Life and Spiritual Coaching

May 28, 2008

PMP Notes for Human Resource Management

Filed under: PMP — by Donna Ritter @ 6:44 pm
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  • Responsibility Assignment Matrix (RAM) – people who are working on tasks identified on the WBS
  • Staffing Management Plan – when and how you need to hire what kind of talent
  • Learning Curve Theory – the cost to produce an item will decrease each time the production is doubled
  • Leading – establishing direction, aligning people and motivating and inspiring the team
  • Staff selection – base on previous experience, personal interests, personal characteristics, availability, competencies and proficiency
  • Reward and recognition – based on separately budgeted controllable cost; clear, explicit, achievable and cultural
  • Scientific Management – clear and specific procedures result in effeciency and motivation
  • Expectancy theory – results can be applied bu treating people with encouragement, givings them a sense of recognition and achievement, and giving praise publicly and criticism privately
  • Maslov theory – hierarchy of needs; 5 levels (physiological, safety, love and affection, esteem and self actualization); lower needs met first
  • Hertzberg theory – motivation/hygiene;hygiene factors need to be maintained;motivators or satisfiers are a sense of achievement and a sense of recognition for things done, the work itself, responsibility, advancement, growth etc. the dis-satisfiers or hygiene factors are company policies, relationships with supervisor, personal factors, status, security,  and others. Maintain hygiene factors by having a good working personal policy and good leadership practices, feeling of achievement, and recognition for work done; responsibility and empowerment.  
  • McGregor theory – Theory X managers think that all people are basically lazy and that unless they are threatened or in some way forced to do work, they will not do any work. These managers work direct work to be done and do not allow very much participation in any decision making. Theory Y managers think that people will do a good job for the sake of doing it. They believe in participative management and sharing information with the worker. These managers also listen to problems that are brought by their staff.
  • Theory Z – this theory believes that high levels of trust, confidence and commitment to work on the part of management leads to high levels of motivation and productivity.
  • Job design – change negative attitudes
  • Job enrichment – plan and control included; for motivational effects; a lack of boredom, a feeling that the work is meaningful, a feeling of being responsible, for the consequences of what work is done and how it is done and a feeling of competence in accomplishing the task.
  • Quality Circles – ad-hoc; volunteer group; address quality problems
  • Outputs from team development – performance improvements and input to performance appraisals
  • Project required direct and indirect costs for training are generally paid by the performing organization
  • Coercive and reward power depends on the person being influenced believing that the the thing being requested can actually be done, that the reward or punishment can actually be given by the influencer, and that the reward or punishment is sufficient to motivate the person being influenced to do the work.
  • Legitimate power – formal authority
  • Referent power – charismatic and virtues of the leader give him power
  • Expert power – knowledge or ability
  • Representative power – delegated
  • Conflict resolution – frustration acceptable; 5 ways of resolving conflicts: forcing, smoothing, compromising, problem solving (confrontation), withdrawing.
  • Forcing – permanent solution, win-win lose approach, not good for building teams
  • Smoothing – minimizing disagreement by making differences seem less important; demphasize area of difference, good for team but conflict may return
  • Compromise – give up something to reach a common ground
  • Problem solving (confrontation) – all disagreements must have one correct solution
  • Withdraw – worst; negative; “Cooling off”
  • For most meetings 10 people are optimum. Have a clear agenda, facilitator and time keeper. Things off the agenda are not discussed but a new meeting will be scheduled to discuss.

PMP Notes for Quality Managment

Filed under: PMP — by Donna Ritter @ 6:38 pm
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  • Quality – characteristics; ability to satisfy stated or implied needs; conformance to requirements; fitness for use
  • Grade – a category or rank given to entities having the same functional use but use different technical characteristics. Determining and delivering the required levels of both quality and grade are the responsibilities of the Project Manager and project management team.
  • Modern quality management complements project management in customer satisfaction, prevention over inspection, management responsibility and processes within phases (plan-do-act-check).
  • Quality planning – determine quality standards; may need to modify organization quality policy, stakeholders fully aware, have inputs from the scope statement, product description and other related processes; risks weighed.
  • Quality assurance – monitor overall quality; provide confidence that the project will satisfy the relevant quality standards; through the project; internal and external.
  • Quality Control – measure specific quality
  • The quality assurance and control processes share the same inputs as the quality management plan and operational definitions, which are outputs of the quality planning. The work results and checklists are inputs to the quality control while the results of quality control measurements input to quality assurance. The outputs of both have quality improvement.
  • Cost of quality – tools of quality planning, prevention, appraisal,  and failure (prevention, evaluation, repair)  costs the  the latter is broken down into internal and external costs; memeasurement and test equipment costs. Deming  said “85% of the cost of quality are the direct responsibility of management”.
  • Metrics – operational definitions; output of quality planning; specify what and how to measure.
  • Quality inspection – attributes or measurements
  • Attribute sampling – result can either conform or not; fast; cheap; accurate
  • Variables sampling – result rated in a continuous scale that measures the degree of conformity
  • AQL (acceptable quality level)- % limit to accept; AQL 5% in 100 means that among 100 tested, of no more than 5 unqualified are found it will be acceptable.
  • “Buyer’s Risk” – unqualified products are shipped to the customer as the result of sampling not being able to detect issues
  • “Seller’s Risk” – qualified products are rejected to ship to the customer as the result of sampling not treating the whole
  • In a control chart, the X is the mean value of the process data; X bar is the line. The Upper Control Limit (UCL) is 3* SD, the LCL (lower control limit is -3*SD.
  • R chart means the range chart. Usually the sample’s range is calculated and the R is the mean of the range. R bar is the line.
  • Usually the sample average ford not equal to the control average, X bar can be a calculated value or intentionally set up to manage the control.
  • “Rule of 7” – if there are 7 or more points in succession that are either above or below the mean value there is cause for concern about the process.
  • Special causes – unusual events; specific people operating; intermittent and unpredictable; output is not stable over time and unpredictable; output is not stable oer time and not predictable; all processes must be brought into statistical control by first detecting and removing the Special cause variation.
  • Common causes – system design; only corrected by  the management; output distribution stable over time; no adjustment; normal process variables
  • Kaizen – continuous quality improvement; even the processes are operating without problem

 

PMP Notes for Project Cost Managment

Filed under: PMP — by Donna Ritter @ 6:28 pm
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These are just notes I had during my PMP study sessions More can be said and examples given for all of these notes.

  • Price – what customer is willing to pay; justify the cost
  • Cost – resources consumed; spending –  time phased expenditures
  • “50 – 50 rule” – 50% of the earned value is credited as earned value when the activity begines. The remaining 50% is not credited until all the work is done.
  • Resource planning – affected by the nature of the project and organization.
  • Life cycle costing – product/ service future committments (guaruntees, warrenties and ongoing services)
  • Value engineering – creative approach used to optimize life cycle costs, save time, increase profits, improve quality, expand market share, solve problems, and/or use resources more effectively. It is used with life cycle costing to reduce cost and time, improve quality and performance and optimize the decision-making. A technique used in product analysis in the scope planning process.
  • “Order of magnitude scheduling” – beginnning; -25% to +75%
  • Budget scheduling  -10% to +25%
  • Definitive estimate  -5% to +10%
  • Bottom up scheduling – definitive; rolling up the items of the WBS, -5% to +10%; higher cost and longer time to get estimate
  • Top Down scheduling – limited infomrmation; on single estimate; not very accurate
  • Anallogous scheduling – top downl; use of experts; for example, a 1000 sq foot house costs $50 for each foot in the past, now a 1000 new one should have the same cost and a 3000 sq foot one should cost 3 times more.
  • Parametric – top down; use parameters; statistical relationsips; most likely to be reliable when 1) historical information used to develop the model is accurate; 2) the parameters used in the model are readily quantifiable; 3) the model is scalable (i.e. it works well for a very large project as well as a very small project). For example, a 1000 sq ft house costs $50 for each foot in the past and the new house has 3000 sq ft so the new cost should be 3000*$50.
  • Cost budgeting – allocating; include cost of risk reponses; contigency plans and management reserve for unidentified risks.
  • Variances many have differt impact over project phases. Earlier variances are more significant.
  • Earned Value – approved cost estimates for activities completed during a given period. IT usually comes from the budget unit cost with actual units.
  • Cost performance index (CPI) = Earned Value (EV) / Actual cost (AC), the amount of work accomplished per dollar spend.
  • Cost variance (CV) = EV – AC
  • Schedule Performance index (SPI) =  EV – Present Value (PV)
  • Critical ration = CPI * SPI
  • Estimate at completion (EAC) can be calculated different ways; When it is based on project performace and risk quatificaiton, current variances are typical. EAC = BAC/CPI or EAC = AC + (BAC-EV/(CPI * SPI)
  • A more optimistic calculation when current variances are atypical and similar variances are not likely to occur in the future: EAC = AC + BAC – EV
  • The estimate to complete (ETC) = EAC – EV = BAC/CPI – EV = BAC/EV*AC – EV
  • Estimated time to complete is the budgeted tome to complete / SPI
  • Variance at completion (VAC) = EAC – BAC
  • Project completed, EV = PV. All values available to e earned have been earned
  • Level of effort costs – AC = EV, earned on passage of time
  • Spending variance = Present value (PV) – Actual value (AC)
  • Project physical progress valued by schedule variance EV – PV. You are ahead of if this calculation is >0.
  • If a project is over budget 25% during project phases, the project wil be completed with an iver budget condition greater than 25%
  • Economic Value Added (EVA) – net profit compensates for cost of assets
  • Sum of hte year’s digits method – 5 year, total is 5+4+3+2+1=15, first year 5/15, second year 4/15, third yeat 3/15…
  • Double declining balances – 50% off the book value each year
  • The total project budget contains the operating project budget or baseline, the contingency reserve and the management reserve. The projet baseline is increased by the amount of risk although the total project budget stays the same.

 

PMP Project Time Management Notes

Filed under: PMP — by Donna Ritter @ 6:20 pm
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My notes on Time Management for the PMP test.

 

     ·Baseline – original approved with approved change 

·Work Breakdown Structure: WBS – most central item; deliverable oriented;

 The WBS helps to define scope. One teacher told me if you do not know the answer to a

 question, it is probably WBS.

·Refinements = WBS updates; Revisions = Schedule updates

 (usually a result of scope/cost change, start/finish date)

·Work package – lowest level to manage; lowest level of WBS;

 assigned to one person; broken into activities, and then discrete tasks;

 level-of-effort, proportionate

·WBS dictionary – work package descriptions; schedules; budgets;

 and staff assignments

·CWBS, Contractual WBS – when and what information supplied

 to the buyer

·OBS, Organizational BS – relate work package to individuals and

 resources; organizational WBS

·Change control process – set up in scope definition; implemented with baseline;

 authorized change; itself need to be authorized

·Dependencies – mandatory, discretionary, or external; restricted by constraints

·Project network diagrams – activities and the logical relationships; explanation of their

 sequencing; PERT chart; PDM is a method

·Activity duration estimates – specific numbers, range, possibility; 2 weeks ± 2 days

 or 85% probability 3 weeks or less

·Leads – start earlier; -; FS –2 the successor start 2 days earlier before the finish of the

 predecessor

·Lags – more time needed, +; FS +2 the successor start 2 days later after the

 finish of predecessor

·Effort – people-hours; estimated cost

·Duration – time to do a task; only working time

·Span – time that elapsed between the start and finish; considered in activity

 duration estimating

·Total float, or Slack = LF – EF or LS – ES based on duration, not activity

·Total float (slack) – time of activity can be delayed without causing a delay in

 the overall project time; negative float not enough time; accident of the logic;

 no risk consideration involved; chain activity floats are all the same but can only

 be used once

· Free float – time of activity can be delayed without delaying the early start of

 any immediately following activities; no negative; occur when two or more

 activities share a common successor

·Float variance analysis – sorted sub critical activities analyzed

·Critical path – group of activities; “zero float”; longest path; shortest

 finish time; could not delay without delaying the project no resource constraints

 considered; deterministic numbers; not critical activities, just activity duration;

 may change as time progresses; may have more than 1

·Overloaded resources may result inefficiencies

·Resource leveling – accommodate resource constraint; result longer than

 preliminary schedule; adjustments to critical activities; reduce the over-utilization

 of resources. This is very easy to use with Microsoft Project Server.

·Critical chain – schedule with resource limits; buffers used; time/resource/risk

·Crashing – doing anything to reduce delay; often higher cost; time/cost optimization

·Fast tracking – overlapping of project phases or activities; often rework or higher risk.

· A project schedule should not be adjusted by lengthening the duration of the activities

·Buffering – increase schedule or reduce risk; using lags in the relationships

 or creating buffer activities (create a duplicate activity for each activity that is to be buffered)

·Gantt Charts – timing and orders; hide relationships and resource requirements

·PERT, Project Evaluation and Review Technique

·Expected Value = (Optimistic + 4*Most Likely + Pessimistic)/6

 Normally, the expected value is higher than the average value and  

 the most likely value because most activities take more time rather than less.

 The most likely value has a higher probability than the expected value (Standard Deviation =

(Pessimistic – Optimistic)/6

·95.5% probability of being within 2* Standard Deviation of the expected value (mean value)

·99.7% probability of being within 3*Standard Deviation of the expected value

·Project duration – only the critical path duration and SD

·In PERT, if the scheduled project completion time and sum of the average completion

 time for critical path activities are the same, the probability of completing the project

 on schedule is estimated at 50%, assuming no other paths are near-critical.

·PERT assumptions – stable critical path; “Beta” probability distribution; defined time;

 resource free; cost direct of time; no time value

·GERT, Graphic Evaluation and Review Technique – simulation; probability distributions

 and conditional logic; looping

·The result of CPM, PERT, GERT dates are not the schedule, but rather indicate the

 time periods within which the activity could be scheduled given resource limits and

 other known constraints.

·Monte Carlo – simulation; result probability of each possible date or cost;

 You need pessimistic, optimistic, and most likely values and likelihood of the estimate between

 the optimistic and most likely values

·Simulation – uncertainties translated into impacts and possibilities; used in schedule

 development & quantitative risk analysis; Monte Carlo, GERT, What-if;

·The project schedule remains preliminary until resource assignments have

  been confirmed. This would usually happen no later than the completion of project

  plan development.

·The supporting details of the project schedule – resource requirements by time period;

 Alternative schedules and schedule contingency reserves may be used.

·When risk occurs, schedule baseline will be adjusted to include the contingency

 reserve time, which will be deducted from the reserve pool.

 

PMP Integration Notes

Filed under: PMP — by Donna Ritter @ 5:57 pm
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·         Project management – application of knowledge, skills,

       and techniques to project  activities to meet or exceed

       stakeholder needs and expectations

·         Operations and projects share many characteristics: performed

       by people; constrained by limited resources; planned, executed 

       and controlled

·         Project – temporary endeavor; unique product or service; beginning

       and ending; life cycle; milestones; process groups 

·         Project – should be aligned with the organizational strategic objectives

·         Projects – progressively elaborated; products, goals and objectives

·         Project management – organizational efficiency and flexibility

·         Project Management Methodologies – detailed project life cycle descriptions

·         Project interfaces – organizational, technical, interpersonal

·         Project stakeholders – anyone has something associated with

       the project

·         Characteristics of phases: milestones, objectives, activities and 

       deliverables

·         Information flow between the executing process group and the

       controlling process group; knowledge areas of project quality

       management (quality assurance process, quality control process)

       and project communication management (information distribution

       process, performance reporting process)

·         Project Integration Management – processes integration;

       operation integration; project/product scope integration;

       describes the processes required to ensure that the various

       elements of the project are properly coordinated

·         Project Management Information System (PMIS) – tool of

       integration management; gather, integrate, and disseminate;

       outputs of all the project management processes

·         Configuration management  – ensure that the description of the

       product is correct and complete; an integrated change control

       technique; when change happens, make sure product functions

       and design characteristics are still kept correct; documented

       procedure used to apply technical and administrative direction

       and surveillance to 4 steps procedures

·         Projectized organization  – project manager power; focus

       and goals clear; efficiency sacrificed; no flexibility; used for large sized

       projects or remote projects.

·         Matrix organization – functional managers staffing and

       administrative work; project manager project work; balance of

       power; complex; demanding for communications and management skills;   

·         Traditional organization – functionally organized; difficult to changes;

       internally focused; still can have projects

·         Project office – projects processes and practices integration;

       provides direction, controls, and reporting structure for projects;

       centralized project management expertise; 3 functions – project

       management services, operation support, management competency;

       danger of project team authority eroding

·         The organization that is a formalized structure directed toward

       the support of the project community within the organization –

       project office

·         The organization that is a formalized structure where the project

       teams and the project managers reside – project management office

·         Planning – most important; executing – most time and costs;

       input preventive and corrective actions; Controlling – taking

       preventive and corrective actions

·         Change control system – tool for change control; a collection

       of formal, documented procedures that defines how project

       performance will be monitored and evaluated, and includes

       the steps by which official project documents may be changed.

       Also defines the Change Control Board.

·         Project conflicts – schedule, project priorities, personal resources

·         Lessons learned and historical records – essential inputs to every

       process

·         Historical records – project files, commercial database, project

       team knowledge

·         Inputs:

o   Contract Closeout has the least inputs

    (1, contract documents);

o   Risk Response Planning has the most inputs (11),

     followed by the Schedule Development (10)

·         Tools and techniques

o   4 processes; Scope Verification (inspection), Communications

      Planning (stakeholder analysis), Risk Management Planning

      (planning meetings) and Contract Closeout (procurement audits)

      have the least tools

o   3 processes; Project Plan Execution (6), Schedule Development (6),

      and Quality Control (6) have the most tools

·         Outputs

o   7 processes; Scope Verification (formal acceptance),

      Resource Planning (resource requirements),

      Cost Budgeting (cost baseline), Quality Assurance

      (quality improvement), Risk Management Planning

      (risk management plan), Solicitation (proposals) and

      Source Selection (contract) have the least outputs 

o   Risk Response Planning has the most outputs (11),

     followed by Cost Control (6) and Risk Monitoring

     and Control (6)

·         The project management team should familiar – statistical

       sampling techniques; organizational theory; team building

       activities

·         ISO 9000 provides minimum requirements for an organization

       to meet their quality certification standards

·         Same tools and techniques used

o   Cost Estimating and Cost Budgeting

o   Quality Planning and Quality Assurance

o   Information Distribution, Performance

     Reporting (Partial) and Administrative Closure (Partial)

·         Most used inputs

o   Constraints/Assumptions – 8

o   Project plan development

o   Scope planning

o   Scope definition

o   Activity duration estimating

o   Schedule development

o   Communication planning

o   Qualitative risk analysis

o   Procurement planning

o   WBS – 7

·         Scope verification

·         Scope control

·         Activity definition

·         Resource planning

·         Cost estimating

·         Cost budgeting

·         Risk management planning

·         Scope statement – 6

·         Scope definition

·         Scope verification

·         Activity definition

·         Resource planning

·         Quality planning

·         Procurement planning

·         Project plan

·         Project plan execution

·         Integrated change control

·         Team development

·         Information distribution

·         Performance reporting

·         Most used tools and techniques – expert judgments

o   Initiation

o   Scope planning

o   Activity duration estimating

o   Resource planning

o   Procurement planning

o   Solicitation planning

o   Source selection

 

 

Reason to Become a PMP

Filed under: PMP — by Donna Ritter @ 4:35 pm
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The Project Management Institute (PMI) institutes a globally recognized professsional credited program that promotes professional development and maintains an ISO 9001 certification in Quality Management  Systems. It is the world’s leading not-for-profit association for Project Management. As a member of PMI, you have access to a large library of state of the art information on Project, Program and Risk Management. You have the opportunity to network with some of the finest Projects Managers in the field.

There are 3 creditation programs you can take; The Certified Associate in Project Management, Project Management Professional and Program Management Profesional.

With more than 260,ooo members world-wide, PMI has set itself aside as the experts in Project Management.  I am a certified PMP and I can tell you that this certification has brought me job, networking and education opportunities I would never have had. Please contact me if you are interested or have questions about becoming a PMP.

May 23, 2008

PMP Formulas

Filed under: PMP — by Donna Ritter @ 3:06 pm
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Formulas (turquoise)

 

 

Acronym

Terminology/Phrase

Formula(s)

Real Meaning /Reference

EV or BCWP

Earned Value or

Budgeted[1] Cost of the Work Performed

EV = %completed * BAC

·         How much work was actually done as described in the budget

·         A method for measuring project performance.  It compares the amount of work planned with what was actually accomplished to determine if cost and schedule performance is as planned.   Earned  Value (EV), is a percentage of the total budget equal to the work actually performed.

PV or BCWS

Planned Value or

Budget Cost of Work Scheduled

 

·         How Much work should be done (The estimated value of the planned work)

·         The budget that is part of the approved cost estimate planned to be spent on the activity during a given period

AC or ACWP

Actual Cost or

Actual Cost of the Work Performed

 

·         What is the actual cost incurred? 

·         What have we spent to date?

·         The actual cost that is the total of direct and indirect costs incurred in accomplishing work on the activity during the given period

BAC

Budget At Completion

Budget at completion

·         How much did you budget for the job? The total budget.

 

Variance

Variance = BAC – AC

·         Planned – actual (i.e. planned was three weeks, actual was two weeks – resulting in a one week variance)

 

Percentage complete

%complete = EV/BAC

 

CV

Cost Variance

CV =   EV – AC    

 

·         Any difference between the estimated cost of an activity and the actual cost of that activity

SV

Schedule Variance

SV =    EV – PV    

·         Any difference between the scheduled completion of an activity and the actual completion of that activity

CPI

Cost Performance Index

CPI = EV/AC[2]

CPI <1 means over budget

CPI >1

 cost are below budget

CPI equal to 1 means costs equal benefits

·         Used to forecast project cost at completion

·        The ratio of budget cost to actual costs.

 

SPI

Schedule Performance Index

SPI = EV/PV

 

SPI <1  project will be late

SPI  > 1`project is ahead of schedule

SPI equal to 1 means costs equal means project is on scheule

·         Used to forecast project completion date

·        The SPI is used in some application areas to forecast the project completion date.

 

 

Cumulative CPI

Sum of all individual EV divided by the sum of all individual AC

 

 

Critical Ratio

SPI * CPI

 

 

Critical Path uncertainty

The Critical Path uncertainty = the sum of the (square root of the variances)

 

EAC

Estimate At Completion

 

Several possible calculations depending upon the status of the project

EAC

Estimate At Completion

  EAC = BAC  / CPI

·         Used if no variances from BAC or you will continue at the same rate of spending.

·         Most commonly used on PMP exams

EAC

Estimate At Completion

EAC=AC+ETC

·         Used when original estimate is flawed

·         Actual plus new estimate for remaining work.

EAC

Estimate At Completion

EAC=AC + (BAC –EV)

·         Used when current variances are atypical of the future.

·         Actual to date plus remaining budget.

EAC

Estimate At Completion

EAC=(AC + (BAC -EV))/CPI .

·         Used when variances are thought to be typical of the future

·         Actual to date plus remaining budget modified by performance

ETC

Estimate To Completion

ETC = EAC – AC

·         How much will the project cost

VAC

Variance At Completion

 VAC  = BAC – EAC

·         How much over budget will we be at ten end of the project?

 

 

 

 

Slack

 

 (LS-ES) or (LF-EF)

 

ES

Early Start

EF –  duration + 1

 

EF

Early Finish

ES + duration – 1

 

LS

Late Start

LF – duration + 1

 

LF

Late Finish

LS +  duration -1

 

FF

Free Float

ES (of successor) – EF (of current task) – 1

·         amount of time the current activity can be delayed without delaying the early start of the successor task

TF

Total Float

LF – EF (of current task)

·         amount of time the current activity can be delayed without delaying the LF of the entire project.

 

Budget Burn Rate (linear)

BAC / planned duration

·         Example ($1,000 / 4 weeks = $250 per week)

 

Actual Burn Rate (linear)

AC / Actual duration

·         Example ($1,200 / 5 weeks = $240 per week)

 

 

 

 

 

Excepted Value

Probability (%) * consequences

 

 

 

 

 

 

Simple Interest

 

Interest = Principle X Rate x Time

 

 

 

 

 

EMV

Expected Monetary Value

 

EMV = Odds of occurrence x amount at stake

 

 

 

Present Value

Present Value = FV/(1+r)n

FV = Future Value

r = Interest Rate

n    = # of periods

 

Future Value

FV = PV x (1 + i)

 

n = Number of time periods (years)

PV = Present value (of money)

i = interest rate

 

 

Pay back

Pay back = period of time to recover investment through cash flow

 

BCR

Benefits Cost Ratio

BCR greater than 1 is good

BCR less than 1 is bad

BCR equal to 1 means costs equal benefits

 

 

Opportunity cost

No calculation

·         Defines the opportunity given up by selecting one project over another

IRR

Internal Rate of Return

Complex calculations requiring computer

·         If a company has more than one project to invest, the company may look at projects’ return and then select the highest one.

 

Fixed Cost

 

·         Resource constrained scheduling, end date may vary

 

Fixed Time

 

·         Resource variable scheduling, end date fixed

NPV

Net Present Value

To calculate you need to calculate the present value of both income and revenue figures and then add up the present values 

·         The present value of the total benefits (income or revenue) less the costs.

 

 

 

Valuable Hint NOT Written in Project Management Books About Costs

 

(Or more succinctly “How to know you’re in trouble”)

 

When EV (BWCP) is used in an equation, it always goes first:

 

CV = EV – AC

 

If you get a negative number, your project is over budget.

 

SV = EV – PV

 

Again, if you get a negative number, your project will overrun its schedule.

 

 

Communication channels (assuming a binary distribution)

 

N (N-1) / 2

 

 

 

Program Evaluation and Review Technique (PERT)

 

 

Other Notes

PERT assumes a beta distribution

Weighting –  Pessimistic = 1, Most likely = 2  and  Optimistic =3

 

Standard Deviation

(P-O)/6

Task Variance

[ (P-O) / 6]

 

 

Project Variance

Project Variance = Take the square root of the sum of the task variances

 

 

 

 

Conventional Critical Path Methodology

 

A to B

 

Finish to Start  (FS)

zero delay

Start to Start (SS)

implies delay on B after Start of A

Finish to Finish

A must finish before B

Start to Finish

A must start before B can finish

 

 

Measures of Central Tendency (Mean, Median, Mode)

 

Mean

The mean is the sum of the measures divided by the number of measurements

 

 

Mode

The mode is the most frequent occurring observation in the data under consideration.

 

If the observation has two modes, then the data is said to be bi-modal distribution.

 

If the observations have three or more modes, then the mode is no longer a viable measure of central tendancy.

 

2,2,2,3,3,5,7,10,12

 

mode = 2

 

 

Measures of Variability

 

Range

The range is the difference between the largest measure and the smallest measurement.

 

The range does not use all available observations.  It uses only the two extreme values.  It will have the same dimension, or unit of measure as the original data.

     

Standard Deviation

The standard deviation is the positive square root of the variance.

 

   12.67  = 3.56

 

Normal Distribution

  = 68.26

  = 94.36

  = 99.73

  = 99.99

 

Note   68.26/2 = 34.13   which is 50% above the one sigma mean and  50% below one sigma mena.

 

 

Other

 

·         UCL / LCL Upper Control Lime & Lower Control Limit on a control chart

·         Pareto:  80% of problems come from 20% of the work

·         Crashing:  Slope = Crash Cost – Normal Cost/Crash Time – Normal Time

·         Progress Reporting:  0/100; 50/50; 20/80

·         Standard Deviation of a project = Square Root of  Sum of Critical Path Variances

·         Slack = LST – EST (Latest Start Time – Earliest Start Time)

    = LFT – EFT (Latest Finish Time – Earliest Finish Time)

 

Histogram

Variance & Standard Deviation

Add up your number of observations. (N)

Find the mean (x-bar)

Determine the Range (R)   

Subtract the mean from every observation (n)

Determine Classes (K)

Square each result

Determine Class Width (H) where H = R/K

Add up all the squares

Construct Frequency table

Divide that number by n-1 (for the sample) or N (for the population)    

This is the Variance

Plot Data

Square root the answer

This is the Standard Deviation

 

Binomial Distribution (Success or Failure)

·         A coin will be tossed 5 times but the coin is biased so that the probability of heads for each toss is 0.04. Heads is success, tails is failure.

·         N = number of items in the sample (the number of coin tosses)

·         X = number of items for which the probability is desired (number of Heads)

·         In Appendix A we go to column N and find where N = 5

·         In Appendix A we go to where p = 0.40

·         Each row represents the probability of 0, 1,2, 3, 4, and 5 successes

·         Add them up

 

Poisson Distribution

·         A light bulb manufacturer has a known defective rate of 4%. From a sample of 40, the probability of 4 or more defective light

·         µ = np = (40) (.04) = 1.6

·         Probability of 4 or more defective is = 1 – probability of 3 or less defective

·         In the table, find where µ = 1.6

·         Add up the numbers where x has a value of 0, 1, 2, or 3 (this is the P of 3 or less defectives)

·         Subtract that number from 1.0

·         Find np (sample x defective rate)

·         Calculate up to by going to the table, finding np, adding it up

·         Subtract that answer from 1 to x or greater probability

 

Normal Distribution (also known as Gaussian)

·         If process produces parts with mean of _ and standard Deviation of _, what is the P that one random part has a measurement of _?

·         Mean time of a bank transaction is 5.25 with a standard deviation of 0.75 minutes and the values are normally distributed. What is the probability that a transaction will occur between 4.0 and 5.25 minutes and below 4.0?

·         Z = 4.0 – 5.25/ 0.75 = -1.67

·         Go to Appendix A and find 1.67 = 0.4525

·         Because we know that µ is 5.25, the probability that a transaction will take less than 5.25 is .05 (1/2)

·         Therefore, the probability that a transaction will be less than 4 minutes = 0.5 – 0.4525 = 0.0475

 

Sampling Distributions (number of standard Deviations that a sample mean is away from the population mean)

·         If normal distribution with mean of _ and SD of _. From sample of _ what is P that the sample mean is >, <, =, or between _?

·         Hospital emergency room where it has a record waiting time of 30 minutes with a standard deviation of 5 minutes. If a sample of 35 is measured, what is the probability that the sample mean would be greater than 31.5 minutes?

·         Do the Z calculation to get 1.77

·         Find 1.77 in Appendix A (go to 1.7 and then across to 0.07)

·         Subtract that probability from the .5 probability = .50 – .4616 = .0384

·         This tells us that there is only a .0384 probability that, from the sample of 35, the sample mean will be greater than 31.5.

 

Measure of shapes (skewness)

 

Symmetrical (Bell sphere)

 

Positive skew (shift to right)

 

Negative skew (shift to left)

Beta Distribution = skewed in one direction

 


[1]   Some of the literature refers to this as Basic rather than budgeted.

[2]    The simple way to remember CPI and SPI is these are ratios of the CV and SV.  If you know the CV and SV formulas, remember CPI and SPI are rations.

May 21, 2008

PMP Framework

Filed under: PMP — by Donna Ritter @ 3:28 pm
Tags: , ,

                        Project Framework

 

Project: a temporary endeavor undertaken to create a unique product or service. The easiset way to think about it is if it is ongoing it is Operations, not a Project.

 

Project management: the application of knowledge, skills, tools, and techniques

to project activities to meet project requirements. Project management is accomplished

through the use of the processes such as: initiating, planning, executing, controlling, and closing.

 

The term project management is sometimes used to describe an organizational

approach to the management of ongoing operations. This approach, more properly

called management by projects, treats many aspects of ongoing operations

as projects to apply project management techniques to them.

 

General management: encompasses planning, organizing, staffing, executing, and

controlling the operations of an ongoing enterprise. General management also

includes supporting disciplines such as law, strategic planning, logistics, and human

resources management. The PMBOK® overlaps or modifies general management

in many areas—organizational behavior, financial forecasting, and planning techniques,

to name just a few. Section 2.4 provides a more detailed discussion of general

management.

 

Application areas are categories of projects that have common elements significant

in such projects, but are not needed or present in all projects. Application

areas are usually defined in terms of:

  • Functional departments and supporting disciplines, such as legal, production and inventory management, marketing, logistics and personnel.
  • Technical elements, such as software development, pharmaceuticals, water and sanitation engineering, or construction engineering.
  • Management specializations, such as government contracting, community development, or new product development.
  • Industry groups, such as automotive, chemicals, agriculture, or financial services. Appendix E includes a more detailed discussion of project management application areas.

 

Program: a group of related projects managed in a coordinated way to obtain benefits not available from managing them individually. Many programs also include elements of ongoing operations.

 

Project Portfolio Management:  Project portfolio management refers to the

selection and support of projects or program investments. These investments in

projects and programs are guided by the organization’s strategic plan and available

resources.

 

Project Management Context:

 

Project phase:  is marked by completion of one or more deliverables.

 

Deliverable: a tangible, verifiable work product such as a feasibility study, a detail design, or a working prototype. The deliverables, and hence the phases, are part of a generally sequential logic designed to ensure proper definition of the product of the project.

 

Project life cycle:  Collection of project phases. They include concept, develop, implement and closeout.

 

Fast tracking:  Starting a project phase prior to approval of the previous phase deliverables

when the risks involved are deemed acceptable. 

 

 

Standards vs. regulations: standards are guidelines, regulations implies compliance.

 

Project Management Knowledge Areas: integration, scope management,  time management, cost management, quality management,  human resource management, communications management, risk management and procurement management.

 

Project Management Processes: project processes, process groups, process interactions, customizing process interactions and mapping of processes.

 

Project Processes series of actions bringing about a result. They fall into the following 2 categories: Project management processes describe, organize and complete the work of the project. Product oriented processes specify and create project’s product (life-cycle).

 

Process Group (IPECC): used for each knowledge area. They are:

  • Initiating processes—authorizing the project or phase. They are an output to planning.
  • Planning processes—defining and refining objectives and selecting the best of the alternative courses of action to attain the objectives that the project was undertaken to address. They are an output to executing.
  • Executing processes—coordinating people and other resources to carry out the plan. They are an input to executing.
  • Controlling processes—ensuring that project objectives are met by monitoring and measuring progress regularly to identify variances from plan so that corrective action can be taken when necessary. Controlling is an output to planning, executing and closing and has input from executing.
  • Closing processes—formalizing acceptance of the project or phase and bringing it to an orderly end.

 

Process interactions: Within each process group, the individual processes are linked by their inputs and outputs. By focusing on these links, we can describe each process in terms of it’s:

  • Inputs—documents or document able items that will be acted upon.
  • Tools and techniques—mechanisms applied to the inputs to create the outputs.
  • Outputs—documents or document able items that are a result of the process.

 

Initiation Process: authorizing the project or phase is part of project scope management.

 

Planning Process:  is of  major importance to a project because the project involves doing

something that has not been done before. Planning is an ongoing effort throughout the life of the

project. It has 11 core processes and 10 facilitating processes.  (see figure 3-5 in PMBOK).

 

Scope Management: processes required to ensure that the project includes all of the work required and only the work required to complete the project successfully.

 

Product Scope: describes the product to be delivered.

 

Project Scope:

describes the work required to deliver the product.

 

Planning Core processes. Some planning processes have clear dependencies that require

them to be performed in essentially the same order on most projects. They include:

 

  • Scope planning – developing written scope statement
  • Scope definition – subdividing deliverables into smaller pieces
  • Activity definition – identifying activities needed to be performed to produce the deliverables
  • Activity sequencing – documenting interactivity dependencies
  • Activity duration estimating – estimating number of work periods needed
  • Schedule development – analyzing activity sequencing, duration and resource requirements to produce schedule
  • Risk management planning – deciding how to approach and plan for risks
  • Resource planning – determining what resources are required
  • Cost estimating – developing approximation of the costs of the resources required
  • Cost budgeting – allocating overall cost estimates to activities
  • Project plan development – taking outputs of all planning activities and putting them into a consistent, coherent document.

 

Planning Facilitating processes. Interactions among the other planning processes are

more dependent on the nature of the project. Although these facilitating processes

are performed intermittently and as needed during project planning, they are not

optional. They include:

 

  • Quality Planning —identifying which quality standards are relevant to the project and determining how to satisfy them.
  • Organizational Planning —identifying, documenting, and assigning project roles, responsibilities, and reporting relationships.
  • Staff Acquisition —getting the human resources needed assigned to and working on the project.
  • Communications Planning —determining the information and communications needs of the stakeholders: who needs what information, when will they need it, and how will it be given to them.
  • Risk Identification —determining which risks might affect the project and documenting their characteristics.
  • Qualitative Risk Analysis —performing a qualitative analysis of risks and conditions to prioritize their effects on project objectives.
  • Quantitative Risk Analysis —measuring the probability and impact of risks and estimating their implications for project objectives.
  • Risk Response Planning—developing procedures and techniques to enhance opportunities and to reduce threats to the project’s objectives from risk.
  • Procurement Planning —determining what to procure, how much to procure, and when.
  • Solicitation Planning —documenting product requirements and identifying potential sources.

 

Executing Core Process:  Project Plan execution – carrying out the project plan

 

Executing Facilitating Processes:

  • Quality Assurance —evaluating overall project performance on a regular basis to provide confidence that the project will satisfy the relevant quality standards.

Running a toxin free home

Filed under: Family,Life Balance — by Donna Ritter @ 3:20 pm
Tags: , ,

See these links to get more information on running a toxin free home:

 

http://www.workathomeunited.com/Donna55


http://www.livetotalwellness.com/Donna55

May 18, 2008

Working From Home

Filed under: Life Balance — by Donna Ritter @ 3:42 pm
Tags: ,

Working from Home:

One thing Chad Brown doesn’t stress about is his daily commute. Rolling out of bed, washing his face, and walking 10 paces to his computer, he’s already at work. The CEO of Plus 1 Tickets, a home-based, ticket-brokering firm that sells sports, theater, and concert tickets throughout the nation, Brown is one of the more than 4.2 million Americans who are ditching the daily commute in favor of punching in at home.

According to the U.S. Census Bureau, almost half of the nation’s small businesses operate from home-based offices — and why not? As employer loyalty wanes and low-cost, lightning-speed technology becomes more accessible, it’s easier than ever to launch your own firm without leaving home.

Below are five skills you’ll need to kiss the cubicle goodbye.

Entrepreneurship

Sure you’ve got industry knowledge, but do you have what it takes to be the boss? According to Tamara Monosoff, author of the best-selling book “Secrets of Millionaire Moms” and the CEO of the Alamo, California-based product marketing firm, Mom Inventors Inc., it takes more than good ideas to make a business work. “A successful business is really about knowing what steps you need, and taking action,” she says. “It’s about making a plan, setting concrete goals, and shaping the business the way you imagine it to be.”

Entrepreneurship courses offered through your local chamber of commerce, small business association chapter, or online through schools like DeVry University can help new home-based business owners get off the ground.

Tax Planning

When you own your own business, it’s all about thinking financially. “As a new business owner, one of the first things you need to know is how to structure your company to have maximum tax benefits,” states William Ellyson, a Richmond, Virginia-based attorney who specializes in small-business issues.

Entrepreneurs can find basic tax planning courses through local community colleges and small business association chapters. Those looking for more in-depth knowledge can check out year-long financial planning certificate programs offered online.

Public Relations and Marketing

“The main thing my major has taught me is how to network,” states Brown, a public relations major at Virginia Commonwealth University whose networking skills grew his ticket-brokering firm from a sideline hobby into a nationwide company with more than $150,000 in sales each year. “I’ve also learned how to effectively talk to clients and efficiently deal with problems.”

No matter the industry, all home-based entrepreneurs must be able to promote their services, reach the target demographic, communicate effectively with clients, and create a professional image for the public. While four-year institutions like Virginia Commonwealth offer bachelor’s degree programs in public relations, home-based business owners can also find PR courses through their local community college or chamber of commerce.

E-Commerce

“Five years ago, the attitude was ‘Yeah, I know I need to have a website, but I’ll get around to it,'” says Gene Fairbrother, lead small business consultant for the National Association for the Self-Employed. “Today you’ve got to have a Web presence to be in business.” According to the market research firm, Forrester Research, Inc., e-commerce retail sales topped $175 billion last year, with the industry projected to grow another $160 billion by 2012.

Brown fine-tuned his e-commerce strategy, moving his products from eBay to larger ticket broker sites such as Stubhub.com and Ticketsnow.com, increasing sales by an estimated 200 percent. To learn how to set up, manage, and promote your business online, check out e-commerce courses offered online through the University of Maryland University College and the University of Phoenix.

Project Management

Being the CEO, chief sales officer, HR director, bookkeeper, and janitor requires expert multitasking. “It’s very difficult to manage it all,” admits Monosoff, who leads a multi-million-dollar home-based business while raising two children and writing a monthly column for Entrepreneur Magazine. “You have to have discipline, organization, and be able to prioritize.”

 

Also on Yahoo! HotJobs:

The right way to resign
How to decide if you need a career change
Finding and creating the work you love
Find a new job near you

 

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