EV not, which can avoid with some parts of the external factors to answer questions from:
TCPI= misinterpretations later  Organisation view
BAC− AC project eliminated
- Perpetual: constant add-ons
- When to perform the project
Scope Changes to a Baseline audits:  Project team view
- If the TPCI is less than 1.00,
 poorly conceived project 1.In-process project audits Step 3: Reporting
you should be able to
scope - Concentrate on project - The report attempts to
complete the project without
- Failed Project: easy to progress and capture needed changes and
using all of the remaining
identify and easy for review performance lessons learned from a
budget
group to close down - Perform early in projects current or finished project
- A ratio of less than 1.00
- Changed Priority: to allow corrective A Common Outline for Project
opens the possibility of other
organisations’ priorities often changes Audit Reports
opportunities such as
change and strategy shift 2.Post-project audits Classification
improving quality, increasing
directions - Emphasise on improving Allows prospective readers and
profit, or expanding scope
Close-out Plan: Questions to be the management of project managers to be selective
Monthly Status Report - Stakeholders may identify
 project adequate? Explain. culture? members, peers, 5. Political hot potato: relationships:
Retrospectives
7. Were lessons learned from 7. Are there criteria beyond subordinates, and foreign outsourcing of work  Reduced administrative
- Denote specific efforts at earlier projects useful? time, cost, and customers is perceived as a major costs
identifying lessons learned on
Why? Where? specifications? Chpt 12: Outsourcing cause of underemployment  More efficient utilization
projects 8. Did the project have a clear Project Performance Request for Proposal (RFP) of resources
An independent facilitator Outsourcing Project Work
link to organisational Evaluation: Individual  Improved
- Guides the project team Strategy  Project screening 
objectives? Explain. Performance Assessment communication
through the analysis project RFI  Gather info  RFP 
9. Was project staff properly Responsibilities: - The process of transferring of  Improved innovation
activities Proposal Submission 
reassigned? - Functional organisation or business functions or  Improved performance
- Uses several questionnaires Evaluation  Contract 
10. Was the Human Resources functional matrix: the processes (e.g., customer Key Differences between
focusing on project Implementation  Commission
Office helpful in finding individual’s area manager support, IT, accounting) to Partnering and Traditional
operations and on how the  Maintenance
new assignments?  The area manager may other, often foreign Approaches to Managing
organisation’s culture - Be announced to external
Comment. solicit the project companies Contracted Relationships
impacted project success and contractors/vendors with
Post-Implementation manager’s opinion of the - Being applied to contracting Partnering Approach
failures adequate experience to
Evaluation individual’s performance significant chunks of project - Mutual trust forms basis for
- Visits one-on-one with implement the project
Reasons for Poor-Quality on a specific project work strong working relationships
project participants and
Project Performance - Balanced matrix: the project - Being applied to the creation - Shared goals and objectives
stakeholders to dive deeper
Evaluations: manager and the area of new products and services Development steps: ensure common direction
into cause-effect impacts
- Evaluations of individuals are manager jointly evaluate an 1. Summary of needs and - Joint project team exists with
- Leads a team retrospective
left to supervisors of the individual’s performance Advantages request for action high level of interaction
session  reviews the
team member’s home - Project matrix and project 1. Cost reduction: 2. Statement of Work (SOW) - Open communications avoid
facilitator’s report and
department organisations: the project competitive prices, detailing scope and major misdirection and bolster
attempts to add key
- Typical measures of team manager is responsible for overhead costs are deliverables effective working
information
performance centre on time, appraising individual dramatically cut 3. Deliverable specifications/ relationships
- Works with the team to
cost, and specifications performance 2. High level of expertise: hire requirements, features, - Long-term commitment
develop a system that
Pre-Implementation Conducting Performance firms with the know-how to and tasks provides opportunity to attain
prioritises information for
Conditions: Team Reviews work on relevant segments 4. Responsibilities – vendor continuous improvement
different recipients
1. Do standards for measuring - Begin by asking the individual 3. Fast project completion: and customer - Objective critique is geared to
Project Process Review performance exist? (You to evaluate his or her own more resources for the 5. Project schedule candid assessment of
Questionnaire can’t manage what you performance dollar, access to equipment 6. Costs and payment performance
can’t measure) Are the - Avoid drawing comparisons that can accelerate schedule - Access to each other’s
goals clear for the team with other team members; completion of project tasks 7. Type of contract: fixed- organisation resources is
and individuals? rather, assess the individual 4. Flexibility: no longer price and cost-plus available
Challenging? Attainable? in terms of established constrained by their own 8. Experience and staffing - Total company involvement
Lead to positive standards and expectations resources 9. Evaluation criteria requires commitment from
consequences? - Focus criticism on specific CEO to team members
2. Are individuals and team examples of behaviour rather Contractor Evaluation Template - Integration of administrative
Disadvantages
responsibilities and than on the individual systems equipment takes
1. Loss of control: core team
Organisation Culture Review performance standards personally place
depends on other
Questionnaire known by all team - Be consistent and fair in - Risk is shared jointly among
organisations that they
1. Was the organisational members? treatment of all team Best Practices in Outsourcing the partners, encouraging
have no direct control over
culture supportive for this 3. Are team rewards members Project Work innovation and continuous
the project
type of project? adequate? Do they send a - Treat the review as one point - Well-defined requirements improvement
2. Coordination breakdown:
2. Was senior management clear signal that senior in an ongoing process and procedures to protect
coordination of
support adequate? management believes that Individual Performance both parties
professionals from different Traditional Approach
3. Were people with the right the synergy of teams is Assessment - Extensive training and team-
organisations can be - Suspicion and distrust; each
skills assigned to this important? Multiple-rater appraisal (360- building activities
challenging, exacerbated by party is wary of the motives
project? 4. Is a clear career path for degree feedback) - Well-established conflict
physical separation of the other
4. Did the project office help successful project - The objective is to identify management processes in
3. Conflict: more prone to - Each party’s goals and
or hinder management of managers in place? areas for individual place
interpersonal conflicts as objectives, while similar, are
the project? Explain. 5. Is the team empowered to improvement - Frequent review and status
different participants do geared to what is best for
5. Did the team have access manage short-term - Involves soliciting feedback updates
not share the same values, them
to organisational resources difficulties? concerning team members’ - Co-location when needed
priorities, and culture - Independent project teams;
(people, funds, 6. Is there a relatively high performance from all of the - Fair and incentive-laden
4. Security: trade and teams are spatially separated
equipment)? level of trust emanating people that their work affects contracts
business secrets may be with managed interactions
6. Was training for this from the organisation  Project members, area - Long-term outsourcing
revealed - Communications are
 structured and guarded ensure the relationship agreement (BATNA – Best Contract Type vs. Risk new capabilities to the
- Single project contracting is withstands problems and Alternative To a Negotiated evolving product
normal setbacks Agreement) concept to work
Project Uncertainty
- Objectivity is limited due to - Problem resolution toward a win-win scenario
fear of reprisal and lack of - Continuous improvement Managing Customer Relations
continuous improvement - Joint evaluation
Customer satisfaction
opportunity - Persistent leadership Chpt 16: Agile Project
- Negative effect of dissatisfied Contract
- Access is limited with Project Completion: Celebrating Management
customers on a firm’s
structured procedures and Success A formal agreement between
reputation is far greater than Traditional vs. Agile Methods
self-preservation taking - Conduct a joint review of two parties wherein the
the positive effect of satisfied Traditional Project
priority over total accomplishments and contractor obligates itself to
customers Management Approach
optimisation disappointments perform a service and the client
- Every customer has a unique - Concentrates on thorough,
- Involvement is normally - Hold a celebration for all obligates itself to do something
set of performance upfront planning of the entire
limited to project-level project participants in return
expectations and met- project
personnel - Recognise special - Defines the responsibilities of
performance perceptions - Requires a high degree of
- Duplication and/or contributions the parties, spells out the
- Satisfaction is a perceptual predictability to be effective
translation takes place with Advantages of Long-term Waterfall Approach to Software
relationship: conditions of its operations Agile PM
attendant costs and delays Relationships Development
- Defines the rights of the
- Risk is transferred to the Perceived Performance parties to each other - Relies on incremental,
- Reduced administrative costs iterative development cycles
other party
- More efficient utilisation of
Expected Performance - Grants remedies to a party if to complete projects
Strategies for Communicating <1: dissatisfied the other party breaches its
resources - Is ideal for exploratory
with Outsources >1: very satisfied/very transactional obligations
- Improved communication projects in which
- Improved innovation delighted requirements need to be
- Project managers must be Types of Contracts discovered and new
- Improved performance
skilled at managing both technology tested
The Art of Negotiating customer expectations and Fixed-Price (FP) Contract or - Focuses on active
Project management is NOT a perceptions Lump-sum Agreement collaboration between the
contest - The contractor with the project team and customer
- Everyone is on the same side lowest bid agrees to perform representatives
Managing Customer all work specified in the
Project Activities: Setting the – ours
Expectations contract at a fixed price
Stage for Successful Partnering - Everyone is bound by the Traditional PM vs. Agile PM
- Don’t oversell the project; - The disadvantage for owners
Selecting partners success of the project
better to undersell is that it is more difficult and
- Voluntary, experienced, - Everyone must continue to
- Develop a well-defined more costly to prepare
willing, with committed top work together
project scope statement - The primary disadvantage for
management Principled negotiations
- Share significant problems contractors is the risk of
Team Building: The Project 1. Separate the people from
and risks underestimating project costs
Managers the problem Agile Project Management
- Keep everyone informed - Contract adjustments:
- Build a collaborative 2. Focus on interests, not Is related to the rolling wave
about the project’s progress  Redetermination provisions
relationship among the positions planning and scheduling project Iterative, Incremental Product
- Involve customers early in
3. Invent options for mutual  Performance incentives
project managers decisions about project methodology Development
Team Building: The gain - Uses iterations (“time boxes”)
development changes
Stakeholders 4. When possible, use to develop a workable
- Handle customers early in Cost-Plus Contracts
- Expand the partnership objective criteria product that satisfies the
decisions about project - Contractor is reimbursed for
commitment to include other Dealing with Unreasonable customer and other key
development changes all direct allowable costs plus
key managers and specialists People stakeholders
- Handle customer an additional fee to cover
- If pushed, don’t push back - Allows stakeholders and
relationships and problems in overhead and profit
Project Implementation: - Ask questions instead of
an expeditious, competent, - Put the burden of risk on the customers review progress
Sustaining Collaborative making statements
and professional manner client and re-evaluate priorities to Agile Project Management
Relationships - Use silence as a response to
- Speak with one voice - There is little formal incentive ensure alignment with Advantages of Agile PM
Establish a “we” as opposed to unreasonable demands
- Speak the language of the for contractors to control customer needs and company - Useful in developing critical
“us and them” attitude toward - Ask for advice and encourage
customer costs or finish on time goals breakthrough technology or
the project others to criticise your ideas
Project Roles, Challenges, and because they get paid - Is cyclical in that adjustments defining essential features
- Co-location: employees from and positions (to understand
Strategies regardless of final cost are made, and a different - Continuous integration,
different organisations work the other party)
- Schedule incentives provide iterative cycle begins that verification, and validation of
together at the same location - Use Fisher and Ury’s best
some cost-control measures subsumes the work of the the evolving product
Establish mechanisms that will alternative to a negotiated previous iterations and adds - Frequent demonstration of
 progress to increase the cross-functional skill sets
likelihood that the end responsible for delivering the
product will satisfy customer product
needs - Scrum Master (aka PM):
- Early detection of defects and facilitates scrum processes
problems and resolves impediments at
- Customer’s prioritised list of
the team and organisational
Agile PM Principles key features desired when
level by acting as a buffer
- Focus on customer value the project is completed
between the team and
- Iterative and incremental outside interference - Used to monitor progress
delivery Scrum Meetings toward completion of the
Partial Sprint Backlog
- Experimentation and project
adaptation - Displays amount of work
- Self-organisation remaining across time
Release Planning
- Continuous improvement - Relationship between amount
- Establish the goals and
of work remaining and the
Popular Agile PM Methods general plan for the project
rate at which team is
- Probable delivery date and
reducing this work
initial cost estimates if
- Developed and controlled by
nothing changes
the team
Sprint Planning Limitations and Concerns of
- Represents amount of work
- At the start of each sprint, the Agile PM
the team commits to
product owner and
complete during the next
Scrum Methodology development team negotiate
sprint
- Is a holistic approach for use which product backlog items - It does not satisfy top
by a cross-functional team the team will attempt this management’s need for
collaborating to develop a sprint budget, scope, and schedule
new product Sprint Burndown Chart control
Daily scrum meeting
- Defines product features as 1. What did you do in the last - Its principles of self-
deliverables and prioritises scrum (i.e. yesterday)? organisation and close
them by their perceived 2. What are you going to do in collaboration can be
highest value to the customer this scrum (i.e. today)? incompatible with corporate
- Re-evaluates priorities after 3. What will prevent you from cultures
each iteration (sprint) to achieving this? - Its methods appear to work
produce fully functional - Creates a daily mechanism to best on small projects that
features quickly inform the team require only five to nine
- Has four phases: analysis, about the state of the project dedicated team members to
design, build, test - Sustains a sense of team complete the work
identity that encourages - It requires active customer
openness and resolution of involvement and cooperation
Scrum Development Process
Product Owner creates user problems in real time
- Used to track progress on a
stories: As a (user role) ___. Sprint Review
daily basis
I need (a goal) ___ so that - At the end of each sprint,
- Solid line shows ideal
(benefit)___. team demonstrates actual
scenario if sprint progresses
work product increments
as predicted by the initial task
they have built to the product
estimates
owner and other relevant
- Dotted lines shows actual
stakeholders
performance
- Suggest improvements and
- Above solid line: team is
new features
Key Roles and Responsibilities behind schedule
Sprint Retrospective
in the Scrum Process
- Reflect on how well the
- Product Owner: acts on
previous sprint went
behalf of customers/end
- Identify specific actions that
users to represent their
can improve future sprints
interests
- Development Team: is a Partial Product Backlog Release Burndown Chart After
team of 5-9 people with Six Sprints