1. Copyright © The Conestoga Group 2003 1 PY 674 – Session 2 Review of week 1 material... Chapter 1: PM Overview – Main Text Book / H. Kerzner Ph. D. Focus of chapter is understanding project management Again – What is a project?  “A project can be considered to be any series of activities and tasks that: Have a specific objective to be completed within certain specifications Have defined start and end dates Have funding limits (if applicable) Consume human and non human resources (i.e. money, people, equipment) Are multifunctional (i.e. cut across several functional lines)” PMBOK 1.2 – “A project is a temporary endeavor undertaken to create a unique product, service, or result” Application of Project Management

2. Copyright © The Conestoga Group 2003 2 PY 674 – Session 2 Review of week 1 material... Chapter 1: PM Overview – Main Text Book / H. Kerzner Ph. D. Successful project management can be defined as having achieved the project objectives:  Within time  Within cost (budget)  At the desired performance / technology level  While utilizing the assigned resources effectively  Accepted by the customer Application of Project Management

3. Copyright © The Conestoga Group 2003 3 PY 674 – Session 2 Review of week 1 material... 1.3 PM – Line Manager Interface The PM must control company resources within time, cost, and performance. Most companies have 6 resources: 1. Money 2. Manpower 3. Equipment 4. Facilities 5. Materials 6. Information / Technology Application of Project Management

4. Copyright © The Conestoga Group 2003 4 PY 674 – Session 2 Review of week 1 material... 1.3 PM – Line Manager Interface What are some of the challenges of interfacing with line management? How are they most often overcome? Application of Project Management

5. Copyright © The Conestoga Group 2003 5 PY 674 – Session 2 Review of week 1 material... 1.4 Defining the PM Role The PM is responsible for coordinating and integrating activities across multiple, functional lines. The integration activities include:  Integrating the activities to develop a project plan  Integrating the activities to execute the plan  Integrating the activities to make changes to the plan Application of Project Management

6. Copyright © The Conestoga Group 2003 6 PY 674 – Session 2 Review of week 1 material... 1.9 The PM is THE Planning Agent  THE Major responsibility of the project manager is PLANNING. You must: Complete task definition (WBS / work packages) Resource requirements Major timetable milestones Define the end item quality and reliability requirements The basis for performance measurement Application of Project Management

7. Copyright © The Conestoga Group 2003 7 PY 674 – Session 2 Review of week 1 material... 1.11 Question -  Is there a downside to project management? 1.14 Question –  Can the principles of project management be applied to ANY type of project and in ANY type of industry? Application of Project Management

8. Copyright © The Conestoga Group 2003 8 PY 674 – Session 2 Project Manger’s Tools and Skills Practice Of Project Mgt.

9. Copyright © The Conestoga Group 2003 9 PY 674 – Session 2 Chapter 19: Contracts and Procurement Generally within the US business process the following major cycles are conducted:  The Requirements cycle: Definition of project boundaries  The Requisition cycle: Analysis of Sources  The Solicitation cycle: The bidding process  The Award cycle: Select Contractor / Vendor & award work  The Contract Admin cycle: Managing the subcontractor until completion of the contract. PMBOK Chapter 12 Application of Project Management

10. Copyright © The Conestoga Group 2003 10 PY 674 – Session 2 19.6: Types of Contracts Generally there are 5 types of contracts within the US business process:  Fixed Price (FP)  Cost-Plus fixed fee (CPFF) or percentage fee (CPPF)  Guaranteed Max- shared savings (GMSS)  Fixed-Price incentive fee (FPIF)  Cost-Plus incentive fee (CPIF) PMBOK Chapter 12 Application of Project Management

11. Copyright © The Conestoga Group 2003 11 PY 674 – Session 2 1. Estimate at completion (EAC) is a periodic evaluation of: A. Cost of work completed B. Value of work performed C. Anticipated total cost at project completion D. What it will cost to finish the job Answer – C, When you look at earned value, many of the terms have similar definitions. This could get you into trouble. Since the EAC means the estimate at completion, choice C must be the best answer. Choice D is the definition of ETC, estimate to complete. Practice Of Project Mgt.

12. Copyright © The Conestoga Group 2003 12 PY 674 – Session 2 2. Rearranging resources so that a constant number of resources are used each month is called: A. Crashing B. Floating C. Leveling D. Fast tracking Answer – C, The key to this question is the phrase “constant number used each month.” Only leveling, choice C, has such an effect on the schedule. Practice Of Project Mgt.

13. Copyright © The Conestoga Group 2003 13 PY 674 – Session 2 3. Double declining balance is a form of: A. Decelerated depreciation B. Straight line depreciation C. Accelerated depreciation D. Life cycle costing Answer – C, we need to know that double declining balance is a form of depreciation. That eliminates choice D. We also know that double declining balance is a form of accelerated depreciation. Therefore C is the best choice. Practice Of Project Mgt.

14. Copyright © The Conestoga Group 2003 14 PY 674 – Session 2 4. Which of the following is not needed in order to come up with a project estimate? A. WBS B. Network diagram C. Risks D. Change control procedures Answer – D, A change control procedure is not required to obtain estimates, but without the other three, you cannot develop the estimates. You need the WBS to define the tasks, the network diagram to see the dependencies and the risks to determine contingency. Practice Of Project Mgt.

15. Copyright © The Conestoga Group 2003 15 PY 674 – Session 2 5. Which of the following is an example of a parametric estimate? A. Dollars per module B. Learning bend C. Bottom-up D. CPM Answer – A, Parametric estimates use mathematical model to predict project cost or time. Practice Of Project Mgt.

16. Copyright © The Conestoga Group 2003 16 PY 674 – Session 2 6. A customer has given you a scope of work for a complex, eight-month project that has a few unknowns. The customer has asked you to just “get it done” and only wants to see you at the end of eight months when you deliver the finished project. Under these circumstances, which of the following is the BEST thing to do? A. Complete the project as requested, but verify its scope with the customer occasionally throughout the project B. Complete the project within eight months without contacting the customer during this time C. Ask management to check in with the customer occasionally D. Complete the project, but document that the customer did not want contact Answer – A, It is unethical to ignore scope verification, as it will ad risk that the project will not meet the customer’s needs. Therefore choice A is the best answer. If this is a real world situation, one would probably work with the customer to effectively handle verification so as to cause as little disruption as possible. Practice Of Project Mgt.

17. Copyright © The Conestoga Group 2003 17 PY 674 – Session 2 7. During project execution, a project team delivers a project deliverable to the customer. However, the customer neither acknowledges the deliverable nor replies to the project manager’s request for verification. What is the BEST thing to do? A. Continue with the project B. Document the situation C. Contact management for help D. Call a meeting of the team Answer – C, In this case, you need to bring in bigger guns. Without scope verification at the end of the project phase, you may well be creating the “wrong thing.” This is where management can protect the project. Practice Of Project Mgt.

18. Copyright © The Conestoga Group 2003 18 PY 674 – Session 2 8. Which of the following BEST describes the relationship between standard deviation and risk?  A. Nothing  B. SD tells you if the estimate is accurate  C. SD tells you how unsure the estimate is  D. SD tells you if the estimate includes a pad Answer – C, Choice D can’t be the best answer since there is no such thing as a pad in project management. An estimate might be inflated but it is because of risks, not padding. An estimate can have a wide range (choice B) and still be accurate if the item estimated includes risks. Choice A is not best, as the standard deviation tells you the amount of uncertainty or risk involved in the estimate for the work package or task. Practice Of Project Mgt.

19. Copyright © The Conestoga Group 2003 19 PY 674 – Session 2 9. A project has three critical paths. Which of the following BEST describes how this affects the project? A. It makes it easier to manage B. It increases project risk C. It requires more people D. It makes it more expensive Answer – B, Though having three critical paths COULD later cost more (choice D) or require more people (choice C) the best answer, or the answer that is always definitely true, is B. Because you need to manage three critical paths, there is more risk that something could happen to delay the project. Practice Of Project Mgt.

20. Copyright © The Conestoga Group 2003 20 PY 674 – Session 2 10. Which of the following includes asking team members about the time estimates for their tasks and developing agreement on the calendar date for each task? A. Activity sequencing B. Scheduling development C. Scope definition D. Initiation Answer – B, By the time this activity is taking place, initiation, scope definition and activity sequencing would already be accomplished. Practice Of Project Mgt.