Scope management

All control processes will have “Work performance data” as an input

Variance analysis –> Planned vs Actual

Trend analysis –> Stock market example, we must have data for this.

Control scope is linked to Performance Integrated change control

RTM – Adds business value by linking business and project objectives. [WBS, Design, Development
and testcases]

Multicriteria decision making is also known as “Decision Matrix”

Requirement documentations -> Not all req. mentioned in this doc are included in the project.

Define scope -> Selects the final project requirements from Requirement documentation

Product analysis techniques - > Product breakdown, Requirements analysis, Systems analysis,
Systems engineering, Value analysis, and Value engineering.

Project scope statement ->Project scope, Major deliverables, assumptions and constraints

Project scope statement template -> Project scope desc., Deliverables, Acceptance criteria, Project
exclusions (this mentions what is out of scope and then help to manage stakeholder’s expectations
& reduce the scope creep)

WBS -> Hierarchical decomposition

Work packages -> lower level components of WBS

WBS estimation techniques -> top-down (Analogous, Parametric, 3-points) and bottom – up

100% rule -> total of the work at lowest levels should be roll out to higher level so nothing is left out.

Scope baseline -> Approved version of the scope statement, WBS and WBS dictionary, can be
changed only through change control process once baseline is finalized

Control account -> compare (scope+schedule+cost == Earned value) ? One account has more than
one work package however reverse is not true

Planning package -> this is there in WBS. First we derive planning package and then work package.

There is no task details contains in any of the scope document. It will be covered in schedule.

Validate scope > Completeness of the product / UAT acceptance / throughout the project

Control quality -> QA testing for correctness

Requirement management plan is also known as Business analysis plan.

Requirement Documentation – Acceptance criteria is the important thing.

Planning package is super set of work package

Bigger is better – True for NVP, BCR, IAR

Smaller is better – True for CBR – cost benefit ratio – Opportunity cost

WBS created by team -> team buy in

If NVP, IAR and payback period is given ask which project you will select. Then go in the given
sequence.

Schedule management

1. Milestone – significant events to know important deliverables, no duration, no work

activities , 0 days,
2. Kill point / Phase gate -> End of phase
3. Define activities & Develop Schedule is having output of CR
4. Network diagram -> Pure form – default – just show relationships. When time is added, it
becomes time-scaled schedule diagram.
5. The project team identifies mandatory and discretionary dependencies; the project manager
identifies external and internal dependencies.
6. Path divergence(multiple successors), Path convergence (multiple predecessors)
7. Estimate activity: - Resource breakdown structure – types of resources needed, Resource
requirements – Skills , Project team assignment - # and experience level of individual of the
team
8. Heuristics – Accepted rule to estimate – like QA time will be 30% of development
9. Delay in any activity on the critical path will be the same delay in the project end date.
10. Soft logic – Discretionary dependencies
11. No Historical information/ insufficient /uncertainty/ Straight / Simple data then Triangular
Distribution
12. Weighted = Beta distribution
13. You can use estimate ranges and standard deviation to assess risk.
14. Estimation calculation will be useful for PM in monitoring & controlling process.
15. Contingency reserve is included in the project schedule baseline.
16. Estimating activities – team buy in
17. Project float / Positive total float : PM can delay the project without affecting the timeline
given by customer / sponsor
18. Barchart -> Resource manager, Milestone -> Sr. mgnt., Network diagram -> Team
19. Maximum risks at critical paths
20. Free float-> Does not affect successor activity, Total float -> Does not affect project timline
21. Does the network diagram change when the end date changes? No, not automatically, but
the project manager should investigate schedule compression options such as fast tracking
and crashing the schedule to meet the new date. Changes, the project manager should
change the network diagram accordingly.
22. More than one critical path is possible. More risks.
23. Fast track / Crashing can be done on critical path. Fast track -> High risk,More attention to
communication; Crashing-> High cost
24. Bar chart -> Shows progress / To report to the team
25. Critical path -> Schedule flexibility word
26. If we are asked to shorten activity to shorten path, we should check for the earlier activity in
the critical path.
27. Schedule is not finalized until after schedule compression.
28. Monte carlo - > Probability analysis
29. Parametric estimation technique – Word is “PER”, “Average”
30.
Cost management

EAC - > We need x amount of money while we complete the project.

ETC -> We need x amount EXTRA to complete the project.
Assuming current cost performance is atypical for future, what is EAC?
=> AC+BAC-EV

One point estimation technique is not the slowest technique.

Difference between cost budget and cost baseline is “management reserves”
Earned value analysis for “Performance reporting”
Cost risk -> There is a risk that project costs could go higher than planned.
When we want to cut the project cost, we should look for Direct and variable costs.
- Control means measure
- the project is on track checking through earned value analysis
- the project manager can monitor completion of work packages as a way to show progress on
deliverables within the time and cost allotted to them in the plan.
- Earned value analysis is used in performance reviews to measure project performance against the
scope,
schedule, and cost baseline(3 baselines = performance measurement baseline).
- EV can be used to forecast future performance and project completion dates and costs.
- Earned value analysis may also result in change request to the project.
- Last formula of EAC - So for example, it might be used when the cumulative CPI is less than one and
firm completion date must be met. (CPI*SPI)
- TCPI - "To stay within budget, what rate do we need to meet for the remaining work?"
EVA also includes monitonng the use of contingency reserves to ensure the amount of reserve is
adequte.
- Value analysis - Its focus is on finding a less costly way to do the same work
- Cost risk - Rist on the cost. The concept ofcost risk involws cost, riskk and procurement
management.
- Control thresholds are the amount of variation allowed before you need to take action
- Team trainin: Direct cost
- Taxes, Fringe benefits and Janitorial services: Indirect cost
- one point estimating technique
- ROM: initiating process - -25% to +75% Range
- Budget estimate - -10 to +25%
- Definitive estimate - Planning process - -5 to +10%
- Cost budget = cost baseline + mgnt reserve
- RITA page 303 ?
- Discounted cash flow?

Resource levelling Resource Smoothing

It applies the resource constraints to the We apply resource smoothing after doing
project and may result in a change in project resource-leveling.
duration. Since we need to first accommodate the
resource constraints before we can optimize
it.
Here we make use of slack, and will not result
 in a change of project duration. Because the
total allocation of a certain resource remains
the same.
Resource smoothing is more to do with
Resource Leveling is primarily driven by
desired limits like we do have 40 hours
resource constraints like you do not have more
available for a given resource but we wish
than 40 hours of the given resource for a
that we allocate 35 hours per week so we have
week.
some breathing space.
The desired limit identified in resource
The allocation limits identified in resource smoothing may not be applied in some cases,
leveling must be applied. if we do not have slack. It is optimized within
the float boundaries
When Resource Leveling changes the project Resource smoothing will not change the
dates, may also change the critical path, since critical path; it tries to make the best use of
constraints drive it. slack.

Procurements

CR Expertise needed, R&D

PO Standard comodities – Fixed price contract
IF or AF Best performance is needed
Begin work right away, need service for shorter duration, augment
T&M your staff
FP Scope is very clear
FPEPA Fixed price + Economy word
Target price Target cost+ target fee

Acquire resources create resource calendar which is used in the “estimate activity resources”.

Integration management

Primary role of PM is integration management

If too many CRs in the project, it would be good to revise Business case.
Configuration management system, Scheduling software, Work authorization system, time tracking
softwares are part of PMIS, EEF

kick-off meeting is held just after the approval of the Project Management Plan, and it is done in the
Develop Project Management Plan process.

Issue log is created during direct & manage project work process.
Explicit knowledge (information management) => Lessons learned, based on true events, data,
expressive in words or numbers
Tacit knowledge (Knowledge management) : based on feelings, experiences.

Lessons learned is an output of Manage project knowledge process.

OPA revisions done in Direct & manage project work & Manage project knowledge.

Develop project charter Direct & Manage project work Manage project knowledge
 Assumption log Issue log Lessons learnt

No matter how much we use contingency, costbaseline will never change

Describing what the project team has accomplished : Status report

Describing where the project now stands : Progress report
Predicting future project status and progress : Trend / Forecast report

Q: What does "atypical for future" mean?

Ans : It means we will assume the current performance will not affect future performance. Therefore,
future performance will be the same as what we have assumed at the very beginning of the project.

Only the low severity Risks are added to the watch list; since these Risks are listed in the short list,
they are the high severity Risks. The Qualitative analysis is enough in such a case.

Question 2:

The following information is known about the given activities:

Activity 1: Optimistic = 15 days, Most Likely = 20 days, Pessimistic = 26 days

Activity 2: Optimistic = 200 days, Most Likely = 205 days, Pessimistic = 207 days

Activity 3: Optimistic = 20 days, Most Likely = 24 days, Pessimistic = 30 days

Activity 4: Optimistic = 10 days, Most Likely = 12 days, Pessimistic = 13 days

If your organization implements 6 sigma, which activity is the riskiest activity?

The activity having the widest range is the riskiest activity. The range of Activity 1 = 26 – 15 = 11
days; The range of Activity 2 = 207 – 200 = 7 days; The range of Activity 3 = 30 – 20 = 10 days; The
range of Activity 4 = 13 – 10 = 3 days. Since Activity 1 has the widest range, the best answer is A.

[6:09 PM] Payal Patel

A Risk not included in the Risk Response Plan has an expected monetary value of $5,000 and the
probability of this Risk to occur is 20%. The total duration of the Project is planned to be 12
months. If this Risk occurs during the fifth month of the Project, which of the following options is
true?

No changes in Cost baseline

Cost baseline will be increased by 1K
Cost baseline will be increased by 5K
Cost baseline will be increased by 25K

Explanation:
Since this Risk is not included in the Risk Response Plan, the cost baseline should be increased by the
actual impact of the Risk. Since the actual impact value is not given in the question, we will assume
the actual impact equals the expected impact. Expected Monetary Value = Probability x Impact;
$5,000 = 0.20 x Impact; If we divide both sides by 0.20, Impact = $5,000 / 0.20 = $25,000. Therefore,
the cost baseline should be increased by $25,000. The best answer is D.

Self : Need details –

1. Cost centres
 2. Job shadowing
3. Stage gate
4. Standard variance / Variance – why use?
5.

Communication

Efficiency is providing only the information that is needed

Overhead cost are those cost which are not in your control. Project team salary cost, travel
cost, training cost are direct cost. Cost of HR/Sales/Director are overhead cost

Burn rate is inverse of CPI, i.e. Burn Rate = 1/CPI. This gives a measure how fast cash
is being burnt!!

The best forms of power are expert and reward.

Conflict sources priorities –

1. Time (Schedules) (unrealistic, resources not available)

2. Project priorities

3. Resources

4. Technical opinions

5. Administrative procedures

6. Cost

7. Personality

(T-P-R-T-A-C-P)

Fringe benefits: These are the standard benefits formally given to all employees, such as education
benefits, insurance, and profit sharing.

Perquisites ( perks): Some employees receive special rewards, such as assigned parking spaces,
corner offices, organizational logo apparel, and executive dining.

Another appro.1ch to continuous improvement is Six Sigma, Generally 3 or 6 sigma is preferred.

A JIT system forces attention on quality as well as schedule.

 Plan Manage (Assurance) Control
Output: Quality metrics Continuous improvement
Perform cost-benefit, CoQ, Problem solving / Root cause Quality control measurements
of the problem Verified deliverables
Output: Quality Audits, Quality Input: test and evaluation
reports docs, Quality metrics
Create test and evaluation Inspection, testing
docs
Designs for X
Process improvements
processes
Input: Quality control
measurement
Design for experiments
(alternative analysis, less cost
& same level of quality)

Marginal Analysis -> the benefits or revenue to be received from Improving quality equals the
incremental cost to achieve that quality (when cost becomes equal to benefits)