The main categories of acquired needs include achievement, affiliation, and power. 3. Functionality is the degree to which a system performs its intended function. Critical Path Method Many projects fail to meet schedule expectations. Your variable costs include the following: a. Metrics often include customer satisfaction, return on investment, and percentage of schedule buffer consumed. 2. In addition, the project manager must communicate significant changes to top management and key stakeholders. A mental revolution among the employees is required for the execution of TQM. There must also be a baseline to understand and analyze changes. Do you think it is worthwhile for most project managers to get certified? Create the same WBS from Exercise 3 using Microsoft Project or similar software and indenting categories appropriately. 5. It refers to complete commitment to quality in all spheres of the organization. 9. Review the Opening and Closing case about Tom Walters tablet project. Five basic response strategies for positive risks are risk exploitation, risk sharing, risk enhancement, risk acceptance, and risk elevation. An effective project manager is crucial to a projects success. Fiftynine percent of survey respondents said the financial crisis prompted them to scrutinize their risk management practices in greater detail, and many institutions are revisiting their risk management practices. The Program Evaluation and Review Technique (PERT) is a network analysis technique used to estimate project duration when there is a high degree of uncertainty about the individual activity duration estimates. When top managers tried to talk to Nick about these issues, he soon returned to discussing the technical details of the project. Focusing on Stakeholder Needs Recall from Chapter 1 that project stakeholders are the people involved in or affected by project activities. The managers and supervisors are responsible for actual execution and checking of TQM system. He told The Huffington Post that he wanted to lure the best and brightest workers away from Yahoo, HP, Oracle, and other companies cutting back on telecommuting. What Went Right? Use a 7 percent discount rate, and round the discount factors to two decimal places. The process groups are not mutually exclusive. These super tools appear in column 3 of Table 1-1. In general, leasing is often cheaper for meeting short-term needs, but more expensive for long-term needs. * Failing to follow good project management processes and use off-the-shelf software also results in scope problems. Our children understand the main reason I writeI have a passion for educating future leaders of the world, including them. 2. This is not something I would expect artificial intelligence to struggle with, said Jim McPherson, a California attorney and self-driving car consultant who has criticized the industry for moving too fast to put untested technology on public roads.* The contributions of quality experts, quality awards, and quality standards are important parts of project quality management. Contractors do not want to reach the PTA because it hurts them financially, so they have an incentive to prevent cost overruns. Project management jobs can be found in every country and every industry. He understood the value of doing detailed studies before making major expenditures on new projects, especially after learning about the high cost of correcting defects late in a project. To address social needs, some companies organize gatherings and social events for new workers. Project changes: I think we can stay on schedule, but it looks like well need about $10,000 more for outsourcing. The study also found that PMOs in high-performing organizations were twice as old, on average, as those in low performers (6 vs. 3 years old). The main outputs of this process are a schedule baseline, project schedule, schedule data, project calendars, change requests, project management plan updates, and project documents updates. Prepare a list of at least 10 tasks that would be done in editing the videos and enter them into your tool of choice. In fact, qualitys a team work of all employees. The project manager might also ask for a separate budget to pay for project-related trips, meetings, and training or to provide financial incentives to the people supporting the project. Another critical factor in change control is communication. Other aspects of critical path analysis may cause confusion. Agile methods like Scrum take a different approach to project schedule management by providing more flexibility. Develop a work breakdown structure for the project. Notice that several branches end with a project idea, such as Project proposal, Conference promotions, Accountant, Marketing plan, and Website. This type of organization evaluates decisions using a number of factorsrisk is just one of them. a. You can use run charts to perform trend analysis and forecast future outcomes based on historical results. Managers should give high achievers challenging projects with achievable goals. . Planning stakeholder engagement involves determining strategies to effectively engage stakeholders in project decisions and activities based on their needs, interests, and potential impact. Finally, resource leveling often improves morale. Developers update the status of tasks in the Not Started, In Progress, and Ready to Test sections. A cause-and-effect diagram b. You have budgeted $20,000 for outsourced hardware and software. Copyright and all rights reserved. Factors such as time, money, and unrealistic expectations, among many others, can sabotage a promising effort if it is not properly managed. PMI also refers to predictive life cycles as waterfall. The Project Management Process Groups Learning Objectives After reading this chapter, you will be able to: Describe the five project management process groups, the typical level of activity for each, and the interactions among them Relate the project management process groups to the project management knowledge areas Discuss how organizations develop information technology (IT) project management methodologies to meet their needs Review a case study of an organization applying the project management process groups to manage an IT project, describe outputs of each process group, and understand the contribution that effective initiating, planning, executing, monitoring and controlling, and closing make to project success Review a case study of the same project managed with an agile focus and compare the key differences between an agile approach and a predictive approach Describe several templates for creating documents for each process group Opening Case Erica Bell is in charge of the Project Management Office (PMO) for her consulting firm, JWD Consulting, which has grown to include more than 200 full-time consultants and even more part-time consultants. 6. The authors of the 2014 PMI in-depth report on requirements management state that For every dollar spent on projects and programs, 5.1 percent is wasted due to poor requirements management. Your company is planning to launch an important new project that starts on January 1 and lasts one year. feature. Agile is a methodology that describes how to manage projects. Together, you decide that you will need someone to take on the roles of script writers, script editors, animators, sound experts, content editors, and technical editors. Before deciding which sellers software to use, organizations use the Internet to find product information provided by various suppliers, prices, case studies, and current customers to assist in making procurement decisions. Let the project manager know well in advance if a team member has to miss a meeting or may have trouble meeting a deadline for a given task. Philip Crosby was born in 1926 and began his career as a reliability engineer. Quotes from employees often show why their companies made the lists: Working here can make you feel that youve made it into the technical equivalent of Major League Baseball or the NFLyoure at the top of your field. #1: Google Although people come from across the world, from different cultures, and from different life experiences, one employee says, everyone shares a passion for problem-solving and a positive attitude about teamwork. #2: Boston Consulting Group Our health insurance benefits are awesome, our schedules are flexible and we can keep our bodies healthy at our gym, says one team member. At the U.S. Federal Bureau of Investigation (FBI), poor time management was one of the reasons behind the failure of Trilogy, a disastrous, unbelievably expensive piece of vaporware, which was more than four years in the (un)making. Total Everyone associated with the company is involved in continuous improvement including customers and suppliers. Likewise, many top managers hold monthly or quarterly status review meetings in which program and project managers must report overall status information. Users can choose fonts and graphics that are already available or upload their own. Sample resource histogram Team Charters* Many companies believe in using team charters to help promote teamwork and clarify team communications. Several tools and techniques can help in contract administration, such as a formal contract change control system, buyer-conducted procurement performance reviews, inspections and audits, performance reporting, payment systems, claims administration, and records management systems. Because overall project completion time is not important. Be sure to put arrowheads on all arrows to signify the direction of the relationships. Controlling resources ensures that a projects physical resources are available as planned, monitoring the planned versus actual resource utilization, and taking corrective action when needed. The new intranet site will increase visibility of the companys expertise to current and potential clients. A 2014 article in Money magazine provides a list of 10 Social Media Blunders That Cost a Millennial a Jobor Worse, as follows: 1. 6. Peter Sanderson, project manager for the joint venture of Flatiron-Manson, led his team in completing the rebuilding project three months ahead of schedule, and the new bridge opened on September 18, 2008. Think of the whole world as your laboratory for learning. Project managers must focus on defining how quality relates to their specific projects and ensure that those projects satisfy the needs for which they were undertaken. A work package is a task at the lowest level of the WBS. Use effective configuration management. Effectively planning for good project communications and using appropriate technology become even more important in these situations. Did the project meet scope, time, and cost goals? It is important to start building trust immediately by recognizing and respecting others differences and the value they add to the project. IBM and Epic proposed running an instance of the Epic health-record system (the most popular system on the market) on a secure, IBM-operated data center. The Air Force proposal guidelines included a WBS that contractors were required to follow in preparing their cost proposals. The captains of Japanese industry adopted and implemented his concepts with an enthusiasm beyond his expectations making Deming probably the most famous quality guru. 3. Always reread your e-mail before you send it. Important questions to answer when estimating activity resources include the following: How difficult will specific activities be on this project? The main reasons organizations use PPM included customer satisfaction, cost reduction, and revenue growth. a. breakeven point b. The teams budget expert has approved this approach for the estimate. The project will also improve profitability by reducing internal costs by providing standard tools, techniques, templates, and project management knowledge to all internal consultants. Popular beliefs at the time were that work output was most improved through larger salaries, more supervision, or a more attractive work environment. $5 per person for registration plus 4 percent of the class fee per person to handle credit card processing; assume that everyone pays by credit card b. Kevin Dodge was JWD Consultings intranet guru, who tended to focus on technical details. 2. a. 2. 12. Suppose further that, according to the plan, it would take one week and cost a total of $10,000 for the labor hours, hardware, and software. Types of Cost Estimates The main outputs of project cost management are cost estimates and basis of estimates. End the practice of awarding business on price alone; instead, minimize total cost by working with a single supplier. (Volume I of II) This flexible pricing strategy is often advantageous to both the buyer and the seller. The project managers goal must be to achieve project success without increasing the costs or time required to complete the project. Your suggestions are welcome. There is a saying that the project manager who is the smartest person on the team has done a poor job of recruiting. Discuss why many IT professionals may overlook project cost management and how this might affect the ability to complete projects within budget. Assume also that in the past year, the company received 50,000 invoices from 200 different suppliers. For example, if an organization wants to automate its work practices or solve a business problem, it can write and issue an RFP so suppliers can respond with proposals. a. What Went Right? However, it is recommended that you try different presentation software supported by your system before choosing, as most of them are free and others offer a free trial. Everyone worked together to develop these planning documents, and there was strong buy-in. How does this satire influence the industry and educational programs? PMI began offering a new certification as a PMI Professional in Business Analysis (PMI-PBA) in 2014. Do not confuse duration with effort , which is the number of workdays or work hours required to complete a task. 4. Review the information for using a power/interest grid. Covey presents several paradigms of interdependence; think win/win is the best choice in most situations. Sarahs job was to uncover the real problems with IT support for the F-44 radar upgrade project, and then develop a solution with Ben and his team. One type of software that is particularly useful for streamlining procurement is the procureto-pay suite, which provides support for indirect procurements. Recall, however, that influencing by using penalties is correlated with unsuccessful projects. Implementation of innovative ideas or taking benefit of new opportunities is an integral aspect of TQM. No! These assets help people understand, follow, and improve business processes in an organization. When they find areas in which individuals or the entire team can improve, its their job to find the best way to develop their people and improve performance. Note that tally marks are used to enter each data occurrence manually. Many people use to have a standard format for preparing various project management documents. The kick-off meeting is often held after the business case and project charter are completed, but it could be held sooner, as needed. The project team could create a Pareto chart based on that data, as shown in Figure 8-7. Yes, you can use an adaptation of EVM, as described below. Print the network diagramon one page. In fact, TQM cannot have a good take off without total commitment of CEO and other senior executives. It is important to define the required quality in each section and to achieve the target without failure. Not emphasizing the importance of realistic project cost estimates from the outset is only one part of the problem. They also know that a good project leader needs to be a business leader as well, with strong interpersonal and intrapersonal skills. Potential proposers are advised that the contract resulting from the RFP will be a professional services contract. It is important to remember that the heart and soul of EVM are estimates, which are used to determine baselines. The project manager, Peeter Kivestu, had never worked in an IT department, but he had extensive knowledge of the airline industry and the reservations process. Global Issues Rapid changes in technology, such as the increased use of mobile roaming for communications, often cause governments around the world to take action. If the preferred supplier responds favorably, the organizations proceed to work together. A bid , also called a tender or quote (short for quotation), is a document prepared by sellers to provide pricing for standard items that the buyer has clearly defined. Plan for change. Application Software Learning becomes much more dynamic with hands-on practice using the top project management software tool in the industry, Microsoft Project 2016, as well as other tools, such as spreadsheet software and the Internet. Risk documentation What reporting formats and processes will be used for risk management activities? In fact, Kaizen has been applied to the following areas: iii. Six Sigma conversion table Sigma Yield Defects per Million Opportunities (DPMO) 1 31.0% 690,000 2 69.2% 308,000 3 93.3% 66,800 4 99.4% 6,210 5 99.97% 230 6 99.99966% 3.4 As you can see, the Six Sigma conversion table shows that a process operating at six sigma means there are no more than 3.4 defects per million opportunities. Were currently making huge investments in our Big Data platform, our AWS migration and our proprietary warehouse management software, Friang said. Table 4-4 lists suggestions for performing integrated change control. English, Employability Skills . Agile approaches were also measured across all project sizes from 2011 to 2015, showing that 39 percent of all agile projects were successful compared to 11 percent of waterfall projects. The first iteration of the software would also provide the ability to charge customers for some products and services. * Note that increasing the frequency of project monitoring and using a WBS and Critical Path Method (CPM) are strategies for all three areas. For example, Christa Ferguson, a PMP and independent program manager in San Francisco, described how she handled a request from a project sponsor to deliver a new tablet device in two months when she knew she would need more time. 2. In fact, many IT departments in organizations are in direct competition with outside vendors, and they are subject to the same kind of requirements definition, statements of work, and bids. Figure 12-3. Evaluation of any change should include an impact analysis. teamwork is almost always lacking within organizations that fail, and often present within those that succeed.* However, teamwork is challenging to create, and because teams are subject to dysfunction, maintaining teamwork is equally challenging. In order to achieve world class status and business excellence, the Indian IT sector should concentrate more on quality assurance and product development. You can also calculate the to-complete performance index (TCPI) , a measure of the cost performance that must be achieved with the remaining resources to meet a specific goal, such as the BAC or EAC. Relationships are based on trust, and collaboration is continuously improved using regular feedback loops. a. An IT steering committee can also be used to represent the entire IT Portfolioa key consideration in change management, especially when resources must shift to accommodate approved changes. Again, potential proposers must have asked for this conference to help clarify the procurement. Other top criteria for investing in IT projects include supporting implicit business objectives and providing financial incentives, such as a good internal rate of return (IRR) or net present value (NPV). For example, suppose that a project requires a piece of equipment that has a purchase price of $12,000 and daily operating costs of $400. a. Summarize the findings of the reports and your opinion on the topic. Project teams must understand and use these codes properly. . * See PMIs website for more information on award criteria and winners. Project management software was very helpful throughout the project. He also wanted Erica to alert him to any potential issues or problems. Figure 9-2. Sample control chart Looking for and analyzing patterns in process data is an important part of quality control. Minimizing these costs and achieving the desired goals requires strategic commitment by top management. Performing quantitative risk analysis involves numerically estimating the effects of risks on project objectives. It is good practice to include time for informal meetings with customers to help develop relationships and provide staff to assist in relationship management. Many motivation theorists suggest that only certain types of rewards, such as work challenge, achievement, and recognition, truly induce people to change their behavior or work hard. This is probably the simplest, and most direct, way to understand the other person. Change the Laws Campaign : Launch a global campaign to change laws to reduce further income inequality and promote social responsibility. However, projects must address issues in all three spheres of the systems management model. All of the financial estimates are very encouraging. The new system was finally completed in 2006 and cost more than $537 million more than a year late and $200 million over budget. When done improperly or with the wrong person, it could result in very negative consequences. Why not get excited about studying project management by seeing its concepts at work in popular television shows, movies, or other media? The approach is on preventing the defects rather than detecting them. 4. Tools and Techniques for Planning Procurement Management Several tools and techniques are available to help project managers and their teams in planning procurement management, including make-or-buy analysis (a type of data gathering), expert judgment, and market research (a type of data gathering). Password requirements: 6 to 30 characters long; ASCII characters only (characters found on a standard US keyboard); must contain at least 4 different symbols; While initiating processes for a new project, the organization recognizes that a new project exists and completes a project charter as part of this recognition. Explain the four frames of organizations. Include time and cost estimates for each strategy as well. The processes involved in project stakeholder management, as well as the other knowledge areas, follow a clear, logical sequence. Carrying out the work 4. Summarize what you learned and post the summary on both sites. involved with a project. Support staff might include the buyers employers, the general contractors administrative assistant, and people who support other stakeholders. If they are accepted, they are considered to be validated deliverables. Your semester has just started, so you plan to hold your event at the end of the term. Material from this publication has been reproduced with permission of PMI. Advice for Young Professionals If you have never done so, take a class or do self-study in accounting, financial statements, or financial management. It is important to encourage engagement early in a project and have deliverables that require engagement. The accountants will remind project managers to strive to get the lowest rates possible. The communications management plan should address the following items: 1. Ted is working on task T2, and tasks T4, T5, and T6 have not yet been assigned for anyone to work on. Prepare an issue log for the project. Erica wanted to complete the project on time, and although three extra days was not much of a buffer, she felt that the baseline schedule was realistic. Group emphasis: The degree to which work activities are organized around groups or teams, rather than individuals. Humphrey teaches a development process in which programmers measure and track the kinds of errors they commit so they can use the data to improve their performance. The study defines collaboration as an interaction between culture and technology, such as audio and Web conferencing, e-mail, and instant messaging. Psychosocial issues that affect how people work and how well they work include motivation, influence and power, effectiveness, emotional intelligence, and leadership. By creating handouts and visual aids, you must organize thoughts and ideas. Which of the following is not true? The Capability Maturity Model Integration (CMMI) is a process improvement approach that provides organizations with the essential elements of effective processes. Which of the four frames of organizations addresses how meetings are run, employee dress codes, and expected work hours? Initiating a continuous improvement process, and. 10. Running Case As described in earlier chapters, your Global Treps team would pay for a new website and account through an online provider. The U.S. Bureau of Labor Statistics estimates the rate to be only 2 percent, and project management is one of the ten hottest tech skills. Channels beamed the photographs on 12th March night. Why is it often difficult to do? What were the success criteria listed in the project scope statement? Consider Table 6-2. The term agile is often used to describe a variety of methods. The main disadvantage of crashing is that it often increases total project costs. Research articles and tools on project portfolio management. 4. statistic alerts) please log in with your personal account. Organizations can be either the buyer or the seller of products or services under a contract or other agreement. One of her staff members wanted to move into the consulting group, and she believed the PMO could continue to provide its current services with one less person due to this new systema benefit Erica had not considered before. Find someone who works as a project manager or someone who works on projects involving IT, such as a worker in your schools IT department or a project manager active in a professional group, like PMI. He is best known as a pioneer of the quality circle movement in Japan. The main outputs of the cost estimating process are activity cost estimates, basis of estimates, and project documents updates. Anyone who has tried to write a computer program from poor specifications appreciates the importance of a good plan. stress on quality improvement, zero defects production, making all employees responsible for quality maintenance and improvement) are likely to bring quality improvement as well as yield improvement. What are the three main categories of outputs for quality control? The new system must run on existing hardware and software, and it should require minimal technical support. The impact of a risk occurring could include factors such as the availability of fallback solutions or the consequences of not meeting performance, cost, and schedule estimates. Some projects might require that each WBS item describe the responsible organization, resource requirements, estimated costs, dependencies with other activities, and other information. Executives and lawmakers finally started paying attention to risk management. Many industries tolerate a very low cost of nonconformance, but not the IT industry. * Figure 1-7 shows the rapid growth in the number of people earning PMP certification from 1993 to 2017. The project team reviews information and uses expert judgment and meetings to help create a scope management plan and requirements management plan. feature for a description of how Zulily continues to use in-house software development to provide a competitive advantage. How fast must the response time be for different aspects of the system under different circumstances? Bharat Skills,a Central Repository for skills which provide NSQF curriculum, course material, videos, question banks and mock test etc. Encourage employees to communicate to management the obstacles they face in attaining their improvement goals. This type of contract is not usually subject to appeals. 6. a. If you have a duration estimate, write it next to the activity letter or name, as shown in Figure 6-2. More recent studies recognize a sixth conflict-handling mode: 6. Due to quality improvement, the sales and profits will also increase. This life cycle model also requires heavy user involvement and helps produce systems quickly without sacrificing quality. Important considerations include the use of technology, the appropriate methods and media to use, and performance reporting. Consider a large automation project for the U.S. Air Force. Instead, lightweight estimation methods can be used to generate a fast, high-level forecast of project labor costs, which can then be easily adjusted as changes arise. The chart includes three lines and two points, as follows: Planned value (PV), the cumulative planned amounts for all activities by month. That leaves 52 percent of projects as challenged (over budget, late, and/or poorly implemented). 2. Does HFC require use of any specific project-management software programs? It is important to determine who should attend a meeting based on its purpose and intended outcome. Project Management Software* The project management and software development communities have definitely responded to the need to provide more software to assist in managing projects. Microsoft and the Office logo are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. It is often shared through conversations and interactions between people. In addition, the groups preparing cost estimates must have the needed expertise to determine whether certain parts of the project will be more or less expensive than analogous projects.