Wednesday, March 26, 2008

PROJECT COST MANAGEMENT - REVIEW

For you:

After Reviewing the Time Management chapter 6, I am now reviewing Cost Management, Chapter 7 – page 210 in Rita’s book has a nice exercise which clarified for me, the meaning behind each cost element. I recommend this exercise:

PV: What is the estimated value of the work planned to be done (BCWS)
EV: What is the estimated value of the work actually accomplished (BCWP)
AC: What is the actual cost of Work performed (ACWP)
BAC: Budget at Completion
CV Cost Variance (EV-CV)
CPI: Cost Performance Index (CPI=EV/AC)
SV: Schedule Variance (SV=EV-PV)
SPI: Schedule Performance Index (SPI=EV/PV)
EAC: Estimate At Completion (BAC/CPI)
ETC: EAC – AC
VAC: BAC – EAC

There are many formulas for EAC. See page 207 in RITA’s book (or look up in (PMBOK). Memorize this. Do the exercises – they help.
Points; EV comes first in every formula.
If it is a variance, the formula is EV minus something.
If it is index, it is EV divided by something
If the formula relates to cost, use AC
If the formula relates to schedule, use PV
For interpretation, negative is BAD and positive GOOD. (SV and CV)
For interpretation, greater than one is GOOD, less than one is BAD (SPI and CPI)

Monday, March 24, 2008

KEEP ON GOING - STUDY AND REVIEW

I am continually reviewing. I was taking the MeasureUp exam and came across a question requiring that you know how to determine float in a network diagram. This required knowledge of how to do a FORWARD and BACKWARD Pass, then compute the FLOAT for a particular task.

KNOW THIS!
Calculate Early Start and Early Finish values using Forward pass.
EF = ES + DUR -1 on subseuent activites is greast EF + 1

Calculate Later Finish and Late STart Values using Backward pass
LS = LF - DUR + 1, LF on previous activities is least LS - 1.

I sent an e-mail out to the study group detailing my hours worth of review. Maybe you will benefit from that.

Calculate FLOAT
F = LS - ES (also called SLACK)

The following review is RITA's PROCESS CHART
(recommend strongly that you know this, it will help with your sense of understanding all the KNOWLEDGE areas, integration with the Process areas).

INITIATION

Select PM
Identify Cultures, Existing Systems
Collect Processes, Procedures and lessons Learned
Divide Project into Phases
Select Stakeholders
Document Business Needs
Identify Business Objectives
Document Assumptions and Constraints
Develop Project Charter
Develop Preliminary Project Scope


PLANNING

Develop PM ‘how to plan’ documents
Determine Team
Develop Project Scope
Develop WBS and WBS dictionary
Develop Activity List
Develop Network Diagram
Estimate Resources
Estimate Time and Cost
Develop Critical Path
Develop Schedule
Develop Budget
Determine Quality, Assurance, Monitor and Control (Metrics)
Determine Roles and Responsibilities
Develop Communications Plan
Develop Risk Management plan (Quantitative, Qualitative, monitor and control)
Iterations – GO BACK
Identify what to purchase
Develop Procurement documents
Develop ‘how to execute and control’ plans
Create Process Improvement plans
Develop final PM plan and performance measurement documents
Gain final approval
Hold Kick off Meeting

EXECUTING

Acquire
Work to produce product scope
Recommend changes, defect repair, preventive and corrective action
Send/Receive communications
Implemented approved changes, defect repairs, preventive and corrective action
Continuous process improvement
Follow processes
Team Building
Give recognitions and rewards
Hold Progress meetings
Use Work Authorization
Request Seller responses
Select Seller


MONITORING AND CONTROL

Measure according to PM plans
Measure according to performance baselines
Determine variances
Scope Verification
Configuration Management
Recommend changes, defect, preventative and corrective Actions
Integrated Change Control
Approve Changes, defect, preventative and corrective Actions
Risk audits
Manage Reserves
Issue Logs
Facilitate Conflict Resolution
Measure Performance
Report on Performance
Forecasts
Administer Contracts


CLOSING

Develop Closing Procedures
Complete Contract closures
Confirm Work is done to requirements - Verify product scope requirements
Gain Formal Acceptance
Final Performance reporting
Index and Archive records
Document Lessons Learned
Hand off completed product
Release resources

Thursday, March 6, 2008

Mid-point Review

The mid-point review consists of:

The PMP and the exam; preparing for it (a review); and signing up!
1. I put that first because it is important to commit. What are your intentions?

The Framework of Project Management
I took a review class, my first PMP review - I have to tell you, I did not know what I was getting myself into - sometimes (alot of times) I walk into these things - totally blind. The class made no sense to me. Why was I doing Project Management and what does PMBOK have to do with it. 5 processes and 9 knowledge areas? What does 44 activities have to do with it and what about 'integration'? Now that I am wiser, this makes absolute sense to me. I may not know it all, but I understand what it is about, it's purpose, and I know the goal.

The Framework:
From the American heritage Dictionary, Framework definition:
  1. A structure for supporting or enclosing something else, especially a skeletal support used as the basis for something being constructed.
  2. An external work platform; a scaffold.
  3. A fundamental structure, as for a written work.
  4. A set of assumptions, concepts, values, and practices that constitutes a way of viewing reality.

I highlighted my favorite definitions. The Framework, as I know it to be in the PMP - PMBOK-3 definition - it is a structure to define the Project Management set up - the roof and the foundation, the Processes and the nine knowledge areas.

The five processes are:

Initiating, Planning, Executing, Monitoring & Controlling, Closing

In every Knowledge area of Project Management - it touches one or more of the five processes - some will involve all 5 processes, some only two. The 9 knowledge areas are:

(using this tip to remember:

I saw the car quickly hit Chris's rear plate....

Integration Management

Scope Management

Time Management

Cost Management

Quality Management

HR Management

Communications Management

Risk Management

Procurement Management

The 44 activities are inside the framework and touch both a knowledge area (only one) and touches a process area (at least one, sometimes all 5 process areas).

The Framework must be understood, not memorized, but understood well. The process and knowledge areas will become very, very familiar as we progress forward in the PMBOK studies.

I use this blog to talk to myself, so - here is RITA's PROCESS CHART (my test to myself) - if you are listening, MEMORIZE THIS!!!

INITIATION

Select project Manager, Determine Company Culture and existing Systems, Collect processes, procedures and historical information, Divide project into phases, identify stakeholders, Determine Business Needs, Document Project Objectives, Document Assumptions and Constraints, Develop Project Charter, Develop Preliminary Scope Statement

PLANNING

Define plans on how to plan, part of PM plans;

I will update this later... Do you know the rest of the process chart?