INSY 5373 1st EditionExam # 1 Study Guide Lectures: 1 - 8Lecture 1(January 21)• Project Defined– A complex, non-routine, one-time effort limited by time, budget, resources, and performance specifications designed to meet customer needs• Project Management Body of Knowledge (PMBOK) Definition– A temporary endeavor undertaken to create a unique product, service, or result • The temporary nature of projects indicates that a project has a definite beginning and end• End is reached when the project’s objectives have been achieved or the project is terminated• Temporary does not typically apply to the product, service, or result created by the project• Program Defined– A series of coordinated, related, multiple projects that continue over an extended time and are intended to achieve a goal– A higher level group of projects targeted at a common goal– Example:• Project: completion of a required course in project management• Program: completion of all courses requiredfor a business major• PMBOK Definition:– A group of related projects, subprograms, and program activities that are managed in a coordinated way to obtain benefits not available from managing them individuallyLecture 2 (January 28)Four Strategic Management Process Activities1. Review and define the organizational mission2. Analyze and formulate strategies3. Set objectives to achieve strategyA Portfolio Management System• Design of a project portfolio system:– Classification of a project– Selection criteria depending upon classification– Sources of proposals– Evaluating proposals– Managing the portfolio of projectsFinancial Models• The Payback Model– Measures the time the project will take to recover the project investment.– Uses more desirable shorter paybacks.– Emphasizes cash flows, a key factor in business.• Limitations of Payback:– Ignores the time value of money.– Assumes cash inflows for the investment period (and not beyond).– Does not consider profitability.The Triple Constraint- Cost-Doing it cheaply or on budget- Schedule-Doing it quickly or on schedule- Performance (quality outcomes)-Exactly what needs to be accomplishedProject Management Structures• Challenges to Organizing Projects– The uniqueness and short duration of projects relative to ongoing longer-term organizational activities– The multidisciplinary and cross-functional nature of projects creates authority and responsibility dilemmas• Choosing an Appropriate Project Management Structure– The best system balances the needs of the project with the needs of the organizationDifferent Matrix Forms• Weak Matrix– The authority of the functional manager predominates and the project manager has indirect authority• Balanced Matrix– The project manager sets the overall plan and the functional manager determines how work to be done• Strong Matrix– The project manager has broader control and functional departments act as subcontractors to the projectLecture 3(February 4)Defining the ProjectStep 1: Defining the Project ScopeStep 2: Establishing Project PrioritiesStep 3: Creating the Work Breakdown StructureStep 4: Integrating the WBS with the OrganizationStep 5: Coding the WBS for the Information SystemWork Breakdown Structure (WBS)- An hierarchical outline (map) that identifies the products and work elements involved in a project.- Defines the relationship of the final deliverable (the project) to its subdeliverables, and in turn, their relationships to work packages.- Best suited for design and build projects that have tangible outcomes rather than process-oriented projects.Work package - It is output-oriented in that it:o Defines work (what)o Identifies time to complete a work package (how long)o Identifies a time-phased budget to complete a work package (cost)o Identifies resources needed to complete a work package (how much)o Identifies a person responsible for units of work (who)o monitoring points (milestones) for measuring successLecture 4(February 11)Estimating The process of forecasting or approximating the time and cost of completing project deliverables The task of balancing expectations of stakeholders and need for control while the project is implementedTypes of Estimates Top-down (macro) estimates: analogy, group consensus, or mathematical relationships Bottom-up (micro) estimates: estimates of elements of the work breakdown structureTypes of costs Direct Costso Costs that are clearly chargeable to a specific work package Labor, materials, equipment, and other Direct (Project) Overhead Costso Costs incurred that are directly tied to an identifiable project deliverable or work package Salary, rents, supplies, specialized machinery Again, better to use loaded rates in the Resource Sheet General and Administrative Overhead Costso Organization costs indirectly linked to a specific package that are apportioned to the projectThe Project Network A flow chart that graphically depicts the sequence, interdependencies, and start and finish timeTerminology Activity: an element of the project that requires time Merge Activity: an activity that has two or more preceding activities on which it depends Parallel (Concurrent) Activities: Activities that can occur independently and, if desired, not at the same timeTwo Approacheso Activity-on-Node (AON) Uses a node to depict an activityo Activity-on-Arrow (AOA) (last you will hear about it) Uses an arrow to depict an activity Not included in 6th edition of textbook Not available for use in MS ProjectForward Pass Computation• Add activity times along each path in the network (ES + Duration = EF)• Carry the early finish (EF) to the next activity where it becomes its early start (ES) unless…• The next succeeding activity is a merge activity, in which case the largest EF of all preceding activities is selectedBackward Pass Computation• Subtract activity times along each path in the network (LF - Duration = LS)• Carry the late start (LS) to the next activity where it becomes its late finish(LF) unless• The next succeeding activity is a burst activity, in which case the smallest LF of all preceding activities is selectedLecture 5(February 25)Risk- Uncertain or chance events that planning cannot overcome or controlRisk Management- A proactive attempt to recognize and manage internal events and externalthreats that affect the likelihood of a project’s success• What can go