PMP
15th Sept, 2010, Wednesday
Chapter 9 Project Human Resource Management
9.1 Develope Human Resources Plan
The objective here is to ensure that each work package in WBS has an unambiguous owner and that all team members have a clear understanding of their roles and responsibilities.
[Note: See http://www.oregon.gov/DHS/admin/bpm/pmo/docs/2.15_PCoE_Duration_Estimating_Worksheet_Guide.xls%3fga=t for document templates]
9.2 Acquire Project Team
You can start building your project team once you have identified all of your tasks in the WBS. You analyze the work, identify the skills and other resources required and then look for resources that are both suitable and available. After you have added your resources to Project you can assign them to tasks to calculate the schedule and cost.
Note that for Software projects it is the Development Manager that creates the team. After the team is on board, the schedule for software architecture comprosing high level and detailed design, and coding estimate can be completed. This is because it is this team, not PM, that does the schedule and cost of development activity.
Put simply, until you hire Java developers, you cannot estimate architecture and coding effort accurately in a Java based development project.
11th Sept, Saturday, 2010
Covered Chapter 6 Time management through Chapter 11 Risk Management. Chapter 8 through 11 were breifly touched upon. At the beginning of the class worked on the Project file.
Updated the file with Cost estimates by assignining rates to resources (e.g PM = $200/hr etc) and then assigning Resources to each activities. Another thing was done here - assigning what % of time resources would be assigned to the activities (i.e. 25%/100% etc.). So if you need the PM for 10 hours for an activity but assigned 25% of his time for this, then this activity would spread out for 5 days (40 hours) because of that 25%.
So now for each task, we have
Activity duration
Person assigned
Rate of that person
Rate of involvement of that person (i.e. will she work 25% or 100% on that project etc) Resource Calendar ( Will the person be on leave during the last week of December. Will the office be open during the last week of the year etc.)based on all this the dollar cost of each of the activities was calculated.
So that was your Determine Budget activity - a simple aggregation of costs fot all activities. Almost automatically from there follows the Funding Requirements - Microsoft Project provides that as a "report" feature. It will tell you how much you will need every month during the year.
Then we baselined a major part of the activities. The Baseline Start Date and Finish Date columns appeared next to Start and Finish Date columns.
The Microsoft Project File is now a "Baselined Project Plan" document.
3rd September, 2010Chapter 9 Project Human Resource Management
9.1 Develope Human Resources Plan
The objective here is to ensure that each work package in WBS has an unambiguous owner and that all team members have a clear understanding of their roles and responsibilities.
[Note: See http://www.oregon.gov/DHS/admin/bpm/pmo/docs/2.15_PCoE_Duration_Estimating_Worksheet_Guide.xls%3fga=t for document templates]
9.2 Acquire Project Team
You can start building your project team once you have identified all of your tasks in the WBS. You analyze the work, identify the skills and other resources required and then look for resources that are both suitable and available. After you have added your resources to Project you can assign them to tasks to calculate the schedule and cost.
Note that for Software projects it is the Development Manager that creates the team. After the team is on board, the schedule for software architecture comprosing high level and detailed design, and coding estimate can be completed. This is because it is this team, not PM, that does the schedule and cost of development activity.
Put simply, until you hire Java developers, you cannot estimate architecture and coding effort accurately in a Java based development project.
11th Sept, Saturday, 2010
Covered Chapter 6 Time management through Chapter 11 Risk Management. Chapter 8 through 11 were breifly touched upon. At the beginning of the class worked on the Project file.
Updated the file with Cost estimates by assignining rates to resources (e.g PM = $200/hr etc) and then assigning Resources to each activities. Another thing was done here - assigning what % of time resources would be assigned to the activities (i.e. 25%/100% etc.). So if you need the PM for 10 hours for an activity but assigned 25% of his time for this, then this activity would spread out for 5 days (40 hours) because of that 25%.
So now for each task, we have
Activity duration
Person assigned
Rate of that person
Rate of involvement of that person (i.e. will she work 25% or 100% on that project etc) Resource Calendar ( Will the person be on leave during the last week of December. Will the office be open during the last week of the year etc.)based on all this the dollar cost of each of the activities was calculated.
So that was your Determine Budget activity - a simple aggregation of costs fot all activities. Almost automatically from there follows the Funding Requirements - Microsoft Project provides that as a "report" feature. It will tell you how much you will need every month during the year.
Then we baselined a major part of the activities. The Baseline Start Date and Finish Date columns appeared next to Start and Finish Date columns.
The Microsoft Project File is now a "Baselined Project Plan" document.
Types of requirements • Written for customers – User requirements • Statements in natural language plus diagrams of the services the system provides and its operational constraints. • Written as a contract between client and contractor – System requirements • A structured document setting out detailed descriptions of the system services. • Written for developers – Software specification • A detailed software description which can serve as a basis for a design or implementation. |
Software specification readers • Client engineers (maybe) • System architects • Software developers |
Now it should be a lot clearer to you. The Systems Requitements document must be mapped into Software Requirements Document.
Let's take an example. let's say you are building an Java GUI-based Network Alarm co-relation system. The system is supposed to collect alarms from all switches (ATM etc.) and show them on a GUI so that the operator can monitor the network. The alarms are collected from the interfaces (cards) of each switch into a relational database. The Java front end is interacting with the database and showing the alarms.
Now this requirement should be converted into a Software Requirements document that will clearly show the GUIs to be made available to the operator.
The development team would take this document as input and start designing software - the GUIs (JTable etc.), the Java data structures, the database schema, the connectivity requirements between all elements. At the end of this phase, the development team will create the Software Architecture document that will contain the software architecture from where developers can start coding. The mandatory practice during this phase typically are:
MANDATORY PRACTICESThis appendix is repeated from ESA PSS-05-0, appendix D.4AD01 AD phase activities shall be carried out according to the plans defined in the SR phase.AD02 A recognised method for software design shall be adopted and applied consistently in the AD phase.AD03 The developer shall construct a 'physical model', which describes the design of the software using implementation terminology.AD04 The method used to decompose the software into its component parts shall permit a top-down approach.AD05 Only the selected design approach shall be reflected in the ADD.For each component the following information shall be detailed in the ADD:AD06 · data input;AD07 · functions to be performed;AD08 · data output.AD09 Data structures that interface components shall be defined in the ADD.Data structure definitions shall include the:AD10 · description of each element (e.g. name, type, dimension);AD11 · relationships between the elements (i.e. the structure);AD12 · range of possible values of each element;AD13 · initial values of each element.AD14 The control flow between the components shall be defined in the ADD.AD15 The computer resources (e.g. CPU speed, memory, storage, system software) needed in the development environment and the operational environment shall be estimated in the AD phase and defined in the ADD.C-2 ESA PSS-05-04 Issue 1 Revision 1 (March 1995))MANDATORY PRACTICESAD16 The outputs of the AD phase shall be formally reviewed during the Architectural Design Review.AD17 The ADD shall define the major components of the software and the interfaces between them.AD18 The ADD shall define or reference all external interfaces.AD19 The ADD shall be an output from the AD phase.AD20 The ADD shall be complete, covering all the software requirements described in the SRD.AD21 A table cross-referencing software requirements to parts of the architectural design shall be placed in the ADD.AD22 The ADD shall be consistent.AD23 The ADD shall be sufficiently detailed to allow the project leader to draw up a detailed implementation plan and to control the overall project during the remaining development phases.AD24 The ADD shall be compiled according to the table of contents provided in APPENDIX C
1ST Sep, 2010
28th August, 2010
Class
Chapter 6 Project Time Management
6.3 Estimate Activity Resources
PMBOK P141
At this point activities are sequenced.
Who will do this?
What resources will be required to do this? h/w, s/w, personnel, license
How long is it going to take to do this? Resource --> labor, equipment and/or material
In IT, the resources are:
--> Dev environment (Think Apani)
Staging environment
Production environment
P 145 -> Resource Management is managed by a software
Expert Judgement --> Test Lead will provide resouce estimates for testing
6.4 Estimate Activity Duration PMBOK P146-147
Person doing the actual work (SME) should provide input to this.
How long do I need for validation plan? Test Lead should provide this. Should this be done only on
approved requirements?
Resource Leveling [P156]
Do not allocate your Java programmer to 150%.
27th August, 2010
Chapter 2 - Project Life Cycle and Organization
2.1.2 Product Vs. Project Life Cycle Relationships
Consider the case of Larsen and Loubro, the heavyweight in India. They make heavy engineering products like: Air Circuit Breakers, Power Distributors.
They also undertake projects like the one given below (taken from their site): L&T Bags Electrical Project Orders worth Rs. 6,350 million in the Gulf Region
Notice that the life cycle of "Air Circuit Breaker" will be vastly different from the "Electrical project in the Gulf".
ReadingWhat Is a Global Manager? by Chris Bartlett and Sumantra Ghosh
21 August 2010,Saturday
Chapter 7 - Project Cost Management
7.3.2 Control Costs: Tools and Techniques
Cost performance index (CPI) [PMBOK P183]CPI is the most critical EVM metric and measures the cost efficiency of the work completed. To understand this concept, let's say you are planning to do major upgrades to your two bathrooms ( high-end shower enclosure, designer tiles, high-end vanity and mirror etc.). Your contractor told you it will cost you $20000.00 and will take 30 days to complete. After 12 days you find that only 50% of the first bathroom (means 25% of total work) is complete when you expected it to be almost complete.
so your CPI after 12 days = EV/AC = (25% of 20000.00)/($20000.00/2) = $5000/$10000.00 = 0.5
you have a cost overrun situation indicating that you are expecting (12/30) * $20000 = $8000.00 worth of work done but you only have 25% of $20000.00 or, $5000.00 worth ofACTUAL work done.
7.3.2.3 To-Complete Performance Index (TCPI) (PMBOK® P185)TCPI = (BAC -EV) / (BAC -AC)
Let's say you have hired a contractor (your PM) to do a remodeling of the second floor of your house. There is major plumbing work for bathrooms, internal work both on walls and floors inside two of the bedrooms, then painting and electrical work to be done. You have agreed to pay $150000 to the contractor for the 8-week work.
After 6 weeks, you feel something is wrong because the electricians and the painters have not started their work yet. This makes you a bit suspicious about the progress. You find that you have paid the contractor $140000 to date.
By talking to your contractor and all other people working there - plumber, mason, electrician, painter etc. - you find that the work is only 60% complete.
Now you are saying "I have already spent $140000 on this project and it is only 60% done. I have aready spent 6 out of 8 weeks. I absolutely have to stay within my budget of $150000 - the performance index. At what rate do I need to speed up the work to complete it to meet my performance index (once again, it is BAC=$150000)?"
Hopefully you have understood the semantics of To-Complete Performance Index by now! Let's calculate it now.
So, here - at the end of 6 weeks:
BAC = Budget at completion = $150000.00
Earned Value = EV = BAC * (% work complete) = 1500000 * 0.6 = $90000.00
Actual Cost = Cost incurred as of today = $140000
TCPI = (150000 - 90000) / (150000 - 140000) = 60000/10000 = 6
TCPI = 6 means we need to work 6 times faster (compared to our progress so far in 6 weeks) to successfully complete the project within BAC (original budget). Whether this level is attainable is a judgement call based upon several factors. If you have to finish the work within 8 weeks, you might say "Let me talk to this guy (the PM) so that he can get some additional hands, I will foot the additional pay." If so, you now calculate the new EAC and throw the original BAC of $150000 out.
Class
Chapter 5 - Project Scope Management P116
SSO requirements --> Now the SSO team will provide their inputs as to what the technical requirements are and the Req Document will be updated. The SSO team will be updated in Stakeholder Register.
MS ProjectInsert a column titled "Deliverable" of type Flag to indicate if a current task is a deliverable or not. You can hide showing the column (Right click on "Deliverables and choose "Hide Column"), and, later on "unhide" the column again.
Also, the tasks in the Project document can be imported to VISIO (Enterprise Edition) to show WBS as a hierarchical structure (Seehttp://bvisual.spaces.live.com/blog/cns!3350D61BC93733A9!2098.entry
When you baseline a project, the Microsoft Project will have 2 columns added - Baseline Start and Finish dates.
5.3 Create WBS (PMBOK P116)
6.1 Define Activities
Tools
Expert Judgement
Procurement Expert
SSO Expert for SSO
Rolling wave planning - defining tasks now based on unknown activities
Ask UAT Lead for UAT Testing from 1st March next year
UAT Lead says - "The Application needs to be installed in UAT - when i sthat going to happen?
PM: So I will start UAT Testing on 20th March next - you take 20 days to write UAT scripts.
UAT Lead: Let me have Requirements documents (Business Analyst) by Jan 31 next year.
PM: Ok, I will put a place holder in the Project Plan document for UAT testing.
This is an example of RWP because right now you do not have the correct estimate, only ballpark. This is why it is called Rolling Wave Planning. As more is known about UAT activities it can be decomposed into activities.
6.1.3.2 Activity Attributes P136
All columns in Microsoft Project document against Task Name are activity attributes.
6.2 Sequence Activities P136
6.2.2.1 Precedence Diagramming Method
The ..... does not use network diagrams that often.
Project --> View --> Network Diagram
Shows dependency
Microsoft Project --> Predessor Column --> <Task #>FF + 15 Days
<Task #>FF - 10 Days
18th August, 2010
Chapter 7 Project Cost Management
7.2.2.1 Cost Aggregation (PMBOK P177)
Scope WBS with Milestones (See the article here
US 101 Cooper Point Road Interchange WBS (Scope) | |||||
Task # | WBS | Task Name | MDL Task Description | ||
2 | PC-01 | Preliminary Estimates & Schedules | Estimates and schedules developed for program | ||
6 | PC-02 | Project Summary | A document which comprises the Project Definition, Design Decisions and the Environmental Review Summary for a project | ||
21 | PC-06 | Project Funding Approved | MILESTONE - Official funding approval by the Region or HQ's Program Management in order to begin the design phase of a project | ||
22 | PC-07 | Begin Preliminary Engineering | MAJOR MILESTONE - Beginning the preliminary engineering marks the start of the project design. See Project Control & Reporting Manual for details. | ||
28 | PC-09 | Project Management | See Project Management On-line Guide (PMOG) http://www.wsdot.wa.gov/Projects/ProjectMgmt/ | ||
35 | PC-11 | Public and Agency Involvement | Local agencies and the public should be notified of projects in their jurisdiction or area. Contact the Communications office for details. | ||
37 | PC-12 | Project Data | Collection and organization of project information to develop project base plans. | ||
65 | PC-18 | Environmental Documentation | Federal and State regulations require WSDOT to document the environmental impacts of a transportation project. Where appropriate, other public and governmental agencies are involved in the decision making process. National Environmental Policy Act/State Environmental Policy Act (NEPA/SEPA) If project has a federal nexus, follow NEPA procedures and obtain review of proposed documentation level by FHWA. If state only funding, follow SEPA procedures. See Environmental Procedures Manual. | ||
160 | PC-19 | Environmental Permits | Identify and complete permits required for the project. Permit requirements are scoped as part of the Environmental Review Summary. See Environmental Procedures Manual for procedures. | ||
180 | PC-20 | Materials (Roadway) | Development of soils, surfacing, and materials reports for project. | ||
184 | PC-21 | Geotechnical Evaluations | Development of Geotechnical reports for project. | ||
191 | PC-22 | Structural Site Data | Site data to the Bridge and Structures Office, HQ Geotechnical Office, or Region Materials Office. May include base maps, photos, drawing or reports. | ||
196 | PC-23 | Structure Design | Development of structures reports and contract plans, specifications, and estimates (PS&E) . | ||
208 | PC-24 | Roadway Design | Development of earthwork design and channelization design. Also includes minor safety design and documentation. | ||
221 | PC-25 | Hydraulics | The Hydraulic Report is intended to serve as a complete documented record containing the engineering justification for all drainage modifications that occur as a result of the project. See Hydraulics Manual. | ||
227 | PC-26 | Partnerships | A contract entered into by two or more groups. | ||
239 | PC-28 | Right of Way (R/W) Engineering | Property required for a public facility, includes square footage, access rights, easements, and any property impacts as defined in the Right of Way Manual Division 6. | ||
266 | PC-30 | Roadside Restoration | WSDOT projects that disturb operational, environmental, visual and auxiliary functions (see Chapter 110 of the Roadside Manual) must be restored according to the policy set forth in the Roadside Classification Plan. | ||
270 | PC-31 | Traffic Design | Gathering of traffic data and development of Traffic reports, studies, designs, and plans. | ||
The Utility Accommodation Team evaluates and authorizes the installation of utilities and other facilities or activities within the state highway right of way. | |||||
286 | PC-32 | Utilities | The Utility Accommodation Team evaluates and authorizes the installation of utilities and other facilities or activities within the state highway right of way. | ||
291 | PC-33 | Work Zone Traffic Control (WZTC) | The planning, design, and preparation of contract documents for the modification of traffic patterns during construction is known as work zone traffic control. See Design Manual Chapter 810. | ||
296 | PC-34 | Design Documentation | Design documentation is prepared to record the evaluations by the various disciplines that result in design recommendations. See Design Manual Chapter 330. | ||
306 | PC-36 | Contract Plan Sheets Preparation | Development of the Contract Plansheets. See Plans Preparation Manual (PPM) M22-31. | ||
340 | PC-37 | Contract Specifications Development | Development of Contract Provisions. See Plans Preparation Manual (PPM). | ||
343 | PC-38 | Construction Estimate Development | Development of Contract Estimates for costs and time. See Plans Preparation Manual (PPM). | ||
347 | PC-39 | Construction Permits | Development and documentation of permits from other public agencies for work to be done outside of WSDOT right of way and within other public agency right of way. | ||
351 | PC-40 | Constructability Reviews | To develop a quality project, WSDOT uses a series of reviews at predetermined stages of project development. These reviews, called constructability reviews, attempt to ensure that: project development process is on schedule; project definition and estimates are correct; project is buildable; project is maintainable; and project documents are biddable. | ||
357 | PC-41 | PS&E Reviews | Plans Specifications & Estimate (PS&E) Reviews. Check for completeness and compatibility between the Plans, Specifications and Estimate. | ||
366 | PC-41.09 | Final Signed PS&E to Region | MILESTONE - Project Manager returns stamped and signed AD ready PS&E package to the Region. | ||
367 | PC-41.10 | Ad Package to Headquarters | MILESTONE - Final PS&E to HQ with all appropriate attachments as required on the Final Check Sheet, five(5) days prior to the scheduled Ad date. | ||
374 | PC-43 | Contract Ad & Award | Advertisement and award of construction contracts. See Ad and Award Manual. | ||
380 | PC-43.06 | MAJOR MILESTONE - Public opening and reading of sealed bids (Note: For Design-Build projects, this is reported as the selection date)" | |||
381 | PC-43.07 | Award | MAJOR MILESTONE - Official notice of award of the contract to the successful bidder. (For Design-Build projects, this is reported as the Contract Award date)" | ||
382 | PC-44 | Construction Milestones | Project Control and Reporting milestones for Construction phase of the project. Estimates here are for the Preconstruction phase and will be revised/updated when project is in construction phase. | ||
383 | PC-44.01 | Contract Execution | MAJOR MILESTONE - Project Control & Reporting (PC&R) Milestone. This is the date when the Department signs the actual contract with the contractor. This typically occurs within 21 days following contract award. See 1-03.3 of the Standard Specifications for further detail. (Note: For Design-Build projects, this is reported as the Notice to Proceed date)" | ||
384 | PC-44.02 | Construction Start | MAJOR MILESTONE - Project Control & Reporting (PC&R) Milestone. This is the date when work actually starts on building the project and activity might be seen on the site. The first day that can be charged against the contract. This day is usually the 10th calendar day following execution but is also sometimes changed by Special Provision. See 1-08.5 and contract special provisions for further details. | ||
385 | PC-44.03 | Operationally Complete | MAJOR MILESTONE - Project Control & Reporting (PC&R) Milestone. This is the date when the intended end user (the public in the case of facilities such as highways and ferry terminals, WSDOT employees in the case of facilities) has free and unobstructed use of the facility. In some cases, the facility will be open, but minor work items may remain to be completed. See 1-01.3 of the Standard Specifications for further details (Substantial Completion). | ||
Schedule[To be added]
Activity Cost Estimates (7.1.3.1 PMBOK P 174):
Task # | WBS | Task Name | Resource Names | Rate | Activity Cost |
2 | PC-01 | Preliminary Estimates & Schedules | |||
6 | PC-02 | Project Summary | |||
21 | PC-06 | Project Funding Approved | |||
22 | PC-07 | Begin Preliminary Engineering | |||
28 | PC-09 | Project Management | |||
35 | PC-11 | Public and Agency Involvement | |||
37 | PC-12 | Project Data | |||
65 | PC-18 | Environmental Documentation | |||
160 | PC-19 | Environmental Permits | |||
180 | PC-20 | Materials (Roadway) | |||
184 | PC-21 | Geotechnical Evaluations | |||
191 | PC-22 | Structural Site Data | |||
196 | PC-23 | Structure Design | |||
208 | PC-24 | Roadway Design | |||
221 | PC-25 | Hydraulics | |||
227 | PC-26 | Partnerships | |||
239 | PC-28 | Right of Way (R/W) Engineering | |||
266 | PC-30 | Roadside Restoration | |||
270 | PC-31 | Traffic Design | |||
286 | PC-32 | Utilities | |||
291 | PC-33 | Work Zone Traffic Control (WZTC) | |||
296 | PC-34 | Design Documentation | |||
306 | PC-36 | Contract Plan Sheets Preparation | |||
340 | PC-37 | Contract Specifications Development | |||
343 | PC-38 | Construction Estimate Development | |||
347 | PC-39 | Construction Permits | |||
351 | PC-40 | Constructability Reviews | |||
357 | PC-41 | PS&E Reviews | |||
366 | PC-41.09 | Final Signed PS&E to Region | |||
367 | PC-41.10 | Ad Package to Headquarters | |||
374 | PC-43 | Contract Ad & Award | |||
380 | PC-43.06 | Bid Opening | |||
381 | PC-43.07 | Award | |||
382 | PC-44 | Construction Milestones | |||
383 | PC-44.01 | Contract Execution | |||
384 | PC-44.02 | Construction Start | |||
385 | PC-44.03 | Operationally Complete |
7.2.3.2 Project Funding Requirements
Budget 2010-2014
US 101 Cooper Point Road Interchange
MP 366.26 to 366.57
Project Manager: Kevin Smith
July 19, 2010
Estimated PE Costs ($ in 1,000's)
2010 | |||||||||||
Jan | Feb | Mar | Apr | May | June | Jul | Aug | Sep | Oct | Nov | Dec |
7 | 15 | 30 | 30 | 40 | |||||||
2011 | |||||||||||
Jan | Feb | Mar | Apr | May | June | Jul | Aug | Sep | Oct | Nov | Dec |
20 | 20 | 25 | 40 | 28 | 32 | 30 | 30 | 35 | 35 | 30 | 40 |
2012 | |||||||||||
Jan | Feb | Mar | Apr | May | June | Jul | Aug | Sep | Oct | Nov | Dec |
40 | 43 | 45 | 47 | 55 | 67 | 69 | 78 | 87 | 100 | 110 | 123 |
2013 | |||||||||||
Jan | Feb | Mar | Apr | May | June | Jul | Aug | Sep | Oct | Nov | Dec |
176 | 234 | 345 | 456 | 478 | 567 | 589 | 621 | 622 | 625 | 625 | 650 |
7.3.2.2 Forecasting (PMBOK P184)
Tabular Performance report [PMBPK P271]
WBS Element | Planned Value (PV) | Earned Value (EV) | Actual Cost (AC) | Schedule EV - PV | Cost EV - AC | Schedule EV / PV | Cost EV / AC |
1. 0 Pre-Pilot Plan | 63,000 | 58,000 | 62,500 | (5,000) | (4500) | 0.92 | 0.93 |
2. 0 Checklists | 64,000 | 48,000 | 46,800 | (16000) | 1200 | 0.75 | 1.03 |
3.0 Curriculum | 23,000 | 20,000 | 23,500 | 3,000 | 3,500 | 0.87 | 0.85 |
Let's say it is December 2011 and you want to see if the BAC - that actual budgeted dollars - will be sifficient to finish the project or not. To do that you do:
a. Sum up the actual cost so far (AC)
b. Compute the remaining work - Jan 2012 to Dec 2013 - to be done (ETC). It is based on the project performance to date.
So, the Estimate for Completion (ETC) at that point in December 2011 is:
EAC = AC + ETC
Since the most common approach to computing ETC is a bottom-up summation by PM and project members, the formula is written as:
EAC = AC + bottom-up ETC
let's say that the above road construction project has a BAC of $10.8M. If the PM, in Dec 2011, finds that there is no way that above BAC is valid then she should replace that $10.8M figure by the more relevant EAC. If the EAC turns out to be $11.6M, then that is the figure that should be used from that point on.
17th August, 2010
Chapter 7 Project Cost Management7.2 Determine Budget (PMBOK P175)
Why do you need OPA as input? While developing the budget, having some information available on relevant past costs is called Historical Relationships (this is part of OPA) and taking advantage of someone’s expertise in the area is called Expert Judgment (a tool used for budgeting).
Chapter 11 Project Risk ManagementRead this nice article by Oracle that discusses with screenshots how risk register can be used while estimating cost. They try to establish that although using three-point estimates is a step forward from single-point estimating, you can make even more reliable, detailed estimates when using a risk register.
Also, take a look here for a sample - Sample 1 - Risk Register. Sample 2 is more complex (as well as hard to read). It includes columns showing how the risk affects the project cost as well as the project schedule.
16th August, 2010
Chapter 6 Project Time Management
6.5.3.3 Develop Schedule: Outputs -> Schedule Data (PMBOK P159)
Take a look here for personnel requirements by time period. based on this you can make a resource histogram.
Chapter 1 Introduction
1.8 Enterprise Environment Factors
Article titled "Consider Enterprise Environmental Factors when planning IT projects"http://blogs.techrepublic.com.com/tech-manager/?p=552&tag=rbxccnbtr1
Chapter 7 Project Cost Management
7.1.3.1 Activity Cost Estimates
Example:
1. www.naftatrade.com/1000h.htm --> cost of launching a new web site
2. http://pmbook.ce.cmu.edu/05_Cost_Estimation.html --> Table 5-2 Sample roadway construction cost
3. http://www.codeproject.com/KB/architecture/cocomo2.aspx --> Software cost estimate using COCOMO Model
4. http://aitoc.com/media/files/software_development_kit/610_1.gif
15th August, 2010
Chapter 12 Project Risk ManagementFor a word document of Risk Factors list go tohttp://www2.dir.state.tx.us/management/Pages/ITLeadership.aspx and type "risk factors" in the search box. For the list, look at the document titled: Generic Software Project Risk Factors. It is very recent - dated July 2010 - and very good.
The site http://aditya369.com/exam_structure.aspx presents the above breakdown of PMP exam questions. Also, on page http://aditya369.com/topic1.aspx, they provide some very practical tips on filling up the application form such as:
Tips to fill-in your application
- PMI categorized all project management processes in to 5 groups. Those are Initiating, Planning, Executing, Monitoring, and Closing.
- When you submit your application you need to categorize your experience in to these 5 process groups.
- Typically we have 2000 working hours in a year. Aproximately 500 hours in a quarter. You have spread those hours across the 5 process groups.
- For example in software industry if you are a developer or lead most of the time you spend on Implementation. So Executing will occupy majority of your project. If you are a Business analyst most of the time you spend on Initiating and Planning. If you are Coordinator or Project Manager you will spend mostly on Monitoring.
- You have to think about your projects and calculate hours you spend across these process groups. If you calculate those figures on working sheet, then you can fill your application with ease.
Also look up at the PPT slides for a PM course available here:
http://www.projectreference.com/
14th August, 2010
Chapter 7 - Project Cost Management
7.3.2 Control Costs: Tools and Techniques (PMBOK P181)
7.3.2.1 Earned value Management
The best way to understand an EVM example is to solve it.
Problem: A project has a budget of £10M and schedule for 10 months. It is assumed that the total budget will be spent equally each month until the 10th month is reached. After 2 months the project manager finds that only 5% of the work is finished and a total of £1M spent.
Solution:
PV = £2M
EV = Earned Value = BAC * Actual Percentage Complete = £10M * 0.05 = £0.5M
AC = Actual Cost = £1M
CV = Cost Variance = EV-AC = 0.5-1 = -0.5M
CV% = 100 * (CV/EV) = 100*(-0.5/0.5) = -100% overrun
SV = Schedule Variance = EV-PV = 0.5-2 = -1.5 months
SV% = 100 * (SV/PV) = 100*(-1.5/2) = -75% behind
CPI = Cost Performance Index = EV/AC = 0.5/1 = 0.5
SPI = Schedule Performance Index = EV/PV = 0.5/2 = 0.25
7.3.2.2 Cost Forecasting (PMBO P184)
Continuing with the same example ( red lines do not conform with PMBOK):
EAC = Estimate At Completion = BAC/CPI = 10/0.5 = £20M
EAC (PMBOK) = EAC for ETC work performed at budgeted rate = AC+BAC-EV =
£1M+£10M-£0.5M = £10.5M
ETC = Estimate To Complete = (BAC-EV) / CPI = (10-0.5)/0.5 = £19M
Time to compete = (10-0.5)/0.25 = 38 Months
This project will take TOTAL £20M (19+1) and 40 (38+2) Months to complete.
7.3.2.6 Project Management Software (PMBO P187)
There are many tools available on the market to measure earned value. The most common are:
- Microsoft Office Project (http://office.microsoft.com/en-us/project.
- Primavera Cost Manager (http://www.primavera.com.
- PlanView MPM (http://www.Planview.com.
- iPursuit (http://www.dekkerltd.com/evm.aspx.
- Deltek Cobra (http://www.deltek.com.
Also see http://pmstudent.com/evm-example-part-1-finding-pv-ev-and-ac/
PMBOK Page 183:
You found the following Earned Value Analysis information for a recently closed out project:
SPI = 0.7, CPI = 1.0
Which of the following is true?
1. The project has been cancelled while it was executed. At that time the project was behind schedule and on budget.
2. The project's deliverables have all been finished. The project came in behind schedule but on budget.
3. The project's deliverables have all been finished. The project came in ahead of schedule but on budget.
4. The project's deliverables have all been finished. The project came in on schedule but over budget.
Ans: 1
Chapter 6 - Project Time Management6.4.2.4 Three Point Estimates for Activity Duration (PMBOK P150)
from http://www.oliverlehmann.com/pmp-self-test/75-free-questions.htm
13th August, 2010
Reference:
http://pmi-ittelecom.org/pmtopics/
Chapter 7 - Project Cost Management
7.0 Introduction (PMBOK P106)
Rules of performance measurement - EVM
Following is a nice pointer to defining WBS points at which measurements of control accounts could be performed (From www.ProjectManagementDocs.com ):
We chose to create Cost Accounts at the fourth level of the WBS as an example since many project management offices don’t have a Project Management Information System. If you are using a Project Management Information System then you can, and should, manage costs down to the work package level. For those who don’t have a Project Management Information System you’ll want to determine which level of the WBS you can most effectively manage the project’s costs from. The further down in the WBS you go, the more detailed your cost management is. However, you should balance the granularity at which you want to manage costs against the amount of effort it takes to manage at that level. The more granular your cost management, the more work is necessary to manage it.
-----
Read http://en.wikipedia.org/wiki/Earned_value to get an idea of what project tracking without EVM is and then why EVM is necessary.
Chapter 4 - Project Integraion Management
4.6.3.2 OPA Updates (PMBOK P102)
Historical Information
Look at the following internet based system ( Titled Welcome to Lessons Learned) that lets project members add the lessons they learned throughout the course of the project. It has a web based front end ( a Form based front page) and captures the lessons on a backend database:
http://eefmapps.wsdot.wa.gov/fmi/xsl/Lessons/Main.xsl?-db=DebriefReport&-lay=LessonWebForm&MonthlyHighlight=Yes&-find
Also, once all the "lessons learned" inputs are provided, the database can be searched from another web page by entering keywords on a search box from this URL:
http://eefmapps.wsdot.wa.gov/fmi/xsl/Lessons/NewSearch.xsl
11th August, 2010
Chapter 6 - Project Time Management
6.5.2.3 Resource Leveling (PMBOK Page 156)
Project 2007: Leveling Resources See http://www.brighthub.com/office/project-management/articles/4966.aspx
9th August 2010
Chapter 6 - Project Time Management6.4.2 Analogous Estimating of duration (PMBOK Page 149)
Example (From http://www.brighthub.com/office/project-management/articles/55091.aspx )
This is for cost - the same concept applies for duration ......
-----
Read http://en.wikipedia.org/wiki/Earned_value to get an idea of what project tracking without EVM is and then why EVM is necessary.
Chapter 4 - Project Integraion Management
4.6.3.2 OPA Updates (PMBOK P102)
Historical Information
Look at the following internet based system ( Titled Welcome to Lessons Learned) that lets project members add the lessons they learned throughout the course of the project. It has a web based front end ( a Form based front page) and captures the lessons on a backend database:
http://eefmapps.wsdot.wa.gov/fmi/xsl/Lessons/Main.xsl?-db=DebriefReport&-lay=LessonWebForm&MonthlyHighlight=Yes&-find
Also, once all the "lessons learned" inputs are provided, the database can be searched from another web page by entering keywords on a search box from this URL:
http://eefmapps.wsdot.wa.gov/fmi/xsl/Lessons/NewSearch.xsl
11th August, 2010
Chapter 6 - Project Time Management
6.5.2.3 Resource Leveling (PMBOK Page 156)
Project 2007: Leveling Resources See http://www.brighthub.com/office/project-management/articles/4966.aspx
9th August 2010
Chapter 6 - Project Time Management6.4.2 Analogous Estimating of duration (PMBOK Page 149)
Example (From http://www.brighthub.com/office/project-management/articles/55091.aspx )
This is for cost - the same concept applies for duration ......
6th August, 2010
Chapter 6 - Project Time Management
6.3.2.2 Alternative Analysis (PMBOK Page 144)
You are the director of the web hosting group of a large financial services company. You have to host and support web sites of all of your major businesses and two major businesses have urgent business need to go live to production in 4 months, otherwise they will lose major market share. You need a rubust Application Server suite to host the sites but only have 5 java developers who are very busy with other projects and do not have sufficient experience of developing web application servers. Which of the following will be your most likely solution?
a) Try to estimate how many more Java developers are needed to develop the Application Server in-house within 2 months thereby meeting 4 month go-live request
b) Contact the vendors of two top application servers being used by all financial services company - IBM and Oracle - immediately so that the product can be purchased asap
c) Initiate an internal technical project to analyze if the need for a robust Application server can be circumvented by deveping a different architecture, which, by the way would violate overall IT strategic view
d) Tell business that you need a year to build your hosting environment even though the servers and all other hardware pieces are available
The above is an example of make or buy decision - the correct answer is B.
6.3.2.3 Published Estimating data (PMBOK Page 144)Suppose, your project needs four .NET developers, two User Experience professionals, and one Project Manager.
The rates for each of these team members, based on several widely available job portals, are:www.free-pm-exam-questions.com
July 6, 2010http://blog.tapuniversity.com/2010/01/
Posted by subrata at 9/2/2010 7:43 PM 
Categories: Project Management, IT, SDLC, 2010
Tags: WBS project management PMP Exam Project Cost Management To-Complete Performance Index (TCPI)
Categories: Project Management, IT, SDLC, 2010
Tags: WBS project management PMP Exam Project Cost Management To-Complete Performance Index (TCPI)
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