Cost plus percentage of cost CPCC See cost plus fee CPF

Cost reimbursable contract This type of contract charges the allowable costs associated with producing the goods or services of the project to the buyer. cost variance (CV) This is an earned value analysis technique that determines whether costs are higher or lower than budgeted during a given period of time CV EV - AC. cost-benefit analysis This compares the financial benefits to the company of performing the project to the costs of implementing the project. crashing Crashing is a compression...

Review Questions

Which organization has set the de facto standards for project management techniques 2. The VP of marketing approaches you and requests that you change the visitor logon screen on the company's website to include a username with at least six characters. This is considered which of the following 3. Your company manufactures small kitchen appliances. It is introducing a new product line of appliances in designer colors with distinctive features for kitchens in small spaces. These new products will...

Project Champion

The project champion is another strong project supporter. Unlike the sponsor, the project champion doesn't necessarily have a lot of authority or executive powers. The champion helps focus attention on the project from a technical perspective. The project champion is usually someone with a great deal of technical expertise or industry knowledge regarding the project. They can lend credibility to the viability of the project and to the skills and abilities of the key project team members to...

Communications Management Plan

There are two outputs to the Plan Communications process. They are communications management plan and product document updates. The updates that may be required as a result of performing this process are the project schedule, the stakeholder register, and the stakeholder management strategy. Let's take a closer look at the details of the communications management plan. All projects require sound communication plans, but not all projects will have the same types of communication or the same...

Project Management Offices

The project management office (PMO) is usually a centralized organizational unit that oversees the management of projects and programs throughout the organization. The most common reason a company starts a project management office is to establish and maintain procedures and standards for project management methodologies and to manage resources assigned to the projects in the PMO. In some organizations, project managers and team members might report directly to the PMO and are assigned to...

Selecting and Prioritizing Projects

Most organizations don't have the luxury of performing every project that's proposed. Even consulting organizations that sell their project management services must pick and choose the projects on which they want to work. Selection methods help organizations decide among alternative projects and determine the tangible benefits to the company of choosing or not choosing the project. Project selection methods will vary depending on the company, the people serving on the selection committee, the...

Project Statement of Work

The project statement of work (SOW) describes the product, service, or result the project was undertaken to complete. When the project is internal, this document is usually written by either the project sponsor or the initiator of the project. When the project is external to the organization, the buyer typically writes the SOW. For example, suppose you work for a consulting firm and have been assigned as the project manager for a project your company is performing on contract. The customer, the...

Releasing Project Team Members

Releasing project team members is not an official process. However, it should be noted that at the conclusion of the project, you will release your project team members, and they will go back to their functional managers or be assigned to a new project if you're working in a matrix type organization. You will want to keep the functional managers or other project managers informed as you get closer to project completion so that they have time to adequately plan for the return of their employees....

WBS Templates

Work breakdown structures can be constructed using WBS templates or the WBS from a similar completed project. Although every project is unique, many companies and industries perform the same kind of projects repeatedly. The deliverables are similar from project to project, and they generally follow a consistent path. WBS templates can be used in a case like this as a tool to simplify the WBS process, saving the project manager time. Don't get too carried away when creating a WBS. The object is...

Process Interactions

We've covered a lot of material, but I'll explain one more concept before concluding. As stated earlier, project managers must determine the processes that are appropriate for effectively managing a project based on the complexity and scope of the project, available resources, budget, and so on. As the project progresses, the project management processes might be revisited and revised to update the project management plan as more information becomes known. Underlying the concept that process...

Industry Knowledge

Contributing and applying professional knowledge goes beyond project management experience. You likely have specific industry or technical experience as well. Part of applying your professional knowledge includes gaining knowledge of your particular industry and keeping others informed of advances in these areas. Information technology has grown exponentially over the past several years. It used to be that if you specialized in network operations, for example, it was possible to learn and...

Project Case Study New Kitchen Heaven Retail Store

You worked with the stakeholders to document the activity list last week. After creating the first draft of the project schedule network diagram, you went back to each of them to ask for time estimates for each of the activities. Ricardo's estimates are shown here 1. Procure the T1 connection. This takes 30 to 45 days. This activity can be done concurrently with the other activities listed here. Ricardo will perform this activity. 2. Run Ethernet cable throughout the building. This activity...

Assessment Test

The project sponsor has approached you with a dilemma. The CEO announced at the annual stockholders meeting that the project you're managing will be completed by the end of this year. The problem is that this is six months prior to the scheduled completion date. It's too late to go back and correct her mistake, and stockholders are expecting implementation by the announced date. You must speed up the delivery date of this project. Your primary constraint before this occurred was the budget....

Precedence Diagramming Method PDM

The precedence diagramming method (PDM) is what most project management software programs use to sequence activities. Precedence diagrams use boxes or rectangles to represent the activities (called nodes). The nodes are connected with arrows showing the dependencies between the activities. This method is also called activity on node (AON). The minimum information that should be displayed on the node is the activity name, but you might put as much information about the activity on the node as...

Project Management Process Groups

Don't confuse project phases and life cycles with the project management process groups. Project phases and life cycles describe how the work Let's start with a high-level overview of each process group. The remainder of this book will cover each of these processes in detail. If you want to peek ahead, Appendix A lists each of the process groups, the individual processes that make up each process group, and the Knowledge Areas in which they belong. (I'll introduce Knowledge Areas in the section...

Team Building and Motivating Skills

Project managers will rely heavily on team-building and motivational skills. Teams are often formed with people from different parts of the organization. These people might or might not have worked together before, so some component of team-building groundwork might involve the project manager. The project manager will set the tone for the project team and will help the team members work through the various stages of team development to become fully functional. Motivating the team, especially...

Planning Processes

Table A.2 lists the inputs, tools and techniques, outputs, and Knowledge Areas for the processes in the Planning process group. Process Name Develop Project charter Expert judgment Project manage- Integration TABLE A.2 Planning Processes continued Define Scope Project charter Expert judgment Project scope Scope Requirements Product analysis Project document Enterprise environ- Rolling wave Activity attributes Project schedule Time network diagrams Estimate Activity Activity list Resources...