Project Management Quick Reference by Robert Perrine Release 2.4 October 2007

Work Breakdown Structure Work Breakdown Structure Technique Term Description Step 1: Decide upon the product to be delivered from this project. The key inputs into this process are the Scope Statement and the Scope Management Plan. Step 2: Identify the major deliverables. Deliverables are both the subsystems of the product and also the process and artifacts required to run the project. Step 3: Decompose the deliverables into work breakdown packages where the scope of each package is optimal for managing the effort. A package should be small enough to manage and large enough to appear meaningful when reporting. Step 4: Review the WBS with the appropriate stakeholders and update as required to ensure the WBS is sufficiently detailed to define the scope while high level enough to be manageable. Activity The scope of a work package is further decomposed during the Activity Definition process into activities. An activity is a grouping of related tasks. Code of Accounts A Code of Accounts is the labeling scheme used to link the work packages together and to facilitate effective communication. The PMBOK section number scheme is an example of a Code of Accounts. Task A Task is the smallest subdivision of work in the project schedule. Tasks are grouped into activities and activities are grouped into work packages. WBS Element Every component in the WBS is a WBS element. Work Breakdown Package The WBS Package is the lowest level of the WBS. Each package should be decomposed to a manageable scope while remaining large enough to be meaningful when reporting to the stakeholders. Work Breakdown Structure A WBS is a hierarchical representation of the elements of work required to compete the project. The WBS can be organized around the subsystems in the product, the project team organizational structure, geography or any other logical grouping. Always include the work of project management in the WBS.

Critical Path Method Pick ONE Style and stay with it For Me, the easiest convention is:    Starting Point: Zero    Addition: Early Finish = Early Start + Duration    Increment: Early Start = Early Finish of LATEST predecessor   Forward Pass    Read the problem carefully    Draw the diagram with your notation    Add the values given by the Question    Work left to right on tasks with 1 predecessor    When tasks Join, Latest EF wins Backward Pass    Convention going back matches forward    Start with the End Node    Work right to left    Late Finish = Late Start of EARLIEST dependent    Late Start = Late Finish - Duration WBSID Duration Float Early Start Early Finish Late Start Late Finish Critical Path    Project must have a single start and single end    Calculate the Floats    Float = Late Finish - Early Finish    Critical Path is the set of Nodes with 0 Float    Write down your answer   Answer the Question    Read the problem carefully -- again    Compare your answer to the list of answers    Then answer the question Relationship Example Finish-Start Buy ticket, enter theater Finish-Finish Finish collecting ballots, finish counting votes Start-Start When pigs fly Start-Finish Inaugurate new governor, retire old governor Fast Tracking Starting a dependent task before it's predecessor is completed. Re-Estimating Re-evaluating project requirements to fit the work into the allotted time. Lag Delay between the finish of one task and the start of the dependent task Lead Negative lag Three-point Average Expected Duration = (Optimistic + Most Likely + Pessimistic) / 3 Weighted Average Expected Duration E = (Optimistic + 4*Most Likely + Pessimistic) / 6 Standard Deviation Sigma = (Pessimistic - Optimistic) / 6 Variance Variance = (Sigma)^2 Crashing    Find the Critical Path    Only crash nodes on the Critical Path    Work from highest Benefit/Cost order    Crash one node at a time    Re-Evaluate the Critical Path after every change    Stop when the desired schedule reduction is achieved

Earned Value Quick Reference Earned Value Vocabulary AC Actual Cost (to date) BAC Budget At Completion (planned budget) CPI Cost Performance Index (CPI = EV / AC) CV Cost Variance (CV = EV - AC) EAC Estimate At Completion (Formulas are listed below) ETC Estimate To Complete (ETC = EAC - AC) EV Earned Value (EV = PV * %Complete) PV Planned Value: BAC for this task or CAP SPI Schedule Performance Index (SPI = EV / PV) SV Schedule Variance (SV = EV - PV) VAC Variance At Completion (VAC = BAC - EAC) Key Earned Value Formulas Cost Performance Index CPI = EV / AC Cost Variance CV = EV - AC Earned Value (for a task) EV = PV * %Complete Estimate To Complete ETC = EAC - AC Schedule Performance Index SPI = EV / PV Schedule Variance SV = EV - PV Variance At Completion VAC = BAC - EAC % Schedule Variance SV = ( EV - PV ) / PV Estimate At Completion Equations EAC = AC + ETC ReEstimated When the project is re-estimated EAC = AC + (BAC - EV) Atypical When variances are not typical EAC = AC + ((BAC - EV) / CPI) Typical When variances should stay the same EAC = BAC / CPI Typical Projection based upon variances to date Estimates Order of Magnitude -25% > +75% Preliminary -15% > +50% Budget -10% > +25% Definitive -5% > +10% Final 100% Accurate Vocabulary that is slowly being phased out ACWP Actual Cost of Work Performed (replaced by AC) BCWP Budgeted Cost of Work Performed (replaced by EV) BCWS Budgeted Cost of Work Scheduled (replaced by PV) Derivation of EAC equations EAC = AC + (BAC - EV) = AC + ((BAC - EV) / CPI), when CPI = 1 EAC = AC + ((BAC - EV)/CPI) = AC + BAC/CPI - EV/CPI = BAC/CPI Hence, EAC = AC + ((BAC – EV) / CPI) is the basis for all of these special cases. Quality Quick Reference Term Definition Appraisal Costs Testing, inspections and certifications to substantiate the quality of the product. Attribute A binary, yes/no, inspection technique. Benchmarking Compare previous activities to the current activities as a standard for performance measurement. Conformance Prevention plus Appraisal Control Chart In control when all values are within plus or minus 3 standard deviations, and 7 values never trend the same. Design of Experiments A statistical study to determine which variables have the most influence. External Failure Costs Costs after hand-off including warranty, repairs, returns and other corrective actions. Failure Costs Internal failures are rework and scrap. External failures are service issues. Internal Failure Costs Costs that occur within the operation such as corrective actions, scrap and rework. Joseph M. Juran Fitness for purpose. Also, grades are separate from quality. Kaizen Japanese word that means "continuous improvement". Improve the people and then the process. Non-Conformance Failures, both internal and external Philip B. Crosby Zero Defects. The cost of quality is the cost of non-conformance. Pareto Diagram An ordered histogram. Paretos rule is that 80% of the problems will derive from 20% of the causes. Prevention Costs Costs like planning, training and process improvements undertaken to reduce the probability of defects occurring. Quality "Quality is 'the totality of characteristics of an entity that bear on its ability to satisfy stated or implied needs'". Scatter Diagram Plot of the independent variable (input) against the dependent variable (output). Variable Something that can be measured. W.E. Deming 85% of quality is management's responsibility. Standard Deviations Sigma % of Population 1 68.27% 2 95.45% 3 99.73% 4 99.994% 5 99.99994% 6 99.9999998% HR Quick Reference Organizational Structures Functional Weak Matrix Balanced Matrix Strong Matrix Projectized One boss -- functional mgr Two bosses Two bosses Two bosses One boss -- project mgr Little project focus Conflicted goals Conflicted goals Conflicted goals Uncertain at project end Focused on specialization Function first, then project Balance function & project Project first then function Focus on the project Cost of change increases as more work is finished       Ability to influence drops as project nears completion Responsibility Assignment Matrix Activity Create project charter R C C I Create prelim scope R I C C Create project plan R I C C A - accountable R - responsible C - contributing I - informed Types of Power Power Illustration Referent Respect Expert Knowledge Reward Gratification Legitimate Formal Punishment Coercive Lines of Communication L = (n) * (n-1) / 2    Where n is the number of people   Stages of Team Formation Stage Behaviors Forming Formal and reserved. Storming Confrontational while trying to define territory. Norming Comrade with consensus on decisions. Performing High levels of trust and performance. Conflict Resolution Techniques Technique Interpretation Confronting #1 Solve the problem. Win-Win. Compromising #2 Both sides loose. Smoothing Ignore (loose-loose) Forcing Impose a solution. Win-Lose. Withdrawal Avoidance. Postpone resolution. Motivational Theories Theory Description Achievement Achievement, Power and Affiliation. Contingency People strive for competency. Expectancy Victor Vroom noted that people live up to their expectations. Herzberg Hygiene Theory    Hygiene factors prevent dissatisfaction with the work environment.    Motivators are oriented to the satisfaction the comes with the work. Hersey and Blanchard Life-cycle progresses from Directing to Coaching to Supporting to Delegating Maslow Hierarchy of Needs Self Actualization  =  Peak performance. Self Esteem  =  Respect from others and respect for self. Social  =  Family, friends and community. Safety & Security  =  Physical welfare. Basic Physical  =  Survival necessities such as food, clothing and shelter. McGregor Theory X managers think that people do not want to work. Theory Y managers think people want a chance to excel at their job. Ouchi Building relationships of trust and commitment between the workers and management will yield increased motivation and productivity. Leadership Styles   Directive Behavior Low High High Supportive Behavior Low 3) Supporting Low Direction High Support 2) Coaching High Direction High Support 4) Delegating Low Direction Low Support 1) Directing High Direction Low Support Thinking Styles   Sequential   Concrete Fixer Resists Change Organizer Team Builder Abstract Explorer Entrepreneur Intuitive Vision   Random   *EMV Quick Reference * Expected Monetary Value (EMV), also known as a Decision Tree Step 1: List the alternatives Step 2: Assign Probabilities Step 3: Draw the Tree Step 4: Assign probable benefits and costs Step 1: List the alternatives Step 2: Assign probabilities Step 3: Draw the tree Step 4: Assign probable benefits and costs Step 5: Calculate the expected value   Net Revenue = (Benefit – Cost)   Expected Value = (Net Revenue) * (Probability)   Expected Value at a junction is the sum of the branches   Work every branch and junction from right to left Step 6: Solve   Either for the whole   Or to identify the best branches Step 5: Calculate the expected value Step 6: Solve 700 360 1060 Risk Strategies Name Description Risk Acceptance Risk Acceptance means choosing to take no other action. Most projects accept the risk that a meteor might extinguish life on earth and take no action to avoid or mitigate that risk. Risk Avoidance Risk Avoidance means taking a specific action that prevents this risk from materializing. For example, many companies have a policy against flying an entire team on the same airplane to avoid loosing the entire team in one accident. Risk Mitigation Risk Mitigation minimizes the impact. For example, passwords mitigate, but do not avoid the risk from a hacker. Risk Transference Risk Transference assigns the risk to someone else. Insurance is a common form of transference. Residual Risks Risks that are not accounted for specifically. Generally these risks are covered by the contingency fund. Secondary Risks Side-effects from following a risk mitigation strategy. Project Terminations Name Description Addition Addition into normal operations through evolution. Starvation Starved of resources or budget. Integration Integrated into other projects or operations at the expense of this project. Extinction Extinct because it finished; the project concluded. Finance Quick Reference Term Definition Payback Period Occurs when: Sum(Total Project Costs) = Sum(Accumulated benefits) Future Value FV = PV * (1 + i)^n Present Value PV = FV / (1 + i)^n Net Present Value NPV = PV(Benefits) - PV(Costs) Internal Rate of Return Interest Rate when NPV = 0 Direct Costs Costs directly chargeable to the project. Contract labor is often a direct cost. Fixed Costs Costs that are charged at a specific price regardless of hours used or units produced, such as rent. Indirect Costs Overhead costs that are charged to the project, such as building insurance. Opportunity Costs The lost benefit that comes about from choosing one project or alternative over another. Sunk Costs Expenses already incurred. Do not count Sunk Costs when comparing future alternatives. Variable Costs Costs that increase per hour or per unit. Fixed Price Contracts Lump Sum, Fixed Price plus Incentive, Unit Price. Seller has the most risk. Useful if the project has a high value or if it is expected to take a long time to complete. Cost Reimbursable Contracts Cost Plus Fixed Fee, Cost Plus Incentive Fee. Buyer has the most risk. Use when there is a lot of uncertainty or a large payment required early in the project. Time & Material Contracts Somewhere between Fixed Price and Cost Reimbursable. Top-Down or Analogous Estimating Initial estimates are typically made from a top-down perspective based upon similarities to historical projects. For example, if the scope of a new project seems to imply the need for three new screens, and a previous project that required two new screens took 4 days, the initial estimate for the new project would be 6 days. Such estimates are sufficient for the project charter. Additionally, many smaller projects do not justify a more elaborate estimate. Parametric Estimating Multiply the number of things by some unit. For software this is the COCOMO method. It is more common in construction with $/sq ft or hours/cubic yard. Bottom-Up Estimating Larger projects, however, cannot easily be estimated as a whole. For larger projects IT has traditionally identified the detailed tasks and then estimated each individual task. This is a bottom-up approach. Both approaches utilizes the expert opinion of the person responsible for the work. Both approaches rely upon historical records of previous projects. On small projects, one person can usually provide the estimate for the entire project. On large projects, the task durations are typically estimated by the various managers responsible for each task area. Those estimates are then combined with the work breakdown structure so that resource allocations and resource leveling can be considered when deriving an estimate of the total project duration. Net Present Value Example Term Year 1 Year 2 Year 3 Year 4 Year 5 Project Total Development 35,000.00 45,000.00 5,000.00 - - 85,000.00 Licensing 10,000.00 30,000.00 10,000.00 10,000.00 10,000.00 70,000.00 Maintenance - 5,000.00 5,000.00 10,000.00 5,000.00 25,000.00 Total Annual Cost 45,000.00 80,000.00 20,000.00 20,000.00 15,000.00 180,000.00 Revenues 4,000.00 25,000.00 50,000.00 70,000.00 80,000.00 229,000.00 Net Annual Revenue (41,000.00) (55,000.00) 30,000.00 50,000.00 65,000.00 49,000.00    10.0% Present Value (37,272.73) (45,454.55) 22,539.44 34,150.67 40,359.89 14,322.73    16.9% IRR (by trial and error) (35,071.36) (40,243.92) 18,777.06 26,769.80 29,768.52 0.10 Cumulative Costs 45,000.00 125,000.00 145,000.00 165,000.00 180,000.00   Cumulative Revenue 4,000.00 29,000.00 79,000.00 149,000.00 229,000.00   Cumulative Net (41,000.00) (96,000.00) (66,000.00) (16,000.00) 49,000.00

Legend for the following Charts Abbrev Usage √ Embedded C Create I Input I/U Input and Update T Tool or Technique U Update Color Codes Integration   Quality   Procurement Scope   Human Resources   External or Unknown Time   Communications   Multiple sources Cost   Risk     Relationship of Domains, Process Groups and Knowledge Areas

Project Management Artifacts Artifact Name

Initiation

Planning

Executing

Monitoring and Controlling

Closure

Accepted deliverables

C

Activity attributes

C

I/U

I/U

I/U

I/U

U

Activity cost estimates

√

I

C

I

I

I

U

Activity cost estimates supporting detail

C

I

Activity duration estimates

C

I

Activity list

C

I/U

I

I

I

U

Activity res reqs / Resource requirements

√

C

I

I/U

I

I

Administrative closure procedure

I

C

Approved change requests

I

I

I

I

I

C

I

I

I

I

I

C

I

I

Approved corrective actions

I

C

C

Approved defect repair

I

C

Approved preventative actions

I

C

Assumptions

C

I

Closed contracts

C

Communications management plan

√

C

I

I

Constraints

C

I

Contract (external)

I

I

Contract (solicitation)

C

I

Contract closure procedure

C

I

Contract documentation

C

I

I

Contract management plan

√

C

I/U

I

Contract statement of work

C

I/U

Cost baseline

√

C

I

I

I/U

Cost management plan

C

U

I/U

I

Deliverables

C

I/U

I

I

I

I

Enterprise environmental factors

I

I

I

I

I

I

I

I

I

I

I

I

I

I

I

Evaluation criteria

C

I

Final product, service or result

C

Forecast completion

C

I

Forecasts

C

C

Implemented change requests

C

I

Implemented corrective actions

C

I

Implemented defect repairs

C

I

Implemented preventative actions

C

I

Make-or-buy decisions

C

I

Milestone list

√

C

I

Organizational process assets

I

I

I

I

I

I

I

I

I

I

I

I

I

I

I

I

I

I

U

I

U

I

I

U

U

U

I/U

I/U

U

I/U

U

U

I/U

U

Performance measurement baseline

C

I

Performance measurements

C

C

I

Performance reports

I

I

I

I

C

I

I

Preliminary project scope statement

C

I

I

I

I

Process improvement plan

√

C

I

Procurement document package

C

I

Procurement documents

C

I

Procurement management plan

√

C

I

I

I/U

U

Project charter

C

I

I

I

Project funding requirements

C

I

Project management plan

C

I

I

I

I

I/U

I/U

I/U

I

I

I

I

U

I

I

I

U

I

I/U

U

U

I/U

U

I/U

I

U

U

U

I

I

Project management processes

I

Project organizational charts

C

I

I

Project schedule

√

C

I

I

I

I

Project schedule network diagrams

C

I

Project scope management plan

√

C

I/U

I/U

I

I

Project scope statement

C

I/U

I

I

I

I

I

I

I

I

I

I

I

I

U

I

I/U

Project staff assignments

C

I

I

Project statement of work

I

I

Proposals

C

I

Qualified sellers list

C

I

Quality baseline

√

C

U

Quality checklists

C

I

Quality control measurements

I

C

I

Quality management plan

√

C

I

I

Quality metrics

C

I

I

Recommended corrective actions

C

C

I

C

C

C

C

C

C

C

C

C

Recommended defect repair

C

I

C

Recommended preventative actions

C

I

C

C

C

Rejected change requests

I

C

Requested changes

C

C

C

C

C

C

C

C

C

C

C

C

C

C

I

C

C

C

C

C

C

C

C

Resolved issues

C

Resource availability (org. asset)

I

Resource availability

C

I

U

Resource breakdown structure

C

Resource calendar / Project calendar

U

I

I/U

I

Risk management plan

√

C

I

I

I

I

I

Risk register

√

I

I

I

C

I/U

I/U

I/U

I

I

I

U

Risk-related contractual agreements

√

C

I

I

I

Roles and responsibilities

C

I

I

Schedule baseline

√

C

I/U

Schedule management plan

C

U

I

I

I

Schedule model data

C

U

Scope baseline

C

U

Selected sellers

C

I

Staffing management plan

√

I

C

I/U

I

I

Team performance assessment

C

I

Validated defect repair

I

C

C

Validated deliverables

C

WBS dictionary

C

I

I

I

I

I

I/U

Work breakdown structure

C

I

I

I

I

I/U

Work performance information

C

I

I

I

I

I

I

I

I

I

I

I

Project Management Tools and Techniques Name of the Tool or Technique

Initiation

Planning

Executing

Monitoring and Controlling

Closure

Acquisition

T

Additional quality planning tools

T

Advertising

T

Alternatives analysis

T

Alternatives identification

T

Analogous estimating

T

T

Applying calendars

T

Applying leads and lags

T

T

Arrow Diagramming Method (ADM)

T

Assumptions analysis

T

Benchmarking

T

Bidder conferences

T

Bottom-up estimating

T

T

Buyer-conducted performance review

T

Cause and effect diagrams

T

Change control system

T

Checklist analysis

T

Claims administration

T

Co-location

T

Communications methods

T

Communications requirements analysis

T

Communications skills

T

Communications technology

T

Contingent response strategy

T

Control charts

T

Configuration management system

T

Conflict management

T

Contract change control system

T

Contract negotiation

T

Contract types

T

Cost aggregation

T

Cost-benefit analysis

T

Cost change control system

T

Cost of quality

T

T

Cost reporting systems

T

Critical chain method

T

Critical path method

T

Data gathering and representation techniques

T

Decomposition

T

T

Defect repair review

T

Dependency determination

T

Design of experiments

T

Determine resource cost rates

T

Develop qualified sellers list

T

Diagramming techniques

T

Documentation reviews

T

Earned value management

T

Expert judgment

T

T

T

T

T

T

T

T

T

T

T

T

T

T

T

Flowcharting

T

Forecasting

T

Funding limit reconciliation

T

General management skills

T

Ground rules

T

Histogram

T

Independent estimates

T

Information gathering and retrieval system

T

Information gathering techniques

T

Information distribution methods

T

Information presentation tools

T

Information technology

T

Inspection / Inspections and audits

T

T

T

Issue log

T

T

Lessons learned process

T

Make-or-buy analysis

T

Negotiation

T

Networking

T

Observation and conversation

T

Organization charts and position descriptions

T

Organizational theory

T

Parametric estimating

T

T

T

Pareto chart

T

Payment system

T

Planning component

T

Planning meetings and analysis

T

Pre-assignment

T

Precedence Diagramming Method (PDM)

T

Performance information gathering and compilation

T

Performance measurement

T

Performance measurement analysis

T

Performance reporting

T

Probability and impact matrix

T

Process analysis

T

Procurement audits

T

Product analysis

T

Progress reporting

T

Project management information system

T

T

T

T

T

T

T

Project management methodology

T

T

T

T

T

T

T

Project management software

T

T

T

T

Project performance appraisals

T

Project performance reviews

T

Project selection methods

T

Proposal evaluation techniques

T

Published estimating data

T

Quality audits

T

Quality control tools and techniques

T

Quality planning tools and techniques

T

Quantitative risk analysis and modeling techniques

T

Recognition and rewards

T

Records management system

T

T

Replanning

T

Reserve analysis

T

T

T

T

Resource leveling

T

Risk audits

T

Risk categorization

T

Risk data quality assessments

T

Risk probability and impact assessment

T

Risk reassessment

T

Risk urgency assessment

T

Rolling wave planning

T

Run chart

T

Scatter diagram

T

Schedule change control system

T

Schedule comparison bar charts

T

Schedule compression

T

Schedule model

T

Schedule network analysis

T

Schedule network templates

T

Screening systems

T

Seller rating systems

T

Stakeholder analysis

T

Standard forms

T

Statistical sampling

T

Status review meetings / Status meetings

T

T

Strategies for both threats and opportunities

T

Strategies for negative risk or threats

T

Strategies for positive risk or threats

T

Team-building activities

T

Technical performance measurement

T

Templates

T

Templates, forms, standards

T

Three-point estimates

T

Time reporting systems

T

Training

T

Variance analysis

T

T

Variance management

T

Variance and trend analysis

T

Vendor bid analysis

T

Virtual teams

T

Weighting system

T

What-if scenario analysis

T

Work breakdown structure templates

T