ISMN 5370 Exam 2

Work Breakdown Structure (WBS)

Decomposition of a project's scope into smaller, more manageable components. Defines what must be delivered.

Work Package

Lowest level of WBS. A deliverable oriented grouping. Describes *what* is being delivered. Example: User Authentication Model

Activities

Tasks required to complete the work package. Decomposed WBS that describes how work gets done. Activities should be between 8-80 hours. Each activity has an ID, a verb-noun description, predecessors/successors, resources, and assumptions/constraints. Example: Design authentication flow, develop login API endpoint, write unit tests, conduct security review.

Activity List

A foundational schedule planning document. Once activities are identified, each is documented with enough detail for scheduling and assignment.

Precedence Diagramming Model (PDM)

Four types of logical relationships between activities. Finish-to-Start (FS), Finish-to-Finish (FF), Start-to-Start (SS), Start-to-Finish (SF)

Finish-to-Start Relationship

Activity B cannot begin until Activity A finishes. Most common relationship. Example: testing cannot start until coding finishes.

Start-to-Start

Activity B cannot start until Activity A starts. Used when tasks can overlap. Example: writing documentation can start once drafting begin

Finish-to-Finish (FF)

Activity B cannot finish until Activity A finishes. Example: quality review cannot close until all inspections are complete

Start-to-Finish (SF)

Activity B cannot finish until Activity A starts. Rare in practice.

Example: a night shift cannot end until the day shift begins.

Dependency Categories

Mandatory (hard logic, can't change), discretionary (soft logic, based on best practice; can be changed when you fast-track), external (outside the team's control, such as permits; carry risk).

Network Diagram

PDM represents activities as nods and descrepencies as arrows connecting them. This is activity-on-node (AON). Each node holds activitiy name, duration, early start, early finish, late start, and float— all calculated during the forward backward pass.

Duration Estimating Techniques

Analogous, Parametric, Three point (PERT), Expert Judgement.

Analogous Estimating

Uses actual durations from similar past projects as the basis for the current estimate. Fast and cheap, but less accurate. Best used early when detail is limited.

Parametric Estimating

Applies to a statistical relationship between two variables. Ex: 10 m cable takes 2 days, so 50 m takes 10 days. Accuracy improves when underlying data is reliable and the relationship is well established.

Three Point Estimating (PERT)

Accounts for uncertainty for defining optimistic (O), most likely (M), and pessimistic (P) durations. The PERT formula weighs the most likely scenario: (O + 4M + P) / 6. Produces a more statistically grounded estimate than a single point figure.

Expert Judgement

Leverages the knowledge of experienced team members, subject matter, or consultants. Often used to validate estimates produced by other methods. Essential when historical data is sparse or the work is novel.

PERT

expected time = (O + 4M + P) ÷ 6, standard deviation = (P − O) ÷ 6.

Critical Path***

The most widely used technique for analyzing project schedules. It identifies the longest path through the network — the sequence of activities that determines the minimum project duration.

Forward Pass

Calculates Early Start (ES) and Early Finish (EF) for each activity, moving left to right through the network. Begins at the project start date. EF = ES + Duration. Result: the earliest possible completion date for the project.

Backward Pass

Calculates Late Start (LS) and Late Finish (LF) for each activity, moving right to left. Begins at the project end date. LS = LF − Duration. Result: the latest allowable dates without delaying project completion.

Critical Path

The longest path through the network, where total float = 0. A delay on it delays the project.

Schedule Compression choices

Crashing or Fast Tracking

Crashing

Adding resources (people, equipment, or overtime) to shorten activity durations. Always increases cost. Best applied to critical path activities where cost-per-day-saved is lowest. Evaluate the cost-time tradeoff for each candidate activity and crash the cheapest option first.

Fast Tracking

Performing activities in parallel that were originally planned in sequence. Does not add cost directly but introduces rework risk if earlier work changes. Only feasible where discretionary dependencies exist. Requires close coordination between teams. No direct cost increase.

Milestones

Significant events or decision points in the project— activities with zero duration. They mark the completion of a major deliverable, a phase gate, or an external commitment. Milestones are visible to all stakeholders and serve as progress anchors. Examples: "Requirements Approved," "System Go-Live," "Final Acceptance.

Gantt Charts

A bar chart format showing activities as horizontal bars plotted against a calendar timeline. Gantt charts display start and finish dates, dependencies, milestones, and resource assignments in a single view. They are the most widely used format for communicating project schedules to diverse audiences.

Schedule Baseline

The approved version of the schedule that can only be changed through formal change control. It captures the original plan against which actual performance is measured. Deviations from the baseline trigger variance analysis and corrective action. Protecting the baseline preserves the integrity of schedule performance metrics like Schedule Variance (SV) and Schedule Performance Index (SPI).

Bottom-Up Estimating

Estimates each individual work package, then aggregates them up to the total project cost. Most time-consuming, but delivers the highest degree of accuracy

Choosing the Right Cost Estimating Technique

Two Types of Budget Reserves

Contingency and Management

Contigency Reserve

Who controls it: The project manager.

What it covers: Known unknowns — identified risks that may or may not occur. It is included in the cost baseline and the project budget. Typically calculated from a quantitative risk analysis or a percentage of the estimate.

Management Reserve

Who controls it: Senior management or the sponsor.

What it covers: Unknown unknowns — unforeseen events outside the project scope of risk planning. It is excluded from the cost baseline but included in the overall project budget. Requires formal authorization to access.

Cost Aggregation

Work package estimates → control accounts → project estimate → + contingency = cost baseline → + management reserve = total project budget.

Funding-limit reconciliation

Funds are released in tranches. If planned spending exceeds a funding limit, reschedule work so the baseline fits the funding profile.

Three Core Earned Value Management (EVM) Values

PV (Planned Value): The authorized budget assigned to scheduled work.

EV (Earned Value): The authorized budget for the work actually completed.

AC (Actual Cost): The real cost incurred for the work performed.

Variances (Cost Variance, Schedule Variance)

Negative = bad. Schedule Variance is in dollars, not days.

Indices (Cost Performance Index, Schedule Performance Index)

Less than 1.0 = bad. measure efficiency — how much value you are getting for every dollar spent or every unit of time elapsed. Unlike variances, indices allow meaningful comparison across projects of different sizes.

Quality v. Grade***

Quality = meeting requirements (low quality is always a problem).

Grade = a category of features (low grade can be fine). A budget hotel can be high quality.

Cost of Quality

Prevention Costs: Made to avoid defects from occurring in the first place.

Appraisal Costs: INcurred to measure, evaluate, and audit to ensure conformance.

Failure Costs: Internal Failure: defects caught before dellivery - External Failure: defects discovered by customer. Ex are significantly more expensive.

Three Quality Processes

Plan Quality: set standards and metrics. Outputs: quality management plan, quality metrics.

Manage Quality (assurance): process-focused. Audits how work is done. Proactive.

Control Quality: product-focused. Inspects deliverables. Reactive. Output: verified deliverables→ feed Validate Scope.

Quality Tools***

Cause and Effect (fishbone/Ishikawa): inds root causes using the 6 Ms (Man, Machine, Method, Material, Measurement, Mother Nature).

Checklists: standardize required steps, based on lessons learned.

Control Charts**: UCL/LCL at ±3σ from the mean. Rule of seven: 7+ points in a row on one side of the mean = an assignable cause. Control limits are not specification limits. High limit or low limit.

Pareto Analysis: bars in descending order + a cumulative % line. The 80/20 rule: focus on the vital few.

Continuous Improvement

PDCA (Plan-Do-Check-Act, W. Edwards Deming) is the method. Kaizen ("change for the better," small daily gains by everyone) is the mindset.

Verification v. Validation

Verification = "building the product right" (internal, against specs). Validation = "building the right product" (with the customer, such as UAT). Order: Control Quality (verify) → present deliverables → customer review → accept or change. Acceptance criteria are set during planning and must be measurable and agreed on before work begins.

Risk v Uncertainty

A risk is a specific, uncertain event with an estimable probability and impact (a known unknown), so you can plan for it. Uncertainty is a vague lack of knowledge that can't be given a probability (an unknown unknown); handle it with buffers and adaptability. Risks can be threats (negative) or opportunities (positive). Both go in the risk register.

Risk Management Process (a continuous loop)

Identify → Analyze → Plan Responses → Monitor → back to Identify. Revisit it at every milestone.

Identification Techniques

Brainstorming: most common. Quantity first, judge later. Use a facilitator.

• Checklists: built from past projects. Fast, but they miss new risks. A starting point, not the finish line.

• Assumptions analysis: "What if this assumption is wrong?" Unstable assumptions become risks.

• Best practice: start with checklists, expand with brainstorming, pressure test with assumptions.

Qualitative analysis

The probability-impact matrix scores each risk on likelihood and severity. Define scales up front (for example, probability low < 20%, medium 20–60%, high > 60%). High-high risks need responses now; low-low can be accepted and monitored.

Risk Register

A living log of each risk’s description, probability, impact, response, one name owner, and status.

One Name Owner***

Every risk has a single name owner to ensure accountability. There is NO shared ownership.

Responding to Threats**

Avoid: Change the plan so the risk can’t occur

Transfer: Shift impact to a third party (insurance, contracts)

Mitigate: Reduce probability and/or impact (most common)

Accept: Do nothing proactive; document and monitor

Responding to Opportunities**

Exploit: Make sure the opportunity happens

Share: Partner with a third party better able to capture it

Enhance: Increase probability and/or impact

Accept: Don’t pursue it; still document it

Choosing a response:

Compare the response's cost to the risk's expected loss. Consider the organization's risk appetite. Re-score the residual risk after the response.

Sizing Contingency:

EMV = probability × impact, summed across risks; or a percentage of budget (5–15%); or expert judgment + historical data.

RAID Log:

Risks (future, uncertain), Assumptions (treated as true, must be validated), Issues (happening now, need resolution), Dependencies (one thing must happen before another).

Every entry needs an owner, due date, and status. Review it at kickoff, weekly, at milestones, and archive it at close.

Risk v Issue***

A risk is future and uncertain, so you plan for it. An issue is present and certain, so you resolve it. A risk that occurs with no plan becomes an issue.

Why communication matters:

Poor communication is the #1 cause of project failure, and PM spend up to 90% of their time communicating.

Communications Matrix

Answers who needs what information, when, in what format, from whom, and by which method.

Three Communication Methods

Interactive: two-way, real time (meetings, calls). Best for complex issues and decisions.

Push: sent to specific people (email, memos, reports). Best for status updates.

Pull: people get it when they need it (portals, wikis, shared drives). Best for large audiences

Communication Channels

n(n − 1) ÷ 2

n= the number of people on the project (stakeholders + team members). Each person adds n-1 new potential channels.

Report Types

Status (where we are now), progress (what was completed this period), forecast (where we're heading: EAC, ETC), variance (deviation from baseline + root cause). Dashboards show KPIs with red/yellow/green status. Information radiators are big visible displays (Kanban boards, burndown charts) common in Agile

Information Radiators**

Highly visible display posted in a shared workspace so that anyone can see the current state of the project — without attending a meeting or opening a report. Ex: Kanban boards, sprint burndown charts physical task booards, large screen dashboards in team areas. They work to make the status ambient and creates transparency, speed, accountability, and simplicity.

Expectation Management

Set expectations early, communicate proactively, tailor to the audience, and document significant communications. Sending a message is not the same as communicating it

Make-or-Buy***

Make when the work is core, sensitive or proprietary, or you have idle capacity.

Buy when you need special expertise, lack capacity, need speed, or the work is one time.

Hybrids are common.

Procurement Process

Plan (needs, SOW, selection criteria) → Conduct (solicit, evaluate, award) →Control (manage performance, change orders, payments) → Close (formal acceptance, final payment, lessons learned).

Statement of Work (SOW)

Scope of work, location of work, period of performance, acceptance criteria. A vague SOW is the root cause of most disputes

Source Selection Criteria

(set before bidding): price, technical capability, past performance,

management approach.

Solicitation documents***

RFI: learn about the market. No commitment.

RFP: complex needs; asks for a technical and cost proposal.

RFQ: well-defined item; price is the main factor.

IFB: government sealed bidding; lowest responsive, responsible bidder wins.

Contract Types

Fixed Price, Cost-Reimbursable, and Time & Materials

Roles

The buyer defines the need, solicits and selects, monitors and controls, and closes and archives. The seller responds to the solicitation, executes the contract, reports, and supports closure. All changes go through formal change control. No verbal agreements.

solicitation documents (and why you would choose them), commonly confused: hard logic, contg reserves, qual meets requirements, difference between pdca and kaizen - push and pull,