Download - Project Management Class ( based on PMBOK) - Day 6

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Project Management

Joe DiFalcoPMP, PMI-ACP, CSPO, Systems Engineer

Owner CVShout™

Profile: CVShout.com/joedifalcoContact: [email protected]

Review of the Project Management Body of Knowledge (PMBOK) 5th edition

Day 5 review Ethics Earned value management

Knowledge Areas Procurement Management

Risk topics Cost topics Scope topics Time topics Tips and tricks for PMP test

Day 6 Agenda

Ethics ReviewYou are a project manager of a company and your project is currently in execution phase. The customer has requested you for additional work. This work will affect the budget, but not the schedule of the project. What should you do next?A. Add the additional requirements to the project plan.B. Ignore the request.C. Explain the change procedure and ask to submit a request

for change.D. Discuss with the project team about the change.

C is the correct answer.Explain the change procedure and ask to submit a request for change is the best choice.

Project Budget ComponentsKnown un-Knowns

un-Known un-Knowns

This is the level of granularity to track measurement

Project Budget Components

Reserves

Contingency vs Management reserves

Planned Value (PV)

From PMBOK 5th Edition

The approved budget for the work scheduled to be completed by a specified date.

• Scheduled work• Work for an activity (work breakdown component)• Defines the physical work that SHOULD have been

accomplished• Total of all PV can be referred to as:

• Total PV is also: budget at completion (BAC)

Earned Value (EV)


The approved budget for the work actually completed by the specified date

• Measure of work performed• Based on PV (authorized budget)• Percent complete of a project• EV cannot be greater than PV• Monitored:

• Incrementally – for current status• Cumulatively – performance trends

Actual Cost (AC)


• Realized cost incurred• Cost of work performed during a time period• Specific to the work that the EV measured• Corresponds to what was planned – PV• Has no upper limit – it is what it is

Earned Value


Formulas to memorizeSchedule Variance (SV)


Formulas to memorizeCost Variance (CV)


Earned Value Measurement


Exercise



Status after 1 hour



Use EVM to forecast

Earned Value MeasurementAccountant’s Pal Online

Budget ad Completion BAC 1200

Planned Value PV 240

Earned Value EV 230

Actual Cost AC 250

Schedule Variance(EV – PV)

SV 230 – 240 = -10

Cost Variance(EV – AC)

CV 230 – 250 = -20

Schedule Performance Index (EV/PV)

SPI 230/240 = .95

Cost Performance Index(EV/AC)

CPI 230/250 = .92

Estimate at CompletionBAC/CPIAC + BAC – EVAC + [(BAC-EV)/(CPI*SPI]

EAC 1200/.92 = 1304250 + 1200 – 230 = 1220250+[(1200-230)/(.92*.95) = 1360

Estimate to Complete(EAC – AC) or re-Estimate

ETC 1304 – 250 = 1054

To Complete Performance Index(BAC – EV) / (BAC – AC)

TCPI (1200-230)/(1200-250) = 1.02

Variance at Completion(BAC – EAC)

VAC 1200 – 1304 = -104


Note: the numbers in the chart refer to the chapter in the PMBOK

Procurement Management


Procurement Management


• Agreements• Binding contracts• Terms and conditions• Purchase order• Understanding• Usually subjected to extensive review/approval• Many times involves Legal department

Plan Procurement Management


Inputs

Fixed-price contracts• Firm Fixed Price (FFP)

• Most common• Variance – seller

• Fixed Price Incentive Fee (FPIF)• Price ceiling – incentives• Variance – seller• Incentive – seller

• Fixed Price with Economic Price Adjustment (FP-EPA)• Fixed price• Provision for change• Variance – seller and buyer

Cost reimbursable contracts• Cost Plus Fixed Fee (CPFF)

• Seller reimbursed for costs• Fee is fixed except for scope changes

• Cost Plus Incentive Fee (CPIF)• Seller reimbursed for costs• Buyer and seller share cost risk (+ /

-)• Cost Plus Award Fee (CPAF)

• Seller reimbursed for costs• Fee is subject to buyer’s evaluation

Time and Material (T&M)



Tools & Techniques



Outputs

Conduct Procurements


Inputs



Tools & Techniques



Outputs

Control Procurements


InputsTools & Techniques

Outputs

Risk


How an organization views risk

Risk


Risk Breakdown Structure (RBS)

Risk


Risk Impact Scales

RiskProbability Impact Matrix

Risk


Techniques

Risk SWOT Analysis

Risk

Risk Register

Risk


Risk


Qualitative Risk Analysis

Risk

From PMBOK 5th Edition*Sometimes data is not available

Risk


Risk


Strategies for Negative Risks

Risk


Strategies for Positive Risks

Tips and Tricks


• PMP exam is NOT a test of PMBOK – you cannot rely on real world experience – rely on training aligned with PMBOK

• Make up of exam (probably changed for 5th Edition)• Initiating 11%• Planning 23%• Executing 27%• Monitoring/control 21%• Closing 9%• Ethics 9%

• 200 multiple choice – 175 count (need 106 to pass or 61%)• Know how to apply the information• About 150 “what would you do?” questions• 8-10 formula related questions• 10-12 earned value questions• Questions with 2 or more right answers – which is most

right• Questions with extraneous information• Questions with made up terms• Questions with more than one item in each answer - secret

Tips and Tricks


Study tips• Don’t

• Read every book you can find• Study too long• Not listen to advice from those who have passed

• The Magic Three – visit a topic 3 times to learn it• Take practice exams (take at lease 1 full, 4 hour test)• Plan your study program

• Test yourself with 20 questions in each group• Read one of the exam prep books• Use flash cards or other tools• Form a study group• Take a review course• Take practice exams until you can get 85%

Tips and Tricks


Recurring themes• Project managers can save the universe• The PM puts the best interests of the project first• Perspective of a large project (200 people from many

countries, takes at least a year, never been done before in the organization with a budget of $100M)

• PM has the power and perform all PMBOK activities• The PM is assigned during initiation• The PM understands the process of project

management• The PM always knows why their project was selected • The PM spends time planning, managing, assessing

and controlling scope, time, cost, quality, risk, resources and customer satisfaction

• Your organization has a PMO• Your organizations has OPA and EPA• A Work Breakdown Structure (WBS) is used on every

project)

Tips and Tricks


Invest:• Prep class• Prep book• Join PMI

Thank You


Any Questions?

Download - Project Management Class ( based on PMBOK) - Day 6

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