project management exam

Project

Has a beginning and an end; produces a unique product

Project management

A discipline (set of methods, theories and techniques) that is both an art and a science

Operations

Have no defined end; produce similar, often identical, products

Project vs. operation example: Accounting

Project = implementing an accounting information system; Operation = daily entering sales receipts into the ledger

Project vs. operation example: Supply chain

Project = developing a supply-chain information system; Operation = responding to a supply-chain request using the SCM system

Project vs. operation example: iPhone

Project = designing a new version of the iPhone; Operation = routine manufacture of the iPhone

Project vs. operation example: Walmart RFID

Project = Walmart's RFID tag project; Operation = attaching tags to manufactured products

Who selects projects?

Executives

Role of functional managers in projects

Sponsor, lead or oversee projects within their departments

Part-time project leaders

Senior staff and functional managers tasked with leading smaller or part-time projects

Demand for project-oriented jobs

Rising (PMI 2025 Global Project Management Talent Gap)

Why learn PM as a student?

Organizations use PM to stay competitive; individuals need PM skills to be good team members/PMs; PM tools help accomplish personal objectives

Project success (iron triangle / triple constraint)

On time, on budget, on scope

Three project management functions

Project definition, project planning, project control

Project definition

Lays out the foundation for a project

Project planning

Puts together the details of how to meet the project's goals, given the constraints

Project control

Keeps the project moving toward the goal

Three skill sets for project managers

Project management, business management, technical skills

Project management skill set

The PM discipline (e.g. PMP certification); theory and techniques that apply to projects in any industry

Business management skill set

Soft skills such as leadership, communication and teamwork

Technical skill set

Field-specific competence: academic degrees, industry experience, software skills (e.g. MS Office, QuickBooks)

"PM is industry-independent; project managers are not"

PM techniques apply in any industry, but project managers must have good technical skills in their field

PMBOK

Project Management Body of Knowledge

Product life cycle

Industry specific; describes the work required to create the product

Project life cycle

Industry independent; focuses on managing the work

Product vs. project life cycle relationship

A product development life cycle can contain many projects

Three organization structures

Function-driven, project-oriented, matrix

Areas where organization structure impacts projects

Authority, communication, priority, focus, chain of command

Stakeholder

Anyone who contributes to the project or who is impacted by its result

Typical stakeholders

Project manager, project team, management, project sponsor, resource manager, the customer

Customer (stakeholder)

Establishes requirements and provides funding

Other potential stakeholders

Managers with decision authority, representatives of external constraints, advocates and opponents

Stakeholder role

A person's involvement and influence in the project

Stakeholder position

A person's formal job or title within the organization

Stakeholder register columns

Name, position, internal or external, stakeholder role, contact information

Leading the stakeholders

Control who becomes a stakeholder; manage upward

Managing upward

Managing someone who has more formal authority than you

Project success factors (Ch7)

Agreement on the goals, controlled scope, management support, a plan, good communication

Two key project definition documents

Project charter and responsibility matrix

Project charter

Lists the goals, constraints and success criteria for the project; announces that a new project has begun

Purpose of the project charter

Formally authorize the new project and the PM; demonstrate management support for the project and PM

How the charter gives the PM authority

Establishes legitimate authority by referencing the legitimate authority of the sponsor

Legitimate authority

Authority conferred by the organization

Expert authority

Authority that stems from performance on the job

Updating the charter

It's a tool for managing expectations and changes; update it to reflect project changes, and all stakeholders must agree

Charter minimum content

Purpose statement, scope descriptions, deliverables, cost and schedule estimates, measures of success, stakeholders, chain of command

Purpose statement

Describes what we will do on the project and why; must be clear enough to guide decision making; can include a measurable goal

Where project justification belongs

In a proposal, business case or cost-benefit analysis, not the purpose statement

Scope description

Describes major activities so it's clear if extra work is added later; can place the project in a larger scenario; states what's beyond scope

Deliverables

What the project is supposed to produce; can be intermediate, end or PM-related

Intermediate deliverable examples

Requirement documents, a description of a target market, a study of a new ER admission policy

End deliverable examples

A new piece of software, an advertising campaign, a new ER admissions process

PM-related deliverables

Charter, WBS, schedule, cost baseline, status reports, change logs

Measures of success

Specific, measurable goals (e.g. "no measurable oil spills"); can include exit criteria like customer acceptance criteria

Responsibility matrix

Describes the level of participation and authority of project stakeholders on major project activities

Responsibility matrix content

Major project activities, key stakeholder groups, codes for responsibilities

R (responsibility matrix)

Responsible for execution

A (responsibility matrix)

Approval authority

C (responsibility matrix)

Must be consulted

I (responsibility matrix)

Must be informed

Project risk

An uncertainty that can have a negative or positive effect on achieving project objectives

Known risks (known unknowns)

Future situations that can be partially planned for (e.g. 20% turnover rate for IT personnel)

Unknown risks (unknown unknowns)

Future situations that are unpredictable (e.g. an important supplier goes out of business)

Business risk

Selecting the right project; not the project manager's job

Project risk (vs. business risk)

Managing uncertainty to meet the stakeholders' objectives

Risk management

The means by which uncertainty is systematically managed to increase the likelihood of meeting project objectives

Risk management framework (5 steps)

1) Identify risks 2) Analyze and prioritize risks 3) Develop response plans 4) Establish contingency and reserve 5) Continuous risk management

Step 1: Identify the risks

Get information from stakeholders, use a risk profile, use historical records, and estimate schedules and budgets

Risk profile

A list of questions that address traditional areas of uncertainty on projects; creating one is an ongoing process

Condition (defining a risk)

A brief statement describing the situation causing concern or uncertainty

Consequence (defining a risk)

A brief statement describing the possible negative outcomes the condition may cause

Expected value of a risk

Probability × Impact

Expected value: Project A (0.4 × $2M + 0.6 × $500K)

$1,100,000

Expected value: Project B (0.3 × $3M + 0.7 × $200K)

$1,040,000

Five risk response strategies

Accept, avoid, contingency plans, transfer, mitigate

Accept the risk

Doing nothing

Avoid the risk

Avoid doing that part of the project, or choose an alternative way to do it

Contingency plan

Monitor the risk and have an alternative course of action ready

Detectability

The ability to detect the risk in time to respond

Trigger event

The line crossed between monitoring the risk and implementing the contingency plan

Transfer the risk

Shift consequences or responsibility to another party (e.g. buy insurance, hire an expert, use a fixed-price contract)

Mitigate the risk

Work hard to reduce the risk (e.g. competent personnel, analysis and validation techniques)

Expected value of contingency

Probability of risk event × cost of contingency

Contingency reserves

Account for identified risks (known unknowns)

Management reserves

Account for unknown risks (unknown unknowns)

Step 5: Continuous risk management

Monitor known risks with a risk log, check for new risks, repeat identification at milestones, prepare responses for new risks, retire risks that didn't materialize

Risk log

Records risk management strategies and is used to monitor known risks

Broad categories of IT project risk

Market, financial, technology, people, structure/process

Preplanning activities

Create the project definition (Ch6-7); develop a risk management strategy (Ch8)

Planning steps (in order)

Build WBS → identify task relationships → estimate work packages → calculate initial schedule → assign and level resources → develop budget

Does a WBS describe sequence?

Not entirely; a WBS is not used to describe sequence constraints

Sequence constraints

Certain tasks must be performed before others; governed by task relationships (task dependencies)

Task dependency

The logical relationship between activities that explains why one affects another (e.g. build the frame after pouring the foundation)

Finish-to-start (FS)

Task A must finish before Task B can start; most common (e.g. install software → train users)

Start-to-start (SS)

Task A must start before Task B can start (e.g. receive survey responses → tabulate responses)

Finish-to-finish (FF)

Task A must finish before Task B can finish (e.g. conduct production → conduct quality inspection)

Start-to-finish (SF)

Task A must start before Task B can finish; very rare (e.g. night shift → day shift)

Predecessor

The task that controls the relationship between two tasks; not necessarily the one that comes first

Successor

The task that follows a predecessor task, as determined by their logical relationship

Concurrent tasks

Tasks that can be performed at the same time