4. Planning and managing performance

Question 1

• What is requirements management?

Answer 1

○ Throughout project life cycle - from initial phase of project - to facilitate development of agreed scope management

Question 2

• What process do you need to go through for requirements management?

Answer 2

○ Gather - after stakeholder analysis - gather thoughts on requirements from stakeholders. Important to record what people want to get out of the project
○ Analysis - function analysis or function cost analysis will provide detail on value of requirements and how they will benefit the organisation. This can help identify where there are conflicts in requirement expectations. Consensus should be reached through discussions if gaps found
○ Justifying requirements - functional requirements which link to benefits should be prioritised (eg. Using MOSCOW). Then important to communicate outcomes to stakeholders to avoid misunderstandings
○ Baseline needs - Functional requirements form baseline of outcomes - then PM needs to determine deliverables linked to these, manage change and mitigate scope creep

Question 3

• What is functional analysis?

Answer 3

○ Should only accept benefits at a cost that makes them worthwhile ie. Creates value for the organisation
○ Value must be created at beginning of project through dev of business case and options chosen - then maintained throughout project
○ Functional analysis helps identify cost to value of delivering project. Different ways of doing this but broadly involves looking at time and resource taken to change and contribution towards overall objective
○ Tests assumptions with key stakeholders
○ Output is agreed set of options for functional requirements - used to examine value of different solutions
○ Value highlighted is amount of benefit that will be gained from requirement to justify it’s priority

Question 4

• What are some prioritisation techniques?

Answer 4

○ MoSCoW
§ Must have
§ Should have
§ Could have
§ Wont have
○ May get rid of shoulds and coulds if project running over cost
○ Way to manage disputes if must haves agreed and should haves etc established with stakeholders

Question 5

• What is configuration management and what are the steps?

Answer 5

○ Way to plan, protect and control changes to requirements
○ Stages:
§ Planning - defines processes and procedures
§ Identification - divides project into different items that can be moved around - each with different name
§ Control - changes to these items controlled and relationships understood to understand impacts of interdependencies
§ Status accounting - ensures tracability throughout development. Recordkeeping
§ Verification audit - ensures deliverable confirms to requirements and configuration. Should be done throughout project lifecycle

Question 6

• What is solutions development?

Answer 6

○ Systematic solution to identify analyse and implement responses to challenges and opportunities
○ Requires innovation and problem solving as new things emerge - ensures adaptability
○ Evaluates and prioritises different options to solve a problem - explores these until optimal solution arrived at

Question 7

• What are some criteria to consider when identifiying solutions?

Answer 7

○ Technical - process material software
○ Social - people interactions needs
○ Procurement - lease buy make service
○ Management - lifecycle governance
○ Transition - phased or all at once

Question 8

• How can you prioritise requirements within scope?

Answer 8

○ Can use MOSCOW again
○ Ensures essentials are met
○ Can also consider
§ Investment appraisel
§ Stakeholder commitment to solution
§ Market capability
○ Or can use these other tools
§ ABC model - level of importance
§ 5 whys method -why is this requirement necessary
§ Numerical assignment

Question 9

• How are different approaches used for different life cycles?

Answer 9

○ Linear life cycle - options are analysed early on - optimum solution agreed with scope - then confirmed and managed through change control if needed
○ Iterative - can look at solutions for longer as the project develops - explore options and deliver in increments. Can have must have requirements in form of a minimum viable product. Following feedback options can be developed

Question 10

• What is quality planning?

Answer 10

○ Process of establishing quality requirements
○ Uses defined scope and lists criteria to validate that outputs fit for purpose
○ Forms quality plan which approved by sponsor and wider board
○ Quality plan sets out “what good looks like” - compliance with regulations, work in scope in line with business case, how it will be assessed
○ Giodes quality control and assurance activities to confirm outputs meet requirements - require resource and influence tasks on project
○ Need to get stakeholder agreement on plan to support a handover

Question 11

• What does a quality plan include?

Answer 11

○ Methods of verifiying outputs meet requirements
○ Pass and fail criteria
○ Frequency of tests or checks
○ Resources required to complete quality assurance

Question 12

• What is quality management?

Answer 12

○ Verifiying compliance of output to requirements - quality assurance providing confidence that right processes and methods used to deliver it
○ In iterative life cycle - acceptance criteria defined at different phases - verified for the final product

Question 13

What is the difference between quality control and quality assurance?

Answer 13

○ Quality control - outputs
§ Inspection measurement and testing to confirm project outputs meets acceptance criteria as previously set
§ Focussed on finding problems to stop them being an issue for customers
§ Member of project team
§ Plans test plans agreed during planning and managed through change control
§ Test plans must think about size of tests, test protocols, independent performance or test witnessing
§ Outputs checked against degree of conformance to requirements and crieria. If outputs don’t conform, decision on what to do needs to be made
§ Answer is either pass or fail - no in between
○ Quality assurance - processes
§ Build in quality using standard processes to ensure delivery is being done in the right way
§ Done by people independent to the project
§ Aims to maintain stakeholder confidence
§ Should be applied as soon as project management starts
§ In event of deviation - decision needed on what action is needed
§ Even is quality assurance not fully followed outputs can still be acceptable

Question 14

• What is integrated planning?

Answer 14

○ Strategic approach combining planning processes to enhance efficiency coordination and communication
○ Brings together planning benefits, scope, quality, scheduling, budget risk and ommmunication into a single project management plan

Question 15

• What is the project management plan?

Answer 15

○ Captures key components of plan to deliver outcomes
○ Coalating all existing documents etc into single place
○ Depends on size and complexity of pojrct
○ Should be integrated into everything and should set out the 5 Ws and how of a project

Question 16

• What should a project management plan include?

Answer 16

○ Benefits - why? - BC - value of project benefits
○ Scope - what? - decription f scope involved - product and work breakdown
○ Time - when? Time needed, timeline, deliverables for each bit
○ Resources - who? Roles and responsibilities and reporting lines - organisational breakdown structure
○ Cost - how mcuh - how the budget has been assigned - cost breakdown structure
○ Delivery logistics - where? - delivery requirements, security, environmental constraints
○ Management - how? How deployment will be managed, risks and issues, comms etc

Question 17

• What is an integrated PM Plan important?

Answer 17

○ Ensures:
§ Comms is presented to stakeholders
§ Reference source for all stakeholders
§ Contract between PM and project sponsor providing clarity on what’s expected
§ Guidance for project team
§ Baseline measurement to understand progress

Question 18

• What is schedule management?

Answer 18

○ Finds best way to allocate resource (external and internal) and time
○ It:
§ It used to develop schedules of work
§ Time based and based on actual activities
§ Develop and maintain schedules
§ Shows when work is planned to be done
§ Considers dependencies

Question 19

• What is scope and how do you define it?

Answer 19

○ Scope defined to outputs, outcomes and benefits - high level scope should be recorded in business case

Question 20

• What are outputs, outcomes and benefits?

Answer 20

○ Tangible or intangible deliverables created which produce outcomes of changes circumstances, behaviours or practices to create benefits in line with acceptance criteria
Outputs -> outcomes -> benefits

Question 21

• What are breakdown structures and what are some examples?

Answer 21

○ Different ways to illustrate what needs to be done to ensure project outputs are met
○ Product breakdown structure
○ Work breakdown structure
○ Cost breakdown structure

Question 22

What is a product breakdown structure?

Answer 22

○ PBS identifies scope of project to be delivered - final output placed at top level and broken down by outputs - then next level etc until can’t be broken down any further ie. Individual products

Question 23

• What is work breakdown structure?

Answer 23

○ Defines basline scope of work - activities needs to be completed to deliver requirements. Lower level of detail is by work package. WBS focusses on work and skills needed to do the work - work types can be grouped

Question 24

• What is cost breakdown structure?

Answer 24

○ CBS financial view by breaking down project into cost elements - shows costs of people, equipment, materials etc - or costs of different parts of the organisation or external parties. Used to track achievement against spend

Question 25

What are links and dependencies?

Answer 25

○ Links - relationships between activities - outlining order which they should occur ○ Dependencies - define reliance on one task on another for completion ○ Schedule management needs to consider links and dependencies

Question 26

* What are different types of dependencies and links?

Answer 26

○ Relationships between events - activities and their implications ○ Stakeholders ○ Scope definition - Preventing delay through minsunderstanding of what is in and out of scope ○ Business change - activities resources for BAU and not project ○ Dependencies - between BAU and project Schedules - activities and conflicts which need resolution

Question 27

* What is re-estimating and schedule optimisation and why is it important ?

Answer 27

○ Estimate of time needed to complete tasks ○ Should be an ongiong activitiy as more information known on how long things take ○ Re-estimating increases confidence of the schedule

Question 28

How can you make sure the schedule is accurate?

Answer 28

Project team - understand what's needed to achieve scope, minimise effect of errors - increases accuracy of estimates, increases confidence of delivery. Lessons learnt and reducing contingency - Validate assumption as scope clarified, variance and trends form previous work to adjust contingency - means less money required as realistic forecasts? Realisation of accepted risk - Understand impact of risk on work - better understanding of issues and likely contingency

Question 29

* It's very important to understand the concepts that feed into the activity - what scheduling techniques are key?

Answer 29

○ WBS ○ Estimateing dependencies and resource allocation ○ Alignment of success criteria Baselining

Question 30

* What is the critical path method?

Answer 30

○ Method which highlights quickest route shortest time to complete all activities in logical order - ie which can start at the same time ○ Identifies which activities would affect end date if delayed - need to be closely managed to avoid delays ○ Important to understand key delays Visualisation looks like a gannt chart with arrows between dependencies

Question 31

* What is the critical chain method?

Answer 31

○ Puts emphasis on resources - keeps them at constant utilisation ○ Considers skills, abilities, tools etc 0 duration and effects of activities ○ Added up for al activities to create buffer at end of chain - rather than individual activites - Accounts for effect of some tasks finishing earlier or later than planned

Question 32

* What is resource management?

Answer 32

○ Allocation, utilisation and monitoring of resources (labour and non-labour) throughout project to ensure optimal use of resource within budget and schedule

Question 33

* What are some types of resources?

Answer 33

○ Human ○ Materials ○ Plant or equipment ○ Facilities

Question 34

* How can you determine what resources are required? What are some considerations?

Answer 34

○ Chosen life cycle ○ Activities and tasks ○ Types of resources needed ○ Skill sets needed and capabilities ○ Identified critical tasks which need resource ○ When and how long resources needed ○ Needs of project vs BAU Need for external resources

Question 35

* Why are resources important in a project?

Answer 35

○ Can often constrain pace of project- including space needed to operate and store items ○ PMs can work with resource managers at times required - internal or external

Question 36

* What is the organisational breakdown structure and responsibility assignment matrix?

Answer 36

○ OBS - details the organsaiation and resources available= tasks can be allocated to these resources to clarify roles. Makes escalation routes clear ○ RAM - way to ensure people know what they do and how they fit into the project organisation. Resource managers should consult the RAM

Question 37

* What is RACI?

Answer 37

ype of RAM ○ Way of defining level of involvement of team members is: § Responsible - does the work and owns problems - one person § Accountable - approves works and held accountable for deliveries - one person § Consulted - included in deicison making and support § Informed - kept up to date

Question 38

* How can you allocate resources?

Answer 38

○ Consider allocation of resource types, how many resources of different types will be needed, availability to support schedule and cost ○ If using linear life cycle - assumption in planning is that enough resource will be available throughout ○ For iterative - requirements prioritised and delivereded using pre-allocated resources which are available where required

Question 39

* What is resource levelling vs resource smoothing

Answer 39

○ Both attempts to fit scope of work within resource limit while maintaining schedule and quality § Levelling - With resource available, when will the work be finished? Can we redfine scope and or specifications - increase task duration, increase resources etc to achieve objectives § Smoothing - what resource will be needed to deliver project within timescale. ? Involves trying to reduce peaks and maintaining steady resource use - reducing task timeframes. Running activitites in parralel and not seperate. Optimising resources through the flow of work

Question 40

What is budgeting and why is it important?

Answer 40

* Estimation and allocation of financial resources required for activities - cost control focuses on monitoring and manageing expenditure * Enable PMs to align finances with goals - preventing overruns and optimise use of funds * Estimates are often used including to support budgeting - approximation of time and cost to complete work scope to acceptance ctieria

Question 41

* What do estimates involve for budgeting?

Answer 41

* Enable budget setting and considerations of affordability * Support value for money judgements to be made * Essential to create resource schedule * Should give consideration to

Question 42

What should you consider when budgeting?

Answer 42

* Different types of cost involved and affect on project * Information from external soruces - eg supplier costs * Assumptions made for projects and therefore costs

Question 43

* How can you use the cost breakdown structure for budgeting?

Answer 43

* Based on the work breakdown structure - each work package divided by how much they cost * Costs from people, equipment, materials and other resources * Should reflect financial coding

Question 44

* What are the relationships between different costs?

Answer 44

* Need to know more than the projects overall costs - need to know where the costs fall in the schedule and by what element * Depends on lifecycle ○ Linear - funds released after decision gates when forecasts approved etc ○ Iterative - release funds more frequent due to work being completed in short intervals/ bursts

Question 45

* What are the type of costs cost planning should involve?

Answer 45

* Fixed - monthly regular costs * Variable - materials as and when required for example * Recurring - software licenses Non-recurring - one-off costs for setup

Question 46

* Why do the different types of cost affect management?

Answer 46

* Affects how to track and manage them - indirect costs could be associated with the business as a whole and may not be included

Question 47

* What are cost controlling techniques?

Answer 47

* Identifiying and managing variance in the budget and forecasts * Can use techniques to ○ Minimise costs where possible ○ Identify areas for overspend ○ Correct levels of overspend ○ Inform future projects through lessons learnt etc * When changes made to baseline - need to update costs information to refine budgets. Best practice to control cost using Earned Value Management to

Question 48

* What is Earned Value Management

Answer 48

* Reports on project spend against spend graph and value of work acheived - underspent against planned spend - important to know value of what's been done to refine budget * Involves Schedule Performance Indicator and a Cost Performance Indicator

Question 49

* How can you monitor and evaluate financial performance

Answer 49

* Takes place at baseline agreed and sees how performance is against it - meaningful reports to be shared to improve perofrmnace * Reporting normally involves ○ Actual vs forecasted costs ○ Actual spend vs forecasted in spend curve ○ Spend vs work achieved ○ Cash flow and drawdown ○ Resource cost ○ Project budget and projected overrun ○ Contingency drawdown * Monthyl reporting and a traffic light scheme normally involved - managed through governance

Question 50

* What does closing down finance involve?

Answer 50

* Project sponsor commences close down * Project closure report submitted to final decision gate for endorsement by board * Also involves ○ Reassigning resources ○ Formally closing contracts - making sure everything done that's committed - agree final accounts ○ Updating account systems - closing down project accounts so no further money can be charged ○ Returning surplus funds back to the organisation

Question 51

What is risk management?

Answer 51

Identifiying unceratinities and their impact - then developing strategy to mitigate, or capatilise on them

Question 52

* What is issue management?

Answer 52

○ Addresses problems as they arise during the project - not before ○ Needed together with risk management so project can stay on track

Question 53

* What are the key aspects of risk management?

Answer 53

○ Means individual risks and risk events + overall risk can be understood and managed proactively ○ Influcned by risk appetite of investing organisation - provides tolerence level ○ Iterative process to dynamically respond to risk - due to dynamic nature of a project

Question 54

* What are the benefits of risk management?

Answer 54

○ More realistic plans and schedules ○ Better likelihood of success and budgets being kept to ○ Greater accuracy in allocating contingencies ○ Learning and improvement for future projects ○ Greater stakeholder confidence

Question 55

* What are the key aspects of issue management?

Answer 55

○ First understand issue and prioritise owners to resolve ○ Needs support from sponsor to escalate to board ○ May mean project plan has to be re-baselined and planned

Question 56

* What are the benefits of issue management?

Answer 56

○ Gives structure to escalation routes - deal with things quickly ○ Highlights viability to seniors who may be able to bring in more resources ○ Consistent way to document isues so can be recorded again ○ Enables efficiently resolution so projects can progress ○ Informs continuous development etc

Question 57

* What is contingency planning?

Answer 57

○ Resource set aside to deal with unknown unknowns ○ Not need for more money or time - instead identified to cover gap between plan and known risks ○ Some projects access management reserves - particuarly for low risk high impact risks, or unknown risks ○ Normally expressed in time and money § Iterative life cycle considers contingency in terms of scope and quality instead § Contingency covers gap in capacity

Question 58

* What is the risk management process- what are the steps?

Answer 58

○ Sets out roles and responsibilities, how risks are assessed and impacts evaluated, agreed tolerances etc. ○ Steps § Identification § Analysis § Response § Monitoring and escalation § Closure

Question 59

* What does identification involve?

Answer 59

* What does identification involve? ○ Finds relevant risks - thinks about risk appetite ○ Ongoing process ○ SWOT can be used - brainstorming etc With iterative life cycle - risk identification is risk based which influences the design of each iteration

Question 60

* What does analysis involve?

Answer 60

○ Assesses impacts ○ PM undertakes with help of subject matter experts ○ Qualitative - impact on objectives, likelihood of impacts - likely size of the impact ○ Quantitative analysis - looks at combined effect of all risks on objectives - focuses on specific risk based decisions using techniques such as Monte Carlo simulations ○ During iterative life cycles - analyse throuhgout each iteration

Question 61

* What does response involve?

Answer 61

○ Considers appropriate responses ○ Proactive or reactive responses ○ Determines whether the risk is an issue or opportunity ○ Could involve pro-active mitigations to bring risk down to tolerance levels ○ Focus should be on risk-efficient interventions to increase likelihood of success

Question 62

* What does monitoring and evaluation involve?

Answer 62

○ Must be monitored and if thresholds reached, escalation is required

Question 63

* What does closure involve?

Answer 63

○ Risk register closed when there are no more relevant risks - risks individually close down ○ Lessons learnt recorded for future projects Remaining risks should be communicated to relevant stakeholders as part of transition to business as usual

Question 64

* What does the issue management process involve?

Answer 64

○ Logging and analysing § Risk register should be maintained § Priorisiting certain risks based on impact § Registers are a source of knowledge for future projects ○ Escalating § Escalated to project sponsor who may escalate to project board § They help PM define best approach to managing risk ○ Assigning actions § Actions assigned based on who's best place to carry them out ○ Apply change control § Issues taken through change control process § Changes to project outputs needed if issues significant

Question 65

* What are proactive responses to risks?

Answer 65

○ Actions taken for issues include § Avoid - change objectives so threat can no longer occur § Reduce - reduce probability throug mitigations § Transfer - pass on responsobilities for risk ○ Actions taken for opportunities include § Exploit - change objectives to make the most of the opportunities § Enhance - exploit opportunity by inceasing likelihood or impact § Share - collaborate with other organisations § Reject- don't take advantage

Question 66

* What are reactive responses to risks?

Answer 66

○ Accept - risk managed and contingency used if risks materialise

Question 67

* What is the role of governance in risk and issue management?

Answer 67

○ Work in risk management to provide systems of control, confidence and routes for escalation ○ Helps standardise methods, prodecures etc using available expertise and resources ○ Sets out lifecycle used and targets assurance where needed ○ Assurance provided independently to support management of risks Risk analysis gives guidance to assurances on where vulnevrability lies and informing decision making at gateways or phase reviews.

Question 68

* What is change control?

Answer 68

○ Ensures alterations to scope and timelines are managed systematically ○ Helps mitigate risks and maintain stability and success ○ PMs can navigate unseen consequences ○ Essential in transparency, minimising disruption and fostering adaptability

Question 69

* How does it work with linear life cycles?

Answer 69

○ Change requests made where changes to baseline of project ○ Managing CRs enables sponsor and stakeholders to understand impact and how it can be responded - based on risk appetite and objectives ○ Unmanaged change can have far reaching impacts - in project and BAU ○ Retrospective process can be used without formal agreement ○ Change freeze may be needed - prevents any further change

Question 70

* How does it work with iterative life cycles?

Answer 70

○ Change control embedded within development process, starting each iteration with planning meeting to clarify goals - changes each iteration from design - not typically done as change requests but these can still be used - as change far more accepted

Question 71

* What stages does the change control process involve?

Answer 71

a. Request - from internal or external stakeholders - CR logged in change register w/ unique identifier b. Initial evaluation - considers whether change should be considered in more detail or rejected at eary stage c. Detailed evaluation - in detail looks at affect on project baseline d. Recommendation- defer (more info needed), reject or approve. Decision from board for decision- sponsor accountable for ensuring decision is communicated to stakeholders e. Update plans to integrate change - change log updated, communicate the change to stakeholders, actions taken in line with change request - configuration records need to be updated to reflect latest version of the project documents, updates needed to roles and responsibilities etc

Question 72

* What does a change request typically involve?

Answer 72

○ Project overview ○ Descirption covering nature of change ○ Reason for change ○ Areas impacted ○ Source of change ○ Change request owner ○ Date raised and unique identifier ○ Status of change ○ Decision, date made and justification

Question 73

* What factors are there in assessing a change?

Answer 73

○ Change may impact: § Benefits § Scopes § Schedules § Costs § Quality § Resources § Risks § Stakeholders ○ Key to also understand why a change has been raised - is it needed because of regulation, risk profil, customer needs etc. ○ Also need to consider resources available to facilitate the assessment