ࡱ> ,%`  bjbjٕ 4Q ?  8ll =<1 A A A A A"d,p<======$7?hA$=- { A A{{$= A AQ=ccc{ A A<c{<cc0 j A ̝_d "2:g=0=ABHABHjjx/AB PfX cغ|T'fff$=$= Xfff={{{{ &1 1  PMP: Project Management Professional Study Guideby HYPERLINK "http://www.books24x7.com/book/id_3964/search.asp?qdom=author&scol=%7ball%7d&qstr=Kim%20Heldman" Kim Heldman HYPERLINK "http://www.books24x7.com/books.asp?imprintid=6" \t "_parent" Sybex 2002 Chapter 1: What Is a Project? Overview Congratulations on your decision to study for and take the Project Management Institute (PMI)s Project Management Professional (PMP) certification exam. This book was written with you in mind. The focus and content of this book revolve heavily around the information contained in A Guide to the Project Management Body of Knowledge (PMBOK). I will refer to the Guide to the PMBOK throughout this book and elaborate on those areas that appear on the test. Keep in mind that the test covers all the project management processes, so dont skip anything in your study time. When possible, Ill pass on hints and study tips that I collected while studying for the exam myself. Your first tip is to familiarize yourself with the terminology used in the Guide to the PMBOK. PMI has worked hard to develop and define standard project management terms, and these terms are used interchangeably among industries. For example, resource planning means the same thing to someone working in construction, information technology, or telecommunications. Youll find Guide to the PMBOK terms explained throughout this book. Even if you are an experienced project manager, you might find that PMI uses specific terms for things that you call by another name. So, step one is to get familiar with the terminology. This chapter lays the foundation for building and managing your project. Well address project and project management definitions as well as organizational structures. Good luck! Is It a Project? The VP of marketing approaches you with a fabulous idea. Fabulous because hes the big boss and because he thought it up. He wants to set up kiosks in local grocery stores as mini offices. These offices will offer customers the ability to sign up for new wireless phone services, make their wireless phone bill payments, and purchase equipment and accessories. He believes that the exposure in grocery stores will increase awareness of the companys offerings. After all, everyone has to eat, right? He told you that the board of directors has already cleared the project and hell dedicate as many resources to this as he can. He wants the new kiosks in place in 12 stores by the end of next year. The best news is hes assigned you to head up this project. Your first question should be, Is it a project? This may seem elementary, but confusing projects with ongoing operations happens often. According to the Guide to the PMBOK, page 4, a project is a temporary endeavor undertaken to create a unique product, service or result. NoteQuotations from the Guide to the PMBOK are cited in the text with the following abbreviation: Guide to the PMBOK: Project Management Institute, A Guide to the Project Management Body of Knowledge (PMBOK Guide) 2000 Edition, Project Management Institute, Inc., 2000.Projects are temporary in nature, while operations are ongoing. Projects have definitive start dates and definitive end dates. The project is completed when the goals and objectives of the project are accomplished. Sometimes projects end when its determined that the goals and objectives cannot be accomplished and the project is canceled. Operations involve work that is continuous without an ending date and often repeat the same process. Projects exist to bring about a product or service that hasnt existed before. In this sense, a project is unique. However, dont get confused by the term unique. For example, Ford Motor Company is in the business of designing and assembling cars. Each model that Ford designs and produces can be considered a project. The models differ from each other in their features and are marketed to people with various needs. An SUV serves a different purpose and clientele than a luxury model. The design and marketing of these two models are unique projects. The actual assembly of the cars can be considered an operationa repetitive process that is followed for most makes and models. Determining the characteristics and features of the different car models is carried out through what the Guide to the PMBOK terms as progressive elaboration. This means throughout the project, specific incremental steps are taken to examine the needs and requirements of the product of the project (the SUV, for example) and to fulfill the objectives. These needs are examined in detail and continually monitored and updated throughout the project. A project is successful when it meets or exceeds the expectations of the stakeholders. Stakeholders are those folks with a vested interest in your project. They are the people who have something to either gain or lose as a result of the project. The project sponsor, generally an executive in the organization with the authority to assign resources and enforce decisions regarding the project, is a stakeholder. The customer is a stakeholder as are contractors and suppliers. The project manager and the managers from other departments in the organization are stakeholders as well. Its important to identify all the stakeholders in your project up front. If you leave out an important stakeholder or their departments function and dont discover the error until well into the project, it could be a project killer.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=101512121" \l "figure.2CB6987D-A21D-4C5E-AC1A-6565ED961001488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#figure.2CB6987D-A21D-4C5E-AC1A-6565ED961001488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" Figure 1.1 shows a sample listing of the kinds of stakeholders involved on a typical project.  HYPERLINK "javascript:PopImage('IMG_3','http://images.books24x7.com/bookimages/id_3964/f0101_0.jpg','658','500')" \t "_self"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/f0101.jpg" \* MERGEFORMATINET  Figure 1.1: Project stakeholders Many times, stakeholders have conflicting interests. Its the project managers responsibility to understand these conflicts, and try to resolve them. Be certain to identify and meet with all key stakeholders early in the project to understand all their needs and constraints. When in doubt, stakeholder conflicts should always be resolved in favor of the customer. Weve just learned that a project has several characteristics: Projects are unique. Projects are temporary in nature and have a definite beginning and ending date. Projects are completed when the project goals are achieved. A successful project is one that meets or exceeds the expectations of your stakeholders. Using these criteria, lets examine the assignment from the VP of marketing to determine if it is a project: Is it unique?Yes, because the kiosks dont exist in the local grocery stores. This is a new way of offering the companys services to its customer base. While the service the company is offering isnt new, the way they are presenting their services is. Does the project have a limited time frame?Yes, the start date of this project is today, and the end date is the end of next year. It is a temporary endeavor. Is there a way to determine when the project is completed?Yes, the kiosks will be installed, and services will be offered from them. Once all of the kiosks are intact and operating, the project will come to a close. Is there a way to determine stakeholder satisfaction?Yes, the expectations of the stakeholders will be documented in the form of requirements during the planning processes. These requirements will be compared to the finished product to determine if it meets the expectations of the stakeholder. Houston, we have a project. What Is Project Management? Youve determined that you indeed have a project. What now? The notes you scratched out on the back of a napkin at coffee break might get you started, but thats not exactly good project management practice. We have all witnessed this scenarioan assignment is made and the project team jumps directly into the project, busying themselves with building the product or service requested. Often, careful thought is not given to the project-planning process. Im sure youve heard co-workers toss around statements like, That would be a waste of valuable time or Why plan when you can just start building? Project progress is rarely measured against the customer requirements. In the end, the delivered product or service doesnt meet the expectations of the customer! This is a frustrating experience for all those involved. Unfortunately, many projects follow this poorly constructed path. Project management is a process that involves several things including planning, putting the project plan into action, and measuring progress and performance. Planning is one of the most important functions youll perform during the course of a project. It sets the standard for the rest of the projects life and is used to track future project performance. Before we begin the planning process, well need to look at some of the skills needed to perform project management functions and some of the constraints found on all projects. Project Constraints In my organization, and Im sure the same is true in yours, there are far more project requests than we have resources to work on them. In this case, resources are a constraint. Youll find a similar phenomenon occurs on individual projects as well. Every project must work within the triple constraint combination of time, money, and quality. One or two of the triple constraints, sometimes all three, are limited. You might work on projects where you have an almost unlimited budget (dont we wish), but time is the limitation. You can have all the money and people you need to accomplish your project, but you need to complete the project in 24 months. The computer-programming changes required for the year 2000 are an example of a time-constrained project because moving the date wasnt an option. Other projects might present the opposite scenario. You have all the time you need to complete the project, but the budget is fixed. Still other projects may incorporate two or three of the constraints. Government agencies are notorious for starting projects that have at least two and sometimes all three constraints. For example, new tax law legislation is passed that impacts the computer programming, requiring new programs to calculate and track the tax changes. Typically, a due date is given when the tax law takes effect, and the organization responsible is required to implement the changes with no additions to budget or staff. In other words, they are told to use existing resources to accomplish the goals of the project. The specific requirements of the project are such that quality cannot be fudged to try to meet the time deadline. As a project manager, one of your biggest jobs is to balance the triple constraints while meeting or exceeding the expectations of your stakeholders. In most projects, you will usually be faced with balancing only one or two of the triple constraints. For example, if the project goal is a high-quality pro-duct, the saying goes, I can give it to you fast or I can give to you cheap, but I cant give it to you fast and cheap. Tools and Techniques Project management brings together a set of tools and techniques, performed by people, to describe, organize, and monitor the work of project activities. Project managers are the people responsible for managing the project processes and applying the tools and techniques used to carry out the project activities. There are many advantages to organizing projects and teams who utilize these techniques. Well be examining these advantages in-depth throughout the remainder of this book. Programs are groups of projects that are managed using the same techniques in a coordinated fashion. Sometimes, programs include aspects of ongoing operations as well. This would be the case where a very large program exists with many subprojects under itfor example, building a new shopping mall. Many subprojects exist underneath this program such as excavation, construction, interior design, store placement, marketing, facilities management, etc. Each of the subprojects is really a project unto itself. Each has its own project manager, who reports to a project manager with responsibility over several of the areas, who in turn reports to the head project manager over the entire program. After the structure itself is built, the management of the facility is considered the ongoing operations part of this program. Project management involves many skills and techniques. According to the Guide to the PMBOK, page 6, Project management is the application of knowledge, skills, tools, and techniques to project activities to meet project requirements. It is the responsibility of the project manager to ensure project management techniques are applied and followed.  INCLUDEPICTURE "http://www.books24x7.com/images/_.gif" \* MERGEFORMATINET  Defining Skills Every Good Project Manager Needs Many times, organizations will knight their technical experts as project managers. The skill and expertise that made them stars in their technical fields are mistakenly thought to translate into project management skills. This is not necessarily so. Project managers are generalists with many skills in their repertoire. They are problem solvers who wear many hats. Project managers might indeed possess technical skills, but technical skills are not a prerequisite to project management. Your project team will have technical experts, and they are the people whom the project manager will rely on for technical details. I have seen project managers with many years experience in the construction industry successfully manage multi-million dollar information technology projects. This is because project management techniques apply across industries and across projects. Understanding and applying good project management techniques, along with a solid understanding of general management skills, are career builders for all aspiring project managers. Project Managers Tool Bag Project managers have been likened to small-business owners. They need to know a little bit about every aspect of management. The various skills in a project managers tool bag can be broken out in a more or less declining scale of importance. Lets discuss each of the skills in a bit more detail. Communication Skills One of the single most important characteristics of a first-rate project manager is excellent communication skills. Written and oral communications are the backbone of all successful projects. Many forms of communication will exist during the life of your project. As the creator or manager of most of the project communication (project documents, meeting updates, status reports, etc.), its your job to ensure that the information is explicit, clear, and complete so that your audience will have no trouble understanding what has been communicated. Once the information has been distributed, it is the responsibility of the person receiving the information to make sure they understand it. NoteThere are many forms of communication and communication styles, which we will cover in more depth in  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=491" \l "491" \t "_parent" Chapter 8, Developing the Project Team.Organizational Skills Organizational and planning skills are probably the second most important skills a project manager can possess. Organization takes on many forms. As project manager, youll have project documentation, requirements information, memos, project reports, personnel records, vendor quotes, contracts, and much more to track and be able to locate in a moments notice. You will also have to organize meetings, put together teams, and perhaps manage and organize media release schedules depending on your project. Closely associated with organizational skills are time management skills. Take some time to attend a time management class if youve never attended one. They have some great tips and techniques to help you prioritize problems and interruptions, prioritize your day, and manage your time. Planning is discussed extensively throughout the course of this book. There isnt any aspect of project management that doesnt first involve planning. Planning skills go hand in hand with organizational skills. Combining these two with excellent communication skills is almost a sure guarantee of your success in the project management field. Budgeting Skills Project managers establish and manage budgets and therefore need some knowledge of finance and accounting principles. Especially important in this skill area is the ability to perform cost estimates for project budgeting. There are different methods available to determine the project costs. They range from estimating individual activities and rolling the estimates up, to estimating the projects cost in one big chunk. These methods will be discussed more fully in later chapters. After a budget is determined, you can start spending. This sounds more exciting than it actually is. Reading and understanding vendor quotes, preparing or overseeing purchase orders, and reconciling invoices are budgeting skills that will be used by the project manager on most projects. These costs will be linked back to project activities and expense items in the projects budget. Problem Solving Show me a project and Ill show you problems. All projects, in fact much of everyday life, have some problems. Isnt that what they say builds character? But I digress. Problem solving is really a twofold process. First, you must define the problem. Often when defining problems, we end up just describing the symptoms instead of really getting to the heart of what the problem is. To avoid that, ask yourself questions like, Is it an internal or external problem? or Is it a technical problem? or Are there interpersonal problems between team members? Is it managerial? These kinds of questions will help you to get to the meat of the problem. Next, after the problem has been defined, you have some decisions to make. It will take a little time to examine and analyze the problem, the situation causing it, and the solution alternatives available. After this analysis, the project manager will determine the best course of action to take and implement the decision. Negotiation and Influencing Effective problem solving requires negotiation and influencing skills. We all utilize negotiation skills in one form or another every day. For example, on a nightly basis I am asked, Honey, what do you want for dinner? Then the negotiations begin, and the fried chicken versus swordfish discussion commences. Simply put, negotiating is working with others to come to agreement. Negotiation on projects will be necessary in almost every area from scope definition, to budgets, contracts, resource assignments, and more. Influencing is really convincing the other party that swordfish is a better choice than fried chicken even if that is what they want. In other words, its the ability to get people to do things they wouldnt do otherwise. Its also the ability to change minds and the course of events, and to influence outcomes. These skills will be utilized in all areas of project management. Start practicing now because, guaranteed, youll need these skills on your next project. Leading Leadership and management are not synonymous terms. Leaders impart vision, gain consensus for strategic goals, establish direction, and inspire and motivate others. Managers focus on results and are concerned with getting the job done according to the requirements. Even though leaders and managers are not the same, project managers must exhibit the characteristics of both during different times on the project. Understanding when to switch from leadership to management and then back again is a finely tuned and necessary talent. Team Building and Human Resources Project managers will rely heavily on team building and human resource management skills. Teams are often formed with people from different parts of the organization. These people may or may not have worked together beforeso there may be some component of team-building groundwork that will involve the project manager. The project manager will set the tone for the project team and will help them work through the various team-forming stages to become fully functional. The project manager may take on a variety of roles during this initial team-building process. An interesting caveat to the team-building role is that project managers many times are responsible for motivating team members who are not their direct reports. This has its own set of challenges and dilemmas. One way to help this situation is to ask the functional manager to allow you to participate in your project team members performance reviews. Use the negotiation and influencing skills I talked about earlier to make sure youre part of this process. A Mile Wide and an Inch Deep Project managers are an interesting bunch. They know a little bit about a lot of things and are excellent communicators. Or, as one person said, hes a mile wide and an inch deep. They have the ability to motivate people, even those who have no reason to be loyal to the project, and they can make the hard-line calls when necessary. Project managers can get caught in sticky situations that occasionally require making decisions that are good for the company (or the customer) but arent good for certain stakeholders. These offended stakeholders will then drag their feet, and the project manager has to play the heavy in order to motivate and gain their cooperation again. Some organizations hire contract project managers to run their large, company-altering projects just because they dont want to burn out a key employee in this role. Fortunately, that doesnt happen often. Now that youve been properly introduced to some of the skills you need in your tool kit, youll know to be prepared to communicate, solve problems, lead, and negotiate your way through your next project. Understanding Organizational Structures Just as projects are unique, so are the organizations in which theyre carried out. The key to determining the type of organization you work in is by measuring how much authority senior management is willing to delegate to project managers. While uniqueness abounds in business cultures, all organizations are structured in one of three ways: functional, projectized, or matrix. Variations and combinations exist among these three structures, such as a projectized structure within a functional organization, and weak matrix, balanced matrix, and strong matrix organizations. It pays to know and understand the organizational structure and the culture of the entity youre working with. Companies with aggressive cultures that are comfortable in a leading-edge position within their industry are highly likely to take on risky projects. Project managers who are willing to suggest new ideas and projects that have never been undertaken before are likely to receive a warm reception in this kind of environment. Conversely, organizational cultures that are risk averse and prefer the follow-the-leader position within their industry are highly unlikely to take on risky endeavors. Project managers with risk-inclined, aggressive styles are likely to receive a cool reception in a culture like this. The level of authority the project manager enjoys is denoted by the organizational structure. For example, a project manager within a functional organization has little to no formal authority. And their title may not be project manager, but instead theyre called a project leader, project coordinator, or perhaps project expeditor. Lets take a look at each of these organizations individually to better understand how the project management role works in each one. Functional Organizations The most common type of organization is the functional organization. Chances are you work in this type of organization. This is probably the oldest style of organization and is therefore known as the traditional approach to organizing businesses. Functional organizations are centered on specialties and grouped by function; hence the term functional organization. As an example, the organization might have a human resources department, finance department, marketing department, etc. The work in these departments is specialized and requires people who have the skills sets and experiences in these specialized functions to perform specific duties for the department.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=795456959" \l "figure.985216BD-EE20-4F44-B0CA-4E4EFBCEBCE6488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#figure.985216BD-EE20-4F44-B0CA-4E4EFBCEBCE6488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" Figure 1.2 shows a typical org chart for a functional organization.  HYPERLINK "javascript:PopImage('IMG_4','http://images.books24x7.com/bookimages/id_3964/f0102_0.jpg','557','334')" \t "_self"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/f0102.jpg" \* MERGEFORMATINET  Figure 1.2: Functional org chart You can see that this type of organization is set up to be a hierarchy. Staff personnel report to managers who report to department heads who report to vice presidents who report to the CEO. In other words, each employee reports to only one manager, and ultimately, one person at the top is in charge. Many companies today, as well as governmental agencies, are structured in a hierarchical fashion. In organizations like this, be aware of the chain of command. A strict chain of command may exist, and the corporate culture might dictate that you follow it. Roughly translated: Dont talk to the big boss without first talking to your boss who talks to their boss who talks to the big boss. Wise project managers should determine if there is a chain of command, how strictly its enforced, and how the chain is linked before venturing outside of it. Each department or group in a functional organization is managed independently and has a limited span of control. Marketing doesnt run the finance department or their projects, for example. The marketing department is concerned with their own functions and projects. If it were necessary for the marketing department to get input from the finance department on a project, the marketing team members would follow the chain of command. A marketing manager would speak to a manager in finance to get the needed information and then pass it back down to the project team. Commonalities exist among the personnel assigned to the various departments in a functional organization. In theory, people with similar skills and experiences are easier to manage as a group. Instead of scattering them throughout the organization, it is more efficient to keep them functioning together. Work assignments are easily distributed to those who are best suited for the task when everyone with the same skill works together. Along these lines, workers in functional organizations specialize in an area of expertise finance, for instanceand then become very good at their specialty. Usually, the supervisors and managers of these workers are experienced in the area they supervise and are able to recommend training and career enrichment activities for their employees. There is a clear upward career path for people in a functional organization. An assistant budget analyst may be promoted to a budget analyst and then eventually to a department manager over many budget analysts. Functional organizations have their disadvantages. If this is the kind of organization you work in, you probably have experienced some of them. One of the greatest disadvantages for the project manager is that they have little to no formal authority. This does not mean that project mana-gers in functional organizations are doomed to failure. Many projects are undertaken and successfully completed within this type of organization. Good communication, interpersonal, and influencing skills on the part of the project manager are required to bring about a successful project under this structure. In a functional organization, the vice president or senior department manager is usually the one responsible for projects. The title of project manager denotes authority, and in a functional structure, that authority rests with the VP. Projects are typically undertaken in a divided approach in a functional organization. For example, the marketing department will work on their portion of the project and then hand it off to the manufacturing department to complete their part of the project and so on. The work the marketing department does is considered a marketing project, while the work the manu-facturing department does is considered a manufacturing project. Some projects require project team members from different departments to work together at the same time on various aspects of the project. Project team members in this structure will more than likely remain loyal to their functional manager. The functional manager is responsible for their performance reviews, and their career opportunities lie within the functional departmentnot within the project team. Exhibiting leadership skills by forming a common vision regarding the project and the ability to motivate people to work toward that vision are great skills to exercise in this situation. As previously mentioned, it also doesnt hurt to have the project manager work with the functional manager in contributing to the employees performance review. Competition for resources and project priorities can become fierce when multiple projects are undertaken within a functional organization. For example, in my organization, its common to have competing project requests from three or more departments all vying for the same resources. Thrown into the heap is the requirement to make mandated tax law changes, which automatically usurps all other priorities. This sometimes causes frustration and political infighting. One department thinks their project is more important than another and will do anything to get that project pushed ahead of the others. Again, it takes great skill and diplomatic abilities to keep projects on track and functioning smoothly. In a later chapter, well discuss the importance of gaining stakeholder buy-in, prioritization, and communication distribution to avert some of these problems. Functional organizations are the most common form of organization. Project managers have little authority in these organizations, but with the right skills, they can successfully accomplish many projects.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=795456959" \l "wbpch01T1P1488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#wbpch01T1P1488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" Table 1.1 highlights the advantages and disadvantages of this type of organization. Table 1.1: Functional Organizations AdvantagesDisadvantagesEnduring organizational structure.Project manager has little to no formal authority.Clear career path with separation of functions allowing specialty skills to flourish.Multiple projects compete for limited resources and priority.Employees have one supervisor with a clear chain of command.Project team members are loyal to the functional manager.Projectized Organizations Projectized organizations are nearly the opposite of functional organizations. The focus of this type of organization is the project itself. The idea behind a projectized organization is to develop loyalty to the project, not to a functional manager.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=795456959" \l "figure.31F681FD-AE38-4FA9-92E5-D6087057A101488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#figure.31F681FD-AE38-4FA9-92E5-D6087057A101488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" Figure 1.3 shows a typical org chart for a projectized organization.  HYPERLINK "javascript:PopImage('IMG_5','http://images.books24x7.com/bookimages/id_3964/f0103_0.jpg','556','304')" \t "_self"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/f0103.jpg" \* MERGEFORMATINET  Figure 1.3: Projectized org chart Organizational resources are dedicated to projects and project work in purely projectized organizations. Project managers almost always have ultimate authority over the project in this structure and report directly to the CEO. In a purely projectized organization, supporting departments like human resources and accounting might report directly to the project manager as well. Project managers are responsible for making decisions regarding the project and acquiring and assigning resources. They have the authority to choose and assign resources from other areas in the organization or to hire them from outside if needed. However, project managers in all organizational structures are limited by the triple constraints. For example, if the budget doesnt exist to hire additional resources, the project manager will have to come up with alternatives to solve this problem. Teams are formed and often collocated, which means that team members physically work at the same location. Project team members report to the project manager, not a functional or departmental manager. One obvious drawback to a projectized organization is that project team members may find themselves out of work at the end of the project. An example of this might be a consultant who works on a project until completion and then is put on the bench or let go at the end of the project. Some inefficiency exists in this kind of organization when it comes to resource utilization. If you have a situation where you need a highly specialized skill at certain times throughout the project, the resource youre using to perform this function might be idle during other times in the project.  INCLUDEPICTURE "http://www.books24x7.com/book/id_3964/_.gif" \* MERGEFORMATINET The Real World ScenarioThe Projectized Graphic Artist Youve been appointed project manager for your companys website design and implementation. Youre working in a projectized organization, so you have the authority to acquire and assign resources. You put together your team including programmers, technical writers, testers, and business analysts. Debbie, a highly qualified graphic arts designer, is also part of your team. Debbies specialized graphic arts skills are needed only at certain times throughout the project. When she has completed the graphics design portion of the screen shes working on, there isnt anything else for her to do until the next page is ready. Depending on how involved the project is and how the work is structured, days or weeks might pass before Debbies skills are needed. This is where the inefficiency occurs in a purely projectized organization. The project manager will have to find other duties that Debbie can perform during these downtimes. Its not practical to let her go and then hire her back when shes needed again. In this situation, you might assign Debbie to other project duties when shes not working on graphics design. Perhaps she can edit the text for the web pages or assist with the design of the upcoming marketing campaign. You might also share Debbies time with another project manager in the organization. During the planning process, you will discover the skills and abilities of all your team members so that you can plan their schedule accordingly and eliminate idle time.  INCLUDEPICTURE "http://www.books24x7.com/book/id_3964/_.gif" \* MERGEFORMATINET Projectized structures can coexist within functional organizations. In the case of a high-profile, critical project, for instance, the functional organization might appoint a special project team to work only on that project. The team is structured outside the bounds of the functional organization, and the project manager has ultimate authority for the project. This is a workable project management approach and ensures open communication between project manager and team members. At the end of the project, the project team is dissolved, and the project members return to their functional areas to resume their usual duties. In summary, projectized organizations are identified several ways: Project managers have ultimate authority over the project. The focus of the organization is the project. The organizations resources are focused on projects and project work. Team members are collocated. Loyalties are formed to the project, not to a functional manager. Matrix Organizations Matrix organizations came about to minimize the differences between, and take advantage of, the strengths and weaknesses of functional and projectized organizations. The idea at play here is that the best of both organizational structures can be realized by combining them into one. The project objectives are fulfilled, and good project management techniques are utilized while still maintaining a hierarchical structure in the organization. Employees in a matrix organization report to one functional manager and at least one project manager. Its possible that employees could report to multiple project managers if they are working on multiple projects at one time. Functional managers pick up the administrative portion of the duties and assign employees to projects. They also monitor the work of their employees on the various projects. Project managers are responsible for executing the project and giving out work assignments based on project activities. Project managers and functional managers share the responsibility of performance reviews for the employee. In a nutshell, functional managers assign employees to projects, while project managers assign tasks associated with the project. Matrix organizations allow project managers to focus on the project and project work just like in a projectized organization. The project team is free to focus on the project objectives without distractions from the functional department. Project managers should take care when working up activity and project estimates for the project in a matrix organization. The estimates should be given to the functional managers for input before publishing. The functional manager is the one in charge of assigning or freeing up resources to work on projects. If the project manager is counting on a certain employee to work on the project at a certain time, the project manager should determine their availability up front with the functional manager. Project estimates might have to be modified if its discovered that the employee they were counting on is not available when needed. As weve discussed, a lot of communication and negotiation takes place between the project manager and the functional manager. This calls for a balance of power between the two, or one will dominate the other. In a strong matrix organization, the balance of power rests with the project manager. They have the ability to strong-arm the functional managers into giving up their best resources for projects. Sometimes, more resources than necessary are assembled for the project, and then project managers negotiate these resources among themselves, cutting out the functional manager altogether, as you can see in  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=795456959" \l "figure.5897F7BC-38EC-4A2C-A63C-705FB85AE62B488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#figure.5897F7BC-38EC-4A2C-A63C-705FB85AE62B488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" Figure 1.4.  HYPERLINK "javascript:PopImage('IMG_6','http://images.books24x7.com/bookimages/id_3964/f0104_0.jpg','558','346')" \t "_self"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/f0104.jpg" \* MERGEFORMATINET  Figure 1.4: Strong matrix org chart On the other end of the spectrum is the weak matrix (see  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=795456959" \l "figure.8049FB50-3AA7-48EB-BCBC-E4155E0DB72A488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#figure.8049FB50-3AA7-48EB-BCBC-E4155E0DB72A488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" Figure 1.5). As you would suspect, the functional managers have all the power in this structure. Project managers are really project coordinators or expeditors with part-time responsibilities on projects in a weak matrix organization. Project managers have little to no authority, just like in the functional organization. On the other hand, the functional managers have a lot of authority and make all the work assignments. The project manager simply expedites the project.  HYPERLINK "javascript:PopImage('IMG_7','http://images.books24x7.com/bookimages/id_3964/f0105_0.jpg','566','334')" \t "_self"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/f0105.jpg" \* MERGEFORMATINET  Figure 1.5: Weak matrix org chart In between the weak matrix and the strong matrix is an organizational structure called the balanced matrix (see  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=795456959" \l "figure.DE159E10-322F-47DB-8D7D-5EFD496FED67488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#figure.DE159E10-322F-47DB-8D7D-5EFD496FED67488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" Figure 1.6). The features of the balanced matrix are what weve been discussing throughout this section. The power is balanced between project managers and functional managers. Each manager has responsibility for their parts of the project or organization, and employees get assigned to projects based on the needs of the project, not the strength or weakness of the managers position.  HYPERLINK "javascript:PopImage('IMG_8','http://images.books24x7.com/bookimages/id_3964/f0106_0.jpg','557','334')" \t "_self"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/f0106.jpg" \* MERGEFORMATINET  Figure 1.6: Balanced matrix org chart Matrix organizations have subtle differences, and its important to understand their differences for the exam. The easiest way to remember them is that the weak matrix has many of the same characteristics as the functional organization, while the strong matrix has many of the same characteristics as the projectized organization. The balanced matrix is exactly thata balance between weak and strong where the project manager shares authority and responsibility with the functional manager.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=795456959" \l "wbpch01T2P2488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#wbpch01T2P2488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" Table 1.2 compares all three structures. Table 1.2: Comparing Matrix Structures Weak Matrix Balanced Matrix Strong Matrix Project Managers Title: Project coordinator, project leader, or project expeditorProject managerProject managerProject Managers Focus: Split focus between project and functional responsibilitiesProjects and project work Projects and project workProject Managers Power: Minimal authority and powerBalance of authority and powerFull authority and powerProject Managers Time: Part time on projectsFull time on projectsFull time on projectsOrganization Style: Most like functional organizationBlend of both weak and strong matrixMost like a projectized organizationProject Manager Reports to: Functional managerA functional manager, but shares authority and powerManager of project managersMost organizations today use some combination of the organizational structures described here. Its rare that an organization would be purely functional or purely projectized. For example, the functional organization will often use a projectized environment for critical projects, while keeping the hierarchical activities of the organization intact. Organizations are unique, as are the projects they undertake. Understanding the organizational structure will help you, as a project manager, with the cultural influences and communication avenues that exist in the organization to gain cooperation and successfully bring your projects to a close. Understanding Project Life Cycles and Project Management Processes Project life cycles are similar to the life cycle that parents experience raising their children to adulthood. Children start out as infants and generate lots of excitement wherever they go. However, not much is known about them at first. So we study them as they grow and assess their needs. Over time, they mature and grow (and cost a lot of money in the process), until one day the parents job is done. Projects start out just like this and progress along a similar path. Someone comes up with a great idea for a project and actively solicits support for the project. The project, after being approved, progresses through the intermediate phases to the ending phase, where the project is completed and closed out. Project Life Cycles and Phases All projects are divided into phases, and all projects, large or small, have a similar life cycle structure. At a minimum, a project will have a beginning or initiation phase, an intermediate phase or phases, and an ending phase. The number of phases depends on the project complexity and its industry. All the collective phases the project progresses through in concert are called the project life cycle. The end of each phase allows the project manager, stakeholders, and project sponsor the opportunity to determine if the project should continue to the next phase. Project phases evolve through the life cycle in a series of handoffs. The end of one phase typically marks the beginning of the next. For example, in the construction industry, feasibility studies often take place in the beginning phase of a project. The purpose of the feasibility study might be to determine if the project is worth undertaking and whether the project will be profitable for the construction company. The completion and approval of the feasibility study trigger the beginning of the planning and design phase. You will recognize phase completion because each phase has a specific deliverable, or multiple deliverables, that marks the end of the phase. A deliverable is an output that must be produced to bring the phase or project to completion. Deliverables are tangible and can be measured and easily proved. For instance, a hypothetical deliverable produced in the beginning phase of our construction industry example would be the feasibility study. Deliverables might also include things like design documents, project budgets, blueprints, project schedules, prototypes, etc. This analysis allows those involved the opportunity to determine if the project should continue to the next phase. The feasibility study might show that environmental impacts of an enormous nature would result if the construction project were undertaken at the proposed location. Based on this information, a go or no-go decision can be made at the end of this phase. The end of a phase also gives the project manager the ability to discover, address, and take corrective action against errors discovered during the phase. There are times when phases are overlapped to shorten or compress the project schedule. The Guide to the PMBOK terms this fast tracking. Fast tracking means that a later phase is started prior to completing and approving the phase, or phases, that come before it. All projects follow the life cycle pattern and, as a result, have the following things in common. In the beginning phase, which is where the Initiation process occurs, costs are low, and there are few team members assigned to the project. As the project progresses, costs and staffing increases and then tapers off at the closing phase. The potential that the project will come to a successful ending is lowest at the beginning of the project with an increasing chance for success as the project progresses through the life cycle stages. Risk is highest at the beginning of the project and gradually decreases the closer the project comes to completion. And stakeholders have the greatest chance of influencing the project in the beginning phases and less and less influence as the project progresses. To give you a better idea of when certain characteristics influence a project, refer to  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=155863556" \l "wbpch01T3P3488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#wbpch01T3P3488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" Table 1.3. A recap of the impacts in the beginning life cycle phase is shown here. Table 1.3: Characteristics of the Initiation Process Low Impact/ProbabilityHigh Impact/ProbabilityCostsRiskStaffing levelsStakeholder influenceChance for successful completionProject Management Processes Project management processes, according to the Guide to the PMBOK, organize and describe the work of the project. These processes are performed by people and, much like the project phases, are interrelated and dependent on one another. For example, it would be difficult to identify specific project activities without first having an understanding of the project requirements. PMI Process Groups The Guide to the PMBOK documents five process groups in the project management process: Initiation, Planning, Executing, Controlling, and Closing. Well look at an overview of each process here and go into more detail in later chapters. Initiation The Initiation process, as its name implies, occurs at the beginning of the project or phase. Initiation acknowledges that a project, or the next project phase, should begin. Initiation grants the approval to commit the organizations resources to working on the project or phase. Planning Planning is the process of formulating and revising planning documents to be used throughout the remainder of the project. This process group is where the project requirements are fleshed out and stakeholders are identified. Planning has more processes than any of the other project management processes. The Executing, Controlling, and Closing process groups all rely on the Planning process group and the documentation produced during the Planning processes in order to carry out their functions. Project managers will perform frequent iterations of the Planning processes prior to project completion. Projects are unique, and as such have never been done before. Therefore, Planning must encompass all areas of project management and consider budgets, activity definition, scope planning, schedule development, risk identification, staff acquisition, procurement planning, and more. The greatest conflicts a project manger will encounter in this process group are project prioritization issues. Executing The Executing process group involves putting the project plans into action. Its here that the project manager will coordinate and direct project resources to meet the objectives of the project plan. The Executing process keeps the project plan on track and ensures that future execution of project plans stays in line with project objectives. The Executing process group will utilize the most project time and resources. Costs are usually highest during the Executing process. Project managers will experience the greatest conflicts over schedules in this phase. Controlling The Controlling process group is where project performance measurements are taken and analyzed to determine if the project is staying true to the project plan. If its discovered that variances exist, corrective action is taken to get the project activities aligned with the project plan. This might require additional passes through the Planning process to realign to the project objectives. Closing The Closing process group is probably the most often skipped process in project management. Once the project objectives have been met, most of us are ready to move on to the next project. However, Closing is important as all the project information is gathered now and stored for future reference. The documentation collected during Closing processes can be reviewed and utilized to avert potential problems on future projects. Contract closeout occurs here, and formal acceptance and approval are obtained from project stakeholders. The Process Flow The five process groups are iterative and should not be thought of as one-time processes. These processes will be revisited throughout the project life cycle several times as the project is refined. PMI calls this process of going back through the process groups an iterative process. The completion of each process allows the project manager and stakeholders to reexamine the business needs of the project and determine if the project is satisfying those needs. And it is another opportunity to make a go or no-go decision.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=155863556" \l "figure.A2952FDD-9520-4E96-9FE2-B3276191CF5A488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#figure.A2952FDD-9520-4E96-9FE2-B3276191CF5A488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" Figure 1.7 shows the five process groups in a typical project life cycle. Keep in mind that during phases of a project, the Closing phase can provide input to the Initiation phase. For example, once the feasibility study we discussed earlier is accepted or closed, it becomes input to the Initiation phase of design and planning.  HYPERLINK "javascript:PopImage('IMG_9','http://images.books24x7.com/bookimages/id_3964/f0107_0.jpg','402','403')" \t "_self"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/f0107.jpg" \* MERGEFORMATINET  Figure 1.7: Project management process groups Its important to understand the flow of these processes for the exam. If you remember the processes and their inputs and outputs, it will help you when youre trying to decipher an exam question. Sometimes just understanding which process the question is asking about will help you determine the answer. One trick you could use to memorize these processes is to remember syrup of ipecac. (You probably have some of this poison antidote in your medicine cabinet at home.) When you sound out the first initial of each of the processes, it sounds like ipecacIPECC (Initiation, Planning, Executing, Controlling, and Closing). Processes exist within most of the process groups. For example, the Closing life cycle process group consists of two processes, Contract Closeout and Administrative Closure. Each process takes inputs and uses them in conjunction with various tools and techniques to produce outputs. Its outside the scope of this book to list all the inputs, tools and techniques, and outputs for each process in each life cycle phase. Youll find these detailed in the Guide to the PMBOK, and I highly recommend you get familiar with them. There are test questions regarding inputs, tools and techniques, and outputs. One way to keep them all straight is to remember tools and techniques usually require action of some sort, be it measuring, applying some skill or technique, planning, or using expert judgment. Outputs are usually in the form of a deliverable. Remember that a deliverable is characterized with results or outcomes that can be measured, are tangible, and are provable. Last but not least, outputs from one process sometimes serve as inputs to another process. Establishing the Project Management Office The concept of a project management office, sometimes referred to as the PMO, has been around for several years. You wont need to know anything about PMOs for the exam. However, in practice, youll find many organizations are establishing PMOs in many different forms. The purposes of establishing a PMO, and its benefits, are many. The most common reason a company starts a project management office is to establish and maintain procedures and standards for project management methodologies to be used throughout the organization. In some organizations, project managers might work directly for the PMO and are assigned from this office to projects as they are initiated. The PMO, depending on its size and function, sometimes has experts available that assist project managers in project planning, estimating, and business assumption verification tasks. They serve as mentors to junior-level project managers and act as consultants to the senior project managers. The PMO takes responsibility for maintaining and archiving project documentation. All project documentation and information is collected and tracked by the PMO for future reference. This office compares project goals with project progress and gives feedback to the project teams. This office also measures the project performance of active projects and suggests corrective actions. The PMO evaluates completed projects for their adherence to the triple constraints and asks the following: Did the project meet the time frames established, did it stay within budget, and was the quality acceptable? Project management offices are becoming more common in organizations today, if for no other reason, simply to serve as a collection point for project documentation. Some PMOs are fairly sophisticated and prescribe the standards and methodologies to be used in all project phases across the enterprise. Still others provide all these functions and also offer project management consulting services. However, the establishment of a PMO is not required in order for you to apply good project management practices to your next project. Summary Phew, we covered a lot of ground in this chapter. We learned that projects exist to bring about a unique product or service. Projects are temporary in nature and have definite beginning and ending dates. Stakeholders are those people or organizations that have a vested interest in the outcome of the project. Stakeholders include people like the project sponsor, the customer, key management personnel, the project manager, contractors, suppliers, and more. Projects are considered complete when the project meets or exceeds the expectations of the stakeholders. Project management is a discipline that brings together a set of tools and techniques to describe, organize, and monitor the work of project activities. Project managers are the ones responsible for carrying out these activities. Every project must work within constraints. The primary constraints that will affect all projects are the triple constraints of budget, time, and quality. Project managers have a wide variety of skills. Not only should they be versed in the field theyre working in, but in general management skills as well. Communication is the most important skill a project manager will use in the course of a project. Organizational structures come in variations of three forms: functional, projectized, and matrix organizations. Functional organizations are traditional with hierarchical reporting structures. Project managers have little to no authority in this organization. Projectized organizations are structured around project work, and staff personnel report to project managers. Project managers have full authority in this organizational structure. Matrix organ-izations are a combination of the functional and projectized. A project managers authority varies depending on the structure of the matrix, be it a weak matrix, balanced matrix, or strong matrix. Projects progress along a life cycle path. The life cycle consists of phases, and the Guide to the PMBOK process groups are performed throughout the projects life cycle. The Guide to the PMBOK process groups are Initiation, Planning, Executing, Controlling, and Closing. Project management offices are a way to organize and establish standards for project management techniques within an organization. They can also serve as a project library, housing project documentation for future reference. Exam Essentials Be able to describe the difference between projects and operations.A project is temporary in nature with a definite beginning and ending date. Operations are ongoing. Be able to denote some of the skills every good project manager should possess.Communication, budgeting, organizational, problem solving, negotiation and influencing, leading, and team building. Be able to differentiate the different organizational structures.Organizations are usually structured in some combination of the following: functional, projectized, and matrix (including weak matrix, balanced matrix, and strong matrix). Be able to name the five project management processes.Initiation, Planning, Executing, Controlling, and Closing. Key Terms Weve learned a lot of new key words in this chapter. PMI has worked hard to develop and define standard project management terms that apply across industries. Here is a list of some of the terms we came across in this chapter: collocationproject life cycledeliverableproject managementfast trackingproject management office (PMO)functional organizationproject manageriterativeproject sponsormatrix organizationprojectized organizationprogramprojectprogressive elaborationstakeholder INCLUDEPICTURE "http://www.books24x7.com/images/_.gif" \* MERGEFORMATINET Review Questions 1. Which organization has set the de facto standards for project management techniques? PMBOK PMO PMI PMA HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=181317638" \l "answer.nr-qandaentry.2171D439-9D3E-463D-9398-0830CCB1EA7A488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.2171D439-9D3E-463D-9398-0830CCB1EA7A488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 2. The VP of marketing approaches you and requests that you change the visitor logon screen on the companys website to include a username with at least six characters. This is considered: Project initiation Ongoing operations A project Project execution  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=181317638" \l "answer.nr-qandaentry.F44685C2-C856-4756-BF7A-6201AC811C1C488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.F44685C2-C856-4756-BF7A-6201AC811C1C488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 3. Your company manufactures small kitchen appliances. They are introducing a new product line of appliances in designer colors with distinctive features for kitchens in small spaces. These new products will be offered indefinitely starting with the spring catalog release. Which of the following is true? This is a project because this new product line has never been manufactured and sold by this company before. This is an ongoing operation because the company is in the business of manufacturing kitchen appliances. Introducing designer colors and features is simply a new twist on an existing process. This is an ongoing operation because the new product line will be sold indefinitely. Its not temporary. This is not a project or an ongoing operation. This is a new product introduction not affecting ongoing operations.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=181317638" \l "answer.nr-qandaentry.010AE6F3-4B3C-4AD9-ABE7-C43C563D1ABA488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.010AE6F3-4B3C-4AD9-ABE7-C43C563D1ABA488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 4. Your company manufactures small kitchen appliances. They are introducing a new product line of appliances in designer colors with distinctive features for kitchens in small spaces. These new products will be offered indefinitely starting with the spring catalog release. In order to determine the characteristics and features of the new product line, you will have to perform which of the following? Fast tracking Consulting with the stakeholders Planning the project life cycle Progressive elaboration  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=181317638" \l "answer.nr-qandaentry.E65C712A-C01D-4A26-8DEB-89E90A19D67A488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.E65C712A-C01D-4A26-8DEB-89E90A19D67A488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 5. A project is considered successful when: The product of the project has been manufactured. The project sponsor announces the completion of the project. The product of the project is turned over to the operations area to handle the ongoing aspects of the project. The project meets or exceeds the expectations of the stakeholders.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=181317638" \l "answer.nr-qandaentry.A1896A9E-D39C-4142-A043-645F9D44E643488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.A1896A9E-D39C-4142-A043-645F9D44E643488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 6. The VP of customer service has expressed concern over a project youre involved in. His specific concern is that if the project is implemented as planned, hell have to purchase additional equipment to staff his customer service center. The cost is substantial and was not taken into consideration in the project budget. The project sponsor insists that the project must go forward as originally planned or the customer will suffer. Which of the following is true? The VP of customer service is correct. Since the cost was not taken into account at the beginning of the project, the project should not go forward as planned. Project initiation should be revisited to examine the project plan and determine how changes can be made to accommodate customer service. The conflict should be resolved in favor of the customer. The conflict should be resolved in favor of the project sponsor. The conflict should be resolved in favor of the VP of customer service.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=181317638" \l "answer.nr-qandaentry.E7729A2F-B987-49B0-9BC6-1996BE6BD93E488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.E7729A2F-B987-49B0-9BC6-1996BE6BD93E488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 7. Which of the following brings together a set of tools and techniques used to describe, organize, and monitor the work of project activities? Project managers Guide to the PMBOK Project management Stakeholders HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=181317638" \l "answer.nr-qandaentry.DA1812BA-5D60-481B-A7EE-473DBC159682488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.DA1812BA-5D60-481B-A7EE-473DBC159682488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 8. What are the triple constraints? Time, schedules, and quality Time, availability, and quality Time, money, and schedules Time, money, and quality  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=181317638" \l "answer.nr-qandaentry.ED72A7E3-EE35-4DFC-A727-E175A7728527488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.ED72A7E3-EE35-4DFC-A727-E175A7728527488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 9. You are the project manager for a large construction project. The project objective is to construct a set of outbuildings to house the Olympic support team that will be arriving in your city 18 months from the project start date. Youve been given a budget of $12 million to complete this project. Resources are easily attained. Which of the triple constraints is the primary constraint for this project? Time, because the date cannot be moved Money, because the budget is set at $12 million Resources, because theyre not fixed Quality, because the buildings have to be functional and safe HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=181317638" \l "answer.nr-qandaentry.47D58AD2-29CB-44E0-9B6E-FD569837A2BB488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.47D58AD2-29CB-44E0-9B6E-FD569837A2BB488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 10. You are the project manager for a large construction project. The project objective is to construct a set of outbuildings to house the Olympic support team that will be arriving in your city 18 months from the project start date. Resources are not readily available as they are currently assigned to other projects. Jack, an expert crane operator, is needed for this project two months from today. Which of the following skills will you use to get Jack assigned to your project? Negotiation and influencing skills Communication and organizational skills Communication skills Problem-solving skills  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=181317638" \l "answer.nr-qandaentry.9CB35BA9-4318-4B42-B497-B90E0A97F6F0488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.9CB35BA9-4318-4B42-B497-B90E0A97F6F0488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 11. You are a project manager with technical expertise in the pharmaceutical industry. Youve decided to try your hand at project management in the entertainment industry. Which of the following is true? You will likely be successful because communication skills are your strong suit. You anticipate having technical experts on your project team to address industry specifics that youre not familiar with. You will likely be successful because your organizational skills are excellent. You anticipate having technical experts on your project team to address industry specifics that youre not familiar with. You will probably be successful because you have a friend in the entertainment industry that has briefed you on all the important aspects of this project that youll need to know. You anticipate having technical experts on your project team to address industry specifics that youre not familiar with. You will probably not be successful because you have little knowledge of the entertainment industry even though you anticipate having technical experts on your project team to address industry specifics that youre not familiar with.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=181317638" \l "answer.nr-qandaentry.D49430EE-10E2-42D4-BD04-F3DAD27852DD488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.D49430EE-10E2-42D4-BD04-F3DAD27852DD488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 12. You are managing a project to install a new postage software system that will automatically print labels and administer postage for certified mailings, overnight packages, and other special mailing needs. Youve attempted to gain the cooperation of the business analyst working on this project and need some answers. She is elusive and tells you that this project is not her top priority. To avoid situations like this in the future, you should: Establish the business analysts duties well ahead of due dates and tell her youll be reporting on her performance to her functional manager. Establish the business analysts duties well ahead of due dates and tell her you are expecting her to meet these expectations because the customer is counting on the project meeting due dates to save significant costs on their annual mailings. Negotiate with the business analysts functional manager during the planning process to establish expectations and request to participate in the business analysts annual performance review. Negotiate with the business analysts functional manager during the planning process to establish expectations and inform the functional manager of the requirements of the project. Agreement from the functional manager will assure the cooperation of the business analyst.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=181317638" \l "answer.nr-qandaentry.843CDBC2-6EB9-4A67-95C0-A2E783C4E3C5488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.843CDBC2-6EB9-4A67-95C0-A2E783C4E3C5488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 13. The amount of authority a project manager possesses can be related to: The project managers communication skills The organizational structure The amount of authority the manager of the project manager possesses The project managers influencing skills HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=181317638" \l "answer.nr-qandaentry.7817B7CA-7B48-40E0-90EF-E6FB1E119FD5488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.7817B7CA-7B48-40E0-90EF-E6FB1E119FD5488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 14. What is one of the advantages of a functional structure? All employees report to one manager and have a clear chain of command. All employees report to two or more managers, but project team members show loyalty to functional managers. The organization is focused on projects and project work. Teams are collocated.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=181317638" \l "answer.nr-qandaentry.3C56FA5B-BC66-4C66-AB72-E85D19EB2BAC488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.3C56FA5B-BC66-4C66-AB72-E85D19EB2BAC488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 15. You have been assigned to a project in which the objectives are to direct customer calls to an Interactive Voice Response system before being connected to a live agent. You are in charge of the media communications for this project. You report to the project manager in charge of this project and the VP of marketing, who share responsibility for this project. Which organizational structure do you work in? Functional organization Weak matrix organization Projectized organization Balanced matrix organization HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=181317638" \l "answer.nr-qandaentry.AFC6B2B5-F19E-4E7D-B286-4B138BA9FD54488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.AFC6B2B5-F19E-4E7D-B286-4B138BA9FD54488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 16. You have been assigned to a project in which the objectives are to expand three miles of the north-south highway through your city by two lanes in each direction. You are in charge of the demolition phase of this project, and you report to the project manager in charge of this project. You have been hired on contract and will be released at the completion of the demolition phase. What type of organizational structure does this represent? Functional organization Weak matrix organization Projectized organization Balanced matrix organization  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=181317638" \l "answer.nr-qandaentry.1D6BB8C5-8524-48B6-84E8-39D2833E6D07488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.1D6BB8C5-8524-48B6-84E8-39D2833E6D07488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 17. What are the five project management process groups, in order? Initiation, Executing, Planning, Controlling, and Closing Initiation, Controlling, Planning, Executing, and Closing Initiation, Planning, Controlling, Executing, and Closing Initiation, Planning, Executing, Controlling, and Closing HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=181317638" \l "answer.nr-qandaentry.B8FF0719-4AC3-49EE-8184-FA2918DCC25B488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.B8FF0719-4AC3-49EE-8184-FA2918DCC25B488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 18. You have been assigned to a project in which the objectives are to expand three miles of the north-south highway through your city by two lanes in each direction. You are interested in implementing a new project process called design-build in order to speed up the project schedule. The idea is that the construction team will work on the first mile of the highway reconstruction at the same time the design team is coming up with plans for the third mile of the reconstruction rather than completing all design before any construction begins. This is an example of: Managing the projects as a program Fast tracking Progressive elaboration Collocation  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=181317638" \l "answer.nr-qandaentry.7C33F381-BF21-4B44-8715-E935FC3993A6488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.7C33F381-BF21-4B44-8715-E935FC3993A6488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 19. During which project management process are risk and stakeholders ability to influence project outcomes the highest at the beginning of the process? Planning Executing Initiation Controlling HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=181317638" \l "answer.nr-qandaentry.B0BDE96A-4E59-49EF-AA3B-E2C1920FA335488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.B0BDE96A-4E59-49EF-AA3B-E2C1920FA335488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 20. You are a project manager working on gathering requirements and establishing estimates for the project. Which process group are you in? Planning Executing Initiation Controlling HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=181317638" \l "answer.nr-qandaentry.54F101D6-DECB-4B15-A8FD-59D20F760715488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.54F101D6-DECB-4B15-A8FD-59D20F760715488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET Answers  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=181317638" \l "nr-qandaentry.2171D439-9D3E-463D-9398-0830CCB1EA7A488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.2171D439-9D3E-463D-9398-0830CCB1EA7A488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 1.C The Project Management Institute (PMI) is the industry-recognized standard for project management practices. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=181317638" \l "nr-qandaentry.F44685C2-C856-4756-BF7A-6201AC811C1C488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.F44685C2-C856-4756-BF7A-6201AC811C1C488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 2.B Projects exist to create a unique product or service. The logon screen in this question is not a unique product. A minor change has been requested, indicating this is an ongoing operation function. Some of the criteria for projects are that they are unique, temporary with definitive start and end dates, and considered complete when the project goals are achieved. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=181317638" \l "nr-qandaentry.010AE6F3-4B3C-4AD9-ABE7-C43C563D1ABA488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.010AE6F3-4B3C-4AD9-ABE7-C43C563D1ABA488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 3.A This is a project. The product line is new, which implies this is a unique productit hasnt been done before. We can discern a definite start and end date by the fact that the new appliances must be ready by the spring catalog release.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=181317638" \l "nr-qandaentry.E65C712A-C01D-4A26-8DEB-89E90A19D67A488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.E65C712A-C01D-4A26-8DEB-89E90A19D67A488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 4.D Progressive elaboration is the process of determining the characteristics and features of the product of the project. Progressive elaboration is carried out in steps in detailed fashion. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=181317638" \l "nr-qandaentry.A1896A9E-D39C-4142-A043-645F9D44E643488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.A1896A9E-D39C-4142-A043-645F9D44E643488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 5.D A project is considered successful when stakeholder needs and expectations are met or exceeded. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=181317638" \l "nr-qandaentry.E7729A2F-B987-49B0-9BC6-1996BE6BD93E488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.E7729A2F-B987-49B0-9BC6-1996BE6BD93E488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 6.B Conflicts between stakeholders should always be resolved in favor of the customer. This question emphasizes the importance of identifying your stakeholders and their needs as early as possible in the project. Well discuss this more in later chapters. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=181317638" \l "nr-qandaentry.DA1812BA-5D60-481B-A7EE-473DBC159682488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.DA1812BA-5D60-481B-A7EE-473DBC159682488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 7.C Project management brings together a set of tools and techniques to organize project activities. Project managers are the ones responsible for managing the project processes. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=181317638" \l "nr-qandaentry.ED72A7E3-EE35-4DFC-A727-E175A7728527488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.ED72A7E3-EE35-4DFC-A727-E175A7728527488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 8.D The triple constraints that drive all projects are time, money, and quality. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=181317638" \l "nr-qandaentry.47D58AD2-29CB-44E0-9B6E-FD569837A2BB488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.47D58AD2-29CB-44E0-9B6E-FD569837A2BB488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 9.A The primary constraint on this project is time because the date absolutely cannot move. The Olympics are scheduled to begin on a certain date, and this cant be changed. The budget is also a constraint because its set at $12 million, but in this example, it would be a secondary constraint. Its important that the project manager understands the priority of the constraints and manages to them. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=181317638" \l "nr-qandaentry.9CB35BA9-4318-4B42-B497-B90E0A97F6F0488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.9CB35BA9-4318-4B42-B497-B90E0A97F6F0488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 10.A Negotiation and influencing skills are needed to convince Jacks boss and come to agreement concerning his assignment. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=181317638" \l "nr-qandaentry.D49430EE-10E2-42D4-BD04-F3DAD27852DD488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.D49430EE-10E2-42D4-BD04-F3DAD27852DD488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 11.A Project management processes span industries. A project manager can take these skills across industries and apply them successfully. Technical experience in the industry doesnt hurt, but its not required. The most important skill any project manager can have is communication skills. Poor communication skills might lead to an unsuccessful conclusion no matter how strong the project managers other skills are. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=181317638" \l "nr-qandaentry.843CDBC2-6EB9-4A67-95C0-A2E783C4E3C5488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.843CDBC2-6EB9-4A67-95C0-A2E783C4E3C5488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 12.C Negotiate with the functional manager to participate in the business analysts annual performance review.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=181317638" \l "nr-qandaentry.7817B7CA-7B48-40E0-90EF-E6FB1E119FD5488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.7817B7CA-7B48-40E0-90EF-E6FB1E119FD5488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 13.B The level of authority the project manager has is determined by the organizational structure. For instance, in a functional organization, the project manager has little to no authority, but in a projectized structure, the project manager has full authority. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=181317638" \l "nr-qandaentry.3C56FA5B-BC66-4C66-AB72-E85D19EB2BAC488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.3C56FA5B-BC66-4C66-AB72-E85D19EB2BAC488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 14.A An advantage for employees in a functional organization is that they have only one supervisor and a clear chain of command exists. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=181317638" \l "nr-qandaentry.AFC6B2B5-F19E-4E7D-B286-4B138BA9FD54488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.AFC6B2B5-F19E-4E7D-B286-4B138BA9FD54488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 15.D Employees in a balanced matrix often report to two or more managers. Functional managers and project managers share authority and responsibility for projects. There is a balance of power between the functional managers and project managers. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=181317638" \l "nr-qandaentry.1D6BB8C5-8524-48B6-84E8-39D2833E6D07488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.1D6BB8C5-8524-48B6-84E8-39D2833E6D07488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 16.C Projectized organizations are focused on the project itself. One issue with this type of structure is determining what to do with project team members when they are not actively involved on the project. One alternative is to release them when they are no longer needed.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=181317638" \l "nr-qandaentry.B8FF0719-4AC3-49EE-8184-FA2918DCC25B488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.B8FF0719-4AC3-49EE-8184-FA2918DCC25B488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 17.D Remember the acronym that sounds like syrup of ipecac: IPECC. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=181317638" \l "nr-qandaentry.7C33F381-BF21-4B44-8715-E935FC3993A6488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.7C33F381-BF21-4B44-8715-E935FC3993A6488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 18.B Fast tracking is starting a new phase before the phase youre working on is completed. This compresses the project schedule, and the project is completed sooner as a result. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=181317638" \l "nr-qandaentry.B0BDE96A-4E59-49EF-AA3B-E2C1920FA335488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.B0BDE96A-4E59-49EF-AA3B-E2C1920FA335488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 19.C The Initiation process is where stakeholders have the greatest ability to influence outcomes of the project. Risk is highest during this stage because of the high degree of unknown factors. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=181317638" \l "nr-qandaentry.54F101D6-DECB-4B15-A8FD-59D20F760715488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.54F101D6-DECB-4B15-A8FD-59D20F760715488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 20.A The Planning process is where requirements are fleshed out, stakeholders are identified, and estimates on project costs and time are made. Chapter 2: Initiating the Project PMP Exam Content from the Project InitiationPerformance Domain Coveredin This Chapter: Determine Project Goals. Determine Deliverables. Determine Process Outputs. Document Constraints. Document Assumptions. Overview Now that youre fully armed with a detailed overview of project management, you can easily determine if your next assignment really is a project or an ongoing operation. Youve also learned some of the basics of good project management techniques and the knowledge areas where you might need specific expertise. Were going to start putting those techniques into practice in the Initiation process. And, as youve probably already guessed, well be using some of the general management skills we outlined in  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=17" \l "17" \t "_parent" Chapter 1 also. One of the first skills you are going to put to use will be your communication skills. Are you surprised? Of course youre not. It all starts with communication. You cant start defining the project until youve first talked to the project sponsor, key stakeholders, and management personnel. All good project managers have honed their communication skills to a nice sharp edge. Youll remember from  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=17" \l "17" \t "_parent" Chapter 1 that project Initiation is the first process in a project life cycle. You can think of it as the official project kickoff. Initiation acknowledges that the project, or the next phase in an active project, should begin. Initiation then culminates in the publication of a project charter. Well discuss project charters in  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=166" \l "166" \t "_parent" Chapter 3 in more depth. But weve got work to do before were ready to produce the project charter, so well wrap up this chapter with a discussion of the preliminary elements of a charter document. We will also talk about project Initiation and introduce some of the things that make up this process. But before we dive into Initiation, well first take a look at what PMI calls the Project Management Knowledge Areas. Knowledge areas are a collection of processes that share similar themes and, therefore, benefit from the expertise of specific knowledge and skills in each of these areas. At the end of this chapter, well introduce a case study that will illustrate the main points of the chapter. Well take this case study with us from chapter to chapter and begin building a project from each of things we learned. The Project Management Knowledge Areas According to the Guide to the PMBOK, project Initiation, as weve discussed, is the first project management process group in the life cycle of a project. In addition to the project process groups, the Guide to the PMBOK classifies the processes that make up each project management process group into nine Project Management Knowledge Areas. These groupings, or know-ledge areas, bring together processes that have things in common. For example, Project Cost Management involves all aspects of the budgeting process, as you would suspect, such as Resource Planning, Cost Estimating, Cost Budgeting, and Cost Control. These processes belong to different project management process groups, but because they all involve costs and budgeting, they share many aspects in common. Understanding the Project Management Knowledge Areas Lets take a closer look at each area so we really understand how their role works with the process groups. Included in each of the following subsections is a figure that illustrates the knowledge area, the processes that make up each knowledge area, and the project management process groups that each process belongs to. This will help you to see the big picture in terms of process groups versus knowledge areas. We will be discussing each of the processes in the various knowledge areas throughout the book, but for now, lets take a high-level look at each of them. Project Integration Management Project Integration Management (see  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=751908633" \l "figure.0999C54D-73A4-4B76-BCB8-F129495D089F488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#figure.0999C54D-73A4-4B76-BCB8-F129495D089F488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" Figure 2.1) is comprised of three processes: Project Plan Development, Project Plan Execution, and Integrated Change Control. The Project Integration knowledge area is concerned with coordinating all aspects of the project plan and is highly interactive. Project planning, project execution, and change control occur throughout the project and are repeated continuously while working on the project. Project planning and execution involve weighing the objectives of the project against alternatives to bring the project to a successful completion. Change control impacts the project plan, which in turn impacts execution, so you can see that these three processes are very tightly linked. The processes in this area also interact with other processes in the remaining knowledge areas.  HYPERLINK "javascript:PopImage('IMG_10','http://images.books24x7.com/bookimages/id_3964/f0201_0.jpg','584','211')" \t "_self"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/f0201.jpg" \* MERGEFORMATINET  Figure 2.1: Project Integration Management Project Scope Management Project Scope Management (see  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=751908633" \l "figure.70F9B42E-F8F8-4D0C-9CED-DC3BB8EFC266488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#figure.70F9B42E-F8F8-4D0C-9CED-DC3BB8EFC266488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" Figure 2.2) has five processes: Initiation, Scope Planning, Scope Definition, Scope Verification, and Scope Change Control. Project Scope Management is concerned with the work of the project. All of the processes involved with the work of the project, and only the work that is required to complete the project, are found in this knowledge area. Well talk about Initiation in more detail in the remainder of this chapter. Scope Planning, Scope Definition, Scope Verification, and Scope Change Control involve detailing the requirements of the product of the project and the activities that will eventually comprise the project plan, verifying those details using measurement techniques, and controlling changes to these processes.  HYPERLINK "javascript:PopImage('IMG_11','http://images.books24x7.com/bookimages/id_3964/f0202_0.jpg','590','386')" \t "_self"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/f0202.jpg" \* MERGEFORMATINET  Figure 2.2: Project Scope Management Project Time Management The Project Time Management knowledge area (see  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=751908633" \l "figure.CC071A2F-AE9B-4B00-BD42-B796A3EA737A488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#figure.CC071A2F-AE9B-4B00-BD42-B796A3EA737A488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" Figure 2.3) also has five processes: Activity Definition, Activity Sequencing, Activity Duration Estimating, Schedule Development, and Schedule Control. This knowledge area is concerned with estimating the duration of the project plan activities, devising a project schedule, and monitoring and controlling deviations from the schedule. Collectively, this knowledge area deals with completing the project in a timely manner. In many cases, all of the activity processes described here along with schedule development are completed as one activity. Sometimes, only one person is needed to complete these five processes, and theyre all worked on at the same time. Time management is an important aspect of project management as it concerns keeping the project activities on track and monitoring those activities against the project plan to assure the project is completed on time.  HYPERLINK "javascript:PopImage('IMG_12','http://images.books24x7.com/bookimages/id_3964/f0203_0.jpg','606','386')" \t "_self"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/f0203.jpg" \* MERGEFORMATINET  Figure 2.3: Project Time Management Project Cost Management As its name implies, the Project Cost Management knowledge area (see  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=751908633" \l "figure.EB3338E4-C3B2-42FF-A55A-E0CDDC3FCA1A488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#figure.EB3338E4-C3B2-42FF-A55A-E0CDDC3FCA1A488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" Figure 2.4) centers around costs and budgets. The processes that make up this knowledge area are as follows: Resource Planning, Cost Estimating, Cost Budgeting, and Cost Control. The activities in the Project Cost Management knowledge area establish estimates for costs and resources and keep watch over those costs to ensure that the project stays within the approved budget. Depending on the complexity of the project, these processes might need the involvement of more than one person. For example, the finance person might not have expertise in the Resource Planning area, so the project manager will need to bring in a staff member with those skills to complete the Resource Planning process.  HYPERLINK "javascript:PopImage('IMG_13','http://images.books24x7.com/bookimages/id_3964/f0204_0.jpg','593','386')" \t "_self"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/f0204.jpg" \* MERGEFORMATINET  Figure 2.4: Project Cost Management Project Quality Management The Project Quality Management knowledge area (see  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=751908633" \l "figure.3A072663-FC84-45A5-ADF4-4EA773609626488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#figure.3A072663-FC84-45A5-ADF4-4EA773609626488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" Figure 2.5) assures that the project meets the requirements that the project was undertaken to produce. These processes measure overall performance, and monitor project results and compare them to the quality standards set out in the project-planning process to assure that the customer will receive the product or service they thought they purchased. Project Quality Management is composed of the following three processes: Quality Planning, Quality Assurance, and Quality Control.  HYPERLINK "javascript:PopImage('IMG_14','http://images.books24x7.com/bookimages/id_3964/f0205_0.jpg','585','190')" \t "_self"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/f0205.jpg" \* MERGEFORMATINET  Figure 2.5: Project Quality Management Project Human Resource Management Project Human Resource Management (see  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=751908633" \l "figure.EA7E9F0B-FFB3-4146-8574-F4DD5E5559C2488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#figure.EA7E9F0B-FFB3-4146-8574-F4DD5E5559C2488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" Figure 2.6) involves all aspects of people management and personal interaction including leading, coaching, dealing with conflict, and more. Some of the project participants whom youll get to practice these skills on include stakeholders, team members, and customers. Each requires the use of different communication styles, leadership skills, and team-building skills. A good project manager knows when to enact certain skills and communication styles based on the situation. The Project Human Resource knowledge area contains the following processes: Organizational Planning, Staff Acquisition, and Team Development.  HYPERLINK "javascript:PopImage('IMG_15','http://images.books24x7.com/bookimages/id_3964/f0206_0.jpg','609','190')" \t "_self"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/f0206.jpg" \* MERGEFORMATINET  Figure 2.6: Project Human Resource Management Project Communications Management The processes that make up the Project Communications Management knowledge area (see  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=751908633" \l "figure.96F3557A-6764-4A2B-91AA-9D57F15A6CD9488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#figure.96F3557A-6764-4A2B-91AA-9D57F15A6CD9488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" Figure 2.7) are as follows: Communications Planning, Information Distribution, Performance Reporting, and Administrative Closure. The processes in the Project Communications knowledge area are related to general communication skills but arent the same thing. Communication skills are considered general management skills that the project manager utilizes on a daily basis. The processes in the Communications knowledge area seek to ensure that all project information including project plans, risk assessments, meeting notes, and more is collected and documented. These processes also ensure information is distributed and shared with appropriate stakeholders and project members. At project close, the information is archived and used as a reference for future projects. This is referred to as historical information in several project processes.  HYPERLINK "javascript:PopImage('IMG_16','http://images.books24x7.com/bookimages/id_3964/f0207_0.jpg','605','386')" \t "_self"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/f0207.jpg" \* MERGEFORMATINET  Figure 2.7: Project Communications Management Project Risk Management Project Risk Management (see  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=751908633" \l "figure.2F3FFB23-8237-4E3F-979C-BC221296B8D6488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#figure.2F3FFB23-8237-4E3F-979C-BC221296B8D6488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" Figure 2.8) contains six processes: Risk Management Planning, Risk Identification, Qualitative Risk Analysis, Quantitative Risk Analysis, Risk Response Planning, and Risk Monitoring and Control. As the name of this knowledge area implies, these processes are concerned with identifying and planning for potential risks that may impact the project. Organizations will often combine several of these processes into one step. For example, Risk Identification, Qualitative Risk Analysis, and Quantitative Risk Analysis might be performed at the same time. The important thing about this process is that you should strive to identify all the risks and develop responses for those with the greatest consequences to the project objectives.  HYPERLINK "javascript:PopImage('IMG_17','http://images.books24x7.com/bookimages/id_3964/f0208_0.jpg','593','386')" \t "_self"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/f0208.jpg" \* MERGEFORMATINET  Figure 2.8: Project Risk Management Project Procurement Management The Project Procurement Management knowledge area (see  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=751908633" \l "figure.9023A937-0699-46B2-8473-B667852902B2488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#figure.9023A937-0699-46B2-8473-B667852902B2488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" Figure 2.9) includes the processes involved with purchasing goods or services from external vendors, contractors, and suppliers. When discussing the Procurement Management processes, its assumed that the discussion is taking place from the perspective of the buyer. As the project manager, you would be the buyer purchasing the goods or services from a supplier or contractor, so these processes should be examined from that perspective. The processes in the Project Procurement Management knowledge area are as follows: Procurement Planning, Solicitation Planning, Solicitation, Source Selection, Contract Administration, and Contract Closeout. The PMP exam will most likely have a question or two regarding the processes that make up a knowledge area. Remember that knowledge areas bring together processes by commonalities, so thinking about the knowledge area itself should tip you off to the processes that belong to it. Projects are executed in process group order, but the knowledge areas allow a project manager to think about groups of processes that require specific skills. This makes the job of assigning resources easier because team members with specific skills might be able to work on and complete several processes at once.  HYPERLINK "javascript:PopImage('IMG_18','http://images.books24x7.com/bookimages/id_3964/f0209_0.jpg','588','386')" \t "_self"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/f0209.jpg" \* MERGEFORMATINET  Figure 2.9: Project Procurement Management The remainder of this book will deal with processes and process groups as they occur in life cycle order (i.e., Initiation, Planning, Executing, Controlling, and Closing) as this is the way you will encounter and manage them during a project. Defining the Project Initiation Process Your companys quarterly meeting is scheduled for today. You take your seat, and each of the department heads gets up and starts giving their usual aint this great rah-rah speech one after the other. You barely notice that the CEO takes the stage. He starts out his part of the program pretty much the same way the department heads did. Suddenly, your daydreaming trance is shattered when you hear the CEO say, and the new phone system will be installed by Thanksgiving. Wait a minute. You work in the telecom department and havent heard a word about this project until today. You also have a funny feeling that youve been elected to manage this project. Its amazing how good communication skills are so important for project managers but notwell, we wont go there. Project Initiation Project Initiation is the formal recognition that a project should begin and resources should be committed to the project. Unfortunately, many projects are initiated the way our CEO did in this example. Each of us, at one time or another, has experienced being handed a project with little to no information and told to make it happen. The new phone system scenario is an excellent example of how not to initiate a project. Taking one step back from Initiation leads us to ask, How do projects come about in the first place? Do CEOs just make them up like in this example? Even though our CEO announced this new project at the company meeting with no forewarning, there is no doubt it came about as a result of a legitimate need. Believe it or not, CEOs dont just dream projects up to give us all something to do. Theyre concerned about the future of the company and the needs of the business and its customers. The business itself might drive the need for a project, customers might demand changes to products, or legal requirements may create the need for a new project. According to the Guide to the PMBOK, projects come about as a result of one of six needs or demands. Needs and Demands Organizations exist to generate profits or serve the public. To stay competitive, organizations are always examining new ways of creating business, better ways of gaining efficiencies, or better ways to serve their customers. Sometimes laws are passed to force organizations to make their products safer or to protect the environment. Projects result from all of these needs. Most projects will fit one of the six needs or demands described below. It is those needs and/or demands that dictate the germination of a project. In the following sections, lets take a closer look at each of these areas. Marketing Demand The demands of the marketplace can drive the need for a project. For example, a bank initiates a project to offer customers the ability to apply for mortgage loans over the Internet due to a drop in interest rates and an increase in demand for refinances and new home loans. Business Need The new phone system we talked about earlier that was announced at the quarterly meeting came about as a result of a business need. The CEO, on advice from his staff, was advised that call volumes were maxed on the existing system. Without a new system, customer service response times would suffer, and that would eventually affect the bottom line. Customer Request Customer requests run the gamut. Generally speaking, most companies have customers, and their requests can drive new projects. Customers can be internal or external to the organization. Government agencies dont have external customers per se (were captive customers at any rate), but there are internal customers within departments and across agencies. Perhaps you work for a company that sells remittance-processing equipment and youve just landed a contract with a local utility company. This project is driven by the need of the utility company to automate their process, or upgrade their existing process. The utility companys request to purchase your equipment and consulting services is the project driver. Technological Advance Do you happen to own one of those electronic personal digital assistants? They keep names and addresses handy and usually come with a calendar and a to-do list of some kind. I couldnt live without mine. However, there is always a newer, better version coming to market. The introduction of satellite communications now allows these little devices to connect to the Web or get e-mail almost anywhere in the world. The introduction of the satellite communications ability is an example of a technological advance. Due to this introduction, electronics manufacturers revamped their products to take advantage of this new technology. Legal Requirement Private industry as well as government agencies generate new projects as a result of laws passed every legislative season. For example, new sales tax laws might require modifications or new programming to the existing sales tax system. The requirement that food labels appear on every package describing the ingredients and the recommended daily allowances of certain vitamins is another example of a project driven by legal requirements. Social Need The last need is a result of social demands. For example, perhaps a developing country is experiencing a fast-spreading disease thats infecting large portions of the population. Medical supplies and facilities are needed to vaccinate and cure those infected with the disease. Another example might include cleaning up waste products from the water supply of manufacturing plants prior to putting the water back into a local river or stream to prevent contamination. Project Initiation Process Initiation is part of the Project Scope Management knowledge area. As weve learned, this knowledge area deals with identifying a project, the stakeholders, and the project requirements. The Initiation process lays the groundwork for the Planning process group that follows Initiation. A high percentage of projects fail due to poor planning or no planning. Properly planning your project up front dramatically increases the projects chance for success. Since Initiation is the foundation of Planning, the importance of Initiation is self evident. The project Initiation process has several inputs: product description, strategic plan, project selection criteria, and historical information. Each of these inputs is processed using tools and techniques to produce the final outputs, one of which is the project charter. Now, well examine each of these inputs in a bit more detail. Product Description As you might deduce, the product description describes the product. The product description should be documented and should clearly outline the characteristics of the product or service. This description should also include the business need thats driving the reason for the project. Product descriptions contain less detail in the early phases of a project and more detail as the project progresses. Product details are progressively elaborated to come up with the final product description. It will contain the greatest amount of detail at the project Execution process. When a project is performed under contract, typically the buyer of the product or service will provide the product description to the vendor or contractor. The product description serves as a statement of work when the project is contracted to a vendor. A statement of work describes the product or service in enough detail so that the vendor can accurately price the contract and satisfactorily fulfill the requirements of the project. The statement of work is covered in more detail in  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=344" \l "344" \t "_parent" Chapter 6. Strategic Plan Part of the responsibility of a project manager during the Initiation process is to take into consideration the companys strategic plan. Perhaps the strategic plan states that one of the company goals is to build 15 new stores by the end of the fiscal year. If the project your company is considering undertaking is to install a new human resources software system, it would make sense to write the requirements for your project with the 15 new stores in mind. Your management team will refer to the strategic plan when choosing which new projects to initiate and which ones to drop depending on their relationship to the strategic vision of the company. Project Selection Criteria Project selection involves making determinations regarding which projects to accept or reject based on criteria such as financial data, sales potential in the marketplace, etc. This subject will be dealt with more thoroughly in  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=166" \l "166" \t "_parent" Chapter 3. Historical Information Historical information can be very useful to project managers and to stakeholders. When youre evaluating new projects, historical information about previous projects of a similar nature can be very handy in determining if the new project should be accepted and initiated. Historical information on an active project gathered and documented during the project can be examined to assist in determining whether the project should proceed to the next phase. Historical information will help you in determining project goals, with estimating activities, and during the project-planning processes. Youll find that historical information is an input to several processes . Developing a Project Overview One of the first steps a project manager will take in the Initiation process is to develop a project overview. Some organizations call this a project concept document. The four inputs described in the last section will help to outline the project overview and will be used again when formulating the final project charter. It should be noted that the Guide to the PMBOK holds the view that a project manager is identified and assigned at the completion of the Initiation process. While sometimes thats true, in practice its common that the project manager is involved at the beginning of the Initiation process and assists with the project overview and information-gathering tasks. At the completion of the Initiation process, the organization has committed to fund the project and provide the necessary resources to carry it out, or has killed the project. The project has the lowest probability of succeeding during Initiation. Thats because no action has been taken regarding project activities. In other words, you havent actually begun to produce the product of the project. Quite a bit of work will have gone into the project at this stage, but most of it regards the overview of the project and the business justification for the project. The stakeholders have greatest ability to influence project outcome at this stage because nothing has been cast in stone yet. There is still time for them to negotiate requirements and deliverables. Risk is highest during Initiation because any number of things can happen between now and the time the project is completed. The project might not be approved, the funding might not be approved, the strategic direction of the company could change and the project no longer fits in with the new vision, the customer could change her mind, etc. This list could become quite lengthy. Project failure can be controlled and minimized by accurately applying project management techniques to your project and by proper planning.  INCLUDEPICTURE "http://www.books24x7.com/book/id_3964/_.gif" \* MERGEFORMATINET Real World ScenarioThe Diet-Cola Marketing Opportunity Elizabeth is the project manager for a large soft drink beverage company located in Tallahassee, Florida. One sunny morning, Roger Bruist, the marketing vice president, pays her a visit. I asked your boss if it was okay to directly talk to you about this projectshe said it would be fine, he starts. As youve probably heard, were test marketing a new diet-cola opportunity that we thought would be a big seller. Long story short, I had lunch the other day with a friend of mine from the club. He ordered his usual diet cola but requested three slices of lemon with it. I stared at him while he squeezed those lemons into his diet and dunked the last rind into the mix. Well, I have to tell you the taste is fabulous! Weve toyed around with the exact lemon-to-cola mixture in the lab and have come up with what we think is the optimum mix that results in the tastiness factor were looking for. Weve worked together, and I know your work is top-notch. What wed like for you to do is put together a project that test markets our new soda in three test areas. We want to target markets that utilize a lot of diet soda. We think the best places to target would be Denver, Las Vegas, and the Seattle area. We want a project plan that details the distributors well send the soda to and how well obtain the demographics were looking for. My department will supply you with the marketing profiles and plans you need to implement in your project plan. Wed also like a page added to the companys website that talks about the new beverage. The project should also include key players from the National Soft Drink Association and have a large, splashy intro on their website as well. You can visit their site at  HYPERLINK "http://www.nsda.org" \t "_top" www.nsda.org." As a project manager, you will often have projects presented to you that are barely past the big-picture stage. Roger has a good idea of how he wants to test market this new product, but many other processes must come into play here such as planning, budgeting, risk assessment, reporting, and so on. A lot of energy is focused on the vision of the project and the wants and needs of the stakeholders. Its your job to take the vision, examine the needs of all the stakeholders including Rogers, and bring the vision to fruition. Determining the Project Goals Several terms are tossed about and sometimes used interchangeably when talking about projects. They are words such as goals (sometimes called objectives), requirements, and deliverables. Their meanings are sometimes blurred together, but there is some differentiation between these terms. Goals and objectives are the purpose for undertaking the project, and they describe the final result of the project. Increase warehouse space to house the new product line for distribution or provide faster turnaround times on loan application services are both examples of goals. In other words, the purpose for the project is to do something or accomplish somethinga goal. Project Goals Goals describe the what it is youre trying to do, accomplish, or produce. Goals and objectives should be stated in tangible terms. If your goal is to increase warehouse space, it would be better to say the goal is to build four new warehouses. Describing the number of new warehouses to be built is specific and tangible. For that reason, well know the project is completed when this goal is met. The goal of offering faster loan approvals might be better stated that the company will provide loan applications over the Internet to speed the application process. Theres no hard and fast rule here. Goals and objectives can be combined and simply called goals. Whats important is that you come away understanding what the end purpose of the project is and how to identify when its been accomplished. Youve probably seen this acronym regarding goal setting a dozen times, but its worth repeating. Goals should follow the SMART rule: SSpecific Goals should be specific and written in clear, concise, understandable terms. MMeasurable Goals should be measurable. AAccurate Goals should be accurate and should describe precisely whats required. RRealistic and tangible Goals that are impossible to accomplish are not realistic and not attainable. Goals must be centered in reality. Its not likely you and I will be sending up rocket ships full of chocolate candies to sell to tourists visiting the moon anytime soon. TTime bound Goals should have a time frame with an end date assigned to them. Hmm, this all sounds familiar. It seems there are some similarities between goal setting and how we describe and document projects. Lets look at that acronym again from a project perspective: SSpecific The project goals are specific and stated in clear, concise, understandable terms and are documented in the project charter and scope statement. Projects exist to bring about a unique, specific product or service that hasnt existed before. MMeasurable The deliverables of the project or project phase are measurable against verifiable outcomes or results. AAccurate The verification and measurement of requirements and deliverables are used to determine accuracy and also to ascertain if the project is on track according to the project plan. RRealistic and tangible Projects are unique and produce tangible products or services. The triple constraints of any project help to define realistic goals and realistic requirements based on the limitations the constraints put on the project. TTime bound Projects are performed in specific time frames with a definite beginning and definite end date. Project Requirements Requirements are not the same as goals and objectives. Requirements are specifications of the goal or deliverables. Requirements help answer the question, How will we know its successful? Requirements are the specifications or necessary prerequisites that make up the product or service youre producing. Lets say youre building those four warehouses. Some of the requirements might be the square footage of each building, the number of loading docks, the location of the warehouses, etc. Project Deliverables Deliverables are measurable outcomes, measurable results, or specific items that must be produced to consider the project or project phase completed. Deliverables, like goals, must be specific and verifiable. A manufacturing unit that is part of a larger project might be required to produce widgets with a 3-inch diameter. These will in turn be assembled into the final product. This deliverable is specific and measurable. However, if the deliverable was not documented or not communicated to the manager responsible for the manufacturing unit, there could be a disaster waiting to happen. If they deliver 2-inch widgets instead of the required 3-inch version, it would throw the entire project off schedule or, perhaps, cause the project to fail. This could be a career-limiting move for the project manager because its the project managers responsibility to document deliverables and monitor the progress of those deliverables throughout the project or project phase. A project phase can have multiple deliverables. As in the example above, if you are assembling a new product with many parts, each of the parts could be considered independent deliverables. The bottom line is this: No matter how well you apply your project skills, if the wrong deliverables are produced or the project is managed to the wrong goals, you will have an unsuccessful project on your hands. Stakeholders Now were ready to identify and talk to those stakeholders about the project and get more specifics regarding the goals and deliverables of the project. Our objective at this point is to compile a project overview, or project definition. The overview will have enough information to describe the project, the business requirements, the projects objectives, and how well recognize when the project is successfully completed. Think of stakeholders and project participants as a highly polished orchestra. Each participant has a part to play. Some play more than others. And alas, some play their parts better than others. An integral part of project management is getting to know your stakeholders and the parts they play. Youll remember from  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=17" \l "17" \t "_parent" Chapter 1 that stakeholders are those people or organizations who have a vested interest in the outcome of the project. They have something to either gain or lose as a result of the project. According to the Guide to the PMBOK, stakeholders are officially identified in the Planning process. In practice, key stakeholders will have to be contacted early on to get their input for the project overview, goals, and deliverables. Identifying key stakeholders at this point should be fairly easy. Stakeholders might include the project sponsor, the customer (who might be one in the same as the project sponsor), the project manager, project team members, management personnel, contractors, suppliers, etc. Stakeholders can be internal or external to the organization. One way to uncover stakeholders whom you might not have thought about right at the start is to ask known stakeholders if theyre aware of anyone else that might be impacted by this project. Ask team members if theyre aware of stakeholders who havent been identified. Stakeholders might come to the forefront once you start uncovering some of the goals and deliverables of the project also. Dont forget important stakeholders. That could be a project killer. Leaving out an important stakeholder, or one whose business processes werent considered during project Initiation and Planning, could spell disaster for your project. Not to mention it could be another one of those career-limiting moves for the project manager. Its important for the project manager to understand each stakeholders role in the project and their role in the organization. Get to know them and their interests. Determine the relationship structure among the various stakeholders. Start cultivating partnerships with these stakeholders now as its going to get pretty cozy during the course of your project. If you establish good working relationships up front and learn a little about their business concerns and needs, it might be easier to negotiate or motivate them later on when you have a pressing issue that needs action. Knowing which stakeholders work well together and which dont can also help you in the future. One stakeholder may have the authority or influence to twist the arm of another, figuratively speaking of course. Or conversely, you might know of two stakeholders who act like oil and water when put into the same room together. This can be valuable information to keep under your hat for future reference. Communicating with Stakeholders Now those finely honed communication skills are going to come in handy. In order to determine the specific goals of your project, youll want to meet with each of the key stakeholders and document their ideas of the project goals. Its also a good idea at this point to gain an understanding of their needs and concerns regarding the project. Ask them why the project is needed. Ask what business process the project will change, enhance, or replace. Perhaps the existing business processes, and the systems that support them, are so old that little documentation exists for them. Determine if there is a critical business need for this project or if its a nice to have as we say around our office. What will be the result of this project? Will customer service be improved, or sales increased? Find out what prevents the stakeholders today from achieving the results they hope the project will accomplish. Ask about the deliverables and how they can be verified and measured. And always ask the stakeholder how they will know that the project was completed successfully. Remember that the definition of a successful project is one that meets or exceeds stakeholders expectations. Understand and document those expectations and youre off to a good start. Well talk about managing to those expectations in a later chapter. One way to help identify project goals is to talk about what is not included in a project. For example, lets say youre working on a highway project to create a new on-ramp from a downtown city street. The goal of this project is to have a new on-ramp constructed and ready for traffic in 18 months from the project start date. Specifically excluded from this project is the demolition of a deteriorating bridge adjacent to the new on-ramp. Make sure you state this in the project overview. The Project Overview Document The project overview document is a high-level look at the project goals and deliverables. It serves the purpose of capturing the intended outcome of the project and its deliverables. It will provide a brief background of the project and describe the business opportunity the company is attempting to capitalize on. It will also describe the business objectives the project should meet. The overview lays the groundwork for future consensus on deliverables and project expectations. Some organizations will require a feasibility study at this point in the project. Feasibility studies are undertaken for several reasons. One is to determine if the project is a viable project. Theyll also determine the probability of the project succeeding. Feasibility studies can also examine the viability of the product of the project. For example, the study might ask, Will the new lemon-flavored soda be a hit? Or, is it marketable? The study might also look at the technical issues related to the project and determine if the technology proposed is feasible, reliable, and easily assimilated into the organizations existing technology structure. The group of people conducting the feasibility study should not be the same ones who will work on the project. Project team members may have built-in biases toward the project and will tend to influence the feasibility outcome toward those biases.  INCLUDEPICTURE "http://www.books24x7.com/book/id_3964/_.gif" \* MERGEFORMATINET Real World ScenarioThe Interactive Voice Response Tax-Filing System Jason, Sam, and Kate are web programmers working for the Department of Revenue in the State of Bliss. Ron, their manager, approaches them one day with an idea. Team, business unit managers are thinking it would be a great idea to offer taxpayers the ability to file their income tax over the telephone. We already offer them the ability to file on the Internet, thanks to all your efforts on that project last year. Its been a fabulous success. No other state has had the success that Bliss has had with our Internet system. Kate, I know youve had previous experience with IVR technology, but Im not sure about you guys, so this is new territory for us. Id like to hear what each of you thinks about this project. Jason speaks up first. I think its a great idea. You know me, Im always up for learning new things, especially when it comes to programming. When can we start? Sam echoes Jasons comments. This technology is pretty sophisticated, Kate says. Jason and Sam are excellent coders and could work on the programming side of things, but I would have to pick up the telephony piece on my own. After were up and running, we could go over the telephony portions step by step so Jason and Sam can help me support it going forward. Id really like to take on this project. It would be good for the team and good for the department. Ron thinks for a minute. I think a feasibility study is in order. The senior director over the tax business unit doesnt know if this project is cost justified and has some concerns about its life span. Looks like we might have some technical issues to deal with on our side, and I dont want Kate going it alone without first examining all the impacts.  INCLUDEPICTURE "http://www.books24x7.com/book/id_3964/_.gif" \* MERGEFORMATINET Now that weve fleshed out the project goals and have a high-level view of the deliverables, its time for the next step. But never fear, well be reviewing goals and refining deliverables over the next few chapters. Well also be using them to help formulate requirements and project estimates. But were getting ahead of ourselves. We need to constrain this chapter to the topic at hand. Which brings up the next topicproject constraints. Identifying the Project Constraints We introduced the triple constraints in  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=17" \l "17" \t "_parent" Chapter 1. They are time, budget, and quality. All project managers have to deal with these constraints in all projects. No project manager I know has ever been given unlimited funding and unlimited time to produce a perfect product. In reality, if we were given unlimited funding and unlimited time, some of us probably wouldnt accomplish much. This is especially true for all of you out there who are the perfectionist types. Just tweak this and then tweak that, it will be perfect next iterationI know because Im one of you! Constraints are one of the outputs of the Initiation process. Constraints are anything that either restricts the actions of the project team or dictates the actions of the project team. Constraints put you in a box. (I hope youre not claustrophobic.) As a project manager, you have to manage to the project constraints, which sometimes requires creativity. Like most disciplines, project management is as much art as it is science. Types of Constraints As I said, time can be a project constraint. This usually comes in the form of an enforced deadline, commonly known as the make it happen now scenario. If you are in charge of the companys holiday bash scheduled for December 10, your project is time constrained. Once the invitations are out and the hall has been rented, you cant move the date. All activities on this project are driven by the due date. Budgets are another one of the triple constraints. Budgets limit the project teams ability to obtain resources and might potentially limit the scope of the project. For example, component X cannot be part of this project because the budget doesnt support it. Quality would typically be restricted by the specifications of the product or service. Those 3-inch widgets we talked about earlier could be considered a quality constraint. Most of the time, if quality is a constraint, one of the other constraints time or budgethas to have some give. You cant produce high quality on a restricted budget and within a tightly restricted time schedule. Of course, there are exceptions, but only in the movies. Schedule constraints can cause interesting dilemmas for the project manager. For example, say youre the project manager in charge of building a new football stadium in your city. The construction of the stadium will require the use of cranesand crane operatorsat certain times during the project. If crane operators are not available when your project plan calls for them, youll have to make schedule adjustments so that the crane operators can come in at the right time. Technology is a marvelous thing. In fact, how did humans survive prior to the invention of computers and cell phones? Technology certainly can be marvelous, but it can also be a project constraint. For example, your project might require the use of brand-new technology that is still so new its not been released on a wide-scale basis. One impact might be that the project will take an additional six months because existing technologies need to be used instead of the new technology. Directives from management can be constraints as well. If youve never experienced a directive from management, youre not working in the real world. And, when performing work on contract, the provisions of the contract can be constraints. Managing Constraints Constraints, particularly the triple constraints, can be used to help drive out the goals of the project. If its difficult to discern which constraint is the primary constraint, ask the project sponsor something like this, Ms. Sponsor, if you could only have one of these two alternatives, which would you choose? The project is delivered on the date youve stated, or the quality is manufactured to the exact specifications youve given. If Ms. Sponsor replies with the quality response, you know your primary constraint is quality. If push comes to shove during the project Planning process, time might have to give because quality cannot. Be sure to document your constraints. Constraints and assumptions, which well talk about in the  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=139" \l "139" \t "_parent" next section, are used as inputs to other project processes. Youll want to understand what the primary constraint is on the project. If you assume the primary constraint is budget when in actuality the primary constraint is time, in the immortal words of two-year-olds worldwide, Uh-oh. Understanding the constraints and which one carries the most importance will help you out later on in the project Planning process with things like scope planning, scheduling, estimating, and project plan development. Thats assuming your project gets to the project Planning process. Which brings us to the next topic, project assumptions. Identifying the Project Assumptions Youve probably heard the old saying about the word assumesomething about what it makes out of u and me. In the case of project management, however, throw this old saying out the window because its not true. Its essential to understand and document the assumptions youre making, and your stakeholders are making, about the project. Its also important to find out as many of the assumptions as you can up front. Projects can fail, sometimes after lots of progress has been made on the project, because an important assumption was forgotten or the assumption was incorrect. Assumptions are an output of the Initiation process and will be used as inputs to other processes later in the project. Documenting Your Assumptions Lets say you make plans to meet your buddy for lunch on Friday at 11:30 at your favorite spot. When Friday rolls around, you assume hes going to show up, barring any catastrophes between the office and the restaurant. Project assumptions work the same way. For planning purposes, you presume the event or thing youve made the assumptions about is true, real, or certain. For example, you might assume that key resources will be available when needed on the project. Document that assumption. If Nancy is the one and only resource who can perform a specific task at a certain point in the project, document your assumption that Nancy will be available and run it by her manager. If Nancy happens to be on a plane for Helsinki at the time you thought she was going to be working on the project, you could have a real problem on your hands. Other assumptions could be things such as vendor delivery times, product availability, contractor availability, the accuracy of the project plan, the assumption that key project members will perform adequately, contract signing dates, project start dates, and project phase start dates. This is not an exhaustive list but should get you thinking in the right direction. As you interview your stakeholders, ask them about their assumptions and document them. Use brainstorming exercises with your team and other project participants to come up with additional assumptions. Try to validate your assumptions whenever possible. When discussing assumptions with vendors, make them put it in writing. In fact, if the services or goods youre expecting to be delivered by your suppliers are critical to the project, include a clause in the contract to assure a contingency plan in case they fail to perform. For example, if youre expecting 200 PCs to be delivered, configured, and installed by a certain date, require the vendor to pay the cost of rental equipment in the event they cant deliver on the promised due date. Remember, when assumptions are incorrect or not documented, it could cause problems halfway through the project and might even be a project killer. The Kitchen Heaven Project Case Study This chapter will introduce a case study that well follow throughout the remainder of the book. Youll find an updated case study closing out every chapter. Theyre designed to show you how a project manager might apply the material covered in the chapter to a real-life project. As happens in real life, not every detail of every process is followed during all projects. Remember that the processes from the Guide to the PMBOK that well cover in the remaining chapters are project management guidelines. You will often combine processes during your projects, which allows you to perform several steps at once. The case studies will present situations or processes that you might find during your projects and describe how one project manager resolves them.  INCLUDEPICTURE "http://www.books24x7.com/book/id_3964/_.gif" \* MERGEFORMATINET Project Case Study: New Kitchen Heaven Retail Store You are a project manager for Kitchen Heaven, a chain of retail stores specializing in kitchen utensils, cookware, dishes, small appliances, and some gourmet food stuffs such as bottled sauces and spices. Youre fairly new to the position, having been hired to replace a PM who recently retired. Kitchen Heaven currently owns 49 stores in 34 states and Canada. The world headquarters for Kitchen Heaven is in Denver, Colorado. Counting full-time and part-time employees, the company employs 1500 people, 200 of whom work in the headquarters office. The company has yearly earnings of $200 million with average profits on earnings of $30 million. The company is publicly held under the KHVN ticker, and stock is currently at $17.50/share with a price-to-earnings ratio of 15.8. The companys mission statement reads this way: Great gadgets for people interested in great food. Recently the vice president of marketing came to pay you a visit. Dirk Perrier is a very nice man, well dressed, with the formal air that you would suspect a person in his capacity might have. He shakes your hand and gives you a fresh, toothy smile. You may not have heard, but weve decided to go forward with our 50th store opening! Sales are up, and our new line of ceramic cookware is a hot seller, no pun intended. I dont know if youre familiar with our store philo-sophy, so let me take a moment to explain it. We like to place our stores in neighborhoods that are somewhat affluent. We dont seek out the wealthy shoppers, nor do we place our shops in areas where only the wealthy travel. But the plain fact is that most of our shoppers have incomes of over $50,000 a year. We make an effort to place our stores in areas where those folks normally shop. Also, unlike some of our competitors who like to maintain a hoity-toity store persona, were more interested in targeting the nongourmet customer, one whos interested in cooking but wont be making Peking duck. So, the stores are upbeat, and convey a little bit of country ambiancekind of a laid-back feel, if you will. Our next store is going to be right here in our home areaColorado Springs. We have a store in Boulder and one in Denver in the Cherry Creek area, but none down south. Because this is going to be our 50th store, we plan on having a 50th grand-opening celebration with the kind of surprises and activities you might expect for such a notable opening. Our stores generally occupy from 2000 to 4000 square feet of retail space, and we typically use local contractors for the build-out. A store build-out usually takes 120 days from the date the property has been procured until the doors open to the public. I can give you our last openings project plan so you have a feel for what happens. Your job will be to procure the property, negotiate the lease, procure the shelving and associated store furnishings, get a contractor on the job, and prepare the 50th store festivities. My marketing folks will assist you with that last part. You have six months to complete the project. Any questions? You take in a deep breath and collect your thoughts. Dirk has just given you a lot of information with hardly a pause in between thoughts. A few initial things drift through your head while youre reaching for your notebook. You work in a functional organization with a separate projectized department responsible for carrying out projects of this nature. Youve been with the company long enough to know that Dirk is high up there in the executive ranks and carries the authority and the power to make things happen. Therefore, Dirk is the perfect candidate for project sponsor. You grab your notebook and start documenting some of the things Dirk talked about, clarifying with him as you write: The project goal is to open a new store in Colorado Springs six months from today. The store should be located in an affluent area. The store will carry the full line of products from utensils to gourmet food items. The grand opening will be accompanied by lots of fanfare because this is the 50th store opening. You have a question or two for Dirk. The first is, Who are some of the other key stakeholders whom I should speak with? Theres Jake Peterson over facilities. Hes in charge of store furnishings, shelving, things like that. Any supplies for the stores that arent retail products. He can help out with store build-outs, too. He supervised our last eight stores and did a terrific job. Ricardo Ramirez heads up our information technology area. Dont tell him I said this, but Im not very technical myself and dont really know what youre going to need from Ricardo. I do know he takes care of wiring and installing the point-of-sale terminals, but youll have to get with Ricardo for all the other details. Anyone else? you ask. You should also talk to Jill Overstreet, the director in charge of retail products. She can help with the initial store stocking, and once the store is open, her group will take over the ongoing operations. All the district managers report to Jill. Great, thanks. Now another question, you say. Is time the driver on this project? Is there a special reason it has to openlets see Im coming up with the date of February 1st? Yes, we want the store open the first week in February. Early February is when the Garden and Home Show conference hits the Springs area. Well have a trade show booth there. We know from experience in other areas that our stores generally see a surge in sales during this month as a result of the trade show. Its a great way to get a lot of advertising out there and let folks know where were located. Tell me, Dirk, is there a budget set for this project yet? We havent set a hard figure, Dirk replies. But again, from past experience we know it takes anywhere from $1.5 to $2 million to open a new store. And we dont want to forget the big bash at grand opening. You thank Dirk and tell him youre going to contact Jake, Ricardo, and Jill to ask them a few questions about the project goals. Dirk concludes with, Feel free to come to me with questions or concerns at any time. You document what youve learned so far in your project overview document. You decide to e-mail a summary of your notes to Jake, Ricardo, and Jill for their review before meeting with them personally. Project Case Study Checklist Project Goal: To open a new store in Colorado Springs six months from today. Demand: Company data concludes that the Kitchen Heaven consumers have incomes of over $50,000 a year. The Colorado Springs area is home to a large number of people with that income. Currently, there is not a Kitchen Heaven there, but there appears to be a demand for one. Project Sponsor: Dirk Perrier, VP of marketing. Stakeholders: Jake Peterson, Ricardo Ramirez, and Jill Overstreet. Organizational Structure: Functional organization with a separate projectized department. Constraints: Time. Assumptions: A store build-out usually takes 120 days. Jill Overstreet will help with the initial store stocking. Jake Peterson will supervise over facilities and store build-outs as well. Ricardo Ramirez will provide IT details. The budget for the project will be anywhere from $1.5 to $2 million. Summary We started out this chapter with a discussion of the nine Project Management Knowledge Areas from the Guide to the PMBOK. Knowledge areas bring together the project processes that have things in common. This allows the project manager the opportunity to assign resources with specific skills to multiple project processes. Sometimes these resources might be able to combine project processes and perform them as one activity. Projects come about as a result of one of six needs or demands, according to the Guide to the PMBOK: marketing demand, business need, customer requests, technological advances, legal requirements, and social needs. Project Initiation is the first process in a projects life cycle. Initiation is the formal recognition that a project, or project phase, should begin and commits the organization to dedicate resources to the project. The Initiation process has four inputs: product description, strategic plan, project selection criteria, and historical information. These inputs are developed using tools and techniques of the Initiation process to produce the final outputs. Project managers, according to the Guide to the PMBOK, are not identified and assigned until the completion of the Initiation process. In reality, project managers usually are identified at the beginning of the Initiation process. The project goal is the purpose for undertaking the project. Goals should be SMART: specific, measurable, accurate, realistic, and time bound. Projects can also be defined using the SMART acronym. Interview stakeholders to determine project goals and begin to understand deliverables of the project. Get to know your stakeholders so that you understand the parts they play and how much authority they have. It doesnt hurt to also get familiar with their position in the organization, how much power they have, and how they interact with other stakeholders. Constraints can restrict or dictate the actions of the project team. Constraints usually involve time, budget, and quality but can also include schedules, technology, and more. Document your constraints as theyll be used as inputs to future project processes. Throw out that old saying about assumptions and document these as well. Exam Essentials Be able to name the nine Project Management Knowledge Areas.Project Integration Management, Project Scope Management, Project Time Management, Project Cost Management, Project Quality Management, Project Human Resource Management, Project Communications Management, Project Risk Management, and Project Procurement Management. Be able to distinguish between the six needs or demands that bring about project creation.Marketing demand, business need, customer requests, technological advances, legal requirements, and social needs. Be able to denote the project Initiation inputs.Product description, strategic plan, project selection criteria, and historical information. Be able to identify the purpose for the project Initiation process.To recognize the existence of a new project or project phase, and to commit resources to begin the project or project phase. Be able to define project constraints and assumptions.Project constraints limit the options of the project team and restrict their actions. Sometimes constraints dictate actions. Time, budget, and quality are the most common constraints. Assumptions are conditions that are presumed to be true or real. Key Terms Before you take the exam, be certain you are familiar with the following terms: assumptionProject Management Knowledge AreasconstraintProject Procurement Managementfeasibility studyProject Quality ManagementInitiationProject Risk ManagementProject Communications ManagementProject Scope ManagementProject Cost ManagementProject Time ManagementProject Human Resource ManagementrequirementProject Integration ManagementReview Questions 1. The Project Integration Management knowledge area is made up of which of the following processes? Initiation, Project Plan Development, and Integrated Change Control Project Plan Development, Project Plan Execution, and Integrated Change Control Project Plan Development, Initiation, and Scope Planning Initiation, Scope Planning, and Integrated Change Control HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=735461999" \l "answer.nr-qandaentry.2B94192F-39D3-43E8-AF82-E08BAAF3622E488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.2B94192F-39D3-43E8-AF82-E08BAAF3622E488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 2. When a project is being performed under contract, the product description is provided by which of the following? The buyer The project sponsor The project manager The contractor HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=735461999" \l "answer.nr-qandaentry.8AE61CB1-4256-4123-BC6B-3839428A0DFC488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.8AE61CB1-4256-4123-BC6B-3839428A0DFC488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 3. You are the project manager for Fun Days vacation packages. Your new project assignment is to head up the Fun Days resort opening in Austin, Texas. You are estimating the duration of the project plan activities, devising the project schedule, and monitoring and controlling deviations from the schedule. Which of the Project Management Knowledge Areas are you working in? Project Scope Project Quality Project Integration Project Time HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=735461999" \l "answer.nr-qandaentry.775B68EF-7562-4756-B2A3-C7357E800147488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.775B68EF-7562-4756-B2A3-C7357E800147488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 4. The Project Human Resource Management knowledge area contains which of the following processes? Staff Acquisition, Team Development, and Resource Planning Staff Acquisition, Team Development, and Performance Reporting Organizational Planning, Staff Acquisition, and Team Development Organization Planning, Team Development, and Resource Planning  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=735461999" \l "answer.nr-qandaentry.35C8EB14-456B-42C6-AE92-559578A6DD5B488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.35C8EB14-456B-42C6-AE92-559578A6DD5B488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 5. Your company is going to introduce a new service called Phone Home. This service will allow you to speak the name of the person you want to call into your cellular phone. To call home, you would simply speak the word home into the phone, and it will dial that number for you. Your company is taking advantage of the progress that has been made recently with voice recognition software. Initial projections show that market demand is very high for this product. This project came about as a result of which of the following? Marketing demand Customer request Business need Technological advance HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=735461999" \l "answer.nr-qandaentry.6A89628C-5F70-4F01-B485-976851244995488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.6A89628C-5F70-4F01-B485-976851244995488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 6. You are a project manager for the information technology division of a local satellite TV broadcasting company. This spring, the chief information officer for your company gave you the project to convert and upgrade all the PCs in the department to the latest release of a specific desktop application. Prior to this conversion, all manner of desktop software existed on machines throughout the company and had caused increasing problems with sharing files and information across the company. A lot of unproductive hours were spent typing information into several formats. This project came about as a result of which of the following? Technological advance Business need Customer request Legal requirement  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=735461999" \l "answer.nr-qandaentry.468EA2C1-3713-4A2C-9394-2A1AADF46305488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.468EA2C1-3713-4A2C-9394-2A1AADF46305488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 7. What are the inputs to the Initiation process? Product description, strategic plan, project selection criteria, and historical information Product description, strategic plan, project overview document, and historical information Strategic plan, project overview document, feasibility study, and historical information Product description, strategic plan, constraints, and assumptions HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=735461999" \l "answer.nr-qandaentry.1C2F3662-EE7D-4B6C-873E-C963DE58FA76488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.1C2F3662-EE7D-4B6C-873E-C963DE58FA76488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 8. You work for a large manufacturing plant. Youre working on a new project for an overseas product release. This is the companys first experience in the overseas market, and they hope to make a big splash with the introduction of this product. The project entails producing your product in a concentrated formula and packaging it in smaller containers than the U.S. product uses. A new machine is needed in order to mix the first set of ingredients in the concentrated formula. Which of the following is true? The new machine, the concentrated formula, and the smaller package are each project constraints. The new machine, the concentrated formula, and the smaller package description must be incorporated into the product description document. The new machine, the concentrated formula, and the smaller package are each project assumptions. The new machine, the concentrated formula, and the smaller package are each considered deliverables.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=735461999" \l "answer.nr-qandaentry.F4AF8C42-B818-4BCF-9870-2E846547550D488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.F4AF8C42-B818-4BCF-9870-2E846547550D488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 9. You work for a large manufacturing plant. Youre in the Initiation process of a new project for an overseas product release. This is the companys first experience in the overseas market, and they hope to make a big splash with the introduction of this product. The project entails producing your product in a concentrated formula and packaging it in smaller containers than the U.S. product uses. A new machine is needed in order to mix the first set of ingredients in the concentrated formula. Which of the following actions should the project manager take? The project manager should document the projects goals and known deliverables in a high-level overview document and recommend the project proceed. The project manager should document the projects goals and known deliverables in a high-level overview document and assume the project is a go. The project manager should document the projects goals and known deliverables in a high-level overview document and recommend a feasibility study be performed. The project manager should document the projects goals and known deliverables in a high-level overview document and deliver it to the stakeholders.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=735461999" \l "answer.nr-qandaentry.4C52A6D9-FDE5-4AF8-89D4-7CC0AEC1AAF3488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.4C52A6D9-FDE5-4AF8-89D4-7CC0AEC1AAF3488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 10. What are the Initiation process outputs? Project charter, identification and assignment of project manager, constraints, and project overview documents Project charter, project overview, feasibility study, and constraints Project charter, identification and assignment of project manager, constraints, and assumptions Identification and assignment of project manager, project overview, constraints, and assumptions  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=735461999" \l "answer.nr-qandaentry.84F819A1-12AC-45BE-B645-254E56CC59F6488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.84F819A1-12AC-45BE-B645-254E56CC59F6488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 11. The purpose of the Initiation process is to: Formally recognize the existence of a project or project phase Formally recognize the need that brought about the project be it marketing demand, customer requests, business need, technological advances, or legal requirements Formally recognize the stakeholders of the project and identify them in the project charter Formally recognize the project sponsor and document his or her project goals HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=735461999" \l "answer.nr-qandaentry.DE2FC339-E46D-40C9-97B7-5FB4F04C9A3D488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.DE2FC339-E46D-40C9-97B7-5FB4F04C9A3D488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 12. Your nonprofit organization is preparing to host its first annual 5K run/walk in City Park. You worked on a similar project for the organization two years ago when it co-hosted the 10K run through Overland Pass. Which of the Initiation process inputs might be helpful to you on your new project? The strategic plan, because youll want to make sure the project reflects the overall strategic direction of the organization. Historical information on the 10K run project. You might be able to gather helpful project information since this new project is similar in nature. The product description, which would describe all the details of the run/ walk program. Historical information from the recent blood drive project.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=735461999" \l "answer.nr-qandaentry.B7B46EAE-5275-42A6-859D-B064BC32114F488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.B7B46EAE-5275-42A6-859D-B064BC32114F488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 13. Which of the following is true regarding product descriptions? The product description is an output of the Initiation process. It describes the characteristics of the product or service. The product description is an output of the Initiation process. It describes the characteristics of the product or service and contains less detail in the early phases of the project. The product description is an input of the Initiation process. It describes the characteristics of the product or service and contains a lot of detail in the early phases of the project. The product description is an input of the Initiation process. It describes the characteristics of the product or service.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=735461999" \l "answer.nr-qandaentry.74BD8109-4B0D-4BAD-8587-54000ACE374C488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.74BD8109-4B0D-4BAD-8587-54000ACE374C488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 14. Deliverables can be described as: The purpose for undertaking the project The verifiable results of products or services that must be produced to consider the project complete The specifications regarding the goals of the project that must be produced to consider the project complete The measurable outcomes of the project goals HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=735461999" \l "answer.nr-qandaentry.E4042157-B375-4087-8E14-E4B0C39291A7488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.E4042157-B375-4087-8E14-E4B0C39291A7488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 15. You are a project manager working on a new software product your company plans to market to businesses. The project sponsor told you that the project must be completed by September 1. The company plans to demo the new software product at a trade show in late September and therefore needs the project completed in time for the trade show. However, the sponsor has also told you that the budget is fixed at $85,000 and cannot be increased by even $10 due to overall budget cuts this year. You must complete the project within the given time frame and budget. Which of the following is the primary constraint for this project? Budget Quality Time Schedule  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=735461999" \l "answer.nr-qandaentry.B0E77ADC-CBA9-4B6D-BE47-9267AEAFDC8B488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.B0E77ADC-CBA9-4B6D-BE47-9267AEAFDC8B488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 16. You are a project manager for a documentary film company. In light of a recent national tragedy, the company president wants to get a new documentary on the rescue efforts of the heroic firefighters to air as soon as possible. Shes looking to you to make this documentary the best thats ever been produced in the history of this company. She guarantees you free rein to use whatever resources you need to get this project done quickly. However, the best photographer in the company is currently working on another assignment. Which of the following is true? The primary constraint is time because the president wants the film done quickly. She told you to get it to air as soon as possible. Resources are the primary constraint. Even though the president has given you free rein on resource use, you assume she didnt mean those actively assigned to projects. The schedule is the primary constraint. Even though the president has given you free rein on resource use, you assume she didnt mean those actively assigned to projects. The photographer wont be finished for another three weeks on his current assignment, so schedule adjustments will have to be made. The primary constraint is quality because the president wants this to be the best film ever produced by this company. Shes given you free rein to use whatever resources needed to get the job done.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=735461999" \l "answer.nr-qandaentry.D9C0F6E9-AF5F-4C84-86E4-7D136BC6A0E4488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.D9C0F6E9-AF5F-4C84-86E4-7D136BC6A0E4488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 17. What limits the options of the project team? Technology Constraints Deliverables Assumptions HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=735461999" \l "answer.nr-qandaentry.0FC85240-81B0-41C0-AF6F-3AE66065F318488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.0FC85240-81B0-41C0-AF6F-3AE66065F318488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 18. Your project depends on a key deliverable from a vendor youve used several times before with great success. Youre counting on the delivery to arrive on June 1. This is an example of: Constraint Objective Assumption Goal  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=735461999" \l "answer.nr-qandaentry.3AB607ED-CAFE-4D1F-BF46-083E8B4D916F488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.3AB607ED-CAFE-4D1F-BF46-083E8B4D916F488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 19. Halloween is approaching fast. Your market research shows that the little yellow chicks and pink bunny marshmallow candies are the best-selling candy at Easter time, outselling all other types of candies. This prompts the company to introduce a new version of marshmallow candies with Halloween themes this season. Which of the following is true? This project came about due to customer request, and the primary constraint is time. This project came about due to market demand, and the primary constraint is time. This project came about due to market demand, and the primary constraint is quality. This project came about due to customer request, and the primary constraint is quality.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=735461999" \l "answer.nr-qandaentry.9F9DB9D4-087B-47A8-BD43-026B4C6E2BEB488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.9F9DB9D4-087B-47A8-BD43-026B4C6E2BEB488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 20. Your company provides answering services for several major catalog retailers. The number of calls coming into the service center per month has continued to increase over the past 18 months. The phone system is approaching the maximum load limits and needs to be upgraded. Youve been assigned to head up the upgrade project. Based on the companys experience with the vendor who worked on the last phone upgrade project, youre confident theyll be able to assist you with this project as well. Which of the following is true? Youve made an assumption about vendor availability and expertise. The project came about due to a business need. Vendor availability and expertise are constraints. The project came about due to a business need. Youve made an assumption about vendor availability and expertise. The project came about due to a marketing demand. Vendor availability and expertise are constraints. The project came about due to a marketing demand.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=735461999" \l "answer.nr-qandaentry.AC69ED2E-7004-413F-BF8F-D5872CE51643488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.AC69ED2E-7004-413F-BF8F-D5872CE51643488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET Answers  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=735461999" \l "nr-qandaentry.2B94192F-39D3-43E8-AF82-E08BAAF3622E488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.2B94192F-39D3-43E8-AF82-E08BAAF3622E488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 1.B Project Integration is made up of Project Plan Development, Project Plan Execution, and Integrated Change Control HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=735461999" \l "nr-qandaentry.8AE61CB1-4256-4123-BC6B-3839428A0DFC488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.8AE61CB1-4256-4123-BC6B-3839428A0DFC488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 2.A The buyer provides product descriptions when projects are performed under contract. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=735461999" \l "nr-qandaentry.775B68EF-7562-4756-B2A3-C7357E800147488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.775B68EF-7562-4756-B2A3-C7357E800147488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 3.D Project Time Management involves the following processes: Activity Definition, Activity Sequencing, Activity Duration Estimating, Schedule Development, and Schedule Control. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=735461999" \l "nr-qandaentry.35C8EB14-456B-42C6-AE92-559578A6DD5B488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.35C8EB14-456B-42C6-AE92-559578A6DD5B488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 4.C The Human Resources knowledge area involves managing people and relationships. It includes Organizational Planning, Staff Acquisition, and Team Development. Remember that Resource Planning is part of the Project Cost Management Knowledge area, not Human Resource Management. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=735461999" \l "nr-qandaentry.6A89628C-5F70-4F01-B485-976851244995488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.6A89628C-5F70-4F01-B485-976851244995488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 5.D The correct answer is technological advance. Marketing demand is high for the service, but the service did not come about as a result of customers asking for it; rather, it came to market because of the advances in technology. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=735461999" \l "nr-qandaentry.468EA2C1-3713-4A2C-9394-2A1AADF46305488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.468EA2C1-3713-4A2C-9394-2A1AADF46305488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 6.B This came about due to a business need. Staff members were spending unproductive hours producing the same information, thus causing the company a loss. The time the employees spent retyping information that was already written could have been spent doing something more productive.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=735461999" \l "nr-qandaentry.1C2F3662-EE7D-4B6C-873E-C963DE58FA76488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.1C2F3662-EE7D-4B6C-873E-C963DE58FA76488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 7.A Initiation has four process inputs. Constraints and assumptions are outputs of the Initiation process. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=735461999" \l "nr-qandaentry.F4AF8C42-B818-4BCF-9870-2E846547550D488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.F4AF8C42-B818-4BCF-9870-2E846547550D488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 8.D Deliverables are tangible, verifiable outcomes or items that must be produced in order to complete the project or project phase. These items wouldnt be considered goals because the goal of the project is to break into the overseas market with a successful product revamped for that audience. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=735461999" \l "nr-qandaentry.4C52A6D9-FDE5-4AF8-89D4-7CC0AEC1AAF3488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.4C52A6D9-FDE5-4AF8-89D4-7CC0AEC1AAF3488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 9.C The most correct answer is to perform a feasibility study. Since this project is taking the company into a new, unknown market, theres lots of potential for error and failure. A feasibility study would help the stakeholders determine if the project is viable and cost effective, and whether it has a high potential for success. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=735461999" \l "nr-qandaentry.84F819A1-12AC-45BE-B645-254E56CC59F6488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.84F819A1-12AC-45BE-B645-254E56CC59F6488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 10.C Project Initiation outputs are the project charter, identification and assignment of the project manager, constraints, and assumptions. Remember for the test that project managers arent officially assigned until the end of Initiation (as an output) but in reality are often times assigned at the beginning of the Initiation process. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=735461999" \l "nr-qandaentry.DE2FC339-E46D-40C9-97B7-5FB4F04C9A3D488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.DE2FC339-E46D-40C9-97B7-5FB4F04C9A3D488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 11.A Initiation formally recognizes the existence of a project. Stakeholders might be identified in the Initiation process but according to the Guide to the PMBOK are officially identified during the Planning process.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=735461999" \l "nr-qandaentry.B7B46EAE-5275-42A6-859D-B064BC32114F488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.B7B46EAE-5275-42A6-859D-B064BC32114F488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 12.B Historical information on projects of a similar nature can be very helpful when initiating new projects. They can help in formulating project deliverables and identifying constraints and assumptions, and will be helpful further on in the project Planning process as well. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=735461999" \l "nr-qandaentry.74BD8109-4B0D-4BAD-8587-54000ACE374C488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.74BD8109-4B0D-4BAD-8587-54000ACE374C488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 13.D Product descriptions are inputs to Initiation and contain less detail in the beginning phases of a project and more detail as the project progresses. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=735461999" \l "nr-qandaentry.E4042157-B375-4087-8E14-E4B0C39291A7488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.E4042157-B375-4087-8E14-E4B0C39291A7488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 14.B Deliverables are measurable or verifiable results or specific items that must be produced in order to consider the project complete. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=735461999" \l "nr-qandaentry.B0E77ADC-CBA9-4B6D-BE47-9267AEAFDC8B488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.B0E77ADC-CBA9-4B6D-BE47-9267AEAFDC8B488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 15.C The primary constraint is time. Since the trade show demos depend on project completion and the trade show is in late September, the date cannot be moved. The budget is the secondary constraint in this example. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=735461999" \l "nr-qandaentry.D9C0F6E9-AF5F-4C84-86E4-7D136BC6A0E4488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.D9C0F6E9-AF5F-4C84-86E4-7D136BC6A0E4488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 16.D The primary constraint is quality. If you made the assumption as stated in selection B, you assumed incorrectly. Clarify these assumptions with your stakeholders and project sponsors. This applies to option C as well.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=735461999" \l "nr-qandaentry.0FC85240-81B0-41C0-AF6F-3AE66065F318488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.0FC85240-81B0-41C0-AF6F-3AE66065F318488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 17.B Constraints restrict the actions of the project team. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=735461999" \l "nr-qandaentry.3AB607ED-CAFE-4D1F-BF46-083E8B4D916F488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.3AB607ED-CAFE-4D1F-BF46-083E8B4D916F488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 18.C This is an example of an assumption. Youve used this vendor before and not had any problems. Youre assuming there will be no problems with this delivery based on your past experience. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=735461999" \l "nr-qandaentry.9F9DB9D4-087B-47A8-BD43-026B4C6E2BEB488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.9F9DB9D4-087B-47A8-BD43-026B4C6E2BEB488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 19.B Market research shows the demand for the candies is extremely high during the Easter season. Its highly likely sales would be high during the Halloween season as well. Time is the constraint as Halloween is driven by a hard date. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=735461999" \l "nr-qandaentry.AC69ED2E-7004-413F-BF8F-D5872CE51643488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.AC69ED2E-7004-413F-BF8F-D5872CE51643488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 20.A The project came about due to a business need. The phones have to be answered as thats the core business. Upgrading the system to handle more volume is a business need. An assumption has been made regarding vendor availability. Always validate your assumptions. INCLUDEPICTURE "http://www.books24x7.com/images/_.gif" \* MERGEFORMATINET  Chapter 3: Creating a Project Charter PMP Exam Content from the Project Initiation Performance Domain Covered in This Chapter: Define Strategy. Identify Performance Criteria. Determine Resource Requirements. Define Budget. Produce Formal Documentation. The second half of  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=88" \l "88" \t "_parent" Chapter 2 started us on the journey into the project life cycle processes with an introduction to project Initiation. Weve already learned how to identify and document the goals of the project. And we talked about project deliverables, constraints, and assumptions. This chapter formally recognizes the launching of the project with the creation of a project charter. Well conclude the project Initiation process with this chapter and begin the Planning process in  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=220" \l "220" \t "_parent" Chapter 4. Well discuss one more input to the Initiation process and the tools and techniques of project Initiation, and then finish up the chapter with documenting the project charter. The primary goal of the Initiation process is to produce the project charter. Using Project Selection Methodologies Project selection methodologies will vary depending on the company, the people serving on the selection committee, the criteria used, and the project. Sometimes selection criteria and methodologies will be purely financial, sometimes purely marketing, and sometimes theyll be based on public perception or political perception, or some combination of all of these and more. Well look at project selection criteria, which is how projects are selected and prioritized. Then well finish up with project selection methods, which calculate measurable differences between projects and determine the tangible benefits to the company of choosing or not choosing the project. Defining Project Selection Criteria Most organizations have a formal, or at least semiformal, process to select and prioritize projects. In my organization, a steering committee is responsible for project review, selection, and prioritization. A steering committee is a group of folks comprised of senior managers and sometimes midlevel managers who represent each of the functional areas in the organization. Heres how our process works. The steering committee requests project ideas from the business staff prior to the beginning of the fiscal year. These project ideas need to be developed into a project overview, or project concept document, like we discussed in  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=17" \l "17" \t "_parent" Chapter 1. These project overview documents contain the project goals, a description of the deliverables, the business justification for the project, a desired implementation date, what the organization stands to gain from implementing the project, a list of the functional business areas affected by the project, and if applicable a benefit/cost analysis (well talk about that in a bit). A special steering committee meeting is called to review the projects, and a determination is made on each project as to whether it will be included on the upcoming list of projects for the new year. Once the no-go projects have been weeded out, the remaining projects are prioritized according to their importance and benefit to the organization. The projects are documented on an official project list, and progress is reported on the active projects at the regular monthly steering committee meetings. In theory, its a great idea. In practice, it works only moderately well. Priorities can and do change throughout the year. New projects come up that werent originally submitted during the call for projects that must be added to the list. Reprioritization begins anew, and resource alignment and assignments are shuffled. But again, were getting ahead of ourselves. Just be aware that organizations usually have a process to recognize and screen project requests, accept or reject those requests based on some selection criteria, and prioritize the projects based on some criteria. Large, complex projects may be subject to further review via a feasibility study before a decision can be made to accept the project. You will recall that feasibility studies determine the viability of the project and help the company determine if the product or service of the project is marketable, profitable, safe, and doable. Whats the criteria? Funny you should ask. Project selection criteria is an input to the project Initiation process. According to the Guide to the PMBOK, project selection criteria is concerned with the product of the project. In other words, selection criteria is concerned with what the product or service of the project will produce and how it will benefit the company. Selection criteria concerns every area of business from marketing to finance to information technology to human resources. It can be subjective or objective. Criteria for judging project selection could include financial measurements. For example, the selection criteria might dictate that projects must increase profits by a certain percentage in order to be considered. Equally, project selection criteria might include the criteria that an increase in market share or an increase in the public awareness of the company or product will be enjoyed as a result of this project. There arent any rules for project selection as the components of selection criteria are up to the company, steering committee, or project review committee to determine. Predetermined selection criteria, such as mentioned above, is one aspect of project selection, but so is the individual opinion, and power, of selection committee members. Dont underestimate the importance of the authority, political standing, and individual aspirations of selection committee members. Those committee members who happen to carry a lot of weight in company circles, so to speak, are likely to get their projects approved just on the fact that they are who they are. This is sometimes how project selection works in my organization. How about yours? Describing Project Selection Methods Project selection criteria, as we just discussed, is an input to the Initiation process. Project selection methods are a technique used during the Initiation process to pick one project over another or to measure one particular projects benefit to the organization. Selection criteria differs from selection methods in that selection criteria is concerned with the product of the project and selection methods measure the benefits of the project, or they compare the measurable benefits of one project against another. According to the Guide to the PMBOK, there are two categories of selection methods: benefit measurement methods and constrained optimization methods. Well discuss constrained optimization methods first. For the purposes of the exam, all you need to understand about constrained optimization methods is they are mathematical models that use linear, dynamic, integer, nonlinear, and/or multiobjective programming in the form of algorithmsor in other words, a specific set of steps to solve a particular problem. These are complicated mathematical formulas and algorithms that are beyond the scope of this book and require an engineering, statistical, or mathematical background to fully understand. Projects of enormous complexity would use techniques such as these to make decisions regarding projects. The vast majority of project selection techniques will use the benefit measurement methods to make project selection decisions. Benefit measurement methods employ various forms of analysis and comparative approaches to make project selections. One common form of analy-sis is the benefit/cost analysis. This compares the financial benefits to the company of performing the project to the costs of implementing the project. Obviously, a sound project choice is one where the costs to implement or produce the product of the project are less than the financial benefits. How much less is an individual decision. Some companies are comfortable with a small margin, others with a much larger margin between the two figures. When examining costs for the benefit/cost analysis, include the costs to produce the product or service, costs to take the product to market, and ongoing operational support costs. For example, lets say your company is considering writing and marketing a database software product that will allow banks to dissect their customer base, determine which types of customers buy which types of products, and then market more effectively to those customers. Some of the costs you will take into account are the costs to develop the software such as programmer costs, hardware costs, testing costs, etc; marketing costs such as advertising, traveling costs to perform demos at potential customer sites, etc.; and ongoing costs such as having a customer support staff available during business hours to assist customers with product questions and problems. Lets say the cost to produce this software plus the ongoing support costs total $5 million. Initial projections look like demand for this product is high. Over a 3-year period, the potential life of the software in its proposed form, projected revenues are $12 million. Taking only the financial information into account, the benefits outweigh the costs of this project. This project should receive a go recommendation. Projects of significant cost or complexity usually take into account more than one benefit measurement method when making go or no-go decisions, or deciding on one project over another. Keep in mind that selection methods can take subjective matter into account as wellthe project is a go because its the new CEOs pet project; nothing else needs to be said. Another project selection technique in the benefit measurement category is a scoring model, or weighted scoring model. My organization uses weighted scoring models to not only choose between projects, but also as a method to choose between competing bids on outsourced projects. Weighted scoring models are quite simple. The project selection committee should decide on the criteria that will be used on the scoring modelfor example, profit potential, marketability of the product or service, the ability of the company to quickly and easily produce the product or service, and so on. Each of these criteria is assigned a weight, depending on the importance of the criteria to the project committee. More important criteria should carry a higher weight than the less important criteria. Then, each project is rated on a scale from 1 to 5 (or some such assignment) with the higher number being the more desirable outcome to the company and the lower number having the opposite effect. This rating is then multiplied by the weight of the criteria factor and added to other weighted criteria scores for a total weighted score. Lets look at an example that brings this together (see  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=309638015" \l "wbpch03T1P1#wbpch03T1P1" Table 3.1). Table 3.1: Weighted Scoring Model CriteriaWeightProject A Score*Project B Score*Project C Score*Profit potential5553Marketability3434Ease to produce/ support1432Weighted score413729*5 = highest.In this example, Project A is the obvious choice. The remaining benefit measurement methods involve a variety of cash flow analysis techniques including payback period, discounted cash flows, net present value, and internal rate of return. Well look at each of these techniques individually and provide you with a crash course on their meanings and calculations. Payback Period The payback period is the length of time it takes the company to recoup the initial costs of producing the product or service of the project. This method compares the initial investment to the cash inflows expected over the life of the product or service. For example, say the initial investment on our project is $200,000 with expected cash inflows of $25,000 per quarter every quarter for the first 2 years, and $50,000 per quarter from thereon. The payback period is 2 years and can be calculated as follows: Cash inflows = $25,000 4 (quarters in a year) = $100,000/year total inflow Year 1 inflows = $100,000 Year 2 inflows = $100,000 Total = $200,000 Payback is reached in 2 years. The fact that inflows are $50,000 per quarter starting in year 3 makes no difference as payback is reached in 2 years. Payback period is the least precise of all the cash flow calculations. Thats because payback period does not consider the value of the cash inflows made in later years, commonly called the time value of money. For example, if you had a project with a 5-year payback period, the cash inflows in year 5 would be worth less than they would be were we to receive them today. The  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=309638015" \l "wbpch03P45488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#wbpch03P45488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" next section will explain this idea more fully. Discounted Cash Flows As I just stated, money received in the future is worth less than money received today. The reason for that is the time value of money. If I borrowed $2000 from you today and promised to pay it back in 3 years, you would expect me to pay interest in addition to the original amount borrowed. Okay, if you were a family member or really close friend maybe you wouldnt, but ordinarily this is the way it works. You would have had the use of the $2000 had you not lent it to me. If you had invested the money (Does this bring back memories of your mom telling you to save your money?), youd receive a return on that money. Therefore, the future value of the $2000 you lent me today is $2315.25 in 3 years from now at 5 percent interest per year. Heres the formula for future value calculations: FV = PV (1 + i)n In English, this formula says the future value (FV) of the investment equals the present value (PV) times (1 plus the interest rate) times the number of time periods the interest is paid. Lets plug in our numbers: FV = 2000 (1.05)3 FV = 2000 (1.157625) FV = $2315.25 The discounted cash flow technique compares the value of the future cash flows of the project to todays dollars. In order to calculate discounted cash flows, we need to know the value of the investment in todays terms, or the present value (PV). PV is calculated as follows: PV = FV (1 + i)n This is the reverse of the FV formula we talked about earlier. So, if we asked the question what is $2315.25 in 3 years from now worth today given a 5 percent interest rate, wed used the formula above. Lets try it. PV = $2315.25 (1 + .05)3 PV = $2315.25 1.157625 PV = 2000 $2315.25 in 3 years from now is worth $2000 today. Discounted cash flow is calculated just like this for the projects youre comparing for selection purposes. Apply the PV formula to the projects youre considering and then compare the discounted cash flows of all the projects against each other to make a selection. Here is an example comparison of two projects using this technique: Project A is expected to make $100,000 in 2 years. Project B is expected to make $120,000 in 3 years. If the cost of capital is 12 percent, which project should you choose? Using the PV formula above, calculate each projects worth. The PV of Project A = $79,719. The PV of Project B = $85,414. Project B is the project that will return the highest investment to the company and should be chosen over Project A. Net Present Value Projects generally begin with a company investing some amount of money into the project to complete and accomplish its goals. In return, the company expects to receive revenues, or cash inflows, from the resulting project. Net present value (NPV) allows you to calculate an accurate value for the project. The mathematical formula for NPV is complicated, and you do not need to memorize it in that form for the test. However, you do need to know how to calculate NPV for the exam. Ive given you some examples of a less complicated way to perform this calculation in  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=309638015" \l "wbpch03T2P2#wbpch03T2P2" Tables 3.2 and  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=309638015" \l "wbpch03T3P3488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#wbpch03T3P3488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 3.3 using the formulas youve already seen. Net present value works like discounted cash flows in that you bring the value of future monies received into todays dollars. With NPV, you evaluate the cash inflows using the discounted cash flow technique applied to each period the inflows are expected instead of in one sum. The total present value of the cash flows is then deducted from your initial investment to determine NPV. NPV assumes that cash inflows are reinvested at the cost of capital. Heres the rule, if the NPV calculation is greater than zero, accept the project. If the NPV calculation is less than zero, reject the project. Look at the example below of two projects (see  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=309638015" \l "wbpch03T2P2#wbpch03T2P2" Tables 3.2 and  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=309638015" \l "wbpch03T3P3488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#wbpch03T3P3488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 3.3). Project A and Project B have total cash inflows that are the same at the end of the project, but the amount of inflows at each period differs for each project. Well stick with a 12 percent cost of capital. Note that the PV calculations were rounded to two decimal places. Table 3.2: Project A YearInflowsPV110,0008,929215,00011,96235,0003,559Total30,00024,450Less investment24,000NPV 450  Table 3.3: Project B YearInflowsPV17,0006,250213,00010,367310,0007,118Total30,00023,735Less investment24,000NPV <265>Project A has an NPV greater than zero and should be accepted. Project B has an NPV less than zero and should be rejected. When you get a positive value for NPV, it means that the project will earn a return at least equal to or greater than the cost of capital. Another note on NPV calculations: Projects with high returns early in the project are better projects than projects with lower returns early in the project. In our example above, Project A fits this criteria also. Internal Rate of Return The internal rate of return (IRR) is the most difficult equation of all the cash flow techniques weve discussed. It is a complicated formula and should be performed on a financial calculator or computer. IRR can be figured manually, but its a trial-and-error approach to get to the answer. Technically speaking, IRR is the discount rate when the present value of the cash inflows equals the original investment. Projects with higher IRR values are generally considered better than projects with low IRR values. For the exam, you need to know that IRR is the discount rate when NPV equals zero, IRR assumes that cash inflows are reinvested at the IRR value, and you should choose projects with the highest IRR value. Project Selection Methods One, two, or several of these methods can be used alone or in combination to come up with a selection decision. Remember that payback period is the least precise, NPV is the most conservative approach, and NPV and IRR will generally bring you to the same accept/reject conclusion. Project selection methods, and particularly the benefit measurement methods, can be used to evaluate multiple projects or a single project. You might be weighing one project against another, or simply considering if the project youre proposing is worth doing. Constrained optimization methods and benefit measurement methods are often called decision models. For the exam, remember that decision models are used as project selection methods (tools and techniques) not as project selection criteria (input). Also note that the financial benefit measurement methods and the benefit/cost methods can be used for project justification, which we will discuss in  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=220" \l "220" \t "_parent" Chapter 4. Ill refer you back to this section to review these methods when we get to project justification in the  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=220" \l "220" \t "_parent" next chapter. Expert judgment is the last tool and technique in the Initiation process. The concept behind expert judgment is to rely on individuals, or groups of people, who have training, specialized knowledge, or skills in the areas youre assessing. In the case of project Initiation, expert judgment would be helpful in assessing the inputs to the Initiation processi.e., product descriptions, strategic plan, project selection criteria, and historical information. For example, as the project manager, you might rely on the expertise of your executive committee to determine how the proposed project gels with the strategic plan. Or, you might rely on team members who have participated on similar projects in the past to make recommendations regarding the proposed project. Expert judgment is a tool and technique used in many other planning processes as well. According to the Guide to the PMBOK, experts might be found in other departments within the organization, external or internal consultants, professional and technical associations, or industry groups.  INCLUDEPICTURE "http://www.books24x7.com/book/id_3964/_.gif" \* MERGEFORMATINET Real World ScenarioFun Days Vacation Resorts Jerry is project manager for Fun Days Vacation Resorts. He is working on three different project proposals to present to the executive steering committee for review. As part of the information-gathering process, Jerry attends the various resorts pretending to be a guest. This gives him a feel for what Fun Days guests experience on their vacations, and it better prepares him to present project particulars and alternatives. Jerry has prepared the project overviews for three projects and called upon the experts in marketing to help him out with the projected revenue figures. He works up the numbers and finds the following: Project Apayback period = 5 years; IRR = 38 percent Project Bpayback period = 3.5 years; IRR = 23 percent Project Cpayback period = 2 years; IRR = 23 percent Funding exists for only one of the projects. Jerry recommends Project A and predicts this is the project the steering committee will choose since the projects are mutually exclusive. Jerrys turn to present comes up at the steering committee. Lets listen in on the action. And, on top of all the benefits Ive just described, Project A provides an IRR of 38 percent, a full 15 percent higher than the other two projects we discussed. I recommend the committee choose Project A. Thank you Jerry, Colleen says. Good presentation. Colleen is the exe-cutive chairperson of the steering committee and has the authority to break ties or make final decisions when the committee cant seem to agree. However, here at Fun Days we like to have our fun sooner rather than later. Chuckles ensue from the steering committee. Theyve all heard this before. I do agree that a 38 percent IRR is a terrific return, but the payback is just too far out into the future. There are too many risks and unknowns for us to take on a project with a payback period this long. As you know, our industry is directly impacted by the health of the economy. Anything can happen in 5 years time. I think were much better off going with Project C. I recommend we accept Project C. Committee members, do you have anything to add? Identifying the Projects Initial Requirements Were close to wrapping up the Initiation phase with the publication of the project charter. But weve got one more stop to make before we get to the project charter. This section covers project requirementsnot like the requirements of the product of the project we talked about in  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=88" \l "88" \t "_parent" Chapter 2. These requirements are resource requirements and budget requirements needed to perform the work of the project. This is the last piece of information youll gather before writing the project charter. Most selection committees will want to have some feel for the impact the project will have on the organization in terms of resources and costs. We will delve much deeper into these two topics in  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=280" \l "280" \t "_parent" Chapter 5, where well talk at length about estimation techniques. For now, lets do an overview of each of these areas. NoteFor more information on estimation techniques, please see  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=280" \l "280" \t "_parent" Chapter 5, Resource Planning and Estimating.Defining Resource Requirements Its forecasted to be a great summer day, one of those perfect hiking or biking kind of days. You and a couple of friends decide a hike is just what you need and think itd be fun to bring along a light lunch. First, you dig out those old hiking boots youve had since college from the depths of the closet and blow the dust off them. Your feet are protected, now what about that lunch? You poke through the fridge and pull out some aged cheese, a fat bunch of red grapes, a loaf of crusty baguette, and a good bottle of Shiraz. Youll need glasses and a wine opener too. Next, you pull out that daypack you ordered from that outdoorsy catalog because it looked so cool and you knew it would come in handy one day. Sunscreen and maybe some chocolate sandwich cookies for your friends top off the loaded daypack. Youre all set. All you need now is to meet up with the friends, pile into the car, and drive to the trailhead. If we think of the hike as our projectIm using the term loosely in this case the resources can be considered the boots, food, glasses, wine opener, sunscreen, and daypack. Add your friends in the mix and the car to drive you to the trailhead and youve identified all the resources youre going to need for this project. Oh, a trail map might be handy too. This is exactly how resource identification works on projects. After youve identified the project goals and the project deliverables, you should have a fairly easy time of identifying the kinds of resources youre going to need to complete the project. These will vary from project to project. One known resource entity is human resources. All projects will need some human effort and intervention to carry out the project. Also consider things like equipment, materials, hardware, software, telephones, office space, travel arrangements, contractors, desks, network connections, etc. Some of these things may sound trivial, but consider the overall impact to the organization when determining what resources are needed. For example, if youre working on a large construction project and need to temporarily house the design team, they will need office furniture, telephones, PCs, design software, and network connections. Telephones and network connections might require new lines, which take time and money to install. My organization once engaged contractors to work on a project without considering office space, telephone lines, or network connections. The contractors showed up for work as planned and had no place to sit. We set up tables in the hallway for them and had the network team run long cables taped down to the floor out to their PCs on the tables until the project was over. And, they used their own cell phones for telephones. The project manager didnt do an adequate job of determining resource needs for this project. Unfortunately for this project manager, the contractor office space turned out to be the least important of the resource requirements he didnt think about. You will also want to detail the type of human resources youre going to need for your project. Does your project require specific skills? If so, note the skills needed. If they cannot be obtained internally, you will have to consider contractor help and factor that into the project costs. Does your project require the help of staff from other areas of the organization? Again, if so, document this. Briefly describe the roles and responsibilities of the key project team members, or key resources needed for the project. Include this information in the project charter. At this stage, you dont need every nitty-gritty detail. Youre looking for the big hitters that will take time, money, or people with specialized skills to implement. These are the kinds of resources the selection committee will want to know about. Determining the Initial Budget Identifying the initial budget is a lot like identifying the initial resource requirements. Again, the selection committee is looking for the major impacts to the organization regarding the costs of performing the project and purchasing necessary equipment or services to carry out project activities. A project budget needs to be established once the project is initiated so that project costs can be attributed directly to it. Breaking Down Project Costs Project costs can be broken down into roughly three areas. Human resource costs, resource or project costs, and administrative costs. The responsibility for determining these costs rests on either the project manager or a finance manager in a functional organization. Sometimes the budget is predetermined by the executive management staff and youre told what it is and have to work with what youre given. When you are the one responsible for determining the initial budget, there are a couple of places you can look that will help you with estimating project costs. One of the first places to consider is previous projects that are similar in scope to your project. Review the project documents from similar projects and use their total costs to give you a starting place. From there, you can make adjustments to your new budget according to the differences in scope and detail of the new project versus the one youre using as a reference. You can also talk with key team members, key stakeholders, or others with experience on similar projects and ask them what projects of this type have cost in the past. Theyre also good folks to run your initial budget figures by before making them public. Well talk more about cost-estimating techniques in  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=280" \l "280" \t "_parent" Chapter 5. Human Resource Costs Human resource, or personnel costs, can be one of your biggest expenses depending on the kind of project youre working on. Any project that is labor intensive, or requires highly specialized skills or knowledge, will likely have high personnel costs. Resource or Project Costs The project itself will have resource expenses directly related to the project. These are costs that are specific to the project, not the day-to-day operation expenses that well cover in a minute. These resource costs might be things like travel expense related to the project, long-distance phone bills, specialized talent hired for certain portions of the project, vendor fees, equipment purchases, hardware purchases, etc. Again, depending on the kind of project youre working on, resource expenses can be quite high as well. The construction of a new theme hotel on the Las Vegas strip, for example, could run into the tens of millions of dollars in material resources alone, let alone the human resource costs to design, construct, and build the hotel. Administrative Costs Administrative costs are the day-to-day type costs that keep the organization running, but are not directly related to the project. For example, office equipment, local phone charges, leases (unless office space or building space was leased specifically to house project members, in which case this expense would be a resource expense charged against the project), heat and lights, support personnel, etc. The project manager will want to identify the major expenses of the project and have some general thoughts about project costs to share with the selection committee. The project budget will be further defined once adequate estimating can be completed, and at that time, the final project budget can be submitted for approval. Formalizing and Publishing the Project Charter Weve covered a lot of material before finally getting to this point, formalizing and publishing the project charter. Thats because as youve seen, a lot of information goes into the project charter. This document is the foundation for the remaining project activity planning, execution, and control processes. Keep in mind if your project is performed under contract, the contract itself can serve as the project charter. The project charter is the official, written acknowledgment and recognition that a project exists. Its issued by senior management and gives the project manager authority to assign organizational resources to the work of the project. It is usually the first official document of the project once acceptance of the project has been granted. Good project charters that are well documented will address many of the questions your stakeholders are likely to have up front. If your charter is good, youll avoid a lot of issues early on. Pulling the Project Charter Together In order to create a useful and well-documented project charter, you will start with including a staple group of components. The project charter should include an overview of the project, its goals and objectives, the project deliverables, the business case or need for the project, resource and cost estimates, and a feasibility study if one was performed. The charter should describe the preliminary roles and responsibilities of the project manager, project staff, project sponsor, and executive management. We have covered most of these items in depth. Creating the project charter is a matter of incorporating all the information weve gathered so far, as outlined above, and putting it in the document. However, weve only touched on roles and responsibilities of key project members, so lets take a closer look at this area and then wrap up with some final notes on project charters. Project Manager The project manager is the person who will assume responsibility for the success of the project. The project managers primary responsibilities are project planning and then executing and managing the project plan. The oversight of the project charter and project plan assures the project manager that everyone knows and understands whats expected of them and what constitutes a successful project. The project charter and project plan provide for smooth problem resolution as the project goals and objectives, deliverables, and tasks are detailed in these documents. The project charter identifies the project manager and describes the authority the project manager has in carrying out the project. Project managers will be responsible for setting the standards and policies for the projects they work on. As a project manager, it is your job to establish and communicate the project procedures to the project team and stakeholders. Project managers will identify activities and tasks, resource requirements, project costs, project requirements, performance measures, and more. Communication and documentation must become the project managers best friends. Keeping stakeholders, the project sponsor, the project team, and all other interested parties informed is job one, as the famous car manufacturers ads say. Project Sponsor Have you ever attended a conference or event that was put on by a sponsor? In the information technology field, conferences and seminars are often sponsored by software development companies. The sponsor pays for the event, the facilities, and the goodies, and provides an opportunity for vendors to display their wares. In return, the sponsor comes out looking like a winnerbecause they really are footing the bill for all this fun, the sponsor gets to call the shots on conference content, and they get the prime spots for discussing their particular software solutions. And last but not least, they usually are the keynote speaker and get to present their information to a captive audience. Project sponsors are similar to this in that they rally support from stakeholders and the executive management team for the project. The project sponsor is usually an executive in the organization who has the power and authority to make decisions and settle disputes or conflicts regarding the project. The sponsor takes the project to the limelight, so to speak, and gets to call the shots regarding project outcomes. Sponsors are actively involved in the Initiation and Planning phases of the project and tend to have less involvement during the Execution and Controlling phases. Its up to the project manager to keep the project sponsor informed of all project activities, project progress, and any conflicts or issues that arise. The sponsor is the one with the authority to resolve conflict and set priorities when these things cant be dealt with any other way. Project Champion The project champion is another strong project supporter. Unlike the sponsor, the project champion doesnt 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 carry out project activities. Sometimes, the project manager may act as project champion. Functional Managers We covered functional managers in  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=88" \l "88" \t "_parent" Chapter 2. As a reminder, well mention them here again briefly as project managers must work with and gain the support of functional managers in order to complete the project. Functional managers fulfill the administrative duties of the organization, provide and assign staff members to projects, and conduct performance reviews for their staff. The Guide to the PMBOK states that a manager who is external to the project should publish the charter. In practice, my experience has been that the project charter is published under the name of the project sponsor. The charter can be written by the project manager in either case, and usually is, but the project managers name is not the name on the project charter document. For the exam, remember that the charter is published by a manager external to the project. Project Charter Sign-Off The project charter isnt complete until youve received sign-off from the project sponsor, senior management, and key stakeholders. Sign-off indicates that the document has been read by those signing it (lets hope so anyway) and that they agree with its contents and are on board with the project. It also involves the major players right from the beginning and hopefully wins their continued participation in the project going forward. This is important because the charter states the project goals and deliverables, and the time, resources, and costs needed to meet those goals. If someone has a problem with them, now is the time to raise the red flag. Signing the project charter document is the equivalent of agreeing to and endorsing the project. This doesnt mean that the project charter is set in stone, however. Project charters will change throughout the course of the project. As more details are uncovered and outlined and as the Planning process begins, more project issues will come to light. This is part of the iterative process of project management and is to be expected. The charter will occasionally be revised to reflect these new details, project plans will be revised, and project execution will change to incorporate the new information or direction. According to the Guide to the PMBOK, the project manager is assigned to the project as an output of the Initiation process. The project charter usually names the project manager. And the signed project charter gives the project manager the authority to assign resources to the project and move on to the Planning process. Everyone mentioned herethe project manager, the project sponsor, the project champion, the functional managers, the stakeholders, the clients, and anyone else impacted by the projectshould receive a copy of the written project charter. If youve done a good job with the project charter, and its been agreed to and signed off by the project sponsor and stakeholders, youve made your job of producing a scope statement, covered in  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=220" \l "220" \t "_parent" Chapter 4, much easier.  INCLUDEPICTURE "http://www.books24x7.com/book/id_3964/_.gif" \* MERGEFORMATINET Project Case Study: New Kitchen Heaven Retail Store You review your notes and reread the project charter youve prepared for the Kitchen Heaven retail store one last time before looking for Dirk. When you saw him last, he pointed you in the direction of three of the project stakeholders: Jake Peterson, Jill Overstreet, and Ricardo Ramirez. After your meetings with Jake and then Jill, you were better able to refine the project overview and deliverables. You finally run across Dirk in a hallway near the executive washroom. Dirk, Im glad I caught you. Id like to go over the project charter with you before the kick-off meeting tomorrow. Do you have a few minutes? Sure, Dirk says to you. Lets have it. The project charter states the project goal, which of course is to open the 50th Kitchen Heaven store in Colorado Springs. I also documented the deliverables, many of which we talked about last time we met. When I met with Jake, he confirmed it takes 120 days to do the store build-out. That includes having the shelves set up and in place, ready to stock with inventory. Dirk asks if Jake told you about his store location idea. Yes, Jake gave me a contact name, and Ive left her a voice mail. The sooner we can get that lease signed the better. It takes Jake 120 days to do the build-out, and Jill said she needs 2 weeks lead time to order the initial inventory and stock the shelves. That puts us pretty close to our February 1st deadline counting the time to get the lease papers signed. Sounds good so far, Dirk replies. What else? I included an updated description of the products and services the new store will offer, based on the documentation that was written from the last store opening. Jill reviewed the updates to the description, so we should be in the clear there. The store will include some new lines that weve decided to take oncookware from famous chefs, that kind of thing. The project charter also outlines your role as the project sponsor, my role as project manager, and our expectations of the project staff. Jake has already made contact with a general contractor in the Springs, and he is ready to roll once weve signed the lease. You add, Im using your estimate of $2 million as our initial budget request. Based on projected inflows, Ive calculated a payback period of 16 months with an IRR of 22 percent. Thats impressive, replies Dirk. Even better than our Phoenix store. If I recall, the payback period there was just over 2 years. Lets hope those numbers hold true. I think theyre reliable figures. Jill showed me her data based on recent store openings in similar-sized cities. And we factored in the economic conditions of the Colorado Springs area. Since theyre on a growth pattern, we think the timing is perfect. One more thing, Dirk. Since were including the big bash at grand opening as part of the deliverables, I talked to some of your folks in marketing to get some ideas. They are thinking we should have some great giveaways as door prizes and that we will want to cater in the food. They also thought having some live cooking demonstrations with some local chefs would be a good attraction. So whats next? Dirk asks. As you know, the project kickoff is scheduled for tomorrow. What Ill need then is for you to talk about the project and the goals, the commitment youll need from the management team to support this project, and introduce me as the project manager. Ive already forwarded a copy of the project charter to the meeting attendees so that they can review it before the meeting. And, I included a list of the assumptions weve made so far as an appendix to the charter. Lastly, Ill need you to ask everyone present to sign a copy of the project charter. Sounds like youve covered everything, Dirk says. I dont anticipate any problems tomorrow as everyone is looking forward to this store opening. Project Case Study Checklist Payback period calculated at 16 months IRR calculated at 22 percent Met with stakeholders to determine high-level list of deliverables: Project store opening on Feb 1 Build-out of storefront Retail product line delivered 2 weeks prior to grand opening Grand-opening party with cooking demos Created project charter, which contains: Overview of project goals and objectives List of deliverables Business case for the project Initial completion date of Feb 1 Initial budget of $2 million Definition of roles of project sponsor and project manager Kickoff meeting set up to discuss charter and obtain sign-off Summary Were well on our way to a successful project. Weve finished up the Initiation process in this chapter and will begin the Planning process in the  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=220" \l "220" \t "_parent" next chapter. We learned about one more input to the Initiation process, which is project selection criteria. Selection criteria is defined by a selection committee, or steering committee, to make determinations as to how projects get selected and prioritized. Project selection methods, on the other hand, are a tool and technique in the Initiation process. Selection methods include decision models in the form of benefit measurement methods and constrained optimization methods. The constrained optimization methods utilize mathematical models. Benefit measurement methods come in the form of benefit/cost analyses, scoring models, and economic analyses. These are primarily comparative approaches. Besides benefit/cost analysis, the most commonly used form of benefit measurement methods is cash flow analysis. Analysis of cash flows includes payback period, discounted cash flows, net present value (NPV), and internal rate of return (IRR). These last three methods are concerned with the time value of moneyor in other words, converting future dollars into todays value. Generally, projects with a shorter payback period are desired over longer payback periods. Projects that have an NPV greater than zero should be accepted. And projects with the highest IRR value are considered a better benefit to the organization than projects with low IRR values. Expert judgment is considered a tool and technique of Initiation. Experts usually have specialized knowledge or skills and could include staff from other departments in the company, external or internal consultants, and members of professional and technical associations or industry groups. Initial project requirements should be included in the project charter. Resources, personnel, budgets, and costs should be outlined to give the selection committee some overall idea of project costs. The project charter is the official acknowledgment and recognition that the project exists. It appoints the project manager and outlines their authority. It contains an overview of the project, and the projects goals and objectives. The charter should be signed by the project sponsor, stakeholders, and other key management members and then published and distributed to all interested parties. The case study project charter will include all the elements talked about in this chapter. Its a formalized document that represents the things youve mentioned here to Dirk. Recall that a charter is the document that authorizes the project to go forward. As such, it has to be comprehensive and include details such as the project goals and deliverables, resource needs, the business need for the product of the project, the project sponsor, roles and responsibilities of other project members, projected budget, and other items that are relevant to managers who must authorize and endorse the project. Exam Essentials Be able to define decision models.Decision models are project selection methods that are a tool and technique in the Initiation process. Decision models include benefit measurement methods and constrained optimization methods. Be able to describe and calculate payback period.Payback period is the amount of time it will take the company to recoup its initial investment in the product of the project. Its calculated by adding up the expected cash inflows and comparing them to the initial investment to determine how many periods it takes for the cash inflows to equal the initial investment. Be able to denote the decision criteria for NPV and IRR.Projects with an NPV greater than zero should be accepted, and those with an NPV less than zero should be rejected. Projects with high IRR values should be accepted over projects with lower IRR values. IRR is the discount rate when NPV is equal to zero, and IRR assumes reinvestment at the IRR rate. Be able to describe the importance of the project charter.The project charter is the document that officially recognizes and acknowledges that a project exists. It dedicates the organizations resources to the project, names the project manager, and describes the goals and deliverables of the project. Be able to describe the importance of sign-off of the project charter.Sign-off assures all parties have read the charter, agree to its contents, and endorse the project. Participation early on by the key stakeholders will likely ensure their participation in the project as it progresses.  INCLUDEPICTURE "http://www.books24x7.com/images/_.gif" \* MERGEFORMATINET Key Terms Before you take the exam, be certain you are familiar with the following terms: discounted cash flowpayback periodinternal rate of return (IRR)project charternet present value (NPV)Review Questions 1. What are the tools and techniques used in the Initiation process? Project selection criteria, historical information, expert judgment Project selection methods, historical information, expert judgment Project selection criteria, expert judgment Project selection methods, expert judgment HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=630745950" \l "answer.nr-qandaentry.79732EC4-2EBA-4D91-BFF2-01869B2B97DB488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.79732EC4-2EBA-4D91-BFF2-01869B2B97DB488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 2. Comparative methods, scoring methods, and economic and cash flow analysis are all part of which of the following? Benefit measurement methods, which are a tool and technique in Initiation Constrained optimization methods, which are a tool and technique in Initiation Benefit measurement methods, which are an input to Initiation Decision models, which are an output of Initiation  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=630745950" \l "answer.nr-qandaentry.F0FFFE5B-20D1-42C7-974A-F4F86C27D6EF488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.F0FFFE5B-20D1-42C7-974A-F4F86C27D6EF488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 3. You are the project manager for the Late Night Smooth Jazz Club chain, with stores in 12 states. Smooth Jazz is considering opening a new club in Arizona or Nevada. You have derived the following information: Project Arizona: Payback period is 18 months, and the NPV is 250. Project Nevada: Payback period is 24 months, and the NPV is 300. Which project would you recommend to the selection committee? Project Arizona because the payback period is shorter than Project Nevada Project Nevada because the NPV is a positive number Project Arizona because the NPV is a negative number Project Nevada because the NPV is a higher number than Project Arizonas NPV  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=630745950" \l "answer.nr-qandaentry.0DA30F42-E13C-4745-9F55-2369E26EA8F2488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.0DA30F42-E13C-4745-9F55-2369E26EA8F2488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 4. You are the project manager for the Late Night Smooth Jazz Club chain, with stores in 12 states. Smooth Jazz is considering opening a new club in Kansas City or Spokane. You have derived the following information: Project Kansas City: The payback period is 27 months, and the IRR is 35 percent. Project Spokane: The payback period is 25 months, and the IRR is 32 percent. Which project would you recommend to the selection committee? Project Spokane because the payback period is shortest Project Kansas City because the IRR is highest Project Spokane because the IRR is lowest Project Kansas City because the payback period is longest HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=630745950" \l "answer.nr-qandaentry.BB464AD8-E0B0-4ABE-B7A4-B71658A655E9488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.BB464AD8-E0B0-4ABE-B7A4-B71658A655E9488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 5. Which of the following is true regarding NPV? NPV assumes reinvestment at the cost of capital. NPV decisions should be made based on the highest value for all of the selections. NPV assumes reinvestment at the prevailing rate. NPV assumes reinvestment at the NPV rate.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=630745950" \l "answer.nr-qandaentry.E046089B-2F14-428F-9A9F-8C696A093CA3488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.E046089B-2F14-428F-9A9F-8C696A093CA3488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 6. You are the project manager for Insomniacs International. Since you dont sleep much, you get a lot of project work done. Youre considering recommending a project that costs $575,000, and expected inflows are $25,000 per quarter for the first 2 years, and then $75,000 per quarter thereafter. What is the payback period? 40 months 38 months 39 months 41 months HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=630745950" \l "answer.nr-qandaentry.5C1FA1FF-1C1E-4FAF-8220-0F7E5F8D5FA0#answer.nr-qandaentry.5C1FA1FF-1C1E-4FAF-8220-0F7E5F8D5FA0"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 7. Which of the following is true regarding IRR? IRR assumes reinvestment at the cost of capital. IRR is the discount rate when NPV is greater than zero. IRR is a constrained optimization method. IRR is the discount rate when NPV is equal to zero.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=630745950" \l "answer.nr-qandaentry.C698EAA7-57D2-4474-B746-4589CFF2348B#answer.nr-qandaentry.C698EAA7-57D2-4474-B746-4589CFF2348B"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 8. Mathematical models using linear, dynamic, integer, or algorithm models are considered: Project selection criteria A form of expert judgment Project selection methods A form of historical information HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=630745950" \l "answer.nr-qandaentry.CE096318-AEEA-442D-8602-04189BA8CABB#answer.nr-qandaentry.CE096318-AEEA-442D-8602-04189BA8CABB"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 9. You are the newly appointed project manager for a pharmaceutical company. Your company has asked you to head up a project to research a new childrens medication. Youve identified the lab equipment youll need, the software needed to perform analysis and measurements, and the skill level and types of the technicians and researchers for this project. Which of the following is true? The project manager and resources have been identified as part of the outputs of the Initiation process, and this information can be found in the project charter. The resources and project manager have been identified as an input to the project Initiation phase. Further information is needed to produce the project charter, which will include the resources and project manager. The project manager and resources have been identified as part of the project selection process. The selection committee requires resource information to make a final decision. The resources and project manager have been identified as a result of a tool and technique in the Initiation process.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=630745950" \l "answer.nr-qandaentry.FA5012F6-DFDC-4608-A420-4A3CF4615FEE#answer.nr-qandaentry.FA5012F6-DFDC-4608-A420-4A3CF4615FEE"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 10. Your selection committee meets on a semiannual basis. Theyve determined that projects must meet or exceed a specific profit limit in order to be accepted and prioritized on the project list. Which of the following is true? The selection committee has defined project selection criteria, which is a tool and technique of Initiation. The selection committee has defined project selection methods, which is a tool and technique of Initiation. The selection committee has defined project selection methods, which are an input to Initiation. The selection committee has defined project selection criteria, which is an input to Initiation.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=630745950" \l "answer.nr-qandaentry.762EC2B2-2013-4CE1-B4FA-5D356DDCC75F488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.762EC2B2-2013-4CE1-B4FA-5D356DDCC75F488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 11. What are the Initiation process outputs? Project charter, historical information, and project manager identification and assignment Project charter, project manager identification and assignment, constraints, and assumptions Project charter, historical information, constraints, and assumptions Project charter, constraints, and assumptions HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=630745950" \l "answer.nr-qandaentry.33C981B2-FDC7-4D77-8B24-3D5D8C4F5249488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.33C981B2-FDC7-4D77-8B24-3D5D8C4F5249488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 12. Ruby is an administrative assistant with another department. Her manager has agreed to loan Rubys services to you on a part-time basis during your current project. Ruby is putting together the cost projections youve gathered so far. You want to include these costs in the project charter. Ruby is formatting this information for you into a spreadsheet package and is printing copies. Which of the following is true? All of the costs, including Rubys time, are charged to the project. All of the costs Ruby is typing into the spreadsheet are project costs. Rubys time is not directly related to the project and should not be included. The project costs, including Rubys time, should be included in the project charter. The project costs, excluding Rubys time, should be considered project constraints.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=630745950" \l "answer.nr-qandaentry.402EB410-C00E-4545-820B-4005650CECA8#answer.nr-qandaentry.402EB410-C00E-4545-820B-4005650CECA8"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 13. Your project selection committee used a weighted scoring model and found that Project B, with a score of 54, should be chosen over the other competing projects. Which of the following is true? Weighted scoring models are a benefit measurement method, which is a tool and technique in the Initiation process. Weighted scoring models are a constrained optimization method, which is an output of the Initiation process. Weighted scoring models are a constrained optimization method, which is a tool and technique in the Initiation process. Weighted scoring models are a benefit measurement method, which is an output of the Initiation process.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=630745950" \l "answer.nr-qandaentry.6BDDCC7F-AE7A-4F67-AD07-68C4E1C729A2488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.6BDDCC7F-AE7A-4F67-AD07-68C4E1C729A2488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 14. Your selection committee is debating between two projects. Project A has a payback period of 18 months. Project B has a cost of $125,000 with expected cash inflows of $50,000 the first year and $25,000 per quarter after that. Which project should you recommend? Either Project A or Project B because the payback periods are equal Project A because Project Bs payback period is 21 months Project A because Project Bs payback period is 24 months Project A because Project Bs payback period is 20 months HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=630745950" \l "answer.nr-qandaentry.0930E936-2E03-4758-8AFB-01301ED83717#answer.nr-qandaentry.0930E936-2E03-4758-8AFB-01301ED83717"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 15. Which of the following is true? Discounted cash flow analysis is the least precise of the cash flow techniques as it does not consider the time value of money. NPV is the least precise of the cash flow analysis techniques as it assumes reinvestment at the discount rate. Payback period is the least precise of the cash flow analysis techniques as it does not consider the time value of money. IRR is the least precise of the cash flow analysis techniques because it assumes reinvestment at the cost of capital.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=630745950" \l "answer.nr-qandaentry.BBEEC6A3-A8A0-4F77-8CDC-4D78A074F4CE488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.BBEEC6A3-A8A0-4F77-8CDC-4D78A074F4CE488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 16. Project selection criteria might include: Benefit measurement methods Constrained optimization analysis NPV calculations Potential market share or increased public perception  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=630745950" \l "answer.nr-qandaentry.27BBC8BE-43C5-4DEC-ACBA-EDACDAFC1E6E488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.27BBC8BE-43C5-4DEC-ACBA-EDACDAFC1E6E488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 17. You are a project manager for Zippy Tees. Your selection committee has just chosen a project you recommended for implementation. Your project is to manufacture a line of miniature stuffed bears that will be attached to your companys trendy T-shirts. The bears will be wearing the same T-shirt design as the shirt theyre attached to. Your project sponsor thinks youve really impressed the big boss and wants you to skip to the manufacturing process right away. What is your response? To agree with the project sponsor because they are your boss, and they have a lot of authority and power in the company. To require that a preliminary budget be established and a resource list be put together to alert other managers of the requirements of this project. This should be published and signed by the other managers who are impacted by this project. To require a project charter be published and signed off on by all stakeholders before proceeding. To require a project charter be written to include the resources needed, budget, and project managers authority. The project manager is the only one who needs to see this document as other documents will be distributed later that contain the same detail as the charter.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=630745950" \l "answer.nr-qandaentry.BAA0A976-FDB9-4F71-86D2-5F95CE667BA3#answer.nr-qandaentry.BAA0A976-FDB9-4F71-86D2-5F95CE667BA3"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 18. Which of the following is true regarding the project charter? The project charter should be published under the name of a manager external to the project. The project charter should be published under the project sponsors name. The project charter should be published under the name of the project manager. The project charter should be published under the name of the project champion.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=630745950" \l "answer.nr-qandaentry.58034F83-26EF-4A69-8988-9B03E17305B3488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.58034F83-26EF-4A69-8988-9B03E17305B3488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 19. You are the project manager for Zippy Tees. Your company has decided to outsource the manufacturing of miniature bears to be attached to your trendy T-shirts. Which of the following is true? A good product description is all thats required. The project manager will supply this to the vendor. The contract can serve as the project charter. The product description will be included in the contract. The project manager should write the project charter because the project manager will be managing the vendor portion of this project as well. The vendor should write the project charter as they are responsible for manufacturing the bears.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=630745950" \l "answer.nr-qandaentry.59BDEEA7-7F85-46A3-8FF7-B625795FC367#answer.nr-qandaentry.59BDEEA7-7F85-46A3-8FF7-B625795FC367"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 20. The project charter: Includes a product description, describes the business need of the project, and is published by the project manager Includes a product description, describes the business need of the project, and is published by the project sponsor Includes the contract when the project is performed by a vendor and is published by a manager external to the project Includes a product description, describes the business need of the project, and is published by a manager external to the project HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=630745950" \l "answer.nr-qandaentry.A9C9FA67-AA0A-46DE-A085-BC8CADD6C0A7488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.A9C9FA67-AA0A-46DE-A085-BC8CADD6C0A7488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET Answers  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=630745950" \l "nr-qandaentry.79732EC4-2EBA-4D91-BFF2-01869B2B97DB488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.79732EC4-2EBA-4D91-BFF2-01869B2B97DB488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 1.D The tools and techniques in the Initiation process are project selection methods and expert judgment. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=630745950" \l "nr-qandaentry.F0FFFE5B-20D1-42C7-974A-F4F86C27D6EF#nr-qandaentry.F0FFFE5B-20D1-42C7-974A-F4F86C27D6EF" 2.A Benefit measurement methods include comparative methods, scoring models, and cash flow analysis, which are all part of the project selection method tools and techniques in Initiation. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=630745950" \l "nr-qandaentry.0DA30F42-E13C-4745-9F55-2369E26EA8F2#nr-qandaentry.0DA30F42-E13C-4745-9F55-2369E26EA8F2" 3.B Projects with NPV greater than zero should be given an accept recommendation. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=630745950" \l "nr-qandaentry.BB464AD8-E0B0-4ABE-B7A4-B71658A655E9488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.BB464AD8-E0B0-4ABE-B7A4-B71658A655E9488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 4.B Projects with the highest IRR value are favored over projects with lower IRR values. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=630745950" \l "nr-qandaentry.E046089B-2F14-428F-9A9F-8C696A093CA3#nr-qandaentry.E046089B-2F14-428F-9A9F-8C696A093CA3" 5.A Net present value assumes reinvestment is made at the cost of capital. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=630745950" \l "nr-qandaentry.5C1FA1FF-1C1E-4FAF-8220-0F7E5F8D5FA0488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.5C1FA1FF-1C1E-4FAF-8220-0F7E5F8D5FA0488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 6.C Year 1 and 2 inflows are each $100,000 for a total of $200,000. Year 3 inflows are an additional $300,000. Add one more quarter to this total and the $575,000 is reached in 3 years and 3 months, or 39 months. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=630745950" \l "nr-qandaentry.C698EAA7-57D2-4474-B746-4589CFF2348B488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.C698EAA7-57D2-4474-B746-4589CFF2348B488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 7.D IRR assumes reinvestment at the IRR rate and is the discount rate when NPV is equal to zero. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=630745950" \l "nr-qandaentry.CE096318-AEEA-442D-8602-04189BA8CABB488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.CE096318-AEEA-442D-8602-04189BA8CABB488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 8.C Mathematical models are part of the constrained optimization methods used as a project selection method technique. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=630745950" \l "nr-qandaentry.FA5012F6-DFDC-4608-A420-4A3CF4615FEE#nr-qandaentry.FA5012F6-DFDC-4608-A420-4A3CF4615FEE" 9.A Initiation outputs include the project charter and identification and assignment of the project manager. Resource needs are detailed in the project charter. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=630745950" \l "nr-qandaentry.762EC2B2-2013-4CE1-B4FA-5D356DDCC75F#nr-qandaentry.762EC2B2-2013-4CE1-B4FA-5D356DDCC75F" 10.D Project selection criteria can be objective or subjective. Selection criteria is an input to the Initiation process. Project selection methods use decision models to assist with project selection and are a tool and technique of the Initiation process. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=630745950" \l "nr-qandaentry.33C981B2-FDC7-4D77-8B24-3D5D8C4F5249#nr-qandaentry.33C981B2-FDC7-4D77-8B24-3D5D8C4F5249" 11.B Outputs to Initiation include the project charter, project manager identification and assignment (even though this might be stated in the charter, this is still a specific output of Initiation), constraints, and assumptions. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=630745950" \l "nr-qandaentry.402EB410-C00E-4545-820B-4005650CECA8#nr-qandaentry.402EB410-C00E-4545-820B-4005650CECA8" 12.B Project costs are those costs directly related to the project. Ruby is part time on the project and works for the organization, not the project manager. Therefore, her time is not counted in the initial budget projections. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=630745950" \l "nr-qandaentry.6BDDCC7F-AE7A-4F67-AD07-68C4E1C729A2488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.6BDDCC7F-AE7A-4F67-AD07-68C4E1C729A2488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 13.A Benefit measurement methods include comparative methods and scoring models, among others, to make project selections. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=630745950" \l "nr-qandaentry.0930E936-2E03-4758-8AFB-01301ED83717488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.0930E936-2E03-4758-8AFB-01301ED83717488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 14.B Project B has a payback period of 21 months. $50,000 is received in the first 12 months with another $75,000 coming in over each of the next 3 quarters, or 9 months.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=630745950" \l "nr-qandaentry.BBEEC6A3-A8A0-4F77-8CDC-4D78A074F4CE#nr-qandaentry.BBEEC6A3-A8A0-4F77-8CDC-4D78A074F4CE" 15.C Payback period does not consider the time value of money and is therefore the least precise of all the cash flow analysis techniques. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=630745950" \l "nr-qandaentry.27BBC8BE-43C5-4DEC-ACBA-EDACDAFC1E6E#nr-qandaentry.27BBC8BE-43C5-4DEC-ACBA-EDACDAFC1E6E" 16.D Project selection criteria includes subjective information such as potential market share. Objective material can be considered in project selection criteria, but the other answers listed here are specific project selection methods. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=630745950" \l "nr-qandaentry.BAA0A976-FDB9-4F71-86D2-5F95CE667BA3488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.BAA0A976-FDB9-4F71-86D2-5F95CE667BA3488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 17.C The project should be kicked off with a project charter outlining the project goals, deliverables, resources, budget, and roles and responsibilities of the project team. This assures everyone is working from the same assumptions and with the same goals in mind. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=630745950" \l "nr-qandaentry.58034F83-26EF-4A69-8988-9B03E17305B3#nr-qandaentry.58034F83-26EF-4A69-8988-9B03E17305B3" 18.A According to the Guide to the PMBOK, the project charter should be published by a manager external to the project but with sufficient power and authority to carry it off. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=630745950" \l "nr-qandaentry.59BDEEA7-7F85-46A3-8FF7-B625795FC367488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.59BDEEA7-7F85-46A3-8FF7-B625795FC367488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 19.B When a project is performed under contract, the contract can serve as the project charter. Project charters always include product descriptions. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=630745950" \l "nr-qandaentry.A9C9FA67-AA0A-46DE-A085-BC8CADD6C0A7488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.A9C9FA67-AA0A-46DE-A085-BC8CADD6C0A7488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 20.D Project charters, according the Guide to the PMBOK, must at least include the product description and the business need for the product or service of the project. Charters are published by managers external to the project according to the Guide to the PMBOK but in practice are often published by the project sponsor. Chapter 4: Creating the Scope Statement and WBS PMP Exam Content from the Project Planning Performance Domain Covered in This Chapter: Refine Project. Create WBS. Overview Great job! Youve successfully completed the project Initiation process and published the project charter. The project is officially under way. Stakeholders have been informed, there is management buy-in on the project, the project manager has been assigned, and the project goals and deliverables have been identified. A solid foundation for the Planning process is in place. This chapter will begin the Planning process of the project. We will continue discussing the Planning processes through  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=427" \l "427" \t "_parent" Chapter 7. Planning is a significant activity in any project and, if done correctly, will go a long way toward ensuring project success. We will begin this chapter by taking one more look at project goals and deliverables. Requirements definition will be derived from these and documented in the scope statement. Well discuss the scope management plan and all it entails, and then begin the schedule-planning activities by describing the WBS. The WBS is not a new World Baseball Series as some would hope; rather its the work breakdown structure. This chapter will wrap up with a short discussion of the Communications Planning process. Weve talked a lot about documentation so far, and we will discuss it more in this chapter. Documentation is something you will do throughout the remainder of the project, and the Communications Planning process details how to collect information, how to store it, and when and how to distribute it to stakeholders. Scoping Out the Project Scope Planning is the first process in the Planning process group. The scope statement, which is an output of Scope Planning, will become an input into the second Planning process, which is Scope Definition. Well get to Scope Definition later in this chapter. Youve most likely discovered by now that weve done a lot of documentation. Well, the documentation exercises dont stop with the project charter. Documentation should become the mantra of all good project managers. Is that documented? should be an ever present question on the mind of the project manager. Documentation can save your bacon, so to speak, later in the project. Now youve probably guessed that were going to move into another area of documentation, and youre right. But first, lets talk about some of the elements of Scope Planning before we get to the documenting part. Scope Planning, like all other processes, has inputs, tools and techniques, and outputs. The primary purpose of Scope Planning is twofold: to produce the scope statement and the scope management plan. Well deal with each of these documents in more detail after we look at the inputs and tools and techniques used to produce these two documents. The inputs to Scope Planning are items you are already familiar with: the product description, project charter, project constraints, and project assumptions. If youve read the previous chapters, youre up to speed on these elements. We also have already discussed two of the tools and techniques of Scope Planning: benefit/cost analysis and expert judgment. Youll remember from  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=166" \l "166" \t "_parent" Chapter 3 that benefit/cost analysis (also called cost benefit analysis) is comparing the costs of the project to the expected benefits of the project. Benefit/cost might include cash flow analysis and economic analysis. These techniques determine a projects profitability and viability and may also be used as selection criteria. Expert judgment is relying on people or groups with specific skills, knowledge, or training to help assess the process inputs. Two techniques remain for the Scope Planning process: product analysis and alternatives identification. Product analysis goes hand in hand with the product description. Product analysis is simply a deeper understanding of the product or service of the project. According to the Guide to the PMBOK, this goes further than product description in that product analysis might include performing value analy-sis, function analysis, systems-engineering techniques, or value-engineering techniques to further define the product or service. Its beyond the scope of this book to go into these analysis techniques. For exam purposes, you just need to know that product analysis is a tool and technique of Scope Planning. Alternatives identification is a technique used to discover different methods or ways of accomplishing the project. For example, brainstorming might be used to discover alternative ways of implementing one of the project objectives. Perhaps the projects budget doesnt allow for a portion of the project that the stakeholders really think needs to be included. Brainstorming might uncover an alternative that would allow the needed portion to be accomplished. We have our inputs at hand and have used the tools and techniques described to analyze these inputs. Now were ready to document them in the scope statement. Writing the Scope Statement One of the project managers primary goals is to accurately document the deliverables and requirements of the project, and then manage the project so that they are produced according to the agreed-upon criteria. Deliverables describe the components of the goals and objectives in a quantifiable way. Objectives and deliverables are sometimes referred to as critical success factors. Critical success factors are those elements that must be completed in order for the project to be considered complete. For example, if youre building a bridge, one of the deliverables might be to produce a specific number of trusses that will be used to help support the bridge. Without the trusses, the bridge couldnt be completed; in fact, the bridge might not stand without them. The trusses, in this case, are a critical success factor. Not all deliverables are necessarily critical success factors, but many of them will fall into this category and should be documented as such. At this point, the project manager needs to discover and document all of the requirements of the project. Requirements describe the characteristics of the deliverable. Some of the requirements of the deliverable from our bridge example might be that the trusses are constructed of a specific kind of steel, or steel cable, or they must be a certain color and of a certain height or curvature, etc. Again the project manager needs to pull those communications skills out of her tool bag and use them to interview stakeholders and business process owners about the project requirements. Business process owners are those people who are experts in their particular area of the business. They are invaluable resources to the project manager. They are usually the midlevel managers and line managers who still have their fingers in the day-to-day portion of the business. For example, it takes many experts in various areas to produce and market a great bottle of beer. There are machinists whose specialty is regulating and keeping the stainless steel and copper drums in top working order. There are chemists who sometimes daily check and adjust the secret formulas brewing in the vats. Graphic artists must develop colorful and interesting labels and cartons to attract the attention of those thirsty patrons. And of course, those great TV commercials advertising the tasty brew are produced by yet another set of business experts. These are the kinds of people youll want to interview. Sometimes getting the business process owners and stakeholders (who could be one and the same depending on the project) together in a meeting room and brainstorming the requirements will produce terrific results. Depending on the size of the project, this isnt always possible, but the idea holds true. Interview your stakeholders and business experts to get at the requirements and then document them in the scope statement. Why Do You Need a Scope Statement? The purpose of the scope statement is to document the project goals, deliverables, and requirements so that they can be used as a baseline for future project decisions. A lot of work regarding the scope statement has already been accomplished by producing the project charter. The charter is used as an input to the scope statement and already contains the project goals and major project deliverables. If the project charter was written well, its simply a matter of transferring the goals and deliverables information from the charter to the scope statement. The scope statement is the baseline for the project, as mentioned above. This means if questions arise or changes are proposed later in the project, they can be compared to whats documented in the scope statement. In this way, the scope statement establishes a common understanding among the stakeholders and project team members regarding project requirements and deliverables. The criteria outlined in the scope statement will also be used to determine if the project was completed successfully. Scope Statement Components According to the Guide to the PMBOK, the scope statement should include all of the following: project justification, project product, project deliverables, and project objectives. If details surrounding these are spelled out in other documents, you dont have to re-enter all the information into the scope statement. Simply reference the other document in the scope statement so readers know where to find it. Lets do a quick recap of each of the elements in the project scope. Project Justification This describes the business need of the project. If the business need, or business case, was written as part of the project charter, reference it in the scope statement. Project justification also includes the cost benefit and cash flow analysis used to determine the projected profitability of the project. See  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=166" \l "166" \t "_parent" Chapter 3 for details on these techniques. Project Product This is the product description we talked about in  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=166" \l "166" \t "_parent" Chapter 3. If the product description is contained in the project charter, just reference the project charter in the scope statement. NoteIf you think you might need a refresher on product description, take a minute to jog your memory by reviewing the relevant section in  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=166" \l "166" \t "_parent" Chapter 3.Project Deliverables The Guide to the PMBOK describes these as the major deliverables of a project and all the subcomponents that make up the deliverables. The completion of these deliverables signals project completion. For example, our project goal or objective might be to produce a new bottle of beer for the holidays. One major deliverable is the holiday cartons to hold the bottles. The subcomponents to produce this major deliverable might be the carton design, photographs, color choices, and so on. Project Objectives Objectives always involve the triple constraints: time, cost, and quality. In the case of goals and objectives, the triple constraints are used as measurements to determine project satisfaction and completion. Youll remember from  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=166" \l "166" \t "_parent" Chapter 3 that objectives, or goals, are specific, measurable, and timely. Continuing with our holiday beer example, the objective of this project would be properly stated this way according to the Guide to the PMBOK: Beer Buddies, Inc. will produce two million cases of holiday beer to be shipped to our distributors by October 30 at a cost of $1.5 million or less. The objective criteria are clearly stated, and fulfillment of the project objective, or goal, is easily measured. Stakeholders will know the objective is met when the two million cases are produced and shipped by the due date within the budget constraint. The Guide to the PMBOK states that objectives are sometimes called critical success factors. In practice, deliverables are sometimes referred to as critical success factors as well. Being Clear and Concise Its important that the project objectives, deliverables, and requirements are clearly and concisely stated in the scope statement so there are no misunderstandings later on. Producing a special run of holiday beer is not the same as producing two million cases of holiday beer by October 30. The former statement can be interpreted different ways by the project sponsor and project manager. Youd have to put real effort into misunderstanding the latter statement. The scope statement should contain a comprehensive listing of all the project requirements. This is important because this document forms the basis for agreement between the stakeholders and project team from this point forward. Youll want to be certain you have not missed anything when writing the scope statement. Run the draft by some of the key stakeholders and project team members before publishing it to see if they think anything is missing. Youre going to use this document to determine if the project has been successfully completed by comparing whats been delivered to whats described here, so you want to be sure youve covered everything. Just like the project charter, the scope statement should be published and distributed to the stakeholders, key management personnel, and project team members. You will also want a formal sign-off procedure for the scope statement. When stakeholders sign off and agree to the scope statement, theyre agreeing to the deliverables and requirements of the project. And, as with the project charter, their agreement and endorsement of the project requirements and deliverables will likely sustain their participation and cooperation throughout the rest of the project. That doesnt mean theyll agree to everything as the project progresses, but it does mean the stakeholders are informed and will likely remain active project participants. The following may seem obvious, but well note it anyway: Objectives, deliverables, and requirements not specifically included in the scope statement are explicitly excluded from the project. Your scope statement could have a section for exclusions so that everyone knows in advance what isnt going to be included in the project. Supporting detail is an output of the Scope Planning process and directly references the information youve assembled for the scope statement. Supporting detail should be documented and should include the project constraints, assumptions, and any other information not specifically documented in the scope statement. You could list the deliverables and requirements that are excluded from the project here, unless they were already noted in the scope statement. This document, like the scope statement, will be referenced in future Planning processes, so keep it handy. Were making progress. Weve covered two of the three Scope Planning process outputs: the scope statement and supporting detail. All the deliverables and requirements have now been documented along with measurable or quantifiable criteria for each. Stakeholders have approved and signed off on them, and the scope statement has been published and distributed. However, like other project-planning documents, the scope statement is not cast in stone. The scope statement can and probably will change as the project progresses. Changes to the project scope should be noted and the scope statement modified to incorporate these changes. Changes are managed according to the scope management plan, which well discuss in the  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=237" \l "237" \t "_parent" next section.  INCLUDEPICTURE "http://www.books24x7.com/book/id_3964/_.gif" \* MERGEFORMATINET Real World ScenarioMountain Streams Services Maria Sanchez is the CEO of Mountain Streams Services. She recently accepted a prestigious industry award on behalf of the company. Maria knows that without the dedication and support of her employees, Mountain Streams Services wouldnt have achieved this great milestone. Maria wants to host a reception for the employees and their guests in recognition of all their hard work and contributions to the company. Maria has appointed you to arrange the reception. The reception is scheduled for April 12, and Maria has given you a budget of $125 per person. The company employs 200 people. The reception should be semiformal. Youve documented the deliverables as follows: Location selection Food and beverage menu Invitations Entertainment Insurance coverage Decorations Photographer Agenda In addition to the deliverables, you want to go over the following requirements with Maria to be certain you both are in agreement: The location should be somewhere in the downtown area. Employees are encouraged to bring one guest, but no children. There will be an open bar paid for by Maria. The agenda will include a speech by Maria followed by the distribution of bonus checks to every employeethis is to be kept secret until the reception. The decorations should include gold-trimmed fountain pens with the company logo at every place setting for the attendees to keep. Once youve documented all the particulars, you ask to speak with Maria to go over this scope statement and get her agreement before proceeding with the project plan and task assignments.  INCLUDEPICTURE "http://www.books24x7.com/book/id_3964/_.gif" \* MERGEFORMATINET Publishing the Scope Management Plan Change is inevitable. One thing you and I know for certain is that changes are going to occur on your next project. Change isnt something to be dreaded, but it is something to be managed. The scope management plan helps the project manager do just that. This plan is an important supplementary document to the project plan as it describes how changes to the project scope will be incorporated into the project. It also defines the process of how to go about requesting a change. The scope management plan should be written and distributed at roughly the same time the scope statement is published. If you get the scope management plan in the hands of the stakeholders early on, it will hopefully elimin-ate questions about scope changes later in the project. The purpose of the scope management plan, according to the Guide to the PMBOK, is to analyze the reliability and stability of the project scope. In other words, it examines the likelihood that scope change will occur (meaning changes to goals, deliverables, or requirements). The plan answers the questions, Are a lot of changes expected? and How dramatic will the changes be? This is determined by the complexity of the project youre working on. The example of the employee reception at the end of the last section probably wont have a lot of change because the project is small and the deliverables and requirements are simple and very clear. The Scope Management Change Process According to the Guide to the PMBOK, the scope management change process can be formal or informal. I would agree that for small, uncomplicated projects with one or two stakeholders, an informal process will work well. Large or complex projects should always have a scope management plan. In either case, its been my experience whether the process is formal or informal, all change requests should be put in writing. Stakeholders and project managers can sometimes have foggy memories. And what you think you said might not be what the stakeholder heard and vice versa. Documenting the change request eliminates these issues. Hmm, have we talked about documentation? All changes should be requested in writing on a formal change request form, and the impact of the changes noted. Changes will usually impact one, if not all, of the triple constraints. But for now, all we need to know is the kind of change requested and have a high-level understanding of its impact on time, cost, or quality. These changes should be logged and tracked throughout the course of the project. Some changes will not be approved but might need to be incorporated into the next product release or project. If you log and file these change requests with the project information, they will help you define the requirements for the next project. In a later chapter, well discuss the process for change approval and communication of the change. For the exam, remember that the scope management plan is a document that identifies how project scope will be managed and how those changes will be incorporated into the project. It assesses the probability of scope changes, their frequency, and their impact. Formalizing this process for large or complex projects is highly recommended.  INCLUDEPICTURE "http://www.books24x7.com/images/_.gif" \* MERGEFORMATINET Formulating the Scope Definition Now were getting to the meat of the project Planning process. Weve identified and documented all the project deliverables and requirements, and were ready to further break these down into project work. In the Scope Definition process, the project deliverables are broken down into smaller, manageable components so that we can plan project tasks and activities. This subdividing of deliverables into smaller components is the purpose of the Scope Definition process. The Guide to the PMBOK calls this decomposition. We can take this one step further by breaking the smaller components down even further into what the Guide to the PMBOK terms work packages. Well cover work packages in a later section. This breaking-down process will accomplish several things for us, one of which is improving estimates. Its easier to estimate the costs, time, and resources needed for individual work components than it is to estimate them for a whole body of work or deliverable. Using smaller components also makes it easier to assign performance measures and controls. These give us a baseline to compare against throughout the project or phase. And finally, assigning resources and responsibility for the components of work makes better sense as several resources with different skills might be needed to complete one deliverable. Breaking them down assures that assignment, and the responsibility for that assignment, goes to the proper parties. The Scope Definition process has five inputs that weve already covered elsewhere. They are the scope statement, project constraints, assumptions, other Planning process outputs, and historical information. The tools and techniques of Scope Definition are the work breakdown structure templates and decomposition. These tools work together to create the work breakdown structure (WBS), which well look at next. Creating the Work Breakdown Structure Have you ever mapped out a family tree? A work breakdown structure is very similar to a family tree. It maps out the deliverables of the project with subdeliverables and activities stemming from each major deliverable in a tree format. The Guide to the PMBOK, pages 59 and 60, describes a WBS this way: A WBS is a deliverable-oriented grouping of project components that organizes and defines the total scope of the project; work not included in the WBS is outside the scope of the project. Simply put, a WBS is a deliverables-oriented hierarchy that defines the work of the project. The WBS will be used throughout many of the remaining Planning processes and is an important part of project planning. As you probably have concluded, everything weve done so far builds on the previous step. The project charter outlines the project goals and major deliverables. The scope statement further refines these deliverables into an exhaustive list. Now, that comprehensive list of deliverables is going to be used to build the framework of the WBS. The importance and accuracy of the work youve done up to this point cant be stressed enough. Your WBS will only be as accurate as your list of deliverables. The deliverables will become the groupings that will form the higher levels of the WBS from which activities will be derived. The WBS should detail the full scope of work needed to complete the project. This breakdown will smooth the way for estimating project cost and time, scheduling resources, and determining quality controls later in the Planning process. Project progress will be based on the estimates and measurements assigned to the WBS segments. So again, accuracy and completeness are required when composing your WBS. Constructing the WBS There is no right way to construct a WBS. In practice, the tree structure is used quite often. (This structure also resembles an organization chart.) But a WBS could be composed in outline form as wellthe choice is yours. The organization of the content in the WBS is consistent no matter which form you use. Its content is defined by a series of levels. These levels are often in sequential order, but they dont have to be. The WBS defines the work that needs to be done. The sequential ordering of those tasks takes place in a later step, although in practice, youll probably combine these steps. Well look at the WBS content next. Understanding the Various WBS Levels Although the project manager is free to determine the number of levels in the WBS based on the complexity of the project, the highest level of the WBS, level one, is considered the project itself. This is followed by the deliverables, which might be followed by more deliverables followed by activities and so on. Each of these breakouts is called a level in the WBS with the project itself as level one, the deliverables as level two, and so on. The easiest way to describe this process is with an example. Lets suppose you work for a software company that publishes childrens games. Youre the project manager for the new Billy Bobs Bassoon game, which teaches children about music, musical rhythm, and beginning sight reading. The first level of our WBS is the project name; it appears at the top of the WBS, as shown in  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=432180861" \l "figure.235B8834-4D9A-43C4-BB80-D681BCD014EF488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#figure.235B8834-4D9A-43C4-BB80-D681BCD014EF488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" Figure 4.1. The next level should describe the major deliverables for the project. In our example, some of the deliverables might be requirements definition, design specifications, and programming. This isnt an exhaustive list of deliverables; in practice, you would go on to place all of your major deliverables into the WBS as level two content. For illustration purposes, well just look at a slice of the WBS for this project.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=432180861" \l "figure.235B8834-4D9A-43C4-BB80-D681BCD014EF488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#figure.235B8834-4D9A-43C4-BB80-D681BCD014EF488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" Figure 4.1 shows the WBS with level one and level two detail added.  HYPERLINK "javascript:PopImage('IMG_19','http://images.books24x7.com/bookimages/id_3964/f0401_0.jpg','559','161')" \t "_self"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/f0401.jpg" \* MERGEFORMATINET  Figure 4.1: WBS levels one and two Level three content might be deliverables that are further broken out from the major deliverables of level two, or it might be activities that contribute to the deliverable. Our software example shows further deliverables as level three content. See  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=432180861" \l "figure.C92D6F90-DD3E-4FD0-9CBD-9CEDFFE34C0D488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#figure.C92D6F90-DD3E-4FD0-9CBD-9CEDFFE34C0D488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" Figure 4.2 for an illustration of the WBS so far.  HYPERLINK "javascript:PopImage('IMG_20','http://images.books24x7.com/bookimages/id_3964/f0402_0.jpg','651','339')" \t "_self"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/f0402.jpg" \* MERGEFORMATINET  Figure 4.2: WBS levels one, two, and three The goal here is to eventually break the work out to the point where responsibility and accountability can be assigned to a specific person or team of people for each unit of work. The higher levels of the WBS contain the deliverables and use nouns as their descriptors. Reaching way back to my grade school English, I recall that a noun is a person, place, or thing. In our example, the deliverables in level two and three are described using nouns. The activity level, level four in our example in  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=432180861" \l "figure.91FC77D8-BD2A-4C0D-A4E1-186D4B569300488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#figure.91FC77D8-BD2A-4C0D-A4E1-186D4B569300488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" Figure 4.3, is described using verbs, or action words. Some of the verbs used in level four are define, design, determine, etc. There are many more activities that would go with these deliverables, but for the sake of illustration, weve listed just a few for each deliverable to give you an idea of how the WBS is constructed. You can see from our illustrations how a poor scope definition, or inade-quate list of deliverables, will lead to a poorly constructed WBS. Not only will this make the WBS look sickly, but the project itself will suffer and might even succumb to the dreaded premature project demise. The final cost of the project will be higher than estimated, and lots of rework (translate as late nights and weekends) will be needed to account for the missing work not listed on the WBS. You can construct a good WBS and maintain a healthy project by taking the time to document all the deliverables during the Scope Planning process.  HYPERLINK "javascript:PopImage('IMG_21','http://images.books24x7.com/bookimages/id_3964/f0403_0.jpg','651','500')" \t "_self"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/f0403.jpg" \* MERGEFORMATINET  Figure 4.3: WBS levels one, two, three, and four Work breakdown structures can be constructed using WBS templates or the WBS from a similar completed project. A bit earlier, we mentioned that WBS templates are a tool and technique in the Scope Definition process. While every project is unique, many companies repeat the same kind of projects over and over. The deliverables are similar from project to project, and they generally follow a consistent path. The WBS templates can be used in a case like this as a tool to simplify the WBS process, saving the project manager time. We also mentioned that decomposition is a tool and technique of the Scope Definition process. This is the breaking down of the deliverables into smaller, manageable components, as our illustrations have shown. Large, complex projects are often composed of several subprojects that collectively make up the main project. The WBS for a project such as this would show the subprojects as level two detail. These subprojects would then list their major deliverables as level three content, perhaps more deliverables as level four, and activities as level five and so on. Unique WBS Identifiers Each element at each level of the WBS should be assigned a unique identifier according to the Guide to the PMBOK. This unique identifier is typically a number, and its used to track the cost of the WBS element. These numbers are usually associated with the corporations financial system chart of accounts. Collectively, these numeric identifiers are known as the code of accounts, also called a chart of accounts. The numbering scheme for the requirements definition branch of the WBS might look something like this: 10 Requirements Definition 10-1 Game Requirements 10-1-1 Define Characters 10-1-2 Define Instruments 10-2 Software Requirements 10-2-1 Determine Language 10-2-2 Define Systems  INCLUDEPICTURE "http://www.books24x7.com/book/id_3964/_.gif" \* MERGEFORMATINET Real World ScenarioThe Lincoln Street Office Building Flagship International has just purchased a new building to house their growing staff. They consider themselves very lucky to have won the bid on the property located in a prime section of the downtown area. The building is a historic building and is in need of some repairs and upgrades to make it suitable for office space. Constructing the renovations will require special handling and care as outlined in the Historical Society Building Revisions Guide. Alfredo Magginetti is the project manager assigned to the renovation project. Alfredo has already gathered the deliverables for this project. In so doing, hes discovered that he will not be able to manage all the work himself. He will need several subproject managers working on individual deliverables all reporting to him. Alfredo calls a meeting with the other project managers to deliver the WBS. Lets eavesdrop on the meeting. As you all know, were planning to move into the Lincoln Street building by November 1st. There is quite a bit of work to do between now and then, and Im enlisting each of you to manage a segment of this project. Take a look at this WBS. A portion of the WBS Alfredo constructed looks like this: Lincoln Street Building Renovation 1.0Facility Safety 1.1 Sprinkler System 1.2 Elevators 1.3 Emergency Evacuation Plans  2.0Asbestos Abatement 2.1 Inspection and Identification 2.2 Plans for Removal  3.0Office Space 3.1 Building Floor Plans 3.2 Plans for Office Space Allocation 3.3 Plans for Break Room Facilities 3.4 Plans for Employee Workout Room Alfredo continues, Im going to manage the Facility Safety project. Adrian, Id like you to take the Asbestos Abatement project, and Orlando, youre responsible for the Office Space project. Alfredo, Adrian says. Asbestos abatement is going to take contractors and specialized equipment. We dont have staff to do these tasks. I understand. Youll need to take charge of securing the contractor to handle this. Youre responsibility will be to manage the contractor and keep them on schedule, Alfredo answers. Orlando reminds Alfredo that hes missed a deliverable on the WBS. Part of the Office Space project needs to include the network communications and telecommunications equipment rooms. I dont see that on here. Good point, Orlando, Alfredo says. The level three and four elements of this WBS are not complete. Each of you has been assigned to the subproject level, or level two. Your first assignment is to meet back here in 2 weeks with your WBS broken down to the activity level for each of your projects. And Id like to see some ideas about the staff assignments youd make at the activity level and how long you think these activities will take. Well refine those after we meet next.  INCLUDEPICTURE "http://www.books24x7.com/book/id_3964/_.gif" \* MERGEFORMATINET Defining Work Packages As mentioned, the project manager is free to determine the number of levels in the WBS based on the complexity of the project. You need to include enough levels to accurately estimate project time and costs but not so many levels that its difficult to distinguish between the activities. Regardless of the number of levels in a WBS, the lowest level in a WBS is called a work package. Work packages are the tasks that can be easily assigned to one person, or team of people, with clear accountability and responsibility for completing the assignment. Assignments are easily made at the work package level; however, assignments can be made at any level in the WBS as in the Historical Building scenario. The work package level is where time estimates, cost estimates, and resource estimates are determined. Including Activities There is some controversy among project managers over whether activities should be listed on the WBS. There isnt a rule in the Guide to the PMBOK regarding this; its up to the project manager to determine how far to break the deliverables down and whether to include activities. In practice, I often include activities on my work breakdown structure as it facilitates other Planning processes later on. In this case, the activities are the work package level. However, you should realize that large, complex projects will not likely list activities on the WBS. Large projects made up of a series of smaller subprojects will likely break the project down to a work package level. In this case, the work package is a collection of related tasks. The work packages can then be assigned to individual managers who will in turn break them down into activities during the Activity Definition process later in the Planning process. This may seem self-evident, but work elements not shown on the WBS are not included in the project. The same holds true for the scope statementif the deliverable isnt noted there, it isnt part of the project. The Guide to the PMBOK mentions a WBS dictionary. This contains a description of the work package level and details regarding the activities within the work package. Information such as costs, budgets, resource assignments, and activity descriptions would be found in the WBS dictionary. Noting Milestones Theres one last thing I should mention regarding the WBS. Some project managers choose to note milestones on their WBS. A milestone is a major accomplishment in a project. The completion of a deliverable could be a milestone, for example. Milestones are like checkpoints along the way in the project to help determine progress. In most cases, the higher levels of the WBS can be flagged as milestones. The higher levels indicate major accomplishments on the project. For example, Asbestos Abatement in the Lincoln Street Building Renovation example is a major accomplishment that could be considered a milestone. The project would not be considered successful or complete if this milestone was not met. Sometimes critical activities can be flagged as milestones as well. Well talk more about milestones in a later chapter. Scope Statement Updates Many times, youll find when youre creating the WBS that deliverables might need further definition or refining. As you work through the decomposition process, you might discover new deliverables that werent thought of during the Scope Planning process. These changes should be reflected in the scope statement. Scope statement updates are the output of the Scope Definition process that allow you to do just that. Communicating with Stakeholders Weve talked a good deal about documentation so far, and this topic will continue to come up throughout the remainder of the book. Documentation is only one side of the equation thoughcommunication is the other. You need to know who gets what information and when. The Communications Planning process determines the communication needs of the stakeholders. The communications management plan, which is the only output of this process, documents the types of information needs the stakeholders have, when the information should be distributed, and how the information will be delivered. The type of information you will typically communicate includes status reports, status review meetings, scope statements and scope statement updates, project baseline information, performance measures, project acceptance, and so on. Well cover all of these topics in the remaining chapters of this book. Whats important to know now is that the information needs of the stakeholders should be determined early on in the Planning process so that as you develop more management plans, risk assessments, and so on, you know who gets what information and how it should be delivered. The information that will be shared with stakeholders and the distribution methods are based on the needs of the stakeholders, the project complexity, and the organizational policies. Some communications may be informala chat by the watercooler, for instancewhile other communications are written and a copy is filed with the project files. The communications management plan documents how to collect, store, file, and make corrections or updates to previously published material. It also discusses the timing of the communication. The communications management plan describes how stakeholders can access project information between published dates as well. You might consider setting up an intranet site for your project and posting the appropriate project documentation there for the stakeholders to access anytime they wish. We will discuss communication methods in more depth in  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=491" \l "491" \t "_parent" Chapter 8.  INCLUDEPICTURE "http://www.books24x7.com/book/id_3964/_.gif" \* MERGEFORMATINET Project Case Study: New Kitchen Heaven Retail Store Youre just finishing your phone conversation with Jill and see Dirk headed toward your office. The realtor has found a great location, and you and Jill have set up a time to take a tour later this week. Dirk walks in, crosses his arms over his chest, and stands next to your desk with an Im here for answers look. Thought Id drop by and see if you have signed a lease and gotten Jake started on that build-out yet. I just got off the phone with Jill, you reply. We set up a time to tour a location the end of this week. Whats been the holdup? Dirk asks. I thought wed be ready to start the build-out about now. Ive been working on the project plans. Project plans, Dirk interrupts. We already have a plan. That charter thing you drew up last week spelled things out pretty clearly. The charter was the project kick-off, and I agree it did include all the deliverables. However, its not detailed enough to start mapping out the project plans. I wrote a scope statement that further details the project deliverables and other project information. Ive already forwarded that to you. Ive also drawn up a work breakdown structure with all the deliverables shown in a tree structure that Id like to go over with you before showing it to the project team. We arent building trees, were building a new store. I dont understand why youre wasting all this time planning. We all know what the goals are. Dirk, you reply. If we put the right amount of effort and time into the planning stage, the execution stage should go pretty smoothly. Planning is probably one of the most important things we can do on this project. If we dont plan correctly, we might miss something very important that could delay the store opening. That date is pretty firm, I thought. Yes the date is firm. But I dont see how we could miss anything. You and I have met several times, and I know youve met with Jill and Jake. Theyre the other key players on this. Youre right, I have met with Jill and Jake. And thats a perfect example of why we need to plan. When I met with Jill, she told me how all the stores data is communicated via a satellite network connection on a nightly basis. That means we need to involve the IT group. You glance down at your notes. Ricardo Ramirez heads up IT. I spoke with him last week about his deliverables, and Ive included his group as a subproject on the work breakdown structure. Oh, Dirk replies. I forgot about IT. Youre right, thats an important part of the project, and we cant leave them out. Okay, Im beginning to see why youre taking planning seriously. Lets have a look at this work breakdown structure. You hand Dirk a copy of the WBS. A partial version is shown here.  HYPERLINK "javascript:PopImage('IMG_22','http://images.books24x7.com/bookimages/id_3964/g0401_0.jpg','654','313')" \t "_self"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/g0401.jpg" \* MERGEFORMATINET  Project Case Study Checklist Interviewed project stakeholders and business process owners for further definition of deliverables Created project scope statement, which includes: Project justificationthe business need. Project productthe product description. Project deliverablesclear and concise deliverables. Project objectivesincluding constraints. Objectives are specific, measurable, and timely. Decomposed deliverables into a WBS WBS includes: Level one is the project. Level two is subprojects or deliverables. Level three is deliverables or activities. Remaining levels are activities. Last level of WBS is the work package level where time and cost estimates can be defined in the next process. Summary This chapter started us on the road to project Planning via the Scope Planning process and the Scope Definition process. Scope Planning is where we produced the scope statement, which describes the project goals, deliverables, and requirements. The scope statement forms the baseline well use to weigh future project decisions. The scope statement must contain an exhaustive list of project deliverables that will be used in future Planning processes. Measurement criteria agreed upon by the stakeholders and project manager are associated with these deliverables and documented in the scope statement to track project progress. The deliverables, requirements, and measurement criteria should be spelled out clearly and concisely in the scope statement to avoid any misunderstandings later in the project. Formal acceptance of the scope statement is required by the stakeholders and project manager. Acceptance is usually accompanied by sign-offs on the document indicating that it has been read and the signing party agrees with the deliverables and requirements of the project. The purpose of the scope management plan is to analyze the reliability and stability of the project scope. The scope management plan documents the process to manage project scope and changes to the scope. The Scope Definition process is concerned with decomposition and the production of a work breakdown structure. Decomposition is breaking down deliverables into manageable pieces of work, which might be further broken down into activities. A work breakdown structure (WBS) is a deliverables-oriented group of project essentials. The highest levels of the WBS are described using nouns, and the lowest levels are described with verbs. Each element in the WBS has its own set of objectives and deliverables that must be met in order to fulfill the deliverables of the next highest level, and ultimately the project itself. In this way, the WBS validates the completeness of the work. The lowest level of the WBS is known as work packages. This breakdown allows the project manager to determine cost estimates, time estimates, resource assignments, and quality controls. Exam Essentials Be able to name the Scope Planning outputs.The scope statement, supporting detail, and scope management plan. Understand the purpose of the scope statement.The scope statement serves as a baseline for future project decisions. The project objectives and deliverables and their quantifiable measurements are documented in the scope statement and are used by the project manager and the stakeholders to determine if the project was completed successfully. Be able to name the Scope Definition tools and techniques and outputs.The tools and techniques from Scope Definition are decomposition and WBS templates. Decomposition is breaking the deliverables down into workable, manageable units of work. The outputs are the work breakdown structure and scope statement updates. Be able to describe the purpose of the scope management plan.The scope management plan describes how scope changes will be handled during the project and how to request changes. It details how likely it is that scope changes will occur, their frequency, and their impact. Be able to define a WBS and its components.The WBS is a deliverables-oriented hierarchy. It uses the deliverables from the scope statement or similar documents and decomposes them into logical, manageable units of work. Level one is the project level, level two is the major deliverable level or subproject level, and so on. The lowest level of any WBS is called a work package. Be able to describe the purpose of the communications management plan.The communications management plan determines the communication needs of the stakeholders. It documents what information will be distributed, how it will be distributed, to whom, and the timing of the distribution. It also documents how to collect, store, file, and make corrections to previously published material.  INCLUDEPICTURE "http://www.books24x7.com/images/_.gif" \* MERGEFORMATINET Key Terms Before you take the exam, be certain you are familiar with the following terms: code of accountsScope Planningcommunications management planscope statementCommunications Planningsupporting detaildecompositionwork breakdown structure (WBS)Scope Definitionwork package scope management planReview Questions 1. You are a project manager for Laredo Pioneers Traveling Rodeo Show. Youre heading up a project to promote a new line of souvenirs to be sold at the shows. You need to gather the inputs to write the scope statement. You gather which of the following? Project charter, product description, assumptions, and constraints Project charter, product analysis, and cost benefit analysis Product description, product analysis, and project charter Product description, assumptions, constraints, and product analysis HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=300696628" \l "answer.nr-qandaentry.22BF86FB-7097-4972-9F21-4ECFCBFED33B488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.22BF86FB-7097-4972-9F21-4ECFCBFED33B488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 2. You are a project manager for Laredo Pioneers Traveling Rodeo Show. Youre heading up a project to promote a new line of souvenirs to be sold at the shows. Youre ready to write the scope statement, and you know it should contain which of the following? Project justification, benefit/cost analysis, project deliverables, and product analysis Product analysis, project product, and project deliverables Project justification, project product, project deliverables, and project objectives Product analysis, project deliverables, benefit/cost analysis, and project objectives  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=300696628" \l "answer.nr-qandaentry.6A87FC43-52AE-45B7-819D-2A0B361CD961488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.6A87FC43-52AE-45B7-819D-2A0B361CD961488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 3. Which of the following is true regarding the scope statement? It describes how to make changes to project scope. B.It describes project deliverables and serves as a baseline for future project decisions. C.It assesses the stability of the project scope and is a baseline for future project decisions. It assesses the reliability of the project scope and describes the frequency of changes and their impacts.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=300696628" \l "answer.nr-qandaentry.2E26B7ED-D167-4C71-980A-C1A2FF844E33488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.2E26B7ED-D167-4C71-980A-C1A2FF844E33488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 4. You are a project manager for an agricultural supply company. You have just completed and obtained sign-off on the scope statement for your new Natural Bug Busters project. A key stakeholder has informed you that a deliverable is missing from the scope statement. This deliverable is a critical success factor. You should do which of the following? Inform the stakeholder that work not stated in the scope statement is excluded from the project. Modify the scope statement to reflect the new deliverable. Inform the stakeholder that this deliverable can be included in the next project since sign-off has already been obtained. Modify the scope statement after an approved change request has been received from the stakeholder.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=300696628" \l "answer.nr-qandaentry.880E09A6-DD2A-4921-87B1-A8B6C3A5F7B5488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.880E09A6-DD2A-4921-87B1-A8B6C3A5F7B5488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 5. You are a project manager responsible for the construction of a new office complex. You are taking over for a project manager who recently left the company. The prior project manager completed the project charter and the scope statement for this project. In your interviews with some key stakeholders, you conclude that the scope statement was poorly constructed. You know all of the following are true except: It will be difficult to assess future project decisions from this scope statement. It will be difficult to decompose the deliverables from this scope statement. It will be difficult to assess cost and time estimates from this scope statement. It will be difficult to create an accurate WBS from this scope statement.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=300696628" \l "answer.nr-qandaentry.55A1DFA7-0743-496C-9C60-664142E30B83488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.55A1DFA7-0743-496C-9C60-664142E30B83488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 6. You are a project manager responsible for the construction of a new office complex. You are taking over for a project manager who recently left the company. The prior project manager completed the scope statement and scope management plan for this project. In your interviews with some key stakeholders, you conclude which of the following? They understand that the scope statement assesses the stability of the project scope and outlines how to incorporate scope changes into the project. They understand that the scope management plan assesses the stability of the project scope and outlines how to incorporate scope changes into the project. They understand that the scope management plan is deliverables oriented and cost estimates can be easily derived it. They understand that the scope statement is deliverables oriented and cost estimates can be easily derived from it.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=300696628" \l "answer.nr-qandaentry.CE548347-C005-48E3-87AD-CCB8BF8E8261488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.CE548347-C005-48E3-87AD-CCB8BF8E8261488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 7. All of the following are true about decomposition except: Its an output of the Scope Definition process. Its a tool and technique of the Scope Definition process. It is used to create a WBS. It subdivides the major deliverables into smaller components.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=300696628" \l "answer.nr-qandaentry.E5035317-59F0-4288-928D-9B74C72A6CE5488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.E5035317-59F0-4288-928D-9B74C72A6CE5488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 8. Your company has asked you to be the project manager for the product introduction of their new DeskTop Rock media system. You recently published a document that establishes the scope baseline. Which of the following is true? This is the scope statement, which is an output of the Scope Planning process. This is the scope statement, which is an output of the Scope Definition process. This is the scope statement, which is a tool and technique of the Scope Definition process. This is the scope management plan, which is an output of the Scope Definition process.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=300696628" \l "answer.nr-qandaentry.FEA36107-5C1F-455C-B630-842237062CAE488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.FEA36107-5C1F-455C-B630-842237062CAE488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 9. What are the outputs of the Scope Planning process? Product analysis, scope statement, and scope management plan Scope statement, scope management plan, and WBS Scope statement, supporting detail, and WBS Scope statement, supporting detail, and scope management plan HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=300696628" \l "answer.nr-qandaentry.AA5DE05B-2DDA-4AF3-BAF3-7B3825257F9A488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.AA5DE05B-2DDA-4AF3-BAF3-7B3825257F9A488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 10. Your company has asked you to be the project manager for the product introduction of their new DeskTop Rock media system. You recently published the scope statement and the supporting detail. The supporting detail contains all of the following except: Constraints Other project information not noted in the scope statement Code of accounts Assumptions  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=300696628" \l "answer.nr-qandaentry.EC1F5FD5-AC3F-4A2A-8641-84A44DF2DDC3488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.EC1F5FD5-AC3F-4A2A-8641-84A44DF2DDC3488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 11. You are a project manager for Giraffe Enterprises. Youve recently taken over for a project manager who lied about his PMI certification and was subsequently fired. Unfortunately, he did a poor job of Scope Definition. You know if you dont correct this, one of the following could happen: The stakeholders will require overtime from the project team to keep the project on schedule. The WBS will adversely affect the deliverable breakdowns, and costs will increase. The scope management plan will require changes. The project costs could increase, there might be rework, and schedule delays may result.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=300696628" \l "answer.nr-qandaentry.3362176B-C5A6-46FC-B401-704727A09DEE488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.3362176B-C5A6-46FC-B401-704727A09DEE488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 12. Scope definition is necessary for all of the following reasons except: To subdivide project deliverables into smaller components To assess the stability of the project scope To facilitate time and cost estimates To facilitate responsibility and assignment  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=300696628" \l "answer.nr-qandaentry.6817136D-0044-4BF3-87B3-903B1E30A94F488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.6817136D-0044-4BF3-87B3-903B1E30A94F488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 13. You are working on a project that is similar in scope to a project performed last year by your company. You might consider which of the following? Using the previous projects alternatives identification as a template Reusing the previous projects benefit/cost analysis as justification for this project Using the previous projects WBS as a template Reusing the previous projects product description when writing the scope statement HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=300696628" \l "answer.nr-qandaentry.1779A4E2-8921-4D10-A013-BCCE72F2BCAC488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.1779A4E2-8921-4D10-A013-BCCE72F2BCAC488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 14. Your company, Kick That Ball Sports, has appointed you project manager for their new Cricket product line introduction. This is a national effort, and all the retail stores across the country need to have the new products on the shelves before the media advertising blitz begins. The product line involves three new products, some with multiple deliverables. You are ready to create the WBS. Which of the following is true? The WBS should include the three new products and the advertising campaign as level two deliverables. The WBS should include the three new products as level two deliverables. The WBS should include the three new products as level two deliverables and the advertising campaign as a level three deliverable. The WBS should include the three new products and the advertising campaign as level three deliverables.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=300696628" \l "answer.nr-qandaentry.33C0EF29-347B-47A1-A718-7733D51F3971488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.33C0EF29-347B-47A1-A718-7733D51F3971488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 15. Your company, Kick That Ball Sports, has appointed you project manager for their new Cricket product line introduction. This is a national effort, and all the retail stores across the country need to have the new products on the shelves before the media advertising blitz begins. The product line involves three new products, some with multiple deliverables. The Scope Definition process is now complete. Which of the following is true? The WBS template, an output of the Scope Definition process, was used from the previous project to create the WBS for this project. The WBS encompasses the major deliverables for the project. The WBS template from the previous project, an output from the Scope Planning process, was used to create the WBS for this project. The WBS encompasses the major deliverables for the project. The WBS, an output of the Scope Planning process, has been created, and it encompasses the full scope of work for the project. The WBS, an output of the Scope Definition process, has been created, and it encompasses the full scope of work for the project.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=300696628" \l "answer.nr-qandaentry.1BD3C0E4-498F-4DBA-B6BB-1A22448B0FEB488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.1BD3C0E4-498F-4DBA-B6BB-1A22448B0FEB488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 16. All of the following are true regarding the WBS except: It is a deliverables-oriented grouping of project deliverables and elements. It defines and organizes the work of the project in a hierarchical form. It provides a framework for the work of the project, and work not shown on the WBS is not included in the project. It defines all the deliverables of the project, but the activities level should not be listed on the WBS.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=300696628" \l "answer.nr-qandaentry.6BA20466-F79B-4200-AB40-66D1B42975FD488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.6BA20466-F79B-4200-AB40-66D1B42975FD488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 17. You are the project manager for Lucky Stars nightclubs. They specialize in live country and western band performances. Your newest project is in the Planning process. Youve published the scope statement and scope management plan. The document that describes who will receive copies of this information as well as future project information, how it should be distributed, and how the information should be stored and filed is which of the following? Scope management plan Communications management plan Information distribution plan Project charter HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=300696628" \l "answer.nr-qandaentry.FF95A87A-1F2C-4963-9C31-8B32C4020D59488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.FF95A87A-1F2C-4963-9C31-8B32C4020D59488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 18. You are the project manager for Lucky Stars nightclubs. They specialize in live country and western band performances. Your newest project is in the Planning process. You are working on the WBS. The finance manager has given you a numbering system to assign to the WBS. Which of the following is true? The numbering system is a unique identifier known as the code of accounts, which is used to track the costs of the WBS elements. The numbering system is a unique identifier known as the WBS dictionary, which is used to track the descriptions of individual work elements. The numbering system is a unique identifier known as the code of accounts, which is used to track time and resource assignments for individual work elements. The numbering system is a unique identifier known as the WBS dictionary, which is used to assign quality control codes to the individual work elements.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=300696628" \l "answer.nr-qandaentry.E38C648E-AEAF-4E72-AA46-24776F4FB5D4488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.E38C648E-AEAF-4E72-AA46-24776F4FB5D4488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 19. Youve constructed the WBS for your recent project. Level two assignments have been made, and youve requested that the subproject managers report back to you in 3 weeks with each of their individual WBSs constructed. All of the following are true except: The work package level facilitates resource assignments. The work package level is the lowest level in the WBS. The work package level defines the agreed-upon deliverables. The work package level facilitates cost and time estimates.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=300696628" \l "answer.nr-qandaentry.2F531B4E-D068-4CD5-9275-5344D1308A0E488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.2F531B4E-D068-4CD5-9275-5344D1308A0E488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 20. The grouping of project elements by deliverables is known as what? The code of accounts The work package The work breakdown structure The work breakdown dictionary HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=300696628" \l "answer.nr-qandaentry.241C4789-FBC5-4419-9274-20E99459594A488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#answer.nr-qandaentry.241C4789-FBC5-4419-9274-20E99459594A488638D5-C0BA-459C-82D4-0FDEF2CDC9EC"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET Answers  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=300696628" \l "nr-qandaentry.22BF86FB-7097-4972-9F21-4ECFCBFED33B488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.22BF86FB-7097-4972-9F21-4ECFCBFED33B488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 1.A The inputs of the Scope Planning process are product description, project charter, constraints, and assumptions. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=300696628" \l "nr-qandaentry.6A87FC43-52AE-45B7-819D-2A0B361CD961488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.6A87FC43-52AE-45B7-819D-2A0B361CD961488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 2.C The scope statement includes all of the following: project justification, project product, project deliverables, and project objectives according to the Guide to the PMBOK.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=300696628" \l "nr-qandaentry.2E26B7ED-D167-4C71-980A-C1A2FF844E33488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.2E26B7ED-D167-4C71-980A-C1A2FF844E33488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 3.B The scope statement describes the project deliverables, requirements, and objectives. It serves as a baseline for future project decisions. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=300696628" \l "nr-qandaentry.880E09A6-DD2A-4921-87B1-A8B6C3A5F7B5488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.880E09A6-DD2A-4921-87B1-A8B6C3A5F7B5488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 4.D The scope statement will change throughout the project as change requests are received and approved. Project managers must be certain to seek out all deliverables before publishing the scope statement to prevent situations like this. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=300696628" \l "nr-qandaentry.55A1DFA7-0743-496C-9C60-664142E30B83488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.55A1DFA7-0743-496C-9C60-664142E30B83488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 5.C Cost estimates, time estimates, and quality controls are derived from the WBS in the Scope Definition process, not from the scope statement, which is an output of the Scope Planning process. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=300696628" \l "nr-qandaentry.CE548347-C005-48E3-87AD-CCB8BF8E8261488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.CE548347-C005-48E3-87AD-CCB8BF8E8261488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 6.B The scope management plan assesses the stability and reliability of the project scope and addresses how frequently scope changes will occur and what their impacts might be. The scope management plan outlines the method for requesting changes to the project scope and for incorporating those changes into the project. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=300696628" \l "nr-qandaentry.E5035317-59F0-4288-928D-9B74C72A6CE5488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.E5035317-59F0-4288-928D-9B74C72A6CE5488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 7.A Decomposition subdivides the major deliverables into smaller components. It is a tool and technique of Scope Definition, along with WBS templates, and this process is used to create a WBS. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=300696628" \l "nr-qandaentry.FEA36107-5C1F-455C-B630-842237062CAE488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.FEA36107-5C1F-455C-B630-842237062CAE488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 8.A The scope statement establishes the baseline for the project. The scope statement is an output of the Scope Planning process. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=300696628" \l "nr-qandaentry.AA5DE05B-2DDA-4AF3-BAF3-7B3825257F9A488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.AA5DE05B-2DDA-4AF3-BAF3-7B3825257F9A488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 9.D The outputs of the Scope Planning process are the scope statement, supporting detail, and the scope management plan. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=300696628" \l "nr-qandaentry.EC1F5FD5-AC3F-4A2A-8641-84A44DF2DDC3488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.EC1F5FD5-AC3F-4A2A-8641-84A44DF2DDC3488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 10.C The code of accounts is assigned to the elements in the WBS. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=300696628" \l "nr-qandaentry.3362176B-C5A6-46FC-B401-704727A09DEE488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.3362176B-C5A6-46FC-B401-704727A09DEE488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 11.D Selection A might seem like a correct answer, but selection D is a more correct answer. We dont have enough information to determine if stakeholders will require overtime. We do know that poor Scope Definition leads to cost increases, rework, schedule delays, and poor morale. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=300696628" \l "nr-qandaentry.6817136D-0044-4BF3-87B3-903B1E30A94F488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.6817136D-0044-4BF3-87B3-903B1E30A94F488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 12.B The scope management plan assesses the stability of the project scope.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=300696628" \l "nr-qandaentry.1779A4E2-8921-4D10-A013-BCCE72F2BCAC488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.1779A4E2-8921-4D10-A013-BCCE72F2BCAC488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 13.C WBSs from previous projects can be used as templates on projects that are producing similar products or services. Some companies write WBS templates to be used for projects of similar scope. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=300696628" \l "nr-qandaentry.33C0EF29-347B-47A1-A718-7733D51F3971488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.33C0EF29-347B-47A1-A718-7733D51F3971488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 14.A Level one of the WBS is the project itself. There are three new products plus the advertising campaign. Each of these is a subproject under level one. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=300696628" \l "nr-qandaentry.1BD3C0E4-498F-4DBA-B6BB-1A22448B0FEB488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.1BD3C0E4-498F-4DBA-B6BB-1A22448B0FEB488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 15.D The WBS details the entire scope of the project and includes all deliverables. It is an output of the Scope Definition process.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=300696628" \l "nr-qandaentry.6BA20466-F79B-4200-AB40-66D1B42975FD488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.6BA20466-F79B-4200-AB40-66D1B42975FD488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 16.D It is up to the project manager to determine how many levels to detail on the WBS. Small projects can easily show activities on the WBS. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=300696628" \l "nr-qandaentry.FF95A87A-1F2C-4963-9C31-8B32C4020D59488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.FF95A87A-1F2C-4963-9C31-8B32C4020D59488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 17.B The communications management plan documents what information will be distributed, how it will be distributed, to whom, and the timing of the distribution. It also documents how to collect, store, file, and make corrections to previously published material. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=300696628" \l "nr-qandaentry.E38C648E-AEAF-4E72-AA46-24776F4FB5D4488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.E38C648E-AEAF-4E72-AA46-24776F4FB5D4488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 18.A Each element in the WBS is assigned a unique identifier. These are collectively known as the code of accounts. Typically, these codes are associated with a corporate chart of accounts and are used to track the costs of the individual work elements in the WBS. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=300696628" \l "nr-qandaentry.2F531B4E-D068-4CD5-9275-5344D1308A0E488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.2F531B4E-D068-4CD5-9275-5344D1308A0E488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 19.C The work package level is the lowest level in the WBS and facilitates resource assignment and cost and time estimates. The agreed-upon deliverables in selection C would be higher levels in the WBS. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=300696628" \l "nr-qandaentry.241C4789-FBC5-4419-9274-20E99459594A488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#nr-qandaentry.241C4789-FBC5-4419-9274-20E99459594A488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" 20.C The WBS is the deliverables-oriented hierarchy of project work. Chapter 5: Resource Planning and Estimating PMP Exam Content from the Project Planning Performance Domain Covered in This Chapter: Develop Resource Management Plan. Refine Time and Cost Estimates. Hold on to your hats! Were going to cover a lot of material in this chapter, but it will go fast, I promise. Well start out with a section on Resource Planning, Organizational Planning, and Staff Acquisition. These particular processes dont get heavy coverage on the exam, so well just touch on the important points for each of these topics. Be sure to study the inputs, tools and techniques, and outputs for each of these processes so you understand which ones go with which process. We wont be able to go into much depth on the inputs and outputs, but well note the ones that are potential exam questions. Many of them are self explanatory. Well spend the majority of our time in this chapter looking at the time and cost estimating techniques. Youll find several exam questions on these areas, so spend some time understanding and memorizing the tools and techniques in all of these processes. Developing a Resource Management Plan All projects require resources, from the smallest to the largest. Resources in this case does not mean just people; it means all the physical resources required to complete the project. This includes people, equipment, supplies, materials, software, hardwareand the list goes on depending on the project youre working on. Resource Planning is the process of determining what physical resources are needed, and in what quantity, to perform project activities. Developing a resource management plan encompasses several processes including Resource Planning, Organizational Planning, Staff Acquisition, Solicitation Planning, and Procurement Planning. The combined outputs from these processes will comprise your resource management plan. Well cover Solicitation Planning and Procurement Planning in the  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=344" \l "344" \t "_parent" next chapter. Resource Inputs The Resource Planning process has several inputs you are already familiar with, one of which is the WBS. Three inputs are new to this process; they are the resource pool description, organizational policies, and activity duration estimates. The resource pool description lists the types of resources that might be needed for the project. For example, if you are working on a project that requires the use of specialized equipment during the course of the project, the resource pool description should contain the details concerning this resource, and the specific knowledge or skills needed to use the equipment. The same is true for human resources. Suppose you need an expert in thermodynamics in one or several phases of your project. The resource pool description should list this specific resource requirement. List all the materials, equipment, skills, or special talents you might need during any part of your project in this document. Organizational policies regarding materials purchases, hiring processes, leases, vendor relationships, and so on should be taken into consideration when performing Resource Planning. Dont confuse this input with the Organizational Planning process, which well discuss in the  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=592016092" \l "wbpch05P17488638D5-C0BA-459C-82D4-0FDEF2CDC9EC#wbpch05P17488638D5-C0BA-459C-82D4-0FDEF2CDC9EC" next section. Organizational policies in this case are merely how the company handles obtaining supplies and resources. Are there policies and procedures in place that should be followed? If so, you should take note of the procedures and adhere to them when ordering supplies, hiring staff, and so on. Activity duration estimates are an estimate of the number of work periods needed to complete the activities listed on the WBS. They are an output of the Activity Duration Estimating process. Well cover this process in more detail a little later in this chapter. Documenting Resource Requirements The resource pool description and organizational policies, along with the other inputs and tools and techniques in this process, will be used to produce the resource requirements output. The resource requirements document is a detailed description of the kinds of resources needed for the project and the quantity needed of each resource. Resource needs and resource quantity should be listed for each element in the WBS. Staffing requirements are a subset of resource requirements. Remember that the resource requirements document details for all the resources required for the project, not just staffing resources. The staffing requirements list should identify the kinds of skills required and the individuals or groups who might provide these skills to the project. The staffing requirements list should also document the time frames during the project when these skills will be needed. For example, the thermodynamics expert might be needed only during the design phase, so be certain to note where and when on the WBS this expert is needed. A strange thing happens here. Resource requirements become an input to other Planning processes. But so do staffing requirements, which are a subset of resource requirements. This is the only process where an output is split into two pieces and each piece becomes an input to other processes. Developing an Organizational Plan The Organizational Planning process focuses on the human resources aspect of project planning. Its purpose is to document the roles and responsibilities of individuals or groups for various project elements and then document the reporting relationships for each. Communications Planning goes hand in hand with Organizational Planning as the organizational structure will affect the way communications are carried out among project participants and the project interfaces. Organizational Planning has three inputs: project interfaces, staffing requirements, and constraints. We covered staffing requirements in the last section and dont need to add anything here. Constraints were covered in previous chapters, but there is some new information to introduce after we define project interfaces. Project Interfaces The Guide to the PMBOK identifies three categories of project interfaces: organizational interfaces, technical interfaces, and interpersonal interfaces. Each of these defines the type of reporting relationships that exist among the different categories. Organizational interfaces deal with the types of reporting relationships that exist within an organizations structure be it functional, matrix, or projectized. The reporting relationships in the organization might be formal or informal, and as the project manager, you should take these into consideration when outlining the project plan. The same is true for technical interfaces, which deal with the reporting relationships that exist within the technical areas of an organization. You should consider the technical interfaces both within the project itself and between the project process groups during hand-off. Interpersonal interfaces deal with the relationships that exist among project team members and among other project participants. All projects fall into the interpersonal interfaces and organizational interfaces categories. Whether technical interfaces affect the project depends on the project itself. The project manager should be aware of these project interfaces and, for purposes of the exam, remember that organizational interfaces are the most difficult project interfaces to deal with. Constraints This topic seems to come up a lot, so you probably remember that constraints are things that limit the options available to the project team. These typically involve time, costs, or quality. However, there are a few new constraints regarding project team organizations highlighted in the Guide to the PMBOK that you should know. Organizational Structures Organizational structures can be a constraint. For example, a strong matrix structure provides the project manager with much more authority and power than the weak matrix structure. Collective Bargaining Agreements Collective bargaining agreements with unions and contractual obligations with other organized employee associations or groups may require specialized reporting relationships and are considered constraints. Team Preferences Preferences of the project management team might be a constraint. Success with certain organizational structures in the past might lead team members to prefer one type of team or organizational structure over another. Staffing Assignments The organization of the project team will likely be influenced by the skills and knowledge of the project team members who will serve on the team. This constraint is called expected staff assignments. The outputs of this process are concerned with identifying resources, documenting their responsibilities, and determining when and how they come on and off the project. Youll need to consider the project interfaces and constraints we talked about when determining project roles and reporting relationships. As an example, collective bargaining agreements might require you to set up your reporting relationships a specific way, and individual assignments will be made based on the skills of the project team members. Assigning Resources The tools and techniques of Organizational Planning are used to help produce the following outputs: roles and responsibility assignment, staffing management plan, organization chart, and supporting detail. Well look at each of these next. Roles and Responsibility Assignment Project roles in this context refer to the project manager, project team members, and stakeholders. The roles and responsibilities for this process are tied to the project scope and WBS. Many times a project manger will use a Responsibility Assignment Matrix (RAM) to graphically display this information. A RAM is usually depicted as a chart with resource names listed in each row (for example, programmers, testers, trainers, etc.) and WBS elements as the columns with indicators in the intersections where the resources are needed. However, the level of detail is up to you. One RAM might be developed for the level two WBS elements on a complex project with more RAMs subsequently produced for the additional WBS levels. Or a RAM might be constructed with level three elements only.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=766691534" \l "wbpch05T1P1C175720B-D8EB-423D-B9A6-BC518538C1DD#wbpch05T1P1C175720B-D8EB-423D-B9A6-BC518538C1DD" Table 5.1 shows a sample RAM for a software development team. Table 5.1: Sample RAM Activity A Activity B Activity C ProgrammersXXTestersXXTrainersXXStaffing Management Plan This plan documents how and when people resources are introduced to the project and later released. Again, the level and amount of detail contained in this plan are up to you. Note that many staffing management plans make use of a resource histogram. This is usually drawn in chart form with project time along the horizontal axis and hours needed along the vertical axis. The example histogram below shows the hours needed for an asphalt crew on a construction project.  HYPERLINK "javascript:PopImage('IMG_23','http://images.books24x7.com/bookimages/id_3964/g0501_0.jpg','480','300')" \t "_self"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/g0501.jpg" \* MERGEFORMATINET  Organization Chart The organization chart is just like the org charts youve seen dozens of times before. It shows the reporting relationships of the project members. An organizational breakdown structure (OBS) relates WBS elements, usually the work package level for very large projects, to the organizational unit thats responsible for completing the work. Supporting Detail Information that further describes the organization and impacts to the organizational units due to work requests is considered supporting detail. Job descriptions and training needs are other examples of information gathered for this output. This process ensures roles and responsibilities are clearly outlined and that reporting structures are documented and communicated to all project participants. This process is completed early on in project Planning and should be reviewed regularly throughout the project to assure accuracy and document changes that are needed as project circumstances change. Acquiring Staff The Staff Acquisition process involves attaining and assigning human resources to the project. Project staff may come from inside the company or outside the company in the form of full-time employees hired specifically for the project, or as contract help. In any case, its your job as project manager to ensure that resources are available and skilled in the project activities theyre assigned to. The Staff Acquisition process inputs are as follows: the staffing management plan that was produced as an output to Organizational Planning, staffing pool description, and recruitment practices. Recruitment practices are a matter of making certain you consult any organizational procedures or policies currently in place when hiring staff. Staffing Pool Description Some project activities may require special skills or knowledge in order to be completed. The staffing pool description involves taking this information into account as well as personal interests, characteristics, and availability of potential team members before making assignments. For example, you will want to consider previous experience of the staff member youre thinking of assigning to a specific activity. Have they performed this function before? Do they have the experience necessary for the level of complexity this project activity calls for? Personal interests and personal characteristics play a big role as well. If the person youre thinking of just isnt interested in the project, they arent likely to perform at their best. If you can, think about assigning someone else in a case like this. Unfortunately, some people just dont play well with others. When youre assigning staff, if at all possible, dont put the only two people in the whole company who cant get along together on the same project. If the staff member you need has a skill no one else has or they can perform a function like no one else can, you might not have a choice. In this case, youll have to employ other techniques to keep the team cohesive and working well together despite the not-so-friendly characteristics of the vital team member. One final consideration: Check on the availability of key team members. If the team member you must have for the activity scheduled in February is on her honeymoon, you probably arent going to win the toss. Negotiating for Team Members Negotiation, preassignment, and procurement are tools and techniques of the Staff Acquisition process. As the project manager, you will use the negotiation technique quite a lot. Youll have to negotiate with functional managers and other organizational department managers for resources for your project and for the timing of those resources. Preassignment happens when the project is put out for bid and specific team members are promised as part of the proposal, or when internal project team members are promised and assigned as a condition of the project. This should be spelled out in the project charter in this case. Procurement is the process of hiring individuals or teams of people for certain project activities either as full-time employees or as contract help during the course of the project or project phase. Assigning Project Staff After determining the staffing pool description, reviewing recruitment practices, and negotiating for staff, project team members are assigned to project activities, and a project team directory is published listing the names of all project team members and stakeholders. The resulting outputs of the Staff Acquisition process are as follows: assignment of project staff and project team directory. Now that we know what the project activities are and what resources are needed to perform these activities, well need to perform time and cost estimates for these activities. Were working toward the development of the project schedule where we determine actual start and stop dates for activities, but we have several processes to complete before we get there.  INCLUDEPICTURE "http://www.books24x7.com/book/id_3964/_.gif" \* MERGEFORMATINET Real World ScenarioThe Only Candidate Hey, did you hear? your friend Story asks. Roger has been assigned to the project team. Over my dead body, you reply as you push away from your computer screen. You head straight for the project managers office and dont wait for a response from Story. Ann seats the phone into the cradle just as you walk through the door. Fortunately for you, Anns door is always open and she welcomes drop-ins. Seems like something is on your mind, Ann says. What can I help with? Story just told me that Roger has been assigned to the project team. I cant work with Roger. Hes arrogant and doesnt respect anyones work but his own. He belittles me in front of others, and I dont deserve that. I write good code, and I dont need Roger looking over my shoulder. I want to be on this team, but not if Roger is part of it. Ann thinks for a minute and replies, I want you to have the opportunity to work on this project; its a great opportunity for you. But there isnt anyone else who can work on the analysis phase of this project except Roger. Hes the only one left who has a solid understanding of the mainframe legacy code. Unfortunately, those old programs were never documented well, and theyve evolved over the years into programs on top of programs. Without Rogers expertise of the existing system, wed blow the budget and time estimates already established for this project. What would you say to a meeting with you and Roger and me to talk about these issues and see if we cant work this out? Time Estimating Techniques Estimating the duration of project activities involves identifying the activities and sequencing them in the correct order. Then, time estimates are assigned as baseline measurements and used to track project activities to ensure the project is completed on time. Keep in mind that for purposes of the exam, Activity Definition, Activity Sequencing, Activity Duration Estimating, and Schedule Development are separate processes each with inputs, tools and techniques, and outputs. In practice, especially for small- to medium-sized projects, these processes are condensed into one function or step. Well take a look at each of the activity-related processes now, and well cover Schedule Development in  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=427" \l "427" \t "_parent" Chapter 7. Understanding the Activity Definition Process The Activity Definition process is a further breakdown of the work package elements of the WBS. This step is necessary when you are working with large projects where the original WBS goes to only level two or level three elements. At this point, level two or three is then assigned to subproject managers to further break down and identify individual activities. In practice, many times Activity Definition might be accomplished during the construction of the WBS, and the activities themselves are the work package level. This process produces an output called an activity list, which is an extension of the WBS. The activity list should contain all the activities of the project with a description of each activity so that team members understand what the work is and how it is to be completed. Once the activity list is completed, the WBS might need to be updated. This is the second output in this process. The exam may have a question or two regarding the activity list. All of the other inputs and tools and techniques in Activity Definition have been covered in previous chapters. Understanding the Activity Sequencing Process Weve identified the activities and now need to sequence them in a logical order and find out if dependencies exist among the activities. Heres a classic example. Lets say youre going to paint your house, but unfortunately, its fallen into a little disrepair. The old paint is peeling and chipping and will need to be scraped before a coat of primer can be sprayed on the house. After the primer dries, then the painting can commence. In this example, the primer activity depends on the scraping. You cantokay, you shouldntprime the house before scraping off the peeling paint. The painting activity depends on the primer activity in the same way. You really shouldnt start painting until the primer has dried. During Activity Sequencing, you will use a host of inputs and tools and techniques to produce the final outputs, a project network diagram, and activity list updates. Were going to look at three of the inputs, and well examine all of the tools and techniques needed for this process. The remaining inputs have been discussed previously. Dependencies Three of the inputs to Activity Sequencing are as follows: mandatory dependencies, discretionary dependencies, and external dependencies. Dependencies are just like we described in the house-painting example. But as youve probably guessed, the Guide to the PMBOK defines dependencies differently depending on their characteristics: Mandatory Dependencies Mandatory dependencies, also known as hard logic or hard dependencies, are defined by the type of work being performed. The scraping, primer, painting sequences are examples of mandatory dependencies. The nature of the work itself dictates the order the activities should be performed in. Discretionary Dependencies Discretionary dependencies are delineated by the project management team. Discretionary dependencies are also known as preferred logic, soft logic, or preferential logic. These are usually process or procedure driven, or best practices techniques based on past experience. For example, past experience on house-painting projects has shown that all trim work should be hand painted while the bulk of the main painting work should be done with a sprayer. External Dependencies External dependencies are, well, external to the project. The weather forecast might be an external dependency in the painting example because you wouldnt want to start painting prior to a rain storm. Once weve identified the dependencies and assembled all the other inputs for the Activity Sequencing process, well take this information and produce a diagram, or schematic display, of the project activities. The project network diagram shows the dependencies, or logical relationships, that exist among the activities. We can use one of several tools and techniques to produce this output. Well examine each in detail below. Precedence Diagramming Method (PDM) The precedence diagramming method (PDM) is what most project management software programs use today. Precedence diagrams connect activities with arrows that show dependencies between the activities. This method is also called activity on node (AON). The activity information is written on the nodes with arrows connecting the nodes, or dependent activities. The nodes are shown as rectangles, and you are free to put as much information about the activity on the node as youd like. The minimum information that should be displayed on the node is the activity name. Sometimes the nodes are displayed with activity name, activity number, start and stop dates, due dates, slack time, and so on. (Well cover slack time in a later chapter.) For the exam, remember that the PDM uses only one time estimate to determine duration. The example below shows a PDM, or AON, of the house-painting example.  HYPERLINK "javascript:PopImage('IMG_24','http://images.books24x7.com/bookimages/id_3964/g0502_0.jpg','582','145')" \t "_self"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/g0502.jpg" \* MERGEFORMATINET  The PDM is further defined by four types of logical relationships. The Guide to the PMBOK calls these dependencies or precedence relationships. You may already be familiar with these if youve used Microsoft Project, or some other similar project management software program. The four dependencies are as follows: Finish to start (FS) This is the most frequently used logical relationship. This relationship says that the independent, or from activity, must finish before the dependent, or to activity, can start. Start to finish (SF) The start to finish relationship says that the independent activity must start before the dependent activity can finish. This logical relationship is seldom used. Finish to finish (FF) This relationship says that the independent activity must finish before the dependent activity finishes. Start to start (SS): I think youre getting the hang of this. This relationship says that the independent activity must start before the dependent activity can start. Keep these logical relationships in mind when constructing your project network diagram. Remember that finish to start is the most commonly used logical relationship. Arrow Diagramming Method (ADM) The arrow diagramming method (ADM) is visually the opposite of the PDM. The arrow diagramming method places activities on the arrows, which are connected to dependent activities with nodes. This method is also called activity on arrow (AOA). This method is seldom used today. For the record, AOA allows for more than one time estimate to determine duration. The example below shows the AOA method applied to our house-painting example.  HYPERLINK "javascript:PopImage('IMG_25','http://images.books24x7.com/bookimages/id_3964/g0503_0.jpg','652','119')" \t "_self"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/g0503.jpg" \* MERGEFORMATINET  Conditional Diagramming Methods The only thing you need to know regarding conditional diagramming methods, such as the Graphical Evaluation and Review Technique (GERT) and System Dynamics models, is that they allow for nonsequential activities such as loops and conditional branches. PDM and ADM do not allow loops or conditional branches. We will cover GERT in more depth in a later chapter. Network Templates These templates are like the templates weve talked about in other processes. Perhaps the project youre working on is similar to a project thats been completed in the past. You can use a previous project network diagram as a template for the current project. I recommend you memorize the graphic below to help remember the tools and techniques of the Activity Sequencing process and their characteristics for the exam. This may look a little strange, but I think it will work for you now that you understand what each of these diagramming methods is about. This is information you need to know for the exam. If this graphic isnt useful for you, come up with your own mnemonic or sample that will help you remember which of these is which. Dont say I didnt warn you.  HYPERLINK "javascript:PopImage('IMG_26','http://images.books24x7.com/bookimages/id_3964/g0504_0.jpg','240','292')" \t "_self"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/g0504.jpg" \* MERGEFORMATINET  The outputs of Activity Sequencing are the project network diagram and activity list updates. Weve just spent a good deal of time describing the different types of project network diagrams you can construct using PDM or ADM techniques. Keep in mind that the construction of these network diagrams might bring activities to light that you missed when defining your activity list, or it might make you break an activity down into two activities in places where you thought one activity might work. If this is the case, you will produce activity list updates based on this new information. Were sailing right along. One more activity process remains, and then weve completed the time estimating segment of this chapter. Estimating Activity Durations The Activity Duration Estimating process takes the activities defined in the WBS and activity list and assesses the number of work periods needed to complete these activities. Work periods are usually expressed in hours or days. However, larger projects might express duration in weeks or months. Keep in mind that when youre estimating activity duration, you are estimating the length of time the activity will take to complete, including any elapsed time needed from the beginning to the ending of the activity. For example, lets look at the house-painting project. We estimate that it will take three days, including drying time, to prime the house. Now, lets say priming is scheduled to begin on Saturday, but our crew doesnt work on Sunday. The activity duration in this case is four days, which includes the three days to prime and dry plus the Sunday the crew doesnt work. Most project management software programs will handle this kind of situation automatically. Activity Duration Estimating is performed using the following tools and techniques. Expert Judgment Activities are most accurately estimated by the staff members who will perform the activities. In this case, expert judgment is used by team members because of their experience with similar activities in the past. You should be careful with these estimates, though, as they are subject to bias and arent based on any scientific means. Its good practice to combine expert judgment with historical information and use as many experts as you can. Analogous Estimating Analogous estimating, also called top-down estimating, is a form of expert judgment. With this technique, you will use the actual duration of a similar activity completed on a previous project to determine the duration of the current activity provided the information was documented and stored with the project information on the previous project. This technique is most useful when the previous activities youre comparing are truly similar to the activity youre estimating and dont just appear to be similar. And you want the folks who are working on the estimate to have experience with these activities. Top-down estimating techniques are also used to estimate total project duration. The best way to think about top-down techniques is to look at the estimate as a whole. Think about being on a mountaintop where you can see the whole picture as one rather than all the individual items that make up the picture. For instance, lets go back to our house-painting example. You would compare a previous house-painting project to the current house-painting project where the houses are of similar size and the paint youre using is the same quality. The first house-painting project can be used to estimate the project duration for the second house-painting project because of the similarities in the project. Top-down techniques are useful when youre early on in the project Planning process and are only just beginning to flesh out all the details of the project. Sometimes during the project selection process, the selection committee may want an idea of the projects duration. You can derive a project estimate at this stage by using top-down techniques. Qualitatively Based Durations The best way to describe the meaning of qualitatively based durations is with an example. Suppose you are working on a company-wide network upgrade project. This requires you to run new cable to the switches on every floor in the building. Qualitatively based durations can be used to determine activity duration estimates by taking a known elementin this case, the amount of cable neededand multiplying it by the amount of time it takes to install a unit of cable to come up with an estimate. In other words, suppose we have 10,000 meters of new cable to run. We know from past experience it takes 1 hour to install 100 meters. Using this measurement, we can make a qualitatively based estimate for this activity of 100 hours to run the new cable. Therefore, the cable activity duration estimate is 100 hours. Reserve Time (Contingency) Reserve time, also called buffer or contingency time in the Guide to the PMBOK, means adding a portion of time to the activity to account for schedule risk. You might choose to add a percentage of time or a set number of work periods to the activity or the overall schedule. For example, we know it will take 100 hours to run new cable based on the qualitative estimate we came up with earlier. We also know that sometimes we hit problem areas when running the cable. To make sure we dont impact the project schedule, we build in a reserve time of 10 percent of our original estimate to account for the problems we might encounter. This brings our activity duration estimate to 110 hours for this activity.  INCLUDEPICTURE "http://www.books24x7.com/book/id_3964/_.gif" \* MERGEFORMATINET Real World ScenarioDesert State University (DSU) DSU has hired a contract agency to create their new registration website. The website will allow students in good academic standing to register for classes over the Internet. You have been appointed the project manager for the DSU side of this project. Youll be working with Henry Lu from Web Sites International to complete this project. Henry has given you an activity list and asked for time estimates that he can plug into the project plan. Your first stop is Jim Mahoneys desk. Hes the expert on the mainframe registration system and will be writing the interface programs to accept registration data from the new website. Jim will also create the download that the Internet program will use to verify students academic standing. Jim has created other programs just like this in the past. His expertise and judgment are very reliable. The next stop is Gloria Stillwater. Shes the new team leader over the testing group. Gloria has been with DSU for only one month. Since she has no experience working with DSU data and staff members, she tells you shell get back to you within a week with estimates for the testing activities. She plans to read through the project binders of some similar projects and base her estimates against the historical information on similar projects. Shell run the estimates by her lead tester before giving them to you.  INCLUDEPICTURE "http://www.books24x7.com/book/id_3964/_.gif" \* MERGEFORMATINET Cost Estimating Techniques We now have an exhaustive breakdown of project activities, and we have some pretty good duration estimates. Now the question thats forever on the mind of the executive management staff: How much is it going to cost? The purpose of the Cost Estimating process is to answer that question. Every project has a budget, and part of completing a project successfully is completing it within the approved budget. Sometimes project managers are not responsible for the budget portion of the project. This function is assigned instead to a functional manager who is responsible for tracking and reporting all the project costs. I believe project mangers will have more and more responsibility in this area as the project management discipline evolves. Keep in mind that if you, as the project manager, dont have responsibility for the project budget, your performance evaluation for the project should not include budget or cost measurements. Accuracy in Cost Estimating As with time estimates, the WBS is the key to determining accurate cost estimates. The Cost Estimating process develops a cost estimate for the resources required for each activity outlined in the WBS. This includes weighing alternative options and examining trade-offs. For example, many times software development projects take on a life of their own. The requested project completion dates are unrealistic; however, the project team commits to completing the project on time and on budget anyway. How do they do this? By cutting things like design, analysis, and documentation. In the end, the project might get completed on time and on budget, but was it really? The costs associated with the extended support period due to a lack of design and documentation and the hours needed by the software programmers to fix the reported bugs arent included in the original cost of the project (but they should have been). Therefore, the costs actually exceed what was budgeted. You should examine trade-offs such as these when determining cost estimates. When you are determining cost estimates, be certain to include all the costs of the project over its entire life cycle. Include warranty periods and ongoing costs in your estimates. As in the example above, software projects often have warranty periods that guarantee bug fixes or problem resolution within a certain time frame. This is a legitimate cost that should be included in your estimates. One more note: Dont confuse pricing with Cost Estimating. If you are working for a company that performs IT services on contract, for example, the price you will charge for your services is not the same thing as the costs to perform the project. The costs are centered around the resources needed to produce the product or service of the project. The price your company might charge for the service includes not only these costs, but a profit margin as well. Cost Estimating Inputs You are already familiar with most of the Cost Estimating inputs. Two that we havent seen before are the resource rates and the chart of accounts. Resource rates are the unit cost of the resources youre considering. If youre hiring contract Java coders, their unit cost might be $135 per hour. To determine the estimate, you multiply the number of hours needed, which was estimated during the Activity Duration Estimating process, by the number of resources needed. If your project requires certain materials or equipment, use the unit cost to calculate the appropriate estimate. When unit costs are not known, you might need to estimate them as well. Be certain to estimate all the resources youre going to need for the project. This includes staff wages, contractor costs if applicable, materials, supplies, equipment, hardware, software tools, design tools, and so on. A chart of accounts is the coding system used by the finance department to record transactions in the companys general ledger. The chart of accounts is where the project costs will be tracked. The code of accounts we talked about in association with the WBS comes from the chart of accounts. Cost Estimating Tools Cost Estimating has five tools and techniques used to derive estimates: analogous estimating, parametric modeling, bottom-up estimating, computerized tools, and other Cost Estimating methods. Well look at each of these next. Analogous Estimating We talked about this process in the time estimating section earlier in this chapter. The information relayed there applies to Cost Estimating as well. Remember that analogous estimating is a top-down estimating technique and is a form of expert judgment. It is a less accurate technique than the others well look at. Parametric Modeling Parametric modeling is a mathematical model that uses parameters, or project characteristics, to forecast project costs. The idea here is to find a parameter, or multiple parameters, that changes proportionately with project costs and then plug that into the model to come up with a total project cost. In order to use this technique, there must be a pattern that exists in the work so that you can use an estimate from that work element to derive the total project estimate. For example, we might know from past experience that it costs $275 per square foot to build an office building. The $275 becomes the parameter that we use in the parametric model to come up with an estimate of total project cost. If youre using multiple parameters, each parameter is also assigned a weight that is included in the calculations. This allows for cost estimates to be calculated simultaneously. Parametric modeling is similar to analogous estimating because it estimates the cost of the entire project (top-down). It is more accurate when historical information is used to help construct the model and when the parameters are easily quantified. Bottom-up Estimating The bottom-up estimating technique is the opposite of top-down estimating. Here you will estimate every activity or work item individually and then roll up that estimate, or add them all together, to come up with a total project estimate. This is a very accurate means of estimating, provided the estimates at the work package level are accurate. However, it takes a considerable amount of time to perform bottom-up estimating as every work package must be assessed and estimated accurately to be included in the bottom-up calculation. You wouldnt choose this technique to provide a cost estimate for the project in the Initiation stage if one were requested as you dont have enough information at that stage to use the bottom-up technique. Instead, use the top-down estimation technique when a project cost estimate is needed early on in the project selection stage. Computerized Tools Project management software can be a useful tool in Cost Estimating as are spreadsheet programs. Using software can make the job of Cost Estimating easy and fast. Other Cost Estimating Methods The first four tools and techniques described in this section are the primary methods youll use to calculate cost estimates. You may also use other techniques or methods. For example, when your project is performed under contract or you need to procure resources under contract, you might analyze vendor bids to determine cost estimates for these activities. Make certain to document the Cost Estimating method you used in the supporting detail output of this process. Documenting the Cost Estimates Obviously, one of the outputs of the Cost Estimating process is the cost estimates. These are quantitative amounts, usually stated in dollars, that reflect the cost of the resources needed to complete the project activities. The tools and techniques we just described help us derive these estimates. Supporting detail and the cost management plan are the remaining two Cost Estimating outputs. Supporting detail is just as weve seen in other processes. Any information that supports how the estimates were developed, what assumptions were made during the Cost Estimating process, and any other details you think need to be documented go here. Cost variances will occur, and estimates will be refined, as you get further into your project. As youve probably suspected, there is a plan that defines how these cost variances should be managed. That plan is called the cost management plan and is the last output of the Cost Estimating process. Your cost management plan should define how changes to cost estimates, or changes in resource unit costs, will be reflected in the project budget. Changes or variances with a significant impact should be communicated to the project sponsor and stakeholders. The cost management plan should define how and when this notification process works as well. Cost Estimating uses several techniques to make an accurate assessment of the project costs. In practice, using a combination of techniques is your best bet to come up with the most reliable cost estimates. The Cost Estimating output will become an input to the Cost Budgeting process, which allows us to establish a baseline for project costs to track against.  INCLUDEPICTURE "http://www.books24x7.com/book/id_3964/_.gif" \* MERGEFORMATINET Project Case Study: New Kitchen Heaven Retail Store Thanks everyone for your timely responses. Ill look over the activity lists and estimates youve assigned and start working on the project plan. The meeting adjourns, and you head back to your office to review the estimates and resource assignments. Youd like to get the project schedule constructed soon and go over it with Dirk. This information is the first cut at the project schedule. Ricardo Ramirez from the IT department has outlined his activity list and estimates. He reminds you that data is sent from each store over a T1 connection, not over satellite as Jill told you originally. Ricardos estimates are as follows. Hes also taken the trouble to write them in sequential order. Procure the T1 connection. This takes 30 to 45 days and will have on-going costs of $300 per month. This can be done concurrently with the other activities below. Ricardo will handle this activity. Run Ethernet cable throughout the building. This activity depends on the lease being signed and must finish before the build-out can start. Estimated time to complete is 16 hours using qualitatively based estimates. Ricardo has one person on staff who can complete this specialized activity. His first available date is October 5. Purchase the router, switch, server, and rack for the equipment room and four point-of-service terminals. Estimated costs are $17,000. Delivery time is 2 weeks. Ricardo will do this activity. Install router and test connection. Testing depends on the T1 installation at demarcation. Time estimate to install is 8 hours. Ricardos staff will do this activity. Install switch. Based on past experience, time estimate to install is 2 hours. Ricardos staff will do this activity. Install server and test. Testing depends on the T1 connection installation. Based on past experience, time estimate to install is 6 hours. Ricardos staff will do this activity. Web team to add the new store location and phone number to the look-up function on the Internet site. Time estimate is 8 hours. Ricardo will assign his applications-programming manager to this activity. This activity depends on the lease being signed. Jake and Jill have each written similar lists with estimates and resource assignments. You begin to align all the activities in sequential order and discover a problem. Jill needs 10 days to stock shelves and train employees, meaning that the build-out must be finished by January 14. Build-out takes approximately 120 days and therefore must start by September 19. The problem is that Ricardos Ethernet cable expert isnt available until October 5, and he needs two days to complete the cabling. This pushes out the build-out start date by almost 2 weeks, which means the project completion date, or store-opening date, is delayed by 2 weeks. After gathering more information from Ricardo, you head to Dirks office. So, Dirk, you conclude after filling him in on all the details. We have two options. Hire a contractor to perform the cable run since Ricardos person isnt available, or push the store opening out by 2 weeks. Dirk asks, How much will the contractor charge to run the cable, and are they available within the time frame you need? Yes, they are available, and Ive already requested Ricardo book the week of September 17th to hold this option open for us. Theyve quoted a price of $10,000. Okay, lets bring in the contractor. $10,000 isnt going to break the budget at this point. How is that planning coming anyway? Signed a lease yet? Yes, weve signed the lease. Jake has been meeting with Gomez construction on the build-out. Weve used Gomez on three out of the last five new stores and have had good luck with them. Project Case Study Checklist Activity Definition Activity Sequencing Activity Duration Estimating Expert judgment Qualitatively based estimates Cost Estimating Other Cost Estimating methodsvendor bids Summary The Resource Planning process considers all the resources needed and the quantity of resources needed to perform project activities. This information is tied to the WBS elements and is detailed in the resource requirements document. Staffing requirements are a subset of the resource requirements output. Staffing requirements are concerned with the human resource aspect of the resource plan and detail special skills or knowledge that might be needed for a project activity. Organizational planning identifies and assigns roles and responsibilities and reporting relationships. Many times the roles and responsibilities assignments are depicted in a Responsibility Assignment Matrix (RAM). The staffing management plan describes how and when project team members will be brought on and off the project and is an output of the Organizational Planning process. The Staff Acquisition process details staff assignments and publishes the project team directory. Duration estimates are produced as a result of the Activity Duration Estimating process. Prior to this process, activities must be identified and sequenced in logical order. Activity Sequencing is performed using PDM, which is an activity on node (AON) method, or ADM, which is an activity on arrow (AOA) methodor with conditional diagramming or network templates. ADM is seldom used today. Activity duration estimates document the number of work periods needed for each activity including their elapsed time. Analogous estimating, also called top-down estimating, is one way to determine activity duration estimates. Top-down techniques can also be used to estimate project durations and total project costs. Qualitatively based durations multiply a known element like the quantity of materials neededby the time it takes to install or complete one unit of materials. The result is a total estimate for the activity. Reserve time takes schedule risk into consideration by adding an additional percentage of time or another work period to the estimate just in case you run into trouble. The Cost Estimating process determines how much the project resources will cost, which is usually stated in dollars. The cost management plan outlines how costs will be managed throughout the project. Analogous estimating is one technique that can be used to determine cost estimates. Another estimating technique is parametric modeling. This is a mathematical model that forecasts project costs. Bottom-up estimating can be used for project cost estimates. This involves estimating the cost of each work package and then rolling these up to come up with a total cost. Exam Essentials Be able to identify the tools and techniques of Activity Sequencing.Precedence diagramming method (PDM), arrow diagramming method (ADM), conditional diagramming method, and network templates. Be able to discuss the difference between PDM and ADM.PDM uses activity on node (AON) diagrams, and ADM uses activity on arrow (AOA) diagrams. Be able to name the tools and techniques of Activity Duration Estimating.Expert judgment, analogous estimating, qualitatively based durations, and reserve time. Be able to identify the tools and techniques of Cost Estimating.Analogous estimating, parametric modeling, bottom-up estimating, computerized tools, and other Cost Estimating methods. Be able to define the difference between analogous estimating and bottom-up estimating.Analogous estimating is a top-down technique that uses expert judgment and historical information. Bottom-up performs estimates for each work item and rolls them up to a total. Key Terms Before you take the exam, be certain you are familiar with the following terms: Activity DefinitionCost EstimatingActivity Duration Estimatinglogical relationshipactivity listorganizational breakdown structure (OBS)activity on arrow (AOA)Parametric modelingactivity on node (AON)precedence diagramming method (PDM)Activity Sequencingresource histogramanalogous estimatingResource Planningarrow diagramming method (ADM)Responsibility Assignment Matrix (RAM)bottom-up estimatingStaff AcquisitionReview Questions 1. Which of the following is true regarding the Resource Planning process? Resource Planning involves the human resource aspect of planning only, and its output is staffing requirements. Resource Planning involves the human resource aspect of planning only, and its output is resource requirements. Resource Planning encompasses all the physical resources needed for the project, and its output is staffing requirements. Resource Planning encompasses all the physical resources needed for the project, and its output is resource requirements.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=535007302" \l "answer.nr-qandaentry.13BD601B-FDEA-44C2-8F91-937D61E6CAD4C175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.13BD601B-FDEA-44C2-8F91-937D61E6CAD4C175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 2. Sally is a project manager working on the Resource Planning process. She should consider all of the following when developing the resource requirements output except: WBS Supply purchase policies Resource rates Special knowledge and talents  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=535007302" \l "answer.nr-qandaentry.8D327016-5F7B-4D90-BBCB-53F518F4AAEEC175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.8D327016-5F7B-4D90-BBCB-53F518F4AAEEC175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 3. Which of the following are constraints that you might find during the Organizational Planning process? Organizational structure, expected staff assignments, collective bargaining agreements, and project management team preferences Organizational structure, organizational interfaces, technical interfaces, and interpersonal interfaces Organizational interfaces, expected staff assignments, collective bargaining agreements, and project management team preferences Organizational interfaces, technical interfaces, and interpersonal interfaces HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=535007302" \l "answer.nr-qandaentry.47928146-BDBD-46A5-8B1A-0623BFC76219C175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.47928146-BDBD-46A5-8B1A-0623BFC76219C175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 4. You are the project manager for a scheduled version release of your companys software tracking product. You have linked the WBS and project scope definition and assigned roles and responsibilities. You might want to display the roles and responsibilities in which of the following? RDM PDM AOA RAM  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=535007302" \l "answer.nr-qandaentry.5E6BA9C3-B955-45B7-AE1B-F28212CE2F6FC175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.5E6BA9C3-B955-45B7-AE1B-F28212CE2F6FC175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 5. Which of the following is true regarding the staffing management plan? It details the resource requirements and the quantity of resources needed for project activities. It is an output of the Resource Planning process. It details how and when staff resources will be brought on and off the project. It is an output of the Organizational Planning process. It details how and when staff resources will be brought on and off the project. It is an output of the Resource Planning process. It details the resource requirements and the quantity of resources needed for project activities. It is an output of the Organizational Planning process.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=535007302" \l "answer.nr-qandaentry.8C645553-D763-493D-BDC0-2AB6B211635BC175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.8C645553-D763-493D-BDC0-2AB6B211635BC175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 6. All of the following describe the activity list except: Its an extension of the WBS. It includes all activities of the project. It describes the WBS updates. It includes a description of project activities.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=535007302" \l "answer.nr-qandaentry.E0A30260-27A4-40F4-BC15-702E25182D9DC175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.E0A30260-27A4-40F4-BC15-702E25182D9DC175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 7. You are the project manager for Design Your Web Site, Inc. Your company is designing the website for a national grocery store chain. You have your activity list in hand and are ready to diagram the activity dependencies using the PDM technique. You know that: PDM uses AON diagramming methods. PDM uses AOA diagramming methods. PDM uses ADM diagramming methods. PDM uses PDM diagramming methods.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=535007302" \l "answer.nr-qandaentry.0DCEAA83-CFF3-402B-949A-8AADE447DCDBC175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.0DCEAA83-CFF3-402B-949A-8AADE447DCDBC175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 8. You are the project manager for Design Your Web Site, Inc. Your company is designing the website for a national grocery store chain. You have your activity list in hand and several time estimates and are ready to diagram the activity dependencies. You should use which of the following? PDM techniques PDM or ADM techniques AON techniques ADM techniques  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=535007302" \l "answer.nr-qandaentry.461D7001-33B6-407D-9B1C-BA139C8FD087C175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.461D7001-33B6-407D-9B1C-BA139C8FD087C175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 9. All of the following are true regarding the tools and techniques of Activity Sequencing except: GERT uses analogous methods. GERT allows for loops. GERT is a conditional diagramming method. GERT allows for conditional branches.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=535007302" \l "answer.nr-qandaentry.378D3490-BEEC-4D2A-AA00-64EE37DDE8EAC175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.378D3490-BEEC-4D2A-AA00-64EE37DDE8EAC175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 10. You are the project manager for Changing Tides video games. You have produced a project network diagram and have updated the activity list. Which process have you just finished? The Activity Sequencing process, which identifies all the specific activities of the project The Activity Sequencing process, which identifies all the activity dependencies The Activity Duration Estimating process, which diagrams project network time estimates The Activity Duration Estimating process, which identifies all the dependent activities of the project  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=535007302" \l "answer.nr-qandaentry.1E936919-4254-4B6B-8295-E78652646035C175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.1E936919-4254-4B6B-8295-E78652646035C175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 11. You are the project manager for Changing Tides video games. You have gathered the inputs for the Activity Duration Estimating process. You will employ which tools and techniques to produce the outputs for this process? Activity list, analogous estimating, qualitatively based durations, and alternatives identification Activity list, analogous estimating, expert judgment, and qualitatively based durations Expert judgment, analogous estimating, qualitatively based durations, and reserve time Expert judgment, alternatives identification, qualitatively based durations, and reserve time HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=535007302" \l "answer.nr-qandaentry.DEBA187F-5E69-46EB-80BD-5D72E2AAAFE8C175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.DEBA187F-5E69-46EB-80BD-5D72E2AAAFE8C175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 12. As project manager, you know that all of the following are true concerning analogous estimating techniques except: Its a qualitatively based estimating technique. Its a top-down estimating technique. Its a tool and technique of Activity Duration Estimating and Cost Estimating. Its a form of expert judgment.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=535007302" \l "answer.nr-qandaentry.FEDD528B-750A-4C35-AEC3-96ECD8A45077C175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.FEDD528B-750A-4C35-AEC3-96ECD8A45077C175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 13. You have been hired as a contract project manager for Grapevine Vineyards. Grapevine wants you to design an Internet wine club for their customers. Customers must preregister before being allowed to order wine over the Internet so that legal age can be established. You know that the module to verify preregistration must be written and tested using data from Grapevines existing database. This new module cannot be tested until the data from the existing system is loaded. This is an example of which of the following? Preferential logic Soft logic Discretionary dependency Hard logic HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=535007302" \l "answer.nr-qandaentry.1939D56F-EA97-4F84-8578-499A83A2B897C175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.1939D56F-EA97-4F84-8578-499A83A2B897C175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 14. You have been hired as a contract project manger for Grapevine Vineyards. Grapevine wants you to design an Internet wine club for their customers. One of the activities for this project is the installation and testing of several new servers. You know from past experience it takes about 16 hours per server to accomplish this task. Since youre installing 10 new servers, you estimate this activity to take 160 hours. Which of the estimating techniques have you used? Analogous estimating Bottom-up estimating Qualitatively based durations Reserve time  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=535007302" \l "answer.nr-qandaentry.A4FF58F8-AFD3-4DDB-AD8A-213D4191010DC175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.A4FF58F8-AFD3-4DDB-AD8A-213D4191010DC175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 15. Your project sponsor has requested a cost estimate for the project. She would like the cost estimate to be as accurate as possible as this might be her one and only chance to secure the budget for this project due to recent cuts in special projects. You decide: To use analogous estimating techniques To use bottom-up estimating techniques To use top-down estimating techniques To use expert judgment techniques HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=535007302" \l "answer.nr-qandaentry.A3B3E951-425E-4D93-8684-51AD35222987C175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.A3B3E951-425E-4D93-8684-51AD35222987C175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 16. Your project sponsor has requested a cost estimate for the project youre working on. This project is similar in scope to a project you worked on last year. She would like to get the cost estimates as soon as possible. Accuracy is not her primary concern right now. She needs a ball park figure by tomorrow. You decide to use: Analogous estimating techniques Bottom-up estimating techniques Parametric modeling techniques Computerized modeling techniques HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=535007302" \l "answer.nr-qandaentry.2F19B1A1-5C9B-408A-9155-17574C8F4C31C175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.2F19B1A1-5C9B-408A-9155-17574C8F4C31C175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 17. All of the following are true regarding parametric modeling except: Its a form of top-down estimating. Its a mathematical model. Its a tool used to estimate project costs. Its a tool used to estimate project time.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=535007302" \l "answer.nr-qandaentry.06E2DC83-9577-4865-8BF7-57BAB65AF873C175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.06E2DC83-9577-4865-8BF7-57BAB65AF873C175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 18. Your projects primary constraint is quality. In order to make certain the project team members dont feel too pressed for time and to avoid schedule risk, you decide to use which of the following activity estimating tools? Expert judgment Qualitatively based durations Reserve time Analogous estimating  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=535007302" \l "answer.nr-qandaentry.3D5F9202-CCA5-4B9B-B63D-C9A128827520C175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.3D5F9202-CCA5-4B9B-B63D-C9A128827520C175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 19. You are the project manager for BB Tops, a nationwide toy store chain. You are working on estimates for your latest project and have gathered several variables for your model. Youve determined the following: Parametric modeling is a top-down technique that uses variables to produce time estimates. Parametric modeling is a mathematical formula that uses variables to produce cost estimates. Contingency estimating is a top-down technique that uses variables to produce cost estimates. Contingency estimating is a mathematical model that uses variables to produce time estimates.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=535007302" \l "answer.nr-qandaentry.47AE1735-963B-463F-8FEC-96C5ACA2B1E0C175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.47AE1735-963B-463F-8FEC-96C5ACA2B1E0C175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 20. Which logical relationship does the PDM use most often? Start to finish Start to start Finish to finish Finish to start HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=535007302" \l "answer.nr-qandaentry.A3E71C1F-68B9-48CB-8DFD-EA1561C761B9C175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.A3E71C1F-68B9-48CB-8DFD-EA1561C761B9C175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET Answers  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=535007302" \l "nr-qandaentry.13BD601B-FDEA-44C2-8F91-937D61E6CAD4C175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.13BD601B-FDEA-44C2-8F91-937D61E6CAD4C175720B-D8EB-423D-B9A6-BC518538C1DD" 1.D Resource Planning is the process that determines all the physical resources needed for the project and what quantities of resources are needed. The output is resource requirements. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=535007302" \l "nr-qandaentry.8D327016-5F7B-4D90-BBCB-53F518F4AAEEC175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.8D327016-5F7B-4D90-BBCB-53F518F4AAEEC175720B-D8EB-423D-B9A6-BC518538C1DD" 2.C Resource rates are an input to Cost Estimating. Supply purchase policies would be found in the organizational policies input, which the project manager should consider when writing the resource requirements. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=535007302" \l "nr-qandaentry.47928146-BDBD-46A5-8B1A-0623BFC76219C175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.47928146-BDBD-46A5-8B1A-0623BFC76219C175720B-D8EB-423D-B9A6-BC518538C1DD" 3.A Constraints can be anything that limits the option of the project team. Organizational structure, collective bargaining agreements, preferences of the project management team, and expected staff assignments are all constraints that might be encountered during this process. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=535007302" \l "nr-qandaentry.5E6BA9C3-B955-45B7-AE1B-F28212CE2F6FC175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.5E6BA9C3-B955-45B7-AE1B-F28212CE2F6FC175720B-D8EB-423D-B9A6-BC518538C1DD" 4.D The Responsibility Assignment Matrix (RAM) links project roles and responsibilities with project activities. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=535007302" \l "nr-qandaentry.8C645553-D763-493D-BDC0-2AB6B211635BC175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.8C645553-D763-493D-BDC0-2AB6B211635BC175720B-D8EB-423D-B9A6-BC518538C1DD" 5.B The staffing management plan details how and when human resources will be added to and taken off the project. It is an output of Organizational Planning. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=535007302" \l "nr-qandaentry.E0A30260-27A4-40F4-BC15-702E25182D9DC175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.E0A30260-27A4-40F4-BC15-702E25182D9DC175720B-D8EB-423D-B9A6-BC518538C1DD" 6.C The activity list is produced as an extension of the WBS and includes all the project activities with descriptions of the activities. The activity list and the WBS updates are an output to the Activity Definition process. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=535007302" \l "nr-qandaentry.0DCEAA83-CFF3-402B-949A-8AADE447DCDBC175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.0DCEAA83-CFF3-402B-949A-8AADE447DCDBC175720B-D8EB-423D-B9A6-BC518538C1DD" 7.A Precedence diagramming methods are also known as activity on node diagramming methods. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=535007302" \l "nr-qandaentry.461D7001-33B6-407D-9B1C-BA139C8FD087C175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.461D7001-33B6-407D-9B1C-BA139C8FD087C175720B-D8EB-423D-B9A6-BC518538C1DD" 8.D PDM uses one time estimate to determine duration, while ADM can use more than one time estimate.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=535007302" \l "nr-qandaentry.378D3490-BEEC-4D2A-AA00-64EE37DDE8EAC175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.378D3490-BEEC-4D2A-AA00-64EE37DDE8EAC175720B-D8EB-423D-B9A6-BC518538C1DD" 9.A GERT is a conditional diagramming method that allows for loops and conditional branches. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=535007302" \l "nr-qandaentry.1E936919-4254-4B6B-8295-E78652646035C175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.1E936919-4254-4B6B-8295-E78652646035C175720B-D8EB-423D-B9A6-BC518538C1DD" 10.B The Activity Sequencing process produces network diagrams and updates to the activity list. The purpose of this process is to identify all activity dependencies.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=535007302" \l "nr-qandaentry.DEBA187F-5E69-46EB-80BD-5D72E2AAAFE8C175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.DEBA187F-5E69-46EB-80BD-5D72E2AAAFE8C175720B-D8EB-423D-B9A6-BC518538C1DD" 11.C The tools and techniques for Activity Duration Estimating are expert judgment, analogous estimating, qualitatively based durations, and reserve time. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=535007302" \l "nr-qandaentry.FEDD528B-750A-4C35-AEC3-96ECD8A45077C175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.FEDD528B-750A-4C35-AEC3-96ECD8A45077C175720B-D8EB-423D-B9A6-BC518538C1DD" 12.A Analogous estimating is not a qualitatively based technique. It is a top-down estimating technique that considers previous similar activities when calculating estimates. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=535007302" \l "nr-qandaentry.1939D56F-EA97-4F84-8578-499A83A2B897C175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.1939D56F-EA97-4F84-8578-499A83A2B897C175720B-D8EB-423D-B9A6-BC518538C1DD" 13.D This is an example of a mandatory dependency, also known as hard logic. Mandatory dependencies are inherent in the nature of the work. Discretionary dependencies, also called preferred logic, preferential logic, and soft logic, are defined by the project management team.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=535007302" \l "nr-qandaentry.A4FF58F8-AFD3-4DDB-AD8A-213D4191010DC175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.A4FF58F8-AFD3-4DDB-AD8A-213D4191010DC175720B-D8EB-423D-B9A6-BC518538C1DD" 14.C Qualitatively based durations multiply a known elementlike the quantity of materials neededby the time it takes to install or complete one unit of materials. The result is a total estimate for the activity. In this case, 10 servers multiplied by 16 hours per server gives us a 160-hour total duration estimate.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=535007302" \l "nr-qandaentry.A3B3E951-425E-4D93-8684-51AD35222987C175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.A3B3E951-425E-4D93-8684-51AD35222987C175720B-D8EB-423D-B9A6-BC518538C1DD" 15.B Bottom-up techniques are the most time consuming and the most accurate estimates you can use. With bottom-up, each work item is estimated and rolled up to a project total. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=535007302" \l "nr-qandaentry.2F19B1A1-5C9B-408A-9155-17574C8F4C31C175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.2F19B1A1-5C9B-408A-9155-17574C8F4C31C175720B-D8EB-423D-B9A6-BC518538C1DD" 16.A Analogous, or top-down, estimating techniques are a form of expert judgment. Since this project is similar to another recent project, you can use the cost estimates from the previous project to help you quickly determine estimates for the current project. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=535007302" \l "nr-qandaentry.06E2DC83-9577-4865-8BF7-57BAB65AF873C175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.06E2DC83-9577-4865-8BF7-57BAB65AF873C175720B-D8EB-423D-B9A6-BC518538C1DD" 17.D Parametric modeling is a Cost Estimating technique.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=535007302" \l "nr-qandaentry.3D5F9202-CCA5-4B9B-B63D-C9A128827520C175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.3D5F9202-CCA5-4B9B-B63D-C9A128827520C175720B-D8EB-423D-B9A6-BC518538C1DD" 18.C Reserve time takes schedule risk into consideration and adds a percentage of time or additional work periods to the estimate to prevent schedule delays. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=535007302" \l "nr-qandaentry.47AE1735-963B-463F-8FEC-96C5ACA2B1E0C175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.47AE1735-963B-463F-8FEC-96C5ACA2B1E0C175720B-D8EB-423D-B9A6-BC518538C1DD" 19.B Parametric modeling uses variables, or parameters, to produce cost estimates. Contingencies are also known as reserve time and are used in the Activity Duration Estimating process. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=535007302" \l "nr-qandaentry.A3E71C1F-68B9-48CB-8DFD-EA1561C761B9C175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.A3E71C1F-68B9-48CB-8DFD-EA1561C761B9C175720B-D8EB-423D-B9A6-BC518538C1DD" 20.D Finish to start is the most commonly used logical relationship in PDM and most project management software packages  Chapter 6: Establishing Project Planning Controls PMP Exam Content from the Project Planning Performance Domain Covered in This Chapter: Establish Project Controls. Overview Each of the project Planning processes weve discussed so far, along with what well cover here and in  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=427" \l "427" \t "_parent" Chapter 7, will culminate in the final output of the project Planning process, which is the project plan. The Execution and Controlling process groups depend on the project plan to measure and track project performance. In order to measure performance, several more plans need to be put into place including a quality plan, a risk response plan, and a procurement plan. Well cover each of these in the upcoming sections of this chapter. We have a lot of material to cover in this chapter including several processes on risk management. I recommend you study the inputs, tools and techniques, and outputs of the risk processes from the Guide to the PMBOK as we will not be able to cover all of them here. Most of these processes have multiple inputs, many of which were covered previously or are self explanatory. The exam puts the most emphasis on the tools and techniques of these processes, but study the inputs and outputs as well. This chapter will cover Quality Planning, Risk Management Planning, Risk Identification, Qualitative Risk Analysis, Quantitative Risk Analysis, Risk Response Planning, Solicitation Planning, and Procurement Planning. Identifying Quality Standards Quality is one of the triple constraints found in all projects. Its the third leg to the successful completion of a project and more typically defines whether stakeholder expectations were met. Being on time and on budget is one thingif you deliver the wrong product or an inferior product, on time and on budget suddenly dont mean much. Remember those career-limiting moves we talked about in a previous chapter? This could be one of them if you dont plan and monitor quality properly on your project. Quality Planning is a process that is concerned with targeting quality standards that are relevant to the project at hand and devising a plan to meet those standards. The quality management plan is an output of this process. It describes how the quality policy will be implemented by the project management team during the course of the project. The Quality Management knowledge area, which includes Quality Planning, Quality Assurance, and Quality Control, involves the quality management of the project as well as the quality aspects of the product or service the project was undertaken to produce. Well discuss Quality Assurance and Quality Control in later chapters. Our focus in this chapter is Quality Planning. Quality Inputs The Quality Planning process has several inputs: quality policy, scope statement, product description, standards and regulations, and other process outputs. Well look at two of these inputs now. Quality Policy The quality policy is a guideline published by executive management that describes what quality policies should be adopted for projects the company undertakes. Its up to the project manager to understand this policy and incorporate any predetermined company guidelines into the quality plan. If a quality policy does not exist, its up to the project management team to create one for the project. Standards and Regulations As with the quality policy, the project manager should consider any standards or regulations that exist concerning the work of the project when writing the quality plan. A standard is defined by the Guide to the PMBOK as something thats approved by a recognized body and that employs rules, guidelines, or characteristics that should be followed. For example, the Americans with Disabilities Act (ADA) has established standards for web page designers that outline alternative viewing options of web pages for people with disabilities. PMI guidelines regarding project management are another example of standards. Standards arent mandatory, but its a good idea to follow them. If your project creates a software product that ignores standard protocols, your customers wont be able to use it. Standards can be set by the organization, by independent bodies or organ-izations such as the International Organization for Standardization (ISO), and so on. A regulation is mandatory. Regulations are almost always imposed by governments or institutions like the American Medical Association. However, organizations may have their own self-imposed regulations that you should be aware of as well. Regulations require strict adherence, particularly in the case of government-imposed regulations, or stiff penalties and fines could resultmaybe even jail time if the offense is serious enough. Hmm, might be tough to practice project management from behind barsnot a recommended career move. If possible, its a good idea to include information from the quality policy and any standards and regulations that affect the project in the quality management plan. If its not possible to include this information in the quality management plan, then at least make reference to the information and where it can be found. Its the project managers responsibility to be certain all stakeholders are aware of and understand the policy issues and standards or regulations that might impact the project. The remaining inputs to Quality Planning have been covered in previous chapters. One note regarding the other process outputs input: Contracts might have certain provisions for quality requirements that you should account for in the quality management plan. This will be discovered during the Procurement Planning process. Therefore, this other output from Procurement Planning becomes an input to Quality Planning. Cost of Quality The cost of quality must be measured in order to be certain the product or service meets stakeholders expectations. Three people in particular are responsible for the rise of the quality management movement and the theories behind the cost of quality. They are Philip B. Crosby, Joseph M. Juran, and W. Edwards Deming. Each of these men developed steps or points that led to commonly accepted quality processes that we use today. Philip B. Crosby Philip B. Crosby devised the zero defects practice, which means, basically, do it right the first time. (Didnt your dad used to tell you this?) Crosby says that costs will increase when quality planning isnt performed up front, which means youll have to engage in rework, thus affecting productivity. Prevention is the key to Crosbys theory. If you prevent the defect from occurring in the first place, costs are lower, conformance to requirements is easily met, and the cost measurement for quality becomes the cost of nonconformance rather than the cost of rework. Joseph M. Juran Joseph M. Juran is noted for his fitness for use premise. Simply put, this means stakeholders and customers expectations are met or exceeded. This says that conformance to specificationsmeaning the product of the project that was produced is what the project set out to produceis met or exceeded. And, fitness for use specifically reflects the customers or stakeholders view of quality. Fitness for use answers the questions, Did the product or service produced meet the quality expectation, Did it satisfy a real need, and Is it reliable and safe? Juran also proposed that there could be grades of quality. However, you should not confuse grade with quality. Low quality is usually not an acceptable condition; however, low grade might be. For example, your new Dads Dollars Credit Card software tracking system might be of high quality, meaning there are no bugs and the product performs as advertised, but of low grade, meaning there are few features. Youll almost always want to strive for high quality, regardless of the acceptable grade level. W. Edwards Deming W. Edwards Deming suggested that as much as 85 percent of the cost of quality is a management problem. Once the quality issue has hit the floor, or the worker level, the workers have little control. For example, if youre constructing a new highway and the management team that bid on the project proposed using inferior-grade asphalt, the workers laying the asphalt have little control over its quality. Theyre at the mercy of the management team that purchased the supplies. Deming also proposed that workers cannot figure out quality on their own, and thus cannot perform at their best. He believed that workers need to be shown what acceptable quality is, and that they need to be made to understand that quality and continuous improvement are necessary elements of any organization, or project in our case. Kaizen Approach The Kaizen approach is a quality technique from Japan. In fact, Kaizen means continuous improvement in Japanese. With this technique, all project team members and managers should be constantly watching for quality improvement opportunities. The Kaizen approach states that you should improve the quality of the people first, then the quality of the products or service. Quality Planning Tools Quality Planning has five tools and techniques used to help construct the quality management plan. I recommend you understand each of these tools and techniques and its purpose for the exam. Lets take a look at the tools and techniques. Benefit/Cost Analysis Youve seen this technique before. In the case of quality management, youll want to consider the trade-offs of the cost of quality. As mentioned earlier, its cheaper and more efficient to prevent defects in the first place than to have to spend time and money fixing them later. According to the Guide to the PMBOK, the benefits of meeting quality requirements are as follows: Stakeholder satisfaction is increased. Costs are lower. Productivity is higher. There is less rework. Benchmarking Benchmarking is a process of comparing previous similar activities to the current project activities to provide a standard to measure performance against. This comparison will also help you derive ideas for quality improvements on the current project. For example, if your current printer can produce 8 pages per minute and youre considering a new printer that produces 14 pages per minute, the benchmark is 8 pages per minute. Flowcharting Flowcharts are diagrams that show the logical steps that must be performed in order to accomplish an objective. They can also show how the individual elements of a system interrelate. In the case of quality management planning, two types of flowcharts are commonly used. They are cause-and-effect diagrams and system or process flowcharts. Cause-and-effect diagrams show the relationship between the effects of problems and their causes. This diagram depicts every potential cause and subcause of a problem and the effect that each proposed solution will have on the problem. This diagram is also called a fishbone diagram, or Ishikawa diagram after its developer Kaoru Ishikawa.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=499147218" \l "figure.890E804B-FFD0-4DC7-8787-F7F142D10CC5C175720B-D8EB-423D-B9A6-BC518538C1DD#figure.890E804B-FFD0-4DC7-8787-F7F142D10CC5C175720B-D8EB-423D-B9A6-BC518538C1DD" Figure 6.1 shows an example cause-and-effect diagram.  HYPERLINK "javascript:PopImage('IMG_27','http://images.books24x7.com/bookimages/id_3964/f0601_0.jpg','581','317')" \t "_self"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/f0601.jpg" \* MERGEFORMATINET  Figure 6.1: Cause-and-effect diagram The system or process flowchart shows the logical steps needed to accomplish an objective and the interrelation of individual elements of a system. Design of Experiments For exam purposes, you need to know that design of experiments is an analytical technique that identifies the elements, or variables, that will have the greatest effect on overall project outcomes. This technique is used most often concerning the product of the project but can also be applied to project management processes. This process designs and sets up experiments to determine the ideal solution for a problem using a limited number of sample cases. Cost of Quality The cost of quality here refers to the costs to produce the product or service of the project according to the quality standards. These costs include all the work necessary to meet the product requirements whether the work was planned or unplanned. There are three costs associated with the cost of quality: prevention costs; appraisal costs; and failure costs, which consist of internal and external costs. Prevention Costs Prevention means keeping defects out of the hands of customers. Prevention costs are the costs associated with satisfying customer requirements by producing a product without defects. These costs are manifested early on in the process and include things like quality planning, training, design review, and contractor and supplier costs. Appraisal Costs Appraisal costs are the costs expended to examine the product or process and make certain the requirements are being met. Appraisal costs might include costs associated with things like inspections and testing. Failure Costs Failure costs are what it costs when things dont go according to plan. There are two types of failure costs, internal and external. Internal failure costs result when customer requirements are not satisfied while the product is still in the control of the organization. Internal failure costs may include corrective action, rework, scrapping, and downtime. External failure costs occur when the product has reached the customer and they determine that their requirements have not been met. Costs associated with external failure costs may include inspections at the customer site, returns, and customer service costs. Quality Management Plan Quality Planning uses many techniques to determine the areas of quality improvement that can be implemented, controlled, and measured throughout the rest of the project. The quality management plan describes how the project management team will enact the quality policy. It also documents the resources needed to carry out the quality plan, the responsibilities of the project team in implementing quality, and all the processes and procedures the project team and organization use to satisfy quality requirements. The quality management plan is written by the project manager in cooperation with the project staff. You will assign quality actions to the activities listed on the WBS. Isnt that WBS a handy thing? The quality plan should then document the quality actions associated with the WBS activities. Later in the Quality Control process, measurements will be taken to determine if quality to date is on track with the quality standards outlined in the quality management plan. Operational Definitions Operational definitions are an output of the Quality Planning process. They are sometimes called metrics, and their purpose is to specifically describe what is being measured and how it will be measured according to the Quality Control plan and process. Checklists If youre like me, you start your day at the office with a big to-do list that has so many items on it you wont be able to finish them all. Nevertheless, you faithfully write the list every day and check off the things that you accomplish throughout the day. Checklists are like this in that they provide a means to determine if the required steps in a process have been followed. As each step is completed, its checked off the list. Checklists can be activity specific or industry specific, and might be very complex or easy to follow. Sometimes, organizations may have standard checklists they use for projects. You might also be able to obtain checklists from professional associations. Checklists are an output of Quality Planning. Remember that checklists are an output of this process but are a tool and technique of the Risk Identification process, and are an input to Quality Control. Many times, outputs of one process become inputs to another, so that isnt unusual. However, I believe this is the only case where an input/output is also a tool and technique in another process. Inputs to Other Processes Quality Planning finishes up its outputs with inputs to other processes. In the process of identifying Quality Planning measurements and controls, you might be alerted to other Planning processes that need to be tweaked in order to comply with the new information youve discovered. Quality is an important planning and measuring tool. Well revisit quality during the Execution and Controlling processes where we get into quality measurements and controls. But for now, lets move on to defining project risks.  INCLUDEPICTURE "http://www.books24x7.com/book/id_3964/_.gif" \* MERGEFORMATINET Real World ScenarioCandy Works Juliette Walters is a contract project manager for Candy Works. Theyve introduced a new line of hard candy drops in various exotic flavors: caffe latte, hot buttered popcorn, and jalapeo spice, just to name a few. Juliette is writing the quality management plan for this project. After interviewing stakeholders and key team members, shes found several quality factors of importance to the organization. Quality will be measured by: Candy sizeEach piece should measure 3 mm. AppearanceNo visible cracks or breaks should appear in the candy. FlavorFlavor must be distinguishable when taste tested. Number produced9000 pieces per week is the production target. The current machine has been benchmarked at 9200 candies per week. Intensity of colorThere should be no opaqueness in the darker colors. WrappersProperly fitting wrappers cover the candies, folding over twice in back, and twisted on each side. There is a different wrapper for each flavor of candy, which must be matched exactly. The candy is cooked and then pulled into a long cylinder shape roughly 6 feet long and 2 feet in diameter. This cylinder is fed into the machine that molds and cuts the candy into drops. The cylinders vary a little in size because theyre hand stretched by expert candy makers prior to feeding them into the drop maker machine. As a result, the end of one flavor batch, the caffe latte flavor, and the beginning of the next batch, the hot buttered popcorn flavor, merge. This means the drops that fall into the collection bins are intermingled during the last run of the first flavor batch. In other words, the last bin of the caffe latte flavor run has some hot buttered popcorn drops mixed in. And, there isnt a way to separate the drops once theyve hit the bin. From here, the drops go on to the candy-wrapping machine where brightly colored wrappers are matched to the candy flavor. According to the quality plan, hot buttered popcorn drops cannot be wrapped as caffe latte drops. Juliette ponders what to do. As she tosses and turns that night thinking about the problem, it occurs to her to present this problem as an opportunity to the company rather than as a problem. In order to keep production in the 9000 candies per week category, the machines cant be stopped every time a new batch is introduced. So Juliette comes up with the idea to wrap candies from the intermixed bins with wrappers that say mystery flavor. This way, production keeps pace with the plan, and the wrapper/flavor quality problem is mitigated. Risk Planning Every one of us takes risks on a daily basis. Just getting out of bed in the morning is a risk. You might stub your toe in the dark on the way to the light switch or trip over the dog and break a leg. These things dont usually happen, but the possibility exists. The same is true for your project. Risk exists on all projects, and the potential that a particular risk will occur depends on the nature of the risk. Risk, like much of the information gathered during other Planning processes, will change as the project progresses and should be monitored throughout the project. As you get close to a risk event, thats the time to reassess your original assumptions about the risk and your plans to deal with the risk and to make any adjustments as required. One consideration to take into account when assessing risk is risk tolerance. Stakeholder risk tolerance is one of the inputs in the Risk Management Planning process. Organizations and stakeholders, as well as individuals, all have different tolerances for risk. One organization might believe that the risk of a potential 17 percent cost overrun is high, while another might think its low. Its important for the project manager to understand the tolerance level the organization and the stakeholders have for risk before evaluating and ranking risk. During the risk-planning process, well look at Risk Management Planning, Risk Identification, Qualitative Risk Analysis, Quantitative Risk Analysis, and Risk Response Planning. At this stage, we need to identify all potential risks that exist for our project, and we need to understand the probability of risk occurrence. We also want to know what the impact to the project or product outcome will be if the risk does happen. Not all risk is bad, and not all risks have negative impacts, but you need to know about them nevertheless. All risks are caused by something and therefore have consequences. Those consequences will likely impact one or more of the triple constraints. The idea behind risk planning is that you identify all the risks and then evaluate and quantify the risks to come up with a plan to deal with or avert them. Risk Management Planning Risks come about for many reasons. Some are internal to the project, and some are external. The project environment, the planning process, the project management process, inadequate resources, and so on can all contribute to risk. Some risks youll know about in advance and plan for during this process; others will occur unannounced during the project. The Risk Management Planning process determines how youll plan for risks on your project. Risks associated with the project generally concern the project objectives, which in turn impact time, costs, or quality, or any combination of the three. The purpose for Risk Management Planning is to create a risk management plan, which describes how you will define, monitor, and control risks throughout the project. The risk management plan becomes part of the project plan at the conclusion of the Planning process. Risk Management Plan The risk management plan is the only output of this process. The risk management plan details how risk management processes will be implemented, monitored, and controlled throughout the life of the project. It details how you will manage risks but does not attempt to define responses to individual risks. In the risk response plan, individual risk responses are discussed. Well talk about that a little later in this section. According to the Guide to the PMBOK, the risk management plan might include a description of the methodology youll use to perform risk management. Roles and responsibilities are included in the document and describe the team of people who are responsible for managing the identified risks and their responses. These teams are usually not the project team. Risk analysis should be unbiased, which may not be possible when project team members are involved. The budget for risk management is included in the plan as well. Qualitative and quantitative scoring interpretation methods are described in the plan including thresholds for risk. Well cover these topics later in this section. The plan also describes the timing of risk management processes and the criteria that establish risk thresholds. And the plan also describes how the risk management information will be maintained and updated, reported to project participants, and documented for future reference. Its very important to spend time developing this plan as the risk management plan is an input to every other risk-planning process. It is also an input to the Risk Monitoring and Control process, which well cover in another chapter. Identifying Potential Risk The Risk Identification process involves identifying all the risks that might impact the project, documenting them, and documenting their characteristics. Risk Identification should occur over the course of several steps. You can include all project team members, stakeholders, subject matter experts, users, and anyone else whom you think may help in the Risk Identification process. Perhaps in the first round of Risk Identification, you include just the project team and then bring in the stakeholders or risk management team to further flesh out risks during the second round of identification. Risks may or may not adversely affect the project. However, all risk events and their consequences should be identified. Heres a partial list to get you thinking about where risk may be found: Budgets/funding Schedules Scope or requirements changes Technical issues Personnel issues Hardware Contracts Political concerns Business risk Legal risk Environmental risk This is by no means an exhaustive list. Realize that risk is lurking almost anywhere on your project. Its your job to discover all the possible risks using the tools and techniques of this process and document the risks. Identifying Risk Inputs The inputs to this process include the risk management plan, project Planning outputs, risk categories, and historical information. Take note of the input titled project Planning outputs as they include the project charter, the WBS, your cost and time estimates, assumptions and constraints, and the procurement plan. Well discuss the procurement plan later in this chapter. Risk categories involve either industry or application areas. According to the Guide to the PMBOK, the risk categories may include technical, quality, or performance risks; project management risks; organizational risks; and external risks. The historical information input here refers to previous project experiences via the project files and/or published information like commercial databases or academic research that might exist for your application areas. Project team knowledge is another form of historical information. Tools and Techniques Used to Identify Risk This process is undertaken using five tools and techniques: documentation reviews, information-gathering techniques, checklists, assumptions analysis, and diagramming techniques. Documentation reviews involve reviewing project plans, assumptions, and historical information regarding previous projects. Information gathering includes several techniques like brainstorming, the Delphi technique, interviewing, and strength and weakness analysis. Well take a brief look at each. Brainstorming This is probably the most often used technique of Risk Identification. Youve probably used this technique many times for many purposes. Brainstorming involves getting subject matter experts, team members, risk management team members, and anyone else who might benefit the process in a room and asking them to start identifying possible risk events. The trick here is that one persons idea might spawn another idea and so on, so that by the end of the session youve identified all the possible risks. Delphi Technique The Delphi technique is a lot like brainstorming only the people participating in the meeting dont necessarily know each other. In fact, the people participating in this technique dont all have to be located in the same place and can participate anonymously. You can use e-mail to facilitate this technique very easily. What you do is assemble your experts, both from inside and outside the company, and ask them via a questionnaire to identify potential risks. They in turn send their responses back to you (or the facilitator of this process). All the responses are organized by content and sent back to the Delphi members for further input, additions, or comments. The participants then send their comments back one more time, and a final list of risks is compiled by the facilitator. The Delphi technique is a great tool that allows consensus to be reached very quickly. It also helps prevent one person from unduly influencing the others in the group and thus prevents bias in the outcome because the participants are usually anonymous and dont necessarily know how others in the group responded. Nominal Group Technique Another technique that is similar to the Delphi technique is the nominal group technique. It isnt a named tool and technique of this process but is a technique you might find useful. This technique requires the participants to be together in the same room. Each participant has paper and pencil in front of them, and they are asked to write down what risks they think the project faces. Sticky-backed notes are a good way to do this. Each piece of paper should contain only one risk. The papers are given to the facilitator, who sticks them up to the wall or a white board. The panel is then asked to review all the risks posted on the board; rank them and prioritize them, in writing; and submit the ranking to the facilitator. Once this is done, you should have a complete list of risks. Interviewing Interviews are question-and-answer sessions held with others including other project managers, subject matter experts, stakeholders, customers, the management team, project team members, and users. These folks provide you with possible risks based on their past experiences with similar projects. This technique involves interviewing those folks with previous experience on projects similar to yours, or those with specialized knowledge or industry expertise. Ask them to tell you about any risks that theyve experienced or that they think may happen on your project. Show them the WBS and your list of assumptions to help get them started thinking in the right direction. Checklists Checklists used during Risk Identification are usually developed based on historical information and previous project team experience. If you typically work on projects that are similar in nature, begin to compile a list of risks. You can then convert this to a checklist that will allow you to identify risks on future projects quickly and easily. However, dont rely solely on checklists for Risk Identification as you might miss important risks. Assumptions Analysis This is a matter of identifying and documenting the assumptions youve made regarding the project and then using them as a jumping-off point to further identify risks. Diagramming Techniques Cause-and-effect diagrams and flowcharts are usable in the Risk Identification process as well as the Quality Planning process. We discussed these diagramming techniques earlier in this chapter. A third diagramming technique used during Risk Identification is called influence diagrams. These typically show the causes of problems and the order of occurrence over time. Each of these techniques provides a way for you to help identify project risks. Its important that you identify all the risks early on. The better job you do of identifying the projects risks at the Planning stage, the better your risk response plan will look. Risk Identification is not an area of project Planning that you should skip. Risk Identification Outputs The outputs of the Risk Identification process include risks, triggers, and inputs to other processes. Risks are all the potential events and their subsequent consequences that could occur, as weve discussed in this section. Once youve identified all the potential risks, you might want to log them in a risk database or tracking system to organize them and keep a close eye on their status. This can easily be done in spreadsheet format or whatever means you choose. List the risks and assign each risk a tracking number. This gives you a means to track the risks, their occurrence, and the responses implemented. Well talk more about risk databases in the Risk Monitoring and Control process in  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=618" \l "618" \t "_parent" Chapter 10. Triggers If youve ever suffered from a hay fever attack, you cant mistake the itchy, runny nose and scratchy throat that can come on suddenly and send you into a sneezing frenzy. Risk symptoms, also known as triggers, work the same way. Be on the alert for symptoms that might signal a risk event is about to occur. If youre planning to host an outdoor gathering and rain clouds start rolling in from the north on the morning of the activity, you probably have a risk event waiting to happen. A key team member hinting about job hunting is a warning sign that they may be thinking of leaving, which in turn can cause schedule delays, increased costs, etc. This is another example of a trigger. Inputs to other processes may occur as a result of the risks youve identified and can include schedule updates, modifications to the WBS, cost revisions, and other process updates. Qualitative Risk Analysis Qualitative Risk Analysis involves determining what impact the identified risks will have on the project and the probability theyll occur. It also puts the risks in priority order according to their effect on the project objectives. Qualitative Risk Analysis should be performed throughout the project. Using Qualitative Risk Analysis methods allows you to determine the probability a risk will occur and to evaluate its consequences. This technique depends on the project type, data precision, and the scales of probability and impact. Well take a brief look at these three inputs. The remaining inputs to this process include the risk management plan, identified risks, project status, and assumptions. Qualitative Inputs The input project type refers to the complexity of the project and whether you and the team have had experience with projects of this kind. If youre working on a project that is similar in size and scope to others youve worked on, youll have a much better understanding of the probability of the occurrence of risk events and their consequences. However, if youre working on a new project thats particularly detailed or youre using new technology, you will have little information on the probability of risk events. Data precision is concerned with the reliability of the data used to identify and describe risks and the level of understanding regarding their consequences. Scales of probability and impact are used to determine and measure risk probability and the effect of the risk on the project objectives. Well talk more about these scales in the tools and techniques section (which comes next). Risk Probability Analysis The Qualitative Risk Analysis tools and techniques are primarily concerned with discovering the probability of a risk event and determining the impact the risk will have if it does occur. The outputs of this process will prioritize the risks youve scored here using these tools and techniques to determine which ones should receive further Risk Response Planning. All of the information you gather regarding risks and probability needs to be as accurate as possible. Its also important that you gather unbiased information so that you dont unintentionally overlook risks with great potential or consequences. The purpose of this process is to determine risk event probability and risk impact. Youll use the tools and techniques of this process to establish risk scores. The tools and techniques include risk probability and impact, probability/impact risk rating matrix, project assumptions testing, and data precision ranking. Risk Probability and Impact This tool and technique assigns probability to the risk events youve identified and determines their effect on project objectives. During Qualitative Risk Analysis, you will simply assign a high, medium, or low value, or some similar combination, to the risk. For example, maybe youve identified the departure of a key team member as a potential risk for the project. Depending on how familiar you are with the situation, you may know that this probability is very likely and the consequences would have significant impact. If so, assign a high probability to this risk. If the key team member is happy with the company and wouldnt dream of leaving save for extreme circumstances, assign this risk a low probability. These assignments include the probability of the risk occurring and the severity of the impact should it occur. The next technique deals with this issue more fully. Probability/Impact Risk Rating Matrix A probability matrix might be as simple as listing your risks and assigning a high, medium, or low value to them. This is called an ordinal scale as the values are rank ordered from high to low. In practice, ordinal values may also include ranking by position. In other words, the risks are listed in rank order as the first, the second, the third, and so on. Another matrix format is shown as a combination of the probability of the risk using a probability scale and the severity of the impact using an impact scale. Probability is the likelihood that an event will occur. The classic example is flipping a coin. There is a .50 probability of getting heads and a .50 probability of getting tails on the flip. One thing to note is that the probability that an event will occur plus the probability that the event will not occur always equals 1.0. In our coin-flipping example, there is a .50 chance that well get heads on the flip. There is also, therefore, a .50 chance we will not get heads on the flip. The two responses added together equal 1.0. Probability scales are always expressed as a number between 0.0, which means there is no probability of the event occurring, and 1.0, which means there is 100 percent certainty the risk will occur. The severity of the risk impact, called an impact scale, is assigned as a cardinal value. Cardinal scales or values are actual numeric values assigned to the risk. Assessing the probability and risk impact is typically accomplished using expert judgment and interviewing techniques. Some of the tools and techniques outlined in the Risk Identification process like brainstorming, interviewing, and the Delphi technique can be used during this process to determine probability and impact. Risk Impacts Another method to determine impact is to develop predefined measurements that describe what value to place on a risk event depending on the project objective or triple constraint it impacts. For example, lets say a risk event impacting project costs has a medium chance of occurring. Youve predefined a medium impact to carry a value of 0.4. Further criteria say that a risk event that falls into the medium category for cost must increase cost by 10 percent. An example chart is shown in  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=687706053" \l "wbpch06T1P1C175720B-D8EB-423D-B9A6-BC518538C1DD#wbpch06T1P1C175720B-D8EB-423D-B9A6-BC518538C1DD" Table 6.1. Table 6.1: Risk Impacts Rating Matrix ConstraintsLow-LowLowMediumHighHigh-High0.050.200.400.600.80CostNo sig-nificant impactLess than 6% increase712% increase1318% increaseMore than 18% increaseTimeNo sig-nificant impactLess than 6% increase712% increase1318% increaseMore than 18% increaseQualityNo sig-nificant impactFew components impactedSignificant impact requiring customer approval to proceedUnacceptable qualityProduct not usableYou can use a chart like this to evaluate and assign risk probability and impact to your list of identified risks. The criteria are determined at the beginning of the project. Later, all the risks are listed and prioritized based on the risk ranking and other factors. Well get to that when we discuss the outputs of this process. Probability/Impact Matrix A probability/impact (PI) matrix is developed to determine if risks should be classified as high, medium, or low risks. This is accomplished by multiplying the risk probability by the risk impact to determine an overall score. The threshold of risk based on high, medium, and low tolerances is determined by comparing the risk score based on the probability level to the PI matrix. As an example, weve determined that a cost risk event has a 0.4 probability of occurring and a 0.2 impact on the project cost if it does occur. Therefore, the overall score is as follows: 0.4 ( 0.2 = 0.08. A score of 0.08 for a probability of 0.4 is in the medium threshold, so this risk is assigned a medium value. Again, the values assigned to the risks will determine how Risk Response Planning is carried out for the risks later during the risk-planning processes. A further example of this is shown in the  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=687706053" \l "wbpch06P187C175720B-D8EB-423D-B9A6-BC518538C1DD#wbpch06P187C175720B-D8EB-423D-B9A6-BC518538C1DD" Screen Scrapers, Inc. sidebar later in this section. Project Assumptions Testing The important thing to note about this output is that all assumptions are tested against two things according to the Guide to the PMBOK. The first is the strength of the assumption or the validity of the assumption. The second is the consequences that may impact the project if the assumption turns out to be false. All assumptions that are true should be evaluated and scored just like the risks you identified and scored earlier in this section. Data Precision Ranking This involves determining the usefulness of the data gathered to evaluate risk. According to the Guide to the PMBOK, data precision ranking looks at the quality of the data used, the availability of data regarding the risks, how well the risk is understood, and the reliability and integrity of the data.  INCLUDEPICTURE "http://www.books24x7.com/book/id_3964/_.gif" \* MERGEFORMATINET Real World ScenarioScreen Scrapers, Inc. Screen Scrapers is a software-manufacturing company that produces a software product that looks at your mainframe screens, commonly called green screens, and converts them to browser-based screens. The browser-based screens look like any other Windows-compatible screens with buttons, scroll bars, and drop-down lists. Screen Scrapers devised this product for companies that use mainframe programs to update and store data because many of the entry-level workers beginning their careers today are not familiar with green screens. Theyre cumbersome and difficult to learn, and no consistency exists from screen to screen or program to program. An F5 key in one program might mean go back one page, while an F5 key in another program might mean clear the screen. New users are easily confused, make a lot of mistakes, and have to write tablets full of notes on how to navigate all the screens. Your company has purchased the Screen Scraper product and has appointed you the project manager over the installation. There are lots of issues to address on this project, and youve made great headway. Youre now at the risk identification and quantification stage. You decide to use the Delphi technique to assist you in identifying risk and assigning probability and impact rankings. There are some experts available in your company who can serve on the Delphi panel, as well as some folks in industry organizations you belong to outside the company. You assemble the group, and set up a summary of the project and send it out via e-mail requesting responses to your questions about risk. After the first pass, you compile the list of risks as follows (this list is an example and isnt exhaustive as your list will be project specific): Vendor viabilitywill they stay in business? Vendor responsiveness with problems after implementation Software compatibility risks with existing systems Hardware compatibility risk Connection to the mainframe risk Training IT staff members to maintain the product You send this list back to the Delphi members and ask them to assign a probability of high-high, high, medium, low, or low-low and an impact level of 0.01.0 to each risk. The Delphi members assign probability based on a probability scale designed by the risk management team. The values of the probability scale are as follows: High-high is 0.8, high is 0.6, medium is 0.4, low is 0.2, and low-low is 0.05. The PI matrix index shows the probability assignment thresholds listed in  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=687706053" \l "wbpch06T2P2C175720B-D8EB-423D-B9A6-BC518538C1DD#wbpch06T2P2C175720B-D8EB-423D-B9A6-BC518538C1DD" Table 6.2 (following this sidebar). The table is populated by multiplying the risk event probability times the impact values of 0.05, 0.2, 0.4, 0.6, and 0.8. The table is read based on the probability of the risk occurring. For example, if the risk event has a 0.8 probability of occurring and the risk score is 0.16, the risk would receive an overall medium rating. The completed risk list and their rankings that you received from the Delphi members looks like  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=687706053" \l "wbpch06T3P3C175720B-D8EB-423D-B9A6-BC518538C1DD#wbpch06T3P3C175720B-D8EB-423D-B9A6-BC518538C1DD" Table 6.3 (following this sidebar). Based on the PI matrix thresholds, the project risks are assigned the following overall probabilities: Vendor viability = high Vendor responsiveness = low Software compatibility = medium Hardware compatibility = medium Mainframe connection = high Training = low  INCLUDEPICTURE "http://www.books24x7.com/book/id_3964/_.gif" \* MERGEFORMATINET  Table 6.2: PI Matrix for Screen Scrapers, Inc. ProbabilityRisk Scores (Probability Impact)*.8.04 .16 .32 .48 .64 .6.03 .12 .24 .36 .48 .4.02.08 .16 .24 .32 .2.01.04.08.12 .16 *The legend for the PI matrix is as follows: no formatting = low assignment; italics = medium assignment; bold italics = high assignment.  Table 6.3: Risk Impacts Rating Matrix for Screen Scrapers, Inc. RiskProbabilityImpactRisk ScoresVendor viability.4.8.32Vendor responsiveness.2.5.10Software compatibility.4.4.16Hardware compatibility.4.3.12Mainframe connection.8.8.64Training.2.3.06Risk Ranking The outputs of this process include overall risk ranking for the project, list of prioritized risks, list of risks for additional analysis and management, and trends in Qualitative Risk Analysis results. The goal here is to rank all of the risks, prioritize them, and perform more analysis on the risks with high priority. Lets look at the first three outputs individually. Overall Risk Ranking for the Project This output compares the list of risks and their overall rankings to other similar projects. You can use the overall risk scores of the current project as a gauge to determine if it has more or less risk than projects of similar size and scope. Overall risk score comparisons are also used to help determine if further analysis should be performed regarding the project and to make go or no-go decisions about the project or project phase. For example, suppose the project youre considering has an overall risk score thats significantly higher than a previous project of a similar nature. You could consider doing further benefit/cost analysis and revisit some of the project justification techniques to determine if the project is worth pursuing. A relatively high risk score could also indicate that you need to assign more resources to the high-risk areas or perhaps that the project needs to be canceled. List of Prioritized Risks As the title implies, the risks youve identified and scored during this process are now listed in priority order. Priority is determined using the risk scores including probability and impact and other criteria, which might include the timing of the risk event, the WBS level impacted, and so on. List of Risks for Additional Analysis and Management This output examines the risks and their scores to determine which ones should receive further analysis. Those risks with scores of high-high or high, for example, might need further review and action by the risk management team. Quantifying Risk Quantitative Risk Analysis looks at the risks youve identified and assigns numeric probabilities to each risk. Quantitative Risk Analysis, like Qualitative Risk Analysis, examines each risk and its potential impact on the project objectives. You may choose to use both of these processes to assess risk or only one of them depending on the complexity of the project and organizational policy regarding risk planning. Quantitative Risk Analysis evaluates the impacts of risk and quantifies the risk exposure of the project. It determines any interactions among the risks and assesses the range of potential project outcomes. This includes identifying realistic cost, schedule, and scope issues that need attention. The focus here is to determine which risks you should pay attention to and develop responses for, and which risks you can put on the back burner. Well take a look at the tools and techniques of the Quantitative Risk Analysis process, which include interviewing, sensitivity analysis, decision tree analysis, and simulation. Interviewing This technique is like the interviewing technique we talked about in Risk Identification. Project team members, stakeholders, and subject matter experts are prime candidates for risk interviews. Ask them about their experiences on past projects and about working with the types of technology or processes youll use during this project. Make certain you document the results of the interview and how the interviewees decided upon the risk ranges and criteria they used to place risks in certain categories. This will help you later in developing risk responses as well. For the exam, you should know that there are several types of probability distributions that are useful in displaying risk information. The type of distribution you use determines the type of information you should gather during the interviewing process. Its beyond the scope of this book to delve into probability distributions and calculations. Remember that continuous probability distributions are commonly used in Quantitative Risk Analysis. According to the Guide to the PMBOK, continuous probability distributions include normal and log normal distributions, and triangular, beta, and uniform types. Also remember that triangular distributions use estimates based on pessimistic, most likely, and optimistic values. There is more information on this estimating technique in  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=427" \l "427" \t "_parent" Chapter 7. Normal and log normal distributions use mean and standard deviations. Sensitivity Analysis Sensitivity analysis is a quantitative method of analyzing the potential impact of risk events on the project. Sensitivity analysis can also be used to determine stakeholder risk tolerance levels. Decision Tree Analysis Unfortunately, this isnt a tree outside your office door that produces yes and no leaves that you can pick to help you make a decision. Decision trees are diagrams that show the sequence of interrelated decisions and the expected results of choosing one alternative over the other. Typically, more than one choice or option is available when youre faced with a decision or, in this case, potential outcomes from a risk event. The available choices are depicted in a tree form starting at the left with the risk decision and branching out to the right with possible outcomes. Decision trees are usually used for risk events associated with time or cost.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=687706053" \l "figure.976D724D-CAF0-4575-8A77-59671FD7B351C175720B-D8EB-423D-B9A6-BC518538C1DD#figure.976D724D-CAF0-4575-8A77-59671FD7B351C175720B-D8EB-423D-B9A6-BC518538C1DD" Figure 6.2 shows a sample decision tree using expected value (EV) as one of its inputs.  HYPERLINK "javascript:PopImage('IMG_28','http://images.books24x7.com/bookimages/id_3964/f0602_0.jpg','519','344')" \t "_self"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/f0602.jpg" \* MERGEFORMATINET  Figure 6.2: Decision tree Expected value is the anticipated impact of the decision. This example shows expected value in dollars. The expected value of the decision is a result of the probability of the risk event multiplied by the impact. Impact is shown in dollars in this example. The squares represent decisions to be made, and the circles represent the points where risk events may occur. The decision with an expected value of $4200 is the correct decision to make as the resulting outcome has the greatest value. Simulation Monte Carlo Analysis is a simulation technique that helps you quantify risks associated with the project as a whole. The identified risks and their potential impacts to the project objectives are examined from the perspective of the whole project. Monte Carlo Analysis is used to determine potential outcomes by simulating the project over and over multiple times. Monte Carlo Analysis can also be used during the Schedule Development process. Simulation techniques are used to predict schedule or cost risks. Schedule simulations are usually performed using the precedence diagramming method schedule, and cost risk simulation typically uses the WBS as its basis. Listing Quantified Risks The outputs of the Quantitative Risk Analysis process are prioritized lists of quantified risks, probabilistic analysis of the project, probability of achieving the cost and time objectives, and trends in Quantitative Risk Analysis results. The prioritized list in this process is similar to the list produced during the Qualitative Risk Analysis process. The list of risks includes those that present the greatest risk to the project and their impacts. It also lists those risks with the greatest opportunities to the project. Probabilistic analysis of the project is the forecasted results of the project schedule and costs as a result of the outcomes of risk analysis. These results include projected completion dates and costs along with a confidence level associated with each. Confidence levels describe the level of confidence placed on the result. As an example, perhaps the projected schedule completion date is July 12 and the confidence level is .85. This says that we believe the project will finish on or before July 12 and have an 85 percent level of confidence that this date is accurate. Using the tools and techniques of Quantitative Risk Analysis will also allow you to assign a probability of achieving the cost and time objectives of the project. This output documents those probabilities. Trends in Quantitative Risk Analysis will likely appear as you repeat the risk analysis processes. This information is useful as you progress, making those risks with the greatest threat to the project more evident, which allows you the opportunity to perform further analysis or go on to develop risk response plans. Risk Response Planning Risk Response Planning is a process of deciding what steps to take to reduce threats and take advantage of the opportunities discovered during the risk analysis processes. This process also includes assigning departments or individual staff members the responsibility of carrying out the risk response plans youll outline in this process. Generally youll want to develop risk response plans for those risks with a combination of high probability of occurrence and significant impact to the project. Developing risk response plans for risks of low severity or insignificant impact would not be efficient. Several strategies are used in this process to reduce or control risk. Its important that you choose the right strategy for each risk so that the risk and its impacts are dealt with effectively. After deciding on which strategy to use, youll develop an action plan to put this strategy into play should the risk event occur. You may also choose to designate a secondary or backup strategy. The tools and techniques of this process include the following strategies: avoidance, transference, mitigation, and acceptance. Avoidance Risk avoidance involves avoiding the risk altogether or eliminating the cause of the risk event. Lets say youre going to take a car trip from your home to a point 800 miles away. You know, because your friends who just took the same trip told you, that there is a long stretch of construction on one of the highways youre planning on using. To avoid the risk of delay, you plan the trip around the construction work and use another highway for that stretch of driving. In this way, you avoid the risk of getting held up in construction traffic and arrive at your destination on time. With risk avoidance, you essentially eradicate the risk by eliminating its cause. Heres another example: Suppose your project was kicked off without adequate scope definition and requirements gathering. You run a high probability of experiencing scope creep, or ever-changing requirements, as the project progresses, thus impacting the project schedule. You can avoid this risk by adequately documenting the project scope and requirements during the Planning process and taking steps to monitor and control changes to scope so it doesnt get out of hand. Risks that occur early in the project might easily be avoided by improving communications, refining requirements, assigning additional resources to project activities, refining the project scope to avoid risk events, and so on. Transference The idea behind risk transference is to transfer the risk and the consequences of that risk to a third party. The risk hasnt gone away, but the responsibility for the management of that risk now rests with another party. Most companies arent willing to take on someone elses risk without a little cash thrown in for good measure. This strategy will impact the project budget and should be included in the cost estimate exercises if you know youre going to use it. Transfer of risk can occur in many forms. Insurance is one form of risk transfer. You are probably familiar with how insurance works. As an example, you purchase car insurance so that if you come upon an obstacle in the road and there is no way of avoiding it, the cost to repair the damage to the car is paid by the insurance company. Okay, minus the deductible and all the calculations for the age of the car, the mileage, the color and make of the car, the weather conditions the day you were drivingbut we digress. Another method of risk transfer is contracting. Contracting transfers specific risks to the vendor depending on the work required by the contract. The vendor accepts the responsibility for the cost of failure. Again, this doesnt come without a price. Contractors charge for their services, and depending on the type of contract you negotiate, the cost might be quite high. For example, in a firm fixed price contract, which well talk more about in the Procurement Planning section, the vendor increases the cost of the contract to compensate for the level of risk theyre accepting. However, keep in mind that contracting isnt a cure-all. You might just be swapping one risk for another. For example, say you hire a driver to go with you on your road trip and their job is to do all the driving. If the driver becomes ill or in some way cant fulfill their obligation, you arent going to get to your destination on time. Youve placed the risks associated with the drive on the contract driver; however, youve taken on a risk of delay due to nonperformance, which means youve just swapped one risk for another. Youll have to weigh your options in cases like this and determine which side of the risk coin your organization can more readily accept. Other forms of transference include warranties, guarantees, and performance bonds. Mitigation Risk mitigation attempts to reduce the impact of the risk event by reducing the probability of risk occurrence. This strategy is a lot like defensive driving. You see an obstacle in the road ahead, survey your options, and take the necessary steps to avoid the obstacle and proceed safely on your journey. Seeing the obstacle ahead (identifying risk) allows you to reduce the threat by planning ways around it or planning ways to reduce its impact if the risk does occur. According to the Guide to the PMBOK, the purpose of mitigation is to reduce the probability that a risk will occur and reduce the impact of the risk to a level where you can accept the risk and its outcomes. Acceptance Acceptance means that you wont make any plans to try to avoid or mitigate the risk. Youre willing to accept the consequences of the risk should it occur. Lets revisit our road trip example. You could plan the trip using the original route and just accept the risk of running into construction. If you get to that point and youre delayed, youll just accept it. This is called passive acceptance. You could also go ahead and make plans to take an alternate route, but not enact those plans until you actually reach the construction and know for certain that it is going to impede your progress. This is called active acceptance. Contingency Planning Contingency planning is a lot like mitigation in that you plan alternatives to deal with the risks should they occur. For example, perhaps you have identified the departure of a key team member as one of your project risks. A contingency plan might be to train one or two other team members in the area of expertise needed so that if the key team member leaves, you have someone else to put in their place. Contingency comes into play when the risk event occurs. This implies you need to plan for your contingencies well in advance of the threat. After the risks have been identified and quantified, contingency plans should be developed and kept at the ready. Contingency allowances or reserves are project funds that are held in reserve to offset any unavoidable threats that might occur to project scope, schedule, cost overruns, or quality. In practice, youll find that identifying risks, quantifying risks, and developing responses for potential threats may happen simultaneously. In any case, you dont want to be taken by surprise, and thats the point of the risk processes. If you know about potential risks early on, you can very often mitigate or avoid them altogether. Risk Response Planning Outputs Risk Response Planning has several outputs including risk response plan, residual risks, secondary risks, contractual agreements, contingency reserve amounts needed, inputs to other processes, and inputs to a revised project plan. The last four of these outputs are self explanatory. Remember that you might need to revisit other Planning processes after performing Risk Response Planning to modify project plans as a result of risk responses. Now well examine the first three outputs of this process. Risk Response Plan The risk response plan describes the actions youll take should the identified risks occur. It should include all the identified risks, descriptions of the risks, and the area of the project in which the impact will occur. The risk detail should also describe the causes of risk and how theyll impact the project objectives. The department or staff members responsible for risk management are documented here. All of the results of the qualitative and quantitative processes and the details regarding risk strategies (acceptance, avoidance, and so on) are documented here as well. The meat of this plan contains the responses to risks whether this includes one of the risk strategies or a detailed action plan. All of the responses should document the time and cost needed to implement the response. The contingency plans and reserves are part of the risk response plan as well. Residual Risks A residual risk is a leftover risk so to speak. After youve implemented a risk response strategysay mitigation, for examplesome minor risk may still remain. The contingency reserve is set up to handle situations like this. Secondary Risks Secondary risks are risks that come about as a result of implementing a risk response. The example given previously where you transferred risk by hiring a driver to take you to your destination but they became ill along the way is an example of a secondary risk. Their illness delayed your arrival time, which is risk directly caused by hiring the driver, or implementing a risk response. When planning for risk, identify and plan responses for secondary risks that could occur as well. Risks exist on all projects. And risk planning is an important part of the project Planning process. Just the act of identifying risks and planning responses can decrease their impact if they occur. Dont take the what I dont know wont hurt me approach to risk planning. This is definitely a case where not knowing something can be devastating. Risks that are easily identified and have planned responses arent likely to kill projects or your career. Risks that you should have known about but ignored could end up costing the organization thousands or millions of dollars, causing schedule delays, or ultimately killing the project. There could be a personal cost as well as cost and schedule overruns due to poor planning on your part are not easily explained on your resume. Understanding Procurement Planning Procurement Planning is a process of identifying what goods or services youre going to purchase from outside of the organization. Part of what youll accomplish in this process is determining whether you should purchase the goods or services, and if so, how much and when. Keep in mind that were discussing the Procurement Planning process from the buyers perspective as this is the approach the Guide to the PMBOK takes. Sometimes, your entire project will be procured from a vendor. In cases like these, the vendor will have a project manager assigned to the project. Your organization may choose to have an internal project manager assigned as well to act as the conduit between your company and the vendor and to provide information and monitor your organizations deliverables. When this happens, the vendor or contracting company is responsible for fulfilling all of the project management processes as part of the contract. In the case of an outsourced project, the selleralso known as the vendor, supplier, or contractormanages the project, and the buyer becomes the stakeholder. Procurement Planning has many inputs. Weve covered some of them before, and the ones we havent looked at are self explanatory. I recommend you study the inputs to this process on your own. The exam focuses primar-ily on the tools and techniques and outputs of this process. Well look at two of the tools and techniques now. Expert judgment is also a tool and technique in this process, but weve already covered that ground. Make or Buy Analysis The main decision youre trying to get to in make or buy analysis is whether its more cost effective to buy the products and services or more cost effective for the organization to produce the goods and services needed for the project. One of the things you should consider in make or buy analysis is cost. Costs should include both direct costsin other words, the actual cost to purchase the product or serviceand indirect costs such as the salary of the manager overseeing the purchase process or ongoing maintenance costs. Other considerations might include things like capacity issues, skills, availability, and trade secrets. Strict control might be needed for a certain process and thus the process cannot be outsourced. Perhaps your organization has the skills in-house to complete the project, but their current project list is so backlogged that they cant get to the new project for months so you need to bring in a vendor. Make or buy analysis concludes with the decision to do one or the other. Contract Type Selection A contract is a compulsory agreement between two or more parties and is constructed such that one party gives something up (money) and the other party receives something (goods or services) in return. There are different types of contracts for different purposes. The Guide to the PMBOK divides contracts up into three categories. Within each category are different types of contracts. Well look at each. There is an exam question or two regarding contract types, so spend some time getting familiar with them. Fixed Price or Lump Sum Contracts These contracts set a specific, firm price for the goods or services rendered. The buyer and seller agree on a well-defined deliverable for a set price. In this kind of contract, the biggest risk is borne by the seller. The seller, or contractor, must take great strides to assure theyve covered their costs and will make a comfortable profit on the transaction. The seller assumes the risks of increasing costs, nonperformance, or other problems. However, to counter these unforeseen risks, the seller builds in the cost of the risk to the contract price. Fixed price contracts are usually used for projects that will take a long time to complete and have a high value to the company. Fixed Price plus Incentive Contracts Fixed price plus incentive contracts are another type of fixed price contract, but the difference here is that the buyer includes an incentive, or bonus, for early completion or for some other agreed-upon performance criteria thats exceeded according to contract specifications. The criteria for early completion, or other performance enhancements, must be spelled out in the contract so both parties understand the terms and conditions. Another thing to note with this type of contract is that some of the risk is borne by the buyer as opposed to the firm fixed price contract where all of the risk is borne by the seller. The buyer takes some risk, albeit minimal, by offering the incentive to get the work done earlier, etc. For example, the buyer really would like the product delivered 30 days prior to when the seller thinks they can deliver, so the buyer assumes the risk for the early delivery via the incentive. Unit Price Contracts This type of contract is used quite often. The seller specifies a set amount for the goods or services rendered by some measurement. For example, a contracting agency might charge you $135 per hour for a Java programmer, or a leasing company may charge you $2000 per month for the hardware youre renting during the testing phase of your project. These rates are preset and agreed upon by the buyer and seller ahead of time. Cost Reimbursable Contracts These types of contracts are as the name implies. The costs associated with producing the goods or services are charged to the buyer. All the costs the seller takes on during the project are charged back to the buyer, thus the seller is reimbursed. Cost reimbursable contracts carry the highest risk to the buyer as the total costs are uncertain. As problems arise, the buyer will have to shell out even more money to correct the problems. Cost reimbursable contracts are risky for the buyer and have a lot of uncertainty associated with them. Be certain to audit your statements when using a contract like this so that charges from some other project the vendor is working on dont accidentally end up on your bill. Cost reimbursable contracts are used when there is a lot of uncertainty regarding the project, when a large investment must be made in the project well before completion of the project, and when there is a high amount of risk. Cost plus Fixed Fee The first type of cost reimbursable contract is cost plus fixed fee (CPFF). Cost plus contracts charge back all project costs to the seller and include a fixed fee upon completion of the contract. This is how the seller makes money on the deal as the fixed fee portion is the sellers profit. The fee is always firm in this kind of contract, but the costs are variable. The seller doesnt necessarily have a lot of motivation to control costs with this type of contract as you can imagine. And the only motivation to complete the project is driven by the fixed fee portion of the contract. Cost plus Incentive Fee The next category of cost reimbursable contract is cost plus incentive fee, also known as cost plus percentage of cost. This type of contract is just like the CPFF contract, only an incentive has been added for exceeding the performance criteria laid out in the contract. The qualification for exceeded performance must be written in the contract and agreed to by both parties. The incentive is calculated as a percentage of cost or by some method that compares estimated project costs to actual project costs. This type of contract is the riskiest of all contracts for the buyer. There is no guarantee what the final costs will be, and since the profit to the seller is some percentage of the total cost, anything goes. Time and Materials (T&M) Contracts Time and materials contracts are a cross between the fixed price and cost reimbursable contract. The full amount of the material costs is not known at the time the contract is awarded. This resembles a cost reimbursable contract as the costs will continue to grow during the contracts life. Unit rates may be used in a time and materials contract to preset the rate of a technician or the use of equipment, for example. This is like the fixed price contract arrangement where unit prices are preset ahead of time. For the exam, I recommend understanding the difference between a fixed price contract and a cost reimbursable contract, when you should use each type of contract, and that risk to the buyer is highest on a cost reimbursable contract. Procurement Outputs There are only two outputs in this process. The first is the procurement management plan. Weve seen a lot of other outputs with the wording, ___ management plan, so youre probably already ahead of me on this one. But hold the phonelets make sure we touch on the important points. The second output is the statement of work. Procurement Management Plan This plan details how the procurement process will be managed. It defines the type of contract to use, what authority the project team has, if more than one contractor will be used, and how the procurement process will be integrated with other project processes. This document, like all the other management plans, becomes a part of the project plan document that well talk about in  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=427" \l "427" \t "_parent" Chapter 7. Statement of Work A statement of work (SOW) contains the details of the procurement item in clear, concise terms. It includes the project objectives, a description of the work of the project, concise specifications of the product or services required, and a project schedule. The SOW may be prepared by either the buyer or the seller. Buyers might prepare the SOW and give it to the sellers who, in turn, rewrite it so that they can price the work out properly. If the buyer does not know how to prepare a SOW, the seller may prepare it for them and then give it to the buyer to review. The seller uses the SOW to determine whether they are able to produce the goods or services as specified in the SOW. It wouldnt hurt to include a copy of the WBS with the SOW as well. Any information the seller can use to properly price the goods or services helps both sides understand whats needed and how it will be provided. Projects may require some or all of the work of the project to be provided by a vendor. The Procurement Planning process determines if goods or services should be procured from outside of the organizationand if so, describes what will be outsourced and what kind of contract to use, and documents the information in the SOW and procurement management plan. Solicitation Planning Solicitation Planning is the last process well cover in this chapter. (I hear you cheering out there!) Well look at one tool and technique and two of the outputs. In Solicitation Planning, you prepare the documents youll use in the Solicitation process. Standard forms are a tool used to facilitate the procurement process. These are forms that are standardized for your organization and for the types of goods or services typically procured by the organization. Your organization may or may not have standard forms. They are usually found in organizations that write a lot of contracts and procure a significant number of goods and services. Procurement Documents Procurement documents are an output of this process. These documents are used to solicit vendors to bid on your procurement needs. Youre probably familiar with some of the titles of procurement documents. They might be called request for proposal (RFP), request for information (RFI), invitation for bid (IFB), request for quotation (RFQ), and so on. Procurement documents should clearly state the description of the work requested, they could include the SOW, and they should explain how vendors should respond. Any special provisions or contractual needs should be spelled out as well. For example, many organizations have data concerning personal information like social security numbers and account information on their systems. The vendor will have access to this private information, and in order to ensure they maintain confidentiality, you should require they sign a nondisclosure agreement. Evaluation Criteria Evaluation criteria is the last output well discuss in this process. This refers to the method your organization will use to choose a vendor from among the proposals you receive. Scoring models might be used as well as rating models, or purely subjective methods of selection might be utilized. An example weighted scoring method was shown in  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=166" \l "166" \t "_parent" Chapter 3 under the Describing Project Selection Methods section. This method could easily be used to score vendor proposals. Sometimes, the evaluation criteria is made public in the procurement process so that vendors know exactly what youre looking for. There are pros and cons to this approach.  INCLUDEPICTURE "http://www.books24x7.com/book/id_3964/_.gif" \* MERGEFORMATINET Project Case Study: New Kitchen Heaven Retail Store Ricardo knocks on your office door and asks if you have a few minutes to talk. Of course, you reply, and he takes a seat on one of the comfy chairs at the conference table. You have a feeling this might take a while. I think you should know that Im concerned about the availability of the T1 line. Ive already put in the call to get us on the list because, as I said last week, theres a 30- to 45-day lead time on these orders. Were only midway through the Planning process. Do you need to order the T1 so soon? We dont even know the store location yet, you say. Even though they say lead time is 30 to 45 days, Ive waited as much as 5 or 6 months to get a T1 installed in the past. I know were really pushing for the early February store opening, so I thought Id get the ball rolling now. What I need from you is the location address, and Ill need that pretty quick. Were narrowing down the choices between a couple of properties, so I should have that for you within the next couple of weeks. Is that soon enough? The sooner the better, Ricardo replies. Great. Im glad you stopped by, Ricardo. I wanted to talk with you about risk anyway, and you led us right into the discussion. Let me ask you, what probability would you assign to the T1 line installation happening 6 months from now? Id say the probability for 6 months is low. Its more likely that if there is a delay, it would be within a 3- to 4-month time frame. If they didnt get to it for 6 months, would it be a showstopper? In other words, is there some other way we could transfer Jills data until the T1 did get installed? Sure, there are other methods we could use. Jill wont want to do that for very long, but there are workarounds available. Good. Now, what about the risk for contractor availability and hardware availability and delivery schedules? you ask. You and Ricardo go on to discuss the risks associated with the IT tasks. Later, you ask Jill and Jake the same kinds of questions and compile a list of risks. In addition, you review the project information for the Atlanta store opening, as its very similar in size and scope to this store, and add those risks to your list as well. You divide some of the risks into the following categories: IT, Facilities, and Retail. A sample portion of your list appears below with overall assignments made based on Qualitative Risk Analysis and the PI matrix. Category/Risk: IT T1 line availability and installation. Risk score: Low Contractor availability for Ethernet install. Risk score: Medium POS and server hardware availability. Risk score: Medium Category/Risk: Facilities Desirable location in the right price range. Risk score: High Contractor availability for build-out. Risk score: Low Availability of fixtures and shelving. Risk score: Low Category/Risk: Retail Product availability. Risk score: Medium Shipment dates for product. Risk score: Medium After examining the risks, you decide that response plans should be developed for the last two items listed under the IT source, the first item under Facilities, and both of the risks listed under Retail. Ricardo has already mitigated the T1 connection and installation risk by signing up several months ahead of when the install is needed. The contractor availability can be handled with a contingency plan that specifies a backup contractor should the first choice not be available. For the POS terminals and hardware, you decide to use the transfer strategy. As part of the contract, youll require these vendors to deliver on time, and if they cannot, theyll be required to provide and pay for rental equipment until they can get your gear delivered. The Facilities risk and Retail risks will be handled with a combination of acceptance, contingency plans, and mitigation. Youve calculated the expected value for several potential risk events. Two of them are detailed here. Desirable location has an expected value of $780,000. The probability of choosing an incorrect or less than desirable location is 60 percent. The potential loss in sales is the difference between a high-producing store that generates $2.5 million in sales per year versus an average store that generates $1.2 million in sales per year. The expected value of the product availability event is $50,000. The probability of the event occurring is 40 percent. The potential loss in sales is $125,000 for not opening the store in conjunction with the Garden and Home Show. Kitchen Heaven has a file drawer full of standard forms as theyve opened several retail stores each year for the last 3 years. Youll use these standard forms to secure the contracts with the vendors and order the retail items. Project Case Study Checklist Risk Management Planning Risk Identification Documentation reviews Information-gathering techniques Qualitative Risk Analysis Risk probability and impact Probability/impact risk rating List of prioritized risks Quantitative Risk Analysis Interviewing Expected value Risk Response Planning Avoidance, transference, mitigation, and acceptance strategies Risk response plan Procurement Planning Standard forms Solicitation Planning Procurement documents Summary Congratulations! Youve completed another fun-filled, action-packed chapter. We covered a lot of material in this chapter starting with Quality Planning and risk-related planning, and ending up with Procurement and Solicitation Planning. Quality Planning targets the quality standards that are relevant to your project. You need to consider the cost of quality when considering stakeholder needs. Three men led to the rise of the cost of quality theories. Crosby is known for his zero defects theory, Juran for the fitness for use theory, and Deming for contributing 85 percent of cost of quality to the management team. The Kaizen approach says that people should be improved first, then the quality of the products or services. Flowcharting is a tool and technique in Quality Planning that diagrams the logical steps that must be performed to accomplish your objective. Cause-and-effect diagrams show the relationship between the effects of quality problems and their causes. Design of experiments is an analytical technique that determines what variables have the greatest effect on the project outcomes. The quality management plan outlines how the project team will enact the quality policy. Risk is inherent in all projects. The Risk Management Planning process determines how you will plan for risks on your project. Its only output is the risk management plan, which details how you will manage risks. The Risk Identification process seeks to identify and document the project risks using brainstorming, the Delphi technique, interviewing, and checklists. Qualitative Risk Analysis and Quantitative Risk Analysis involve evaluating risks and assigning probability and impact factors to the risks. Many tools and techniques are used during these processes including risk probability and impact, probability/impact risk rating matrix, interviewing, sensitivity analysis, decision tree analysis, and simulation. A probability/impact risk matrix uses the combination of the probability score multiplied by the impact value to determine the risk score and assignment. The threshold of risk based on high, medium, and low tolerances is determined by comparing the risk score based on the probability level to the PI matrix. Monte Carlo simulation is a technique used to quantify schedule or cost risks. Decision trees graphically display decisions and their various choices and outcomes. The Risk Response Planning process is the last risk-planning process and culminates with the risk response plan. The risk response plan details the strategies youll use to respond to risk and assigns individuals to manage each risk response. Risk response strategies include avoidance, mitigation, acceptance, and transfer. Insurance and contracting are examples of transferring risk. Contingency planning involves planning alternatives to deal with risk events should they occur. Part of the risk management plan should detail the contingency plans for high-probability, high-impact risk events. Procurement Planning involves performing analysis to determine if the goods and services needed to perform the project should be procured from a vendor or produced internally. Several types of contracts are considered during procurement. The risk impact with fixed price contracts typically rests on the seller, while the risk impact with cost reimbursable contracts rests on the buyer. The procurement management plan details how the procurement process will be managed during the course of the project. Solicitation Planning is a matter of preparing the documents youll use in the Solicitation process during the Executing process of the project. Exam Essentials Be able to identify what produces increased stakeholder satisfaction, lower costs, higher productivity, and less rework.These are the benefits of meeting quality requirements and are discovered during benefit/cost analysis in Quality Planning. Be able to name the purpose of Risk Identification.To identify all risks that may impact the project, document them, and identify their characteristics. Be able to define the purpose of Qualitative Risk Analysis.Qualitative Risk Analysis determines the impact the identified risks will have on the project and the probability theyll occur, and puts the risks in priority order according to their effect on the project objectives. Be able to define the purpose of the risk response plan.It describes the actions to take should the identified risks occur. It should include all the identified risks, a description of the risks, how theyll impact the project objectives, and the people assigned to manage the risk responses. Be able to name the purpose for the Procurement Planning process.To identify which project needs should be obtained from outside the organization. Be able to identify the contract types and their usage.Use fixed price contracts for long-term projects with a high value to the company, and use cost reimbursable contracts for projects with uncertainty and large investments early in the project life. Time and materials contracts are a cross between fixed and cost reimbursable. Key Terms Before you take the exam, be certain you are familiar with the following terms: benchmarkingquality management plancause-and-effect diagramQuality PlanningchecklistQuantitative Risk AnalysisDelphi TechniqueRisk Identificationflowchartrisk management planimpact scaleRisk Management Planningprobability scaleRisk Response Planningprocurement management planSolicitation PlanningProcurement Planningstatement of work (SOW)Qualitative Risk AnalysisReview Questions 1. What are the Quality Planning process outputs? Quality management plan, benchmarking, checklists, evaluation criteria Quality management plan, benchmarking, operational definitions Quality management plan, checklists, inputs to other processes Quality management plan, operational definitions, checklists, inputs to other processes HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=185127133" \l "answer.nr-qandaentry.5E971E58-B564-4076-9968-07537635EA28C175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.5E971E58-B564-4076-9968-07537635EA28C175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 2. Three people are responsible for establishing cost of quality theories. Crosby and Juran are two them, and their theories respectively are: Grades of quality, fitness for use Fitness for use, zero defects Zero defects, fitness for use Cost of quality, zero defects  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=185127133" \l "answer.nr-qandaentry.02059BEF-8D7A-4AEA-BE60-2242E3A06E85C175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.02059BEF-8D7A-4AEA-BE60-2242E3A06E85C175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 3. The theory that 85 percent of the cost of quality is a management problem is attributed to: Deming Kaizen Juran Crosby HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=185127133" \l "answer.nr-qandaentry.AEBA628C-CEA7-46A9-B7D7-A85F7A390C44C175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.AEBA628C-CEA7-46A9-B7D7-A85F7A390C44C175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 4. All of the following are benefits of meeting quality requirements except: An increase in stakeholder satisfaction Less rework Low turnover Higher productivity  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=185127133" \l "answer.nr-qandaentry.D1F64D17-BF4F-4FD0-80DE-816B9BA7852DC175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.D1F64D17-BF4F-4FD0-80DE-816B9BA7852DC175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 5. You are a project manager for Fountain of Youth Spring Water bottlers. You are installing a new accounting system and have identified several problems and their causes. You decide to use which of the following flowcharts to diagram the problems causes and effects? Decision tree diagram Fishbone diagram Benchmark diagram Simulation tree diagram HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=185127133" \l "answer.nr-qandaentry.B094C70C-E75C-4917-82CC-17342803E3B8C175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.B094C70C-E75C-4917-82CC-17342803E3B8C175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 6. You are a project manager for Fountain of Youth Spring Water bottlers. You are installing a new accounting system and have identified several problems and their causes. You decide to use which of the following to identify the variables that will have the greatest effect on project outcomes? Design of experiments Benchmarking Benefit/cost analysis Flowcharting  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=185127133" \l "answer.nr-qandaentry.6FD012B7-B0F8-4AA7-9C3E-3D6EB660E149C175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.6FD012B7-B0F8-4AA7-9C3E-3D6EB660E149C175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 7. Each of the following is true regarding the risk management plan except: The risk management plan is an output of the Risk Management Planning process. The risk management plan includes a description of the responses to risks and triggers. The risk management plan includes thresholds, scoring and interpretation methods, responsible parties, and budgets. The risk management plan is an input to all the remaining risk-planning processes.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=185127133" \l "answer.nr-qandaentry.25211BF4-BCD3-4404-8C3B-B7A1167D4E85C175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.25211BF4-BCD3-4404-8C3B-B7A1167D4E85C175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 8. Information-gathering techniques used in the Risk Identification process include all of the following except: Brainstorming Delphi technique Interviewing Kaizen technique  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=185127133" \l "answer.nr-qandaentry.D1992232-C754-4551-B02D-BB1895A23E9EC175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.D1992232-C754-4551-B02D-BB1895A23E9EC175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 9. Which of the following processes assess the likelihood of risk occurrences and their consequences using numeric probability assignments? Qualitative Risk Analysis Risk Identification Quantitative Risk Analysis Risk Response Planning HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=185127133" \l "answer.nr-qandaentry.55F08671-E43D-4037-A2FD-53C36A1148EBC175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.55F08671-E43D-4037-A2FD-53C36A1148EBC175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 10. You are the project manager for a new website for the local zoo. You need to perform Qualitative Risk Analysis. When youve completed this process, youll produce all of the following outputs except: Overall risk ranking for the project List of prioritized risks Inputs to other processes List of risks for additional analysis and management  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=185127133" \l "answer.nr-qandaentry.2A5833B2-05FF-477E-A26B-907C07CA8185C175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.2A5833B2-05FF-477E-A26B-907C07CA8185C175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 11. You are the project manager for a new website for the local zoo. You need to perform Quantitative Risk Analysis. Youll use all of the following tools and techniques to accomplish this except: Data precision ranking Sensitivity analysis Decision tree analysis Interviewing HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=185127133" \l "answer.nr-qandaentry.A246F597-C369-48ED-9E56-17971B632278C175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.A246F597-C369-48ED-9E56-17971B632278C175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 12. Which of the following tools and techniques shows the impacts of one decision over another as well as the probability and cost of each risk along a logical path? Simulation Decision tree Probability/impact risk matrix Sensitivity analysis  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=185127133" \l "answer.nr-qandaentry.1C0B9187-25AB-49EE-B2A5-4584682F279AC175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.1C0B9187-25AB-49EE-B2A5-4584682F279AC175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 13. Which of the following describes the cost of quality associated with scrapping, rework, and downtime? Internal failure costs External failure costs Prevention costs Appraisal costs HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=185127133" \l "answer.nr-qandaentry.09F2793D-A1CB-43E3-99B4-3BE678863CFAC175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.09F2793D-A1CB-43E3-99B4-3BE678863CFAC175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 14. Your hardware vendor left you voicemail saying that a potential snowstorm in the Midwest might prevent your equipment from arriving on time. She wanted to give you a heads-up and asked that you return the call. Which of the following is true? This is a secondary risk, which is an output of Risk Response Planning. This is a contingency plan, which is an output of Risk Response Planning. This is a risk, which is an output of Risk Identification. This is a trigger, which is an output of Risk Identification.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=185127133" \l "answer.nr-qandaentry.2955A1E9-4153-4B46-9D19-77B710EDB95DC175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.2955A1E9-4153-4B46-9D19-77B710EDB95DC175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 15. You are constructing a probability/impact risk rating matrix for your project. Which of the following is true? The PI matrix multiplies the risks probability by the cost of the impact to determine an expected value of the risk event. The PI matrix multiplies the risks probability scales, which fall between 0.0 and 1.0, and the risks impact scales to determine a risk score. The PI matrix multiplies the risks probability by the expected value of the risk event to determine the risk impact and assign a risk score based on a predetermined threshold. The PI matrix multiplies the risks probability scales and the risks impact scales, which fall between 0.0 and 1.0, to determine a risk score.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=185127133" \l "answer.nr-qandaentry.F6981818-4702-4AF7-BB2D-535267A18A5EC175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.F6981818-4702-4AF7-BB2D-535267A18A5EC175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 16. All of the following strategies are tools and techniques of Risk Response Planning used to reduce or control risk except? Mitigation Simulation Avoidance Acceptance  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=185127133" \l "answer.nr-qandaentry.B970A92D-46B5-42DC-A4BA-43E0871F06A6C175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.B970A92D-46B5-42DC-A4BA-43E0871F06A6C175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 17. Your hardware vendor left you voicemail saying that a snowstorm in the Midwest will prevent your equipment from arriving on time. You identified a risk response for this risk and have arranged for a local company to lease you the needed equipment until yours arrives. This is an example of which risk response strategy? Transference Acceptance Mitigation Avoidance  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=185127133" \l "answer.nr-qandaentry.85EE9E7C-2687-47CB-857C-B0275FF1F868C175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.85EE9E7C-2687-47CB-857C-B0275FF1F868C175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 18. You are the project manager for an upcoming outdoor concert event. Youre working on the procurement plan for the computer software program that will control the lighting and screen projections during the concert. Youre comparing the cost of purchasing a software product to the cost of your company programmers writing a custom software program. You are engaged in which of the following? Procurement planning Sensitivity analysis Transference of risk Make or buy analysis HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=185127133" \l "answer.nr-qandaentry.CBB9AC83-49B6-4ADB-A506-3F4196DFC741C175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.CBB9AC83-49B6-4ADB-A506-3F4196DFC741C175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 19. You are the project manager for an outdoor concert event scheduled for 1 year from today. Youre working on the procurement plan for the computer software program that will control the lighting and screen projections during the concert. Youve decided to contract with a professional services company that specializes in writing custom software programs. You want to minimize the risk to the organization, so youll opt for which contract type? Fixed price plus incentive Cost plus fixed fee Fixed price Cost plus incentive  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=185127133" \l "answer.nr-qandaentry.F5D65F7C-F99E-4E5A-80D4-14F1F662CD42C175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.F5D65F7C-F99E-4E5A-80D4-14F1F662CD42C175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 20. You are the project manager for Heart of Texas casual clothing company. Theyre introducing a new line of clothing called Black Sheep Ranch Wear. You will outsource the production of this clothing line to a vendor. The vendor has requested a SOW. All of the following are true except: The SOW contains a description of the new clothing line. As the purchaser, you are required to write the SOW. The SOW contains the objectives of the project. The vendor requires a SOW to determine if they can produce the clothing line given the very detailed specifications of this project.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=185127133" \l "answer.nr-qandaentry.0C075370-CE27-4339-804A-D59FE4A7ADD4C175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.0C075370-CE27-4339-804A-D59FE4A7ADD4C175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET Answers  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=185127133" \l "nr-qandaentry.5E971E58-B564-4076-9968-07537635EA28C175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.5E971E58-B564-4076-9968-07537635EA28C175720B-D8EB-423D-B9A6-BC518538C1DD" 1.D Quality Planning has four outputs: quality management plan, operational definitions, checklists, and inputs to other processes. Benchmarking is a tool and technique of this process. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=185127133" \l "nr-qandaentry.02059BEF-8D7A-4AEA-BE60-2242E3A06E85C175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.02059BEF-8D7A-4AEA-BE60-2242E3A06E85C175720B-D8EB-423D-B9A6-BC518538C1DD" 2.C Philip Crosby devised the zero defects theory, meaning do it right the first time. Proper Quality Planning leads to less rework and higher productivity. Joseph Jurans fitness for use says that stakeholders and customers expectations are met or exceeded. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=185127133" \l "nr-qandaentry.AEBA628C-CEA7-46A9-B7D7-A85F7A390C44C175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.AEBA628C-CEA7-46A9-B7D7-A85F7A390C44C175720B-D8EB-423D-B9A6-BC518538C1DD" 3.A W. Edwards Deming conjectured that the cost of quality is a management problem 85 percent of the time and that once the problem trickles down to the workers, it is outside their control.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=185127133" \l "nr-qandaentry.D1F64D17-BF4F-4FD0-80DE-816B9BA7852DC175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.D1F64D17-BF4F-4FD0-80DE-816B9BA7852DC175720B-D8EB-423D-B9A6-BC518538C1DD" 4.C The benefits of meeting quality requirements are increased stakeholder satisfaction, lower costs, higher productivity, and less rework. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=185127133" \l "nr-qandaentry.B094C70C-E75C-4917-82CC-17342803E3B8C175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.B094C70C-E75C-4917-82CC-17342803E3B8C175720B-D8EB-423D-B9A6-BC518538C1DD" 5.B The cause-and-effect flowcharts, also called fishbone diagrams or Ishikawa diagrams, show the relationship between the causes and effects of quality problems.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=185127133" \l "nr-qandaentry.6FD012B7-B0F8-4AA7-9C3E-3D6EB660E149C175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.6FD012B7-B0F8-4AA7-9C3E-3D6EB660E149C175720B-D8EB-423D-B9A6-BC518538C1DD" 6.A Design of experiments is an analytical technique that identifies the elements or variables that will have the greatest effect on overall project outcomes. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=185127133" \l "nr-qandaentry.25211BF4-BCD3-4404-8C3B-B7A1167D4E85C175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.25211BF4-BCD3-4404-8C3B-B7A1167D4E85C175720B-D8EB-423D-B9A6-BC518538C1DD" 7.B The risk management plan details how risk management processes will be implemented, monitored, and controlled throughout the life of the project. The risk management plan does not include responses to risks or triggers. Responses to risks are detailed in the Risk Response Planning process.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=185127133" \l "nr-qandaentry.D1992232-C754-4551-B02D-BB1895A23E9EC175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.D1992232-C754-4551-B02D-BB1895A23E9EC175720B-D8EB-423D-B9A6-BC518538C1DD" 8.D The Kaizen approach is a quality technique that says project team members and managers should always be on the lookout for quality improvement opportunities. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=185127133" \l "nr-qandaentry.55F08671-E43D-4037-A2FD-53C36A1148EBC175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.55F08671-E43D-4037-A2FD-53C36A1148EBC175720B-D8EB-423D-B9A6-BC518538C1DD" 9.C Quantitative Risk Analysis analyzes the probability of risks and their consequences using numeric probability assignments. Qualitative Risk Analysis may use numeric probability analysis, but the Guide to the PMBOK distinguishes between these two processes by stating that Quantitative Risk Analysis analyzes probability numerically. The Quantitative Risk Analysis process evaluates risk impacts and assesses the range of possible project results. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=185127133" \l "nr-qandaentry.2A5833B2-05FF-477E-A26B-907C07CA8185C175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.2A5833B2-05FF-477E-A26B-907C07CA8185C175720B-D8EB-423D-B9A6-BC518538C1DD" 10.C Inputs to other processes are an output of Risk Identification and Risk Response Planning. The other output of Qualitative Risk Analysis not listed here is trends in Qualitative Risk Analysis results. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=185127133" \l "nr-qandaentry.A246F597-C369-48ED-9E56-17971B632278C175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.A246F597-C369-48ED-9E56-17971B632278C175720B-D8EB-423D-B9A6-BC518538C1DD" 11.A Data precision ranking is a tool and technique of the Qualitative Risk Analysis process. The remaining tool and technique of Quantitative Risk Analysis is simulation. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=185127133" \l "nr-qandaentry.1C0B9187-25AB-49EE-B2A5-4584682F279AC175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.1C0B9187-25AB-49EE-B2A5-4584682F279AC175720B-D8EB-423D-B9A6-BC518538C1DD" 12.B Decision trees allow you to show the sequence of choices and their outcomes in a tree form starting with the decision or risk event at the left and each option branching out from there to the right. This is a tool and technique of the Quantitative Risk Analysis process. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=185127133" \l "nr-qandaentry.09F2793D-A1CB-43E3-99B4-3BE678863CFAC175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.09F2793D-A1CB-43E3-99B4-3BE678863CFAC175720B-D8EB-423D-B9A6-BC518538C1DD" 13.A Internal failure costs are costs associated with not meeting the customers expectations while you still had control over the product. This results in rework, scrapping, and downtime. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=185127133" \l "nr-qandaentry.2955A1E9-4153-4B46-9D19-77B710EDB95DC175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.2955A1E9-4153-4B46-9D19-77B710EDB95DC175720B-D8EB-423D-B9A6-BC518538C1DD" 14.D The best answer is D. Triggers are also called risk symptoms, which are an output of Risk Identification. Triggers are warning signs of an impending risk.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=185127133" \l "nr-qandaentry.F6981818-4702-4AF7-BB2D-535267A18A5EC175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.F6981818-4702-4AF7-BB2D-535267A18A5EC175720B-D8EB-423D-B9A6-BC518538C1DD" 15.B The PI matrix multiplies the probabilitydetermined with the risks probability scales, which fall between 0.0 and 1.0and impact, which is determined with impact scales, to determine a risk score and assign a high, medium, or low designation to the risk based on a predetermined threshold. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=185127133" \l "nr-qandaentry.B970A92D-46B5-42DC-A4BA-43E0871F06A6C175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.B970A92D-46B5-42DC-A4BA-43E0871F06A6C175720B-D8EB-423D-B9A6-BC518538C1DD" 16.B The tools and techniques of Risk Response Planning are avoidance, transference, mitigation, and acceptance. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=185127133" \l "nr-qandaentry.85EE9E7C-2687-47CB-857C-B0275FF1F868C175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.85EE9E7C-2687-47CB-857C-B0275FF1F868C175720B-D8EB-423D-B9A6-BC518538C1DD" 17.C Mitigation tries to reduce the impact of a risk event should it occur. Making plans to arrange for the leased equipment reduces the consequences of the risk.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=185127133" \l "nr-qandaentry.CBB9AC83-49B6-4ADB-A506-3F4196DFC741C175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.CBB9AC83-49B6-4ADB-A506-3F4196DFC741C175720B-D8EB-423D-B9A6-BC518538C1DD" 18.D Make or buy analysis is determining whether its more cost effective to purchase the goods or services needed for the project or more cost effective for the organization to produce them internally.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=185127133" \l "nr-qandaentry.F5D65F7C-F99E-4E5A-80D4-14F1F662CD42C175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.F5D65F7C-F99E-4E5A-80D4-14F1F662CD42C175720B-D8EB-423D-B9A6-BC518538C1DD" 19.C Fixed price contracts have the highest risk to the seller and the least amount of risk to the buyer. However, the price the vendor charges for the product or service will compensate for the amount of risk theyre taking on. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=185127133" \l "nr-qandaentry.0C075370-CE27-4339-804A-D59FE4A7ADD4C175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.0C075370-CE27-4339-804A-D59FE4A7ADD4C175720B-D8EB-423D-B9A6-BC518538C1DD" 20.B The SOW can be written by either the buyer or the seller. Sometimes the buyer will write the SOW, and the seller may modify it and send it back to the buyer for verification and approval.  Chapter 7: Creating the Project Plan PMP Exam Content from the Project Planning Performance Domain Covered in This Chapter: Develop Project Plan. Obtain Plan Approval. Overview The Planning process group has more processes than any other Guide to the PMBOK process group. As a result, a lot of time and effort goes into the Planning process of any project. Youll find on some projects you spend as much time planning the project as you do executing and controlling the project. This isnt a bad thing. The better planning you do up front, the more likely youll have a successful project. The Planning, Executing, and Controlling process groups together account for almost 70 percent of the PMP exam questions, so youll want to spend about the same percentage of your study time on these areas. Well spend this chapter wrapping up the remaining Planning processes and conclude with a discussion of the Project Plan Development process. This process takes the outputs of other Planning processes and creates a project plan thats used throughout project Executing and project Controlling processes to track project performance. All other processes in the Planning process group have to be completed before working on the Project Plan Development process. Well cover Schedule Development and Cost Budgeting in this chapter as well and begin the Executing process group in the  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=491" \l "491" \t "_parent" next chapter. Developing the Project Schedule The Schedule Development process is the heart of the Planning process group. This is where you will lay out the schedule for your project tasks, determine their start and finish dates, and finalize activity sequences and durations. This process, along with Activity Duration Estimating and Cost Estimating, is repeated several times before you actually come up with the project schedule. Well learn later in this section that project management software comes in very handy during this process. In fact, it is one of the tools and techniques of this process. Although there are no exam questions regarding the order that processes are performed in, it might help to understand that Schedule Development cannot be performed until all of the following core processes of project Planning are completed: Scope Planning, Scope Definition, Resource Planning, Activity Definition, Activity Sequencing, Activity Duration Estimating, Risk Management Planning, and Cost Estimating. Schedule Development must be completed prior to the Cost Budgeting process, which well cover later in this chapter. Both of these processes then feed the final Planning process, Project Plan Development. Scheduling Inputs Schedule Development has 10 inputs, 7 of which are outputs from previous Planning processes. As weve discussed, you can see how important it is to perform all of the Planning processes accurately, as the information you derive from almost every process is used somewhere else in Planning or in the later process groups. Your project schedule will reflect the information you know at this point in time. If you have incorrectly estimated activity durations or didnt identify the right dependencies, for example, your project schedule will not be correct. Its definitely worth the time investment to correctly plan your project and come up with accurate outputs for each of the Planning processes. Three of the inputs to this process are new: calendars, leads and lags, and activity attributes. A short description of each is given next. Calendars Calendars are divided into two types: project calendars and resource calendars. Project calendars concern all the resources involved in the project, while resource calendars look at particular resources or groups of resources and their availability. Leads and Lags Leads and lags are related to Activity Sequencing. Remember that Activity Sequencing puts tasks in logical order and determines if there are dependencies that exist among the activities. We then take these tasks and develop a network diagram from them. (We discussed this in  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=280" \l "280" \t "_parent" Chapter 5 if you need a quick review.) Leads and lags come in when there are delays between dependent and independent activities. Lags require the dependent activity to have time added either to the start date or to the finish date of the activity. Leads, conversely, require time to be subtracted from the start date or the finish date of the dependent activity. Lead time is not used as often as lag time. Lets go back to the classic house-painting example to put all this in perspective. In order to paint, we first need to scrape the peeling paint and then prime. However, we cant begin painting until the primer has dried. So we shouldnt schedule priming for Monday and painting for Tuesday if we need the primer to dry on Tuesday. Therefore, the priming activity requires lag time, so we need to add time to the end of this activity to allow for the drying time needed before we can start painting. Lead time works just the opposite. Suppose, for this example, we could start priming before the scraping is finished. Maybe there are areas on the house that dont require scraping, so we dont really need to wait until the scraping activity finishes to begin the priming activity. Priming in this example has lead time subtracted from the beginning of the activity so that this activity begins prior to the finish of the previous activity. Activity Attributes Activity attributes are the characteristics of the activity. These might include a description of where the activity will take place, who will perform the activity, and whether the activity is a summary-level activitylevel two or three on the WBS perhapsor a detailed activity with particular specifications. Understanding the Tools and Techniques of Schedule Development The two primary outputs of Schedule Development are the project schedule and the schedule management plan. You can employ several tools and techniques in order to produce these outputs. The tools and techniques you choose will depend on the complexity of the project. For the exam, however, youll need to know them all. There are six tools and techniques used in Schedule Development. A lot of information is packed into some of these tools and techniques, and you will want to dedicate study time to each of them for the exam. The first tool and technique, called mathematical analysis, includes several techniques, each of which are thoroughly covered on the exam. So, lets get to it! Mathematical Analysis Mathematical analysis includes three commonly known techniques: Critical Path Method (CPM), Graphical Evaluation and Review Technique (GERT), and Program Evaluation and Review Technique (PERT). CPM and PERT are very similar network-planning methods, and in some organizations, CPM and PERT are used synonymously. Well examine each of these techniques momentarily. Keep in mind that CPM and PERT are methods to determine schedule durations without regard to resource availability. Critical Path Method Critical Path Method (CPM) calculates the earliest start date, earliest finish date, latest start date, and latest finish date for each activity. The critical path (CP) on any project is the longest full path. Any project activity with a float time that equals zero is considered a critical path task. We will walk through an example to explain how all these dates and float times are calculated after a short description of float time. Float time is also called slack time, and youll see these terms used interchangeably. There are two types of slack: total slack and free slack. Total slack is the amount of time you can delay the start of a task without delaying the ending of the project. Free slack is the amount of time you can delay the start of a task without delaying the start of a successor task. Well calculate the CP for a sample project and illustrate how all the dates, the CP, and the float times are derived. You are the project manager for a new software project. The company you are working for is venturing into the movie rental business over the Web. You need to devise a software system that tracks all the information related to rentals and also supplies the management team with reports that will help them make good business decisions. For purposes of illustration, Im showing only a limited portion of the tasks that you would have on a project like this. Well start our example by plugging information into  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=555175814" \l "wbpch07T1P1C175720B-D8EB-423D-B9A6-BC518538C1DD#wbpch07T1P1C175720B-D8EB-423D-B9A6-BC518538C1DD" Table 7.1 (see below) from the processes that weve already completed. The list of activities comes from the work package level of the WBS and the activity list compiled during the Activity Definition process. The durations for each activity are listed in the column by that title and were derived during the Activity Duration Estimating process. The duration times are listed in days. The Dependency column lists the activities that require a previous activity to finish before the current activity can start. Were using only finish-start relationships. For example, youll see that activity number 2 and activity number 4 each depend on activity 1 to finish before they can begin. The dependency information came from the Activity Sequencing process. Now, well proceed to calculating the dates. Project Deliverables is the first activity and, obviously, where the project starts. This activity begins on April 1. Project Deliverables has a 12-day duration. So now take April 1 and add 12 days to this to come up with an early finish date of April 12. Watch out, because you need to count day one, or April 1, as a full work day. The simplest way to do this calculation is to take the early start date, add the duration, and subtract one. Therefore, the early finish date for the first activity is April 12. By the way, we are ignoring weekends and holidays for this example. Activity 2 depends on activity 1, so it cannot start until activity 1 has finished. Its earliest start date is April 13. Add the duration to this date minus one to come up with the finish date. Youll notice that activity 4 depends on activity 1 finishing, so its earliest start date is also April 13. Continue to calculate the remaining early start and early finish dates in the same manner. This calculation is called a forward pass. To calculate the late start and late finish dates, you begin with the last activity. The late finish for activity 9 is July 10. Since the duration is only 1 day, July 10 is also the late start date. You know that activity 8 must finish before activity 9 can begin, so activity 8s late finish date, July 9, is 1 day prior to activity 9s late start date, July 10. Subtract the duration of activity 8 (3 days) from July 9 and add one to get the late start date of July 7. Were performing the opposite calculation that we did for the forward pass. This calculation is called a backward pass, as you might have guessed. Continue calculating the late start and late finish through activity 4. Activity 3 adds a new twist. Heres how it works. Activity 7 cannot begin until activity 3 and activity 6 are completed. No other activity depends on the completion of activity 3. If activity 7s late start date is June 29, activity 3s late finish date must be June 28. June 28 less 8 days plus one gives us a late start date of June 21. Activity 3 depends on activity 2, so activity 2 must be completed prior to beginning activity 3. Calculate these dates just like you did for activities 9 through 4. Activity 1 still remains. Activity 4 cannot start until activity 1 is completed. If activity 4s late start date is April 13, the late finish date for activity 1 must be April 12. Subtract the duration of activity 1 and add one to come up with a late start date of April 1. Alternatively, the forward pass and backward pass can be calculated by saying the first task starts on day zero and then adding the duration to this. As an example, activity number 1s early start date is April 1, which is day zero. Add 12 days to day zero and you come up with an early finish date of April 12. The calculation for float/slack time is determined by subtracting the early start date from the late start date. If the float time equals zero, the activity is on the critical path. To determine the CP duration of the project, add up the duration of every activity with zero float. You should come up with 101 days, as were adding the duration for all activities except for activity 2 and activity 3. A critical path task is any task that cannot be changed without impacting the project end date. By definition, these are all tasks with zero float.   INCLUDEPICTURE "http://www.books24x7.com/book/id_3964/_.gif" \* MERGEFORMATINET  Table 7.1: CPM Calculation  HYPERLINK "javascript:PopImage('IMG_29','http://images.books24x7.com/bookimages/id_3964/t0701_0.jpg','918','700')" \t "_self"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/t0701.jpg" \* MERGEFORMATINET   INCLUDEPICTURE "http://www.books24x7.com/book/id_3964/_.gif" \* MERGEFORMATINET Another way to determine the critical path is by looking at the network diagram. If the duration is included with the information on the node, or if start and end dates are given, you simply calculate the duration and then add up the duration of the longest path in the diagram to determine CP. However, this method is not as accurate as whats described in  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=555175814" \l "wbpch07T1P1C175720B-D8EB-423D-B9A6-BC518538C1DD#wbpch07T1P1C175720B-D8EB-423D-B9A6-BC518538C1DD" Table 7.1. Shown in  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=555175814" \l "figure.B57665BD-056C-46A2-8AD1-DF41E9A7A46EC175720B-D8EB-423D-B9A6-BC518538C1DD#figure.B57665BD-056C-46A2-8AD1-DF41E9A7A46EC175720B-D8EB-423D-B9A6-BC518538C1DD" Figure 7.1 is the same project in diagram form. Duration is printed in the top-right corner of each node. Add up the duration of each path to determine which one is the critical path.  HYPERLINK "javascript:PopImage('IMG_30','http://images.books24x7.com/bookimages/id_3964/f0701_0.jpg','649','399')" \t "_self"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/f0701.jpg" \* MERGEFORMATINET  Figure 7.1: Critical path diagram Remember that CP is always the path with the longest duration. In the figure, path 1-2-3-7-8-9 equals 34 days. Path 1-4-5-6-7-8-9 equals 101 days; therefore this path is the critical path. Graphical Evaluation and Review Technique The only thing you need to understand about the Graphical Evaluation and Review Technique (GERT) for the exam is that GERT allows for conditional branching and looping, and probabilistic treatment. In practice, GERT is similar to PERT except that GERT allows you to loop back through a process or perform branching to show alternatives. For example, our software project in the CPM example might require unit testing of individual modules before the entire program can be tested, and each module must pass its unit test. If the unit test fails, GERT allows you to depict a looping condition so that you can come back through unit testing and then progress to the next activity once the unit test is passed. Program Evaluation and Review Technique The Program Evaluation and Review Technique (PERT) was developed in the 1950s by the United States Navy. They were working on one of the most complex engineering projects in history at the time, the Polaris Missile Program, and needed a way to manage the project and forecast the project schedule with a high degree of reliability. PERT was developed to do just that. PERT and CPM are similar techniques. The difference is CPM uses the most likely duration to determine project duration, while PERT uses whats called expected value (or the weighted average) to determine project duration. Expected value is calculated using three time estimates for activity duration instead of one and then finding the weighted average of the three time estimates. If we take this one step further and determine the standard deviation of each activity, we can assign a confidence factor to our project estimates. Without getting too heavily involved in the mathematics of probability, understand that for data that fits a bell curve, which is what were about to calculate with the PERT technique, the following is true: Work will finish within plus or minus three standard deviations 99.73 percent of the time. Work will finish within plus or minus two standard deviations 95.44 percent of the time. Work will finish within plus or minus one standard deviation 68.26 percent of the time. The three time estimates used to calculate expected value are the optimistic estimate, the pessimistic estimate, and the most likely estimate. Going back to our software example, lets find out what these three time estimates might look like for the activity called Write Programs. You get these estimates by asking the lead programmer, or key team member, to estimate the optimistic, pessimistic, and most likely duration for the activity based on their past experience. Other historical information could be used to determine these estimates as well. Well say in this case that were given 38 days for the optimistic time, 57 days for the pessimistic, and 45 days for the most likely. (Remember that 45 days is what we used to calculate CPM and was derived from the Activity Duration Estimating process.) The formula to calculate expected value is as follows: [optimistic + pessimistic + (4 most likely)] 6 The expected value for the Write Programs activity is as follows: [38 + 57 + (4 45)] 6 = 45.83 The formula for standard deviation, which helps us determine confidence level, is as follows: (pessimistic optimistic) 6 The standard deviation for our activity is as follows: (57 38) 6 = 3.17 We could say the following given the information we now have: There is a 68.26 percent chance that the Write Programs activity will be completed between 42.66 days and 49 days. There is a 95.44 percent chance that the Write Programs activity will be completed between 39.49 days and 52.17 days. We calculated the range of dates for the 68.26 percent chance by adding and subtracting one standard deviation, 3.17, from the expected value, 45.83. The 95.44 percent chance was calculated by multiplying the standard deviation times two, which equals 6.34, and adding and subtracting that result from the expected value to come up with the least number of days and the most number of days it will take to finish the activity. Generally speaking, two standard deviations, or 95.44 percent, is a close enough estimate for most purposes. The higher the standard deviation is for an activity, the higher the risk. Since standard deviation measures the difference between the pessimistic and the optimistic times, a greater spread between the two, which results in a higher number, indicates a greater risk. Conversely, a low standard deviation means less risk. Lets bring our table of activities back and plug in the expected values and the standard deviation for each (please see  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=555175814" \l "wbpch07T2P2C175720B-D8EB-423D-B9A6-BC518538C1DD#wbpch07T2P2C175720B-D8EB-423D-B9A6-BC518538C1DD" Table 7.2).   INCLUDEPICTURE "http://www.books24x7.com/book/id_3964/_.gif" \* MERGEFORMATINET  Table 7.2: PERT Calculation  HYPERLINK "javascript:PopImage('IMG_31','http://images.books24x7.com/bookimages/id_3964/t0702_0.jpg','776','645')" \t "_self"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/t0702.jpg" \* MERGEFORMATINET   INCLUDEPICTURE "http://www.books24x7.com/book/id_3964/_.gif" \* MERGEFORMATINET Now well look at the total project duration using PERT and the standard deviation to determine a range of dates for project duration. You should add only the tasks that are on the critical path. Youll remember from the CPM example that tasks 2 and 3 are not on the critical path, so their expected value and standard deviation calculations have been left blank in this table. When we add all the remaining tasks, the total expected value duration is 102.99 days, or 103 days rounded to the nearest day. Your next logical conclusion might be to add the Standard Deviation column to get the standard deviation for the project. Unfortunately, you cannot add up the standard deviations because you will come out with a number that is much too high. Totaling the standard deviations assumes that all of the tasks will run over schedule, and thats not likely. It is likely that a few tasks will run over, but not every one of them. So, now youre probably wondering how to calculate the magic number. You might have noticed an extra column at the right called SD Squared. This is the standard deviation squaredor for those of you with math phobias out there, the standard deviation multiplied by itself. Once you have calculated standard deviation squared for each activity, add up the squares for a total of 14.98. Theres one more step and were done. Take the square root of 14.98 (youll need a calculator) to come up with 3.87. This is the standard deviation you will use to determine your range of projected completion dates. Heres a recap of these last few calculations: Total expected value = 103.00 Sum of SD Squared = 14.98 Square root of SD Squared = 3.87 We can now make the following predictions regarding our project: There is a 68.26 percent chance that the project will be completed between 99.13 days and 106.87 days. There is a 95.44 percent chance that the project will be completed between 95.26 days and 110.74 days. PERT is used for very large, highly complex projects. PERT is also a useful technique to determine project duration when your activity durations are uncertain. For the exam, its recommended that you know one standard deviation gives you a 95 percent (rounded) probability and two standard deviations gives you a 68 percent (rounded) probability. Also know how to calculate the range of project duration dates based on the expected value and standard deviation calculation. You probably dont need to memorize how to calculate the standard deviation as I believe most of the questions give you this information. You should, however, memorize the PERT formula and know how it works. It wouldnt hurt to go ahead and memorize the standard deviation formula as wellyou never know what might show up on the exam. Duration Compression Duration compression takes on two forms according to the Guide to the PMBOK, crashing and fast tracking. Compression is simply shortening the project schedule to accomplish all the activities sooner than estimated. Schedule compression might happen when the project end date has been predetermined and after performing the CPM or PERT techniques, you discover that the project is going to take longer than the original promised date. In our CPM example, we calculated the end date to be July 10. What if the project was undertaken and a July 2 date was promised? Thats when youll need to employ crashing or fast tracking. Crashing is a compression technique that looks at cost and schedule trade-offs. One of the things you might do to crash the schedule is add resources, from either inside or outside the organization, to the critical path tasks. It wouldnt help you to add resources to noncritical path tasks as these tasks dont impact the schedule end date anyway because they have float time. You might also limit or reduce the project requirements. Ask stakeholders if the features or functions are nice to have or necessary. You might also try changing the sequence of tasks. This sometimes shortens the schedule, but isnt always possible. Be certain to check the critical path when youve used the crashing technique as crashing might have changed the critical path. Crashing doesnt always come up with a reasonable result. It will often increase the costs of the project as well. The idea with crashing is to try to gain the greatest amount of schedule compression with the least amount of cost. We talked about fast tracking in  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=17" \l "17" \t "_parent" Chapter 1. Fast tracking is starting two tasks at the same time that were previously scheduled to start sequentially. Fast tracking can increase project risk and might cause the project team to have to rework tasks. As an example, fast tracking is often performed in object-oriented programming. The programmers might begin writing code on several modules at once, out of sequential order, and prior to the completion of the design phase. Simulation Monte Carlo Analysis is a simulation technique that produces a range of values for each activity with multiple duration possibilities. Probability durations are then chosen for each activity, and the simulation starts. Monte Carlo will run the possible activity durations and schedule projections many, many times to come up with the schedule projections and their probability, critical path duration estimates, and float time. For the exam, remember that Monte Carlo is a simulation technique that shows the probability of all the possible project completion dates. Resource Leveling Heuristics Earlier I said that CPM and PERT do not consider resource availability. Now that you have a schedule of activities, its time to plug in resources for those activities and adjust the schedule according to any resource constraints you discover. Remember that you identified resources and acquired staff during the Resource Planning and Staff Acquisition processes, which we discussed in  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=280" \l "280" \t "_parent" Chapter 5. Skill sets, previous experience, availability, and personal interests were documented during these processes, and staff was assigned to the project. Staff members were not assigned directly to tasks at that point, just to the project itself. Organizational development described roles and responsibilities as they related to scope definition and produced the staffing management plan, which describes how to bring resources on and off the project. Now during Schedule Development, resources are assigned to specific activities. Usually, youll find that your initial schedule has periods of time with more activities than you have resources to work on them. You will also find that it isnt always possible to assign 100 percent of your team members time to tasks. Sometimes your schedule will show a team member who is over allocated, meaning theyre assigned to more work than they can physically perform in the given time period. Other times, they might not be assigned enough work to keep them busy during the time period. This problem is easy to fix. You can assign under-allocated resources to multiple tasks to keep them busy. Having over-allocated resources is a little more difficult problem to resolve. Resource leveling attempts to smooth out the resource assignments to get tasks completed without overloading the individual while trying to keep the project on schedule. There are several ways the project manager can do this. You might delay the start of a task to match the availability of a key team member. Or you might adjust the resource assignments so that more tasks are given to team members who are under allocated. Perhaps you can split some tasks so that the team member with the pertinent knowledge or skill performs the critical part of the task and the noncritical part of the task is given to a less skilled team member. All of these methods are forms of resource leveling. Generally speaking, resource leveling of over-allocated team members will extend the project end date. If youre under a date constraint, youll have to go back and rework the schedule after assigning resources to keep the project on track with the committed completion date. This might include moving key resources off of noncritical tasks and assigning them to critical path tasks or adjusting assignments as previously mentioned. Reallocating those team members with slack time to critical path tasks to keep them on schedule is another option.  INCLUDEPICTURE "http://www.books24x7.com/book/id_3964/_.gif" \* MERGEFORMATINET Real World ScenarioSunny Surgeons, Inc. Kate Newman is a project manager for Sunny Surgeons, Inc. Sunny Surgeons is a software company that produces software for handheld display devices for the medical profession. The software allows surgeons to keep notes regarding patients, upcoming surgeries, and ideas about new medicines and techniques to research. Kates latest project is to write an enhanced version of the patient-tracking program with system integration capabilities to a well-known desktop software product used by the medical industry. There has been some recent turnover in the programming department. Fortunately, Stephen, the senior programmer who led the development effort on the original version of the patient tracker, still works for Sunny. His expertise with handheld technologies as well as his knowledge of the desktop software product make him an invaluable resource for this project. Kate discovered a problem during the development of the project schedule. Stephen is over allocated for three key activities. Kate decides to see what his take is on the situation before deciding what to do. Stephen, the eternal optimist programmer who loves his job and does all but sleep in his office at night, says he can easily complete all the activities and that Kate shouldnt give it a second thought. He also suggests to Kate that Karen Wong, a junior programmer on his team, worked on the last project with him and might be able to handle the noncritical path task on her own with a little direction from Stephen. Kate thinks better of the idea of over allocating her key project resource even if he does think he can do the entire thing single-handed. She decides to try some resource leveling to see what that turns up. Kate discovers that rearranging the order of activities along with assigning Karen to handle the noncritical path activity might be a possible solution. However, this scenario lengthens the project by a total of 8 days. Since Kate knows the primary constraint on this project is quality, shes fairly sure she can get buy-off from the project sponsor and stakeholders on the increased schedule date. She can also sell the resource-leveled schedule as a low-risk option as opposed to assigning Stephen to all the activities and keeping the project end date the same. Over allocating resources can cause burnout and stress-related illnesses, which will ultimately have a negative impact on the project schedule.  INCLUDEPICTURE "http://www.books24x7.com/book/id_3964/_.gif" \* MERGEFORMATINET Project Management Software Given the examples weve gone through on Schedule Development and resource leveling, you probably already have concluded how much project management software might help you with these processes. Project management software will automate the mathematical calculations and perform resource leveling functions for you. Obviously, you can then print the schedule thats been produced for final approval and ongoing updates. Its common practice to e-mail updated schedules with project notes so that stakeholders know what activities are completed and which ones remain to be done. Its beyond the scope of this book to go into all the various software programs available to project managers. Suffice it to say that project management software ranges from the very simple to the very complex. The level of sophistication and the types of project management techniques that youre involved with will determine which software product you should choose. Many project managers that I know have had great success with Microsoft Project software and use it exclusively. It contains a robust set of features and reporting tools that will serve most projects well. Dont forget that you are the project manager and your good judgment should never be usurped by the recommendation of a software product. Your finally tuned skills and experience will tell you if relationship issues between team members might cause bigger problems than what the resource leveling function indicates. Constraints and stakeholder expectations are difficult for a software package to factor in. Rely on your expertise when in doubt. If you dont have the experience yet to make knowledge-based decisions, seek out another project manager or a senior stakeholder, manager, or team member and ask them to confirm if youre on the right track. Project management software is a wonderful tool, but it is not a substitute for sound project management practices or experience. Producing the Schedule Development Outputs The Schedule Development process has four outputs: project schedule, supporting detail, schedule management plan, and resource requirements updates. The two primary outputs from this process that will carry forward throughout the rest of the project are the project schedule and the schedule management plan. Project Schedule The purpose of the Schedule Development process is to determine the start and finish dates for your project activities. One of the primary outputs of this process is the project schedule, which details this information as well as the resource assignments. The project schedule should be approved and signed off by stakeholders and functional managers. This assures you that they have read the schedule, understand the dates and resource commitments, and will likely cooperate. Youll also need to obtain confirmation that resources will be available as outlined in the schedule when youre working in a functional organization. The schedule cannot be finalized until you receive approval and commitment for the resource assignments outlined in the schedule. Approval and finalization of the schedule should be completed prior to the end of the Project Plan Development process. Once the schedule is approved, it will become your baseline for the remainder of the project. Project progress and task completion will be monitored and tracked against this original plan to determine if the project is on course as planned. The schedule can be displayed in a variety of ways, some of which are variations on what weve already seen. Network diagrams, like the ones we talked about in  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=280" \l "280" \t "_parent" Chapter 5, will work as schedule diagrams when you add the start and finish dates to each activity. These diagrams usually show the activity dependencies and critical path.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=555175814" \l "figure.DFDCA836-95A7-4611-8CE5-6AF6E58BAFAFC175720B-D8EB-423D-B9A6-BC518538C1DD#figure.DFDCA836-95A7-4611-8CE5-6AF6E58BAFAFC175720B-D8EB-423D-B9A6-BC518538C1DD" Figure 7.2 shows a sample portion of a network diagram highlighting our programming activities.  HYPERLINK "javascript:PopImage('IMG_32','http://images.books24x7.com/bookimages/id_3964/f0702_0.jpg','649','373')" \t "_self"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/f0702.jpg" \* MERGEFORMATINET  Figure 7.2: Network diagram with activity dates Gantt charts are easy to read and commonly used to display schedule activities. Depending on the software youre using to produce the Gantt chart, it might also show activity sequences, activity start and end dates, resource assignments, activity dependencies, and the critical path.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=555175814" \l "figure.5039192F-F393-4AAA-AC20-2EC5CBC5F0A4C175720B-D8EB-423D-B9A6-BC518538C1DD#figure.5039192F-F393-4AAA-AC20-2EC5CBC5F0A4C175720B-D8EB-423D-B9A6-BC518538C1DD" Figure 7.3 is a simple example that plots various activities against time. These activities do not relate to the activities in the tables or other figures shown so far.  HYPERLINK "javascript:PopImage('IMG_33','http://images.books24x7.com/bookimages/id_3964/f0703_0.jpg','590','268')" \t "_self"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/f0703.jpg" \* MERGEFORMATINET  Figure 7.3: Gantt chart Milestone charts are another way to depict schedule information. Milestones mark the completion of major deliverables or some other key event in the project. For example, approval and sign-off on project deliverables might be considered a milestone. Other examples might be completion of a prototype, system testing, contract approval, and so on. Milestone charts might show the key events and their start or completion dates in a bar chart form similar to a Gantt chart. Or they can be written in a simple table format with milestones listed in the rows and expected schedule dates in one column and actual completion dates in another. As the milestones are met, the actual date column is filled in. This information can be included with the project status reports. MilestoneScheduled DateActual DateSign off on deliverables4/124/12Sign off on hardware test4/224/25Programming completed6/06Testing completed6/28Acceptance and sign-off7/10Project closeout7/10Time-scaled network diagrams are rarely used. They combine the network diagrams with the bar chart format to display schedule information. Supporting Detail The minimum amount of information in the supporting detail output is the project constraints and assumptions. Other information that should be documented but doesnt necessarily fit into the other categories would get documented here. Always err on the side of too much documentation, rather than not enough. You will have to be the judge of what other information to include here as it will depend on the nature of the project. The Guide to the PMBOK suggests that you might include resource histograms. There is an example resource histogram in  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=280" \l "280" \t "_parent" Chapter 5 if you need to review. Resource histograms typically display hours needed on one axis and period of time (months, weeks, days, years) on the other. You might also include alternative schedules or schedule reserves in this section. Schedule Management Plan The schedule management plan should be published and distributed along with your other project Planning documents. Like other management plan outputs, the schedule management plan describes how schedule changes will be managed and is an important part of your overall project plan. Resource Requirements Updates Resource requirements are an output of the Resource Planning process. As a result of scheduling activities and leveling resources, you may have to make adjustments to the resource requirements document. As Ive noted during some of the other Planning processes, project planning and project management are an iterative process. Rarely is anything cast in cement. You will continue to revisit processes throughout the project to refine and adjust. Eventually, processes do get put to bed. You wouldnt want to come back to the Planning process at the conclusion of the project, for example, but keep in mind that the Planning, Executing, and Controlling process groups are iterative, and its not unusual to have to revise processes within these phases as you progress on the project. In practice, Activity Definition, Activity Sequencing, Activity Duration Estimating, and Schedule Development are easily completed at the same time with the aid of good project management software. Gantt charts, critical path, PERT charts, resource allocation, activity dependencies, what-if analysis, and various reports are easily produced after plugging in your scheduling information to most project management software tools. Regardless of your methods, be certain to obtain sign-off of the project schedule and provide your stakeholders and project sponsor with regular updates. And keep your schedule handythere will likely be changes and modifications as you go. Establishing the Cost Budget Baseline Our next step is to determine the cost budget baseline. The budget will be used as a plan for allocating costs and resources to project activities. The Schedule Development and Cost Estimating processes must be completed prior to working on Cost Budgeting as their outputs become the inputs to this process. The inputs for Cost Budgeting are cost estimates, WBS, risk management plan, and project schedule. The same tools and techniques we discussed for the Cost Estimating process in  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=280" \l "280" \t "_parent" Chapter 5 are used in the Cost Budgeting process. A quick reminder here of those tools and techniques wouldnt hurt: Analogous estimatingThis a top-down technique that uses historical information to determine estimates and is a form of expert judgment. Parametric modelingThis is a mathematical model used to estimate project costs. Bottom-up estimatingThis involves estimating the individual costs of each activity and then rolling them up to come up with a total project cost. Computerized toolsThese are used to perform the above estimating techniques automatically. The Cost Budgeting process assigns cost estimates to activities and is used to measure the variance and performance of the project throughout the remaining process groups. Thus, it serves as a baseline for cost measurements as the cost baseline is now the expected cost for the project. Remember that costs are tied to the financial system through the chart of accounts, or code of accounts, and are assigned to project activities at the work package level of the WBS. The cost baseline can be displayed graphically with time increments on one axis against dollars expended on the other as shown in  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=175516981" \l "figure.948D3848-B855-426E-8379-824E3D2616BFC175720B-D8EB-423D-B9A6-BC518538C1DD#figure.948D3848-B855-426E-8379-824E3D2616BFC175720B-D8EB-423D-B9A6-BC518538C1DD" Figure 7.4. The costs shown on this graph are cumulative costs, meaning that what we spent this period is added to what was spent last period and then charted. Many variations of this graph exist showing dollars budgeted against dollars expended to date and so on. Cost budgets can be displayed using this type of graph as well by plotting the sum of the estimated costs excepted per period.  HYPERLINK "javascript:PopImage('IMG_34','http://images.books24x7.com/bookimages/id_3964/f0704_0.jpg','602','268')" \t "_self"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/f0704.jpg" \* MERGEFORMATINET  Figure 7.4: Cost baseline For the exam, remember that cost baselines are displayed as an S-curve. The reason for this is that project spending starts out slowly and gradually increases over the projects life until it reaches a peak, then tapers off again as the project wraps up. Large projects are difficult to graph in this manner, as the timescale isnt wide enough to accurately show fluctuations in spending. There are other methods that more accurately graph costs, which well look at in the Cost Control process. The budget should contain all the costs for all of the expected work on the project. You would have identified most of these costs in the Cost Estimating process. Schedule Development might have uncovered additional activities that need to be added to the budget as well. The budget should also contain appropriations for risk response. We covered several categories and tools of Risk Response Planning in  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=344" \l "344" \t "_parent" Chapter 6 including avoidance, mitigation, insurance, and contingency plans. Some of the budget should be allocated to each of these techniques that you identified in your risk management plan. Additionally, youll want to set aside money for reserves. This is for the unforeseen, unplanned risks that may occur. Even with all of the time and effort we spend on planning, unexpected things do crop up. Better to have the money set aside and not need it than to need it and not have it. The cost baseline is the only output of the Cost Budgeting process. Well revisit the cost baseline when we talk about the Cost Control process and examine different ways to measure costs. Developing the Project Plan Weve finally made it to Project Plan Development. All the work weve done up to this point culminates in this final Planning process. Project Plan Development takes the outputs from all the other Planning processes and brings them together in a concise, logical format. This might end up being one main document with reference to other pertinent documents, or several documents organized in a logical fashion. The project plan, which is an output of this process, is used throughout the Executing and Controlling processes for decision making and guidance based on the original plan. Project Plan Development has five inputs that weve seen before. They are other planning outputs, historical information, organizational policies, constraints, and assumptions. The Guide to the PMBOK points out that organizational policies should be consulted when developing your project plan. Some policies might include things like quality management, personnel administration, and financial controls according to the Guide to the PMBOK. Tools and Techniques The tools and techniques of this process are all new. They are project planning methodology, stakeholder skills and knowledge, project management information system (PMIS), and earned value management (EVM). Well describe each below. Project Planning Methodology Weve been explaining and employing project planning methodology since the beginning of the first chapter. This is simply a formal, structured technique that the project manager uses to help develop the project plan. It might involve using what the Guide to the PMBOK calls hard tools like Microsoft Project software, or soft tools like paper templates or project meetings. Some organizations have project management offices with standardized forms and templates that project managers can use to facilitate the Planning process. Keep in mind that Monte Carlo Analysis can be used during this process as well. Since Planning is such an iterative process, Monte Carlo comes in handy when youre looking at schedule risks, project durations, and the like. Stakeholder Skills and Knowledge Yes, stakeholders have skills and knowledge that might be helpful to the project manager during project Planning. Believe it or not, and Im positive you are not one of these types, there are project managers who think stakeholders have no business helping with any aspect of the project Planning, Executing, or Controlling process groups. Im not certain how you would end up with a successful project (as defined by meeting or exceeding stakeholder expectations) when stakeholders have not been included in the project process groups. Dont let this happen to you. As the project manager, one of your most important jobs is to create an open, communicative atmosphere so that stakeholders are able to contribute to the process. Its important that stakeholders participate in the project Planning processes and sign off on the final project plan. This assures you that stakeholders agree to, or at least know, the details regarding project activities, duration, activity costs, risks, and budgets, and how each of these things impacts the project scope and their own departments and resources. Stakeholders usually have less of a say in how the project is executed and controlled as the objectives and scope are firmly defined by then. This makes their cooperation and participation in the Planning processes even more important. Do everything you can to ensure stakeholders take the project seriously and actively solicit their input during Project Plan Development. Project Management Information System (PMIS) This is an information system that stores all the information related to your project. It allows you to gather information, incorporate it with other project information, and produce reports for distribution to stakeholders and team members. The information system is used from the beginning of the project through closeout. Keep in mind that the information system could be a software product or a combination of software and a manual system. As the project manager, you need to be certain that youre managing the project, and not just managing the project management information system. Its easy to get caught up in the software features and in the processes and planning logic and not pay attention to the project itself. Be certain that the project is where your attention is and not just the software or information system youre using to manage the software. Earned Value Management (EVM) Earned value management (EVM) is concerned with measuring and reporting on the progress of the project. It incorporates the project schedule, scope, and resources as a whole to determine if variances exist in the project. Earned value analysis is a technique used to calculate performance measures that well explore in more detail in  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=560" \l "560" \t "_parent" Chapter 9. Project Plan Development Outputs This brings us to the outputs of the Project Plan Development process, which are the project plan and supporting detail. Lets talk a little bit more about each of these. Project Plan The project plan will be used as the guideline throughout the project Executing and project Controlling process groups. Youll use the project plan to track and measure project performance and to make future project decisions. The project plan encompasses everything weve talked about up to now and is represented in a formal document, or collection of documents. This document will contain the project scope statement, deliverables, assumptions, risks, WBS, milestones, activity schedule, resources, and more. It becomes the baseline youll use to measure and track progress against. Its also used to control the components that tend to stray from the original plan and get them back in line. The project plan will be used as a communication and information tool for stakeholders, team members, and the management team. They will use the project plan to review and gauge progress as well. The Guide to the PMBOK makes a point of the difference between the project performance measurement baselines and the project plan. The project plan is the document, or assortment of documents, that constitutes what the project is, what the project will deliver, and how all the processes will be managed. There will be changes to the project plan throughout the remaining process groups, and the document, or documents, will need to be updated to reflect those changes. The performance measurement baselines are the management controls in place that should change only infrequently. Examples of the performance measurement baselines weve looked at so far are Cost Budgeting baselines and schedule baselines. The project plan itself also becomes a baseline. If changes in scope or schedule do occur after Planning is complete, theres a formalized process that you should go through to implement the changes, which well cover in a later chapter. Supporting Detail Weve seen this output before. The supporting detail for the Project Plan Development process will include any information not previously included in the other project Planning processes. Technical information such as design specifications might be included here as well. Back in  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=344" \l "344" \t "_parent" Chapter 6, we talked about standards and policies. If theyre applicable to the project, you could include the standards here or reference where they might be found. Again were back to our project management mantra, Document, document, document. If you cannot find any other logical place to put information that you know should be included with the project, put it in supporting detail. Last but not least, dont forget to include assumptions and constraints that were discovered during this phase of the Planning process. Dont forget that sign-off is an important part of this process. Your last step in the Planning process group will be to obtain sign-off of the project plan from stakeholders, the sponsor, and the management team.  INCLUDEPICTURE "http://www.books24x7.com/book/id_3964/_.gif" \* MERGEFORMATINET Project Case Study: New Kitchen Heaven Retail Store Youve spent a couple of days working on the project schedule in Microsoft Project 2000, clarifying tasks and activities with Jake, Ricardo, and Jill. You decide that a Gantt chart will work excellently for reporting status for this project. A portion of your first draft of the Gantt chart shows the following at the end of the project:  HYPERLINK "javascript:PopImage('IMG_35','http://images.books24x7.com/bookimages/id_3964/g0701r_0.jpg','1000','686')" \t "_self"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/g0701r.jpg" \* MERGEFORMATINET  The detail behind the Gantt chart snapshot is shown below. This is a limited amount of detail for example purposes.  HYPERLINK "javascript:PopImage('IMG_36','http://images.books24x7.com/bookimages/id_3964/g0702r_0.jpg','954','689')" \t "_self"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/g0702r.jpg" \* MERGEFORMATINET  You stare intensely at the problem you see on the screen. The Grand Opening task (number 18) is scheduled to occur 2 weeks later than when you need it! Grand opening must happen February 1 and 2, not February 15 and 16 as the schedule shows. You trace the problem back and see that Grand Opening depends on Train Store Personnel, which itself depends on several other tasks including Hire Store Personnel, Install and Test Hardware, and Build-out. Digging deeper, build-out cant begin until the Ethernet cable is run throughout the building. Ricardo already set up the time with the contractor to run the cable September 17. This date cannot move, which means build-out cannot start any sooner than September 19. You pick up the phone and dial Jakes number. Jake, you say into the receiver. Im working on the project schedule, and I have some issues with the Gomez activity. Shoot, Jake says. Gomez Construction cant start work until the Ethernet cable is run. Ive already confirmed with Ricardo that there is no negotiation on this. Ricardo is hiring a contractor for this activity, and the earliest they can start is September 17. It takes them 2 days to run the cable, which puts the start date for build-out at September 19. Right, Jake replies. Thats just about when we thought. Whats the problem? Jill wants to have the build-out finished prior to hiring the store personnel. During the last store opening, those activities overlapped, and she said it was unmanageable. She wants to hire folks and have them stock the shelves in preparation for store opening but doesnt want contractors in there while theyre doing it. A September 19 start date for Gomez puts us at a finish date of February 12, which is too late regardless of the problem with Jill. Hence, my question, is 120 days to finish a build-out a firm estimate? AlwaysIve got this down to a science. Gomez has worked with me on enough of these build-outs that we can come within just a couple of days of this estimate either way, Jake says. You pick up your schedule detail and continue. Ive scheduled Gomezs resource calendar as you told me originally. Gomez doesnt work Sundays and neither do we. Their holidays are Labor Day, a couple of days at Thanksgiving, Christmas and New Years, but this puts us too far out on the schedule. I know Dirk wont go for a later date; hes firm on the February 1 opening. I cant change the 120 days. Sounds like you have a problem. I need to crash the schedule, you say. What would the chances be of Gomez agreeing to split the build-out tasks? We could hire a second contractor to come in and work alongside Gomezs crew to speed up this task. That would shorten the duration to 100 days, which means we could meet the February 1 date. Wont happen. I know Gomez. Theyre a big outfit and have all their own crews. We typically work with them exclusively. If I brought another contractor into the picture, I might have a hard time negotiating any kind of favors with them later if we get into a bind. Alright, you say. How about this? Im making some changes to the resource calendar while were talking. What if we authorize Gomezs crew to work six 10-hour days, which still leaves them with Sundays off, and we ask them to work Labor Day and take only one day at each of the other holidays instead of two? The detail showing these changes is shown below.  HYPERLINK "javascript:PopImage('IMG_37','http://images.books24x7.com/bookimages/id_3964/g0703r_0.jpg','962','685')" \t "_self"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/g0703r.jpg" \* MERGEFORMATINET   HYPERLINK "javascript:PopImage('IMG_38','http://images.books24x7.com/bookimages/id_3964/g0704r_0.jpg','898','686')" \t "_self"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/g0704r.jpg" \* MERGEFORMATINET  I think Gomez would go for that. You realize its going to cost you? Project management is all about trade-offs. We cant move the start date, so chances are the budget might take a hit to accommodate schedule changes or risk. Fortunately, Im just now wrapping up the final cost budget baseline, so if you can get me the increased cost from Gomez soon, Id appreciate it. This change will keep us on track and resolve Jills issues too. I dont think Gomezs crew will mind the overtime during the holiday season. Everyone can use a little extra cash at that time of year, it seems. Ill have the figures for you in a day or two. Project Case Study Checklist Developing project schedule Calendars Lead and lag time Critical path Duration compression Crashing Utilizing project management software Producing project schedule Milestones Gantt chart Resource leveling Cost baseline Finalized project plan Summary Great job, youve made it through the entire Planning process. We covered three processes in this chapter: Schedule Development, Cost Budgeting, and Project Plan Development. Schedule Development is the process in which you assign beginning and ending dates to tasks and determine their duration. You can use several methods to do this including CPM, GERT, and PERT. The CPM calculates early start, early finish, late start, and late finish dates. It also determines float time. All tasks with zero float are critical path tasks. The critical path is the longest path in the project. GERT allows for conditional branching and looping; CPM and PERT do not. PERT calculates a weighted average estimate for each activity by using the optimistic, pessimistic, and most likely times and then determines variances, or standard deviations, to come up with a total project duration within a given confidence range. 68.26 percent of the time, work will finish within plus or minus one standard deviation. 95.44 percent of the time, work will finish within plus or minus two standard deviations. Schedules sometimes need to be compressed to meet promised dates or to shorten the schedule times. Crashing looks at cost and schedule trade-offs. Adding resources to critical path tasks and limiting or reducing the project requirements or scope are ways to crash the schedule. Fast tracking involves beginning two tasks that were originally scheduled to start one after the other at the same time. Fast tracking increases project risk. Monte Carlo Analysis can be used in the Schedule Development process to determine project duration. Resource leveling attempts to smooth out the schedule and properly allocate resources to critical path tasks. This may require updates to the resource management plan. The project schedule details the activities in graphical form through the use of network diagrams with dates, Gantt charts, milestone charts, or time-scaled network diagrams. The schedule management plan details how the project schedule will be managed and how changes will be incorporated into the project schedule. The Cost Budgeting baseline will be used throughout the project to measure project expenditures, variance, and project performance. The cost baseline is graphically displayed as an S-curve. Project Plan Development is the last process in the Planning process group. The project plan is used as a guideline throughout the project Executing and Controlling processes to help make future project decisions. Its also used to measure and track project performance. The project plan might be one document or several documents stored together in an organized, logical format. Exam Essentials Be able to calculate the critical path.The critical path is the activities whose durations add up to the longest full path utilizing the forward pass, backward pass, and float calculations. Be able to define a critical path task.A critical path task is a project activity with zero float. Be able to describe and calculate PERT duration estimates.This is a weighted average technique that uses three estimates: optimistic, pessimistic, and most likely. The formula is as follows: [optimistic + pessimistic + (4 most likely)] 6. Be able to name the duration compression techniques.They are crashing and fast tracking. Be able to describe the cost baseline.This is the expected cost of the project and is used to measure performance. Its displayed as an S-curve. Key Terms Before you take the exam, be certain you are familiar with the following terms: cost baselineproject planCost BudgetingProject Plan Developmentcritical path (CP)project scheduleCritical Path Method (CPM)resource levelingfloat timeSchedule Development milestonesslack time Program Evaluation and Review Technique (PERT) INCLUDEPICTURE "http://www.books24x7.com/images/_.gif" \* MERGEFORMATINET Review Questions 1. The project schedule is used to determine all of the following except: Cost estimates Activity start dates Float times Activity end dates HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=474227249" \l "answer.nr-qandaentry.75EDB25E-C6B1-44A7-A8CF-0B2269C2AB8AC175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.75EDB25E-C6B1-44A7-A8CF-0B2269C2AB8AC175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 2. You are a project manager for Picture Shades, Inc. They manufacture window shades for hotel chains that have replicas of Renaissance-era paintings on the inside of the shades. Picture Shades is taking their product to the home market, and youre managing the new project. They will offer their products at retail stores as well as on their website. Youre developing the project schedule for this undertaking and have determined the critical path. Which of the following is true? You calculated the most likely start date and most likely finish dates, float time, and weighted average estimates. You calculated the activity dependency, and the optimistic and pessimistic activity duration estimates. You calculated the early and late start dates, early and late finish dates, and float times for all activities. You calculated the optimistic, pessimistic, and most likely duration times and the float times for all activities.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=474227249" \l "answer.nr-qandaentry.3EB39A25-68C3-4B7C-97D0-B0FF56FF8744C175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.3EB39A25-68C3-4B7C-97D0-B0FF56FF8744C175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 3. You are a project manager for Picture Shades, Inc. They manufacture window shades for hotel chains that have replicas of Renaissance-era paintings on the inside of the shades. Picture Shades is taking their product to the home market, and youre managing the new project. They will offer their products at retail stores as well as on their website. Youre developing the project schedule for this undertaking. Looking at the graph below, which path is the critical path?  HYPERLINK "javascript:PopImage('IMG_39','http://images.books24x7.com/bookimages/id_3964/g07q03_0.jpg','400','261')" \t "_self"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/g07q03.jpg" \* MERGEFORMATINET  A-B-C-E-H A-D-E-H A-F-G-H A-F-G-E-H HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=474227249" \l "answer.nr-qandaentry.7BA89E46-BB10-441E-A9FA-0DF1A6EEE7A4C175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.7BA89E46-BB10-441E-A9FA-0DF1A6EEE7A4C175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 4. Use the example graphic shown below to answer this question. If the duration of activity B was changed to 10 days and the duration of acti-vity G was changed to 9 days, which of the following is the critical path?  HYPERLINK "javascript:PopImage('IMG_40','http://images.books24x7.com/bookimages/id_3964/g07q04_0.jpg','400','261')" \t "_self"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/g07q04.jpg" \* MERGEFORMATINET  A-B-C-E-H A-D-E-H A-F-G-H A-F-G-E-H  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=474227249" \l "answer.nr-qandaentry.1C7AE99D-315D-43E4-9271-28A390CA8D7AC175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.1C7AE99D-315D-43E4-9271-28A390CA8D7AC175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 5. Which of the following is true regarding the critical path? It should never be compressed. It allows for looping and branching. The critical path technique is the same as PERT. Its the duration of all tasks with zero float.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=474227249" \l "answer.nr-qandaentry.2741C4CC-182D-4243-9BA9-8EC310CFF024C175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.2741C4CC-182D-4243-9BA9-8EC310CFF024C175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 6. All of the following are tools and techniques of the Schedule Development process except? CPM RAM GERT PERT  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=474227249" \l "answer.nr-qandaentry.7E60D12D-5215-4899-A203-1D2F3D011627C175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.7E60D12D-5215-4899-A203-1D2F3D011627C175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 7. You are a project manager for a new software development project. You have a few activities that require specialized testing. The testing might need to be repeated more than once. Which of the following do you choose? The Graphical Evaluation and Review Technique because it allows for conditional branching and looping for the testing activity The Critical Path Method because it allows for float time to be calculated for the testing activity The Program Evaluation and Review Technique because it allows for conditional branching and looping for the testing activity The Program Evaluation and Review Technique because it allows for a weighted average distribution, which will even out the time needed for the testing activity HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=474227249" \l "answer.nr-qandaentry.861721E4-1799-42CC-94E7-51CA90696B05C175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.861721E4-1799-42CC-94E7-51CA90696B05C175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 8. You are a project manager for Move It Now trucking company. Your company specializes in moving household goods across the city or across the country. Your project involves upgrading the nationwide computer network for the company. Your lead engineer has given you the following estimates for a critical path activity: 60 days most likely, 72 days pessimistic, 48 days optimistic. What is the expected value, or weighted average? 54 66 60 30  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=474227249" \l "answer.nr-qandaentry.378402C4-EDCF-42E2-B429-9B18354F3919C175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.378402C4-EDCF-42E2-B429-9B18354F3919C175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 9. You are a project manager for Move It Now trucking company. Your company specializes in moving household goods across the city or across the country. Your project involves upgrading the nationwide computer network for the company. Your lead engineer has given you the following estimates for a critical path activity: 60 days most likely, 72 days pessimistic, 48 days optimistic. What is the standard deviation? 22 20 2 4 HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=474227249" \l "answer.nr-qandaentry.594E2CCB-28B3-460F-B53C-69F1D9CE47D6C175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.594E2CCB-28B3-460F-B53C-69F1D9CE47D6C175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 10. If you know expected value is 500 and the standard deviation is 12, you can say with approximately a 95 percent confidence rating which of the following? The activity will take between 488 and 512 days. The activity will take between 464 and 536 days. The activity will take between 494 and 506 days. The activity will take between 476 and 524 days.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=474227249" \l "answer.nr-qandaentry.F5725F9F-FEC8-4514-A919-61913ADBDD5CC175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.F5725F9F-FEC8-4514-A919-61913ADBDD5CC175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 11. If your expected value is 110 and the standard deviation is 12, which of the following is true? There is approximately a 99 percent chance of completing this activity between 86 and 134 days. There is approximately a 68 percent chance of completing this activity between 98 and 122 days. There is approximately a 95 percent chance of completing this activity between 98 and 122 days. There is approximately a 75 percent chance of completing this activity between 86 and 134 days.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=474227249" \l "answer.nr-qandaentry.A0C0FD91-9101-49A1-A0B4-45C473316487C175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.A0C0FD91-9101-49A1-A0B4-45C473316487C175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 12. You are the project manager working on a research project for a new drug treatment. Your preliminary project schedule runs past the due date for a federal grant application. The manager of the R&D department has agreed to release two resources to work on your project in order to meet the federal grant application date. This is an example of: Crashing Fast tracking Resource leveling Adjusting the resource calendar  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=474227249" \l "answer.nr-qandaentry.487A4EE6-8648-418F-9A0A-657CFB67190DC175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.487A4EE6-8648-418F-9A0A-657CFB67190DC175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 13. You are the project manager working on a research project for a new drug treatment. Your preliminary project schedule runs past the due date for a federal grant application. You adjust the schedule and find that two activities previously scheduled to start sequentially can be started at the same time. This is an example of: Crashing Fast tracking Resource leveling Adjusting the resource calendar HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=474227249" \l "answer.nr-qandaentry.FD434EC5-E7B5-4436-8CE8-9AC3A48204CCC175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.FD434EC5-E7B5-4436-8CE8-9AC3A48204CCC175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 14. You are the project manager for Rivera Gourmet Adventure Vacations. Rivera combines the wonderful tastes of great gourmet food with outdoor adventure activities. Your project involves installing a new human resources software system. Jason, the database analyst working on this project, is over allocated. Which of the following is true? You should use resource requirements updates to determine availability and smooth out resource over allocation. You should use crashing to resource level the critical path tasks. You should use resource leveling heuristics to smooth out resource assignments. You should use fast tracking to resource level the critical path tasks.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=474227249" \l "answer.nr-qandaentry.6EEF9981-B954-4246-850A-32576D71F428C175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.6EEF9981-B954-4246-850A-32576D71F428C175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 15. What is one of the problems with project management software? The project manager manages the software instead of the project. Project duration calculations are sometimes approximate. You cannot override the project management software decisions regarding schedules. Its expensive and difficult to use.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=474227249" \l "answer.nr-qandaentry.8E753CD8-F469-4563-824F-894C681CAD27C175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.8E753CD8-F469-4563-824F-894C681CAD27C175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 16. Obtaining formal project plan approval and sign-off is important for all of the following reasons except: Stakeholders are able to recommend a project Planning methodology to follow throughout the remaining process groups. Stakeholders are aware of the project details, which makes them more likely to participate in future project decisions. Stakeholders will be more likely to cooperate. Stakeholders are aware of the specific details regarding project schedules, budgets, and risks.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=474227249" \l "answer.nr-qandaentry.797EFA8C-7CFD-45B9-B5C6-36680B0B8428C175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.797EFA8C-7CFD-45B9-B5C6-36680B0B8428C175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 17. Which of the following are the tools and techniques of the Cost Budgeting process? Project management information system, analogous estimating, bottom-up estimating, mathematical analysis Analogous estimating, bottom-up estimating, mathematical analy-sis, computerized tools Project management software, analogous estimating, bottom-up estimating, parametric modeling Analogous estimating, bottom-up estimating, parametric modeling, computerized tools HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=474227249" \l "answer.nr-qandaentry.945F97D7-BC38-48C6-A521-65E3BF420819C175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.945F97D7-BC38-48C6-A521-65E3BF420819C175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 18. You are the project manager for a custom home-building construction company. You are working on the model home project for the upcoming Show Homes Tour. The model home includes Internet connections in every room and talking appliances. You are working on the cost budget for this project. Which of the following is true? This process assigns cost estimates to project activities including risks and contingency plans. The cost baseline will be used to measure variances and future project performance. This process assigns cost estimates for expected future period operating costs. The cost baseline is the expected cost for the project.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=474227249" \l "answer.nr-qandaentry.8B4B4F91-5D9C-4B50-9FDC-47C868831ADFC175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.8B4B4F91-5D9C-4B50-9FDC-47C868831ADFC175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 19. Which of the following is displayed as an S-curve? Gantt Cost baseline Critical path PERT  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=474227249" \l "answer.nr-qandaentry.EA86DD36-2DBC-4E6B-8A9B-BCA19B022129C175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.EA86DD36-2DBC-4E6B-8A9B-BCA19B022129C175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 20. All of the following are true regarding the project plan except: Some of its inputs are outputs from other Planning processes. Its used to guide the project Executing and Controlling processes and is the baseline used to measure project performance. It consists of one document that should be formally approved and signed by stakeholders. It contains things like the WBS, project schedule, and resource assignments.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=474227249" \l "answer.nr-qandaentry.0FC59218-AEA0-4CD2-9920-6BD7B3860B42C175720B-D8EB-423D-B9A6-BC518538C1DD#answer.nr-qandaentry.0FC59218-AEA0-4CD2-9920-6BD7B3860B42C175720B-D8EB-423D-B9A6-BC518538C1DD"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET Answers  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=474227249" \l "nr-qandaentry.75EDB25E-C6B1-44A7-A8CF-0B2269C2AB8AC175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.75EDB25E-C6B1-44A7-A8CF-0B2269C2AB8AC175720B-D8EB-423D-B9A6-BC518538C1DD" 1.A The project schedule determines start and ending dates of activities, determines float times, generally shows resource assignments, and details the activity sequences and durations.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=474227249" \l "nr-qandaentry.3EB39A25-68C3-4B7C-97D0-B0FF56FF8744C175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.3EB39A25-68C3-4B7C-97D0-B0FF56FF8744C175720B-D8EB-423D-B9A6-BC518538C1DD" 2.C The CPM calculates a single early and late start date and a single early and late finish date for each activity. Once these dates are known, float time is calculated for each activity to determine the critical path. The other answers contain elements of PERT calculations. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=474227249" \l "nr-qandaentry.7BA89E46-BB10-441E-A9FA-0DF1A6EEE7A4C175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.7BA89E46-BB10-441E-A9FA-0DF1A6EEE7A4C175720B-D8EB-423D-B9A6-BC518538C1DD" 3.B The only information you have for this example is activity duration, therefore the critical path is the path with the longest duration. Path A-D-E-H with a duration of 34 days is the critical path. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=474227249" \l "nr-qandaentry.1C7AE99D-315D-43E4-9271-28A390CA8D7AC175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.1C7AE99D-315D-43E4-9271-28A390CA8D7AC175720B-D8EB-423D-B9A6-BC518538C1DD" 4.D The only information you have for this example is activity duration, so you must calculate the critical path based on the durations given. The duration of A-B-C-E-H increased by 3 days for a total of 35 days. The duration of A-F-G-H and A-F-G-E-H each increased by 3 days. A-F-G-E-H totals 36 days and becomes the new critical path. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=474227249" \l "nr-qandaentry.2741C4CC-182D-4243-9BA9-8EC310CFF024C175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.2741C4CC-182D-4243-9BA9-8EC310CFF024C175720B-D8EB-423D-B9A6-BC518538C1DD" 5.D The critical path is calculated by adding together the durations of all the tasks with zero float. The critical path can be compressed using crashing techniques. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=474227249" \l "nr-qandaentry.7E60D12D-5215-4899-A203-1D2F3D011627C175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.7E60D12D-5215-4899-A203-1D2F3D011627C175720B-D8EB-423D-B9A6-BC518538C1DD" 6.B A RAM is a Responsibility Assignment Matrix used in the Organizational Planning process. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=474227249" \l "nr-qandaentry.861721E4-1799-42CC-94E7-51CA90696B05C175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.861721E4-1799-42CC-94E7-51CA90696B05C175720B-D8EB-423D-B9A6-BC518538C1DD" 7.A GERT is the only Schedule Development tool that allows for conditional branching and looping. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=474227249" \l "nr-qandaentry.378402C4-EDCF-42E2-B429-9B18354F3919C175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.378402C4-EDCF-42E2-B429-9B18354F3919C175720B-D8EB-423D-B9A6-BC518538C1DD" 8.C The calculation for PERT is the sum of optimistic time plus pessimistic time plus four times the most likely time divided by 6. The calculation for this example is as follows: [48 + 72 + (4 60)] 6 = 60. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=474227249" \l "nr-qandaentry.594E2CCB-28B3-460F-B53C-69F1D9CE47D6C175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.594E2CCB-28B3-460F-B53C-69F1D9CE47D6C175720B-D8EB-423D-B9A6-BC518538C1DD" 9.D The standard deviation is calculated by subtracting the optimistic time from the pessimistic time and dividing the result by 6. The calculation for this example looks as follows: (72 48) 6 = 4 HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=474227249" \l "nr-qandaentry.F5725F9F-FEC8-4514-A919-61913ADBDD5CC175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.F5725F9F-FEC8-4514-A919-61913ADBDD5CC175720B-D8EB-423D-B9A6-BC518538C1DD" 10.D There is a 95 percent probability that the work will finish within plus or minus two standard deviations. The expected value is 500, and the standard deviation times 2 is 24, so the activity will take between 476 and 524 days. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=474227249" \l "nr-qandaentry.A0C0FD91-9101-49A1-A0B4-45C473316487C175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.A0C0FD91-9101-49A1-A0B4-45C473316487C175720B-D8EB-423D-B9A6-BC518538C1DD" 11.B A 68 percent probability is calculated using plus or minus one standard deviation, a 95 percent probability uses plus or minus two standard deviations, and a 99 percent probability uses plus or minus three standard deviations. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=474227249" \l "nr-qandaentry.487A4EE6-8648-418F-9A0A-657CFB67190DC175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.487A4EE6-8648-418F-9A0A-657CFB67190DC175720B-D8EB-423D-B9A6-BC518538C1DD" 12.A Crashing the schedule includes things like adding resources to the critical path tasks or limiting project requirements. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=474227249" \l "nr-qandaentry.FD434EC5-E7B5-4436-8CE8-9AC3A48204CCC175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.FD434EC5-E7B5-4436-8CE8-9AC3A48204CCC175720B-D8EB-423D-B9A6-BC518538C1DD" 13.B Fast tracking is starting two tasks at the same time that were previously scheduled to start one after the other. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=474227249" \l "nr-qandaentry.6EEF9981-B954-4246-850A-32576D71F428C175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.6EEF9981-B954-4246-850A-32576D71F428C175720B-D8EB-423D-B9A6-BC518538C1DD" 14.C Resource leveling heuristics attempt to smooth out resource assignments by splitting tasks, assigning under-allocated team members to more tasks, or delaying the start of tasks to match team members availability. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=474227249" \l "nr-qandaentry.8E753CD8-F469-4563-824F-894C681CAD27C175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.8E753CD8-F469-4563-824F-894C681CAD27C175720B-D8EB-423D-B9A6-BC518538C1DD" 15.A Project management software is a very useful tool for the project manager, and it automates project scheduling allowing for what-if analysis and easy changes. But if you focus too much on the tool and ignore the project, the tool becomes a hindrance. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=474227249" \l "nr-qandaentry.797EFA8C-7CFD-45B9-B5C6-36680B0B8428C175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.797EFA8C-7CFD-45B9-B5C6-36680B0B8428C175720B-D8EB-423D-B9A6-BC518538C1DD" 16.A Stakeholders ordinarily will not have much say in the project Planning methodology used by the project manager. The methodology employed is usually determined by either the organization, the project office, or the project manager. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=474227249" \l "nr-qandaentry.945F97D7-BC38-48C6-A521-65E3BF420819C175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.945F97D7-BC38-48C6-A521-65E3BF420819C175720B-D8EB-423D-B9A6-BC518538C1DD" 17.D Cost Budgetings tools and techniques are the same tools and techniques of the Cost Estimating process: analogous estimating, parametric modeling, bottom-up estimating, and computerized tools. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=474227249" \l "nr-qandaentry.8B4B4F91-5D9C-4B50-9FDC-47C868831ADFC175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.8B4B4F91-5D9C-4B50-9FDC-47C868831ADFC175720B-D8EB-423D-B9A6-BC518538C1DD" 18.B Future period operating costs are considered ongoing costs and are not part of project costs.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=474227249" \l "nr-qandaentry.EA86DD36-2DBC-4E6B-8A9B-BCA19B022129C175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.EA86DD36-2DBC-4E6B-8A9B-BCA19B022129C175720B-D8EB-423D-B9A6-BC518538C1DD" 19.B The cost baseline is displayed as an S-curve because of the way project spending occurs. Spending begins slowly, picks up speed until the spending peak is reached, and then tapers off as the project winds down. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=474227249" \l "nr-qandaentry.0FC59218-AEA0-4CD2-9920-6BD7B3860B42C175720B-D8EB-423D-B9A6-BC518538C1DD#nr-qandaentry.0FC59218-AEA0-4CD2-9920-6BD7B3860B42C175720B-D8EB-423D-B9A6-BC518538C1DD" 20.C The project plan might be one document or a collection of documents organized in a logical format.  Chapter 8: Developing the Project Team PMP Exam Content from the Project ExecutionPerformance Domain Coveredin This Chapter: Commit Resources. Implement Resources. Manage Progress. Communicate Progress. Overview This chapter begins the project Executing process group. Well cover three processes in the project Executing group including Project Plan Execution, Team Development, and Information Distribution. Youll get a reprieve in this chapter as there is only one math equation you need to memorize. Project Plan Execution is the action process so to speak. This is where youll put the plans into action and begin working on the project activities. Execution also involves keeping the project in line with the original project plan and bringing wayward activities back into alignment. Several things happen during the Executing processes. The majority of the project budget will be spent during this process, and often the majority of the project time is expended here as well. The greatest conflicts youll see during the project Executing process are schedule conflicts. And, the product description will be finalized here and contain more detail than it did in the Planning process. Project Plan Execution is the only core process in the Executing process group. All the other processes well discuss are facilitating processes to Project Plan Execution. In other words, the facilitating processes assist you with executing the project plan. Well start out this chapter with the Project Plan Execution process and then discuss Team Development and communication processes. There are several exam questions on every process within the Executing process group. Youll find the majority of questions regard the Project Plan Execution process, the Team Development process, and the Contract Administration process, which well talk about in the  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=560" \l "560" \t "_parent" next chapter. Dont skip studying the other processes, however, as roughly a quarter of the exam questions concern the entire Executing process. Are you ready to dive into Executing? Lets go. Executing the Project Plan The purpose of the Project Plan Execution process is to carry out the project plan. This is where your project comes to life and the work of the project happens. Activities are clarified, and the work is authorized to begin. Resources are committed and assigned to activities, and the product or service of the project is created. One of the most difficult aspects of this process is coordinating and integrating all the elements of the project. The largest portion of the project budget will be spent in Project Plan Execution. Executing Inputs Project Plan Execution has five inputs: project plan, supporting detail, organizational policies, preventive action, and corrective action. We covered supporting detail earlier in this book, which included constraints and assumptions. There are a few new things to add to organizational policies, so well look at that one again along with the others. Project Plan The project plan is the output of the Planning process group, specifically the Project Plan Development process. The important thing to note here is that all the management plans we discussed during the Planning processsuch as the scope management plan, the schedule management plan, the resource management plan, and so on, plus the cost budgeting baseline and the schedule baselineare used throughout the Executing process to manage the project and keep the performance of the project on track with the project objectives. If you dont have a project plan, youll have no way of managing the process. Youll find that even with a plan, project scope has a way of changing. Stakeholders and others tend to sneak in a few of the oh, I didnt understand that before statements and hope that they slide right by you. With that signed, approved plan in your files, you are allowed to gently remind them that they read and agreed to the project plan and youre sticking to it. They can request a formal change, but thats another topic, which well get to shortly. Organizational Policies Its important for the project manager to understand organizational policies as they may impact Project Plan Execution. For example, the organization may have purchasing approval processes that must be followed. Perhaps orders for goods or services that exceed certain dollar amounts need different levels of approval. As the project manager, you need to be aware of policies like this so youre certain you can execute the project smoothly. Its very frustrating to find out after the fact that you should have followed a certain process or policy, and now because you didnt, youve got schedule delays or worse. You could consider using the sin now, ask forgiveness later technique in extreme emergencies, but you didnt hear that from me. By the way, thats not an authorized PMI technique. The project manager and the project team will be responsible for coordinating all the organizational interfaces for the project including technical, human resource, purchasing, finance, and so on. It will serve you well to understand the policies and politics involved in each of these areas in your organization. Preventive Action Preventive action involves anything that will reduce the potential impacts of risk events should they occur. Contingency plans and risk responses are examples of preventive action. These and other risk responses were described in the Risk Response Planning process in  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=344" \l "344" \t "_parent" Chapter 6. Corrective Action In my organization, a corrective action means an employee has big trouble coming. Fortunately, this isnt whats meant here. Corrective actions are taken to get the anticipated future project outcomes to align with the project plan. Maybe youve discovered one of your programmers is adding an unplanned feature to the software project because hes friends with the user. Youll have to redirect him to the activities assigned him originally to avoid schedule delays. Corrective actions are outputs of processes in the Controlling process group but serve as inputs to the Project Plan Execution process. For the exam, remember that the Executing and Controlling process results are inputs to each other. Well cover corrective action again in the chapters that discuss the Controlling process. Meetings and More As with the Project Plan Development process, almost everything weve done to date is utilized by the Project Plan Execution process. The primary output here is work results, meaning actually producing the product or service we set out to produce. Without having completed the prior processes, we wouldnt know what the work of the project should look like. Several tools and techniques are used to facilitate the work results. Well look at all of them, with the exception of project management information system, which weve covered previously. General Management Skills We covered some general management skills in an earlier chapter. Whats important to note here is that leadership, negotiation, and communications skills are especially useful during Project Plan Execution. You might recall that leadership is about imparting vision and rallying people around that vision. Leaders motivate and inspire and are concerned with strategic vision. Leaders understand the difference between power and politics. Power is the ability to get people to do what they wouldnt do ordinarily, or the ability to influence behavior. Politics impart pressure to conform regardless of whether the person agrees with the decision. One other thing to consider in this category is that youre going to monitor other departments that have assignments on the project and manage their progress. Again this implies that youll need general knowledge management skills to understand what the assignments entail and strong leadership skills to influence the departments to stay on schedule. Product Skills and Knowledge The Resource Planning process defined the skills that are required of project team members, and the Staff Acquisition process provided the resources for the project. Product skills and knowledge are also needed by the project team members to understand the product or service of the project. If your project is constructing a mass spectrometer and no one on your team knows what a mass spectrometer looks like, youve got a problem. Key team members should have knowledge, skills, and experience with the products of the project. Work Authorization System Work authorization systems clarify and initiate the work of each work package. This is a formal procedure that authorizes work to begin in the correct sequence and at the right time. Work authorization systems are usually written procedures defined by the organization. They might include e-mailbased or paper-based systems or even verbal instructions, which work well with smaller projects. Usually, work is authorized using a form that describes the task, the responsible party, anticipated start and end dates, special instructions, and whatever else is particular to the activity or project. Depending on the organizational structure, the work is assigned and authorized by either the project manager or the functional manager. Status Review Meetings Status review meetings are important functions of Project Plan Execution. Status meetings are a way to formally exchange project information. They can occur between the project team and project manager, the project manager and stakeholders, the project manager and users or customers, the project manager and the management team, and so on. The purpose of the status meeting is to provide updated information regarding the progress of the project. These are not show-and-tell meetings. If you have a prototype to demo, set up a different time to do that. Status meetings are meant to exchange information and provide project updates. Regular, timely status meetings prevent surprises down the road. They alert the project manager to potential risk events and provide the opportunity to discover and manage problems before they get to the uncontrollable stage. The project manager is usually the expediter of the status meeting. As such, its your job to use status meetings wisely. Dont waste your teams time or stakeholders time either. Notify attendees in writing of the meeting time and place. Publish an agenda prior to the meeting and stick to the agenda during the meeting. Every so often, summarize whats been discussed during the meeting. Dont let side discussions lead you down rabbit trails, and keep irrelevant conversations to a minimum. Its also good to publish status meeting notes at the conclusion of the meeting, especially if any action items resulted from the meeting. This will give you a document trail and serves as a reminder to the meeting participants of what actions need to be resolved and who is responsible for the action item. Its important that project team members are honest with the project manager and that the project manager is in turn honest about what they report. A few years ago, a department in my agency took on a project of gargantuan proportions and unfortunately didnt employ good project management techniques. One of the biggest problems with this project was that the project manager did not listen to the highly skilled project team members. The team members warned of problems and setbacks, but the project manager didnt want to hear of it. The project manager took their reports to be of the Chicken Little ilk and refused to believe the sky was falling. Unfortunately, the sky was falling! The project manager, because they didnt believe it, refused to report the true status of the project to the stakeholders and oversight committees. Millions of dollars were wasted on a project that was doomed for failure, while the project manager continued to report that the project was on time and activities were completed when in fact they were not. There are hundreds of project stories like this, and Ill bet youve got one or two from your experience as well. Dont let your project become the next bad example. Above all, be honest in your reporting. No one likes bad news, but bad news delivered too late along with millions of dollars wasted is a guaranteed career showstopper. Organizational Procedures This is very similar to organizational policies, except organizational policies are an input, and organizational procedures are a tool and technique of this process. The project manager should take organizational procedures into consideration when doing the work of the project. Maybe your finance department requires special requisitions for certain purchases, or your human resources department might require formal procedures for full-time as well as contract personnel. Be aware of policies like this ahead of time so that they dont interfere with the project Executing process. Resulting Outputs Weve already touched on the outputs of this process. Obviously, the product or service of the project is our end result. The Guide to the PMBOK calls this work results. The second output well look at is change requests. Work Results During Project Plan Execution, youll gather and record information regarding the activity completion dates, milestone completions, the status of the deliverables, the quality of the deliverables, costs, schedule progress and updates, and so on. All of this information gets used during the Performance Reporting process, which well discuss during the Controlling process. Project Executing and Controlling are two processes that work hand in hand. As you gather the information from work results, youll measure the outputs and take corrective actions where necessary. This means youll loop back through the Executing process to put the corrections into place. The Guide to the PMBOK breaks these processes up for ease of explanation, but in practice, youll work through several of the Executing and Controlling processes together. Change Requests As a result of working through activities and producing your product or service, you will inevitably come upon things that need to be changed. This might encompass schedule changes, scope changes, or requirements or resource changes. The list really could go on. Your job as project manager, if you choose to accept it (wasnt that a movie theme?), is to collect the change requests and make determinations on their impact to the project. Well discuss change requests in the coming chapters. Change requests are an output of this process and an output of the Performance Reporting process in the Controlling process group. Remember that Executing and Controlling outputs feed each other as inputs. Project Plan Execution is the primary process, and the only core process, in the Executing process group. The work of the project is performed here, and the project plan is put into action and carried out. This process is where the project manager is like an orchestra conductor signaling the instruments to begin their activities, monitoring what should be winding down, and keeping that smile going to remind everyone that they should be enjoying themselves. I recommend that you know the tools and techniques and the outputs of this process for the exam. Developing the Project Team Projects exist to create a unique product or service within a limited time frame. Projects are performed by people, and most projects require more than one person to perform all of the activities. If youve got more than one person working on your project, youve got a team. And if youve got a team, youve got a wide assortment of personalities, skills, needs, and issues in the mix. Couple this with part-time team members, teams based in functional organizations whose loyalty lies with the functional manager, or teams based in matrix organizations that report to two different managers and you could have some real challenges on your hands. Good luck. Okay, I wont leave you hanging like that. Team Development according to the Guide to the PMBOK, is about creating an open, encouraging environment for stakeholders to contribute as well as developing your team into an effective, functioning, coordinated group. Projects are performed by individuals, and the better they work together, the smoother and the more efficient the execution of the project will be. Team Development inputs include project staff, project plan, staffing management plan, performance reports, and external feedback. All of the inputs have been discussed elsewhere with the exception of external feedback. External feedback, as it implies, is information relayed to the project team from those outside of the project team regarding performance expectations. This feedback might come from stakeholders, the management team, users, customers, etc. The tools and techniques of Team Development include team-building activities, general management skills, reward and recognition systems, collocation, and training. Well cover these topics next. As I said earlier, there are a lot of exam questions regarding team building, so dig out all your favorite memorization techniques and put them to use. Implementing Team Building Many times, project teams are made up of folks who dont know each other. They arent necessarily aware of the project objectives and may not even want to be a part of the team. The project manager may not have worked with the people assigned to the project team before either. Sound like a recipe for disaster? Its not. Thousands of projects are started with team members and project managers who dont know each other and come to a successful completion. How is that done? Its a result of the project managers team-building and communication skills. The project managers job is to bring the team together, get them all headed in the right direction, and provide motivation, reward, and recognition to keep the team in tip-top shape. This is done using a variety of team-building techniques and exercises. Team building is simply getting a diverse group of people to work together in the most efficient and effective manner possible. There are entire volumes on this subject, and its beyond the scope of this book to go into all the team-building possibilities. The exam tends to focus more on the theories behind team building, so thats what well spend our time looking at. All newly formed teams go through four stages of development: forming, storming, norming, and performing. Youve probably seen this elsewhere, but since these stages are on the exam, youll want to memorize them. Lets take a brief look at each of them. Forming This ones easy. Its the beginning stage of team formation when all the members are brought together, introduced, and told the objectives of the project. This is where team members learn why theyre working together. During this stage, team members tend to be formal and reserved and take on an all business approach. Storming This stage is where the action begins. Team members become confrontational with each other as theyre vying for position and control during this stage. Theyre working through who is going to be the top dog and jockeying for status. Norming Now things begin to calm down. Team members know each other fairly well by now; theyre comfortable with their position in the team and begin to deal with project problems instead of people problems. In this stage, they confront the project concerns and problems instead of each other. Decisions are made jointly at this stage, and team members exhibit affection and familiarity with one another. Performing Ahh, perfection. Well, almost, anyway. This is where great teams end up. This stage is where the team is productive and effective. The level of trust among team members is high, and great things are achieved. This is the mature development stage. Different teams progress through these stages at different rates. When you have to bring new team members on board for whatever reason, the team-forming stages start all over again. It doesnt matter where the team is in the forming processa new member will start the cycle over again.  INCLUDEPICTURE "http://www.books24x7.com/book/id_3964/_.gif" \* MERGEFORMATINET Real World ScenarioMicro-Robotics Research and Development Micro-Robotics is working on a prototype microscopic robot thats inserted into inoperable brain tumors. The robot is controlled using a remote control joystick device that allows a trained brain surgeon to excise the brain tumor. You are the project manager for this project and have recently assembled your team. Youve got a diverse group of highly skilled team members including medical doctors, medical researchers, computer programmers, and bio-mechanical engineers. Youve held a few project meetings and have called the next one to order. The agenda has been read, and youre discussing the progress of one of the computer programs that controls the robot. I did hear what you said, Amiel, Noelle the brain surgeon says. And it wont work like that. Amiel is the lead computer programmer on the project. But when we met last week, you said Noelle interrupts, How many brain surgeries have you performed? Fix it or Im off this team. You tell everyone to take five. It occurs to you that this really isnt unusual behavior. Highly skilled experts are sometimes difficult to manage, but all teams go through certain stages prior to hitting the peak performance stage. You realize this team is in the storming stage and will benefit from some team-building exercises. A few off-site team-building activities is just what the doctor ordered.  INCLUDEPICTURE "http://www.books24x7.com/book/id_3964/_.gif" \* MERGEFORMATINET Team Focus Did you ever watch any of those old pirate movies on late-night TV? Remember the scenes where the captain went down into the bowels of the ship to check on the teams of rowers? Imagine your project team members are like those rowing teams. If the members on the left are rowing one way and the members on the right are rowing another, youre creating a lot of energy and looking very busy, but in the end you arent making any progress. All the team members need to understand the direction youre headed and work toward that end. Its paramount that the team members know and understand the objectives of the project. After all, thats the reason theyve been brought together in the first place. Keep in mind that people see and hear things from their own perspective. A room full of people attending a speech will all come away with something a little different because what was said speaks to their particular situation in life at the time. In other words, their own perceptions filter what they hear. Its your job as project manager to make certain the team members understand the objectives and their assignments correctly. Ask them to tell you in their own words what they believe the project objectives to be. This is a great way to know if youve got everyone on board. Effective Team Characteristics Effective teams are typically very energetic teams. Their enthusiasm is contagious, and it feeds on itself. They generate a lot of creativity and become good problem solvers. Teams like this are every project managers dream. Investing yourself in team building as well as relationship building, especially when you dont think you have the time to do so, will bring many benefits. Heres a sample of the benefits: Better conflict resolution Commitment to the project Commitment to the project team members and project manager High job satisfaction Enhanced communication A sense of belonging and purpose Dysfunctional teams will typically produce the opposite results of the benefits we just listed. Dysfunctional teams dont just happen by themselves any more than great teams do. Sure, sometimes youre lucky enough to get the right combination of folks together right off the bat. But usually, team building takes work and dedication on the part of the project manager. Even in the situations where you do get that dynamite combination of people, they will benefit from team-building exercises and feedback. Unfortunately, sour attitudes are just as contagious as enthusiasm. Watch for these symptoms among your team members and take action to correct the situation before the entire team is affected: Lack of motivation or dont care attitudes Project work that isnt satisfying Status meetings that turn into whining sessions Poor communication Lack of respect and lack of trust for the project manager Keep in mind that no amount of team building will make up for poor project planning or ineffective project management techniques. Neglecting these things and thinking that your project team is good enough to make up for the poor planning or poor techniques could spell doom for your project. And besides that, its not fair to your project team to put them in that position. Collocation Team members are often located in the same physical locationfor example, the same office building or office complex. This is called collocation. Collocation enables teams to function more effectively than if theyre spread out among different localities. Many times on large projects, the project manager will make provisions in the project budget to bring the team together at the same site. Its difficult, but not impossible, to manage project team members who are not physically located together. One way to achieve collocation might be to set aside a common meeting room, sometimes called a war room, for team members who are located in different buildings or across town to meet and exchange information. Training Training is a matter of assessing your teams skills and abilities, plus the project needs, and providing the training necessary for the team members to carry out their assigned activities. Training can sometimes be a reward as well. In the software industry, programmers seek out positions that offer training on the latest and greatest technologies, and they consider it a benefit or bonus to attend training on the company dollar and time. Motivating the Team Team building starts with project planning and doesnt stop until the project is completed. It involves employing techniques to improve your teams performance and keeping team members motivated. Motivation helps people work more efficiently and produce better results. If clear expectations, clear procedures, and the right motivational tools are used, project teams will excel. Motivation can be extrinsic or intrinsic. Extrinsic motivators are material things and might include bonuses, the use of a company car, stock options, gift certificates, training opportunities, and so on. Intrinsic motivators are specific to the individual. Some people are just naturally driven to achieveits part of their nature. Cultural and religious influences are forms of intrinsic motivators as well. Reward and recognition, which well look at next, are examples of extrinsic motivators. Reward and Recognition Reward and recognition systems are an important part of team interaction. These are formal ways of recognizing and promoting desirable behavior. Reward and recognition should occur in proportion to the achievement. In other words, appropriately link the reward to the performance. Team members should be rewarded for going above and beyond the call of duty. Perhaps they put in a significant amount of overtime to meet a project goal or spent nights round-the-clock babysitting ill-performing equipment. These types of behaviors should get rewarded and formally recognized by the project manager and the management team. On the other hand, if the ill-performing equipment was a direct result of mistakes made or if it happened because of poor planning, rewards would not be appropriate in this case, obviously. Rewards should be linked to performance. A project manager who has responsibility for the project budget and the procurement process and keeps the costs in line with the budget should get rewarded for this achievement. If these functions are assigned to a functional manager in the organization, it wouldnt be appropriate to reward the project manager as they were not the one responsible for keeping the costs in line. Consider individual preferences and cultural differences as well when using rewards and recognitions. Some people dont like to be recognized in front of a group; others thrive on it. Some people appreciate an honest thank-you with minimal fanfare, and others just wont accept individual rewards as their culture doesnt allow it. Keep this in mind when devising your reward system.  INCLUDEPICTURE "http://www.books24x7.com/book/id_3964/_.gif" \* MERGEFORMATINET Real Word ScenarioBakers Gift Baskets Youre a contract project manager for Bakers Gift Baskets. This company assembles gift baskets of all styles and shapes with every edible treat imaginable. The company has recently experienced explosive growth, and youve been brought on board to manage their new project. They want to offer pick your own baskets that allow customers to pick the individual items they want included in the basket. And, theyre introducing a new line of containers to choose from, including things like miniature golf bags, flowerpots, serving bowls, and the like. This means changes to the catalog and the website to accommodate the new offerings. The deadline for this project is the driving constraint. The web changes wont cause any problems with the deadline. However, the catalog must go to press quickly to meet holiday mailing deadlines, which in turn are driving the project deadline. Your team put their heads together and came up with an ingenious plan to meet the catalog deadline. It required lots of overtime and some weekend work on their part to pull it off, but they met the date. You decide this is a perfect opportunity to recognize and reward the team for their outstanding efforts. Youve arranged a slot on the agenda at the next all-company meeting to bring your team up front and praise them for their cooperation and efforts to get the catalog to the printers on time. Youll also present each of them with 2 days of paid time off and a gift certificate for a dinner with their family at an exclusive restaurant in the city.  INCLUDEPICTURE "http://www.books24x7.com/book/id_3964/_.gif" \* MERGEFORMATINET Motivational Theories There are many theories on motivation. You will encounter questions on these theories on the exam, so know their names and their primary points. Motivational theories came about during the modern age. Prior to todays information and service type jobs and yesterdays factory work, the majority of people worked the land and barely kept enough food on the table to feed their family. No one was concerned about motivation at work. You worked because you would starve to death if you didnt. Fortunately, that isnt the case today. Today we have a new set of problems in the workplace. Workers in the U.S. today arent concerned with starvationthat need has been replaced with other needs like job satisfaction, a sense of belonging and commitment to the project, good working conditions, and so on. Motivational theories present ideas on why people act the way they do, and how we can influence them to act in certain ways to get the results we want. Again, there are libraries full of books on this topic. Well cover four of them here. Maslows Hierarchy of Needs You have probably seen this classic example of motivational theory. Abraham Maslow hypothesized that humans have five basic needs arranged in hierarchical order. The first of those needs are physical needs like the need for food, clothing, and shelter. The idea is these needs must be met before the person can move to the next level in the hierarchy, which is safety and security needs. Here the concern is for the persons physical welfare and the security of their belongings. Once that need is met, they progress to the next level, and so on. The theory suggests that once a lower level need has been met, it no longer serves as a motivator and the next higher level becomes the driving motivator in a persons life. Maslow conjectures that humans are always in one state of need or another. Here is a recap of each of the needs starting with the highest level and working down. Self-actualizationPerforming at your peak potential Self-esteem needsAccomplishment, respect for self, capability Social needsA sense of belonging, love, acceptance, friendship Safety and security needsYour physical welfare and your belongings Basic physical needsFood, clothing, shelter The highest level of motivation in this theory is the state of self-actualization. The United States Army had a slogan a few years ago that I think encapsulates self-actualization very well; it went something like this: Be all you can be. When all the physical, safety, social, and self-esteem needs have been met, a person reaches a state of independence where theyre able to express themselves and perform at their peak. Theyll do good work just for the sake of doing good work. Recognition and self-esteem have already been fulfilled at lower levels; now the need for being the best they can be is reached. Hygiene Theory Fredrick Herzberg came up with the Hygiene theory, also known as the Motivation-Hygiene theory. He postulates that there are two factors that contribute to motivation: hygiene factors and motivators. Hygiene factors deal with work environment issues. The thing to remember about hygiene factors is that they prevent dissatisfaction. Examples of hygiene factors are pay, benefits, the conditions of the work environment, and relationships with peers and managers. Pay is considered a hygiene factor as Herzberg believed that over the long term, pay is not a motivator. In other words, being paid for the work done prevents dissatisfaction but doesnt necessarily bring satisfaction in and of itself. He believed this to be true as long as the pay system is equitable. If two workers performing the same functions have large disparities in pay, then pay can become a motivator. Motivators deal with the substance of the work itself and the satisfaction one derives from performing the functions of the job. Motivators lead to satisfaction. The ability to advance, the opportunity to learn new things, and the challenges involved in the work are all motivators according to Herzberg. For the exam, remember that Herzberg was the inventor of the Hygiene theory and that this theory claims that hygiene factors prevent dissatisfaction while motivators lead to satisfaction. Expectancy Theory The Expectancy theory says that the expectation of a positive outcome drives motivation. People will behave in certain ways if they think there will be good rewards for doing so. Also note that this theory says the strength of the expectancy drives the behavior. In other words, the expectation or likelihood of the reward is linked to the behavior. For example, if you tell your 2-year-old to put the toys back in the toy box and youll give her a cookie, chances are shell put the toys away. This is a reasonable reward for a reasonable action. However, if you promise your project team members vacations in Hawaii if they get the project done early and they know there is no way you can deliver that reward, there is little motivation to work toward that reward. This theory also says that people become what you expect of them. If you openly praise your project team members and treat them like valuable contributors, youll likely have a high-performing team on your hands. Conversely, when you publicly criticize people or let them know that you have low expectations regarding their performance, theyll likely live up (or down as the case may be) to that expectation as well. Achievement Theory Achievement theory says that people are motivated by the need for three things: achievement, power, and affiliation. The achievement motivation is obviously the need to achieve or succeed. The power motivation involves a desire for influencing the behavior of others. And the need for affiliation is relationship oriented. Workers want to have friendships with their co-workers and a sense of camaraderie with their fellow team members. The strength of your team members desire for each of these will drive their performance on various activities. Well cover two more theories in the leadership section, which is next. These deal specifically with how leaders deal with their project team members. Getting to Leadership vs. Management Leaders have a knack for getting others to do what needs done and rallying them around a vision. Good leaders have committed team members who believe in the vision of the leader. Leaders set direction and time frames, and have the ability to attract good talent to work for them. We talked about leaders versus managers back in  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=17" \l "17" \t "_parent" Chapter 1. Leaders inspire a vision and get things done through others by garnering loyalty, respect, and cooperation from team members. They set the course and lead the way. Leaders are usually concerned about the big picture, so to speak. Good leaders are directive in their approach, but allow for plenty of feedback and input. Good leaders commonly have strong interpersonal skills and are well respected. Managers are generally task oriented, concerned with things like plans, controls, budgets, policies, and procedures. Theyre generalists with a broad base of planning and organizational skills, and their primary goal is satisfying stakeholder needs. They also posses motivational skills and the ability to recognize and reward behavior. Project managers need to use the traits of both leaders and managers at different times during the project. On very large projects, a project manager will act more like a leader inspiring the subproject managers to get on board with the objectives. On small projects, project managers will act more like managers as theyre responsible for all the planning and coordinating functions. There are two theories that well discuss regarding leadership. They are McGregors Theory of X and Y and the Contingency theory. Then well end this section with a discussion of the types of power leaders use and the outputs of Team Development. Theory X and Theory Y Theory X and Theory Y attempt to explain how different managers deal with their team members. Theory X managers believe most people do not like work and will try to steer clear of it; they have little to no ambition, need constant supervision, and wont actually perform the duties of their job unless threatened. As a result, Theory X managers are like dictators and impose very rigid controls over their people. They believe people are motivated only by punishment, money, or position. Unfortunately for them, Theory X managers unknowingly also subscribe to the Expectancy theory. If they expect people to be lazy and unproductive and treat them as such, their team members probably will be lazy and unproductive. Theory Y managers believe people are interested in performing their best given the right motivation and proper expectations. These managers provide support to their teams, are concerned about their team members, and are good listeners. Theory Y managers believe people are creative and committed to the project goals, that they like responsibility and seek it out, and that they are able to perform the functions of their positions with limited supervision. Contingency Theory This theory builds on a combination of Theory Y and the Hygiene theory. The Contingency theory, in a nutshell, says that people are motivated to achieve levels of competency and will continue to be motivated by this need even after competency is reached. The Power of Leaders Power is the ability to influence others to do what you want them to do. This can be used in a positive manner or a negative one. But that old saying of your grandmother about attracting more flies with honey than vinegar still holds true today. Leaders, managers, and project managers use power to convince others to do things a specific way. The kind of power they use to accomplish this depends on their personality, their personal values, and the company culture. Types of Power There are several forms of power that a project manager might use. Weve already talked about reward power, which is the ability to grant bonuses or incentive awards for a job well done. Lets look at a few more. Punishment Power Punishment, also known as coercive or penalty power, is just the opposite of reward power. The employee is threatened with consequences if expectations are not met. Expert Power Expert power occurs when the person being influenced believes the manager, or the person doing the influencing, is knowledgeable on the subject or has special abilities that make them an expert. The person goes along just because they think the influencer knows what theyre doing and its the best thing for the situation. Legitimate Power Legitimate, or formal, power comes about as a result of the influencers position. Because that person is the project manager, or executive vice president, or CEO, they have the power to call the shots and make decisions. Referent Power Referent power is inferred to the influencer by their subordinates. Project team members who have a great deal of respect and high regard for their project managers willingly go along with decisions made by the project manager because of referent power. Punishment power should be used as a last resort. There are times when youll have to use this method, but hopefully much less often than the other three forms of power. Sometimes, youll have team members who wont live up to expectations and their performance suffers as a result. This is a case where punishment power is enacted to get the employee to correct their behavior. Defining Team Development Outputs Were now ready to close out the Team Development process outputs. There are several questions regarding team-building and motivational techniques on the exam, so its good youve just spent the time learning all about them. The outputs to Team Development are performance improvements and input to performance appraisals. These are pretty straightforward. As a result of positive team-building experiences, youll see individuals improving their skills, team behaviors and relationships improving, conflict resolutions going smoothly, and team members recommending ways to improve the work of the project. Performance appraisals are typically annual affairs where managers let their employees know what they think of their performance for the past year and rate them accordingly. Project managers should contribute to the performance appraisals of all project team members. In functional organizations, the functional manager is responsible for the performance appraisal. If project managers do not have an equal say, or at least some say in the employees performance, it will cause the team member to be loyal to the functional manager and show little loyalty to the project or project manager. Project managers need to wear a lot of hats. This is one of the things that makes this job so interesting. You need organization and planning skills to plan the project. You need motivation and sometimes disciplinary skills to execute the project plans. You need to exercise leadership and power where appropriate. And all the while, you have a host of relationships to manage, including team members, stakeholders, managers, and customers. Its a great job and brings terrific satisfaction. Developing Great Communication Skills Every aspect of your job as a project manager will involve communications. Its been estimated that project managers spend as much as 90 percent of their time communicating in one form or another. Therefore, communication skills are arguably the most important skills a project manager can have. They are even more important than technical skills. Good communication skills foster an open, trusting environment. The ability to communicate well is a project managers best asset. We talked about how important good communication skills are in  HYPERLINK "http://www.books24x7.com/viewer.asp?bkid=3964&destid=17" \l "17" \t "_parent" Chapter 1. In this section, well discuss the act of communication, listening behaviors, and conflict resolution. Youll employ each of these techniques with your project team, stakeholders, customers, and management team. Information Exchange Communication is the process of exchanging information. There are three elements to all communication: the sender, the message, and the receiver. The sender is the person responsible for putting the information together in a clear and concise manner. The information should be complete and presented in a way that the receiver will be able to correctly understand it. Make your messages relevant to the receiver. Junk mail is annoying, and information that doesnt pertain in any way whatsoever to the receiver is nothing more than that. The message is the information being sent and received. It might be written, verbal, non-verbal, formal, informal, internal, external, horizontal, or vertical. Horizontal communications are messages sent and received to peers. Vertical communications are messages sent and received down to subordinates and up to executive management. Make your messages as simple as you can to get your point across. Dont complicate the message with unnecessary detail and technical jargon that others may not understand. A simple trick that helps clarify your messages, especially verbal messages, is to repeat the key information periodically. Public speakers are taught that the best way to organize your speech is to first tell the audience what youre going to tell them; second, tell them; and third, tell them what you just told them. The receiver is the person the message is intended for. They are responsible for understanding the information correctly and making sure theyve received all of the information. Keep in mind that receivers filter the information they receive through their knowledge of the subject, culture influences, language, emotions, attitudes, and geographic locations. The sender should take these filters into consideration when sending messages so that the receiver will clearly understand the message that was sent. Methods of Information Exchange Senders, receivers, and messages are the elements of communication. The way the sender packages or encodes the information and transmits it, and the way the receiver unpacks or decodes the message are the methods of communication exchange. Senders encode messages. Encoding is a method of putting the information into a format the receiver will understand. Language, pictures, and symbols are ways to encode messages. Encoding formats the message for transmitting. Transmitting is the way the information gets from the sender to the receiver. Spoken words, written documentation, memos, e-mail, voice mail, and so on are all transmitting methods. Decoding is what the receiver does with the information when they get it. They convert it into an understandable format. Usually, this means they read the memo, listen to the speaker, etc. Forms of Communication Communication occurs primarily in written or verbal form. Granted, we can point to something or indicate what you need with motions, but usually we use the spoken or written word to get our message across. Verbal communication is easier and less complicated than written communication, and its usually a fast method of communication. Written communication, on the other hand, is an excellent way to get across complex, detailed messages. Detailed instructions are better provided in written form as it provides the reader the ability to go back over information theyre not quite sure about. Both verbal and written communications might take a formal or an informal approach. Speeches or lectures are an example of formal verbal communications. Most project status meetings take more of a formal approach as do most written project status reports. Generally speaking, the project manager should take an informal approach when communicating with stakeholders and project team members outside of the status meetings. This makes you appear more open and friendly and easier to approach with questions and issues. Lines of Communication Project communication will always involve more than one person, even on the tiniest of projects. As such, communication network models have been devised to try to explain the relationships between people and the number or type of interactions needed between project participants. What you need to remember for the exam is that network models consist of nodes with lines connecting the nodes that indicate the number of lines of communication. See  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=463729584" \l "figure.1CC173B2-A5D5-4C61-BF4B-8BBECADC49983AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#figure.1CC173B2-A5D5-4C61-BF4B-8BBECADC49983AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA" Figure 8.1 for an example of a network communication circle with six participants.  HYPERLINK "javascript:PopImage('IMG_41','http://images.books24x7.com/bookimages/id_3964/f0801_0.jpg','346','373')" \t "_self"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/f0801.jpg" \* MERGEFORMATINET  Figure 8.1: Circular communication network The nodes are the participants, and the lines show the connection between them all. Youll need to know how to calculate the lines of communication when you take the exam. You could draw them out like this example and count up the lines, but theres an easier way. The formula for calculating the lines of communication is as follows: [number of participants (number of participants less one)] divided by two. Heres the calculation in math terms: [n (n 1)] 2  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=463729584" \l "figure.1CC173B2-A5D5-4C61-BF4B-8BBECADC49983AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#figure.1CC173B2-A5D5-4C61-BF4B-8BBECADC49983AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA" Figure 8.1 shows six participants, so lets plug that into our formula to determine the lines of communication: [6 (6 1)] 2 = 15 I recommend you memorize this formula before taking the exam. Effective Listening Skills What did you say? Often we think were listening when we really arent. In all fairness, we can take in only so much information at one time. But its important to perform active listening when someone else is speaking. As a project manager, you will spend the majority of your time communicating with team members, stakeholders, customers, vendors, and others. This means you should be as good a listener as you are a communicator. Listening Techniques One of the things you can do to listen more actively is to appear interested. This will make the speaker feel at ease and will benefit you as well. By acting interested, you become interested and thereby retain more of the information being presented. Making eye contact with the speaker is another effective listening tool. This lets the speaker know you are paying attention to what theyre saying and are interested. Put your speaker at ease by letting them know beforehand that youre interested in what theyre going to talk about and that youre looking forward to hearing what they have to say. While theyre speaking, nod your head, smile, or make comments when and if appropriate to let the speaker know you understand the message. If you dont understand something and are in the proper setting, ask clarifying questions. Another great trick that works well in lots of situations is to recap what the speaker said in your own words and tell it back to them. Start with something like this, Let me make sure I understand you correctly, youre saying and ask the speaker to confirm that you did understand them correctly. Just like your mother always said, its impolite to interrupt. Interrupting is a way of telling the speaker that you arent really listening and youre more interested in telling them what you have to say than listening to them. Interrupting gets the other person off track, they might forget their point, and it may even make them angry. Not to disagree with mom, but there probably are some occasions where interrupting is appropriate. As an example, if youre in a project status meeting and someone wants to take the meeting off course, sometimes the only way to get the meeting back on track is to interrupt them. You can still do this politely. Start first by saying their name to get their attention. Then let them know that youd be happy to talk with them about their topic outside of the meeting or add it to the agenda for the next status meeting if its something everyone needs to hear. Sorry, mom. Resolving Conflicts I said earlier in this chapter that if you have more than one person working on your project, you have a team. Heres another fact: If you have more than one person working on your project, youll have conflict. I put conflict resolution in the communication section because conflict resolution involves communication, as well see in a moment. Everyone has desires, needs, and goals. Conflict comes into the picture when the desires, needs, or goals of one party are incompatible with the desires, needs, or goals of another party (or parties). Conflict, simply, is the incompatibility of goals and one party resisting or blocking the attainment of those goals by the other party. This doesnt sound like a party! There are five ways of resolving conflict that may show up on the exam: forcing, smoothing, compromise, confrontation, and withdrawal. Each technique will not necessarily have long-term benefits. The smoothing and withdrawal techniques have temporary results and arent always good techniques to use to resolve problems. Forcing, compromise, and confrontation techniques, however, tend to have lasting effects. Forcing Forcing is just like it sounds. One person forces a solution on the other parties. This is where the boss puts on the because Im the boss and I said so hat. While this is a permanent solution, it isnt necessarily the best solution. People will go along with it because, well, theyre forced to go along with it. It doesnt mean they agree with the solution. This isnt the best technique to use when youre trying to build a team. This is an example of a win-lose conflict resolution technique. The forcing party wins, and the losers are those who are forced to go along with the decision. Smoothing Smoothing does not lead to a permanent solution. Its a temporary way to resolve conflict where someone attempts to make the conflict appear less important than it is. Everyone looks at each other and scratches their head and wonders why they thought the conflict was such a big deal anyway. As a result, a compromise is reached and everyone feels good about the solution until they get back to their desk and start thinking about the issue again. When they realize that the conflict was smoothed over and really is more important than what they were led to believe, theyll be back at it and the conflict will resurface. This is an example of a lose-lose conflict resolution technique as neither side wins. Compromise Compromise is achieved when each of the parties involved in the conflict gives up something to reach a solution. Everyone involved decides what they will give on and what they wont give on, and eventually through all the give and take a solution is reached. Neither side wins or loses in this situation. As a result, neither side is really gung ho on the decision that was reached. They will drag their feet and reluctantly trudge along. If, however, firm commitments are made by both parties to the resolution, then the solution becomes a permanent one. Confrontation This technique is also called problem solving and is the best way to resolve conflict. A fact-finding mission results in this scenario. The thinking here is that one right solution to a problem exists and the facts will bear out the solution. Once the facts are uncovered, theyre presented to the parties and the decision will be clear. Thus the solution becomes a permanent one and the conflict expires. This is the conflict resolution approach project mangers use most often and is an example of a win-win conflict resolution technique. Withdrawal Withdrawal never results in resolution. This occurs when one of the parties gets up and leaves and refuses to discuss the conflict. It is probably the worst of all the techniques as nothing gets resolved. This is an example of a lose-lose conflict resolution technique. Keep in mind that group size makes a difference when youre trying to resolve conflict or make decisions. Groups of 5 to 11 people have been shown to make the most accurate decisions. Use communication, listening, and conflict resolution skills wisely. As a project manager, youll find that your day-to-day activities encompass these three areas the majority of the time. Project managers with excellent communication skills can work wonders. Communication wont take the place of proper planning and management techniques, but a project manager who communicates well with their team and the stakeholders can make up for a lack of technical skills any day, hands down. If your team and your stakeholders trust you, and you can communicate the vision and the project goals and report on project status accurately and honestly, the world is your oyster. Distributing Project Information Information Distribution is concerned with getting stakeholders information regarding the project in a timely manner. This can come about in several ways: status reports, project meetings, review meetings, etc. In the Information Distribution process, the communications management plan that was defined during the Communications Planning process is put into action. Communication and Information Distribution work together to report the progress of the project team. The Information Distribution process inputs are work results, communications management plan, and project plan. These have all been discussed previously. The tools and techniques for this process are communication skills, information retrieval systems, and information distribution methods. We covered communication skills in the last section, so well skip ahead to the information systems. Information Retrieval Systems Retrieval systems are ways that information is stored and shared among project team members. They include things like project management software, manual filing systems, and electronic databases. Dont confuse retrieval systems with distribution methods. Remember that retrieval systems are ways for the project team to get at project information. Information Distribution Methods Distribution methods are ways of getting the project information to the project team or stakeholders. As the name implies, these are ways to distribute the information and might include e-mail, hard copy, voice mail, videoconferencing, etc. Outputs of Information Distribution The first output of the Information Distribution process is project records. These include, as you might guess, memos, correspondence, and other documents concerning the project. The best place to keep information like this is in a project binder or a set of project binders, depending on the size of the project. The project binders are ordinary three-ring binders where project information gets filed. They are maintained by the project manager or project office, and contain all information regarding the project. These records serve as historical information once the project is closed. Project reports, the second output of this process, include the project status reports and minutes from project meetings. If youre keeping an issues log, they would be included with this as well. The final output of this process is project presentations. These involve presenting project information to the stakeholders and other appropriate parties when necessary. The presentations might be formal or informal and depend on the audience and the information being communicated.  INCLUDEPICTURE "http://www.books24x7.com/book/id_3964/_.gif" \* MERGEFORMATINET Project Case Study: New Kitchen Heaven Retail Store Dirk Perrier logs on and finds the following e-mail addressed to all the stakeholders and project team members from you. --------------------------------------------------------------------------------------------------- Project Progress Report Project NameKitchen Heaven Retail Store Project Number081501-1910 Prepared byProject Manager DateSeptember 20, 2001 Section 1: Action Items Action Item 1: Call Cable VendorResponsible Party: Ricardo; Resolution Date: 9/ 12 Action Item 2: T1 Connection StatusResponsible Party: Ricardo; Resolution Date: Pending Action Item 3: Build-out BeginsResponsible Party: Jake; Resolution Date: Pending Section 2: Scheduled and Actual Completion Dates Sign LeaseScheduled: 8/20/01; Completed: 8/20/01 Gomez Contract SignedScheduled: 9/11/01; Completed: 9/11/01 Ethernet Cable RunScheduled: 9/18/01; Completed: 9/18/01 Build-out StartedScheduled: 9/19/01; Completed: Open Section 3: Activity That Occurred in the Project This Week The Ethernet cable run was completed without a problem. Gomez construction started the build-out process. This task was fast tracked with the Ethernet cable run as planned. Jill made initial calls regarding retail products order. Section 4: Progress Expected This Reporting Period Not Completed None. Project is on track to date. Section 5: Progress Expected Next Reporting Period Build-out will continue. Jake reports that Gomez expects to have electrical lines run and drywall started prior to the end of the next reporting period. Ricardo should have a T1 update. Theres a slim possibility that the T1 connection will have occurred by next reporting period. Section 6: Issues We had to start the build-out on the last day of the cable run (this is called fast tracking) to keep the project on schedule. Jake and Ricardo reported only minor problems with this arrangement in that the contractors got into each others way a time or two. This did not impact the completion of the cable run as most of day two this team was in the back room and Gomezs crew was in the storefront area. A key member of the Gomez construction crew was out last week due to a family emergency. Gomez assures us that it will not impact the build-out schedule. They replaced the team member with someone from another project so it appears so far that build-out is on schedule. Ricardo is somewhat concerned about the T1 connection as the phone company wont return his calls inquiring about status. Were still ahead of the curve on this one as hardware isnt scheduled to begin testing until January 23. Hardware testing depends on the T1 connection. This is a heads-up at this point, and well carry this as an issue in the status report going forward until its resolved. One of the gourmet food item suppliers Jill uses regularly went out of business. She is in the process of tracking down a new supplier to pick up the slack for the existing stores and supply the gourmet food products for the new store. --------------------------------------------------------------------------------------------------- Good job on the status, Dirk says as you pick up the phone. I was beginning to wonder when wed see some action on the project, but it looks like things are under way. A lot has happened in just the past 2 weeks as you can see. Ill publish these project status updates twice a month in conjunction with the regular project status meetings. Starting in January, Ill publish them once a week until project completion. Keep me posted on that T1 line. That isnt going to be a showstopper, is it? We have a contingency plan in place, you reply. We talked about that last week. Okay. Ill see you at the project meeting Friday. See you then, you say. Project Case Study Checklist Communication Sender makes it clear and concise. Theres no unnecessary technical jargon. Formal written communication is provided. Its the receivers responsibility to understand information. Status report is a vertical and horizontal communication method. Project Plan Execution Status review meetings Work results Team Development Information Distribution Project information is delivered to stakeholders in a timely manner. Information distribution method is status reports via e-mail and project meetings. Status report is part of the project reports filed in the project binder or file for future reference as historical information.  INCLUDEPICTURE "http://www.books24x7.com/book/id_3964/_.gif" \* MERGEFORMATINET Summary This chapter detailed three processes from the Executing process group: Project Plan Execution, Team Development, and Information Distribution. Project Plan Execution is where the project plans come to life. Activities are authorized to begin using a work authorization system, the product or service of the project is actually produced, and status review meetings are held to inform stakeholders of project progress and updates. Team building involves creating an open, inviting atmosphere where stakeholders and project team members will become efficient and cooperative teams increasing productivity during the course of the project. Its the project managers job to bring the team together into a functioning, productive group. There are four stages of Team Development: forming, storming, norming, and performing. All groups proceed through these stages, and the introduction of a new team member will always start the process over again. Collocation is physically placing team members together in the same location. This might also include a common meeting room or gathering area where team members can meet and collaborate on the project. Several motivational theories exist including reward and recognition, Maslows Hierarchy of Needs, Hygiene theory, Expectancy theory, and Achievement theory. These theories conjecture that motivation is driven by needs, anticipation of expected outcomes, or needs for achievement, power, or affiliation. The Hygiene theory proposes that hygiene factors prevent dissatisfaction. Leaders inspire vision and rally people around common goals. Theory X leaders think most people are motivated only through punishment, money, or position. Theory Y leaders think most people want to perform the best job they can. The Contingency theory says that people naturally want to achieve levels of competency and will continue to be motivated by competency needs even after competency is reached. Leaders exhibit five types of power: reward, punishment, expert, legitimate, and referent power. Communication skills are the most important skills a project manager exercises. People who send messages are responsible for making sure the message is clear, concise, and complete. Receivers are responsible for understanding the message correctly and making sure theyve received all of the information. Listening skills put speakers at ease. Several techniques tell your speaker youre listening attentively including making eye contact, nodding, asking clarifying questions, and limiting interruptions. Information Distribution is a matter of getting project information out to the stakeholders. Information retrieval systems generally store project information and include project management software, filing cabinets, and electronic databases. Information distribution methods are ways to get the information to the stakeholders and include e-mail, paper, voice mail, or videoconferencing. Exam Essentials Be able to identify distinguishing characteristics of Project Plan Execution.Its the only core process in the Executing group, and the majority of the project budget is spent during this process. Be able to name the four stages of group formation.Forming, storming, norming, and performing. Be able to define Maslows highest level of motivation.Self-actualization occurs when a person performs at their peak and all lower level needs have been met. Be able to name the five levels of power.Reward, punishment, expert, legitimate, and referent. Be able to differentiate between senders and receivers of information.Senders are responsible for clear, concise, complete messages, while receivers are responsible for understanding the message correctly. Be able to identify the five styles of conflict resolution.Forcing, smoothing, compromise, confrontation, and withdrawal.  INCLUDEPICTURE "http://www.books24x7.com/images/_.gif" \* MERGEFORMATINET Key Terms Before you take the exam, be certain you are familiar with the following terms: collocationproject recordInformation DistributionTeam DevelopmentProject Plan Execution INCLUDEPICTURE "http://www.books24x7.com/images/_.gif" \* MERGEFORMATINET Review Questions 1. You are a project manager for an international marketing firm. You are ready to assign resources to your new project using a work authorization system. All of the following are true except: Work authorization systems clarify and initiate the work for each work package. Work authorization systems are written procedures defined by the organization. Work authorization systems are tools and techniques of the Project Plan Execution process. Work authorization systems are an output of the Project Plan Execution process.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=530996544" \l "answer.nr-qandaentry.F88141AC-91A5-4E91-B807-D9F69B425A1F3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#answer.nr-qandaentry.F88141AC-91A5-4E91-B807-D9F69B425A1F3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 2. Your project is progressing as planned. The project team has come up with a demo that the sales team will use when making presentations to perspective clients. You will do which of the following at your next stakeholder project status meeting? Report on the progress of the demo and note that its a completed task Preview the demo for stakeholders and obtain their approval and sign-off Review the technical documentation of the demo and obtain approval and sign-off Report that the demo has been noted as a completed task in the information retrieval system HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=530996544" \l "answer.nr-qandaentry.9B4DD840-65CE-4BC4-BB25-46F6D53587CC3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#answer.nr-qandaentry.9B4DD840-65CE-4BC4-BB25-46F6D53587CC3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 3. All of the following are tools and techniques of the Project Plan Execution process except: Project management information system Work authorization system Organizational policies General management skills HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=530996544" \l "answer.nr-qandaentry.22CE9990-85D7-450D-936C-81A319B8ED1E3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#answer.nr-qandaentry.22CE9990-85D7-450D-936C-81A319B8ED1E3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 4. You are a project manager for a growing dairy farm. They offer their organic dairy products regionally and are expanding their operations to the West Coast. Theyre in the process of purchasing and leasing dairy farms to get operations under way. You are in charge of the network operations part of this project. An important deadline is approaching that depends on the successful completion of the testing phase. Youve detected some problems with your hardware in the testing phase and discover that the hardware is not compatible with other network equipment. You take corrective action and exchange the hardware for more compatible equipment. Which of the following is true? This is not a corrective action as corrective action involves human resources, not project resources. Corrective action is taken here to make sure the future project outcomes are aligned with the project plan. Corrective action is not necessary in this case as the future project outcomes arent affected. Corrective action serves as the change request to authorize exchanging the equipment.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=530996544" \l "answer.nr-qandaentry.E9ECC756-B797-49B5-9142-F114E3AD857D3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#answer.nr-qandaentry.E9ECC756-B797-49B5-9142-F114E3AD857D3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 5. You are a project manager for a growing dairy farm. They offer their organic dairy products regionally and are expanding their operations to the West Coast. Theyre in the process of purchasing and leasing dairy farms to get operations under way. The subproject manager in charge of network operations has reported some hardware problems to you. Youre also having some other problems coordinating and integrating other elements of the project. Which of the following is true? You are in the Project Plan Execution process. Your project team doesnt appear to have the right skills and knowledge needed to perform this project. You are in the Information Distribution process. Your project team could benefit from some team-building exercises.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=530996544" \l "answer.nr-qandaentry.9A2B12A2-8EEF-4260-92F2-759A2CA585FE3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#answer.nr-qandaentry.9A2B12A2-8EEF-4260-92F2-759A2CA585FE3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 6. Which of the following processes serve as inputs to each other? Executing and Controlling Planning and Executing Planning and Controlling Executing and Initiation HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=530996544" \l "answer.nr-qandaentry.21A336EF-46D6-4132-B07A-BD36780CED813AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#answer.nr-qandaentry.21A336EF-46D6-4132-B07A-BD36780CED813AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 7. You are the project manager for a cable service provider. Your team members are amiable with each other and are careful to make project decisions jointly. Which of the following is true? They are in the smoothing stage of Team Development. They are in the norming stage of Team Development. They are in the forming stage of Team Development. They are in the forcing stage of Team Development.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=530996544" \l "answer.nr-qandaentry.02CCD5FA-E887-410A-A5C6-7512D12432923AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#answer.nr-qandaentry.02CCD5FA-E887-410A-A5C6-7512D12432923AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 8. You are the project manager for a cable service provider. Your project team is researching a new service offering. They have been working together for quite sometime and are in the performing stage of Team Development. A new member has been introduced to the team. Which of the following is true? The Team Development process will start all over again with the storming stage. The team will continue in the performing stage. The Team Development process will start all over again with the forming stage. The team will start all over again at the storming stage but quickly progress to the performing stage.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=530996544" \l "answer.nr-qandaentry.14C13B35-41F4-4431-9337-DB2970AEF99B3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#answer.nr-qandaentry.14C13B35-41F4-4431-9337-DB2970AEF99B3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 9. You are the project manager for a cable service provider. Your project team is researching a new service offering. They have been working together for quite some time and are in the performing stage of Team Development. This stage of Team Development is similar to which of the following? Smoothing Achievement theory Hygiene theory Self-actualization HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=530996544" \l "answer.nr-qandaentry.D0470641-B729-4B93-9D99-CFBAB7E12E873AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#answer.nr-qandaentry.D0470641-B729-4B93-9D99-CFBAB7E12E873AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 10. Receivers in the communication model filter their information through all of the following except: Culture Knowledge of subject Conflict Language HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=530996544" \l "answer.nr-qandaentry.252A779F-7BC9-4855-BDE7-F4FA99C5E71F3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#answer.nr-qandaentry.252A779F-7BC9-4855-BDE7-F4FA99C5E71F3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 11. Youve promised your team two days of paid time off plus a weeks training in the latest technology of their choice if they complete their project ahead of schedule. This is an example of which of the following? Achievement theory Expectancy theory Maslows theory Contingency theory HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=530996544" \l "answer.nr-qandaentry.2081C340-4052-4D58-8BBC-9C205BB3E2973AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#answer.nr-qandaentry.2081C340-4052-4D58-8BBC-9C205BB3E2973AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 12. What are the outputs of the Team Development process? Performance improvements, input to performance appraisals Input to performance appraisals, reward and recognition systems Performance improvements, input to performance appraisals, performance reports Work results, input to performance appraisals, performance reports HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=530996544" \l "answer.nr-qandaentry.D58397D7-51A4-4393-999A-38D323101F353AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#answer.nr-qandaentry.D58397D7-51A4-4393-999A-38D323101F353AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 13. Your team is split between two buildings on either side of town. As a result, the team isnt very cohesive because the members dont know each other very well. The team is still in the storming stage because of the separation issues. Which of the following should you consider? Corrective action Collocation Training Conflict resolution HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=530996544" \l "answer.nr-qandaentry.8099BD85-B791-4B3C-B502-8D92D7D7D2383AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#answer.nr-qandaentry.8099BD85-B791-4B3C-B502-8D92D7D7D2383AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 14. Your project team is a close group all busily working on project activities. Theyre close to approaching the performing stage of Team Development. All six members must communicate frequently with each other. How many lines of communication are there? 12 15 18 14 HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=530996544" \l "answer.nr-qandaentry.1E624D93-0396-4F7F-822C-66E76DA3F98C3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#answer.nr-qandaentry.1E624D93-0396-4F7F-822C-66E76DA3F98C3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 15. Project managers use this conflict resolution technique most often: Smoothing Confronting Norming Forcing HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=530996544" \l "answer.nr-qandaentry.388B8F01-69A1-41D5-9C35-13E8995E3E6B3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#answer.nr-qandaentry.388B8F01-69A1-41D5-9C35-13E8995E3E6B3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 16. You are the project manager for a web development project. You hold regular project status meetings and publish status reports on a timely basis. You know that communication is one of your most important functions. As such, all of the following are true except: Senders are responsible for sending clear, concise, complete messages. Receivers are responsible for understanding the message. Communication can be vertical or horizontal or both. Effective communication techniques include making eye contact, nodding, and asking clarifying questions.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=530996544" \l "answer.nr-qandaentry.DE6FBF86-DF56-4F46-A38E-DA170EC631533AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#answer.nr-qandaentry.DE6FBF86-DF56-4F46-A38E-DA170EC631533AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 17. You are a fabulous project manager, and your team thinks highly of you. You are well respected by the stakeholders, management team, and project team. When you make decisions, others follow your lead as a result of which of the following? Referent power Expert power Legitimate power Punishment power HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=530996544" \l "answer.nr-qandaentry.4FBC8301-93B5-40D1-B1C0-8BA8052E2CBA3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#answer.nr-qandaentry.4FBC8301-93B5-40D1-B1C0-8BA8052E2CBA3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 18. Theory Y managers believe which of the following? That people are motivated only by money, power, or position That people will perform their best if theyre given proper motivation and expectations That people are motivated to achieve a high level of competency That people are motivated by expectation of good outcomes HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=530996544" \l "answer.nr-qandaentry.FD6BC31F-1B34-4F05-8DB3-93789D7168593AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#answer.nr-qandaentry.FD6BC31F-1B34-4F05-8DB3-93789D7168593AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 19. You have accumulated project information throughout the project and need to distribute some important information you just received. All of the following are part of information distribution methods except: Electronic mail Videoconferencing Electronic databases Voice mail HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=530996544" \l "answer.nr-qandaentry.8ED30EB0-4217-4325-AAA2-333088984EF73AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#answer.nr-qandaentry.8ED30EB0-4217-4325-AAA2-333088984EF73AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET 20. You know that the next status meeting will require some discussion and a decision for a problem that has surfaced on the project. In order to make the most accurate decision, you know that the number of par-ticipants in the meeting should be limited to: 1 to 5 5 to 11 7 to 16 10 to 18 HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=530996544" \l "answer.nr-qandaentry.5C7946FF-D8F1-422A-B0B4-D40394AF137C3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#answer.nr-qandaentry.5C7946FF-D8F1-422A-B0B4-D40394AF137C3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA"  INCLUDEPICTURE "http://images.books24x7.com/bookimages/id_3964/question.gif" \* MERGEFORMATINET Answers  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=530996544" \l "nr-qandaentry.F88141AC-91A5-4E91-B807-D9F69B425A1F3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#nr-qandaentry.F88141AC-91A5-4E91-B807-D9F69B425A1F3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA" 1.D Work authorization systems are a tool and technique of the Project Plan Execution process. They formally initiate the work of each work package and clarify the assignments. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=530996544" \l "nr-qandaentry.9B4DD840-65CE-4BC4-BB25-46F6D53587CC3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#nr-qandaentry.9B4DD840-65CE-4BC4-BB25-46F6D53587CC3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA" 2.A Status meetings are to report on the progress of the project. They are not for demos or show-and-tell. Answer C is not correct as stakeholders are not concerned about the content of the technical documentation. They need to know that the technical documentation has been reviewed by a qualified technician and that the documentation task is accurate and complete. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=530996544" \l "nr-qandaentry.22CE9990-85D7-450D-936C-81A319B8ED1E3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#nr-qandaentry.22CE9990-85D7-450D-936C-81A319B8ED1E3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA" 3.C Organizational policies are an input to this process. Organizational procedures are a tool and technique. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=530996544" \l "nr-qandaentry.E9ECC756-B797-49B5-9142-F114E3AD857D3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#nr-qandaentry.E9ECC756-B797-49B5-9142-F114E3AD857D3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA" 4.B Corrective action brings anticipated future project outcomes back into alignment with the project plan. Since there is an important deadline looming that depends on a positive outcome of this test, the equipment is exchanged so that the project plan and project schedule are not impacted.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=530996544" \l "nr-qandaentry.9A2B12A2-8EEF-4260-92F2-759A2CA585FE3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#nr-qandaentry.9A2B12A2-8EEF-4260-92F2-759A2CA585FE3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA" 5.A The most difficult aspect of the Project Plan Execution process is coordinating and integrating all the project elements. The clue to this question was the next-to-last sentence, which contained this wording. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=530996544" \l "nr-qandaentry.21A336EF-46D6-4132-B07A-BD36780CED813AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#nr-qandaentry.21A336EF-46D6-4132-B07A-BD36780CED813AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA" 6.A The Executing process group and Controlling process group serve as inputs to each other.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=530996544" \l "nr-qandaentry.02CCD5FA-E887-410A-A5C6-7512D12432923AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#nr-qandaentry.02CCD5FA-E887-410A-A5C6-7512D12432923AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA" 7.B Teams in the norming stage of Team Development exhibit affection and familiarity with one another and make joint decisions. Smoothing and forcing are conflict resolution techniques, not Team Development stages. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=530996544" \l "nr-qandaentry.14C13B35-41F4-4431-9337-DB2970AEF99B3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#nr-qandaentry.14C13B35-41F4-4431-9337-DB2970AEF99B3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA" 8.C The introduction of a new team member will start the Team Development process all over again with the forming stage, which is the first stage of Team Development. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=530996544" \l "nr-qandaentry.D0470641-B729-4B93-9D99-CFBAB7E12E873AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#nr-qandaentry.D0470641-B729-4B93-9D99-CFBAB7E12E873AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA" 9.DThe performing stage is similar to Maslows self-actualization. They are both at the peak of performance, concerned with doing good and being the best. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=530996544" \l "nr-qandaentry.252A779F-7BC9-4855-BDE7-F4FA99C5E71F3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#nr-qandaentry.252A779F-7BC9-4855-BDE7-F4FA99C5E71F3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA" 10.C Receivers filter information through cultural considerations, knowledge of the subject matter, language abilities, geographic location, emotions, and attitudes. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=530996544" \l "nr-qandaentry.2081C340-4052-4D58-8BBC-9C205BB3E2973AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#nr-qandaentry.2081C340-4052-4D58-8BBC-9C205BB3E2973AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA" 11.B The Expectancy theory says that people are motivated by the expectation of good outcomes. The outcome must be reasonable and attainable. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=530996544" \l "nr-qandaentry.D58397D7-51A4-4393-999A-38D323101F353AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#nr-qandaentry.D58397D7-51A4-4393-999A-38D323101F353AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA" 12.A Performance improvements and input to performance appraisals are the Team Development outputs. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=530996544" \l "nr-qandaentry.8099BD85-B791-4B3C-B502-8D92D7D7D2383AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#nr-qandaentry.8099BD85-B791-4B3C-B502-8D92D7D7D2383AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA" 13.B Collocation would bring your team members together in the same location and allow them to function more efficiently as a team. At a minimum, team members meeting in a common room, such as a war room, for all team meetings would bring the team closer together. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=530996544" \l "nr-qandaentry.1E624D93-0396-4F7F-822C-66E76DA3F98C3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#nr-qandaentry.1E624D93-0396-4F7F-822C-66E76DA3F98C3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA" 14.B The formula to calculate lines of communication for this question is as follows: [6 (6 1)] 2 = 15. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=530996544" \l "nr-qandaentry.388B8F01-69A1-41D5-9C35-13E8995E3E6B3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#nr-qandaentry.388B8F01-69A1-41D5-9C35-13E8995E3E6B3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA" 15.B Confronting is a problem-solving technique that seeks to determine the facts and find solutions based on the facts, and that results in a win-win resolution for all parties. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=530996544" \l "nr-qandaentry.DE6FBF86-DF56-4F46-A38E-DA170EC631533AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#nr-qandaentry.DE6FBF86-DF56-4F46-A38E-DA170EC631533AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA" 16.D Making eye contact, nodding, and asking clarifying questions are good listening skills, which are related to communication skills. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=530996544" \l "nr-qandaentry.4FBC8301-93B5-40D1-B1C0-8BA8052E2CBA3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#nr-qandaentry.4FBC8301-93B5-40D1-B1C0-8BA8052E2CBA3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA" 17.A Referent power is power that is inferred on a leader by their sub-ordinates as a result of the high level of respect for the leader.  HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=530996544" \l "nr-qandaentry.FD6BC31F-1B34-4F05-8DB3-93789D7168593AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#nr-qandaentry.FD6BC31F-1B34-4F05-8DB3-93789D7168593AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA" 18.B Theory Y managers believe that people will perform their best if theyre provided with the proper motivation and the right expectations. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=530996544" \l "nr-qandaentry.8ED30EB0-4217-4325-AAA2-333088984EF73AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#nr-qandaentry.8ED30EB0-4217-4325-AAA2-333088984EF73AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA" 19.C Electronic databases are a type of information retrieval system, not a distribution method. HYPERLINK "http://www.books24x7.com/book/id_3964/viewer_r.asp?bookid=3964&chunkid=530996544" \l "nr-qandaentry.5C7946FF-D8F1-422A-B0B4-D40394AF137C3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA#nr-qandaentry.5C7946FF-D8F1-422A-B0B4-D40394AF137C3AB246B6-934B-4FD0-8BBE-AAD6BE1C4EEA" 20.B Group sizes of 5 to 11 participants make the most accurate decisions.     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#v:V 655 234ytc}$$If!vh5 5#v #v:V 655 234ytc}$$If!vh5 5#v #v:V 655 234ytc}$$If!vh5 5#v #v:V 655 234ytc}$$If!vh5 5#v #v:V 655 234ytc}$$If!vh5 5#v #v:V 655 234ytcYDdH - S $A_ b \aR+d;n \aRPNG  IHDR(4PLTE@ @ @@@@@``@``@@@@ @ @ @ @@ @ @ ` `@ ` ` @ @ @ @ @@@@@@ @ @@ @ @@@@@@@@@@`@`@@`@`@@@@@@@@@@@@@@@@@@@@``@``` ` @` ` `@`@@`@`@````@``````@````@````@````@``@ @ @@@@@``@``@@@@@ @ @@@@@``@``@@@@@ @ @@@@@``@``@@@@@ @ @@@@@``@``@@@@0tRNSS%bKGDH cmPPJCmp0712Hs IDATWcZMoIENDB`h$$If!vh5#v:V K6,534 ytcT3Dd< . s hA questionIMG_2Image from book bS[{ Eɢ/j;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 ytc3Dd< / s hA questionIMG_2Image from book bS[{ Eɢ/wn;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 ytc3Dd< 0 s hA questionIMG_2Image from book bS[{ Eɢ/-r;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 ytc3Dd< 1 s hA questionIMG_2Image from bookbS[{ Eɢ/u;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 ytcDd<0 2 s A questionIMG_2DA project is considered successful when stakeholder needs and expectations are met or exceeded. bS[{ Eɢ/y;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 ytc3Dd< 3 s hA questionIMG_2Image from bookbS[{ Eɢ/};n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 ytc3Dd< 4 s hA questionIMG_2Image from bookbS[{ Eɢ/;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 ytcDd<  5 s A ÞquestionIMG_2DThe triple constraints that drive all projects are time, money, and quality. bS[{ Eɢ/_;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 ytc3Dd< 6 s hA questionIMG_2Image from bookbS[{ Eɢ/;n'[{ EɢPNG  IHDRm1`bKGD̿ 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b 65< 5 234ytcx$$If!vh5 5#v #v:V b 65< 5 234ytcx$$If!vh5 5#v #v:V b 65< 5 234ytcx$$If!vh5 5#v #v:V b 65< 5 234ytcx$$If!vh5 5#v #v:V b 65< 5 234ytcx$$If!vh5 5#v #v:V b 65< 5234ytc3Dd<  s hA questionIMG_2Image from book,bS[{ Eɢ/66;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 ytcDd<  s A ìquestionIMG_2AThe buyer provides product descriptions when projects are performed under contract. -bS[{ Eɢ/9;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 ytc3Dd<  s hA questionIMG_2Image from book.bS[{ Eɢ/.>;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ 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book9bS[{ Eɢ/g;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 ytc3Dd< & s hA questionIMG_2Image from book:bS[{ Eɢ/j;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 ytc3Dd< ' s hA questionIMG_2Image from book;bS[{ Eɢ/ln;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 ytcDd< ( s A pquestionIMG_2BConstraints restrict the actions of the project team. <bS[{ Eɢ/"r;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP 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s hA questionIMG_2Image from bookDbS[{ Eɢ/;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 ytJ3Dd< F s hA questionIMG_2Image from bookEbS[{ Eɢ/;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 ytJDd<  G s A àquestionIMG_2BProjects with NPV greater than zero should be given an accept recommendation. FbS[{ Eɢ/T;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 ytJDd< H s A îquestionIMG_2BProjects with the highest IRR value are favored over projects with lower IRR values. GbS[{ Eɢ/;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 ytJDd< I s A ÒquestionIMG_2ANet present value assumes reinvestment is made at the cost of capital. HbS[{ Eɢ/;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 ytJ3Dd< J s hA questionIMG_2Image from bookIbS[{ Eɢ/;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 ytJDd<* K s A þquestionIMG_2DIRR assumes reinvestment at the IRR rate and is the discount rate when NPV is equal to zero. JbS[{ Eɢ/;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 ytJ3Dd< L s hA questionIMG_2Image from bookKbS[{ Eɢ/;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 ytJ3Dd< M s hA questionIMG_2Image from bookLbS[{ Eɢ/;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 ytJ3Dd< N s hA questionIMG_2Image from bookMbS[{ Eɢ/l;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ 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65d5534 ytDd< o s A ÒquestionIMG_2BThe scope management plan assesses the stability of the project scope. nbS[{ Eɢ/;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 yt3Dd< p s hA questionIMG_2Image from bookobS[{ Eɢ/!;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 yt3Dd< q s hA questionIMG_2Image from bookpbS[{ Eɢ/מ;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 yt3Dd< r s hA questionIMG_2Image from bookqbS[{ Eɢ/;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 yt3Dd< s s hA questionIMG_2Image from bookrbS[{ Eɢ/C;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 yt3Dd< t s hA questionIMG_2Image from booksbS[{ Eɢ/;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 yt3Dd< u s hA questionIMG_2Image from booktbS[{ Eɢ/;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 yt3Dd< v s hA questionIMG_2Image from bookubS[{ Eɢ/e;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 ytDdSS w s A ÄquestionIMG_2CThe WBS is the deliverables-oriented hierarchy of project work. vbS[{ Eɢ/;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 ytk$$If!vh5{5 #v{#v :V 65d534 ytk$$If!vh5{5 #v{#v :V 65d534 ytk$$If!vh5{5 #v{#v :V 65d534 ytk$$If!vh5{5 #v{#v :V 65d534 ytk$$If!vh5{5 #v{#v :V 65d534 ytk$$If!vh5{5 #v{#v :V 65d534 ytk$$If!vh5{5 #v{#v :V 65d534 ytk$$If!vh5{5 #v{#v :V 65d534 ytk$$If!vh5{5 #v{#v :V 65d534 ytk$$If!vh5{5 #v{#v :V 65d534 ytk$$If!vh5{5 #v{#v :V 65d534 ytk$$If!vh5{5 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All Rights Reserved.descAdobe RGB (1998)XYZ QXYZ curv3curv3curv3XYZ OXYZ 4,XYZ &1/Adobed@         s!1AQa"q2B#R3b$r%C4Scs5D'6Tdt& EFVU(eufv7GWgw8HXhx)9IYiy*:JZjzm!1AQa"q2#BRbr3$4CS%cs5DT &6E'dtU7()󄔤euFVfvGWgw8HXhx9IYiy*:JZjz ?wv]STvyh3]Oc,+32XRN*?I~Oԋ>h]*K] F*R_"_1WʒB}ъTHU'Eпo4b%?R.pw/t/I~Oԋ>h]*K] F*R_"_1WʒB}ъTHU'Eпo4b%?R.pw/t/?Y^?_w_SZz|x*VI" OtXoޭhUiz gm[3Q@_>k^pvwc &#,ZR>\~-gߔv/1o-Bi(Jqnd V [Uߚmji%-G6Ko1 @A'Qտ:0,kt8hXo^VWe)yn*/*7Yg358ol`b>lw9ʲ`VO̍c'TԵo.5u$ڴNvѿ%J8b?\>rƭy5妧/^9h", ;X9EpYYW5nj~vK=w4pE>AsZ&gf$tkpdȁ y N¾!r{]/VmR{;m4EOLT45SgU^I|M+\Ԡ$J1:9-?h&I" OtYȊ!#JD9+@OZ 1E Q#UVpj7 ZDG%P "w;UEJpUрe JIn% E!>j튷%aq,YT5J~5_ UVfEP@Rզ*.Bd\)zefo5Qw ^~*-i8cYT U뷎*FSĀzѨQ⪍adRZM7#[k+7 & ϐ(9x  \8kOMJRdت"E U U#I" OtY*UثWb]v*UثWb]x?p_I" OtRM 1y;?7ŤXidTl4ŢiZͥo{nYI$S;b[?.ث_Qb3GpKo+ ?[lU\( mUUo-c-<|QNƅ?=*|኿I" OtT*?z_47ˋ3jη/LE1nK$F?mCbVMJgŧZ*Y Ӎ2imIG$,rKN[>*MO4qaiY4Z)8LJZ%r_.fuCWvS KտmK]#B# RY\r^Wmg/uk(MdEC}C.I!'P>%튲??x=?:5UѓyDZTBdZL6- +zߚ0noNQ̶RIkx!*ֹyvgF=R+4+EdTec =a) TSqU=̞cghxQDo*RkUH 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cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 ytwFrDd<  s A òquestionIMG_2APrecedence diagramming methods are also known as activity on node diagramming methods. bS[{ Eɢ/;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 ytwFrDd<2  s A questionIMG_2DPDM uses one time estimate to determine duration, while ADM can use more than one time estimate. bS[{ Eɢ/ɺ;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 ytwFrDd<"  s A öquestionIMG_2AGERT is a conditional diagramming method that 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questionIMG_2Image from bookbS[{ Eɢ/;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 ytwFrDd<  s A nquestionIMG_2D Parametric modeling is a Cost Estimating technique. bS[{ Eɢ/k;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 ytwFr3Dd<  s hA questionIMG_2Image from bookbS[{ Eɢ/o;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 ytwFr3Dd<  s hA questionIMG_2Image from bookbS[{ Eɢ/%;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 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)/^TQ@`[]v*Uث*UثV2y͚?o=ơc{q5¢A&gODai+uXQUi5wUSTUO*?N*~ee֙m M3_ɦ=i5jL?N*UثWU76']*'QoWS/=1]:"Y*UثWb]*UثVEi>]QaW~ůf<&IV( yr1gI)o.?{Uث`?_yX?Ro5m-z Kw4`̦@( *:srSY5DbPx<c~D7v_DT;$g6N9D58M)Hb~:ߜֿ5'Y%Y}&ٗuk ɗO؋W*"*(TPT @*v*UثWb]*UثVEi>^7~hz.Ӟ[h5*-t}JHm.Z Aw^emj! w2'[͎>5o<-Nn @-.?D5;_O-Gi]|8M \O/okj^&WZpX_!co-:G͸0:lveqW~Nz[^o$<~1"⬗v*UثWb]v*U*UثVEi>Xߓ|gm4s%橨j"rܝ7Y&*|)o.?{UثWbQko2bNk0/PF w')䅣7en.qTB.mD{aaq6ٛXG&c)ɋ~[*ʳUySOmOY*UثWb]v*UثW*UثWyo3򝝅t=\~,U7gKVxU_/[㚏1V5`vX؍b&_Ley$6Z|8Wb]S6+uynWXq,UjƴmM]v*UثWb]v*3Dd<  s hA questionIMG_2Image from bookbS[{ Eɢ/;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 yto3Dd<  s hA questionIMG_2Image from bookbS[{ Eɢ/;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 ytoDd<"  s A öquestionIMG_2BA RAM is a Responsibility Assignment Matrix used in the Organizational Planning process. bS[{ Eɢ/h;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 ytoDd<,  s A questionIMG_2AGERT is the only Schedule Development tool that allows for conditional branching and looping. bS[{ Eɢ/;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 yto3Dd<  s hA questionIMG_2Image from bookbS[{ Eɢ/ ;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 yto3Dd<  s hA questionIMG_2Image from bookbS[{ Eɢ/;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 yto3Dd<  s hA questionIMG_2Image from bookbS[{ Eɢ/v;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 yto3Dd<  s hA questionIMG_2Image from bookbS[{ Eɢ/,;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 yto3Dd<  s hA questionIMG_2Image from bookbS[{ Eɢ/;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 yto3Dd<  s hA questionIMG_2Image from bookbS[{ Eɢ/;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 yto3Dd<  s hA questionIMG_2Image from bookbS[{ Eɢ/N;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 yto3Dd<  s hA questionIMG_2Image from bookbS[{ Eɢ/;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 yto3Dd<  s hA questionIMG_2Image from bookbS[{ Eɢ/;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 yto3Dd<  s hA questionIMG_2Image from bookbS[{ Eɢ/p;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 ytoDd<,  s A questionIMG_2BFuture period operating costs are considered ongoing costs and are not part of project costs. bS[{ Eɢ/&;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 yto3Dd<  s hA questionIMG_2Image from bookbS[{ Eɢ/|;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 ytoDdSS6  s A questionIMG_2CThe project plan might be one document or a collection of documents organized in a logical format. bS[{ Eɢ/2;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 ytok$$If!vh5{5 #v{#v :V 65d534 ytok$$If!vh5{5 #v{#v :V 65d534 ytok$$If!vh5{5 #v{#v :V 65d534 ytok$$If!vh5{5 #v{#v :V 65d534 ytok$$If!vh5{5 #v{#v :V 65d534 ytok$$If!vh5{5 #v{#v :V 65d534 ytok$$If!vh5{5 #v{#v :V 65d534 ytok$$If!vh5{5 #v{#v :V 65d534 ytok$$If!vh5{5 #v{#v :V 65d534 ytok$$If!vh5{5 #v{#v :V 65d534 ytok$$If!vh5{5 #v{#v :V 65d534 ytok$$If!vh5{5 #v{#v :V 65d534 ytok$$If!vh5{5 #v{#v 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reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 yt3Dd<  s hA questionIMG_2Image from bookbS[{ Eɢ/;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 yt3Dd<  s hA questionIMG_2Image from bookbS[{ Eɢ/;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 ytDd<"  s A öquestionIMG_2AThe Executing process group and Controlling process group serve as inputs to each other. bS[{ Eɢ/p;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 yt3Dd<  s hA questionIMG_2Image from bookbS[{ Eɢ/;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 yt3Dd<  s hA questionIMG_2Image from bookbS[{ Eɢ/r;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 yt3Dd<  s hA questionIMG_2Image from bookbS[{ Eɢ/(;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 yt3Dd<  s hA questionIMG_2Image from bookbS[{ Eɢ/ް;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 yt3Dd<  s hA questionIMG_2Image from bookbS[{ Eɢ/;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 ytDd<.  s A questionIMG_2APerformance improvements and input to performance appraisals are the Team Development outputs. bS[{ Eɢ/J;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 yt3Dd<  s hA questionIMG_2Image from bookbS[{ Eɢ/;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 yt3Dd<  s hA questionIMG_2Image from bookbS[{ Eɢ/X;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 yt3Dd<  s hA questionIMG_2Image from bookbS[{ Eɢ/;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 yt3Dd<  s hA questionIMG_2Image from bookbS[{ Eɢ/;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 yt3Dd<  s hA questionIMG_2Image from bookbS[{ Eɢ/z;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 yt3Dd<  s hA questionIMG_2Image from bookbS[{ Eɢ/0;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 ytDd<(  s A üquestionIMG_2CElectronic databases are a type of information retrieval system, not a distribution method. bS[{ Eɢ/;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 ytDdSS  s A ÐquestionIMG_2BGroup sizes of 5 to 11 participants make the most accurate decisions. bS[{ Eɢ/8;n'[{ EɢPNG  IHDRm1`bKGD̿ cmPPJCmp0712`IDAT(S%Q=kUQ=A}m-EFKADB:_@Ҥ.ERX 5Owq9v1UTE D 7weHsPP reݽgRѧ7ξZ?/Ì9a`s9W5I/ OHz籸^b'Qj{xpfɏ/vySRXV[sC;>1wlِH,Oj/4q6mEǪ 4MEz[ar A2 c9(S[9X>8F+6܌saV K2¤$]J/L]aIENDB`$$If!vh5{55#v{#v#v:V 65d5534 ytk$$If!vh5{5 #v{#v :V 65d534 ytk$$If!vh5{5 #v{#v :V 65d534 ytk$$If!vh5{5 #v{#v :V 65d534 ytk$$If!vh5{5 #v{#v :V 65d534 ytk$$If!vh5{5 #v{#v :V 65d534 ytk$$If!vh5{5 #v{#v :V 65d534 ytk$$If!vh5{5 #v{#v :V 65d534 ytk$$If!vh5{5 #v{#v :V 65d534 ytk$$If!vh5{5 #v{#v :V 65d534 ytk$$If!vh5{5 #v{#v :V 65d534 ytk$$If!vh5{5 #v{#v :V 65d534 ytk$$If!vh5{5 #v{#v :V 65d534 ytk$$If!vh5{5 #v{#v :V 65d534 ytk$$If!vh5{5 #v{#v :V 65d534 ytk$$If!vh5{5 #v{#v :V 65d534 ytk$$If!vh5{5 #v{#v :V 65d534 ytk$$If!vh5{5 #v{#v :V 65d534 ytk$$If!vh5{5 #v{#v :V 65d534 ytk$$If!vh5{5 #v{#v :V 65d534 ytk$$If!vh5{5 #v{#v :V 65d534 yt'@@@ NormalCJ_HaJmH sH tH Z@Z | Heading 1$<@&5CJ KH OJQJ\^JaJ N`"N | Heading 2dd@&[$\$5CJ$\aJ$N`2N | Heading 3dd@&[$\$5CJ\aJF`BF | Heading 4dd@&[$\$5\N`RN | 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