Workshop 5 Flashcards

1
Q

Define Human Resource Management

A

Managing people-related activities within an organisation to meet its strategic goals

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What are the spectrum of structures in organisational structures?

A

There is a spectrum of structure which varies according to how power is shared out between the functional and project management parts of the organisation.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Describe the Organisational Continuum

A

Imagine a rectangle with a line going from the top left to the bottom right. On the left side of the rectangle represents Line Manager Authority, on the right side of the rectangle represents the Project Manager Authority.
The rectangle is split into 5 sections - from left to right:
- Functional
- Weak Matrix
- Balanced Matrix
- Strong Matrix
- Project

One side of the organisational continuum indicates that a functional organisation, the functional manager has full authority, i.e. they have control over everything that takes place within that department.
The other side of the continuum indicates that in a project organisation, the project manager has full authority. The project manager has control over everything that happens in the project.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Outline Functional Matrix Organisation

A
  • Traditional departments headed by functional managers
  • All departmental staff report to that manager
  • Any projects that are required are co-ordinated at a senior level
  • Project management approach is immature and confidence in running projects is limited
  • All experience is associated with routine operations and optimisation of process and outputs.
  • External customers see no single project manager.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Outline Balanced matrix organisation

A
  • This matrix provides a balance of authority between
    the departmental head (s) and the project manager(s)
  • Projects are resourced by drawing full or part time staff
    from departments
  • Teams may be co-located
  • Good for organisations that do lots of projects and
    routine operations
  • Project Managers have authority for the project
  • Departmental managers have authority for the project.
  • Project managers may be located within departments
    or in a project office.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Outline Project Matrix Organisation

A
  • Staff members work in dedicated full time project teams which are commensurate to the size of the project.
  • The project manager has full authority
  • This type of organisation is common for very large projects or organisations whose primary business is project-related
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are the types of matrix structures

A

Weak matrix
- As functional organisations undertake more projects and experience and confidence builds, authority can be delegated downwards. This often leads to the appointment of a project co-ordinator within a department. However, authority remains weak from a project perspective.

Balanced Matrix
- The business of many organisations is likely to be a mixture of projects and business-as-usual. The balanced matrix recognises the need for a dedicated project manager but falls some way short of delegating full authority for the project to this individual

Strong Matrix
- As projects increasingly contribute to the revenue stream of the organisation, more resources can be invested in project teams. This is often reflected in the setting up of a projects department or project office. The projects department is responsible for providing full/part time project managers for projects. Team members continue to be drawn from functional departments.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Strengths and weaknesses of Functional organisation

A

Strengths

  • Develops strong specialist skills
  • Facilitates efficient resource usage
  • Departmental lines of communication are clear.
  • Good is project is contained within one function
  • Compromise solution for organisations that do not undertake many projects

Weaknesses

  • Tends to concentrate on specialist goals
  • Inadequate integration - lack of motivation?
  • Inhibits development of general management skills
  • Slow response/rate of change
  • Little customer focus - single point of contact?
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Strength and Weaknesses of Matric organisation

A

Strength

  • Balance between projects and business as usual.
  • Integration of projects within functional departments.
  • Specialist knowledge is developed and not lost
  • Global priorities are visible
  • Flexible and efficient use of resources

Weaknesses

  • Individuals have two or more bosses
  • Project managers feel they have inadequate authority
  • Organisation structure is more complex
  • Functional and project resource problems
  • Conflict and stress are likely
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Strengths and weaknesses of Projectised organisation (task force)

A

Strength

  • Strong commitment to the project - single purpose and a high degree of autonomy.
  • Integration of multiple disciplines
  • Develops general management skills
  • Clear management definition - team members know where they stand
  • Can operate with informal communications
  • Precise budget including transparent PM costs.

Weaknesses

  • Highly visible - may upset establish organisation.
  • Duplication and inefficient resource usage therefore increased cost
  • Reduced job security and unclear career paths
  • Constant change
  • May be prone to symptoms of ‘groupthink’
  • Sharing of lessons - learned can be problematic
  • Team can become distracted near end of project.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Define Procurement

A

is the process by which products and services are acquired from an external provider for incorporation into the project, programme or portfolio

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Outline Procurement Strategy

A

Addresses the needs of the project whilst respecting any organisational constraints and/or strategic objectives that may be relevant.
The project manager needs to think about:
- Using competition when practicable to ensure best value for money
- Market conditions and number of potential suppliers
- Only using fixed price when there is a clear scope
- EU rules, OJEU objectives include
- A more transparent and objective procurement
process whilst encouraging competition amongst
bidders
- Public Procurement Directives that are intended to
ensure fair and non-discriminatory international
competition for contract greater than defined
threshold values
- Deciding on the best procurement route or approach
- Make, Buy, Hire, Lease, Joint Venture, Private Public
Partnership
- Availability of funds
- Supplier interfaces
- Needing ‘taut’ contracting terms and conditions
- Risk - The following areas of risk might have an impact
on any project objective:
- Quality - use inspections and expediating; enforce
the contract
- Health and Safety
- Intellectual Property Rights
- Financial stability of each party
- Type of Contract and transfer of risk
- Pricing Strategies
- Contractor selection process

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Define Sustainability as part of Procurement

A

An environmental, social and economically integrated approach to development that meets present needs without compromising the environment for future generations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Outline Provider selection and management as part of Procurement

A

The process of identifying, selecting, appointing and supervising providers through the project life cycle. Provider or supplier selection involves the preparation of contract documents through formal tender and proposal documents. and the subsequent submission of bids by potential suppliers. The typical steps involved in obtaining the goods and services that are needed on a project are:

  • Research
  • Pre-qualification
  • Tendering
  • Award
  • Management and contract
  • Closure of the contract

Activities as referred to in the APM BoK 6th edition

A. Research
The project manager will need to identify what goods or services are needed for the project and which providers have the required capability. It is important to develop a clear and unambiguous understanding of the project procurement requirement and how and by whom it will be approved.
- Create as full a definition of the procurement exercise as possible. This may include generation of a statement of work, specifications, etc.
- Developing schedule and cost estimates
- Obtaining authorisation to proceed

Statement of work: An annex to the main body of a contract that defines the detail of deliverables, timescales and management procedures.

B. Pre-qualification
Establishes which of the potential bidders are able and willing to carry out the work required.
Advertise/Issue Intent: Potential suppliers are invited to bid for the goods/services required in response to an advertisement or some other form of notification.
The following factors should be considered
- Nature of supplier organisation
- Financial position
- Experience
- Management arrangements and personnel
- Past performance

C. Tendering
The advertisement/notification should make it clear what the business need is so that suppliers can determine whether they have the appropriate skills and resources needed to satisfy the requirement. Evaluation criteria may also be published.
The selection of providers must be based on objective criteria thereby ensuring a transparent and non-discriminatory process.
The selection criteria might include:
Quality - does the supplier have the technical know-how required to complete the work?
Price - Does the offering provide value-for-money
Capacity - Does the supplier have access to the necessary resources in order to fulfil the terms of the agreement?
Reliability - Is the supplier commercially secure in terms of their financial controls and/or trading position?
Compatibility - Are the supplier’s management approach and policies consistent with those of the buyer?

D. Contract award
The contract should be subjected to rigorous internal review to confirm compliance with appropriate technical standards/guidance.
Acceptance criteria, timescales and payment details should be clearly defined, understood and agreed with all parties.
The process leading to contract award is likely to include:
- Negotiation of terms and conditions with the winning supplier.
- Debrief of other suppliers - demonstrating that the process was objective and fair.
- Contract offer, acceptance and commencement

E. Management of the contract
The relationship between customer and supplier needs to be actively managed. In particular the contract documentation should be maintained especially where any changes to services, requirements, procedures or contracts are concerned. Changes and/or issues pertaining to the relationship or contract must be communicated to the relevant stakeholders on both sides.
Expediting is a term that refers to the pro-active management of the contractual relationship to ensure that the time, cost, quality and other performance criteria are kept on track and under control during the life of the contract.
Considerations in this regard include management attention to:
- Customer/suppler communication and escalation channels
- Progress chasing
- Acceptance arrangements
- Regular assessment of supplier performance against agreed criteria.

F. Contract Closure
Once the work covered by the contract has been completed to the satisfaction of all parties, the contract will be closed. Elements of this may occur within the Handover and Closure phase.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Outline Contractual Relationships as part of Procurement

A

Various types of contractual relationships exist and these should be aligned to the objectives and context of each individual project.
The types of contractual relationships are as follows;

  • Comprehensive - This approach is sometimes known as a ‘turnkey’ contract where one part assumes responsibility for everything involved in the development and implementation of a specific solution. The assumption is typically that a single supplier has direct access to all the resources required to undertake the project.
  • Parallel - The customer manages the relationships between all the various specialist suppliers. This allows the customer to have more control of performance and/or cost but can involve significant management of the interfaces.
  • Sub-contract - Suppliers may employ several sub-contractors, particularly where the project requires the input of specialised goods and services. These can be ‘Back to Back’ and/or conditional. Although the ‘prime-supplier’ takes responsibility for management of the interfaces, the customer should ensure that quality is maintained on out-sources work packages.
  • Sequential - The sequential use of two or more contractors during a project. This approach is often used when a project is too complex to be covered by a fully defined contract at the outset of the project. The customer must understand the risk involved in this approach as it is not possible to define the overall project cost before engagement begins.
  • Partner/alliance - The customer and the supplier work together to manage their contract and plan to avoid and control problems and risks. The strengths and weaknesses of this approach are very similar to those associate with ‘Pain-share/Gain-share’ payment terms
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Outline Terms of Payment as part of Procurement

A

Both the customer and the provider need to be comfortable that the chosen payment method motivates each party to satisfy the project objectives.
Considerations when selecting payment methods will include:
- The ability and/or requirement to start work as soon as possible
- How well defined do requirements need to be before contract is agreed
- Who owns the risk(s)
- What level of supplier management is required (effort/knowledge)
- How easy is it to manage/implement scope changes
- How might quality be impacted by specific payment terms.

Many different types of supplier payment are possible. These typically fall into three main categories:

Fixed Price
Total price for a well-defined product.

Advantages

  • Financial commitment is known up-front.
  • Required minimum administration from a buyer’s perspective.
  • The supplier carries the greater financial risk

Disadvantages

  • Contract profit is not visible to customer.
  • Must specify exact requirements before project starts.
  • Requires detailed scope definition.
  • Bis process can take time.
  • Where cost is fixed, quality may suffer.

Types of Fixed Price
FFP - Firm and Fixed Price (Price set a project start and not subject to change unless scope changes. Very common)
FP-CPA - Fixed Price + Cost Price Adjustment (Price set but may be adjusted if economic conditions chance (e.g. inflation))
FPIF - Fixed Price + Incentive Fee (Fee may be adjusted if supplier meets agreed performance metrics)

Cost Reimbursable
Supplier is reimbursed for the costs they incur in performing the work plus a lump sum or percentage fee.

Advantages

  • Can appoint supplier earlier than on Fixed Price contracts.
  • Supplier profit is visible (not true on Time and Materials).
  • Easier for customer to influence project direction.
  • Easier to manage if time or quality is main objective.
  • Most Flexibility to customer

Disadvantage

  • No incentive for supplier to minimise costs.
  • Significant administration of contract required.
  • Less mature approach to project management may exist on supplier side.

Types of Cost Reimbursement
CPPC - Cost Plus Percentage of Costs (Supplier is reimbursed for all allowable costs plus an agreed percentage)
CPFF - Cost Plus Fixed Fee (Supplier is reimbursed for all allowable costs plus an agreed fixed fee payment)
CPIF - Cost Plus Incentive Fee (Supplier is reimbursed for all allowable costs plus a predetermined incentive fee for achieving certain targets, for example; cost savings may be shared between the supplier and the customer)

Time and Materials
T&M - Time and Materials (Supplier is reimbursed for provision of services)
Unit Rate - Supplier is reimbursed for provision of agreed deliverables

Incentive Terms
Pre-defined incentive fee is paid depending on achievement of key objectives (pain-share/gain share).
Term commonly used when describing incentive payment terms but can take various forms, including a partnership agreement between customer and supplier.

Advantages

  • Can work well whatever the relative priority of quality, cost and time objectives
  • Both parties share risks and benefits.
  • Contract profit is visible to both parties.
  • All parties work towards success.

Disadvantages

  • Incentives do not always drive the appropriate behaviours
  • Needs a big investment initially to build a stable and trusting relationship.
  • Not suitable unless a long-term relationship is envisaged - based on realisation of mutual benefits
  • Relies on clear roles and responsibilities between both organisations to manage issues like cost control.

In addition to the payment terms described above, contracts may be subject to other stipulations based on supplier performance e.g.
- Retention
Retention money provides the customer with a limited fund to pay for the correction of identified defects in the project deliverables
- Liquidated damages
This is a stipulation in a contract of a monetary amount that must be paid by the contractor if the contractor or any subsequent modification. Payments are in lieu of a demonstrably genuine pre-estimate of the damages related to the failure.
- Variations
Where external change has an impact on the project objectives, variations might be agreed to account for time, budget and performance considerations. If not managed correctly, variations can be a major threat to project success and/or the customer-supplier relationship

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Define Teamwork

A

A group of people working in collaboration or by cooperation towards a common goal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What can go wrong with teams?

A
  • Communication Problems
  • Competition over leadership
  • Conflict among team members with differing outlooks, objectives
  • Difficult leaders
  • Insufficient resources and rewards or lack of interest
  • Lack of senior management support
  • Lack of commitment
  • Shifting goals and priorities
  • Unstable environment
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What are the characteristics of effective teams

A
  • Shared aims - members believe in the collective goals of the project
  • Trust - there is a climate of trust and members are encourages to openly discuss ideas and issues without fear of retribution
  • Communication - communication channels are defined allowing information to be shared freely amongst team members
  • Shared skills - Complimentary skills exist within the team, allowing members to interact and decisions to be made quickly and in an informed manner
  • Good relationship with other teams - the team acknowledges the need to work with other parts of the organisation and fosters a mutually beneficial working relationship
  • Effective leadership - the project manager is seen as a credible and effective leader; team members are also encourages to assume leadership of the team when appropriate to do so
  • Self-regulating - the team is self-managing, self-organising and self-regulating and holds themselves mutually accountable for their actions.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What will an effective project manager do in a team?

A
  • Clarify goals through discussion and set SMART objectives
    • Specific
    • Measurable
    • Agreed
    • Realistic
    • Time-bounded
  • Define roles, responsibilities, reporting relationships
  • Establish appropriate client - supplier links
  • Encourage a sense of team identify and belonging
  • Provide recognition early on and celebrate success!!
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What are the differences between groups and teams

A
T = team
G = group

Skills-set and interests
T - Team members are selected on the basis of their individual and typically complimentary skills. Often teams are cross-functional in nature, operating in a matrix structure, which makes the careful selection of team members all the more crucial to its overall effectiveness.
G - Groups often have a commonality amongst the membership that is not found in teams. Commonality of interest might lead to less conflict than that normally witnessed within a team although this may be untrue if the group needs to reach a consensus decision.

Ease of creation
T - Team members each bring their own set of skills, ideas and aspirations to the team. It is far likely that the development of the team will be a more dynamic process than the setting up a group
G - Due to the similarities that exist between group members they are typically easier and quicker to form than teams. A higher level of stability is also likely within groups with this stability again being easier to achieve.

Level of interaction
T - The team’s strength lies in its ability to interact effectively. Each specific role is likely to have an impact on another team member. A higher level of social interaction is also likely in teams
G - Group members may operate in a relatively isolated fashion, taking guidance from the group’s leader as and when required.

Accountability
T - The output of a team is likely to be highly dependent on the collective efforts of the members. Members are likely to play a greater role in the adopted approach and decisions of the team. A team member is who is absent is likely to have far greater impact than an absent group member.
G - Shared accountability is not a prerequisite for the majority of groups where accountability and ownership of action is often left to the individual. For the majority of group members, their individual actions are unlikely to have significant impact on the rest of the group.

Size
T - Teams are likely to be smaller in size than groups. Individual buy-in is crucial in teams and this will be more difficult to achieve if the size is too great.
G - Groups can grow very large indeed. When there is no great need for collective decision making and working processes are largely defined, buy-in from individual members is not normally necessary

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What are Tuckman’s Stages of Development?

A
Forming
At this stage, the set of individuals has not yet become a team. Individuals explore each other's attitudes and backgrounds. Members are also keen to establish their individual identities and make a personal impression on others. 
Common behaviours 
- Hesitancy
- Confusion
- Anxiety
- Lack of purpose
Storming 
This is a conflict stage in the team's life and it can easily become uncomfortable. Members bargain with one another as they attempt to sort out what each of them wants individually, compared to what the collective wants. It is likely that interpersonal hostility may be generated as differences in individual goals are revealed and the early relationships established in the forming stage may be disrupted. 
Common behaviours
- Leadership challenged
- Opinions polarised
- Conflict
- Cliques form
Norming
The team usually develops a way of achieving its objectives together. The questions of who will do what and how are addressed. Working rules are established in terms of norms of behaviour and role allocation. A framework is therefore created through which each member can relate to the others. 
Common behaviours
- Open communication
- Common values
- Harmonisation
- Cohesion
Performing 
The performing stage is concerned with actually getting the job done. A fully mature team has been created, which can now get on with its prescribed work. Not all teams develop to this stage with some becoming stalled in an earlier stage. Also, any change or disruption to the cycle will cause the team to have to re-form and re-build their levels of collaborative performance. 
Common behaviours
- Flexibility
- Collaboration
- Insight and motivation 
- Shared responsibility
Adjourning
Adjourning involves dissolution. It has to do with the termination of roles, the completion of tasks and reduction of dependency. The transient nature of project teams makes them particularly prone to repeated cycles of adjourning and re-forming. There may be a sense of loss and anxiety at having to break-up or the departure of a colleague. The process can be stressful, particularly if the dissolution is unplanned. 
When a project has been relatively successful with few problems, conflict and in-fighting, team members may have that feel-good about themselves and the project as it draws to a close. They may also exhibit a decline in motivation as the project winds down and a feeling of loss and anxiety, particularly about their future. 
Common behaviours
- Loss of anxiety
- Decline in motivation
- Stress
- Feel good factor.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Describe Groupthink

A

is a danger for groups and teams that have continues to perform effectively for some time. Executive groups, management boards and specialist technical teams are vulnerable as they can also be isolated from mainstream activities.
Groupthink develops when the closeness of the group or team makes consensus-seeking the dominant force. A successful team or group is a very comfortable place to be. Hence it is easy for them to move to a state where members, as a result of long adaption to group norms, strive to not upset their ‘togetherness’. In this state, proposing alternative ways of doing things can somehow be seen as deviant and threatening behaviour.
This can be dangerous for the survival of the group or team. Those that do not change their composition, methods and aims to suit environmental changes, soon find themselves overtaken by events.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Outline Team roles

A
DS = Description/Strength
AW = Allowable Weakness
NW = Non-Allowable Weakness

Implementer
DS = Disciplines, Reliable, Practical
AW = Inflexible, slow to respond
NW = Obstructing change

Co-ordinator
DS = Mature, Confident, Clarifies goals
AW = Manipulative, Lazy
NW = Take credit for team effort

Shaper
DS = Challenging, Full of drive, Dynamic
AW = Provokes others, Hurts Feelings
NW = No apologies, No humour

Plant
DS = Creative, Unorthodox
AW = Ignores details, Preoccupied
NW = Ownership vs Cooperation

Resource Investigator
DS = Develops contacts, Enthusiastic
AW = Overoptimistic, Loses Interest
NW = Letting clients down

Monitor Evaluator
DS = Sober, Strategic, Sees options
AW = Lacks Drive, Overly Critical
NW = Cynicism, Without Logic

Team Worker
DS = Cooperative, Mild, Diplomatic
AW = Indecisive, Easily Influenced
NW = Avoiding pressure situations

Completer finisher
DS = Painstaking, Conscientious
AW = Inclined to worry, Not-picker
NW = Obsessive Behaviour

Specialist
DS = Single minded, Rare knowledge
AW = Overlooks big picture
NW = Ignoring important information

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What does the project manager need to do to ensure the project team members support and what are the results?

A
  • Develops team members professionally/personally
  • Provides an interesting and stimulating work environment
  • Fosters excellent communications and interpersonal relationships throughout the project
  • Taps into a complementary mix of skills and experience leading to creative ideas.

Results

  • Greater commitment to project aims and objectives
  • Better prospects of achieving project success.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Outline Maslows Hierarchy of needs

A

Maslow’s Hierarchy of Needs states that we must satisfy each need in turn, starting with the first, which deals with the most obvious needs for survival itself.

Physiological - The basic needs for air, food, water, sleep etc. When these are not satisfied we may feel sickness, irritation, pain, discomfort, etc. Once these needs are met we may think about other things.

Safety - These needs are mostly psychological in nature. We need the security of a home and family. They may include security, personal safety, predictability and order.

Social - Humans have a desire to belong to groups: clubs, work groups, religious groups, family, gangs, etc. We need to feel a bond with others, to be accepted by others. We need to be needed.

Esteem - There are two types of esteem needs. First is self-esteem which results from competence or mastery of a task. Second, there’s the attention and recognition that comes from others. This is similar to the previous level; however, wanting admiration has to do with the need for power.

Self-actualisation - The need for self-actualisation is the desire to become more and more what one is, to become everything that one is capable of becoming. People who have everything can maximise their potential. They can seek knowledge, peace, aesthetic experiences, self-fulfilment, etc.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Outline Herzberg’s theory of motivation

A

Herzberg identified two independent categories of need which influence behaviour in different ways:

Motivators:
These factors cater for the higher level needs and should help to positively influence behaviour, often relating to the need for personal development. Examples of motivators include achievement, recognition, increased responsibility and career advancement.

Hygiene Factors:
The need to avoid unpleasantness and discomfort. These factors influence the degree of dissatisfaction of a worker without necessarily increasing their motivation. Examples of hygiene factors include company policies, direct supervision, personal-life and interestingly….salary

It is important to note that:

  • Motivators can increase satisfaction and hence motivate
  • Hygiene factors cannot motivate, but in their absence, may de-motivate
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Outline Vroom’s expectancy theory

A

Vrooms Theory is based on the premise that individuals have certain expectations about the consequences of their own behaviour. Where an individual perceives a clear link between increased effort and improved performance, followed by achievement of a values outcome, it is likely that this effort will be maintained.

Two types of outcome may be achieved:

Intrinsic: These outcomes are not given to team members by a third party. They are self-attained and may include factors such as achievement of the task itself or enhanced ability.

Extrinsic: These are provided to the individual by another party and may include outcomes such as praise or tangible reward. Where the outcome is clearly aligned to an increase in performance then job-satisfaction is likely to be maintained or increased.

It is important that the project manager ensures that individual team members have the opportunity to achieve the desired level of performance by making sure that:

  • Objectives are clearly set
  • Appropriate feedback and guidance is offered
  • Necessary resources are made available
  • The team member has the appropriate level of competence to carry out the assigned work
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Define Leadership

A

The ability to establish vision and direction, to influence and align others towards a common purpose and to empower and inspire people to achieve success.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

What is Management and Leadership?

A

Management is; how we do it

  • Always required, particularly in business-as-usual contexts and focuses more on evolutionary change or continual improvement
  • Focussed on the ‘how’ and the ‘when’
  • Concerned with speed, efficiency and quality
  • Most effective when controlling tasks against specifications or plans
  • Focussed on tasks, delivery and process

Leadership is; why we do it

  • Particularly required in the context of change. It clarifies the ‘as is’ (current situation), the vision of the future and thrives in the tension between the two
  • Inclined to clarify the ‘what; and the ‘why’
  • More concerned with direction, effectiveness and purpose
  • Most effective when influencing people by communicating in face-to-face situations
  • Focussed on meaning, purpose and realised value.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Outline Will/Skill - Successful Leadership

A

Project managers must consider the most appropriate leadership style for each situation that they may be faced with. This will typically depend on contextual factors such as:

  • The nature of the task and/or project
  • The resultant impact if the execution of a task is unsuccessful and
  • The team that is being managed

Skill level refers to the experience, training and understanding of the task allocated to the team member.
Will level refers to the desire of to achieve, possibly based on incentives being offered and the level of security or confidence of the team member.

High Will, High Skill = Delegate
High Will, Low Skill = Guide
Low Will, High Skill = Excite
Low Will, Low Skill = Direct

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

What are the guidelines on which approach and when to use the approach in Will/Skill Leadership

A

Direct (Low Skill, Low Will)
Use when the team member:
- Is new to the task, project or role
- Has low confidence
- Has tried before and failed
How to use:
- Build the will - provide clear briefing and specific instructions. Develop a vision of future performance. Identify what motivates them
- Build the skill - Structure tasks for ‘quick wins’ - provide mentoring and training
- Sustain the will - provide frequent feedback - acknowledge good work, nurture team member through praise.

Guide - High Will/Low Skill
Use when the team member:
- Is an enthusiastic beginner, new to a particular task, project or role
How to use:
- Use a combination of directing (telling) and guiding/coaching (inquire/ask/use open ended questioning) to build their skill.
- Invest time - answer questions and explain
- Create a risk free environment to allow for early mistakes and learning
- Relax control as progress and development is shown.

Excite - High Skill/Low Will
Use when the team member:
- Is a skilled, experienced person who has hit a plateau
- Needs a new challenge
- Is being affected by some other factor
How to use
- Identify the reason for low willingness and low motivation - consider the assigned task, management style or personal factors. 
- Monitor and provide (regular) feedback

Delegate - High Will/High Skill
Use when the team member
- Is a skilled worker looking for more opportunities to grow and develop.
How to use
- Provide freedom to complete the work - set the objective, not the method.
- Praise (do not ignore)
- Encourage the team member to take responsibility - involve them in decision-making. Offer your opinions sparingly, and only if there is a very good reason for doing so.
- Take appropriate risks - give more demanding (stretching) tasks and do not over manage the team member.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Define Delegation

A

The practice of giving a person or group the authority to perform the responsibilities of, or act on behalf of, another.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

What are the characteristics of effective leadership

A

Effective leaders often display common characteristics that help to define their leadership style.

Communicator:
Having the ability to define and communicate a vision in a manner that meets the needs of each stakeholder.
Charismatic:
Often closely linked to communication skills, charismatic project managers are able to appeal to stakeholders and present compelling arguments.
Attitude (Can-do):
Positive project managers help create a similar attitude within their team, thereby helping them to achieve challenging goals.
Fairness:
Respect for differing views and opinions and integrity is important if the project manager is to gain the trust of team members and other stakeholders.
Persuasive:
Project managers will need to influence stakeholders by presenting compelling arguments
Inventive:
Creative solutions will often be required to resolve project issues in a timely manner
Adaptable:
A flexible and pragmatic approach will often be required to ensure that solutions are reached which accommodate the varying interests of project stakeholders
Common-sense:
Sensible solutions are required to satisfy the triple constraints of the project; the best technical solution may not be the optimum approach if the other project constraints are disregarded.
Open-minded:
Project managers must be open to new ideas and opinions in order that effective strategies are adopted to satisfy project objectives.
Vision:
Project managers must have the ability to define and communicate the project goals in a manner that encourages stakeholders and team members to follow their lead.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Outline situational leadership

A
  • Supportive (Relationship) behaviour on the left of the graph with high at the top and low at the bottom.
  • Directive (task) behaviour on the bottom of the graph with low to the left and high to the right.
    Arch starting at the bottom, going to the top, then back down.
    From left to right
  • Delegating - Be trusted to do work
  • Participation - Complete trust
  • Selling - Begin trust from manager
  • Telling - usually micromanaged

Mature to Immature
M4, M3, M2, M1

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

Define Project Plan execution

A

Project Plan execution Is very simply the implementation of the activities as defined in the Project Plan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Outline Governance and progress monitoring

A

The Sponsor should ensure that the governance and oversight continue to be appropriate throughout the life of a programme or project. It is essential that the relevant stakeholders are kept informed of key developments and project progress on a timely basis. This is intended to enable informed decision making and sign-off by the ‘right’ people/groups. The PM should make full use of the communications plan in this respect and it will entail:

  • Having the processes in place to understand
    • Achievement against timeline and expectation
    • Spend and forecast against budget
    • Human resource utilisation and forecasts
    • When/how to escalate issues

The approach to this is typically based on:

  • Setting limits of authority/escalation rules
  • Meetings
  • Reporting the information e.g.
    • Traffic lights (Red-Amber-Green/RAG) reporting
    • Exception reporting as appropriate
  • Taking action based on the information reported
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

What are the 2 definition of Reports?

A
  1. The presentation of information in an appropriate format

2.
A written record or summary, a detailed account or statement, or a verbal account

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

What are the two broad categories the reports normally fall into?

A

Variance Analysis:
Backward-look at what caused any difference between the agreed baseline targets and the present actual performance. Variances may be favourable or unfavourable

Forecasting:
Prediction of future performance based on actual performance to date. Typical examples of this within a project environment would include the use of earned value management information to predict a new forecast end date and an estimate of the cost at project completion.

40
Q

Where is reporting information generated?

A

Time-based methods:
For example - daily, weekly, monthly reports. These reports may include Checkpoint Reports, Status Reports, Red/Amber/Green Reports etc.

Event-based methods:
Created at an agreed point in the project life cycle; examples would include deliverable sign-off, stage-gate reports, end-project reports etc.

Ad-hoc
These reports may be created as and when required or upon request. Ad-hoc reports might include an unscheduled project audit, Exception Reports etc.

41
Q

Give examples of different report types

A

Progress;
Gantt charts, milestone slip charts, status reports (Checkpoint/Highlight), RAG Reports

Quality;
Test results, auditor’s report

Risk;
Risk Assessment

Finance;
Budgetary reports, cost variance spreadsheet, earned value forecasts

Review/audit;
Checklists, recommendations, process improvement, stage-gate report, project evaluation report

42
Q

Define Issue

A

A formal issue occurs when the tolerances of delegated work are predicted to be exceeded or have been exceeded. This triggers the escalation of the issue from one level of management to the next in order to seek a solution.

43
Q

Define Tolerance

A

A permissible variation in performance parameters.

44
Q

What is a formal issue resolution process likely to contain?

A

Identify:
Correct identification of formal issues is crucial so that appropriate focus can be placed on real issues (as opposed to minor concerns and/or project risks). An issue log will be used to document all formal issues and their present status.

Escalate:
The project manager will escalate the issue to an appropriate owner. The owner should then be held accountable for the resolution of the issue.

Monitor:
Like risks, issues must also be continually monitored to ensure that the resolution actions have had the desired impact.

Resolve:
Failure to elevate issues to the appropriate level or failure to follow through on resolutions can have dire consequences for the project. It is important that the project manager further escalates any issue where the original owner fails to deal with it within the agreed timescales. The issue log will be updated when issues are resolved.

45
Q

What does the Issue Log document?

A
  • Unique identifier to aid tracking of the issue
  • Description of the issue
  • Who identified the issue
  • Date that the issue was raised
  • Impact of the issue on the project’s objectives
  • Possible resolution
  • Issue owner (or who issue was escalated to)
  • Date of closure
  • Present status of the issue (open, deferred, closed)
46
Q

What requirements do information flows need to align with?

A
  • Governance groups e.g. Senior Management Board, Divisional Boards, Programme and Project Boards, Steering Groups
  • Programme and Project delivery groups
  • Corporate support functions e.g. Finance, Audit, Quality, Procurement, Marketing and Communications etc.
  • Benefit Owners
  • Portfolio, Programme and Project Offices
  • External stakeholders as appropriate
  • Project and programme reporting needs to align with:
    • The principle of management by exception
    • The use of highlight and exception-based reporting
47
Q

What is the Monitoring and control process?

A

This is the process of capturing, analysing and reporting of actual performance compared to planned performance, followed by analysis of variances, evaluation of possible alternatives and taking appropriate corrective action as needed.

48
Q

Define project control

A

Comprises tracking performance against agreed plans and taking the corrective action required to meet defined objectives.

49
Q

What are the types of control?

A

Cybernetic - Business Case - Changes based on circumstance
Whilst you are at the wheel of your car on the road, you are constantly adjusting speed and direction. This may involve slowing down, changing lanes steering around a bend and a host of other minor adjustments. Your eyes and ears are monitoring your progress and your brain makes decisions based on the information received compared with stored information about speed limits

Go/No Go - Lessons Learnt
Each time your reach a junction on the motorway, you have the option to turn around and go home. Maybe the weather is getting too bad to travel safely. Perhaps you heard on the radio that the motorway is closed further along. Possibly you are running so late you will miss your meeting and there is no point going on. At each junction you have the choice to keep going or go home.

Post-control
Having arrived safely, your host no doubt asks “how was the journey?” Maybe the route you chose was ideal and you will definitely come that way again. If it was full of road works you make a note to find an alternative. It’s too late to do anything about the journey you have just completed, but you are already thinking about the next time.

50
Q

Define Schedule progress monitoring

A

Control of the project schedule is normally fundamental to achieving the project objectives.
There are a number of areas that can impact upon schedule performance such as workforce productivity, scope changes, procurement lead times and deliveries, awaiting external body decisions or approvals, achievement of sub-project milestones and adherence to critical paths and network plans.

51
Q

Outline Milestone progress/Slip chart

A

A Milestone Progress or Slip Chart summarises progress towards completion of the milestones in a project. It is a very simple but effective method of showing progress to key stakeholders in a graphical and easy to understand way. Milestone Progress/Slip Charts have the added advantage of being easy for the project manager to create and update.
They simply require the extension of a vertical line representing the forecast timing of the milestone in each reporting period. The reporting period can be at any defined interval e.g. daily, weekly, fortnightly or monthly, depending on the size and duration of the project.
Milestone forecasts are tracked each time period. The diagonal line represents when a milestone is complete. It shows history and forecast. Each adjustment in milestone dates is indicated with an explanation.

52
Q

Define Slip chart

A

A pictorial representation of the predicted completion dates of milestones or activities compared to their planned completion dates.

53
Q

Define Budgeting and Cost Control

A

The estimation of costs, the setting of an agreed budget, and management of actual and forecast costs against that budget.

54
Q

What information is required for effective cost control

A
  • Budget (estimates) generally represented as an S-curve and used for comparing budgeted and actual costs against progress.
  • Details of committed costs including their expected timing
  • Measurement of work accomplished
  • Cash-flow (details of expected expenditure and income over the life cycle of project)
  • Forecast out-turn costs
  • Variance analysis
55
Q

The Project Budget is formed from the aggregation of?

A
  • Activity estimates
  • Work package estimates: Calculated from the consolidation of the activity estimates
  • Control Account (Also known as cost accounts): These accounts define the work to be performed, who does the work and who pays for it. It is typical for organisations to monitor costs at this level of detail
  • Cost baseline: The cost baseline will be used to monitor and control expenditure
  • Reserves
    • Contingency reserves: Funds set aside to cope with identified risks should the materialise
    • Management Reserves: Funds set aside for unforeseen issues and changes.
56
Q

Outline Cost Breakdown Structure

A

The cost breakdown structure is a hierarchy typically derived by mapping the Work Breakdown structure against the organisations system of cost accounting. The integrated structure allows costs budgets to be allocated to each work package in line with the work to be undertaken and the time and quality objectives to be achieved.
Summary levels are produced to show the overall project spend profile corresponding to the cost breakdown structure. The system enables costs for each work package to be broken down into each cost type to provide greater visibility and control, such as labour types, materials and expenses. An effective cost breakdown structure is essential for Earned Value analysis

57
Q

What are the cost typically incurred in a project that will need to be recorded, tracked and managed?

A

Committed Costs:
Where a placement for an order for work to be done has been made, whether or not the work is yet to be started.

Accruals:
Work that has been partly or fully completed and for which the project has not yet been paid but for which payment will be due.

Actual Costs:
This money has been paid out of the budget for services rendered or materials purchased.

Forecast Out-turn Cost:
This is simply the total of Committed Costs, Accruals and Actual Costs plus the estimate of the costs remaining in the work packages required to complete the project.

58
Q

dEFINE committed EXPENDITURE

A

Costs that have not yet been paid but cannot be cancelled.

59
Q

How can project costs be profiled as?

A
  • Initial commitment
  • Legal commitment
  • Actual spend
60
Q

Outline Cost monitoring and reporting

A

The essence of cost monitoring and control is to compare actual costs with planned costs and take appropriate corrective action to remain ‘on budget’. Regular reviews of progress against plan are essential. Variances between planned and actual expenditure need to be identified and acted upon.

The PM will need to put actions in place for the regular collection of progress information on project tasks, based on:

  • Inspection of outputs
  • Appropriate supervision of project staff
  • Measurement of supplier performance

They should establish an appropriate reporting frequency in line with the scale and complexity of the project. They should also follow a standard reporting format and compare the progress information with the baseline plan.

The result of this process will provide information for management action according to agreed procedures. It is important to take action against true variances.

61
Q

Variance is due to what factors?

A
  • Accuracy of the baseline plan
  • Errors or omissions in the scope statement/WBS
  • Schedule slippage
  • Supplier performance
  • Scope increases or reductions
  • Specification revisions
  • The occurrence of a risk with its resultant contingency or workaround actions.
62
Q

Outline Cash Forecast

A

By comparing the cash outgoing on the project (S curve or budget) against the projected inflows, a cash flow can be generated.

This is the cumulative picture of all cash outflows and inflows over the life of a project. It is a valuable reporting tool and should be kept up to date throughout the project.

  • S-Curve - expenditure forecast
  • Payment plan - revenue forecast
    • Depends upon contract terms and conditions:
      • Milestone payments
      • Stage payments
      • Payment on completion
      • Retentions
      • Use of credit
      • Interest on loans
      • Stock levels
63
Q

What is good cash flow achieved by?

A
  • Ensuring payments are received on time
  • Making use of credit on purchases
  • Using the most appropriate form of financing for significant capital projects
  • Retaining appropriate stock levels (JIT)
  • Negotiating good contract terms.
64
Q

What is Profit managed by?

A
  • Ensuring adequate return on sales (gross profit)

- Controlling overheads and project direct costs.

65
Q

What should the sponsor do to take an active interest in programme and project finances

A
  • Set up the programme or project from the outset with coherent financial plans and a proper finance function
  • Monitor financial progress as the programme or project develops, take action to keep to budget and report the position to business area central finance
  • Make sure that the business has provided for the financial effects of the project when they hand it over to ‘business as usual’
66
Q

What are the 10 questions the Sponsor should be asking each month

A
  1. How has the budget for the current year been profiled?
    - Is expenditure expected to occur rate or fluctuate during the year? Does the pattern make sense when compared with planned project/programme activity? Budget profiles should reflect the most realistic expectations of when expenditure (on an accruals basis) will occur.
  2. How much has been spent on the project so far in the current year?
    Is the information on delivery status consistent with the financial status (e.g. if delivery is slower than anticipated, is spend below budget to the same degree?) This highlights inconsistencies with the financial status of the project.
  3. What are the reasons for any significant variances against the year to date budget?
    If the finance team cannot explain the reasons for any significant variances against the year to date budget there is risk they do not understand the drivers of spend and as a result the forecast may be unreliable.
  4. What is the forecast outturn against budget for the current year?
    Will programme/project spend match the delegated budget, or will it under-spend or overspend? If so, by how much, and why? Potential overspends or under-spends need to be identified and corrective action taken within the programme/project or in conjunction with organisational portfolio level finance teams.
  5. What is the basis of the forecast?
    Have detailed calculations been prepared? How much reliance can be placed on this forecast? Are there any weak assumptions or elements that have not been factored into the forecast?
  6. What will be the impact of expected current year outturn on future years funding requirements?
    If the project under-spends this year, will an additional amount of funding be required next year? Speak to portfolio level finance teams to agree adjustments to future years’ budgeting plans.
  7. How realistic is the full year forecast? (Often applies to public sector)
    E.g. if only £1m has been spent in the first half of the year but the full year forecast is to spend £5m, can the project realistically spend another £4m in the last 6 months of the year?
  8. How much has the project, programme spent so far in total against approved funding?
    This includes spend in previous years. How much is the programme/project expected to spend to completion? Is the project on track to live within the approved funding limit? Sponsors have a responsibility to monitor and control costs over the whole lifetime of the programme/project, not just those in the current financial year. If the Investment Board or Steering Group finds that a project is exceeding its ‘approvals’ envelope’, it could require the project to make changes to the scope in order to make savings.
  9. Does year to date spend include accrued expenditure? Have accruals been posted? if not, why not?
    The costs associated with the consumption of a good/service should be accounted for in the same accounting period as the consumption took place. Failure to post monthly accruals to the finance system renders monthly finance data unreliable and jeopardises the delivery of unqualifies accounts.
  10. Have non-cash costs (depreciation, cost of capital and increases in provisions) been included in the calculation of year to date and forecast spend? if not, why is this?
    In order to report whole project costs, non-cash elements of spend should be included in the reported figures
67
Q

wHAT ARWhat are the benefits of budgeting and cost control?

A

Better visibility of project cash-flow
- Understanding when payments are due to be made and assessing the available funding is essential in projects. Funding may be reliant on income generating activities. Effective cash-flow management is especially important for smaller contractors and also for larger organisations who may be engaged in major projects.

Improved financial planning
- Organisations need an accurate understanding of project costs if they are to make informed decisions regarding their financial commitments. This will have a large impact on the organisation’s borrowing and procurement commitments and may also be heavily influenced by its financial year planning.

Understanding impact on profit and loss
- Project cost commitments will have a major impact on the organisation’s ‘profit-and-loss’ statement. The cumulative cash-flow figures will be reflected in this statement and therefore an accurate depiction of accruals, commitments and forecasts is necessary.

Establishing appropriate payment terms (customer/supplier)
- It is in the project manager’s interest to try and ensure that customers pay as early as possible with the reverse being true when dealing with suppliers (whilst still maintaining an ethical procurement approach). Payment terms will have a major impact on cash-flow with negative cash-flow periods being of specific concern.

Analysing the impact of budgetary change (or contract termination)
- Early analysis of proposed changes that will have an impact on the project budget is important if costs are to be managed appropriately. Budgetary increases may render the project commercially unviable. The project manager must understand any contractual implications if agreements with supplier and/or customers are to be prematurely terminated.

Informed decision-making
- The project management team are much better places to make decisions concerning the project finances if they have accurate and timely data available to them. This may involve the approval of corrective action and may also help prevent further funds being expended on a project that is no longer able to satisfy its success criteria and/or deliver the expected benefits.

68
Q

Define earned value management

A

A project control process, based on a structured approach to planning, cost collection and performance measurement.

69
Q

Define actual progress

A

A measure of the work that has been completed for comparison with the baseline.

70
Q

What is the fundamental principle behind earned value management

A

It integrates scope, schedule and cost management information in order to assess current progress and forecast future performance, based on the trend represented by the current progress.

71
Q

Define Earned value

A

The value of completed work expressed in terms of the budget assigned to that work.
A measure of progress which may be expressed in cost or labour hours.

72
Q

What will EVM tell you

A
  • How is the project progressing? Schedule
  • What has been achieved for the budget spent? Spend
  • When is the project going to finish? Time to completion
  • What will the cost be at completion? Cost to completion
  • How efficiently are the resources being used? Efficiency
  • What areas of the project are ahead/behind or over -/ under-spent
73
Q

What does Earned value provide?

A

An early warning system allowing action to be taken to take early corrective measures to alter a forecast unfavourable outcome. If the application of EVM to a project reveals that it is behind schedule or over budget, the PM can use it to help identify:

  • Where the problems are occurring
  • Whether the problems are significant or not
  • What it will take to get the project back on track
74
Q

Outline the Work Breakdown structure/Organisation Breakdown Structure

A

The WBS and OBS define the scope of work to be done on the project and the workforce who will do it. These are derived as set out below.
- Define the scope: Project Scope Statement
The preparation of the detailed project scope
statement builds on the major deliverables,
assumptions and constraints documented during
project initiation. During planning, the scope is defined
and described more specifically as there is a greater
understanding of the project requirements.
The project scope statement requires a solid understanding of the following project elements:
- Project objectives
- Product scope description
- Product acceptance criteria
- Project deliverables
- Project exclusions
- Project constraints
- Project assumptions

  • Create the WBS
    The WBS is a hierarchical decomposition of the complete scope of work to be executed by the project team to accomplish the project objectives and create the required deliverables.
    The WBS organises and defines the scope of the project through dividing and sub-dividing the project into successively lower levels of detail with each lower level representing an increasingly more detailed definition of the work required to be completed.
  • Create the OBS: identify who will do what on the project.
    Baseline Plan/Budget: The time-phased budget for the project will provide the primary baseline against which progress and expenditure will be measured (this is often known as the PMB - Performance Measurement Baseline).
    Status Updates: Measure progress; performance data relating to project costs and schedule progress must be accurate and provided in a timely fashion.
    Forecasts: Estimates of the remaining work and expenditure also need to be provided.
    Change Control Process: A well-defined baseline will provide a firm basis for assessing the impact of changes to the agreed scope, time and cost baselines and whether any change will result in updates to the baseline.
75
Q

What are the Earned Value formulas

A

Budget at completion
BAC
The sum total of the time-phased budgets for the project

Planned Duration
PD
Estimated final duration of the project

Planned cost
PC
Planned cost of work that should have been achieved at a specific point in time. Also known as: PV - Planned Value, BCWS - Budget Cost of Work Scheduled

Actual Cost
AC
Cumulative cost of work accrued on the project so far. Also known as: ACWP - Actual Cost of Work Performed

Earned Value
EV
EV = % Complete x Budget at Completion
Value of work performed expressed in terms of budget assigned to the work. Also known as: BCWP - Budgeted Cost of Work Performed.

Cost Variance
CV
CV = EV-AC
Difference between the value of the work performed and the actual costs incurred. A negative number indicates performance behind plan whereas a positive number indicates performance ahead of plan.

Schedule Variance
SV
SV = EV-PC
Difference between the value of the work performed and the planned cost of the work that should have been performed at this point in time. A negative number indicates performance behind plan whereas a possible number indicates performance ahead of plan.

Cost Performance Index
CPI
CPI = EV/AC
Cost efficiency ration that measures work accomplished against costs incurred at a specific point in time. Number above 1 indicates performance ahead of plan; below 1 indicates performance behind plan.

Schedule Performance Index
SPI
SPI = EV/PC
Schedule efficiency ration that measures work accomplished against work planned at a specific point in time. Number above 1 indicates performance ahead of plan; below indicates performance behind plan.

Estimate at Completion (cost)
EACc
EACc = BAC/CPI
Projected final cost for the project (also known as the projected outturn cost)

Estimate at Completion (time)
EACt
EACt = PD/SPI
Projected final duration for the project

EV/BAC
Calculated at project level for top-level view of overall progress.

76
Q

Define Forecast expenditure

A

The estimated and predicted use of money.

77
Q

What are the Earned Value Management pros and cons

A
  • EVM does not take account of the critical path for the project timeline
  • Too much emphasis on cast and schedule can lead to a lack of focus on quality
  • The need for a well-defined initial baseline does not lend itself to project methods such as ‘Agile’
  • It is overly simplistic and can lead to ill-informed decisions
  • As Earned Value is typically based on project percentage-complete, all resultant projections are likely to be based on highly subjective assumptions
  • EVM requires a major effort to capture consistent performance management data and keep it up to date
78
Q

What are the benefits of ECM

A

Project Reporting
- CPI and CPI are two of the most commonly used key performance indicators in project management. They provide a quick and easy to understand indicator of project health. Graphical reporting formats are also easy to create and understand.

Highlights estimating error
- EVM measures can be a very useful indicator of poor estimating (either over-optimism or pessimism). This can lead to the identification of key lessons for the organisation’s estimating and/or business development processes.

Facilitates forecasting of outturn cost and time
- CPI and SPI can be used to project the final cost and duration of the project. Although these projections are built on the assumption that future performance will continue as per past performance, they can be used to validate any competing assumptions and/or assertions

Helps justify corrective action
- EVM projections can act as a useful catalyst for the identification and approval of corrective action. EVM information may be used to justify a wealth of actions such as adding resources to the project. changing the team, revising the project scope etc.

May indicate early termination of project is required
- When EVM projects that the outturn cost and time for the project render the Business Case to be no longer viable, this can lead senior management to prematurely close the project. Resources and funding can then be diverted to a more productive proposal.

79
Q

Define Change Control

A

The process through which all requests to change the baseline scope of a project, programme or portfolio are captured, evaluated and then approved, rejected or deferred.

80
Q

What are internal changes to scope?

A

Technical error:
Errors may result in rework or waste costs that will need to be funded from the project’s baseline budget

Incorrect estimate:
Estimating problems may arise from not fully understanding the project scope or possibly from inexperience in the estimating process.

Resourcing issues:
Committed resources may be subject to re-prioritisation due to issues in other projects and/or business-as-usual activity. Externally sourced resources may also be subject to changes which might be largely outside the project managers control.

81
Q

What are external changes to scope?

A

Business justification:
Changes in a potential market may have a major impact on the business case for the project. Major changes tot he project scope may be required to ensure that the business case remains viable.

Requirements change:
Closely linked to threats tot he project’s business case, requirements may be subject to alteration if there is a change in a potential market and/or if competitor activity is likely to affect the business justification

Technology/market shift
The introduction of new business processes and/or new technology may be an opportunity that can be exploited by the project

82
Q

The Change Control process is likely to include what activities?

A

Submit change request: Identify, define and record the proposed change
- The person or body requesting the change provide the necessary information for the change to be entered into the Change Register. This may take the form of the submission of a formal Change Request form.

Review the viability of taking the proposed request further
- A limited evaluation of the request will determine whether a full evaluation is required or desired; an early rejection of the change is possible at this stage to prevent significant effort being consumed in the evaluation

Assessment of the feasibility and full evaluation of the impact of the proposed change
- Assuming the change Is deemed necessary, a detailed evaluation of the change is undertaken to fully determine its feasibility and analyse the impact of the change on the project’s objectives and defined benefits.

Decision: authorise, defer or reject the proposed change
- In order to allow the Sponsor to make an informed decision, it is common for the project manager to recommend the acceptance, deferral or rejection of the request. Communication of the change is made to the relevant bodies and any relevant configuration management procedures complied with.

Update records and plans and implement authorised changes
- The project records should be updated to reflect the outcome of the change request. If the change is authorised, all relevant plans should be updated to include the new agreed activities. Where the change is funded by the customer, it is typical for the agreed objectives (time, cost, quality) to be re-baselines at this point. The new plan is implemented and careful analysis of the effectiveness of the change is undertaken.

83
Q

What does the change request form and the change log ensure?

A

Change request form ensures that stakeholders have an accurate understanding of the rationale behind the change and have an accurate understanding of the rationale behind the change and have full knowledge of its resultant impact.

Change Log (or Register) keeps a summary of all change requests and whether they were authorised or not. This is very useful record for audit purposes.

84
Q

What are the change control responsibilities for the Project Sponsor?

A
  • The sponsor has ultimate authority for approval, deferral or rejection of change requests.
  • The sponsor must also ensure that any approved changes do not threaten the on-going viability of the Business Case.
  • At their discretion, the sponsor may allow (delegate) the project manager to approve changes within certain agreed thresholds.
85
Q

What are the change control responsibilities for the Change Control Board?

A
  • A change control board may be created that has delegated responsibility for the authorisation of changes
  • The change control board should contain representation from all relevant parties
  • This board may also be known by other names, e.g. change authority
86
Q

What are the change control responsibilities for the Project Manager

A
  • The project manager must ensure that a formal change process is in place and is strictly followed so that the integrity of the project baseline and its assets are protected
  • The project manager will work with the team to ensure that the impact of changes is thoroughly evaluated and appropriate recommendations are made to the sponsor/change authority.
87
Q

Define Configuration management

A

Encompasses the administrative activities concerned with the creation, maintenance, controlled change and quality control of the scope of work.

88
Q

Define Configuration

A

Functional and physical characteristics of a product as defined in its specification

89
Q

What is the Configuration Management process

A

Planning
- The configuration management plan should provide guidelines for the level of configuration management required by the project. The plan will document how we will protect the project’s assets including any specialist tools to be used along with the associated roles and responsibilities.

Identification
- Each configuration item will require some form of unique identification as well as the documenting of any related attributes

Control
- The configuration baseline should be protected throughout the project. Any changes must only be implemented and approved by authorised parties. Storage of configuration items must also be controlled and access restricted where appropriate to do so (including archived items).

Status accounting
- The current status and version of each item must be recorded and monitored. Any changes must be documented to enable tracking of an item’s status during its development. It is typical for project managers to use a register of assets to ensure that their present status is clearly visible (this register is sometimes known as a product status account).

Audit
- At a minimum, the project’s assets should be reviewed at each stage gate to ensure that their actual status aligns with the presently authorised version. This is particularly important at project handover to ensure that the latest version of each project asset is delivered

90
Q

What are the typical roles of Configuration management

A

Information officer/configuration librarian:
- Ensures that any asset entered into the ‘library’ conforms to the agreed guidelines. The librarian will also control access to the master copiers of any live and/or archived configuration items. This role could operate as part of the host organisation infrastructure, within a Project Office

Configuration administrator:
- Supports the process through the administration of formal change requests and the updating of configuration item records and/or the product status account. This role could also be in a Project Office

Configuration item owner:
- Has primary responsibility for any single configuration item and may be responsible, as a designated change authority, for the approval and implementation of any approved changes

Project manager:
- Ensures that a process is in place and is ultimately held accountable for the product deliverables confirming to the latest specification

Project team members:
- Must ensure they understand and follow the appropriate processes and procedures

Quality Assurance
- QA may support the entire process and management database. Another key role of QA could be the auditing of selected projects to ensure that the correct versions of the project assets are being used.

91
Q

Define Handover

A

The point in the life cycle where deliverables are handed over to the sponsor and users

92
Q

What are the specific activities undertaken during handover may also include:

A
  • Handover chain (for example suppliers to the project manager, project manager to the customers etc.)
  • Documentation acceptance (including user-instructions, warranties etc.)
  • Deliverable acceptance sign-off by the users
  • Conditional acceptance (this may include the creation of a deficiency report so that corrective actions can be agreed and assigned)
  • Transfer of responsibility of deliverables to the users (this may involve some form of support and/or training prior to final acceptance)
93
Q

Define Closure

A

The formal end point of a project or programme, either because it has been completed or because it has been terminated early.

94
Q

What is closure mainly concerned with?

A

The internal and administrative closure of the project and also the effective disbanding of the project team.

95
Q

What activities are undertaken during project closure

A
  • Ensuring that any remaining project assets are correctly stored and/or disposed of
  • Completion of all contractor activities including the creation of final invoices
  • Closure of all internal project accounting mechanisms (this may include financial reporting systems, charge-codes etc)
  • Completion and archiving of project documentation to comply with the organisation’s information management systems
  • Undertaking of the post-project review (or lessons learned meeting) and the consequent communication of improvement opportunities and the consequent communication of improvement opportunities
  • Appraisal of individual and team performance in accordance with the organisation’s internal development processes.