Project Man Exam 2

Project Budget

A realistic estimate of the cost to complete the project work

Estimate too high; the project could be canceled

Estimate too low; the project will cost more and don't deliver

The Cost target you aim for as you manage a project

Labor Cost

What you paid people to work on the project

Vendors, Contractors, Employees

Burdened Cost

For employees

Salary, Benefits

May get the rates from accounting or HR department

Time-Based Resources Cost

Rental equipment

Office space

Material Cost

New server

Training guides

Documentation notebooks

Ancillary Cost

The cost that is not part of Labor, Time Based Resources, and Material cost

Travel, Training expenses, Fees

Cash Flow

Movement of the money you receive and the money you spend

What process do you estimate cost?

ITTO Process

Inputs

Tools & Techniques

Outputs

Inputs

-Cost management plan

-Quality management plan

-Scope baseline

-Project documents

-Enterprise environmental factors

-Organizational process assets

Cost Management Plan (Inputs)

Dictates how cost variances will be managed

Quality management plan (Inputs)

Details about the level of quality needed for the project

Scope baseline (Inputs)

Project scope statement

WBS

WBS dictionary

Project Scope Statement

Details about the level of quality needed for the project

Project documents (Inputs)

Project schedule

Lessons learned register

Resource requirements

Risk register

Project schedule

Main input because it lists the project activities and their associated resources along with how long you'll have the resources for those activities

Tools and Techniques

-Expert judgment

-Analogous estimating

-Parametric estimating

-Bottom-up estimating

-Three-point estimating

-Data Analysis

-Project management information system

-Decision making

Data Analysis

Reserve analysis- identify risk

Cost of quality (COQ)

Alternatives analysis

Outputs

Cost estimates

Basis of estimates

Project documents updates

Resources requirements

Resource breakdown structure

Basis of estimates

Documentation as supports the choices made for activity costs

Ex. Assumptions, constraints , level of detail, ranges, and confidence level

Cost Management Plan

This plan details how the project costs will be planned for, estimated, budgeted, and then monitored and controlled

Time-phased budget

Allows project managers to allocate costs for project activities over the anticipated timeline in which those expenditures are planned to take place

Resource Leveling

A technique in which start and finish dates are adjusted based on resource constraints

Helps balance project needs with resource supplies

Increases critical path length

Project Cost Management Tips

1) Must have the budget set up correctly at the start of the project

-good estimate

-identify risks

2) Monitor and mange it frequently

- Get the team engage on the budget, they have to invest it

- You get what you inspect

- Basics; status report, progress against task

- Getting fancy; earned value calculation,

Analogous Estimating

Estimating based on data from past, similar work activities

Parametric Estimating

Uses historical data and project scope to create a mathematical estimate for duration or cost

Ex. On a construction project that is 10,000 square feet, a parametric estimate would multiply the square footage by the given price per square foot to come up with a cost estimate

Bottom-Up Estimating

Identifying every element of cost (generally by using the WBS as a reference) and adding them up

Direct Costs

Charged on an item-by-item basis

Labour (people)

Consultant fees

Raw materials

Software licences

Travel

Indirect Costs

For items that benefit more than one project, and only a proportion of their total cost is charged to the project

Telephone charges

Office space (rent)

Office equipment

General administration

Company insurance

Expert Judgment

Subject matter experts (SMEs) to calculate the total cost of the project

Three-Point Estimating

This approach uses the weighted average of three estimates -- best-case, most likely case and worst case -- to gain a greater degree of control over how the value of a task or activity is calculated

Gathering Data

Track how things are going, what's been done, what's left todo, how long it took, and what it cost.

Track progress:

Task start date

Actual duration

Remaining duration

Other actual cost

Earned Value Analysis (EVA)

The financial value a project has earned based on work completed

Planned Value (PV)

The estimated cost complete work schedule through status date

Budgeted cost of work scheduled

Earned Value (EV)

The value earned by work completed

Budgeted cost of work performed

Actual Value (AV)

Actual cost for the completed work

Control Costs

Process of monitoring a project to update costs and manage cost baseline changes

Evaluating Progress

Problem Tasks

Cost to Budget

Cost to Budget

Over budget?

Scope creep?

Tasks taking longer?

Faster incurred cost?

Problem Tasks

Incomplete tasks running late

Should have started but haven't

Haven't completed as much work as planned

What conditions in which agile is more beneficial to organizations?

They can change frequently and deliver value sooner

Frequently delivering chunks of the products

More importance on people interaction

Goal to produce a product not documentation

Customer collaborates throughout the project

Changes are welcomed

Agile Project Management

Managing and implementing work in projects

Work is performed in iterations or sprints- each iteration deliver a complete and ready to use feature

Looks at time, cost & quality as fixed, then figure what feature you can produce

Can be add on in the future

Agile Life Cycle

1) Envision

2) Speculate

3) Explore

4) Adopt

5) Close

Envision Stage

Define:

Project goal

Objectives

Team

Guidelines

Speculate Stage

Planning in iteration:

Requirements

Features

Estimates

Risk

Explore Stage

Where team:

Build features

Peer reviews

Testing

PM's contribution

- Remove obstacles

-Track progress

-Resolve issues

-Keep stakeholder current

Step working when iterations schedule to end, unfinished features are put in the backlog

Adopt Stage

Act on feedback

Capture Lessons learned

Review the features

After this stage you repeat until you ready for close stage

Close Stage

Obtain acceptance in writing

Document lessons learned

Produce a closeout report

Close contracts

Archive project information

Transition team

Feature

Small function or deliverable that addresses a business need

Actions & Result

Ex.

First Iteration

Identify and estimate all project features

Each Iteration

Planning what will be done and reevaluate features

Moral Operating System

We must think, think how we make decisions where we were worry to do the right thing

Find somebody that think differently then us

Why is documenting lesson learned important?

You can repeat your successes and improve on your less than stellar performance.

Give your organization the opportunity to learn and grow with each new project

How:

Schedule time to discuss them in each meeting

Keep the sessions positive and productive

Foster openness and honesty

When does a project get done?

When you gain acceptance from the customer

Acceptance Test

To prove that the project is complete

Tests to demonstrate whether the deliverables do what they're supposed to.

Close out Report

Final status report for a project It sums up the project results. What it did and how it did it

Summary

Final schedule and cost

Share information

Effectiveness of the project

Summary (Close out Report)

Did it deliver what it was supposed to?

Was it on time?

Was it within budget?

Final Schedule and Cost (Close out Report)

Delivery date

If the project was significantly early or late, include the variances from the original dates and provide reasons.

The total cost

Cost for major sections

Cost variances
Other financial measures

Share information (Close out Report)

-Significant changes

-Significant risk that occurred

-Lessons learned

Close and transition projects

Close all the contacts

Hand off project as necessary

Help move team to next assignment

Archive project docs

Close accounts used to bill the project costs

If you are estimating cost based upon historical data from experience with a comparable project, you are using

Analogous estimating

The ___ in your budget is set aside for "unknown" risks

Management reserve

The __ helps cash flow planning and is the basis of controlling project costs & schedule once work commences

Time-phased budget

A rough top down estimate is likely during ____ and a detailed bottom-up estimate is likely during___

Initiating;planning

An agile approach would work best in all of the following situations except

Highly defined scope & requirements

Monitoring scrum project progress can be accomplished by using

Burndown charts

The __ in scrum is like a PM that supports the team by facilitating daily stand ups and removing impediments

Scrum master

Which of the following closing tasks occurs first?

Obtain customer acceptance

Ideally, lessons learned should be collected

Throughout the project

If EV > PV, this means your project is currently

Ahead of schedule

At the end of week 4 of our project, we have spend $4,000, this refers to our

Actual cost

EV= 8k

AC= 6k

PV= 7k

The project is

$2,000 under budget

A CPI of .90 means that your project is:

Over budget

Based on the PMI framework, which of the following is the process of identifying the resources needed for each activity?

Estimate activity resource

Which of the following is the process that involves collecting data about the projected cost of work packages?

Estimate costs

Product Backlog (Scrum)

Collections of User Story

Each story have the feature they want

Release Backlog (Scrum)

Specific user-stories used to put into a particular release of our product

Prioritized the user- stories and estimates the amount of work involve for each item

Product Owner (Scrum)

Represents the customer, writes stories, prioritizes them, and adds to the product backlog

Scrum Master (Scrum)

Sets up meetings

Monitors the work being done

Facilities release planning

Other team in Scrum

Developer

Tester

Customer

Executives

Sprint (Scrum)

Taken from the Release Backlog, and break it into iteration of work

Short-duration milestones that allow teams to tackle a manageable chunk of

the project

2-30days

Must be at ship-ready state; 100% complete

Burndown Chart

Monitor the progress of each sprint

early start

How soon can the activity start

early finish

How soon can the activity finish?

expected time

How soon can the project finish?