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The document provides notes on various project management topics including integration management, scope management, time management, and cost management. Some key points covered include:
- The project plan is a single approved document that guides project execution, monitoring, control and closure.
- The work breakdown structure decomposes work down to the smallest level of work packages. The project scope statement includes a detailed description of the project scope.
- The critical path is determined by drawing the project network diagram, listing all paths, and adding the values along each path. The float is the amount of time an activity can slip without moving the critical path.
- Planned value is calculated by multiplying the budgeted at completion by the planned percent complete. The
The document provides notes on various project management topics including integration management, scope management, time management, and cost management. Some key points covered include:
- The project plan is a single approved document that guides project execution, monitoring, control and closure.
- The work breakdown structure decomposes work down to the smallest level of work packages. The project scope statement includes a detailed description of the project scope.
- The critical path is determined by drawing the project network diagram, listing all paths, and adding the values along each path. The float is the amount of time an activity can slip without moving the critical path.
- Planned value is calculated by multiplying the budgeted at completion by the planned percent complete. The
The document provides notes on various project management topics including integration management, scope management, time management, and cost management. Some key points covered include:
- The project plan is a single approved document that guides project execution, monitoring, control and closure.
- The work breakdown structure decomposes work down to the smallest level of work packages. The project scope statement includes a detailed description of the project scope.
- The critical path is determined by drawing the project network diagram, listing all paths, and adding the values along each path. The float is the amount of time an activity can slip without moving the critical path.
- Planned value is calculated by multiplying the budgeted at completion by the planned percent complete. The
Integration Management Producing a project plan may BES !e descri!ed as creating a document t"at guides project plan e#ecution$ "e project plan is a single appro%ed plan t"at dri%es e#ecution& monitoring and control& and closure$ Project Management plan updates are N' an output of (e%elop Project Plan$ Project Management plan is created in (e%elop Project Plan$ Project Management plan contains t"e met"ods for processing c"anges to t"e project$ "e project c"arter is de%eloped after t"e project statement of work and !efore t"e project management plan$ "e PMIS is a sc"eduling tool& an information distri!ution system and a system for collecting information from project team mem!ers$ It is not a system for identifying stake"olders$ (irect and Manage Project E#ecution is t"e process w"ere defects are repaired$ Project Management plan is a single document to guide project e#ecution& monitoring ) control and closure$ C"ange Control meetings are "eld as part of Perform Integrated C"ange Control process$ C"ange *e+uests flow out of Monitor and Control Project ,ork into Perform Integrated C"ange Control& w"ere t"ey are e%aluated in meetings$ "e project c"arter does not specify anyt"ing a!out contracts$ A contract wit" your customer would "a%e !een an input into t"e (e%elop Project C"arter process& and any contracts you may use during procurement wont !e identified until later in t"e project$ "e project manager must !e pro-acti%e and influence t"e factors t"at cause c"ange$ "at is one of t"e key tenets of monitoring and controlling processes in general and Perform Integrated C"ange Control in particular$ "e project management plan is made up of t"e ot"er planning outputs& for e#ample. risk& cost& time& +uality& /*$ Appro%ed c"anges t"at are made to t"e project get factored !ack into t"e !aseline$ ,"en c"anges are appro%ed and made to t"e project& t"ey s"ould !e incorporated into t"e project !aseline$ ,ork Performance Information is used pro%ide information on resource utili0ation& w"ic" acti%ities "a%e started and w"at costs "a%e !een incurred on t"e project$ It does not "elp in identifying defects$ Prioriti0ing t"e c"anges is t"e jo! of t"e PM during project e#ecution$ 1ou do not want to distract t"e team at t"is point$ If pre%ious projects in t"e organi0ation were completed in "alf t"e time t"at your project "as taken& t"en t"e BES t"ing to do is look for "istorical information on t"e pre%ious projects to understand t"em !etter$ As a PM& always e%aluate t"ings t"oroug"ly !efore making any c"anges$ 1ou need to know "ow your project is going to !e affected !efore taking any action$ C"ange Control Board meets to e%aluate c"ange re+uests$ "ey do t"is during t"e process of Integrated C"ange Control$ If t"e company policy states t"at all c"anges t"at increase t"e projects !udget must !e signed off !y t"e project office& t"en you s"ould direct all t"e c"anges to t"e project office regardless of t"e circumstances$ "e person or group responsi!le for e%aluating c"ange on a project is t"e C"ange Control Board$ "e deli%era!les are t"e key outputs of (irect and Manage Project E#ecution$ Scope Management (isagreements o%er project scope s"ould !e resol%ed in fa%our of t"e customer$ Acti%ity se+uencing is not tackled as part of t"e work !reakdown structure$ "e ,BS "as no particular se+uence to it and it is not decomposed down to acti%ity le%el$ "e lowest le%el of ,BS would also !e t"e smallest representation of work$ If t"e ,BS was not created for a project& t"en PM s"ould stop project work until it "as !een created$ "e project manager is responsi!le for %erifying t"e product wit" t"e key stake"olders& t"e sponsor and t"e customer$ "e project scope statement is created as part of t"e (efine Scope process$ Project Scope Statement is a planning output$ "e Project Scope Statement needs to include a detailed description of t"e scope$ "e preliminary scope statement contains a "ig" le%el description of t"e scope& !ut t"e project scope statement is detailed$ "e most important part of 2erify Scope is gaining formal acceptance of t"e project deli%era!les from t"e customer$ 'rgani0ational process assets include t"ings like templates& financial control procedures and standardi0ation guidelines$ Project Management Information system is classified as an enterprise en%ironmental factor since it is part of your en%ironment$ "e re+uirements documentation is N' part of t"e scope !aseline$ Project Scope statement& t"e ,BS and ,BS dictionary are all part of t"e scope !aseline$ *e+uirements management plan contains a plan for "ow t"e c"anges will !e "andled$ If too many c"anges are pouring in& it is likely t"at t"e re+uirements management plan was not %ery well defined$ It is t"e sponsors jo! to pay for t"e project and to accept t"e product$ If a work package were c"anged& t"at would most likely alter t"e scope !aseline& and information on "ow to go a!out t"is would !e found in t"e scope management plan& N' t"e ,BS dictionary$ "e ,BS dictionary contains attri!utes a!out eac" work package suc" as an e#planation of t"e work package& w"o is responsi!le for it and a cost account code$ Customer s"ould not !ypass t"e PM to aut"ori0e c"anges directly$ It is t"e PMs jo! to aut"ori0e c"anges on t"e project$ "e customer accepts t"e scope of t"e product in 2erify Scope$ "e Nominal 3roup ec"ni+ue is a met"od used to promote creati%ity in Collect *e+uirements process& and t"e two outputs t"at matc" t"e process are t"e re+uirements documentation and re+uirements management plan$ If you identify two key areas w"ere c"anging t"e scope of t"e product would deli%er significantly "ig"er %alue for t"e customer$ 1ou s"ould discuss t"e c"anges wit" t"e customer$ "e re+uirements documentation is typically created +uite early on t"e project$ It would !e created well !efore t"e work !reakdown structure and t"e scope !aseline$ "e final product of t"e project s"ould include all t"e functionality and only t"e functionality documented in t"e scope !aseline$ "e Project Manager needs to !e pro-acti%e and influence t"e root causes of c"ange$ A c"ange may deli%er "ig" %alue& !ut also introduce too muc" risk or cost& or it can delay t"e project unaccepta!ly$ ime Management Acti%ity lists from pre%ious projects make an e#cellent tool to "elp you ensure t"at you are considering all acti%ities$ Any "istorical information is t"oug"t of as an organi0ational process asset$ "e Sc"edule Management plan is part of t"e project plan$ It is t"e !est source of information on "ow c"anges to t"e sc"edule are "andled$ If you are creating duration estimates for a sc"edule acti%ity& t"e following tools or tec"ni+ues are appropriate to use. E#pert 4udgement& *eser%e Analysis and "ree-point estimating$ Milestone c"arts s"ow t"e "ig"-le%el status& w"ic" would !e appropriate for presentation to senior management$ Early 5inis" is typically depicted in a nodes upper rig"t +uadrant& w"ile t"e 6ate 5inis" is in t"e lower rig"t$ "e slack or float is t"e amount of time an acti%ity may !e delayed wit"out affecting t"e critical pat"$ Cras"ing adds more resources to an acti%ity$ "is usually increases cost due to t"e law of diminis"ing returns w"ic" predicts t"at 78 people usually cannot complete an acti%ity in "alf t"e time t"at 9 people can$ "e sa%ings from cras"ing are rarely linear$ Analogous estimates use actual costs from pre%ious projects to produce estimates for a similar project$ "e sponsor "as accepted a re%ised due date from t"e project manager !ud did not allow any increase in spending$ "e BES t"ing for t"e PM is to 5ast rack t"e sc"edule$ 5ast tracking does not directly add cost to t"e project$ "e critical c"ain met"od uses !uffers& w"ic" are non-working times& to "elp pre%ent t"e acti%ities t"emsel%es from slipping$ "e project network diagram s"ows duration and dependencies& w"ic" would "elp you calculate t"e critical pat"$ "e critical pat" is determined in t"ree steps$ "e first step is to draw out t"e project network diagram$ "e ne#t step is to list out all of t"e pat"s t"roug" t"e network and t"e last step is to add up all of t"e %alues associated wit" eac"$ "e float or slack of an acti%ity is t"e amount of time it can slip wit"out mo%ing t"e critical pat"$ "e formula for "ree-Point estimate is called PE*& it is :Pessimistic ; <#*ealistic ; 'ptimisitic=>?$ ,"at-If Analysis can take on many forms& !ut t"e form you are most likely to see on t"e e#am is Monte Carlo Analysis$ It t"rows a large num!er of scenarios at t"e sc"edule to see w"at would "appen if one or more !ad scenarios occurred$ "e acti%ity attri!utes simply e#pand on t"e information for eac" acti%ity in t"e acti%ity list$ "e critical pat" is t"e series of acti%ities& w"ic" if delayed& will delay t"e project$ 'ne of t"e important tools used in Estimate Acti%ity (urations is parametric estimates$ ,BS nodes are decomposed into work packages first$ "e sc"edule acti%ities are decomposed from work packages$ Cost Management Planned %alue is calculated !y multiplying t"e Budgeted At Completion !y planned @ compelte$ If t"e CPI is 8$7& t"is indicates t"at t"e project is performing e#tremely poorly on cost$ (etermine Budget takes t"e acti%ity cost estimates and uses t"em :along wit" ot"er inputs= to create a !udget$ ,it" Benefit Cost *atios& t"e !igger t"e !etter$ "e difference !etween Present 2alue and Net Present 2alue is t"at P2 tells t"e e#pected %alue of t"e project in todays dollars and NP2 tell todays %alue of t"e project !ut su!tracts t"e cost after calculating t"e present %alue$ 'rder of Magnitude estimates are -98@ to ;788@$ "e se+uence of processes is. Create ,BS& t"en Estimate Costs and t"en (etermine Budget$ If your project team mem!er "as made a c"ange wit" your appro%al& "e is engaged in Control Costs process$ In case of Net Present 2alues& t"e cost is already factored in$ "e !igger t"e NP2& t"e !etter$ Parametric modeling is common in some industries& w"ere you can descri!e t"e project in detail and t"e modeling tool will "elp pro%ide estimates !ased on "istorical information& industry standards$ If you disco%er t"at your construction project is going to "a%e serious cost o%erruns& t"e 5I*S course of action is to e%aluate t"e cause and si0e of t"e o%errun$ 1ou need to %erify t"e information yourself !efore you take any actions$ Sc"edule 2ariance is calculated !y su!tracting E2 from P2$ S2A E2- P2$ Estimate to complete indicates t"e projected remaining amount t"at will !e spent& !ased on past performance$ If a project "as a CPI of 8$B9 and an SPI of 7$87& it means t"e project is progressing faster t"an planned and costing more t"an planned$ 'pportunity cost is simply "ow muc" !enefit you are passing up$ "e Cost Baseline is used to track cost performance !ased on t"e original plan plus appro%ed c"anges$ Earned %alue is defined as t"e %alue of all work completed to t"is point$ "e Estimate at Complete is w"at we e#pect to "a%e spent at t"e end of t"e project$ It is calculated !y taking !udgeted at complete and di%iding it !y cost performance inde#$ Cuality Management Audits are a tool of Perform Cuality Assurance$ If you were using a fis"- !one diagram to determine t"e root causes of pro!lems& you would !e in Perform Cuality Control$ Acceptance is an output of Perform Cuality Control$ Plan Cuality includes all of t"e following outputs. Cuality Management Plan& 'perational definitions and C"ecklists$ "e mean represents t"e a%erage of all of t"e data points s"own on t"e c"art& calculated simply !y adding t"e %alues toget"er and di%iding !y t"e num!er of %alues$ Audits are a tool of Perform Cuality Assurance t"at c"ecks to see if t"e process is !eing followed$ Inspection is a tool of Perform Cuality Control$ If two e%ents "a%e no !earing on eac" ot"er t"ey are statistically independent$ "e BES tool to use to look for results t"at are out of control is a Control C"art$ It depicts w"et"er a process is in or out of control$ A Pareto C"art ranks defects from greatest to least& s"owing you w"at s"ould get t"e most attention$ P"ysical inspection of a work result "appens during t"e Perform Cuality Control process$ Benc"marking takes results from pre%ious projects and uses t"em to "elp measure +uality on your project$ Benc"marks gi%e you somet"ing against w"ic" you can measure$ otal Cuality Management stresses& amongst ot"er t"ings t"at e%eryone contri!utes to t"e +uality of t"e product and t"e process$ Si# Sigma represents BB$BBB??@ of all work results t"at will !e of accepta!le +uality in t"e manufacturing process$ Plan Cuality s"ould always "appen first& Perform Cuality Assurance and Perform Cuality Control would come after t"e +uality management plan is in place$ If no organi0ational +uality policy e#ists& you s"ould de%elop one for t"e current project$ "e +uality specification is t"e customers +uality re+uirements$ Audits& part of t"e Perform Cuality Assurance process& re%iew t"e process and make sure t"at t"e process is !eing followed$ An organi0ation t"at practises just in time :4I= does not keep spare in%entory on "and$ Instead& in%entory is ordered so t"at t"e parts arri%e only slig"tly !efore t"ey are needed$ *e-work and increase cost and risk are likely outcomes of low +uality$ Statistical sampling :also known as random sampling= is normally used on sample of product out of possi!ly millions t"at are produced to perform +uality control$ /uman *esource Management Smoot"ing occurs w"en t"e person trying to resol%e t"e conflict asks e%eryone to focus on w"at t"ey agree upon and diminis"es t"e items on w"ic" t"ere is disagreement$ "e functional manager "as resource responsi!ilities in a matri# organi0ation$ "e PM must work wit" functional manager to secure resources for t"e project$ Punis"ment is t"e 6EAS desira!le form of pro!lem-sol%ing tec"ni+ue$ It is not a form of power$ "eory D managers !elie%e t"at people cannot !e trusted and must !e watc"ed and managed constantly$ "e "uman resource plan is created during t"e /uman *esource Planning process$ Pro!lem-sol%ing :also referred to as confrontation= is getting to t"e root cause of t"e pro!lem and is t"e !est way to produce a lasting result and a real solution$ "e project sponsor pro%ides t"e funds for t"e project$ "e four processes of /* Management are Plan /uman *esources& Ac+uire Project eam& (e%elop Project eam and Manage Project eam$ *oles and *esponsi!ilities assignment is N' an input into (e%elop /uman *esource Plan$ Information seeker is a positi%e>constructi%e project team role$ Maslows /ierarc"y of Needs t"eory states t"at psyc"ological needs for growt" and fulfillment can !e met only w"en lower-le%el p"ysical or security needs "a%e !een fulfilled$ Successful team !uilding !egins early in project de%elopment& !ut it is a continuous process t"roug"out t"e life of t"e project$ eam Building must !e carried out under t"e direction of a strong leader$ "e PM "as t"e only project role t"at allows for regular& direct interaction wit" t"e team$ Co-location is t"e practice of locating all team mem!ers in a central location$ *eport eam Performance is not a real process$ A project coordinator "as some aut"ority and some decision making power& !ut less t"an a project manager$ Encouragement is N' a tool used in (e%elop Project eam$ In a matri# organi0ation& team mem!ers report to !ot" t"e project manager and t"e functional manager$ "is sometimes causes confusion and leads to conflict$ In a functional organi0ation& t"e PM "as low aut"ority o%er resources$ 3round rule may !e uni+ue to t"e project and t"ey certainly dont "a%e to !e t"e same across all projects in an organi0ation$ Communications Management Plan Communication is t"e process for determining "ow t"e o%erall communication process will !e carried out$ It is t"e general plan for communications$ In t"e communication model& it is t"e sender t"at encodes and t"e recei%er decodes t"e message$ Meetings are classified as informal %er!al$ (istri!ute Information is an e#ecuting process& it may in%ol%e une#pected re+uests from stake"olders and it carries out t"e communication plan$ Communication on sc"edule slippage& cost o%erruns and ot"er major project statuses s"ould !e formal and in writing$ Eac" issue on a project s"ould !e assigned to a single owner and !e assigned a target completion date$ Most of a persons communication takes place non-%er!ally$ It is !ody language t"at carries muc" of t"e message$ 5ace-to-5ace communication is t"e most effecti%e means of resol%ing conflict$ 1our communication skills are used as a tool in (istri!ute Information$ "e e#pected response you will recei%e is not part of t"e communications management plan$ "e communications management plan focuses on "ow you will communicate stake"olders and not "ow t"ey will communicate to you$ Earned 2alue Analysis is a communication tool& and its all a!out "ow t"e project is done against t"e plan$ A project manager s"ould always communicate good information and s"ould always report t"e trut"$ 3ood communication skills are t"e most important skill a project manager can "a%e$ PMs spend more time communicating t"an anyt"ing else$ Noise is anyt"ing t"at interferes wit" t"e transmission and understanding of a message$ "e stake"olders communication needs are all contained in t"e communications management plan$ *eport Performance uses t"e tool of forecasting and produces t"e performance reports$ "ese performance reports often contain t"e estimate at complete and estimate to complete& as well as t"e cost and sc"edule performance inde#es$ 6essons 6earned focuses on %ariances from t"e plan w"at would !e done differently in t"e future in order to a%oid t"ose %ariances$ Earned 2alue Analysis is a tool of *eport Performance& since earned %alue analysis factors in t"e difference !etween w"at was planned and t"e work t"at was actually accomplis"ed$ "is information can t"en !e distri!uted out to appropriate stake"olders$ *isk Management If you are !uilding a structure w"ere t"ere is a significant risk of eart" +uakes and you end up utilising a type of foundation t"at is eart"+uake resistant$ "is is an e#ample of *isk Mitigation$ "e pro!a!ility impact matri# :PIM= deri%es a risk score !y multiplying t"e pro!a!ility of t"e risk !y its impact :!ot" num!ers are estimated=$ "e resulting score may !e used to "elp prioriti0e t"e risk register$ If t"ere is risk t"at costs could o%errun on a component$ "en t"e BES strategy is to outsource t"e de%elopment of t"e component to deal wit" t"e risk$ Planning meetings and analysis is a tool of t"e process of Plan *isk Management$ Cuantifying t"e risks !y seeking to assign a dollar or time estimate to t"em is an e#ample of Perform Cuantitati%e *isk Analysis$ *ecommended correcti%e action is t"e result of monitoring and controlling processes$ /istorical *ecords from similar projects would pro%ide you wit" t"e !est source of information on potential risks$ 'ne of t"e t"ings Monte Carlo Analysis would s"ow you is w"ere sc"edule risk e#ists on t"e project$ A risk management plan will outline "ow all risk planning acti%ities and decisions will !e approac"ed$ Met"ods of identification& +ualification& response planning and control will all follow t"e de%elopment of risk management plan$ Plan *isk Management is not planning for actual risks. it is t"e process of deciding "ow all risk planning acti%ities and decisions will !e approac"ed$ It is t"e plan for "ow to plan$ "e risk register is t"e only output of Identify *isks& and it is updated in Perform Cualitati%e *isk Analysis& Perform Cuantitati%e *isk Analysis& Plan *isk *esponses and Monitor ) Control *isks$ "ere are t"ree identified strategies for dealing wit" negati%e risk$ "ey are to mitigate risk& transfer risk and a%oid risk$ "e tool of risk pro!a!ility and impact assessment is a tool of Perform Cualitati%e *isk Analysis$ "e process of identifying& analy0ing and responding to risk is t"e definition of risk management$ Monte Carlo Analysis mig"t !e useful in re%ealing sc"edule risks& it would not !e useful for gaining e#pert opinion$ "e risk management plan does not contain identified risks$ "e identified risks will !e listed in risk register& produced after t"e plan risk management process$ *isks e%ents are& !y definition& uncertainties$ "ese could eit"er !e positi%e or negati%e$ Creating a workaround for t"e risk is N' a %alid way to reduce risk$ "e workaround is w"at you do if t"e risk occurs& it does not reduce t"e risk$ Insuring against t"e risk or selecting a certain contract type are all ways to reduce t"e risk$ Procurement Management 5i#ed price is t"e "ig"est risk to t"e seller and t"e seller must !ear t"e risk of any cost o%erruns$ E#pert judgement is t"e fa%oured tec"ni+ue in project management and it is used in t"e process of Conduct Procurements$ Make or Buy Analysis is a tool used during t"e Plan Procurements process w"ere you are deciding w"ic" deli%era!les s"ould !e procured and w"ic" s"ould !e created internally$ Plan Procurements& Conduct Procurements& Administer Procurements and Close Procurements is t"e correct se+uence$ If t"e scope of work is not completely defined& it would !e !est to use ime and Material contract$ If a component w"ic" is protected !y a patent is only a%aila!le t"roug" a single supplier& t"en it s"ould !e purc"ased from t"e sole supplier wit"out "olding a !idders conference$ If you need to significantly lower t"e +uantities on a contract due to c"ange in project scope$ 1ou s"ould send a formal& written notice t"at t"e contract "as !een c"anged to t"e supplier$ If a project "as !een terminated immediately due to a cancellation !y t"e customer$ "e 5I*S action to take is to start t"e process of Close Procurements$ Proposals are e%aluated from prospecti%e sellers in Conduct Procurements$ Proposals are !roug"t into t"is process& screened& weig"ted& rated and e%aluated against t"e criteria$ If you are in%ol%ed in formal procurement& you s"ould make e%ery effort to keep sellers on e+ual footing$ In contract negotiations& t"e most important point is to create a deal t"at e%eryone feels good a!out$ 'ne of t"e acti%ities in Administer Procurements is to pay seller in%oices or generate in%oices if you are t"e seller$ In a ime ) Material contract& t"e !uyer "as to pay t"e seller for all time and materials& and often it in%ol%es an incomplete scope definition$ "erefore& t"e !uyer is t"e one most at risk$ Procurement documents s"ould !e rigid enoug" to get responses to t"e same scope of work and fle#i!le enoug" to allow sellers to interject t"eir own good ideas and creati%ity$ Procurements statements of work s"ould !e as complete and concise as possi!le$ At a minimum& t"ey s"ould contain enoug" information for t"e seller to determine if t"ey are +ualified to do t"e work$ If t"e scope of work is not defined completely and !uyer wants you to !egin work& in t"is case& t"e project is at "ig"er risk and a time ) materials contract s"ifts muc" of t"at risk !ack to t"e !uyer$ "e actual work packages are completed during t"e E#ecuting process group$ Procurement performance re%iews are a tool of Administer Procurements& w"ere t"e !uyer arranges a meeting wit" t"e seller to re%iew t"e sellers performance against t"e plan$ If t"e scope of t"e contract is complete& no ot"er terms were !reac"ed and no claims against t"e contract "a%e !een filed& t"en t"e contract is complete$
The Complete Project Management Exam Checklist: 500 Practical Questions & Answers for Exam Preparation and Professional Certification: 500 Practical Questions & Answers for Exam Preparation and Professional Certification