pm Flashcards
which are the possible definitions of project managment?
1) a TEMPORARY endeavor undertaken to create a UNIQUE product, service, or result
(US Project Management Institute)
2) UNIQUE process, undertaken to achieve an objective consisting of a set of coordinated and controlled activities with start and finish dates, conforming to specific requirements,
including the constraints of time, cost and resources
(British Standards Institute)
3) TEMPORARY management environment, usually undertaken in phases, created for the purpose of delivering one or more business outputs or outcomes
(British Standards Institute)
Where are the projects?
projects are everywhere, in every business functions, sectors and geographical areas. but eveyone is different in size and type and they are not managed all in the same way
which are the trend of PM in the last years?
more and more attention is payed to PM and it is becoming a serious discipline with professional associations such as APM and PMI. The growth of pmi memberships in the last years demonstrates the growth of interest in PM.
which are the main reasons that can lead to the failure of a project?
Projects are different from routine activities since they are unique and specific. The main reasons that can lead to their failures are:
1) overshoot the deadline: is the project on time?
2) go over budget: is the project on or under buget?
3) not fully meet the specifications: does the project meet the agreed-upon specifications to the satisfaction of the stakeholders?
Look in the slides to see some project’s failures. Projects often go wrong or simply not as expected.
which is the typical model of projects?
it s the waterfall model which cames from engineering. the lifecycle phases are common to many types of projects but the waterfall model is not helpul for every projects (ex. software projects)
which is the working definition of project?
A problem with a desired end-result scheduled for completion, requiring
unique and non-routine activities
which is the difference between activities, work packages and programme?
Activities: set of tasks comprising a project
Work Packages: division of tasks
Programme: a substantial, long-range objective that is broken down into a set of projects
which is the working definition of project management?
The science and art of solving the problem within predetermined time and
resource parameters
Shouldering just enough risk to escape with your career intact!!!
which is the aim of the module?
- To understand the scope and variety of project types
- To understand key variables in project management
–To learn methods, techniques and approaches which are important in successfully managing projects (to meet objectives in a wide range of contexts)
we’ll also discover:
- theories and models
- success factors and sources of risk
- principles and assumptions
- application of standards and techniques
how can the project manager identifies the activities of a project?
- use of past projects
- team brainstorming sessions
- think through the sequence of work to be done
- decompose the project’s goal
which are the definitions of WBS?
1)A hierarchical decomposition of the entire work that should be completed to
achieve the project’s objectives. It is most effective when each element of the structure includes the elements of scope, schedule and costs, and as such is essential to ensuring integrated accountability and control over project work.
2) Way in which a project may be divided by level into discrete groups for programming, cost planning and control purposes (BS)
3) A deliverable oriented grouping of project elements that organisesand defines the total scope of the project-Each descending level represents an increasingly detailed definition of the project work
(US Project Management Institute)
the WBS is the backbone of project planning and control
which is the purpose of the WBS?
To sub-divide the scope of work into manageable work packages which can be estimated, planned, and assigned to a responsible person or department for completion
(The breakdown should group similar work together)
which are some of the possible structures of the wbs?
- Product-based structure
- organisation- based structure
- cost- based structure
- contract- based structure
- location- based structure
- transport- based structure
which are the goal and uses of wbs?
- develop the master project plan
- estimate resources requirements
- develop project organisation
- facilitates other management processes
- provide mechanism for project control both at general level and individual packages level
- assigniging responsabilities
which are the steps that we have to do after completing the WBS? which is the standard process for scheduling?
the first thing that we have to do is to list and briefly describe all this activities. this allow us to understand better their relations and dependencies which in turn will enable us to draw the table of predecessors.
After that we have to convert the project action plan in an operating timetables by sequencing the activities based on them dependencies and schedules the activity (time) and at the end schedules the resources.
Scheduling is fundamental for monitoring and controlling the project.
The standard process of scheduling is:
1. List activities (from the Work Breakdown Structure)
2. Arrange activities considering precedence and relationships
3. Develop network diagram
which are the possibles scheduling representations?
- Cascading sequence of activities: Gantt Chart
- Network of activities: Activity of Node and Activity on Arc
What are the advantages and disadvantages of Gantt Chart?
Advantages:
- Easy to understand
-Easy to show progress and status
-Easy to maintain
-Most popular view to communicate project status to client and/or senior management
Disadvantages:
-Not always easy to see precedence & relationships (difficult to follow complex projects); in particular when the project is complex i.e the number of activities is high
which are the advantages and disadavantages of network (cpm/pert)?
Advantages:
- Allows visualisation of task relationships much better than Giantt Chart, for example if you want to see the relationships of one activity you can go directly to it and observe the arrow to and from her.
- Facilitates calculation of critical path
- Clarifies impact of decisions on downstream activities
Disadvantages:
- it seems more Complex respect to Giantt Chart, it is not easy to comprehend it at a glance
- Charts don’t readily depict durations, dates, progress: That’s means also that it is more difficult to track the progress of the project
what are the benefits of successful scheduling? (they are 5)
- Illustrates interdependence of all tasks
- Determines critical activities/critical path
- Identifies times when resources must be available
- Facilitates communication throughout the project
- Affects client expectations through the establishment of activities, milestones, and completion dates
what is a milestone in the scheduling?
it is a key moments in the project, e.g. completion of a phase.
Technically a milestone is not an activity, so it has no duration or resource.
However, there is a common tendency to treat them as approval points (but should put an ‘approval’ activity into the schedule)
what is the duration of the project?
we have to think the project as a set of paths, the duration of the project is the minimum duration of the project i.e the duration of the longest path. of course things can go worse and the project can last more
what are the differences between activity/task; event, milestone, network, path and critical?
- Activity / Task: A specific task that is required by the project, and takes time to complete.
- Event: An identifiable start, end or mid state; for example Milestones are events.
- Network: Arrangement of all activities, in their logical sequence. It defines the precedence relationships.
- Path: A series of connected activities (or intermediate events) between any two events in a network
- Critical: Activities, events, or paths, which if delayed, will delay the completion of the project.
what are the factors to evaluate a schedules?
1) Duration of the project
2) Risk of schedule overrun
3) Use of resources: Continuous use of a resource is better than having a resource come on to the project and then leave several times
4) Cost of the schedule
5) Psychology: Early wins
what are the methods to analyse the network?
2 foundations methods:
- CPM and PERT both developed in 1950s
1 modern method: Monte Carlo Simulation
important: in the network when you calculate the days of each activities the first activity has to start from day 0 and not day 1.
important: in the network when you calculate the days of each activities the first activity has to start from day 0 and not day 1.
what are the earliest time and finish and the latest start and finish? how is calculated the float/slack and what is it?
the earliest start and finish are the days in which the activity start and finish if it starts as soon as its predecessors finish. the latest start and finsih are the latest days in which it can start and finishes without delaying the duration of the project. of course since the latter is determined by the critical path the activities on the critical path will have the same earliest start and latest start and the same earliest finish and latest finish.
the float is a measure of flexibility or inherent surplus time in any activity’s scheduling: it’s the surplus time that one activity has before to influence the duration of the project.
the float/slack is calculated as the LST- EST or LFT - EFT (THIS IS THE ONLY WAY TO CALCULATE THE FLOAT OF THE ACTIVITIES, USE THIS!!!)
list some of the characteristics of the networks?
- The arrangement of the activities (and, in some cases, events) in the network defines the project and the activity precedence relationships
- Networks are drawn starting on the left and proceeding to the right; arrowheads placed on the arcs are used to indicate the direction of flow; that is, to show the proper precedences
- Before an event can be realised–that is, achieved –all activities that immediately precede it must be completed; these are called its predecessors
- An event represents an instant in time when each and every predecessor activity has been finished
- A project’s critical path is the sequence of critical activities (and critical events) that
connects the project’s start event to its finish event and which cannot be delayed without delaying the project
in the exercise what are the activity that has to be closely monitored when the text ask for this.
They are the activities which are part of a path which is near, in term of duration, to the critical path. In other words, they are the activities which has the smallest amount of float.
what are the near-critical activities?
the ones which have a smaller amount of float
what is the normal duration of an activity or project? what does it mean crashing? which are the cost of crashing? when is the crash done?
the normal duration is the most likely duration.
Crashing means to Expedite an activity, by applying additional resources (IT COST MONEY):
- Specialised or additional equipment
- More people(e.g. borrowed staff, temps)
- More hours(e.g. overtime, weekends)
ex. expedite the duration of digging an hole by putting more people (however there is a saturation level when the people are too many and can t stay all in the hole).
crashing can lead to quality -related problems (for example because you hire tempoarary work to reduce the duration which are not expert of the project and of the situation as the initial ones).
Potential cost areas:
- Additional equipment/material
-Extra labour
-Reduced morale, from excessive hours/shifts
-Lower quality, from the pressure of time, inexperienced and tired staff
-Negative effects on other projects
it can be done at the outset if the client care more about reducing duration than increasing the cost or in the meanwhile if some time’s problems occur.
it is impossible to crash an activity to 0 days (activities need time)
what can you do to anlyse all the possible crashing and their cost?
you can draw a graph with the cost of the project on the vertical axes and duration on the horizontal and draw all the points corresponding to the initial situation and the subsequent crashings. the slope is calculated by dividing (crash cost- normal cost) by (crash duration - normal duration). since the numerator is positive and the denominator is negative the slope will be negative.
which activities should be crashed first?
there are 2 basic principles:
- focus on critical path since usually is not helpful to shorten non.critical activities because they don’ directly affect the duration of the project (exception: when a scarse resource is needed elsewhere e.g in another project
- choose the least expensive activity to crash in the critical path and continue with the second least and so on. when you considere the cost you need to consider the unit cost per day/week and not the total cost of crashing (be careful of the maximum crahing possible and to consider if the partial crashing is allowed or not).
Every time that you crash draw the new network and check if the critical path is the same, it is changed or there are more than one critical path.
how do we decide how many times allocate to any activity and how do we copy with its uncertainty?
using data by past projects and from estimates and making some assumptions we can try to estimate the shortest possible time of an activity, the most likely one (the mode of the distribution, not the average) and the longest one. but which one we should incorporate in our anlalysis? we can’t use the longest because it’s really inefficent and it would push the workers to work slowly and neither the shortest since taking that, evry single small delay would lead to a reschedule of all activities and resources. to deal with this uncertainty (which is very different by activity to activity) there are 2 methods: PERT and Montecarlo Simulation. PERT (developed by MIT in 50’) uses a formula to calculate the expected time of each activity to incorporate in our analysis (this formula account in major part the most likely time but adjust also the duration for the extreme values) and another formula (actually we can use 3 formulas depending on the confidence level that we want to use) to calculate the variance (a measure of statistical dispersion of the distribution) of each activities which represents its uncertainty (activity with 0 variance have no uncertainty). the TE and Variance of a path is the sum of the TE and Variances of all the activities in that path.
why the variance is important?
because it tell to us to what extend we have to be confident in time expected.
what is the probability of completing a path before the time expected of the path?
50% since it s the mean of the distribution of time required to the path.
with the pert analyses how can we calculate the probability of finishing a path in D days?
we have to calculate Z as (D - u)/ radice della varianza del path and then use the table to convert Z in a probability. to calculate the opposite probability you can do 1- that probability.
how can we calculate the probability that the project finish in D days?
in reality we shoulld consider all the probability of the paths but typically we follow a semplicistic approach focusing only of the probability of critical path. this is more wrong as the other paths are closer to the critical one based on the duration.
when do 2 paths can be considered independent?
when they don t share ANY activities. in this case the combined probability of finishing both of them in D days can be calculated as the product of the 2 single probabilities.
when are typically considered the resources?
typically they are considered after the scheduling which is in fact adjusted at the end to take them in consideration.
However, many people think this is wrong: there is another aproach we’ll see which takes them into account first.
what is the resources histogram?
it shows the distributions of all the resources throughout all the duration of the project. with this you can also check if you have the ideal situation in which resources are used continuosly
which steps does the cpm include (including resources)?
- Identify the activities in the project (WBS)
- Sequence the activities into a network according to activity dependencies (e.g. activity A must be before activity B, and B before C etc.) and ‘schedule’ them [usually the planner shows every job starting at its earliest possible date –a ‘resource-aggregated’ plan]
- Finalise the schedule by adjusting it to allow for resource constraints [a ‘resource-allocated’ plan]:
Resource constraints are treated as a separate issue, requiring at least one more stage in scheduling after determining float and locating the critical path
what are time-constrained problem and resource-constrained project?
Time-constrained Project: in these project you have a specific deadline to respect and thereby you possibly have to use more resources and money to reduce the duration. to complete a project in a specific time frame alternative resources may have to be utilised to ensure timely project completion
Resource-constrained Project: when you have fix resources and money and the duration of the project has to depend by these. if, for instance, highly specialised resources are required then the project completion date may have to be set to ensure these resources are not overloaded
what are some examples of constrained resources and non-constrained resources?
Coinstrained:
- Internal resources
- Several projects needing the same resource
with these, Schedule must accommodate resource limitations
Unconstrained:
-Open market resources
also with these, it s Still preferable to smooth the resource usage (Minimise administration)
does the duration of the project i.e duration of the critical path can change when we include resources coinstraints in the analysis?
yes it often change when we considere resources coinstraints (look at the example done in class)
how can we do the rescheduling consideringthe resources?
it is often a complex problem that require computer.
there are 2 basic approach to allocate resources to taks:
1) heuristic (rule-based, priority rule and tie-breakers)
2) optimization (linear programming)
list some possible scheduling heuristic?
- As Soon as Possible: the general solution for critical path and time, it is the default rule for scheduling
- As Late as Possible: to defer cash outflows as long as possible
- Shortest Task First: to maximize the number of tasks that can be completed by a system during some time period
- Most Resources First: more important tasks usually place a higher demand on scarce resources; activities are ordered by use of a specific resource, with the largest user heading the list
- Minimum Float First : This heuristic orders activities by the amount of float, least float going first
- Most Critical Followers: tasks are arranged by number of critical activities following them: the ones with the greatest number of critical
followers go first - Most Successors: this is the same as the previous rule, except that all followers, not merely critical ones, are counted
- Arbitrary
what are the steps to apply heuristics?
- Select the next time point (when a resource is available)
- Identify tasks that can be performed (according to the network)
- Prioritise the tasks using the heuristic
- Select each task in priority order
- Are their resources available?
- If yes schedule the task, if not delay the task
- When no more tasks can be scheduled in this time period, go on to the next time point
what is risk in project managment?
although more recent approaches to defining risk include potential positive or negative impact, more commonly it refers to “anything that can go wrong” –commonly associated to “unwanted” events (Externally or Internally)
Risk Management in projects is concerned with hazards or events which are not included in
the uncertainty. the uncertainty is in fact something different that we try to control doing 3 point estimates. some defnitions says that risk is measurable while uncertainty is not.
Understand the possible risks and their impact is essential since they may cause both the fail of common objectives (such as completion time, quality ecc..) and broader issues (such as financial implosion, loss of client) of the project
what does project risk managment concern?
Project risk management is concerned with factors/issues not identified through standard
project planning/management methods that can negatively impact the project –may result
in alternative actions in the plan
which are the main phases to manage the risk in the projects?
1 Identify
(e.g. through brainstorming, relevant experience, historical data, experiments with prototypes,
market testing & research, use of external expertise)
2 Assess
(measurement & evaluation –through similar means as in the identification phase)
3 Respond
(avoid, transfer, minimise/mitigate)
4 Control
(manage)
5 Plan future response
(new risks will appear)
who has the ultimate decision on how to deal with risk?
the project manager along with contractual requirements, stakeholder preferences and so on. the risk aversion of the risk manager is importnt in the decision.
what are some examples of hazards
1 Resourcing (ex. insufficent engineers)
2 Government (ex. bans the use of a material)
3 Political/societal (ex.Rare species found on the land Environmental)
4 Legal (ex. Infringement of a patent)
5 Economic/financial (ex. interest rate rise)
6 Commercial (ex.Competitor releases a better product sooner)
7 Technical/operational (ex. Error in the design )
which way can be used to identify risks?
1) Can evaluate activities & key processes (e.g. design, manufacturing, test)
2) Can use requirements assessment to isolate specifications that will likely be difficult to meet
3) Can use the Risk Breakdown Structure (Hilson, 2003)
look slide 24 about risk managment
look slide 24 about risk managment
what are the main components of risk for a given event?
-A probability of occurrence of that event
- Impact (or consequence) of the event occurring (amount at stake). impact can be in term of: cost, time, quality, reputation
The sources of risks are hazards: they can be overcome by knowing them and taking action to
overcome them
what tool can you use to judging risk?
the risk matrix (the impacts depend on the type of the project) and giudance scales. it is advisable to define impacts and likelyhoods on a ratio scale (scale can use any ratio, a common one is 3)
what should you do when an activity has high likelyhood and high impact?
risk is too high in this case and MUST be eliminated or reduced regardless of cost: if the cost is too high you have to abandon the project
how can we assess likelihood and impact
we should use high/ medium/low ratings. in the likelihood you should ensure thaat the ratings are used in a consistent way and that they are not subjective. the impact is assessed against the whole project not just the individual task and it is assessed assuming no response is included.
is it enough to check the individual risk of the task? how can we sum the risks? which are the criteria to evaluate total risk?
no it is essential also to assess the total risk by summing the individual ones: infact there may be cases in which individual events are ok but the total risk is too high.
we have to use ratio scaled both for likelihood and impact and calculate the sum of the riks, if the scales are nominal the sum is meaningless.
in general 2 thressholds are put. if the total risk is under the first there is no need to reduce it, if it is between the first and second the risk is acceptable if worthwhile (we should reduce/share/eliminate it if feasible and cost-effective (cost-effectiveness can be really difficult to evaluate and it is an advanced topic) to do so), if it is over the second total risk is too high and must be reduced or eliminated regardless of cost: if the cost is too high abandon the project.
how can we assess risks?
1 Records and other sources of historical data
2 Relevant experience
3 Reviews of research into project success and failure
4 Experiments with prototypes
5 Market testing and research
6 Application of behavioural, financial, economic, engineering and/or other relevant models
7 Use of specialist and/or external expertise
how can we handle risk? (which are the response/ treatment we can use)
1 Accept: Continue without altering project goals or the approach
2 Eliminating or avoiding: Changing or abandoning goals specifically associated with the risk in question, or choosing alternative approaches or processes that make what was previously a risk no longer relevant
3 Risk sharing: Sharing risks in part or in full with another stakeholder who could be involved solely
to facilitate risk treatment, e.g. an insurer
4 Reducing the likelihood: Changing project approach, identifying causal links between threat and impact, or
causes of threats, and intervening to mitigate occurrence, acting to reduce the threat
5 Reducing the impacts: Developing contingency plans for responding to the threat if it occurs, even if other
steps have been taken to minimize the risk
look from slide 20 to 24 of risk block slide
look from slide 20 to 24 of risk block slide
how can we estimate the cost of the activities of a project?
there are 2 main approach:
1) top-down: It is based on collecting the judgment and experiences of top and middle managers
It Start at the top, and allocate down through the Work Breakdown Structure (WBS)
it is Based on managerial judgment, and historical data
History can include actual costs from similar projects, adjusted for differences and for inflation
2) bottom up:
It starts at the bottom of the WBS, with the people who do the work, Then costs are aggregated upward
what are the pros and cons of top-down approach?
Pros:
-Quick, simple
-Fair accuracy overall, though individual elements may be in error
-Small tasks need NOT be individually identified (this saves time and avoid the overestimation of the cost by junior manager)
Cons:
-Limited buy-in by junior managers
-Senior managers views may be biased
-Using data from dissimilar projects, or old projects, can mislead
what are the pros and cons of bottom-up approach?
Pros:
-More accurate, in detailed elements
-The benefits of participative management
-Differences of opinion can be resolved
Cons:
-Overlooking a task can be a costly error (since here for all the tasks the cost need to be estimate to forget one could have a big impact)
-Time-consuming to prepare
-Estimates can be padded at every level
what is the behaviour of junior and senior managers in estimating costs?
Senior people tend to underestimate,
while junior people tend to overestimate.
Lower levels tend to arbitrarily add reserves, upper levels to arbitrarily delete them.
list some type of cost and some type of estimating methodologies
- Direct costs
- Indirect costs
- Time related costs
- Labour costs
- Procurement costs
- Transport costs
- Preliminary and general (P&G)
- Project office costs & project team costs
- Jobbing
- Factoring
- Inflation
- Economies of scale
- Unit rates
- Day work
how can you treat the uncertainty in cost estimation?
we can do like the time estimates: we can provide 3 point estimates and not just one. then we can use excel and montecarlo simulation to create a cost curve which has the frequency on the vertical axes and the total project cost in the horizontal one.
what are some usual things that happens in project managment regarding the budget?
- There is a natural tendency for a functional manager (and some project managers) to substantially inflate estimates to protect the particular organisation and provide a certain
amount of cushion. This is done to:
Create a safety margin to protect against unforeseen expenses or unplanned costs and Safeguard the organization from financial or reputational risks in case the project exceeds its expected costs. - Furthermore, if the inflated budget is approved, managers will undoubtedly use ALL of the allocated funds, including reserves. This happens for several reasons:
*Managers may think that if they don’t use the entire budget, it might be reduced in the future.
*There is a psychological tendency to spend what is available, even on activities that may not be strictly necessary.
this is the reason of the creation of contingency fund in which the resources are keep and controlled by organization and used only in case of emergency.
Implications for project management:
- Inefficiency in resource usage: If budgets are inflated and fully utilized, it risks reducing the overall efficiency of the project.
- Loss of trust within the organization: Stakeholders might perceive a lack of transparency or excessive caution from managers.
- Need for greater control: It is crucial to implement monitoring and review tools to avoid excessive and unnecessary use of resources.
what are the key value in choosing the budget’
A ‘stretch target’ for the Project Manager:
Target cost (20-40%)
For corporate planners:
Expected cost (50%)
Commitment (80-90%)
what is a common practise to set the commitment?
since sometimes projects can have very simillar expected cost but strongly different commitment it is a common practise to set the commitment as a moltiplicator of expected cost (ex. commitment= expected cost* 1.4)
what is a contingency fund?
1) An amount added to an estimate to allow for changes that experience shows will likely be required and Usually excludes changes in scope or unforeseeable major events such as strike, earthquakes, etc.
2) The amount to cover costs that may result from incomplete design, unforeseen and unpredictable conditions, or uncertainties. The amount of contingency depends on the status of design, procurement and
construction and the complexity and uncertainty of the component parts of the project. Contingency is not to be used to avoid making an accurate assessment of expected costs.
What are the guidelines for calculating a contingency fund in project management? can the contingency fund be reduced over the project?
1) Guidelines for Different Organizations:
- For organizations running many projects:
Use the Expected cost approach (Option A):
Contingency Fund = Expected - Target. - For organizations with one or few projects:
Use the Commitment level approach (Option C):
Contingency Fund = Commitment - Target.
2) Alternative ‘Rule of Thumb’ Approach:
Add a percentage of the project budget based on risk level:
- Low to Medium Risk: Add 5–10% of the estimated budget.
- High Risk: Add up to 20% of the estimated budget.
Important Note:
These are guidelines, not rigid rules, and should be adapted to the specific project and organizational context.
As the project progresses the contingency fund can be reduced
what are the most important elements in projects?
The constituents of a project are:
- Defined goals, which will give rise to benefits-Start and end points
- Activities to be performed, which need to be co-ordinated-Performance parameters
- Stakeholders (who can be positively or negatively affected)
-Resources with responsibilities, which need to be co-ordinated
Additional issues to consider:
- Uncertainties (because of uniqueness)
- Risks that may or may not impact the project-Communications (though implied by co-ordination)
-Issues that arise and need to be resolved
What are the stages and effort distribution in a conventional project life cycle?
Stages of a Conventional Project Life Cycle:
Slow beginning: Initial phase with minimal effort and progress.
Buildup of size: Gradual increase in project activity and effort.
Peak: Maximum effort and activity during the core execution phase.
Begin a decline: Effort starts to decrease as tasks near completion.
Termination: Final stage where the project is completed and closed.
Time Distribution of Project Effort:
Effort follows a slow-rapid-slow pattern:
Gradual ramp-up during planning and early execution.
Peak effort during execution and monitoring.
Gradual decline during evaluation and termination.
Alternate Life Cycle Patterns:
Some projects may not follow the conventional pattern, with significant effort required even at the end to produce substantial returns.
What are typical project objectives, and what are “Fuzzy/Quasi-Projects” and them risks?
Typical Project Objectives:
Performance: Delivering the required quality and functionality.
Time: Completing the project within the agreed timeline.
Cost: Staying within the budget.
Client Expectations:
A critical part of project specifications that align with objectives.
Quasi-Projects and Fuzzy Goals:
they are Tasks without clear targets:
Lack of specifics (Who, What, When, Where, How Much).
Only implied performance, cost, and time constraints.
Often used as “projects” to determine the actual project scope.
Warning:
If these become actual projects, they risk:
Delays
Cost overruns
Dissatisfied customers
What are the stages of the Project Management Life Cycle, and what happens at each stage?
Definition:
Focus: Establish project goals and specifications.
Activities: Define scope, responsibilities, and team roles.
Planning:
Focus: Organize resources and prepare for execution.
Activities: Create Work Breakdown Structure (WBS), schedules, budgets, and risk management plans.
Implementation:
Focus: Execute the project plan and monitor progress.
Activities: Produce status reports, handle change orders, perform quality audits, and manage contingencies.
Peak effort occurs in this phase.
Delivery:
Focus: Finalize and deliver the project outputs.
Activities: Train users, transfer documents, release resources, reassign staff, and document lessons learned.
How do you define the scope of a project, and what is “scope creep”?
Scope Definition:
A statement that defines the boundaries of the project.
Acts as the foundation for all project work that follows. it is really important to ensure that assumptions on the project and its understanding from the project manager and the clientis the same.
Other Terms for Scope:
Document of understanding
Scoping statement
Project initiation document
Project request form
In IT: Functional specification
In Engineering: Statement of work
Purpose of Scope:
“Defining the problem before pursuing a solution.”
Scope Creep:
Refers to any change in the project not included in the original plan.
Emphasizes the need for a realistic approach to manage changes effectively.
Key Takeaway:
Defining the project scope is essential to establish boundaries and prevent scope creep, which can derail project success.
What key aspects should be considered when defining the project scope?
Defining the Project: A communication and agreement process addressing:
Problem or opportunity: What issue is the project solving?
Goal: What is the project’s purpose and its expected benefits?
Objectives: What must be accomplished to achieve the goal?
Success criteria: How will success be measured (e.g., revenue, cost, service)?
Risks and assumptions: Are there obstacles that may affect success?
Specifications: What technical or functional requirements must be considered?
Deadline: What is the expected completion date?
Definition Phase:
This phase sets the scope and acts as the foundation for determining whether specific functions or features are included in the project.
Key Takeaway:
Defining the scope involves identifying goals, success metrics, and constraints, ensuring all stakeholders agree on what is included and excluded from the project.
What is a Project Overview Statement, and why is it important?
Definition:
The Project Overview Statement is a document that clearly defines what needs to be done once the conditions of satisfaction for the project have been discussed and agreed upon.
Key Steps in the Process:
Request: Identify what the project entails.
Clarify Request: Ensure all stakeholders understand the request.
Response: Outline how the project team will address the request.
Agree on Response: Gain consensus on the proposed approach.
Components of an Overview Statement:
Project name, number, and manager.
Goal and objectives.
Success criteria.
Assumptions, risks, and obstacles.
(look at the example in slide 59)
Completion of Scoping Phase:
Once the overview statement is approved, the scoping phase is considered complete.
Key Takeaway:
The Project Overview Statement ensures all stakeholders align on project goals, scope, and success criteria, serving as a foundation for project execution.
What is the Project Definition Statement, and how does it differ from the Project Overview Statement?
Definition:
The Project Definition Statement is a document similar to the overview statement but provides more detailed information to assist with planning.
Key Features:
Expands on two sections:
Audience:
The overview statement is understandable by anyone, while the definition statement is more technical and detailed, meant for the project team.
Assumptions, Risks, and Obstacles:
Includes a longer and more detailed list compared to the overview statement.
Purpose:
Aids in detailed planning by providing specific and technical details about the project.
Key Takeaway:
The Project Definition Statement is a more detailed, technical document meant for the project team, building upon the broader scope established in the overview statement.
What are the key steps in moving from project scope to a detailed plan?
Scope the Project:
State the problem/opportunity.
Establish the project goal.
Define the objectives.
Identify success criteria.
List assumptions, risks, and obstacles.
Develop a Detailed Plan:
What: Identify project activities.
How long/much: Estimate activity duration and cost.
Who: Determine resource requirements.
When: Construct and analyze the project network diagram.
Prepare the project proposal.
Why is planning crucial in project management, and what should be considered?
Key Planning Questions:
What activities need to be done?
What resources are required?
How much will it cost?
How long will it take?
What are the risks, and how can they be mitigated?
Plan Before and During the Project:
Plan before the project starts to establish clear objectives and scope.
Continuously plan during the project to adapt to changes and re-prioritize as needed.
Prioritization:
Continuously prioritize and re-prioritize projects to align with organizational goals.
Key Takeaway :
Effective project planning transitions from a well-defined scope to a detailed action plan and requires ongoing adjustments to handle risks and changing circumstances.
What are the key steps in the project proposal process?
1) Management Board Review:
Evaluates the project idea based on:
Business need: Does it align with strategic goals?
Risks and benefits: What are the potential trade-offs?
Technical feasibility: Can it be executed with available resources?
Organizational feasibility: Does the organization have the capacity?
Finances: Is the project financially viable?
Fit with portfolio: Does it complement existing projects?
2)Proposal Creation:
Use a standardized template to document project details such as objectives, scope, costs, risks, and timeline.
3) Proposal Distribution and Review:
Stakeholders (e.g., experts, financial analysts, decision-makers) review and evaluate the proposal for approval or rejection.
What are the two phases of the structured proposal process, and what happens at each phase?
Phase 1: Outline Proposal
Objective: Submit a brief proposal to outline the basic idea of the project.
Process:
The proposal is assessed for feasibility and alignment with organizational goals.
Possible outcomes:
Pass: Moves to the next phase.
Reject: Proposal is discarded.
Revise: Revision is allowed but is unlikely at this stage.
Phase 2: Detailed Proposal
Objective: Submit a fully developed, detailed proposal with complete information (e.g., costs, risks, timelines).
Process:
The proposal is assessed more thoroughly.
Possible outcomes:
Approve: The project is added to the program and initiated.
Reject: Proposal is discarded.
Revise: Revision is very likely at this stage to address gaps or improve feasibility.
What key elements should be included in a detailed project proposal?
What is the project about?
Define the problem or issue the project aims to solve.
What are the benefits?
Identify stakeholders and evaluate how they benefit or lose.
Explain how the project impacts the company.
What technical approach is to be used?
Consider alternatives and justify the selected approach.
What will be the outputs from the project?
Clarify the deliverables or tangible results of the project.
What activities need to be done?
List tasks, schedules, and the completion timeline.
What resources are needed?
Identify personnel and other necessary resources.
What are the risks?
Assess potential risks to the company and project failure.
Outline how risks will be managed or mitigated.
How much will the project cost?
Provide the budget, contingency funds, and alignment with corporate requirements.
How is the project to be governed?
Define the sponsor/customer, success criteria, and phases for approval.
How is the project to be managed?
Identify the project manager and specify monitoring and review processes.
Mention any special management procedures.
What are the benefits of a structured proposal process?
Clarity for staff: Employees know when they can submit their ideas.
Improved proposal quality: Templates ensure better organization and presentation.
Strategic alignment: The organization can better focus on its project portfolio strategy and improve how proposals are evaluated.
How should the effort put into a proposal relate to the project’s scale?
The effort should be proportional to the project’s scale.
Factors to consider include:
Risks: Assess potential threats to success.
Costs: Match the proposal’s detail to financial implications.
Technical and organizational challenges: Tailor effort to the complexity and impact of the project.
What are the key points to consider when tendering for a contract?
The Tender Document is Critical:
Often the only communication between the bidder and the client.
Only the best tenders may result in an invitation to present.
Writing Tenders is a Valuable Business Skill:
Essential for contracting and consulting companies.
Unsuccessful bids can impact profitability.
The process can be highly rewarding or frustrating.
The Tender is More Than the Bid Price:
It must convince the client of your capability to deliver the project.
Focus on demonstrating competence, not just offering the lowest price.
What are the typical worries clients have about contractors or consultants?
Understanding:
Concern that the contractor may not understand the project or its importance to the client.
Resourcing:
Fear that the contractor will not allocate sufficient resources to the project.
Skill Development:
Worry that the contractor might use the project to learn a new skill or enter a new business area, rather than focusing on delivering results.
Quality:
Concern that the contractor will deliver poor-quality work.
Involvement:
Uncertainty about whether the contractor will involve the client sufficiently in the project.
Key Note:
Price is rarely the primary concern; clients focus more on capability and trust.
What key components should be included in a tender?
Similar to a Detailed Proposal:
The tender should follow the structure of a detailed internal proposal, as described in previous slides.
Essential Additions:
Summary of Relevant Experience:
Include the organization’s experience.
Detail the experience of each key project team member (attach CVs).
Purpose: Critical for persuading the client of your competence.
Contractual Matters:
Specify whether you accept the client’s terms and conditions.
Highlight any amendments you require or prefer (e.g., limits on liabilities).
Key Takeaway:
A tender must combine a detailed proposal structure with a strong emphasis on relevant experience and clear contractual terms to demonstrate competence and professionalism.
What are key tips for researching the client when writing a tender?
Understand Why the Project is Happening:
Why now, and why do they need a contractor/consultant?
Do they want an innovative or standard solution?
Have they worked with contractors before?
Have they spoken to other contractors?
Do they know anything about your company?
Read Between the Lines:
Clients may use tendering as a test of ingenuity.
Sensitive issues may not be openly mentioned in the Invitation to Tender (ITT).
Look for signs of client confusion—they may appreciate guidance.
Contacting the Client:
While you’re often barred from contacting the project sponsor, try anyway.
Reach out to the client company’s PR team—they might inadvertently share useful insights.
Anticipate the Scoring System:
Understand how the client evaluates tenders, e.g.:
20% for understanding the project.
20% for experience and capabilities.
25% for price, etc.
Use the Same Language as the Client:
Repeat their phrases and use their terminology.
This helps show alignment with their needs and thinking.
Polish the Document:
Every word matters: Clients scrutinize every phrase and won’t forgive spelling or typographical errors.
Never copy-paste: Avoid reusing text from past proposals without tailoring it to the current client.
Always rewrite golden paragraphs: Restructure CVs and key sections to highlight the most relevant experience.
Key Takeaway:
Thorough research on the client’s needs, history, and preferences, along with subtle communication efforts, can give you a competitive edge when writing a tender.
Tailor your tender document to match the client’s language, scoring criteria, and expectations, while ensuring it is polished, original, and focused on their needs.
