PROJECT MGT IS IMPORTANT: c. Bring about a result.

1. Shortened product life cycles

2. Narrow Product Launch windows - Projects like a good story have a
3. Increasingly complex and technical beginning, middle, and an end
products - End when the scope of the prophet
4. Emergence of global markets has been met
5. Economic period marked by low
inflation PROJECTS ARE TEMPORARY:
1. Runs out of time
EXAMPLES: 2. Runs out of cash
● Design new products or service 3. Won’t be able to complete the scope
● Convert from one computer objectives.
application to another
● Building new workhouse - Thus, project is scrapped
● Moving from one building to another - Temporary means that the project is
● Organizing political campaigns temporary, not the deliverable
● Designing and building a new - The end result is usually tangible,
airplane permanent, something that’ll be
around longer than the process it
REASONS WHY PROJECTS ARE took to create it
CREATED: - Temporary describes the market
- An opportunity based on the market window or opportunity
conditions. Thus, take advantage of - Projects can be created that
it capitalize on fads
- Special needs within your company - Projects have to deliver fast before
that currently you’re working in terms the fad fades away and next craze
of: begins
1. Customers - Fads and opportunities are
2. Technology temporary; projects which feed off of
3. Laws these are temporary as well
- Project teams are often more
DEFINING A PROJECT: WHAT IS & IS temporary than the project itself
NOT: - Project teams last as long as the
1. Projects are temporary because they project does or lasts.
have a beginning and an end - Once the project is complete, the
2. Projects are endeavors because team disbands and the project team
they are unique attempts in making members move onto other projects
a product or designing a product or within the organization.
service. Meaning by unique, it is
something that nobody has ever
done before.
3. Project creates:
a. Some thing or an event PROJECTS CREATE UNIQUE RESULTS:
b. A service,
 ● Projects are distinct; no two projects - Managing demanding projects is a
are the same. great way to learn quickly
● Even if it’s the same basic approach - It may seem hard at the time but
to ge to the same end result, there there’s no substitute for
are unique factors within each on-the-job-training in challenging
project such as : situations.
1. The time it takes
2. The stakeholders involved, PROJECT MANAGEMENT:
3. The environment the project
takes to place in ● Supervisions and control of the work
required to complete the project
● They are unique because no one vision
has ever done this before, they don’t ● Set of tools and techniques
fit into the regular operations of a performed by people to describe,
company organize, and monitor the word of
● Special reason why the project has project activities with sole purpose of
been created fulfilling your vision
● Work and deliverables that don’t fit ● Work processes that initiate, plan,
into the normal day-to-day execute, and close work:
operations but still have merit for the 1. Administrative tasks for
org. planning, documenting, and
● All projs. Begin as a concept controlling work.
● All project concepts to create a new 2. Leadership tasks for
product or service typically includes visioning, motivating, and
a broad vision of what the end result promoting work associates
of the project will be. ● The way you manage a company is
● Temporary proj. Results in the the way you manage projects since
unique product or service through it is a matter of allocating resources.
progressice elaboration
PROJECTS AND OPERATIONS
PROGRESSIVE ELABORATION: MANAGEMENT:

● Developing in steps and continuing 1. Processes

by increments ● Day to day activities
● As a project moves closer to ● Use existing systems,
completion, the identified needs that properties, and capabilities,
launched the project are revisited ● Repeat processes or product
and monitored ● Several objectives
● Complete understanding of the ● On-going
needs and ability to fulfill those ● People are homogeneous
needs comes from progressive ● Systems in place
elaboration. ● performance , cost, time
known
● Part of the line organization
 ● Bastions of established plan for communications within any
practice project.
● Supports status quo
PROJECT RISK MANAGEMENT:
2. Project:
● Take places outside the ● Focuses on risk planning, analysis,
process world monitoring, and control
● Unique and separate from ● Qualitative analysis and quantitative
normal analysis to prepare for project risks.
● Organization work ● Once the project moves forward,
● New processes or product monitor and react t o identified risks
● One objective as planned.
● One shot- imtied life ● Deals with dangers that probably
● More heterogeneous occur or affect the project; thus, prj
● Systems must be created managers must be prepared by
● performance , cost , and time project risk management
less certain
● Outside of line organization PROJECT PROCUREMENT
● Violates established practice MANAGEMENT:
● Upset status quo
● Covers all the business of the
PROJECT HRM: project procurement, the processes
to acquire and select vendors, and
● Focuses on organizational planning, contract negotiation.
staff, acquisition, and team ● Contract between the vendor and
development. the project manager's organization
● Acquire the project team, develop will guide all interaction between the
this team, and then lead them to the project manager and the vendor
project results. ● Covers all outsource and insource
activities of the project itself.
PROJECT QUALITY MANAGEMENT:
MANAGEMENT BY PROJECTS
● Centers on quality planning, APROACH:
assurance, and control
● Manage any level of work as a
PROJECT COMMUNICATIONS project
MANAGEMENT: ● Apply general business skills to each
project to determine their value,
● 90% of a project manager’s time is efficiency, and, ultimately, their
present communicating returned on investment
● Details how communication ● The way we set plans must be
happens, outlines stakeholder rooted into our set of objectives
management, and shows how to ● Set management priorities based on
the project
RELATED AREAS OF PROJECT project managers but with a
MANAGEMENT : different project team
- They follow the same quality
1. Programs Management: guidelines and expectation of
- Management of multiple the overall project
projects all working in unison - The project manager has to
towards a common goal work with the subproject
- Collection of individual team regarding scheduling ,
projects working in alignment value, and cost to ensure the
towards a common end deliverables and activities of
- Specific projects within a the subproject integrate
program are of limited smoothly with the “master “
duration. project.
- Many project but each and
every one of them has a 4. Project management Office
single goal - Organizes and manages
control over all projects
2. Portfolio Management: within an organization
- Not the sames as a program - Also known as a program
- A collection of projects management office, project
- Not all project get selected office or simply the program
- The decision to choose one office
project over another may - Coordinate all aspects of,
vary from organization to methodology, and
organization nomenclature for project
- Projects in a program could processes, templates,
be : software, and resource
a. Within one line of assignment.
business - Project management office
b. Based on the oversees all the activities in a
strategies within an project
organization - Centrally tran and monitor all
c. Follow the guidance risks within all projects and
of one director within take advantage of and
an organization prepare for risks that mya, or
may not come into fruition
3. Subproject implementation: - Create a risk database to
- Alternative to programs track pending and past risks
- Exists under the parent and plan accordingly
project, but follows its own - Centralize communication
schedule to completion among project managers,
- May be outsourced, assigned sponsors,and other
to other project managers, or stakeholders
managed by the patent
 - Centralized communication 4. Nothing is sacrificed in terms of the
center can alleviate the quality of the product or service.
demand on project managers
to communication with THE PROJECT MANAGEMENT
stakeholders as all PROCESS (WEEK 3):
communication can flow
through the PMO rather than FOR A PROJECT TO BE SUCCESSFUL,
the individual project WE NEED …
manager
1. Application of appropriate project
5. Portfolio Management Systems: management processes to complete
● Identify potential projects the project
● Prioritize among the potential 2. Solid plan and execution of this solid
projects: plan to meet project and product
a. What value does requirements
each potential project 3. Method to satisfy stakeholder
bring to the expectations
organization? 4. Approach to keep the project’s time,
b. Are the demands of cost, quality, scope, resources, and
performing each risk in balance
project understood?
c. Are the resources ELEMENT OF PM:
needed to perform 1. Cost, time, scope, cultural
the project enough? achievability, technical achievability,
d. Is there enthusiastic and more are all related and
support both from the interdependent
external customers 2. A small change, delay, decision (or
and from one or more lack thereof) can amplify into serious
internal champions? problems further down the project
e. Which projects will timeline
best help the
organization achieve LEARNING PROJECT PROCESSES:
its goals ?
● Processes are series of activities
DETERMINANTS OF PROJECT that create inputs into outputs
SUCCESS: ● All projects, form technology to
architecture, are composed of
1. clients/customers must be satisfied processes
and happy with the project output’s ● Processes are series of actions with
success a common goal to create a result
2. It must be within the agreed upon ● People perform processes
budget of the project ● Processes are not the individual
3. It is within the time constraints of the activities, but the control of individual
project
 activities to complete a project ● Idea stage:
phase ○ Should we do it?
○ Are the benefits we
NOTE: To manage the processes, we need expect to achieve
to manage the people work the costs we will
have to pay?
RULE: (1) People Management and (2) ○ Are there better ways
Communication Management to approach the
issue?
MANAGING THE PROJECT:
● There’s more than one correct way ● Identifying needs :
to manage a project ○ Project is called to
● Role of project manager to find the solve a need:
best way a. Reducing
● Processes are integrative and costs
interdependent b. Increasing
revenues
IDENTIFYING PROJECT MANAGEMENT c. Eliminating
PROCESS GROUPS: wastes
● Process groups are not solo d. Increase
activities productivity
● Groups are a collection of activities and efficiency
that contribute to the control and e. Solving a
implementation of the project business
management life cycle
● The output of one process group will ● Identifying business needs:
act as input for another process ○ Identify the correct
group rationale of a project
● Project management processes are ○ By examining the
the processes you’ll want to study problem, opportunity
and analyze and solution to see
● Product-oriented processes, on the how the potential
other hand, are unique to the project and its
organization creating the product expected outcome fits
- Logical flow with business visions
- Overlap with other groups and goals
- Sometimes, they are ○ Why is it important?
repeated
● Project initiation:
The Project Process: (see screenshot ○ Can we do it?
mobile ) ○ Is the project
technically feasible?
1. INITIATING: ○ Are there required
● Project is authorized resources available ?
 ○ Launches the project any significant risks
process and uncertainties
○ Allows the project 10. Plance for project
manager to have the communications
authority to begin the - Marketing
project plans
○ Admits that there is 11. Plans for ensuring
some problem that a project quality
solution should be ● Conduct a feasibility study:
solved 1. Conducted to prove a
problem actually
● What to include in the Plan: exists. List of
1. An overview of the possible causes of
reasons for your the problem
project 2. Document list of
2. A detailed description opportunities at hand
of intended results 3. Determine if a project
3. A list of all constraints can be created to
the project must resolve the problem
address or take of an
4. A list of all opportunity
assumptions related 4. Study the cost of the
to the project solution in relation to
5. A list of all required the possible rewards
work gained by the
6. A breakdown of the implementation
roles of you and your
team members will ● Create the product
play description:
7. A detailed project ○ The solution
schedule ○ Describes what the
- What is your expected outcome of
organizational the project is to be
chart and ○ Describes the
calendar? high-level solution or
8. Needs for personnel, realized opportunity
funds, and that the project will
non-personnel accomplish
resources/ how many
people you need?/ ● Create Project Charter:
how much money do ○ Authorizes the project
you need? ○ Officially names the
9. A description of how project manager
you plan to manage
○ Authorizes project e. Stakeholder
work influences
○ Officially launches the f. Functional
project organizations
○ Should be g. Assumption
approved/funded by h. Constraints
someone who has the i. Summary
power to authorize budget
the project manager, j. Contract
the needed funds,
and the resources ● Scope statements:
that will be utilized ○ Defines what the
within the project project will
work. accomplish, create,
○ What is the objective and deliver
of the whole project ○ Defines purpose of
team similar to the project, in detail,
company mission, so that all
vision, and objective stakeholders may
○ Describes the needed share a common
resource to complete understanding of the
the project, and any project:
identified assumption ○ Create scope
to complete the statement:
project, and any a. Project vision
identified b. Deliverable
assumptions and requirements
constraints c. Product
○ Allows project requirements
manager to go about d. Project
the business of requirements
getting the project e. Project
work planned and boundaries
then finished f. Acceptance
○ It contains the criteria
following: g. High-level
a. Project scope control
requirements
or satisfaction 2. PLANNING:
b. Big picture ● Project objectives are
c. Project determined , as well as how
purpose to reach those objectives
d. Milestone with the given constraints
schedule
● Managers start formulating ● As you progress, you’re
the objectives learning and making the plan
better
● The 6P rule of project
management: - A good plan today is better than a
a. Prior perfect plan tomorrow
b. Planning - Prior experience and common sense
c. Prevents have a big role to play although
d. Poor planning is as much an art as it is an
e. Project exact science.
f. Performance
● Project Schedule:
● Two extremes of planning: ○ Scheduled according
1. Ready, fire, aim to time constraint
2. Paralysis by analysis ○ Using time
constraints of a
● Project planning: deadline on the
a. Iterative in nature project,
b. Obtain buy-in of ○ All activities must be
stakeholders scheduled, from the
c. Stakeholders’ projects start to its
expectations and completion, to ensure
requirements must be the project can finish
analyzed on time
d. Also be known as
rolling wave planning ● Completing Estimates
- As you’re ○ Time through Project
learning, the Network Diagram
plan is ○ Time through Work
growing Breakdown Structure
- Similar to an
● Rolling wave planning: plan org. chart
on immediate activities of the - Instead of
project rather than on people, it
remote, future activities that entails job
may be affected by the requirements
outcome of the direct project and activities
results.
● Planning solutions for long ● Project Financials:
projects whose late activities ○ Project budget is cost
in the project schedule are of the project, cash
unknown or will be flow projections, and
determined based on the how money will be
result of early project process spent
 ○ Should cover all the adhere to quality
cost of the team’s control mechanisms
time, facilities, and all and ongoing quality
foreseeable expenses improvement.
○ How much money do ○ Standards of what is
you have to spend or acceptable and not.
fund the project?
● QA and QC Framework
● Completing Estimates: ○ Quality assurance
○ Cost: top-down program
estimates, bottom-up
estimates, or informal ● Planning for Human
hallway estimates Resources Needs
- On the spot, ○ Proj. managers use
fast, or rush human resources and
hour leadership skills to
estimates guide and lead the
- A little bit project team to
accurate but project completion.
on time. ○ Measures how many
people you need
○ Identify range of ○ Manages how well
variance reflective of are your leadership
the degree of management skills
confidence of the
estimate, the ● Create
assumption the Communication/Marketing
estimate is based on Plan:
○ How long is the ○ Determine who needs
estimate valid? what information, how
they need it, and
● Create Quality Mgt Plan: when it will be
○ Details how the delivered (selective
project will map to the dissemination of data)
organizational quality ○ Team meetings,
policy reports, expectations
○ Provide specifics on for reports, and
how the project team expectation of
will meet the quality communication
expectations of the among members
organizational quality ○ Communication
assurance program equates to project
○ Sets guidelines for management : 90% of
how the project will project manager’s
 time is spent ○ Risk are analyzed for
communication both positive and
negative impacts
● Risk Management Planning: entered through risk
○ Risk is perceived matrix and planned
threat or opportunity accordingly
to completion of the ○ Accepted, avoided,
project mitigated, countered,
○ Defines the project or planned through
manager's obligations contingency
to acknowledge, ○ Assigned to risk
document, research, owners who will
and plan for risks monitor thresholds
within the project and triggers

● Identify Project RIsks: ● Planning for project

○ Allows project contracting:
manager and team to ○ Follows
determine high-level organizational
risks may influence policies and
feasibility, resources, procedures for
and requirements to procurement
complete the project ○ Finding qualified
○ Steer project toward vendors, requesting
different solution quotes or proposals,
○ Ongoing, active and reviewing those
project management proposals for best
process vendor
○ Outsourcing
● Complete Qualitative and
Quantitative Risk Analysis ● Officially Launching Project
○ Qualitative risk is for Work
probability and impact ○ Once project has a
matrix collective state of
○ Quantitative risk is agreement between
more in-depth study project manager,
of identified risks management, project
(mathematical team, and customer,
models) ○ Project is officially
○ Use simulation and allowed to begin
decision tree models
3. EXECUTING:
● Complete Risk Resource ● Project is executed utilizing
Planning : acquired resources or
 ● The action plan ● Developing Project Team:
● Preparing ○ Based on org. Structure
● Assign people to all project ○ Recruit project team or the
roles: introduce them to each team will be assigned to the
other and to the project project manager
● Giving and explaining tasks ○ Staffin
to all team members ○ Roles and responsibilities are
● Define how will the team needed for the project
perform its essential tasks ○ Subject to availability
and functions
● Set up necessary tracking ● Dispersing Proj. information:
systems ○ Information disseminated
● Announce project to the according to communications
organization plan
○ Ex: milestone reports,
● Directing and Managing project variance reports, and status
Execution: reports
○ Business of getting the
project done ● Managing Procurement Activities:
○ Team executes the work as ○ Obtain quotations, bids, and
defined in the project mgt proposals for the services or
plan and project manager goods to be purchased for
manage the work the project’s completion
○ Getting the job done ○ Making a decision as to
○ Mgt of organizational and which identified vendor will
technical interfaces be the source of the service
○ Project manager must or good being procured
interact with to ensure that ○ Manage outsourcers
project flows smoothly and
as planned 4. MONITORING AND
CONTROLLING:
● Execution is performing ● Project perf. Is monitored
● Doing tasks and measured to ensure the
● Assuring quality project plan is being
● Managing the team implemented ot design
● Developing the team specifications and
● Sharing information requirements
● Execution of project plan ● It is the feedback system
● Execution of vendor management ● Activities ensure project goes
● Management of project according to plan and actions
implementation need to be implemented
● Revist planning when projects go when evidence proves
awry project is not going to work
according to plan
● Verify project work and confirm the project
response to that work requirements have
● Control the predicted cost been met.
and schedule of project
● Compare actual and ● Implementation Scope
projected budgets Change Control:
● Comparing performance with ○ Ensure that
plans documented
● Fixing problem that arise procedures to permit
● Keep everyone informed that changes to the scope
everyone understand what are followed
they are doing ○ Have checklist that
● Examine change, requests, are negotiables and
changes, preventive actions, non-negotiable
corrective action, and defect
repair to see how these ● Enforce Schedule Control:
issues affect the remaining ○ Requires constant
portion of the project monitoring of project’s
● Update to the project plan progress, approval of
and project scope phase deliverables,
● Approve or decline change and task completion
requests ○ Monitoring time
● If customers request constraints daily
changenst, proj. managers
must ensure customer ● Managing Cost Control:
requests are documented ○ Requires accurate
● Request for extensions due estimates
to customer or client changes ○ Check and balance
against those
● Provide Scope Verification: estimates
○ Verify the work results ○ Monitor spending and
are within the money of the proj.
expectations or the
scope ● Mapping Quality Assurance
○ Done at project ○ As the project
phase completion continues, proj. Team
where the customer and manager need to
formally accept the verify that project
product of the prophet work results are
work mapping to the
○ Inspect , tour, and organization’s quality
take a walk-through assurance program
of the project as described in the
deliverables to
 quality management ● Monitor and control project
plan risks:
○ Risk response:
● Ensuring Quality control: include risk impact
○ Alignment with quality statements that detail
standards project risk, possible
○ Inspection dirven impact on project,
every time and probability
○ Design project in ○ Proj. manger and
away that keep management sign the
mistakes away from ʼfor each identified
the project customer risk beyond a
predetermined score
● Managing Project Team:
○ Limited authority of 5. CLOSING:
project manager has ● Project, its phases, and
over project team contracts are brought to a
formal end
● Ensuring performance ● Termination of the project
reporting: ● Client saying job well done
○ Accurate ● Final payment
measurement by ● Debriefing of the project
project team, proof of ● Account spending
work completion, and ● Procurement auditing (
factual estimates obligations, salaries )
○ Status reports to ● Confirmation that vendor
management are invoices and purchase orders
reflective of where the have been fulfilled, met , and
project has been, paid.
where it stand now, ● Finalize all reports
and where it’s ● Document project experience
heading ● Provide evidence of
customer acceptance
● Managing Project ● Learnings
Stakeholders: ● Thang and reward project
○ Stakeholders look to team for their hard work and
project manager for dedication
updates, guidance, ● Reflect on work completed,
and leadership on challenges of project.
project
○ Look to project —----------------- WEEK 4 ——----------
manager Ensure that
they get thing out of PROJECT SELECTION:
the project they want ● Resolving the unknown
 ● Predict the likelihood of completion will contribute to
project success organization
● Expected value of project’s ○ Cost-benefit analysis
success or cost of its failure
● Go/No Go decision-making ● Constrained optimization methods:
● It is done in phases ○ Approach is more scientific
and math driven
● Establish selection ○ Quantitative analysis
committee
● Review the project concept ● Generic Criteria for Project
documents and decide, Selection:
based on a myriad criteria, 1. ROI
which projects should go 2. Realized opportunities
forward 3. Market share
4. Customer perspective
It’s All about the Money: 5. Demand for product
● Organization are in business 6. Social needs
to make a profit 7. Increased revenues
● Concerned about choosing 8. Reduced costs
projects with the greatest
potential for revenue ● Screening Models:
● Non-profit ors. And gov’t ○ Help managers pick winners
agencies are not concerned from a pool of projects
with making profits ○ Numeric or nonnumeric
● But concerned about getting
greatest utilization ● Model selection basis:
● Select projects that provide 1. Realism
most benefit for least cost 2. Capability
● Motivation to use resources 3. Flexibility
to their fullest extent possible 4. Ease of use
while receiving greatest 5. Cost effectiveness
return possible is same 6. Comparability
● When taking a project, it’s all
about money ● Screening and selection issues:
● Take responsibility for new 1. Risk: unpredictability to firm
project is defining moment 2. Commercial: market potential
for project manager 3. Internal operating changes in
firm ops
EXAMINING PROJECT SELECTION 4. Addition: image, patent, fit
CRITERIA :
- All models only partially reflect
● Benefit measurement methods: reality and have both objective and
○ Tools to examine the benefits subjective factors imbedded
of a project and how project
 ● You’re in trouble when: ● Checklist Model:
1. Project has changed its ○ List of criteria applied to
name at least once to leave possible projects
its past behind and restore ■ Requires agreement
good reputation on criteria
2. You’re the latest in a long ■ Assumes all criteria
succession of project are equally important
managers ○ Valuable recording of
3. Other project managers opinions and encouraging
seem far too pleased that discussions
this particular project has
fallen to you ● Simple Scoring Method:
4. Project has been running for ○ Series of questions or
a very long time without models that score company
delivering anything goals or project goals against
criteria determined by
EXAMINING BENEFIT MEASUREMENT selection or review
METHODS: committee
● Historical information: ○ Each proj. Receives score
○ Provides proven that is the weighted sum of
documentation of success or its grade on a list of criteria
failure of performance ○ Scoring models require:
○ Can be referenced for ■ Agreement on criteria
comparable projects and how ■ Agreement on
they performed through the weights for criteria
execution, as well as ■ A score assigned for
deliverables of the project each criteria
performed according ■ FORMULA: Score =
prediction E( Wight X Score)
○ Has anyone done this
before? ● Analytical hierarchy Process:
○ Basis if an existing project ○ Construct hierarchy of criteria
should move forward into and subcriteria
next project phase ○ Allocate Weights to criteria
○ Assign numerical values to
● Murder Boards: evaluation dimensions
○ Committees ask every ○ Scores determined by
conceivable negative summing the products of
questions about proposed numeric evaluations and
project weights
○ Gold’s to expose strengths - Scores are comparable unlike
and weaknesses of project simple scoring method
○ Kill project if it is deemed
worthless for organization
● Financial Models: Based on time - Determines how long it takes a
value of money principal project to reach break even point
1. Payback period - FORMULA = Investment / annual
2. Net present value cash savings
3. Internal rate of return - Cash flow should be discounted
4. Options models - Lower numbers are better (faster
- All of these models use discounted payback)
cash flows
● Discounted cash flow
● Cost benefit ratios: ○ Time is money
- Compares the costs to ○ Determine whether potential
produce product or service of revenue
project to financial benefits ○ Stream for the project is
gained worth more than what it costs
- Consider all costs when to produce the product of
analyzing cost and benefits project
● Costs to produce ○ Money is worth more in your
product hand today than you receive
● Costs to market the tomorrow
product ○ Determine project’s worth or
● ongoing support costs profitability in today’s value
- More benefits than costs ○ Used as a selection criteria
- Benefits minus costs technique when choosing
- Simple decision tool among competing projs.
- if costs are lower than expected ○ Since you have access of
return, project will receive a go money today, you could
recommendation invest and earn a profit, put it
in the bank and draw
● Payback period: interest, start a small
○ Amount of time it takes for business
project to pay back - Money you receive tomorrow needs
○ Compares total project costs to be related to what it’s worth today
to revenue generated - Select project with highest ROI
○ Calculates how long it will - FV = PV (1 + Interest Rate) ^ n
take revenues to pay back,
or equal initial investments ● Net Present Value:
○ Shortest payback period is ○ Evaluates money returned on
chosen project for each time period
○ Shorter it is, the better the project lasts
○ Faster the project can be
- Simplest but also weakest model completed, the sooner org.
- Does not consider time value of Will see a complete ROI
money ○ Steps
 1. Calculate project’s 1. Can the project be
cash flow for time unit postponed?
2. Calculate each time 2. Will future info help
unit total into the decide?
present value
3. Sum present value of ● Constrained optimization methods
each time unit ○ Set numerical methods used
4. Subtract investment to solve problems where one
for project is looking to find minimize
5. Examine the NPV total cost or ,maximize total
value. A NPV value revenues based on inputs
greater than one is whose constraints or limits
good and the project are satisfied
should be approved. 1. Linear programming
NPV less than one is 2. Nonlinear
bad and project programming
should be rejected 3. Integer programming
4. Dynamic
● Internal Rate of Return: programming
○ Calculate rate you’d have to 5. Multi-objective
apply to present value of programming
expected cash inflows
○ Higher IRR, more profitable ● Rely on Expert Judgement:
the project ○ Relies on experts within
○ IRR assumes cash inflows organization, consultants,
are reinvested at IRR Value stakeholders, professional
associations or industry
● ROI: groups or advice
○ Measures amount of savings ○ Contribute to project
or profit the project will selection method by offering
generate opinion research and
○ Expressed as simple experience
percentage calculation t
○ If your initial investment is —--------------------- WEEK 5 —------------------
$20,000 and profit generated
equals $30,000, the project ● SCOPE PLANNING TOOLS AND
has generated 50% ROI TEChniques
1. Expert judgment is
● Options Models: - using someone smarter than project
○ NPV and IRR methods don’t team, project manager, and key
account for failure to make stakeholders to guide planning
positive return on investment process
○ Allows for possibilities
○ Addresses
- Come from experts within ● Process of breaking down major
organization or third party experts, project deliverables into smaller unit
such as consultants of project deliverables that can be
assigned resources, measured,
2. Work Breakdown Structures executed, and controlled
● Organizes and defines project (manageable component)
scope; listing of what you supposed
to and not to do ● WBS is needed in cost estimating,
● Visual representation of high-level cost budgeting, resource planning,
deliverables broken into manageable risk mgt planning, and activity
components definition
● Chart activities to complete the work,
breakdown of deliverables ● How to construct WBS
● Work doesn’t fit into WBS does not 1. Specify end-item deliverables
fit within project 2. Subdivide the work, reducing
pesos and complexity with
2.1 Objectives of WBS: each additional subdivision
1. Serves as major component - Divide the
of the project scope baseline work/activities
2. One of the most important 3. Stop dividing when tasks are
project management tools manageable work packages
3. Serves as the foundation for
planning, estimating, and ● Basic of work packages:
proj. Control 1. Skills groups involved
4. Visualizes the entire project 2. Managerial responsibility
5. Builds team consensus and 3. Length of time
buy-in to project 4. Value of task
6. Serves as control
mechanism to keep project —--—--------------- WEEK 6 —-----------------
on track
7. Accurate cost and time ● Overview of Project Planning:
estimates ○ To communicate something
8. Serves as a deterrent to to someone at some time
scope change ○ When stakeholders ask
questions about the project,
2.2 Part of WBS: what does the project plan
● Work package: smallest say?
element ○ When project team members
● Components are mapped have questions about project
against a code of accounts, work, what project plan say?
which is a tool of number and
identify elements within WBS ● Structure approach to developing
the project plan
2.3 Decomposition 1. Project templates
 2. Paper and electronic forms 1. Project Manager: leadership,
3. Monte carlo simulations for facilitation, organization,
risk management direction, and expert
judgment
● Significance of Project Planning
○ Mere act of creating a plan is 2. Project members: knowledge
an excellent health check of project work and time
○ Producing one is quickest estimates; also influence the
way for you to diagnose schedule, provide advice and
problems and begin opinion on risk, as well as
addressing them expert judgment.

● Project Plan 3. Customer: objectives, quality

○ Developed with project team, requirements, expert
stakeholders, and judgment, and have influence
management over budget and schedule
○ Guide to how project should
flow and how project will be 4. Management: influence
managed budget resources proj.
○ Reflect values, priorities, and Management, methodology,
conditions influencing project quality requirements, and
○ Requires an interactive project plan approval
process of progressive
elaboration ● Project management information
software
● Purpose of Project Plan ○ Quickly create, manage, and
1. Provide structure streamline project
2. Provide documentation management processes
3. Communication ○ Can be used to help project
4. Baselines management team create the
schedule, estimates, and risk
● Using PM: assessments, and to gather
○ Organize all information so feedback from stakeholders
they could communicate ○ Includes configuration
what had to be done management system
○ Prioritize activities
○ Manage the ad-hoc/ ● Configuration Management
emergency matters that arise System
within project ○ Approach tracking all
○ Kept main focus on approved changes , versions,
executing the project on time of project plans, blueprints,
and within budget software numbering, and
sequencing
● Inputs of Each Member
 ○ Functional and physical ○ Everyone understands the
characteristics of project Impact of scope adjustments
deliverables and should not be confused
○ Functional and physical with trying to prevent change
characs. Of project ○ Spell out what is not going to
deliverables be addressed by project as
○ Contral, track, and manage well as specifying what is
any changes to proj. within scope
Deliverables. ○ Don’t rely on everyone
○ Allow project mgt team to making the same
audit project deliverables to assumptions about what is
confirm conformance to obviously implied
define criteria for acceptance
○ Change control system ● Scope Creep
○ Gradual process of work
● Change Control Systems expanding without
○ Defines all rules and implications being managed
procedures for how a change effectively
may enter the proj., and/ or
be declined, and how each
proposed changed is
documented

● Clarifying Project Objectives;

○ You and customer achieve a
shared understanding of Big
Picture
○ Distinguishes between a
project objective and project
requirement

NOTE:
- Objectives are described to design
the desired outcome for project as a
whole
- Requirements specify what needs to
be delivered

● Pinning down scope

○ Boundary to be drawn what
the project will and will not
deliver
○ Provide sound baseline to
manage change