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Com 103 Midterm Review

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COMM 103
Gregory Libitz

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Heldman Textbook Notes Chapter 3 pg54-57, 60-67, 72-78 Selecting Projects for Success  Inititating process: the prcess where project requests are generated and approved or denied. Once the project is approved the project charter is produced during this process, the project manaer is appointed, and the organization recognizes that the project should begin Project Generators-Needs and Demands  Some of the categories of needs and demands of projects are as follows: o Business Need or Strategic Opportunity: examples include improving efficiency, reducing costs, and utilizing resources efficiently o Market Demand: the needs of the marketplace and drive new project requests because of changes in the economy changes in the supply and demand cycles, and so on. o Customer Request: can generate any number of projects, and can be requested by either an internal or external customer o Legal Requirement: come about for as many reasons are there are laws in the books o Technological Advance: things are always changing and projects must occur to meet the ever changing environment o Social Need: Include things such as designing and presenting public awareness campaigns about the preventions of infectious disease or creating educational programs for underprivileged children. These can be driven by customers or concerned citizens o Ecological Impacts: such as “greening” initiatives, utilizing alternative energy sources, requirements regarding the use or disposal of certain materials, and the like, may frive project requests  When a project request is submitted, it is done so via a project concept document: outlines the objectives and high level goals of the project. Used in the selection process to determine whether the project should be approved or denied. Selecting and Prioritizing Projects  The criteria that organizations might use to choose their projects include: 1. Calculating Return o Payback period: the amount of time it takes to recoup the original incestment o Discounted Cash Flow: a financial calculation used to determine the project’s worth or profitability in today’s value. Used as a selection criteria technique when choosing amoung competing projects o Cost Benefit Analysis: compares the costs to produce the projects or serie of the project to the financial benefits fained from doing so o Internal Rate of Return (IRR): The discount rate when the present calue of the cash inflows, or the value of the investment in today’s dollar, ewuals the original investment. Used as a selection criteria technique when choosing amount competing projects o Return on Investment: measures the amount of savings or profit the prohect will generate 2. Selection Methods: Include financial calculations, scoring techniques based on a series of questions or models that score company gpals or project foals against criteria determined by the selection or review committee 3. Other Selection Criteria: o Strategic Plans: choosing projects that are in line with the company’s strategic plans o Risks and Impacts: the risk of the project to the company o Constraints: either limit or dictate the actions of the project team, organizations may have preestablished guidelines (constrains) for project work estimates, budgets, and resource commitments 4. Feasibility Study: a preliminaty study that examines the profitability of the project, te soundness or feasibility of the product of the project, the marketanility of the product or service, alternative solutions, and the business demands that generated the request 5. Meeting the Stakeholders: stakeholders have either something to lose or gain as a result of your project Creating the Project Charter  Project charter: the official, written acknowledgement and recognition that a project exists. It gives the project manager the authority to proceed with the project and commits resources to the project  Purposes for the charter o Acknowledges that the project should begin o Commits resources to the project o Ensures that everyone is on the same page o Appoints the Project Manager o Provides an overview of the project and its goals  Essential Elements of a Project Charter: o Statement of work (SOW): contains a description of the products services, or results produced by the project; a description of the work of the project; and concise specificatins of the product, services, or results required. Often used with contracts to describe the work of the project o Product Scope Description: Lists the characteristics of the product, including specifications, measurements, or other details that identify the product o Strategic Plan: Describes the organization’s long-term goals and plans o Project Overview: purpose of the project, reason for undertaking project o Project Objectives: includes the factors that help determine whether the project is a success o High Level Requirements: project requirements at this stage are high level. Think of them as a further description of the project deliverables o Business Justification o Resource and Cost Estimates: o Roles and Responsibilities o Sign off: signatures o Attatchments: any other documents that will help clarify the project Chapter 4 pg 84-96, 102-104 Goals and Objectives  Goals describe what your project is going to accomplish or produce (they are more specific than objectives)  They both define what your are trying to produce or accomplish  SMART Goals: o Specific: stated in clear and concise terms o Measureable: results are verifiable through some means o Attainable o Realistic o Time Bound Deliverables  A measureable outcome, measureable result, or specific item must be produced to consider the project or project phase completed. Deliverables are tangible and can be measured and easily proved  When all the deliverables are completed, the goal of the project is accomplished  Requirements: the specifications or characteristcs of the deliverables that must be met in order to satisfy the needs of the project, brokwn down to their most pbasic components  Business rule: constrains to the project that are determined by company policy or institutional regulation Identifying Assumptions and Constraints  Assumptions about people, resources, places, things or anything you presume is going to perform in a certain way, be available at a certain time, etc should all be documented  Assumptions: events or actions believed to be true. Project assumptions should always be documented. Some may include: o Key project member’s availability o Key project member’s performance o Key project member’s skills o Vendor delivery time o Vendor performance issues o Accuracy of the project schedule dates o Customer incolcment on the project o Customer approvals  After documenting assumptions, they must be validated and verified  Constraints: anything tha restricts or dictates the actions of the project team  The triple contrains are: SCOPE, BUDGET, TIME  Constraints, like assumptions, are docuemented in the project scope statement Creating the Communications Plan  Documents the types of information needs the stakeholders have when the information should be distributed, and how the information will be delivered  Documented early in the planning process  Documents how to collect, file and archive project communications as well as the distribution methods you’ll use to get the information to the stakeholders  Refer to pg 103 for image Chapter 7 Identifying Risks  Risk: an event that poses a potential threat or potential opportunity  Risk can cause rework, which almost always means that there will be schedule delays or additional costs or both  Risk management is a multi setup process: first you identify the risks, then you analyze the risks and determine the impact of the risk event should it occur, next you determine the probability of the risk occurring, finally you combine the impact analysis with the probability analysis to determine which of the identified risks needs a risk response plan Types of Project Risks  Most fall into three categories: known risks, known risks with uncertain outcomes, and unknown risks o Known risks: events that you know have the potential to occur, and have predictable outcomes Common Project Risks-What Are They Hiding?  Can come from internal or external sources  Internal risks: because of the nature of the project itself, organizational issues, employee or resource problems etc  External risks: political issues, legal concerns, environmental issues, social issues  Constraint Related Risks: project constraints limit the project in some way, and are usually known about at the start of the project o the triple constrains of schedule, scope, and cost generally have the biggest risk impact on the project o resources and quality constrains are also attention getters in the risk arena  Identifying Risks in the WBS and Track List: these planning tools begin to build on themselves and why its important to document all the project plans  Critical Success Factors: they are usually deliverables or milestones that absolutely must be completed to consider the project a success. The theme is consistent regarding these critical success factors-if you don’t take the time to adequately plan your project activates and communicate well with the project team and stakeholders, your entire project is likely in jeopardy  Business Risks: depending on the type of project you’re working on, business risks may not have as much probability of occurring as risk associated with the triple constrains or critical success factors, but you should be aware of them and identify them because their impacts pack a big punch  External Project Risks: outside the control of the project team and the organization itself, for ex: political, social, legal, environmental issues  Other risks: one risk people should be aware of is the complexity of the project itself; if the person organizing it hasn’t taken on a project of that magnitude before, that should be noted as a risk Identification Techniques  Identification of risks should be done by the project manager with the project team, the stakeholders, the project sponsor, and others they think are helpful to the process  After compiling an initial list with risks along with their characteristics and impacts, another meeting should be held where more items are added to the risk list  Historical Information: risks can be seen in past projects, past documentation can come in handy in establishing current risks  Brainstorming: is a method of discovering risk events, alternatives, requirements, or other project information with a group of people who have knowledge of the project, product, or processes used during the project. This process is intended to produce free-form ideas, and no restrictions are placed on the participants  Delphi Technique: a method of discovering risk events, alternatives, requirements, or other project information using a questionnaire format. This process uses a facilitator to solicit ideas, and participants usually have expertise in some area of the project  Nominal Group Technique: a method of discovering risk events, alternatives, requirements, or other project information. This process uses a facilitator to solicit ideas in writing from the participants  Interview: is a question and answer session held with key stakeholders, team members, functional managers, subject matter experts, and others who have an interest in the project or who have previous experience on projects similar to yours. These folks can tell you what risks are likely to occur on the project, based on their experiences with similar projects.  Checklist of Common Project Risks: this groups the 3 main risks (time, scope and budget) and adds other common ones like quality and resources, to compile a list of risks that are common (pg 154) Risk Analysis Techniques  Probability: the likelihood that an event will occur (these are scored pg 156)  Assigning risk impacts: impact values are assigned, as in probability (pg 157)  Probability impact matrix: multiply the probability score by the impact value to come up with an overall risk score. The higher the overall risk score, the higher the risk to the project  Risk tolerance: the amount of risk a person or organization is willing to tolerate in exchange for the perceived or actual benefits of partaking in the activity  Planning for risk: project risk is highest early in the project and lessens as the project progresses  Responding to risks: is a matter of deciding what steps to take should the risk event occur or look like its about to occur. Also includes assigning individuals the responsibility of carrying out the risk response plan if the risk event occurs o Accepting: the risk means you’re willing to accept the consequences of the risk should it occur o Avoiding: taking steps to avoid the impact of the risk event or eliminating the cause of the risk altogether o Transferring: it transfers the responsibility for the management of the risk even to a third party o Mitigating: attempts to reduce the impact of the risk event by reducing the probability of the risk occurrence or reducing the impact of the risk event to an acceptable level o Exploit: looking for opportunities for positive impacts o Share: similar to transferring because you’ll assign the risk to a third party owner who is best able to bring about the opportunity the risk event presents o Enhance: closely watches the probability or impact of the risk event to assure that the organization realizes the benefits  Contingency Planning: a process of planning for known risks to help ensure project success if a risk event occurs  Residual and Secondary Risks: Residual are the leftover impacts or minor risks that remain after the primary risk event has occurred and responses have been implemented. Secondary is risk that occurs as the result of implementing a risk response plan  Risk Management Plan: purpose is to identify risk, document impacts, and develop plans to reduce their impacts or take advantage of the opportunities presented: 1. Identify the risks 2. Analyze risks to determine the probability of the event occurring 3. Analyze risks to determine the impact on the project if a risk event occurs 4. Calculate an overall risk score and determine which risk events need detailed response plans 5. Create detailed responses plan and assign resources to carry out the plan in the event a risk occurs 6. Document everything in the risk management plan section of the project notebook or on the project’s intranet site  Risk triggers: signs that a risk event is about to occur Textbook Chapter 5 Breaking Down the Project Activities. Read the entire chapter so that you understand h
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