PMP izpiski

Document Sample
PMP izpiski Powered By Docstoc
					Unknow-unknown: who could imagine, who knew?, unpredictable disaster -
management reserve
Known unknown – risk response, residual risk, secondary risk, accept (contigency

PM SW will not solve and simplify everything. But it helps.

   Economic models
   Comparative models

   Linear programming
   Decision trees
   Mltiobjective programming

Lifecycle cost: project costs + operational + maintainance


       Configuration system

          Change Control System

Tools for project plan development:
    Project planning methodology,
    EV management,
    stakeholders skills and knowledge

Project success:
           o completion of the project on time and within budget
           o satisfaction of of the specification (contract, SOW)
           o Acceptance by the customer

Project plan: budgeting, timing, tresholds, methodology

Project INTERFACE planning – plan communication with several subcontractors

The CORE (planning) processes have clear dependencies so they must be executed in
essentially the same order on most projects

Project scope: work
Product scope: features

Performance reports  Scope control

Project scope statement
    detailed scope statement
    assumptions, constraints (cost, milestones)
    acceptance criteria

Work Breakdown Structure (WBS)
  - Each item of the WBS is assigned an unique identifier
          o This is called Code of account
  - Smallest item in a WBS is the work package – that cannot be broken down
      further/can be assigned, estimated, budgeted
  - Control account is above the Planning package in a WBS
  - WBS=total scope of a project
  - Serves as a team development tool (teambuilding), stakeholder communication
  - Scope baseline: WBS, WBS dict, scope stat.
  - Cannot illustrate dependencies

Time mnmgnt:
Activity: definition, sequencing, resource estimation, duration estimation, scedule
development, scedule control

   - Mandatory (hard logic)
   - Discretionary (soft logic)
   - External (goverment)

GERT, CDM : conditional diagraming method: allows loops, conditional branches,
multiple ends
ADM=AOA – dummy
Total Float (slack) – flexibility of the Project schedule
Free slack – delay, without delaying the next activity

Activity estimation:
   - Analogous:
   - Top down
   - Based on historical records (past information data)
   - Parametric – 3 point estimate; X krat cost of item, nubmer of lines…
   - 3 point estimate: O, M, P
   - Reserve analisys: add buffer = contingency, acitvity + continegcy
   - Padding (bigger activites): no good

Schedule compression: do not change scope
   - Crashing (on cpm)
   - Fasttracking (on cpm)
   - Resource leveling: keep resource at constant level; allocation of scarce
   - CCM: buffer, flexible start time, leveling, scarce resources
   - CPM: early start, early finish, late start, late finish
   - What-if scenarios: calculate, 3 point est, monte carlo

Cost estimate:
Bottom up – later stages of planning
Parametric estimating (statistical, matehmatical)
Reserve analisys

Workaround or management reserve for unknown risk

Voice of the customer: stated and implied requirements
PM has overall responsibility
Team for deliverables
Stakeholders/client – set up test specifications, specification

QA                                              QC
Process                                         Product
Deviation                                       Defect
                                                Tolerance limits Control limits
                                                Specification (customer) limits
Verification                                    Validation
Planned or random, continuous q-
Identify inefficient processes

Q.planning: benchmarking, cost-benefit analisys, DoE
COST of Conformance                            COST of Nonconformance
Employee training and education, q-            Rewoek, delays, poor jb performance,
planning, design costs, q-engineering, q-      scrap, customer satisfaction devrase,
audits, inspection costs                       warranty costs

HR: planning tools:
  - OBS – organiaztions: HR
  - RBS – resources: also non-human resources
  - RAM charts: who does what, RACI (responsible, accountable, consult, inform),
  - Text oriented descpritions of team members responsiblities

Staffing mngmnt plan contains RESOURCE HISTOGRAM.

Resource histograms – number of resources in time

Pure risk is insurable
Business risk: profit or loss

Risks, responses, root causes of risks – in RISK REGISTER not risk manangement plan

Risk management plan: timing, roles, methodology, budget; iterative process

Tools r.mngmnt plan: risk planning meetings

Risk identification: influence, wf, ishikawa
Risk identification techniques: assumption analisys: true, false, certain

Risk: gathering information: brainstormin, delphi, swoot, ishikawa, funnel analisys

Risk fallback plan cannot include outsourcing to another vendor.

DATA PRECISION RANKING – technique: is the DATA about risks useful for RISK

Measure risk probability and impact for every risk.

Qualitative: quick, ranking low, high, no numbers, subjective, high tolerance
Next  Quanititative: 1, 2, 3.. , objecitve, expert level, tools:
   - Sensitivity analisys
   - Decision tree
   - EMV
   - Monte carlo
Risk response planning for oportunities and risks

Strategies for

   - Avoidance: change the PM plan: scope, time…
   - Transference: outsourcing component, insurance
   - Mitigation: reduce the probability and then accept

  - Exploit: ensure it does occur
  - Share: 3rd party, alliance, joint venture
  - Enhance: increase probability

BOTH: accept (contingecy reserve)

Resiudal after risk response, secondary = new risk

Plan PURCHASES and ACQUSITIONS: plan, make or buy, SOW

Select sellers:
SHOULD COST: prepare an independent estimate to check the proposed price of
different sellers

Acquire project team – work with functional manager, complete HR staffing mngmnt

Team performance asessment

Stages of team development

Create recognition and reward (consider cultural differences – which will always be an
obstacle to overcome)

Virtual teams – not on one location,

leadership style: directing, coaching, supporting or delegating style

PM powers: formal (positional): reward, penalty/coercive, informal: political/referent (i
know the CEO), expert (the strongest)
Commnuication: skupno dokumentno področje projekta = INFORMATION

Communication barriers:
   Infromation overload
   Cultural differences, language
   Technology
   Jargon, lack of expertise
   Competing messages
   Distance (?)

Communication: peer = horizontal

The RECIEVER is responsible that the right information is retained
The SENDER is resposible for:
    making the information clear and unambigious
    confirming with the reciever that information is properly understood
    information is entirely received

Request seller responses:  only plan in the executing phase: »Contract mngmnt plan«

PM negotiation: to protect relationship

Work performance information:
Progress of scehdule
Deliverable status
Are the q-standards being met
Cost authorized and incurred
Resource utilization details
% of work completede

Monitoring and Control
Initiation (the CHEAPEST) – closure (the second most cheapest)

Baseline vs. work performance information 
   - Corrective actions
   - Preventive actions
   - Defect repair
   - Requested changes
Baseline = original approved estimates + approved changes

Time phased budget = cost baseline

Project Plan Baseline: collection of PM plan documents will be changing throughout the

Performance Measurment Baseline: approved plan for project work. Integrates: SCOPE,

Scope (change) control: integrated with time, cost, quality control

Schedule control: SV, SPI; Cost control: CV, CPI

Recommended corrective actions are the outputs of these controls.

QUALITY control
Monitoring project results if they comply with q-standards; eliminate causes of
unsatisfactory results
Quality control TT:
Ishikawa, Pareto, Scatter (x,y), Run chart (trend; x=time),

Control limits - defined in the process of QC (OPA)
Tolerance limits – on products specification
Specification (customer) limits

Common cause – acceptable range of variation
Special (assignable) cause
Rule of 7

   - Deming
   - Kaizen
   - Crosby: do the riht thing firt time; costs of non-confromance>cost of conformance
   - Juran: Quality is fitness for use (da je nekaj kvalitetno)
   - Taguchi: parametric design optimization

Failure Mode and Effects Analysis (FMEA): effect of component failure on product's

Precision: little scatter
Accuracy: corectness of value

RISK monitoring and control
Keep track, new risks
Ongoing: new risk identify, analyze impact, response plan…
Risk audits: verifies effectivnes of risk response plan and execution
 risk register UPDATES, Workaround plans to EMERGING RISKS, previously

CONTRACT administration
  - Ensuring performance of the seller, buyer performs according to the terms of the
  - Payment system: payments to seller accropding to the contract: »account payable
  - Claims administration: claims are demands for disputed changes, »claims admin

Integrated change control
    - chagnes baselines
    - coordination of changes across knowledge areas
    - maintains integrity of performance measurments

STATUS report: a detailed report status of a project: what has been acomplished:

VARIANCE report: actual vs planned

TREND ANALISYS REPORTS: to predict future variances

PROGRESS report: a quick view how much team has accomplished

FORECAST report: predicts the future status of the project

EV analisys: integrates scope, cost, time to asess project project performance

PERFORMANCE reports – not for team assesment
   provide information on past project performance
   provide information on current status
   may alert the team about potential future problems

Team member apparaisals – done for each individual by external manager, 360°

Scope verification: process of obtaining formal acceptance of completed deliverables
(product, services, documents), from stakeholders. Uses scope statement and WBS.

If project is cancelled, terminated, closed: document the level of extent of completion
Scope cerification                              Scope control
Acceptance of work results                      Correcntess of work results (meeting
                                              quality standards, limits)

Manage project team

Track work performance of the team, rsolve issues, manage conflicts, feedback,
coordinate changes

Sources of conflict: 1.)schedule, 2.)Project priority (the MOST IMPORTANT in
initiation), 3.)scarce resources, 4.) technical opinion, 5.) personalities
Conflict resolutions:
     - Problem solving = confrontaion, win-win
     - Compromising: lose some – lose some; maybe acceptable
     - Smoothing: lose –win, emphasizes commonality and deemphasizes differences;
         short time
     - Forcing: lose-win, forcing one's view point
     - Withdrawl: lose-leave; dosent resolve conflict, cool-off period

PM is resposible for stakeholders management: understand and be understood, gain
acceptance of ideas, produce change or action

Outsourcing contracts:
   - Contract closure – process of completing and settling each contract, resolving
      open items, closing each contract
   - Procurement audit: review of procurement process from: plan purchases and
      acquisitions to contract administration
   - Contract closure: product verification, administrative closure (updating contract
      records to reflect final results); lessons learnt

Close projects:
   - documenting, finalizing all project activities accross all project process groups
   - formalize acceptance of the project by sponsor/customer
   - at the end of project, end of the phase, termination..
   - lessons learned, archive project records

Early project termination:
   • Extinction: Stop the project immediately, ga ne rabimo več
   • Integration: Project results are integrated into the existing organizational units
   • Addition: Project is institutionalized as a new part of the organization (new
       product line or new division)
   • Starvation: Gradually reduce resources so that project dies slowly but surely (it
       fades out of sight)
Project records  Project archives

Social responsibility
4 tasks of PMP:
Ensure individual integrity
Contribute to PM management knowledge base
Enhace individual competence
Respect team's and stakeholder's culture, ethnic and language differences (+ join a

Responsibility to profession: adhere to candidate/certificate professional practice

Process groups are technology independent

CAP – control account plan

Key element of a contract

Mean: arithemtic mean
Mode: top frequency number
Median: half the numbers have values that are greater than the median

Colocation: majority of project team is moved to a central physical location for the life of

The project's information expediter: project manager

Expert intreviews for high level project objectives

War room: room with all information, meeting place

Who plays the most important role in QUALITY function: CUSTOMER

If customer is building a contract with not haveing a detailed scope yet, what type of
contract would you, as the seller PM, advise him? Fixed price  good advice.

Legal remedies - Damages:
   1. Compensatory damages, also called actual damages, are paid to compensate the
       claimant for loss, injury, or harm suffered by (see requirement of causation)
       another's breach of duty.
   2. Punitive damages – dodatne kazenske, ko compensatory damages ne zadoščajo
   3. Incidental damages - money claimed by, ordered to be paid to, a person as
       compensation for loss or injury
4. Consequential damages – posledična škoda, ki nastane ko ena od stran breach-a
   pogoje pogodbe
5. Liquidated damages (also referred to as liquidated and ascertained damages) are
   damages whose amount the parties designate during the formation of a contract
   for the injured party to collect as compensation upon a specific breach (e.g., late
6. Reliance damages are valued by a party's reliance interest for the foreseeable
   amount. It puts the injured party in the same dollar position as if the contract had
   never been formed.
7. Nominal damages are very small damages awarded to show that the loss or harm
   suffered was technical rather than actual. Perhaps the most famous nominal
   damages award in modern times has been the $1 verdict against the National
   Football League (NFL)
8. Treble damages, in law, is a term that indicates that a statute permits a court to
   triple the amount of the actual/compensatory damages to be awarded to a
   prevailing plaintiff, generally in order to punish the losing party for willful
Personal literacy refers to understanding and valuing oneself. The key behaviors:
_ Aggressive  insight. Committing to a continuous process of self-awareness and renewal.
_ Confident  humility. Being self-confident, yet humble enough to listen and learn from other people.
_ Authentic flexibility. Understanding and accepting the attitudes, beliefs, and behaviors of other
without compromising your own.
_ Reflective decisiveness. Balancing thoughtful consideration of all options by acting boldly and
_ Realistic optimism. Envisioning a better future while acknowledging the constraints of current

Social literacy refers to engaging and challenging other people. The key behaviors:
_ Pragmatic   trust. Combining the attitudes of trusting believers and skeptical pragmatists.
_ Urgent  listening. Balancing the urgent demands of business with deep listening to the concerns of
other people.
_ Constructive impatience. Being impatient enough to inspire greater performance without damaging
attitudes and relationships.
_ Connective teaching. Creating learning networks that enable people to learn collaboratively across
and cultural boundaries.
_ Collaborative individualism. Uniting the diverse skills and interests of individuals in a common

Business literacy refers to focusing and mobilizing the business. The key roles:
_ Chaos  navigator. Guiding people through change and managing the unexpected.
_ Business  geographer. Understanding the business context of the regions and countries where your
products and
services are made, bought, or sold.
_ Technology steward. Learning the e-business and Internet skills required in a technological world.
_ Leadership liberator. Creating leaders every day and at every level of the business.
_ Economic integrator. Aligning and connecting people, systems, and processes in support of the
vision and goals of the organization.

Cultural literacy refers to understanding and leveraging cultural differences. The key roles:
_ Proud  ancestor. Valuing your cultural heritage while acknowledging its shortcomings as well as its
_ Inquisitive internationalist. Looking beyond one’s own culture for business opportunities and
_ Respectful modernizer. Retaining the best of one’s culture while using the knowledge and
resources of others to modernize for the future.
_ Culture bridger. Forming alliances and connections across cultures.
_ Global capitalist. Bringing global resources to local problems and opportunities and local resources
to global ones.
3 stage Negotiation:

       Open: Say what you want: i want you to to something
       Bargain: Hammer out the deal: you know you will have to do it
       Close: Agree and exchange: i wish i will not be disappointed

8-stage negotiation

   1.   Prepare: Know what you want. Understand them.
   2.   Open: Put your case. Hear theirs.
   3.   Argue: Support your case. Expose theirs.
   4.   Explore: Seek understanding and possibility.
   5.   Signal: Indicate your readiness to work together.
   6.   Package: Assemble potential trades.
   7.   Close: Reach final agreement.
   8.   Sustain: Make sure what is agreed happens.

Negotiation technique
Fait acomplie - An accomplished fact; an action which is completed before those affected
by it are in a position to query or reverse it

Fait accompli strategy. The fait accompli strategy is a risky one. Basically, one side does
whatever it wants and expects the other side to accept the terms and the outcome.

Standard practice strategy. The "standard practice" claim infers that what is being
suggested is acceptable because it is "standard practice." This strategy is another reason
why doing your homework is important. If you are negotiating in an area that may be
unfamiliar to you, be sure you research any "standard practice" claims before agreeing to
Deadline strategy. Time can be a powerful weapon in a negotiation. If the other side
knows your deadlines, they may delay giving you a draft (and possibly throw in a few
changes) until the last minute to gain the advantage. The closer you are to your deadlines,
the more concessions you're likely to make. Therefore, it is important to set a deadline
which you are happy with.

Decoy strategy. The decoy issue is often used by politicians. This strategy involves
inflating the importance of a minor issue to mask the importance of a larger issue or a
hidden agenda. If the other side concedes what they have made you believe is a major
issue, but what is for them a minor one, they will then expect you to concede on one of
your truly important issues. Again, doing your homework will give you an edge in
knowing the industry value of various issues.

Faking withdrawal strategy. Faking withdrawal from the deal in favour of a competitor
is another strategy of which to be wary. Its purpose is to gain a concession, usually a
significant one, by pretending to entertain another offer such as one from your
competition. If you catch the other party in this strategy, it's probably best to call their
bluff and end the negotiations in favor of going elsewhere, perhaps to their competition.

Good guy/bad guy strategy. This approach is easy to spot. A common scenario may go
something like this: One of the negotiators on the other side is hardcore (definitely not
win-win minded) in his/her approach. This strategy may even involve the "bad guy"
throwing a temper tantrum. Then, when the bad guy steps out for a few minutes, the good
guy half of the negotiating team makes an offer in a less threatening manner. If the other
side has resorted to this strategy, it may be best to call them on it or consider terminating
the negotiations.

Limited authority strategy. The limited authority strategy involves the other side trying
to make concessions by claiming they don't have the authority to make concessions on
their own. If the other side claims that they do not have the authority to lower the price,
but instead need to call a manager, you should halt negotiations with that person and only
resume talks with a representative who has the authority to truly negotiate.

Salami strategy. The salami technique is used to gain concessions piece by piece. The
basic premise is this: Instead of trying to grab the whole salami, cut off thin slices over
time. The result is gaining the whole or a good portion of the salami without the other
side realising it (Thomas et al 2006).

Shared By: