Understand Planning for Success Flashcards
Why is investment appraisal required
benefits realisation takes time which reduces their value the longer they take
What does NPV stand for
Net Present Value
What does NPV identify
the residual value once the initial investment has been recovered, taking the cost of capital into account
What does IRR stand for
Internal Rate of Return
what does the IRR identify
- the rate of return from the value of a project.
- project options can be compared against target rates so an objective decision can be made
what is the definition of information management
it is the process of collection, storage, curation, dissemination, archiving and destruction of documents, images, drawings, etc.
what are the 6 steps of the information management process
Collection Storage Curation Dissemination Archiving Destruction
what happens during the collection phase of the information management process
- data received from meetings, reports, reviews
- filing structure
- document control system
- multiple formats
what happens during the storage phase of the information management process
- document management system
- secured / levels of access
- classified / legal implication for data
what happens during the curation phase of the information management process
- management of data
- future value
- when is obsolete / destruction
- access future proofed
what happens during the dissemination phase of the information management process
- information management & communications plan
- stakeholders get relevant information for decisions
- access rights
what happens during the archiving phase of the information management process
- archived with audit trail of changes
- catalogued for easy access
- obsolete data destroyed as per policy/legislation
what happens during the destruction phase of the information management process
- clear system of obsolete data
- legislative compliance
- data destruction policy
what is the project management plan
- the output of the definition phase
- integrates fundamental components of scope, schedule, cost, risk, quality and resources
- PM owns PMP
what is the deployment baseline
- plan for the execution of the project
- baselines for scope, timeline, resources and budget
- support the PMP
what is the relationship between the deployment baseline and PMP in linear life cycle
- assumption all work can be defined, estimated, scheduled, risked, resourced and costed
- different levels of detail but baseline established
- deployment can be managed and controlled
- planned value for whole project
what is the relationship between the deployment baseline and PMP in iterative life cycle
- baseline required with flexibility built in
- baseline resources and schedule determined
- scope and quality may vary from plan
- teams have autonomy to act on new knowledge
- incomplete work added to backlog allowance
what is estimating
methods to produce a prediction of the time and resources required to complete the project scope to quality requirements
what are the purposes of estimates
- economic analysis appraisal and option selection
- input to resource scheduling
- enable budget setting
- start for risk analysis and contingency determination
what will determine the estimate method used
- point in the life cycle estimate is being done
- time available
- detailed information available
what is the Parametric estimating method
- uses statistical relationship between historical data and other variables
- specification vs parameters (length/sqm vs unit rate)
- unit rates from previous projects or technical publishers
- can be accurate for duration and cost if scope accurate
- care needed to ensure conditions/factors are similar
what is the Analogous estimating method
- comparative method
- data from similar project required
- historic project same size, complexity and method
- previous cost becomes new estimate
- factor in known variables (10% extra for costs)
what is the Analytical estimating method
- detailed scope defined in WBS
- estimates for labour/non-labour resources for activities in scope
- bottom up method
- can be delegated to those completing work
- all estimates summed
- produces costs estimate only
- duration not suitable as work packages can be done in parallel
what is the Delphi estimating method
- individual group members create estimates in isolation
- submit to focal point
- facilitator reviews and makes summary report
- additional data fed back to make estimate
- once satisfied all been considered closed
- becomes agreed estimate
what are reasons for re-estimating through the project lifecycle
- project uncertainty will decline
- different estimating method can verify estimates
- increase in accuracy
- estimating funnel
- accuracy increases / contingency decreases
what happens with re-estimation during the definition phase
- WBS is available so duration/work estimation can be done for assignments
- using work packages improves estimating accuracy
what happens with re-estimation during the deployment phase
level of detail in this phase allows parametric estimating
what happens with re-estimation during the concept phase
analogous estimation based on previous projects
when can Delphi estimation be used
at any point in lifecycle - more for consensus rather than produce a estimate
what are benefits of re-estimating through the project lifecycle
- reduced contingency reserves
- greater involvement of project team
- incorporation of lessons learned
- adherence to overall estimate
- minimising effect of estimating errors
what are the elements of stakeholder analysis
- identify key stakeholders
- assess interest and motivation in project
- identify how those affect risk and viability
- formulate appropriate forms of engagement
how can stakeholders be catergorised
For or Against the project
High or Low Interest
High or Low Power
what are the steps to categorising stakeholders
- identify and map stakeholders
- analysis interests, influence and power over project
- develop plan how each group will be managed
- maintain appropriate engagement
why must stakeholders expectations be managed
analysis consumes resources to the PM must justify this
how does stakeholder management enable more effective risk management
- lots of or powerful negative stakeholders are a risk
- risk can then be mitigated
how does stakeholder management enable improved communication planning
- analysis defines key communications requirements
- essential for effective engagement
- appropriate information sent at the right time
how does stakeholder management ensure a productive team is formed
- choosing engagement strategy will decide if they need a place on team
- partnering, consultative
- many stakeholder groups may need team
how does stakeholder management enable effective engagement
- use and sustain positive interest
- minimise or remove negative interest
how does stakeholder management increase likelihood of project being accepted
- identify important stakeholders
- they may decide if output accepted
- aim to satisfy their needs
what 3 elements are needed for Earned Value Management (EVM)
- a baseline to measure against
- data on actual performance
- assessment of implications of performance to date
what will be agreed between PM and Sponsor in the progress monitoring approach
- achievement of planned scope to required quality
- motivation and satisfaction of team
- performance contractors and relationships in supply chain
- committed costs and cash flow
- changes to risk and contingencies
- effective comms with stakeholders
how is earned value represented
the actual budgeted value work completed at the point of measurement
what does earned value track
- actual work achieved compared to how much it cost to deliver that work, showing cost performance
- actual work achieved compared to how long it’s taken to deliver that work, showing schedule performance
Why would a PM use EVM
- allows for regular performance monitoring of time, cost and risk
- reporting performance against baseline
- any areas out of control are flagged for action
what does the S-curve show
- the planned budget for the project as cumulative data plotted against time showing how funds are expected to be consumed
- can establish when funds will be needed
What is BCWS (PC)
budgeted cost of the work scheduled / planned cost
what is ACWP (AC)
actual cost of work performed / actual cost
what is BAC
budget at completion (total planned budget)
what 2 ways is performance viewed
- cost performance
- schedule performance
what is BCWP (EV)
budgeted cost of work performed / earned value
how is the current performance schedule variance calculated
EV - PC = SV
< 0 = behind schedule
0 = on schedule
> 0 = ahead of schedule
how is the current performance cost variance calculated
EV - AC = CV
> 1 = good performance
< 1 = bad performance
how is the earned value (EV) calculated
EV = Physical % complete x BAC
how is the cost performance index (CPI) calculated
EV / AC = CPI
> 1 = good performance
< 1 = bad performance
how is the schedule performance index (SPI) calculated
EV / PC = SPI
> 1 = good performance
< 1 = bad performance
what is Estimate at Completion (Cost) (EACc)
the projected final cost for the project
how is the Estimate at Completion (Cost) calculated
BAC / CPI = EACc
what is the Estimated Final Duration (FD)
the projected final duration for the project
how is the Estimated Final Duration calculated
PD/SPI = FD
what are benefits of using the interpretation of earned value data
- enables objective measurement of project to be communicated to stakeholders
- basis for estimating final cost
- enables prediction of when project will be completed
- supports effective management of resources
- means for managing and controlling change
what is contingency
- resource set aside for responding to identified risks
- to match gap between the un-risked plan and desired level of confidence
what is the management reserve
non-specific provision for unidentified risks
what is the risk budget
unallocated provision for identified risks
what is a monetary value contingency used for
dealing with impacts on cost or financial benefits
what is a time contingency used for
dealing with impacts on schedule
