Professional Documents
Culture Documents
6 5 4 3 2 1
Procurement Planning
1 2 3 4 5 6 7
Scope Statement Product Description Project Resources Market Conditions Outputs of other planning processes Constraints Assumptions
Solicitations Planning
1 Procurement Management Plan 2 Statement of Work 3 Other planning outputs 1 Procurement Documents 2 Qualified Vendor Lists 1 Bids / Proposals received 2 Evaluation Criteria 3 Organizational policies
Solicitation
1 Bidder Conference 2 Advertising 1 2 3 4 Contract Negotiation Weighting system Screening system Independent Estimates
Source Selection
1 Contract
Contract Administration
1 2 3 4
Contract Closeout
Procurement Audits
Project Management Context Project Life Cycle: Collectively, project phases are known as the Project Life Cycle Organizational Structure Influences on Projects Matrix Balanced Low to Moderate
Project Manager's Authority Percentage of Performing Organization's Staff working full time on Projects
Weak Limited
Project Manager's Role Common Titles for Project Manager's Role Project Management Admin Staff
0 - 25% Part-time Coordinator or Part-time Expeditor Project Coordinator / Project Coordinator / Project Leader Project Leader Part-time Part-time
Virtually None
15 - 60%
Project Expeditor has no authority Project Coordinator reports to a higher level manager and has more authority than a Project Expeditor Project Management Processes: describe how to organize and complete the work of the project.
Product-oriented processes: specify and create the project's product & are typically defined by the project life cy
15 - 60%
50 - 95%
85 - 100%
Product Scope: The features and functions that characterize a product or service Project Scope: The work that must be done to deliver a product with the specified features and functions Completion of the Project Scope is measured against the Project Plan Completion of the Product Scope is measured against the Product Requirements
PERT Expected Value: (O + 4M + P) / 6 Standard Deviation: (P - O) / 6 Variance: [ (P - O) / 6 ] ** 2 1 sigma: 2 sigma: 3 sigma: 6 sigma:
Note: This true for a Normal distribution Note: This true for a Normal distribution Note: This true for a Normal distribution
68.26% of the population is within 1 sigma of the mean 95.44% of the population is within 2 sigma of the mean 99.73% of the population is within 3 sigma of the mean 99.99% of the population is within 4 sigma of the mean
CPM - 1 estimate - focus on Cost & leaves the schedule flexible PERT - 3 estimates AOA used for CPM &/OR PERT GERT - Conditional diagramming mehod (also System Dynamics)
Free Float: The duration by which a task can be delayed w/out delaying its successor Total Float: The duration by which a task can be delayed without delaying the Project Completion Date Project Float: The duration by which a task can be delayed without dealying the Project Date committed to the cuto Crashing usually increases cost Fast Tracking increases risk
Reverse Resource Allocation Scheduling: Scheduling in a critical resource starting from the project ending date Critical Chain: A technique that modifies the project schedule to account for limited resources
CV = EV - AC SV = EV - PV CPI = EV / AC SPI = EV / PV EAC = BAC / CPI AC + ETC AC + (BAC - EV) AC + (BAC - EV) / CPI
If no variances have occurred or if you will continue at the same rate of spen Actual cost + a new estimate for the remaining work. Used when the origina Actual cost to date + remaining budget. Used when current variances are th Actual cost to date + remaining budget adhusted by performance factor (CPI
PV = FV / (1 + r)**n IRR - The rate at which the NPV = 0 Payback Period: The number of periods it takes to recover your investment
ou will continue at the same rate of spending remaining work. Used when the original estimates were flawed. get. Used when current variances are thought to be atypical of the future get adhusted by performance factor (CPI). Used when current variances are thought to be typical of the future
Quality is the totality of characteristics of an entity that bear on its abilty to satisfy stated or implied needs Conformance - the project must produce what it said it would produce Fitness for use - the product or service produced must satisfy real needs Quality is planned in - not inspected in Kaizen - incremental improvement
Statistically Independent events: The probablity of occurrence of one event does not affect the probability of occ
1. Forming: The beginning stage where the team is being formed, members are being introduced to each other an 2. Storming: Team members start getting confrontational and vye for the position of maximum power 3. Norming: Team members start confronting project problems instead of people problems 4. Performing: The team is most productive at this stage
Motivational Theories 1. Abraham Maslow's Hierarchy of Needs - Self Actualization: Highest level - Performing at peak potential, Self-fulfillment, Growth, Learning - Self Esteem: Accomplishment, Respect for self, capability, Recognition - Social Needs: Sense of belonging, love, acceptance, friendship - Safety & Security Needs: Physical welfare and security of their belongings - Physical Needs: Food, Clothing, Shelter
2. Fredrick Herzberg's Hygiene Theory Hygiene factors (pay, benefits, conditions of work environment, relationships w/ peers and managers) prevent dissa Motivators (the ability to advance, the opportunity to learn new things, challenges involved in the work) lead to satisf
3. Expectancy Theory People expect to be rewarded for the work they perform. As long as the reward meets their expectation, they will co 4. Achievement Theory People are motivated by the need for: - achievement - power - affiliation
5. McGregor's Theory X & Theory Y Theory X managers believe that most people do not like work, will steer clear of it, have little to no ambition, need c Theory Y managers believe people are interested in performing to the best of their abilities given the right motivation
Types of Power 1. Reward Power 2. Punishment or Coercive or Penalty Power: Team member is threatened with consequences if expectations are n 3. Expert Power: As a result of subject knowledge 4. Legitimate or Formal Power: As a result of position 5. Referent Power: Team members who have a high respect for their PM will go along with decisions made by the
Causes of Conflict in order of frequency of occurrence 1. Schedule 2. Project Priorities 3. Resources 4. Technical opinions 5. Administrative procedures 6. Cost
7. Consensus
7. Personality
Conflict Resolution Techniques 1. Confronting / Problem Solving: Solving the problem 2. Compromising: Finding a solution that placates both parties 3. Withdrawal / Avoidance: Postponing a decision on a problem 4. Smoothing: Emphasizing agreement rather than differences of opinion 5. Forcing: Pushing one viewpoint at the expense of another
are being introduced to each other and are explained their roles and responsibilities tion of maximum power ple problems
/ peers and managers) prevent dissatisfaction. es involved in the work) lead to satisfaction.
f it, have little to no ambition, need constant supervision and won't perform until threatened. heir abilities given the right motivation and expectations.
requency of occurrence
CR - Cost Reimbursable Contracts CPFF - Cost Plus Fixed Fee CPPC - Cost Plus Percentage of Costs CPIF - Cost Plus Incentive Fee CPAF - Cost Plus Award Fee T&M - Time and Material Contracts
FP - Fixed Price Contracts Scope of work is specified in detail FPIF - Fixed Price Incentive Fee FPEPA - Fixed Price Economic Price Adjustment FPIF Target Cost $220,000 Target Fee $15,000 Target Price $235,000 Cost savings will be shared 80/20 - Buyer/Seller Actual Cost $200,000 Cost Savings $20,000 Buyer's share of Cost Savings $4,000 Total Fee $19,000 Total Price $219,000
Scope of Work Performance or Functional Design (e.g.; Civil engg design) Any
Presentations Presentations are used most often for a CPFF contract is used. They can also be used in other situations when the Negotiation Tactics Attacks Personal Insults Good Guy / Bad Guy Deadline Lying Limited Authority Missing Man Fair & Reasonable Delay Extreme Demands Withdrawal Fait Accompli
Might not have Evaluation Criteria - since lowest bidder is awarded contract
Initiating
Project Initiation
Time Management
Cost Management
Communications Planning Risk Management Planning Risk Identification Qualitative Risk Analysis Quantitative Risk Analysis Risk Response Planning
Procurement Management
Controlling Integrated Change Control Scope Verification Scope Change Control Schedule Control
Closing
Cost Control
Quality Control
Information Distribution
Administrative Closure
Contract Closeout