Module Four, Session One Develop Project Charter

Choosing a Project Opportunities Problems Customer request

Benefits Measurement Compare the benefits of the project Cost-benefits ratio Scoring Models Murder Boards Payback period

Future Value of Money FV=PV(1+i) n where: –FV is future value –PV is present value –i is the given interest rate –n is the number of time periods

Future Value of Money FV=PV(1+i) n –PV is $100,000 –i is.06 –n is five years

Future Value of Money FV=PV(1+i) n –PV is $100,000 –i is.06 –n is five years FV=100,000(1.06) 5 –FV=100,000( ) –FV=133,822.60

Present Value of Money PV=FV/(1+i) n –PV is present value –FV is future value –i is the given interest rate –n is the number of time periods

Present Value of Money PV=FV/(1+i) n –FV is $160,000 –i is.06 –n is five years PV=160,000/( ) PV=$119,561

Net Present Value Finds the true value of a project Considers a project with multiple returns Considers the initial cash outlay

Net Present Value Calculate the return for each time period Calculate each time period’s present value Sum the present value Subtract the investment NPV greater than zero is good

Net Present Value Time Period Cash FlowPresent Value 1$15,000$14, $25,000$22, $17,000$14, $25,000 $19, $18,000 $13, Totals$100,000$83, Investment s $78, Net Present Value $5,927.37

Internal Rate of Return Present value equals cash inflow IRR with higher values are good IRR with lower values might be poor

Constrained Optimization Linear programming Nonlinear programming Integer algorithms Dynamic programming Multiobjective programming

Developing the Project Charter Authorizes the project Authorizes the project manager May be created by the project manager Signed by the project sponsor

Developing the Project Charter Authorized external to the project Appropriate power Portfolio Steering Committee

Project Statement of Work Business need Product scope description Strategic plan

Business Case Determines worth of the project Justifies the investment Cost-benefits analysis

Developing the Project Charter Requirements for satisfactionApproval requirementsProject managerProject sponsorHigh-level purpose of the project

Developing the Project Charter Purpose of the projectMilestone scheduleStakeholder influenceRisks

Developing the Project Charter Functional organizationsSummary budgetContract

Module Four, Session Two Develop the Project Management Plan

Purpose for the Plan Communicates intent of the project Serves as a guide for the project manager Provides project structure Provides documentation Provides baselines

Developing the Project Plan Triple Constraints of Project Management Iron Triangle

Planning Participants ParticipantContribution Project managerLeadership, facilitation, organization, direction, expert judgment Project team membersKnowledge of project work, time estimating, schedule, risk assessment, expert judgment CustomersObjectives, quality requirements, influence on budget and schedule ManagementBudget, resources, project management methodology, quality requirements, project plan approval

Typical Project Plan 1.Project Scope Management Plan 2.Project Change Management Plan 3.Schedule Management Plan 4.Cost Management Plan 5.Quality Management Plan

Typical Project Plan 6.Process Improvement Plan 7.Human Resources Plan 8.Communications Management Plan 9.Risk Management Plan 10.Procurement Management Plan

Typical Project Plan 11.Configuration Management Plan 12.Requirements Management Plan 13.Cost performance baseline 14.Schedule baseline 15.Scope baseline

Project Documents Charter Milestone list Forecasts Activity list Activity attributes Activity cost estimates

Project Documents Project funding requirements Duration estimates Supporting detail for estimates Resource calendars Resource requirements Resource breakdown structure

Project Documents Responsibility assignment matrix Roles and responsibilities Teaming agreement Sellers list Source selection criteria Statement of work

Project Documents Requirements traceability matrix Procurement documents Proposals Contracts Assumption log Issue log

Project Documents Risk register Change log Performance reports Work performance information Work performance measurements Quality control measurements

Project Documents Quality metrics Quality checklists Project organizational structure Stakeholder analysis Stakeholder register

Project Documents Stakeholder requirements Stakeholder management strategy Team performance assessments

Module Four, Session Three Direct and Manage Project Plan Execution

Executing the Project Plan Doing the work to satisfy the project objectives Spending funds to satisfy the project objectives Managing, training, and leading the project team Completing procurement requirements Acquiring, managing, and using resources such as materials, tools, facilities, and equipment to get the project work completed

Executing the Project Plan Managing risks Fleshing approved changes into the project Managing communications Collecting project data on schedules, costs, quality, and overall project progress—and then reporting on these components Completing lessons learned documentation

Corrective Actions Fixing the project Defect repair Defect repair validation

Preventive Actions Safety Training Anticipated problems Risk management

Module Four, Session Four Monitor and Control the Project Work

Monitoring and Controlling the Project Compare actual experiences to project management plan Assess project performance Identify new risks Maintain an information base about the project’s product

Monitoring and Controlling the Project Support status reporting, progress measurement, and forecasting Provide forecasts Monitor approved changes

Performance Reports Current status Significant accomplishments Scheduled activities Forecasts Issues

Enterprise Environmental Factors Government and industry standards Company work authorization system Risk tolerances PMIS

Organizational Process Assets Communication requirements Financial control procedures Issue and defect management procedures Risk control procedures Process measurement database Lessons learned database

Module Four, Session Five Perform Integrated Change Control

Ensure only approved changes Review change requests promptly Manage approved changes Maintain baselines Review, approve, or decline change requests Coordinate changes across project Document change request and impact

Managing Project Change Documented change requests Unapproved changes Scope creep Gold plating

Configuration Management Configuration identification Configuration Status Accounting Configuration verification and audit

Change Control System Proposed change Scope ScheduleContractCosts Project Management Information System Configuration Management System Integrated Change Control Change log Product Scope Project Scope Project Plan WBS Dictionary

Module Four, Session Six Close the Project or Phase

Closing the Project or Phase Contract documentation Enterprise environmental factors Work performance information Deliverables Preparing to archive

Administrative closure Assembling project records Project success or failure Lessons learned documentation Archiving the records

Closing the Contract Product verification Early contract termination Payment terms Formal acceptance documentation Project files Project closure documentation Historical information