Review-Questions-Pm-1 (2).Pdf

CHAPTER 1 1 Define a project What are five characteristics that help differentiate projects from other functions carried out in the daily operations of the organization? A project is a complex, non ro[.]

1 Define a project What are five characteristics that help differentiate projects from other functions carried out in the daily operations of the organization?

A project is a complex, non-routine, one-time effort limited by time, budget, resource, and specifications It is a temporary endeavor undertaken to create a unique product, service, or result

Differentiating characteristics of projects from other endeavors of the organization are as follows:

 An established objective

 A defined lifespan with a beginning and an end

 Usually, the involvement of several departments and professionals

 Typically, doing something that has never been done before

 Specific time, cost, and performance requirements

2 What are some of the key environmental forces that have changed the way projects are managed? What has been the effect of these forces on the

management of projects?

Some environmental forces that have changed the way we manage projects are the project life cycle, knowledge explosion, triple bottom line (Planet, People, and

Profit), increased customer focus, organization downsizing, technology changes, and time to market

The impact of these forces is more projects per organization, project teams

responsible for implementing projects, accountability, changing organization

structures, need for rapid completion of projects, linking projects to organization strategy and customers, prioritizing projects to conserve organization resources, and alliance with external organizations

3 Describe the four phases of the traditional project life cycle Which phase do you think would be the most difficult one to complete?

The project life cycle typically passes sequentially through four stages: defining, planning, executing, and closing The starting point begins the moment the project is given the go-ahead Project effort starts slowly, builds to a peak, and then declines to delivery of the project to the customer

1 Defining stage Specifications of the project are defined; project objectives are established; teams are formed; major responsibilities are assigned

2 Planning stage The level of effort increases, and plans are developed to determine what the project will entail, when it will be scheduled, whom it will benefit, what quality level should be maintained, and what the budget will be

3 Executing stage A major portion of the project work takes place—both physical and mental The physical product is produced Time, cost, and specification measures are used for control

4 Closing stage Closing includes three activities: delivering the project product to the customer, redeploying project resources, and conducting a post-project review

Delivery of the project might include customer training and transferring documents Redeployment usually involves releasing project equipment/materials to other

projects and finding new assignments for team members Post-project reviews

include not only assessing performance but also capturing lessons learned

The project execution phase is often the longest and most complex stage in the

project life cycle because it involves carrying out the details of your project charter,

in order to deliver your products or services to your clients or internal stakeholders If not managed properly, the team might get off track, run into communication

problems, or stop following the carefully outlined procedures and schedules

4 What kinds of projects is Agile PM best suited for and why?

5 The technical and sociocultural dimensions of project management are two sides of the same coin Explain

The technical and sociocultural dimensions of project management are two sides to the same coin because successful project managers are skillful in both areas The technical dimension represents the “science” of project management, while the sociocultural dimension represents the “art” of managing a project The point is successful PM's need to be very comfortable and skillful in both areas

1 Describe the major components of the strategic management process

1 Defining the mission of the organization

2 Analysis of the external and internal environments

3 Setting SMART Objectives

4 Formulating strategies to reach objectives

5 Implementing strategies through projects

2 Explain the role projects play in the strategic management process

Strategy is implemented primarily through projects Successful implementation of projects means reaching the goals of the organization and thus meeting the needs of its customers

3 How are projects linked to the strategic plan?

Because they represent how a strategy is to be implemented The best way to

maximize the organization's scarce resources is through a priority scheme which allocates resources to a portfolio of projects which balance risk and contribute the most to the strategic plan

4 The portfolio of projects is typically represented by compliance, strategic, and operations projects What impact can this classification have on project

selection?

By carefully aligning your project proposal with one classification, the chances of it being selected may be increased Typically, senior management allots budgets for each category independent of actual project selection Knowledge of funds available, risk portfolio, senior management bias, etc may cause some to attempt to move their project proposal to a different classification to improve the chances of the project being selected

5 Why does the priority system described in this chapter require that it be open and published? Does the process encourage bottom-up initiation of projects? Does it discourage some projects? Why?

An open, published priority system ensures projects are selected on the basis of their contribution to the organization If the priority system is not open, squeaky wheels, strong people, and key departments all get their projects selected for the wrong reason

Bottom-up is encouraged because every organization member can self-evaluate their project idea against priorities - and so can everyone else in the organization Also, involving people who actually do the work in making activity estimates gains buy-in and credibility to the estimate

To some, this approach may look intimidating but rarely is in practice, it does

discourage projects that clearly will not make positive, significant contributions to the organization vision

6 Why should an organization not rely only on ROI to select projects?

Because financial return, while important, does not always reflect strategic

importance The prevailing thinking is that long-term survival is dependent upon developing and maintaining core competencies Companies have to be disciplined in saying no to potentially profitable projects that are outside the realm of their core mission This requires other criteria be considered beyond direct financial return

7 Discuss the pros and cons of the checklist versus the weighted factor method of selecting projects

Checklist model Multi-weighted scoring

model Pros Allow great flexibility in

selecting among many different types of projects and are easily used across different divisions and locations

- Allow for comparison with other potential projects

- Allow a team to rank certain criteria as more important than others

Cons - Fails to answer the

relative importance or value of a potential project to the organization and fails to allow for comparison with other potential projects

- Potential opportunity for power plays, politics, and other forms of manipulation

- Requires sufficient weighting of criteria

- Hard to conceptualize abstract concepts

- Rigidity in decision making

- Limited view of scope

1 What are the relative advantages and disadvantages of the functional, matrix, and dedicated team approaches to managing projects?

Functional approach

Matrix approach Dedicated team

approach Advantages No change

Flexibility In-depth expertise Easy post-project transition

Efficient Strong project focus Easier post-project transition

Flexible

Simple Fast Cohesive Cross-functional integration

Disadvantages Lack of focus

Poor integration Slow

Lack of ownership

Dysfunctional conflict (tension between functional and project

managers) Infighting Stressful Slow

Expensive Internal strife Limited technological expertise Difficult post-project transition

2 What distinguishes a weak matrix from a strong matrix?

Weak Matrix = Project managers are limited to coordinating project activities;

functional managers are responsible for managing their segment of the project;

Project manager has little authority

Strong Matrix = Project manager has the most control; Functional manager has

control over his/her people and is consulted on a need basis; sometimes a functional manager's department will serve as a "subcontractor"

3 Under what conditions would it be advisable to use a strong matrix instead of a dedicated project team?

- When the organization cannot afford to have people work full time on the project

- When the culture of the organization supports dual authority structure, collaboration and innovation

4 How can project management offices (PMOs) support effective project

management?

Project management offices can support effective project management through

different performing models:

1 PMOs as a Weather station: Track and monitor project performance (time, cost, quality, etc.)

2 PMOs as a Control tower: Improve project execution

3 PMOs as a Resource pool: Provide project management training & consulting services to support managers and their teams

4 PMOs as a Command and control center: Have direct authority over projects, act

as a key decision maker across the life of a project, makes sure the project is aligned with business objectives and conforms to accepted practices

5 Why is it important to assess the culture of an organization before deciding what project management structure should be used to complete a project?

The culture of the organization can impact the effectiveness of different project management structures

An organization’s culture:

- Provides a sense of identity for its members

- Helps legitimize the management system of the organization

- Clarifies and reinforces standards of behavior

- Helps create social order within an organization

Organizational cultures that do not encourage teamwork, collaboration, and cross functional integration need a stronger project management structure such as a project team or project matrix

6 Other than culture, what other organizational factors should be used to

determine which project management structure should be used?

Two main considerations:

- The percentage of core work that involves projects: Organizations that evolve around projects should consider a projectized form of structure Organizations that have mainstream operations and projects should use a matrix structure

- Resource Availability: When resource availability is limited then a matrix structure should be used that would allow sharing personnel across projects & operations Seven other factors that should influence the choice of the project structure:

- Size

- Strategic importance

- Novelty

- Integration

- Environmental complexity

- Budget and time constraints

- Stability of resource requirements

7 What do you believe is more important for successfully completing a project— the formal project management structure or the culture of the parent

organization?

I believe that both can be argued

Culture impacts behavior of employees more so than the structure Having a strong culture in a work environment can help compensate for weaknesses of the structure Even though there is a formal layout for the project management structure, if

employee culture is poor the project may not be completely well or at all

1 What are the eight elements of a typical scope statement?

1 Project Objective

2 Project scope description

3 Justification

4 Deliverables

5 Milestones

6 Technical Requirements

7 Limits and Exclusions

8 Customer Review

2 What questions does a project objective answer? What would be an example of

a good project objective?

The project objective answers the questions of what, when, how much, and at times, where

For example, as a result of extensive market research a computer software company decides to develop a program that automatically translates verbal sentences in

English to Russian The project should be completed within three years at a cost not

to exceed $1.5 million

3 What does it mean if the priorities of a project include Time-constrain, Scope-accept, and Cost-enhance?

Constrain: the project has a deadline and needs to be completed by a specific set date Accept: we are going to accept that the scope of this project may have to be reduced Enhance: we are going to optimize cost or reduce costs (add value to the project)

4 What kinds of information are included in a work package?

Work packages are short duration tasks that have a definite start and stop point, consume resources, and represent cost It is the lowest level of the WBS Each work package is a control point

Each work package in the WBS

1 Defines work (what)

2 Identifies time to complete a work package (how long)

3 Identifies a time-phased budget to complete a work package (cost)

4 Identifies a resource needed to complete a work package (how much)

5 Identifies a single person responsible for units of work (who)

6 Identifies monitoring points for measuring progress (how well)

5 When would it be appropriate to create a responsibility matrix rather than a full-blown WBS?

A responsibility matrix is used by project managers and task force leaders of small projects that do not warrant elaborate WBS

6 How does a communication plan benefit the management of projects?

The purpose of a project communication plan is to express what, who, how, and when the information will be transmitted to project stakeholders so schedules, issues, and action items can be tracked

Communication is a key component in coordinating and tracking project schedules, issues, and action items The plan maps out the flow of information to different stakeholders and becomes an integral part of the overall project plan

1 Why are accurate estimates critical to effective project management?

Without accurate time and cost estimates project control is ineffective Inaccurate estimates can make the difference between profit or loss

 Estimates are key inputs to project planning & control

 Estimates support good decisions

 Estimates are used to determine project duration and cost

 Estimates are used to develop cash flow needs

 Estimates are used to develop time-phased budgets and establish the

project baseline

 Absence of estimates results in inaccuracies which result in time and cost under/overruns

2 How does the culture of an organization influence the quality of estimates?

Organization culture can influence project estimates depending on the importance the organization places on estimating

- Use of top-down versus bottom-up estimating can influence estimates

- How padding is handled strongly influences estimates

- How organization politics is tolerated can severely influence estimates

3 What are the differences between bottom-up and top-down estimating

approaches? Under what conditions would you prefer one over the other?

Top-down estimates are typically used in the project conceptual phase, and

depend on surrogate measures such as weight, square feet, ratios Top-down methods do not consider individual activity issues and problems Top-down estimates are good for rough estimates and can help select and prioritize projects Conditions for Preferring Top-Down

1 Strategic Decision Making;

2 High uncertainty;

3 Internal, small project;

4 Unstable Scope;

Bottom-up time and cost estimates are usually tied directly to the WBS and a work package These estimates are made by people familiar with the task, which helps to gain buy-in on the validity of the estimate Use of several people should improve the accuracy of the estimate Bottom-up estimates should be preferred if time to estimate is available, estimating cost is reasonable, and accuracy is

important

Conditions for Preferring Bottom-Up

1 Cost and time important;

2 Fixed-priced contract;

3 Customer wants details;

4 What are the major types of costs? Which costs are controllable by the project manager?

Direct, direct overhead, and general and administrative costs

Direct costs are controllable by the project manager Direct overhead and general and administrative costs are only controllable in the sense that if the resource or project is finished early or late the costs will continue for the duration of the project

5 Why is it difficult to estimate mega project (e.g., airport, stadium) costs and benefits?

First, the time horizon of 2-5 years to complete large, complex projects makes it difficult to accurately forecast costs and user needs

Second, the sheer complexity of these kinds of projects make it difficult to

accurately estimate all of the costs

Third, the severity of the risks involved are significant When things go wrong, they go wrong is a big way While such conditions would suggest a very

conservative estimate, the opposite occurs Either blind enthusiasm or calculated

deception is used to promote an exaggerated case for the project

6 Define a white elephant in project management Provide a real-life example

White elephant: Over budget, under value, high cost of maintaining (exceeds the benefits received) projects

Example: The resettlement house project in Tran Phu ward (Hoang Mai district) has been basically completed but has not been inhabited for many years, the outside is still surrounded by corrugated iron The central flower garden area of the resettlement house project is used by people as a place to raise chickens and ducks As observed, up to now, some degradation points have appeared on the building