Review Questions :)

Question 1

Describe five functions of management

Answer 1

“Planning: determining what needs to be done and how to do it.
Organizing: deciding how the work will be accomplished. Who? How? With what?
Leadership: directing and motivating people toward objectives.
Control: tracking costs, schedules, performance. Comparing them to goals, taking necessary corrective action
Change: altering work activities to meet goals”

Question 2

List main characteristics of projects?

Answer 2

“(1) It has a single, definable purpose. Specified in terms of cost, schedule, and performance requirements.

(2) It uses skills from different professions. It involves interdependencies that introduce unique problems.
(3) It is unique and requires that things be done differently than before.
(4) It is unfamiliar. It may encompass new technology and involve elements of uncertainty and risk.
(5) It is a temporary activity with specified time period. Once done, the project organization is disbanded.
(6) It follows a process of several distinct phases.”

Question 3

When to use project management?

Answer 3

“(1) Magnitude of the effort: when a job requires substantially more people, capital, equipment, etc.

(2) Unfamiliarity: when the job is different from the ordinary and routine
(3) Changing environment: the organization exists in highly competitive and dynamic environments.
(4) Interrelatedness: the job requires horizontal relationships between many different areas
(5) Reputation of organization: failure of the job will result in financial ruin, loss of market share, damaged reputation, or loss of contracts.”

Question 4

Role of RFP? Contents of RFP?

Answer 4

“To solicit suggestions for solutions to a user’s problems.
The RFP states the requirements of the user–objectives, project scope, performance specifications, cost and schedule constraints, data requirements, and type of preferred contracting agreement.”

Question 5

Role of Feasibility study? Contents?

Answer 5

“Role: investigating a problem and developing a solution in sufficient detail to determine if it is economically feasible and worthy of development.
Contents: a summary of the data collected form user, a description of the existing system, a statement of the problem, the criteria and methods used to evaluate alternatives, preferred alternatives, and reasons for selecting them.
“

Question 6

What are user requirements? What are user needs?

Answer 6

User requirements state in the words of the user what the system must be or do. Assuming the user requirements are adequately defined, a system that fulfills the requirements will have also satisfied the needs. The difference between needs and requirements is a matter of specificity: needs represent a value judgment, perception, or opinion—sometimes vague or ill-defined—by a stakeholder that a problem or opportunity exists; requirements specify in clear terms the state of affair or conditions indicating that the needs have been fulfilled.

Question 7

What is the SOW? Where does it appear?

Answer 7

It is an outline of the work needed to implement the solution. It appears in the RFP.

Question 8

How can a contractor be both the sender and the receiver of RFPs?

Answer 8

While the contractor receives RFPs from its customer, it sends RFPs to its own potential subcontractors (for subsystems and support services). Similarly, it sends proposals to its customers, but also evaluates proposals it receives from its own potential subcontractors.

Question 9

When does PM get involved?

Answer 9

Ideally gets involved in the project during the conception phase (Phase A) as manager of the proposal preparation process and continues to be responsible for the project throughout its life cycle.

Question 10

What is kickoff meeting? When held? Who runs?

Answer 10

“To announce that the project is about to commence, communicate what the project is about, develop common expectations, and generate enthusiasm and commitment to project goals and deliverables. The meeting is mostly a presentation with time for Q&A.
The project manager plans and runs the meeting.
The meeting should occur just before work on the project is begun.”

Question 11

Briefly describe contents of project execution plan

Answer 11

Project objectives; work breakdown structures; work schedules and deadlines; financial budgets and controls; personnel requirements, policies and procedures; resource allocation; and system implementation and evaluation methods

Question 12

What are user requirements vs. system requirements vs. system specifications?

Answer 12

“User requirements: What the user wants in generel in own words: ““The app should be able to search through our online information””
System requirements: Technical translation of requirements to system: ““The app will establish internet connection and access company database””
System specs: detailed specific technical requirements for system ““Connect via SSH protocol to Neo4j websocket using private API access credentials”” “

Question 13

Describe process of developing user requirements and system specs

Answer 13

Contractor works with the user to compile user requirements. A ssist the user in defining their requirements. Translate user requirements into system requirements and system specifications to designate its functional requirements. The contractor and the user should agree on system requirements during proposal preparation. After the contractor has determined summary system requirements, he stipulates them in the user’s language in the final contract.

Question 14

What problems arise with requirements definition? How to mitigate?

Answer 14

“Incomplete or inaccurate requirements and unforeseen obstacles . Ways of avoiding:
• Inviting representation from all functional areas
• Obtaining enough decision-making information
• Stressing the importance of clear, comprehensive definition of requirements
• Taking the necessary time to describe the requirements in detail
• Reviewing the requirements for ambiguities and inadequacy
• Augmenting written requirements with graphics, diagrams, or other visual models.
• Avoiding rigid specification of requirements.
• Treating each requirement as a commitment.
• Monitoring the requirements and controlling attempts to change them during the project.”

Question 15

What does procurement managemnet invovle? Why is it important? What could go wrong?

Answer 15

“Procurement management refers to planning and control of

1. Equipment/materials provided by vendors
2. Off-the-shelf (OTS) equipment and components
3. Bulk materials
4. Consumables
5. Equipment for construction, fabrication, etc., not owned by the contractor
6. Administrative equipment not owned by contractor; including computers, project office facilities.

For each procured item, a schedule is needed showing when the item will be needed and when its procurement activities must begin.
Enough time must be allowed in the schedule to conduct the RFP/proposal process and select suppliers, and for suppliers to deliver”

Question 16

Purpose of project execution plan?

Answer 16

It specifies the tasks, responsibilities, resource requirements, schedules, and costs of the project throughout its life cycle. It is an overview of all key aspects of the project. The project’s manager and team use it as a road map to get the project started, then as a guidepost to monitor and steer the project.

Question 17

Which aspects of executuon plan might be omitted for small projects?

Answer 17

Economic justification and uncertainty and risk. Testing, documentation, or work review could also be eliminated

Question 18

What is SOW? Where does it appear?

Answer 18

The statement of work is a description of the project, its objectives, scope (major deliverables and work tasks), impact, justification, and management. Sometimes the SOW contains requirements, risks, budgets, schedules for deliverables, staffing, and key responsibilities. The RFP, proposal, contract, and project master plan all contain versions of the SOW.

Question 19

When is no further breakdown in WBS necessary?

Answer 19

“It should be carried out to whatever level is necessary to get a good definition of the work, the length of time needed, the resource requirements, and the costs

Question 20

What is the role of functional managers in WBS?

Answer 20

They do a further breakdown until the lowest level tasks (work packages) have been defined. They assist in work definition and in estimating resources, labor hours, and schedules for tasks at the lowest levels.

Question 21

What is a well defined work package?

Answer 21

“a work definition;
inputs or results from preceding project tasks predecessors;
individuals or groups responsible for the work package
explicit specifications or requirements
estimates for required labor and other resources
schedules
cost estimate
corresponding budgets.”

Question 22

What function does the responsibility matrix serve?

Answer 22

“Identifies the work responsibilities of organizational units and individuals.
It shows who is responsible for what and how they are responsible”

Question 23

Event vs Activity?

Answer 23

“An event denotes a particular moment in time, such as the beginning or completion of a task.
A task is the actual doing of the works, bro.”

Question 24

Advantage of networks over gantt chart?

Answer 24

Networks show the interdependencies among activities. Easy to determine the impact that changes have on schedule.

Question 25

Can you make network from gantt chart and vice verse?

Answer 25

“Network –> Gannt

Reverse does not always hold since Gantt charts do not necessarily show relationships between activities “

Question 26

Why is the critical path important?

Answer 26

“Plays a vital role in project planning and control.
Used to determine which activities need strict enforcement of deadlines.
The critical path also shows which activities can be delayed
The critical path also indicates which activities need to be shortened if the project duration has to be reduced.”

Question 27

Total vs Free slack?

Answer 27

“Total =maximum allowable delay that can occur for noncritical activities without delaying the project. (combined flexibility of all activities in that subpath)
Free = How much time an activity can be delayed without affecting the early start time of any successor activity. Among a subpath of noncritical activities, only the last activity has free slack.

”

Question 28

Explain differences: ES, EF, LS, LF

Answer 28

“ES and EF: the earliest an activity can occur subject to the early completion of its immediate predecessors.
LS and LF: the latest an activity can occur and still permit the project to be finished by its target completion date”

Question 29

Can you have slack on CP? Why? Can have negative slack? Why?

Answer 29

If a project has a predetermined due date that is later than the date determined during the forward pass, there is positive slack on the critical path and if the predetermined due date is earlier than the date determined during the forward pass, there is negative slack on the critical path.

Question 30

Describe resource levelling in a resource constrained project vs in a time-contrained project?

Answer 30

In both cases, non-critical activities are moved later from the earliest dates. In the case of a resource-constrained resource, the project may have to be rescheduled to accommodate the scarcity of the resource while, in the case of a time-constrained project, more resources might need to be added

Question 31

Define crash effort vs normal effort? When to crash project?

Answer 31

“Normal cost (Cn) is the expenditure associated with completing an activity using a “normal” effort and at a normal completion time (Tn). It is the completion time under usual and customary working conditions, and is usually the least expensive way to do the activity.

A “crash” effort is when every possible effort is applied to complete an activity in the shortest possible time, which is the crash time (Tc). Associated with the shortest time is the crash cost (Cc), which is usually also the most expensive way to do the activity. A crash effort is applied whenever a project cannot be completed by the target date using a normal effort. It to Presenting two project plans to stakeholders (one less expensive but with a longer duration and another that would be done faster but with a higher price tag) is also smart marketing. “

Question 32

What is slope of cost-time?

Answer 32

the marginal tradeoff of time versus cost if the activity is sped up or slowed down. Since it is a marginal cost, it shows the change in cost per specified period of time

Question 33

Direct vs indirect costs?

Answer 33

“Direct: Expenses that are easily attributed to a specific work package or activity.
Indirect costs: more difficult to attribute to a single activity (or even project) but are nonetheless expenses incurred
“

Question 34

Criticisms of CPM? Where limited?

Answer 34

”- It assumes time and cost are linearly related

• CPM time-cost tradeoff analysis can be time-consuming and unfeasible for large-scale projects
• limited to projects wherein the cost estimates are fairly accurate
• CPM is a deterministic approach and does not allow for variability”

Question 35

Effect of overestimating costs? Underestimating?

Answer 35

“Overestimated, the contract may be lost to a competitor.

Underestimated, the contractor may suffer a loss”

Question 36

Cost escalation? Causes?

Answer 36

“amount by which actual project costs increase to exceed original estimated costs
Causes:
- work inefficiency and poor project control
- lack of accurate information upon which to base estimates
- the ego attachment and “optimism” of the estimator
- uncontrollable environmental factors (inflation, strikes, weather)
“

Question 37

Describe phased project planning

Answer 37

“projects are divided into successive phases. Each phase is budgeted separately
after it is completed and evaluated a decision is made whether to proceed to the next phase”

Question 38

Effect of contract type on costs?

Answer 38

“With a fixed-price agreement, there is incentive for the contractor to control costs since the contract is for a fixed amount
with a strictly cost-plus contract, there is not the same motivation for cost control since profit is not affected by a cost increase.
When profit is strictly a percentage of cost; there may be incentive for the contractor to let costs escalate.”

Question 39

Describe WBS process to estimate costs

Answer 39

The WBS divides the project into work packages with responsibility assigned to work units. These work units (or pricing units)—functional units or subcontractors—divide the work packages into more basic areas of work. Supervisors and specialists in these areas subdivide the work further; they then develop estimates of the labor hours and materials needed. These estimates are checked by the unit manager, then forwarded to the project manager or project staff who again review the estimates for accuracy and completeness. Labor hours are multiplies by standard wage rates, materials by standard costs. Overhead rates are added in to arrive at the total project estimate.

Question 40

Role of functional units and subcontractors in cost?

Answer 40

Each functional and subcontracting unit is responsible for the original estimate of labor hours and material requirements. Their estimates are based upon similarity of work to previous jobs, reference manuals, and rules of thumb. They are presumed to be the experts in the area of work they are estimating. If not, experts are hired to do the estimating.

Question 41

Six cost elements shared by most estimates and budgets?

Answer 41

“1. direct labor expense,

2. direct non-labor expense,
3. overhead expense
4. general and administrative expense
5. profit
6. total billing.”

Question 42

Hwo to get direct labour costs?

Answer 42

Determine how many people will be needed for each grade. The labor hours of the various grades are multiplied by their respective wage rates.

Question 43

Expenses included uder direct non-labour

Answer 43

All expenses that can be attributed to a specific task other than labor hours. They include materials and parts, manuals, equipment, clerical and computer supplies, and other items purchased solely to perform a specific task.

Question 44

Overhead expenses?

Answer 44

Estimating the organization’s total annual overhead expense for a given year, then dividing by the total expected labor cost to be billed out in that year.

Question 45

How are time based forecasts prepared? How used?

Answer 45

“It is a projection of how project costs will vary depending on project schedule.
The two kinds: weekly costs and a profile of cumulative costs. The first is derived from a time-based network. It considers all the activities scheduled in each week, then sums the costs of these activities to show the cost of the project in each week. The cumulative cost profile is derived from the weekly profile by adding the costs for each week to the sum of the costs for all previous weeks. Managers use the two forecasts to determine cash requirements necessary to meet project expenses. They help managers determine the best way to schedule work activities and make payments such that expenses do not exceed cash reserves.”