Critical Chain Method
Cost Performance Index
This is a ratio of the amount of actual cumulative dollars spent on a project's work and how closely that value is to the predicted budgeted amount
CPI = EV / AC
Critical Path Method
is the most common approach to calculating when a project may finish. It uses "forward" and "backward" paths to reveal which activities are considered critical and which contain float. If activities on the critical path are delayed, the project end date will be delayed.
Estimate At Completion
A hypothesis of what the total cost of the project will be. Before the project begins, the project manager completes an estimate for the project deliverables based on the WBS. As the project progresses, there will likely be some variances between what the cost estimate was and what the actual cost is. The EAC is calculated to predict what the new estimate at completion will be.
EAC = BAC / CPI
Estimate To Complete
Represents how much more money is needed to complete the project work
ETC = EAC - AC
The value of the work that has been completed and the budget for that work
EV = % complete * BAC
Earned Value Measurement
- Integrates scope, schedule, and cost to give an objective, scalable point-in-tim assessment of the project.
- calculates the performance of the project and compares current performance against the plan.
- Can also be a harbinger of things to come
- Results early in the project can predict the likelyhood of the project's success or failure.
Graphical Evaluation and Review Technique
International Standards Organization
Key Performance Indicator
Precedence Diagramming Method
Project Evaluation and Review Technique
Request for Information
Schedule Performance Index
Variance At Completion
Work Breakdown Structure
The project Sponsor issues the project charter. Key output of initiation phase
- Authorizes the project
- Identify the project manager
- Justify the project using cost-benefit analysis
- Identify the stakholders
- State the problem, business requirements, and product or service requirements
- List deliverables
- Describe the scope
- Make high-level time and cost estimates
- Define project phases and milestones
- Identify high-level risks
- Discuss general project managment approach
- Determine acceptance criteria
- Team members maintain a home in their department and report to both the funtional manager and the project manager.
- The porject manager is full-time on the project, while the team members are part-time
- Constitutes a complex and costly but reasonably effective project organization
What are the business case listing project cost and benefits discussed by the project charter?
- Cost: All possible costs associated with the project at the time of approval.
- Benefits: Includes the money that could be made from the project. Not all projects produce such a benefit.
Potential business risks
- Ambiguous or changing requiurements
- Multiple business system dependencies
- Multiple business units
- Multiple IT systems
- Project length and cost
- Project impacts business procedures
- Customer not available
- System disasters
Potential IT risks
- Project specifications subject to change
- Complex, intricate logic
- New, unfamiliar technology
- Inexperienced or limited team
- Inflexible schedules
- involves translating the business requirements into functional and technical requirements. This translation helps in preparing the project plan.
- Requirements need to include success and performance criteria against which the deliverable can be measured to see if the goals are met and completion criteria to ensure that everyone understands what the deliverable exactly is and under which circumstances it will be delivered.
- Requirements are followed by a review and verification with the stakeholders.
- Functional requirements: describe what the system must do to be successful.
- Technical requirements: describe the context that the system must work in, including the operational environment, client/server topology and network protocols, hardware interfaces, and so on.
Criteria's for clearly staing each goal or objective for project
- Meaningful: Addresses one or more business needs
- Measurable: Operationally defined so that it can be reliablly assessed by using quantitative or qualitative methods
- Manageable: Written to a level of detail that can be assigned, is sufficient to track progress, and has specified review and completion dates.
Purpose of a requirements review
- To verify mutual understanding of the requirements with the stakeholders
- Any information missing or complete must be addressed before taking the project further.
The process of providing or discovering greater levels of detail as the project moves toward completion
A temporary endeavor undertaken to create a unique product or service and has defined start and end dates.
This sophisticated approach stems from the 1950's when the original concept was called the activity-on-the-arrow(AOA) method. The origin of the arrow is the "begin activity" sign,and the end of the arrow is the "end activity" sign.
A network diagramming method that allows the project manager to map relationships between activities. With the AON method, the focus is on the activities rather than on the start and end of activities.
Actual Cost (AC)
Actual costs are used in earned value management and represent the actual cost of the work performed.
These are generally smaller projects that, as the name implies, add, move, or change some element within an organization. Approximately 10 percent of the project time is allotted to planning.
The project team, like the project, is not a permanent fixture in the organization. At some point the members of the team disperse to other projects and join different project teams.
This is when the customer or project sponsor doccuments and accepts the project results. Administrative closure is also needed if a project is terminated
This relies on historical information to predict estimates for current projects. Analogous estimating is also known as top-down estimating and is a form of expert judgment.
As Late As Possible (ALAP) constraint
When you specify a task as ALAP, Microsoft Project will schedule the task to occur as late as possible without delaying dependent tasks. This is the default for all new tasks when scheduling tasks from the end date. This constraint is flexible.
As Soon As Possible (ASAP)
When you specify a task as ASAP, Microsoft Project will schedule the task to occur as soon as it can. This is the default for all new tasks when assigning tasks from the start date. This constraint is flexible.
Beliefs considered to be true, real, or certain for the sake of planning. All project assumptions should be evaluated later in planning to determine their risk for the project should the assumption prove untrue.
When you complete risk management planning, you'll test these assumptions to prove your theories true or false. Assumptions that prove false can become risks in the project.
This is one response to a risk event. The risk is avoided by planning a different technique to remove risk from the project.
The process of using prior projects within, or external to, the performing organization to compare and set quality standards for processes and results.
The process of determining the pros and cons of any project, processm product, or activity
Benefit Measurement Methods
This method is used when comparing the value of one project against the value, or benefits, of another. It's often used in project selection models.
A document from the seller to the buyer. A bid is used when price is the determining factor in the decision-making process.
(Contractor or Vendor Conference)
A meeting with prospective sellers to ensure all sellers have a clear understanding of the product or service to be procured. Bidder conferences allow sellers to query the buyer on the details of the product to help ensure that the proposal the seller creates is adequate and appropriate for the proposed agreement.
Is the process of creating a detailed estimate for each work component (labor and materials) and accounting for each varying cost burden. The bottom-up cost estimates are based on the WBS and the WBS dictionary, as these documents define each element of the project deliverables
This approach encourages participants to generate ideas about an opportunity or business problem. Brainstorming at this stage is research is useful to determine different types of outcomes for the project. You should encourage the participants to come up with as many ideas as possible, and then these ideas can be sorted and researched more in depth after the session.
the finances allotted for the completion of an IT technical project
Budget At Completion
The sum of the budget for each phase of your project. This is the estimated grand total of your project.
this estimate is also somewhat broad and is used early in the planning processes and also in top-down estimates. The range of variance for the eatimate can be -10% to +25%
This document helps the organization determine if the organization can justify the cost of the project in proportion to the ROI. The business case links the value of the project's solution to the organization.
A time of the business productivity where activities are very high or low. For example, an accounting firm may experience a busy business cycle during tax season.
These are the sellers, venders, and contractors that may be involved in a project theough a contractual relationship. Business partners can provide goods and services such as hardware and software, and subject-matter experts like developers, technical writers, and software testers that you might need on your project
Business Rules Analysis
- If the project outcome will likely affect the way your organization does business, the business rules should be studied.
- Business rules:
- define the internal processes to make decisions
- provide definitions for operations
- define organizational boundaries
- afford governance for projects, employees and operations
Cause and Effect Diagrams and Fishbone Diagrams
These diagrams are used for root cause analysis of what factors are creating the risk within the project. The goal is to identify and treat the root of the problem, not the symptom.
All contracts for all projects need to be approved through a central contracting unit within the performing organization
Change Control Board (CCB)
This board determines the validity and need for project change requests and approves or denies them
Change Control System (CCS)
An internal process the project manager can use to block anyone, including management, from changing the deliverables of a project without proper justification. Change Control requires the requestor to have an excellent reason to attempt a change, and then it evaluates the proposed change's impact on all facets of the project.
Change Impact Statement
A formal response from the project manager to the originator of a Project Change Request form. It is a summary of the project manager's proposed plan to incorporate the changes. Usually this is a lisitng of the paths and trade-offs the project manager is willing to implement.
A document that records all proposed changes in the project, the effect of the change, the change request status, and relevant information about the change request.
Chart of Accounts
A coding system used by the performing organization's accounting system to account for the project work. This is a predefined table of costs for project or organization use for commonly completed activities. For example, a programmer's time is $150 per hour regardless of which programmer is assigned to the project.
A list of actvities that workers check to ensure the work has been completed consistently. Checklists are used in quality control.
The period when a project or phase moves through formal acceptance to bring the project or phase to an orderly conclusion.
Code of Accounts
Is a numbering system that shows the different levels of WBS components and identifies which components belong to which part of the WBS
The type of power that comes with the authority to dicipline the project team members. This is also known as "penalty power". It is generally used to describe the power structure when the team is afraid of the project manager.
Collective Bargaining Agreements
These are contractural agreements initiated by employee groups, unions, or other labor organizations. They may act as a constraint on the project.
Communication Channel Formula
- A formula to predict the number of communication channels within a project
- The formula is N(N-1)/2, where N represents number of stakeholders
Communications Management Plan
A plan that documents and organizes stakeholder needs for communication. This plan covers the communications system, its documentation, the flow of communication, modalities of communication, schedules for communications, information retreival, and any other stakeholder requirements for communications.
A conflict resolution method that requires both parties to give up something. The decision ultimately made is a blend of both sides of the argument. Because neither party completely wins, it is considered a lose-lose solution.
Activities focusing on controlling the characteristics of a product or service. A documented process of controlling the features, attributes, and technical configuration of any product or service. It is sometimes considered a rigorous change control system.
Constrained Optimization Methods
These are complex mathematical formulas and algorithms that are used to prdict the success of projects, variables within projects, and tendencies to move forward with selected project investments. Examples include linear programming, integer algorithms, and multi-objective programming.
Consultative Decision-Making Process
The project team meets with the project manager, and together they may arrive at several viable solutions. The project manager then can take the proposed solutions and make a decision based on what she thinks is the best for the project.
A predetermined decision that will be enacted should the project go awry
A time or dollar amount allotted as a response to risk events that may occur within a project
Continuous Quality Improvement
The theory that all practices within an organization are processes and that processes can be infinitely improved
a legal, binding agreement, preferably written, between a buyer and seller detailing the requirements and obligations of both parties. It must include an offer, an acceptance, and a consideration.
The process of ensuring that the buyer and the seller both perform to the specifications within the contract
Contract Change Control System
A system that defines the procedures for how contracts may be changed. Includes the paperwork, traking, conditions, dispute resolution, and the procedures for getting the changes approved within the performing organization.
A process for confirming that the obligation of the contract have been met as expected. The project manager, customer, key stakeholder, and, in some instances, seller complete the product verification together to confirm the contract has been completed.
a complete indexed set of records of the procurement process incorporated into the administrative closure process. These records include financial information as well as information in the performance and acceptance of the procured work.
Control Account Plans
A control tool within the project that represents the integration of the project scope, project schedule, and budget. It allows management to measure the progress of a project
These illustrate the performance of the project over time. They map the results of inspections against a chart. Control charts are typically used in projects or operations that have repetitive activities such as manufacturing, test series, or help desk functions. Upper and lower control limits indicate whether values are within control or out of control
The project is controlled and managed. The project manager controls the project scope and changes, and monitors changes to the project budget, schedule and scope by comparing plans to actual results and taking corrective action as necessary.
This shows what the project is expected to spend. It's usually shown in an S-curve and allows the project manager and management to predict when the project will be spending monies and over what duration. The purpose of the cost baseline is to measure and predict project performance.
A process of aggregating the assigned cost to arrive at a budget for the entire project. This process shows costs over the execution of the project. The cost budget results in an S-curve that becomes the cost baseline for the project.
Cost Change Control
This is part of the integrated change control system and documents the procedures to request, approve, and incorporate changes to project costs.
An active process to control causes of cost change, document cost changes and monitor cost fluctuations within the project. When changes occur, the cost baseline must be updated.
The process of calculating the costs, by category, of the identified resources to complete the project work.
Cost of Conformance
The cost of completing the project work to statisfy the project scope and the expected level of quality. Examples include training, safety measures, and quality management activities
Cost of Nonconformance
The cost of completing the project work without meeting the quality standards. the biggest issue here is the money lost by having to redo the project work; it's always more cost-effective to do the work right the first time. Other noncomformance costs are loss of sales, loss of customers, downtime,and corrective actions to fix problems caused by the incorrect work.
Cost Management Plan
This plan details how changes to costs within the project will be managed and the procedure to report and document cost changes.
Cost Plus Contract
- Represents a set fee for the procured work plus a fee for the actual cost of the work. Some unscrupulous vendors try to use a cost plus a percentage of cost contract where they expect you to pay for the cost of the materials plus a percentage fee for the materials.
- Cost plus contracts are risky for buyers, as vendors can drive the price up by actually wasting materials.
- There are some cost plus contracts that include incentives and penalties if the vendor finishes early or late-though you can add these terms to a fixed-fee contract
- Cost Variance
- The difference in the amount of budgeted expense and actual expense. A negative variance means that more money was spent on the service or goods than was budgeted for it.
- CV = EV - AC
- this is the addition of more resources to activities on the critical path in order to complete the project earlier.
- Crashing results in higher project costs
is represented in a project network diagram as one or more paths that equate to the longest duration of sequenced activities to reach the completion of all activities in the project. The critical path shows the latest finish and the early finish for the project activities.
Customer and End-user Stakeholders
These stakeholders could be internal to your organization or quite literally customers that purchase the deliverable your project creates
- No earlier than: This constraint specifies that a task may happen anytime after a specific date, but not earlier than the given date
- No later than: This constraint is deadline oriented. The task must be completed or must start by this date or else
- On this date: This constraint is the most time oriented. There is no margin for adjustment as the task must start on this date, no sooner or later
Decision Tree Analysis
A type of analysis that determines which of the two decisions is best. The decision tree assissts in calculating the value of the decision and determining which decision cost the least
This is a part of the communication model; it is the inverse of the encoder. If a message is encoded, a decoder translates it back to a usable format
- This estimate is one of the most accurate
- It is used late in the planning process and is associated with bottom-up estimates. The range of variance for the estimate can be -5% to + 10%.
A method to query experts anonymously on foreseeable risks within the project, phase, or component of the project. The results of the survey are analyzed and organized and then circulated to the experts. There can be several rounds of anonymous discussions with the Delphi Technique. The goal is to gain consensus on project risks, and the anonymous nature of the process ensures that no one expert's advice overtly influences the opinion of another participant
An element of Herzberg's theory that employees are motivated or demotivated by effects within the organization. They hygene factors are actually the expected benefits a company has to offer, such as insurance, vacation time, and other benefits. The presence of these elements is expected by the motivation seekers, and only their absence has a negative impact
Design of Experiments
This relies on statistical "what-if" scenarios to determine which variables within a project will result in the best outcome. It can also be used to eliminate a defect. The design of experiments approach is most often used on the product of the project, rather than on the project itself.
Detailed Variance Reports
A detailed explanation of any quality, scope, cost, or schedule variance within the project.
Directive Decision-Making Process
The project manager makes the decision with little or no input from the project team. Directive decision-making is acceptable, and needed in some instances, but it isolates the project manager from the project team.
- The preferred order of activities.
- Project managers should adhere to the order at their "discretion" and should document the logic behind the ordering.
- Discretionary dependencies have activities happen in a preferred order because of best practices, conditions unique to the project work, or external events.
- This is also known as soft logic
The reciever is involved in the listening experience by paying attention to the speaker's visual clues and paralingual intentions and by asking relevant questions
Part of the communications model, an encoder is the device or technology that packages the message to travel over the medium
This possitive risks reponse tries to make the conditions just right for a positive risk to happen. You could save a tremendous amount of time and project costs if you were able to finish a particular milestone by a given date. In order to reach the milestone, you add extra resources to help the effort-driven work so that the team can complete the milestone by the specific date.
Enterprise Environmental Factors
The rules and policies of your organization may require you to deal with a risk management department, follow particular risk analysis rules, or complete risk assessment forms. Always follow the rules of the organization.
These criteria are used to rate and score proposals from sellers. In some instances, such as a bid or quote, the evaluation is focused just on the price the seller offers. In other instances, such as a proposal, the evaluation criteria can be multiple values: experience, references, certification and more.
The project plans are carried out, or executed; the project manager coordinates people and other resources to complete the plan.
People will behave on the basis of what they expect as a result of their behavior. In other words, people will work in relation to the expected reward for the work.
A type of power where the authorityof the project manager comes from experience in the area that the project focuses on.