Hi All,
I have bought my own domain and also setup my blog as well there. So please visit following URLs,
http://harindave.com/blog – Please visit this for latest & future posts
Cheers!
Harin Dave
Hi All,
I have bought my own domain and also setup my blog as well there. So please visit following URLs,
http://harindave.com/blog – Please visit this for latest & future posts
Cheers!
Harin Dave
Posted in About
Area | Item | Definition | ||||||||||||
Professional / Social Responsibilities | Ethnocentrism | Respect other cultures – unfavorably comparing other cultures with your culture | ||||||||||||
Monochronic | Doing one task at a time | |||||||||||||
Polychronic | Doing more than one task at a time | |||||||||||||
Egalitarian | Favoring social equality – a classless society / distributing the power | |||||||||||||
PMBOK Definitions section | Analogous Estimating | An estimation technique that uses values of parameters, such as scope, cost, budget and duration or measures of scale such as size, weight and complexity from previous similar activity as the basis for estimation the same parameter or measure for a future activity. > Used when there is a limited amout of detailed information about the project – early project phase. > Form of Expert Judgement. > Most reliable when the previous activities are similar in fact and not just in appearance. |
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Technique | Arrow Diagramming Method (ADM) | > Schedule network diagramming technique > Schedule activities are represented by arrows > Supports only Finish to Start relationship > Schedule activities connected at points called nodes (small circles) Note: If in example, duration is given for last node and end node then draw ADM and show duration on arrow as schedule activity |
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Technique | Assumption Analysis | > Explores the accuracy of assumptions and identifies risks to the project from inaccuracy, inconsistency or incompleteness of assumptions. | ||||||||||||
Technique | Bottom-up Estimating | > Method of estimating a component of work > Work is decomposed into more details > Estimate is prepared for lower, more detailed pieces of work > Finally estimated are aggregated into a total quality for the component of work > Gives more ACCURATE estimate |
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Technique | Brainstorming | > General data gathering and creativity tecnique > Used to identify risks, ideas or solutions to issues by using group of team members or subject matter experts > Brainstorming session is structured so that each participant’s ideas are recorded for later analysis |
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Tool | Chart of Accounts | > Numbering system used to monitor project costs by category – labors, supplies, materials and equipment > Project Chart of Accounts in usually based upon the corporate chart of accounts of primary performaing organization |
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Tool | Code of Accounts | > Numbering system used to uniquely identify each component of the work breakdown structure | ||||||||||||
Technique | Co-location | > An organizational placement strategy where project team members are physically located close to one another in order to improve communication, working relationships and productivity | ||||||||||||
Technique | Control | > Comparing actual performance with planned performance > Analizing variance, Assesing trends to effect process improvements > Evaluating possible alternatives and recommending appropriate corrective actions as needed |
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Tool | Control Accounts (CA) | > A mgt control point where scope, budget, actual cost and schedule are integrated and compared to earned value for performance measurement. > Control accounts are placed at selected mgt points of the work breakdown structure. > It may include one or more work packages but each work package can have only one control account. > Each control account is associated with a specific single organizational component in the organizational breakdown structure (OBS). |
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Tool | Control Chart | > A graphic display of process data over time and against established control limits. > It has centerline that assists in detecting a trend of plotted values toward either control limit. |
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Technique | Cost of Quality (COQ) | > Determining cost incurred to ensure quality. > Prevention & appraisal cost – cost of conformance – cost of quality planning, quality control, quality assurance > Failure cost – cost of non-conformance – costs to rework product, component or process that are non-compliant, cost of warranty work and waste and loss of reputation |
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Technique | Crashing | > Type of Project Schedule Compression Technique > To decrease the total project duration > To determine how to get the max schedule duration compression for the least additional cost > Add resources and reduce schedule activity durations |
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Technique | Critical Chain Method | > A schedule network analysis technique that modifies the project schedule to account for limited resources. > Mixes deterministics and probabilistics approaches to schedule network anaysis |
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Technique | Critical Path Method | > A schedule network analysis technique used to determine the amount of scheduling flexibility on various logical network paths in the project schedule network, to determine min total project duration. > Forward pass – calculate early start & finish dates using specified start date > Backward pass – calculate late start & finish dates using specified completion date |
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Technique | Decision Tree Analysis | > A diagram that describes a decision under consideration and implication choosing one or other available alternative. > Used when some future scenarios or outcomes are uncertain. > Incorporates probabilities and the costs or rewards of each logical path of events and future decisions. > Uses Expected Monetary Value analysis to help organization identify the relative values of alternate actions. |
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Technique | Decomposition | > A planning technique that subdevides the project scope and project deliverables into more smaller and manageable components until the project work associated is defined in sufficient detail to support executing, monitoring & controlling the work. | ||||||||||||
Technique | Delphi Technique | > An information gathering used as a way to reach consensus of experts on a subject > Experts on the subject participate anonymously > Facilitator uses questionnaire to solicit ideas about imp project points related to the subject > Helps reduce bias in the data and keeps any one person from having undue influence on the outcome |
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Technique | Design Review | > A management technique used for evaluating a proposed design to ensure that the design of the system or product meets customer requirements > To assure that the design will perform successfully, can be produced and can be maintained |
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Method | Earned Value Management (EVM) | > A management methodology for integrating scope, schedule and resources and for objectively measuing project performance and progress. > Performance is measured by determining the budgeted cost of work performed (Earned Value) and comparing it to actual cost of work performed (Actual Cost). > Progress measured by comparing the earned value and planned value. |
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Technique | Earned Value Technique | > A specific technique for measuring the performance of the work and used to establish the performance measurement baseline (PMB). > Referred as the earning rules and crediting method. |
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Definition | Exception Report | > Report that includes only MAJOR variations from the plan | ||||||||||||
Technique | Expected Monetory Value (EMV) Analysis | > A Statistical technique that calculates the average outcome when the future includes the scenarios that may or may not happen. > Common use is within Decision Tree Analysis. > Modeling and Simulation are recommened for cost and schedule risk analysis because its more powerful and less subject to misapplication EMV analysis. |
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Technique | Expert Judgement | > Judgement provided based upon expertise in an application area, knowledge area, discipline, industry etc. as appropriate for the activity being performed. > Such expertise can be provided by any group or person with specialized education, knowledge, skill, experience or training. > Personal could be from performing org, consultants, stakeholders, customers, professional and technical associations, industry groups |
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Technique | Failure Mode and Effective Analysis | > Analytical procedure – each potential failure mode in every component of a product is analyzed to determine its effect on the reliability of the component, system, required function of component. > For each potential failure, an estimate is made of its effect on the total system and of its impact. > In addition, review is undertaken of the action planned to minimize the probability of failure and to minimize the effects. |
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Technique | Fast Tracking | > Specific Project Schedule Compression technique. > Changes network logic to overlap phases that would normally be done in sequence. > Perform Design Phase and Development Phase or Schedule activities in parallel. |
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Technique | Flowcharting | > Depiction in a diagram format of the inputs, process actions and outputs of one or more processes within a system. | ||||||||||||
Definition | Forecast | > Estimated or predictions of conditions and events in the project’s future based on information and knowledge available at the time of forecast. > Updated and reissues based on Work Performance Information provided as project executed |
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Tool | Ground Rules | > A list of acceptable and unacceptable behaviors adopted by a project team to improve working relatioships, effectiveness & communication. | ||||||||||||
Definition | Historical Information | > Documents and data on prior projects including project files, records, correspondence, closed contracts, closed projects. | ||||||||||||
Technique | Inspection | > Examining or measuring to verify whether an activity, component, product, result or service conforms to specified requirements. | ||||||||||||
Definition | Invitation for Bid (IFB) | > This term is equivalent to Request for Proposal – RFP. > In some specific area, it may have a narrower or more specific meaning. |
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Technique | Lag | > Modification of a logical relationship that directs a delay in the successor activity. FS activity with 10 days lag. Successor can not start until 10 days once predecessor activity is finished. | ||||||||||||
Technique | Lead | > Modification of a logical relationship that allows an acceleration of the successor activity. FS relationship with 10 days Lead. The successor activity can be started before 10 days even predecessor activity is not completed. | ||||||||||||
Technique | Monte Carlo Analysis – PERT / OPM Method | > A technique that computes or iterates the project cost or project schedule many times using input values selected at random from probability distributions of possible costs or durations, to calculate a distribution of possible total project cost or completion dates. | ||||||||||||
Technique | Networking | > Developing relationships with persons who may be able to assist in the achievement of objectives and responsibilities | ||||||||||||
Tool | Organization Breakdown Structure (OBS) | > A hierarchically organized depiction of the project organization arranged so as to relate the work packages to performing organizational units. | ||||||||||||
Technique | Parametric Estimating | > An estimation technique that uses statistical relationship between historical data and other variables to calculate estimate for activity parameters such as scope, cost, budget and duration. > Produces higher level of accuracy depending upon sophistication and the underlying data built into the model. |
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Definition | Path Covergence | > Merging or joining of parallel schedule network paths into the same node in a project schedule network diagram. > Schedule activity with more then one predecessor activities. |
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Definition | Path Divergence | > Extending or generating parallel schedule network paths from the same node in a project schedule network diagram. > Schedule activity with more then one successor activities. |
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Definition | Performance Measurement Baseline | > An approved integrated scope-schedule-cost plan for the project work against which project execution is compared to measure and manage performance. > Technical and Quality parameters may also be included. |
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Definition | Portfolio | > A collection of Projects or Programs and other work that are grouped togeher to facilitate effective management of that work to meet strategic business objectives. > Projects or Programs of the portfolio may not be interdependent or directly related. |
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Technique | Portfolio Management | > Centralized mgt of one or more Portfolios, which includes identifying, prioritizing, authorizing, managing, and controlling projects, programs and other related work to achieve specific strategic business objectives. | ||||||||||||
Technique | Precedence Diagramming Method (PDM) | > A schedule network diagamming method > Schedule activities are represented by box or node. They are graphically linked by one or more logical relationships to show sequence in which activities are to be performed. |
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Tool | Probability and Impact Matrix | > A common way to determine whether risk is considered low, medium or high by combining the two dimensions of a risk. > Its probability of occurance and its impact on objectives if it occurs. |
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Definition | Program | > A group of related projects managed in a cordinated way to obtain benefits and control not available from managing them individually. It may include other related work outside of the scope of the discrete projects in program. | ||||||||||||
Technique | Progressive Elaboration | > Continously improving and detailing a plan as more detailed and specific information and more accurate estimates become availabe as the project progresses and thereby producing more accurate and complete plans that result from successive iterations of the planning process. | ||||||||||||
Definition | Project | > Temporary endeavor undertaken to create unique product, result or service | ||||||||||||
Tool | PMIS | > An information system consists of tools and techniques used to gather, integrate and disseminate the outputs of project management processes. > Used to support all aspects of of project from initiating through closing. > Includes both manual and automated systems. |
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Definition | Project Phase | > Collection of logically related project activities, usually culminating in the completion of major deliverable. > Project phases are mainly completed sequentially, but can overlap in some project situations. > Phases can be subdivided into sub-phases / components. > This hierarchy of deviding projects into sub-phases is called Work Breakdown Structure. > A project phase is a component of a project life cycle. It is not a project management process group. |
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Tool | Project Summary Work Breakdown Structure (PSWBS) | > A work breakdown structure for the project that is only developed down to the subproject level of detail within some legs of the WBS, and where the details of those subprojects are provided by the use of contract work breakdown structure. | ||||||||||||
Definition | Request for Information | > Type of Procurement Document > Buyer requests a potential seller to provide various pieces of information related a product/service/seller capability |
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Definition | Request for Proposal | > Type of Procurement Document > Used to request proposals from prospective sellers of product/service |
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Definition | Request for Quatation | > Type of Procurement Document > Used to request price quatation from prospective sellers of common or standard product/service |
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Definition | Reserve/Contingency/Buffer | > A provision in the project mgt plan to to mitigate cost/schedule risk. | ||||||||||||
Technique | Reserve Analysis | > An analytical technique to determine the essential features and relationship of components in the project mgt plan to establish a reserve for the schedule duration, budget, estimated cost, funds for the project. | ||||||||||||
Definition | Residual Risk | > Risk that remains after risk responses have been implemented. | ||||||||||||
Technique | Resource Leveling | > Any form of schedule network analysis in which scheduling decisions are driven by resource constraints. | ||||||||||||
Definition | Resource-Limited Schedule | > Project schedule whose schedule activity, sch start/end dates reflect expected resource availability. > Total Float is determined by calculating difference between CPM Late Finish Date and resource-limited scheduled finish date. > Sometimes called resource constrained schedule. |
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Tool | Responsibility Assignment Matrix (RAM) | > A structure that relates the project organizational breakdown structure to the work breakdown structure to help ensure that each component of Project’s scope of work is assigned to responsible person/team. | ||||||||||||
Definition | Retainage | > A portion of contract payment that is withheld/withdrawn/suspended until contract completion to ensure full performance of the contract items. | ||||||||||||
Technique | Risk Acceptance | > A Risk Response Planning technique that indicates the project team has decided not to change the project mgt plan to deal with the risk, or is unable to identify any other suitable response strategy. | ||||||||||||
Technique | Risk Avoidance | > A Risk Response Planning technique for a threat that creates changes to project mgt plan that are meant to either eliminate the risk or to protect the project objectives from its impact. > Generally, risk avoidance involves relaxing the time, cost, scope or quality objectives. |
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Technique | Risk Mitigation | > A Risk Response Planning technique associated with threats that seeks to reduce the probability of occurance or impact of risk to below an acceptable threshold. | ||||||||||||
Technique | Risk Transference/Deflection | > A Risk Response Planning technique that shifts the impact of threat to a third party, together with ownership of the response. | ||||||||||||
Technique | Rolling Wave Planning | > Providing the prelimanary details of the later phases in the current phase document is call Rolling Wave Planning or Next Steps. > A form of Progressive Elaboration planning where work to be accomplished in near term is planned in detail at a low level of the work breakdown structure, while the work far in the future is planned at relatively high level of the work breakdown structure, but the detailed planning of the work to be performed within another one or two periods in the near future is done as work is being completed during the current period. |
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Technique | Root Cause Analysis | > An analytical technique used to determine the basic underlying reason that causes a variance or defect or risk. A Root Cause may underlie more than one variance or defect or risk. | ||||||||||||
Technique | Schedule Compression | > Shortening the project schedule duration without reducing project scope. Sub types – Crashing and Fast Tracking. | ||||||||||||
Technique | Schedule Network Analysis | > The technique of identifying early and late start dates as well as early and late finish dates for uncompleted portion of the project schedule activities. CPM, Critical Chain Method, What-if Analysis, Resource Leveling. | ||||||||||||
Definition | Scope Creep | > Adding features and functionalities above Project Scope without addressing the effects on time, cost and resources without customer approval. | ||||||||||||
Definition | S-Curve | > Graphic display of cumulative costs, labor hours, percentage of work or other quantities, plotted against time. > Used to depict planned value, earned value and actual cost of project work. > S-like shape of the curve produced on a project that starts slowly, accelerates and then tails off. |
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Definition | Secondary Risks | > Risk that arises as a direct result of implementing a risk response. | ||||||||||||
Definition | Simulation | > A simulation uses a project model that translates the uncertainities specified at detailed level into their potential impact on objectives that are expressed at a level the total project. > Project simulations use computer models and estimates of risk, usually expressed as a probability distribution of possible costs or durations at a detailed work level and are typically performed using Monte Carlo Analysis. |
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Definition | Special Cause/Assignable Cause | > A source of variation that is not inherent in the system, is not predictable and in intermittent. It can be assigned to a defect in the system. > On a Control Chart, points beyond the control limits or non-random patterns within the control limits, indicate it. |
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Definition | SWOT Analysis | > Strength, Weakness, opportunity, Threats – This information gathering technique examines the project from perspective of each project’s Strength, Weakness, opportunity and Threats to increase the breadth of the risks considered by the risk management. | ||||||||||||
Definition | Summary Activity | > A group of related scheduled activities aggregated at some summary level and displayed as a single activity at that summary level. | ||||||||||||
Definition | System | > Systems for project management are composed of project management processes, techniques, methodologies, and tools operated by project management team. | ||||||||||||
Technique | Technical Performance Measurement | > A performance measurement technique that compares technical accomplishments during project execution to the project management plan’s schedule of planned technical achievements. > Use key technical parameters of the product produced by the project as a quality metric. > The achieved metric values are part of the work performance information. |
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Technique | Three-Point Estimate | > An analytical technique that uses three cost or duration estimated to represent the optimistic, most likely and pessimistic scenarios. This technique is applied to improve the accuracy of estimates of cost or duration when the underlying activity or cost component is uncertain. | ||||||||||||
Technique | Total Quality Management (TQM) | > A common approach to implement a quality improvement program with an organization. | ||||||||||||
Technique | Trend Analysis | > An analytical technique that uses mathematical models to forecast future outcomes based on historical results. > Method for defining variance from a baseline of a budget, cost, schedule or scope parameter by using prior progress reporting periods data and projecting how much that parameter’s variance from baseline might be at some future point in the project if no changes are made in project execution. |
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Definition | Triggers | > Indications that a risk has occurred or about to occur. > May be discovered in Risk Identification process and watched in Risk M&C process. > Sometimes call risk symptoms or warning signs. |
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Definition | Tripple Constraints | > Scope, Cost, Schedule – a framework for evaluating competing demands. | ||||||||||||
Technique | Validation | > The technique of evaluating a component or product during or at the end of a phase or project to ensure it complies with the specified requirements. | ||||||||||||
Definition | Value Engineering (VE) | > A creative approach used to optimize project life cycle costs, save time, increase profits, improve quality, expand market share, solve problems and/or use resources more effectively. | ||||||||||||
Technique | Variance Analysis | > A method for resolving the total variance in the set of scope, cost and schedule variables into soecific component variances that are associated wih defined factors affecting the scope, cost and schedule variables. | ||||||||||||
Technique | Verification | > The technique of evaluating a component or product during or at the end of a phase or project to assure or confirm it satisfies the condition imposed. | ||||||||||||
Technique | Work Authorization | > A permission and direction, typically written, to begin work on the specific schedule activity or work package or control account. > Method of sanctioning project work to ensure that the work is done by identified organization, at the right time and in proper sequence. |
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Tool | Work Authorization System (WAS) | > A subsystem of all project management system. > It is collection of formal documented procedures that define how project work will be authorized to ensure that the work is done by the identified organization, at the right time, in the proper sequence. > It includes steps, documents, tracking system, defined approval levels needed to issue work authorizations. |
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Definition | Work Breakdown Structure Disctionary | > A document that describes each component in the work breakdown structure. For each WBS component, the WBC dictionary includes brief definition of the scope or statement of work, defined deliverables, a list of associated activities, a list of milestones. > Also includes, responsible organization, start and end dates, resources required, an estimate of cost, charge no, contract information, quality requirement, technical references etc. |
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Definition | Work Performance Information | > Collected as part of the Direct and Manage Project Execution process. > Information includes – status of deliverables, implementation status for change requests, corrective actions, preventive actions and defect repairs, forecasted estimated to complete, reported perdentage of work physically completed, achieved value of technical performance measures, start and end dates of schedule activities. |
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Technique | Workaround | > A response to a negative risk that has occurred. Distinguished from Contingency plan in that a workaround is not planned in advance of the occurrence of the risk event. | ||||||||||||
Tool & Technique | Schedule Development | > Program evaluation and review technique.(PERT)/3 Point Estimate is a mathematical model used in Schedule Development. It uses both Activity Duration Estimates and Network Logic to estimate Duration Estimates. The Critical Path Method considers only single Duration Estimates. GERT and PDM are not Schedule Development tools. | ||||||||||||
Professional Responsibility | > Being a project manager, you are responsible for maintaining and ensuring integrity of project, product, and personal. You are not responsible for stakeholders integrity. | |||||||||||||
Project Life Cycle | > The Phase End Reviews are called Phase Exits, Stage Gates, and Kill Points because they provide a point to pause and determine whether the project should go forward or be stopped. | |||||||||||||
Professional Responsibility | > Procurement is not considered part of general management, although organizing is part of general management. | |||||||||||||
Develop Project Team | > Development Team is not an event it is a process. In the project life cycle, team development efforts have greater benefit when conducted early, but should take place throughout the project life cycle. | |||||||||||||
Ishikawa/Fishbone/Cause-and-effect Diagram | > Ishikawa, fishbone, or cause-and-effect diagrams are used in all the quality processes as well as risk identification. | |||||||||||||
Planning Process Group | > Planning is the iterative process evident throughout the project. | |||||||||||||
Risk Register | > The risk register documents all the outcomes of the other risk management process. | |||||||||||||
Quality Mgt Plan, Quality Policy | > The Quality Management plan should describe how the project management team will implement its quality policy. Quality Policy is “the overall intentions and direction of an organization with regard to quality, as formally expressed by top management” | |||||||||||||
Organization Breakdown Structure | > Organizational breakdown structure (OBS) is a specific type of organization chart that shows which organizational units are responsible for which work packages. |
Posted in Project Management | Tags: PMP definitions, PMP important definitions
Project Scope
Product Scope
Project deliverable can be factored as below,
Deliverables > Control Accounts > Planning Package > Work Packages > Schedule Activities
WBS – Work Breakdown Structure. WBS is quite useful and can be depicted as below,
Posted in Project Management | Tags: Deliverable, Heuristic, WBS, Work Breakdown Structure
Here are the different types of project costs,
Here are some important definitions on cost analysis,
Posted in Project Management | Tags: direct cost, fixed cost, indirect cost, project cost, sunk cost, variable cost
Typically an organization could have following types,
1. Functional Organization
2. Projectized Organization > Project Manager has all the authority
3. Matrix Organization
Offshoring has been the main business for many companies. Some companies have their own Offshore team where as some companies do contract with other companies for the same. In both the cases, Offshore Management is the key to succeed. Here are key factors for successful Offshore Management,
As you are remotely located, expectation setting is very important area to deal with. Depending upon the infrastructure you have, you need to decide communication modes like email/call/video conference etc, timing of communication, information to be shared (define templates for the information that you are looking for) etc.
It becomes really important for offshore manager to understand time zone difference and plan the activities accordingly. It’s important to communicate timely & precisely to decrease the back and forth. It’s also important to have couple of hrs overlap between onshore & offshore team’s key members. The overlap is not mandatory but it’s helpful when you are looking for response from other side to continue your work for next day. I have been working for US and European clients & management and personally I prefer to get online / check emails at around 10 PM IST for few mins and do required communications to ensure I get what I am looking for. And this should be required on daily basis so as a PM you need to decide the need of the same.
It’s very important to set process for managing the version control software especially for check-in etc especially when you have two teams located at different places and going to work on the same solution. This is mainly to sync the source files added/updated from both the sides. The team can use any standard central repository that is comfortable with both the sides.
Being at remote place, it’s important to keep onshore team/client on the same page for project status. offshore Manager should set weekly status call with onshore team/client on project and also send weekly status reports to onshore team/client to update them about project progress. If project is of small size, you can also send status report on daily basis. It’s also possible to share your project management tool with onshore team/client and give them adequate views so that they know project progress with their issues status. It’s important to log hrs (billable/research) at client tool on daily basis if client needs hrs details for the offshore team by resource.
Most of the time, Offshore team would set 24 hrs as TAT for any query/issue. But there are ways to cut-down it in some cases. However, if project demands, offshore manager can put additional efforts and do requirement communication after overlap/office hrs to ensure he has adequate information to work on to get project development further. Also it’s important to decide whether to continue writing emails to resolve the queries or to have a quick call & resolve the queries. Offshore manager needs to take decision to keep TAT as low as possible depending upon the different on-going projects & their priority.
One team – though teams might be working at different locations, the goal should be to achieve excellence in product quality, service and by keeping this in mind offshore manager needs to mentor the offshore team and communicate with onsite team/management. Try to avoid getting this mentality of Client-Contractor relationship.
Offshore manager should be well aware about the Cultural value of that geographical area. Every country has its own cultural values so it’s good to know it.
Posted in Offshore Development | Tags: Offshore Development, Offshore Management
The PMBOK® Guide 3rd edition (The “old” one)
A project initiator or sponsor external to the project organization at a level that is appropriate to funding the project, issues the project charter. Projects are usually chartered and authorized external to the project organization by an enterprise, a government agency, a company, a program organization or a portfolio organization […]
The PMBOK® Guide 4th edition (The “new” one)
Projects are authorized by someone external to the project such as a sponsor, PMO or portfolio steering committee. The project initiator or sponsor should be at a level that is appropriate to funding the project. They will either create the project charter or delegate that duty to the project manager. The initiator’s signature on the charter authorizes the project.
The reasons in support of PMBOK® Guide 4th edition definition are the following:
In project management, a project charter or project definition is a statement of the scope, objectives and participants in a project. It provides a preliminary delineation of roles and responsibilities, outlines the project objectives, identifies the main stakeholders, and defines the authority of the project manager. It serves as a reference of authority for the future of the project.
The project charter establishes the authority assigned to the project manager, especially in a matrix management environment. It is considered industry best practice.
The purpose of the project charter is to document:
The three main uses of the project charter:
Project Managmenet exists in a broader context that includes program management and portfolio management. Here is brief explanation about each of them with examples, their relationship and PMO’s (Project Management Office) role.
Portfolio Management
A portfolio refers to a collection of projects or programs and other work that is grouped together to facilitate effective management. The projects or programs of portfolio may not necessarily be interdependent or directly related. For example, as infrastructure firm that has the strategic objective of “maximizing the return on its investments” may put together a portfolio that includes a mix of projects in oil and gas, power, water, roads, rail and aisports. From the mix, the firm may choose to manage related projects as one program. All of the power projects may be grouped together as a power program. Similarly, all of the water projects may be grouped together as a water program.
Portfolio management refers to the centralized management of one or more portfolios and includes identifying, prioritizing, authorizing, managing and controlling projects, programs and other related work. Portfolio management focuses on ensuring that projects and programs are reviewed to prioritize resource allocation and that the management of the portfolio is consistent with and aligned to organizational strategies.
Program Management
A program refers to a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually. Programs may include elements of related work outside the scope of the discrete projects in the program. For example, a new car model program that involves projects of the design and upgrades of each major component (e.g. the transmission, engine, interior and exterior) while ongoing manufactoring occurs on an assembly line.
Program Management can be viewed as the centralized, coordinated management of a group of projects to achieve the program’s objectives and benefits. Programs can involve several repetitive or cyclical undertakings. For example, utility companies may combine a series of projects into an annual “construction program”.
Projects and Strategic Planning
Projects are a means of organizaing activities that cannot be addressed within the organization’s normal operational limits. Projects are often utilized as a means of achieving an organization’s strategic plan.
Projects are typically authorized as a result of one or more of the following strategic considerations. Some examples of these include, but are not limited to:
Projects, within programs or portfolios, are a means of achieving organizational goals and objectives, often in the context of a strategic plan. Although a group of projects within a program can have discrete benefits, they often also contribute to consolidated benefits as defines by the program.
Organizations manage their portfolios based on their strategic plan, which may dictate a hierarchy in the portfolio, program or projects. One goal of portfolio management is to maximize the value of the portfolio by careful examination of the candidate projects. Those projects not expected to meet the portfolio’s strategic objectives may be excluded. The organization’s strategic plan and available resources guide these investments in projects.
As figure 1-1 illustrates, organizational strategies and priorities are linked and have relationships between portfolios and programs, between programs and individual projects. Organizational planning impacts the component projects by means of project prioritization. Organization planning can direct the funding and support for the component projects on the basis of risk/reward categories, specific lines of business or general types of projects such as infrastructure and internal process improvement.
At the same time, projects provide feedback to programs and portfolios by means of status reports and change requests that may impact other projects, programs and portfolios. The needs of the projects, including the resource needs, are rolled up and communicated back to the portfolio level, which in turm sets the direction for organizational planning.
Project Management Office (PMO)
A PMO is an organizational body or entity that can be responsible for the centralized and coordinated management of the projects, programs and portfolios under its domain. The projects supported or administrated by the PMO may not be related other than by being managed together. The specific form, function & structure of PMO are dependent upon the needs of the organization that it supports.
A PMO may be delegated authority to act as an integral stakeholder and a key decision-maker during the initiation phase of each project, to make recommendations or to terminate projects to keep business objectives consistent. In addition, the PMO may be involved in the selection, management and redeployment of shared or dedicated project resources.
Some of the key features of a PMO may include, but are not limited to:
Project managers and PMOs pursue different objectives, are driven by different requirements. All of these efforts, however, are aligned with the strategic needs of the organization. Differences between the role of project managers and a PMO may include following:
This should give you an idea about the need of strategic goals of an organization and how they get segregated into programs and projects. You can clearly identify the projects that are aligned with organization’s strategic goals to take them forward and remove projects that are not aligned or adding value to organization’s strategic goals. You should also get an idea about role & importance of project manager & PMO in case of multiple projects.
Reference: PMI PMBOK
Any one working for any domain can apply for PMP certification @ PMI. The main requirement is, he/she should have worked as Project Team member in different knowledge areas of Project Management for specific hours. You can find more information @ http://www.pmi.org
Here are the steps that need to perform to become PMP:
I hope, this helps! In case of any query, post your comment, i will respond to it as soon as possible.
Posted in Project Management | Tags: How to become PMP, PMBOK, PMI, PROXALT, Steps for PMP, www.pmi.org