C

Exam - 240304

Project Budgeting, Progress Monitoring, and Benefits Realization (LO5)

Crashing a Project

  • Identify the critical path.
  • Shorten activities on the critical path with the lowest crashing cost, one day at a time, as long as they haven't reached their shortest possible duration.
  • If two activities have the same crashing costs, crash the earlier one.
  • Cross-check that the critical path has not changed and identify new ones if they have.
  • Stop when the desired reduction in project duration is achieved.

Crashing Diagram

  • Depicts the accumulated costs of incremental project schedule reductions.
  • X-axis: Project duration in days.
  • Y-axis: Total project costs.
  • Managers can use it to discuss the optimal degree of crashing, balancing duration reduction with cost. Pay attention to the knee points of the curve.

Earned Value Analysis (EVA)

  • Schedule Variance (SV): SV = EV - PV
  • Cost Variance (CV): CV = EV - AC
  • Schedule Performance Indicator (SPI): SPI = \frac{EV}{PV}
  • Cost Performance Indicator (CPI): CPI = \frac{EV}{AC}
  • Estimated Final Budget: AC + \frac{(Original\ Budget - EV)}{CPI}

Payback Method

  • Payback Period: \frac{Total\ Investment}{Annual\ Net\ Cash\ Flow}
  • Prioritize projects with shorter payback periods.

Contribution Costing Method

  • A non-complete cost allocation method where only specific revenues are allocated to the cost units.
  • The contribution margin covers the company’s common costs (not directly attributable to the project).

Project Manager Tasks and Responsibilities (LO8)

Communication Plan

  • Important for project management.
  • Identify target groups (internal and external stakeholders), communication purpose, content, timing, method, and responsibility.

Hersey's Leadership Styles

  • Telling: Provide clear instructions and direction.
  • Selling: Explain decisions, clarify, and convince team members.
  • Participating: Involve team members in decision-making.
  • Delegating: Give responsibility to competent team members.

Conflict Types

  • Functional Conflict: Concerns solutions and goals; can lead to better performance.
  • Dysfunctional Conflict: Can be managed using strategies like monitoring, mediating, arbitrating, controlling, accepting, or eliminating.

Conflict Resolution Strategies

  • Monitoring: Ensure parties resolve the conflict themselves.
  • Mediating: Find common ground and suggest alternatives.
  • Arbitrating: Make an authoritarian decision.
  • Controlling: Rearrange the team or adjourn the interaction.
  • Accepting: Accept the conflict.
  • Eliminating: Remove individuals causing the conflict.

Group Development Models

  • Tuckman's Model: Forming, Storming, Norming, Performing, Adjourning.
  • Wheelan's Model: Affiliation & Security, Opposition & Conflict, Trust & Structure, Work & Productivity.

Project Manager Skills

  • Systems thinker
  • Personal integrity
  • Proactive
  • High emotional intelligence (EQ)
  • General business perspective
  • Effective time management
  • Skilful politician
  • Optimist