Appendix Probability Distributions

N the discussion so far, I have tried to sound less like a statistician and more like a project management practitioner. The material I have covered here is mainly practical. But there are a few more things we should discuss if we are going to use any of the many statistical packages that are available for project management. Many of these software packages require making decisions on the type of distributions to use, so it is important to know the differences. A probability distribution is a...

Program Evaluation and Review Technique PERT

The PERT system was developed for the Polaris Missile Program in the 1950s. At that time there was a lot of pressure on the U.S. Navy to complete the Polaris Missile Program. The Cold War was raging, and the United States needed a deterrent that would discourage the threat of nuclear weapons by Russia. A mobile missile that could be carried aboard a submarine and launched from beneath the surface of the sea would be a formidable weapon. The problem for the U.S. Navy was that there were two...

Risk Quantification

Comparative Advantage Quantified

As part of the quantification process in risk management, we need to find a way to organize the risks so that they can be dealt with in a logical way. There are two things we need to consider. The first is that the risks need to be put into groups that can then be managed by individuals who are more familiar with the nature ofthese risks. The second is that the risks need to be put into some priority order. This is because no organization will ever have the funds or manpower to deal with all...

Professional Responsibility

The Project Management Institute engaged the Columbia Assessment Service (CAS) to study the PMP examination process. This resulted in changes to the PMP examination. In fact, the exam was revised considerably as a result of the work that was CAS began by analyzing the responsibilities of project management professionals (PMPs). Then it specified a plan for the testing of PMPs, wrote and rewrote questions for the exam, and determined the passing score for the test. The Project Management...

Task

Balance stakeholders' interests by recommending approaches that strive for fair resolution in order to satisfy competing needs and objectives. In the development of any project, one of the most important things that we must do is to accomplish the scope of the project. We have a professional responsibility to make sure that each of the agreed upon stakeholder's needs is met by the completion of the project. We must also take the responsibility of making the stakeholder aware that there may be...

What Is the PMP Exam Like

The Project Management Institute (PMI) has constantly improved the PMP examination since it was first given and will continue to improve the exam as time goes on. April 2002 was significant because of the culmination of several factors that have had an influence on the PMP examination. The Project Management Professional (PMP) Role Delineation Study was begun in 1999 to help define the roles and responsibilities of project management professionals. From this knowledge, an examination could be...

Contracts And Procurement

A project manager must make a narrative description of the project. This narrative description covers the items that will be supplied under the contract with the client. It is called 2. A project manager discovers that there is a part of the project that contains some risk. His or her strategy with this risk is to subcontract the work to an outside supplier by using a firm fixed-price contract. Which of the following is true a. The supplier will include an allowance for the risk in the...

Scope Management

Scope definition is defined by PMI as ''decomposing the major deliverables into smaller, more manageable components to provide better control.'' The chart of accounts is the system used to monitor project costs as defined by PMI. A stakeholder is an individual or organization that is involved in or may be affected by project activities. The actual payback period is between two years and three years. It is the point where the net or cumulative cash flows equal zero. This occurs between year 2...

Risk Management

Risk management is one of the most important areas of project management that must be considered. Companies that want to compete with one another have adopted project management as a method of managing their companies. They have had to learn how to define and control project scope, schedule, and cost as baselines, and they have had to learn all of the control elements necessary to make successful projects. But many of these companies have yet to learn to manage the risks involved in managing a...

Preface

This book has been written to help those preparing for the Project Management Professional Examination. It is aimed at those who want to learn project management methodology. It is not intended to be a drill in exam questions there are more than enough of those around. It is intended to cover all of the material that the Project Management Institute (PMI ) considers important enough to be included in the exam. This book has been revised to reflect the changes in the Project Management...

Risk Identification

The identification of risks is very important. Each must be described in detail so that it will not be confused with any other risk or project task that must be done. Each risk should be given an identification number. During the course of the project, as more information is gathered about the risk, all of this information can be consolidated about the particular risk. The first component we need to discuss is the identification of the risk event. In the course of identifying risk events we...

Diagramming Relationships

The convention used in network diagramming of relationships and leads and lags is that the relationship is shown on the logical arrow only if it is not a finish-start relationship. If there are no leads or lags, no designation is given. Project Start and Project Finish Events Each activity in the diagram will always have a predecessor and a successor if the following convention is used. The convention is to create two events, the start of the project and the finish of the project. An event is a...

Contract Management

The first thing we need is a definition of a contract. Texts on business law define a contract as follows A contract is an agreement between competent parties, for consideration, to accomplish some lawful purpose with the terms clearly set forth. First of all, the contract is an ''agreement.'' This means that the parties involved must have a meeting of the minds and decide that they will do the things set forth in the contract. By this definition no contract can be forced on someone. If there...

Time Management

The following information and questions 1 through 10 refer to Figure 1. A schedule was developed for a project to install windows in an apartment building. The project is a rush job, and the contractor has agreed to schedule the work on a single shift basis but will work seven days per week until the job is done. The project is to begin on May 1. Figure 1. Scheduling practice exercise. Figure 1. Scheduling practice exercise. 1. What day in May will activity D have for its early finish date 2....

Work Breakdown Structure

At this point in our project development we have determined the deliverables that are due to all the stakeholders. But we cannot plan the project from this list of deliverables. To plan the project we must convert these into individual pieces of work that must be done to complete the project. For this we need the ''work breakdown structure,'' or WBS. The work breakdown structure is the most central item in the project plan. Without it we do not have a definition of the work that has to be done...

Risk Response Planning

The next task that must be done in our risk management system is risk response planning. At this stage we have discovered all of the risks known to date and have an iterative process for discovering new risks as the project progresses. We have evaluated the risks and assessed their impact and probability of occurrence. We have prioritized the risks in their order of importance. We now must decide what to do about them. This is risk response planning. Risk response planning is the process of...

Activity Sequencing

The activity's identity comes from the work breakdown structure. When the WBS is completed, the bottom of the work breakdown structure defines the individual pieces of work that are necessary to complete the project. These individual pieces of work are the same items that become the activities in the project schedule. One of the things that is done in the development of the WBS is to check that each of the activities has inputs for the work required. Each output from an activity is used by...

Human Resources Management

What are the major advantages of the functional type of organization a. Single point of contact for the customer b. Stable organizational structure d. Multifunctional teams are easy to form 2. The project manager's leadership style should be matched to the corresponding developmental level of the project team and should move through successive steps in the following order a. Disciplinary, autocratic, participative. b. Projectized, matrix, functional. c. Team building, team development,...

Quality Management

The processes required to ensure that the project will satisfy the needs for which it was undertaken include all activities of the overall management function that determines the quality policy, objectives, and responsibilities and implements them by means such as quality planning, quality control, quality assurance, and quality improvement, within the quality system. This is called 2. Decisions as to the types of projects that should be accomplished and strategic plans as to the quality of...

Cost Management

A project manager wants to make a trip to California by car. The project manager knows how many miles it will be to drive to California, the current price of gasoline, and how many miles the car will go on a gallon of gasoline. From this information he or she can calculate the estimated cost of the gasoline for the trip. This is a form of what kind of estimating technique 2. A project manager wants to make a trip to California by car. The project manager knows someone who has made this trip...