Lecture 2: Project Management Flashcards Preview

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Flashcards in Lecture 2: Project Management Deck (80):
1

What is a project?

The achivement of a specified objective, which involves a series of activites and tasks that consume resources.

A temporary endeavour undertaken to create a unique product or service.
Temporary means that every project has a definite end.
Unique means that the product or service is different in some distinguishing way from all similar products or services.

Projects range in size, scope, cost and time.

A beneficial change which uses the special project management techniques to plan and control the scope of work in order to deliver product to satisfy the client's and stakeholder's needs and expectations

2

What is a criterion?

A standard of judgement or principle by which something is measured for value.

3

What is project success?

Project success means different things to different people. Each industry, project team or individual has its own definition of success. Definitions of project success are also dependent on project type, size and sophistication, project participants and experience of owners, etc.

In general, project success can be defines as the set of principles or standards by which favourable outcomes can be completed within a set specification.

4

List criteria for project success.

- time
- costs (construction, running, maintenance)
- quality
- psychosocial outcomes (satisfaction of interpersonal relations with project team members)
- satisfaction
- absence of legal claims
- flexibility to users
- completed on budget
- completed on schedule
- conforms to user's expectations
- meets specifications
- attains quality workmanship
- minimises construction aggravation
- transfer of technology
- friendliness of environment
- health and safety
- commercial profitability/ value

5

What are the 3 criteria of project success that form the "iron triangle"

- time
- cost
- quality

6

What are the success measures of meeting the design goals from the contract signed by the customer?

- Functional specifications
- Technical specifications
- Schedule goals
- Budget goals

7

What are the success measures of the benefits to the customer from the end products?

- Meeting acquisition goals
- Answering the operational need
- Product entered service
- Reached the end user on time
- Product has a substantial time for use
- Meaningful improvement of user operational level
- User is satisfied with product

8

What are the success measures of the benefits gained by the developing organisation from executing the project?

- Had relatively high profit
- Opened a new market
- Created a new product line
- Developed a new technological capability
- Increased positve reputation

9

What are the success measures of the benefits to the defence and national infrastructure?

- Contributed to critical subjects
- Maintained a flow of updated generations
- Decreased dependence on outside sources
- Contributed to other project

10

What are the success measures for overall success?

A combined measure for project success

11

What are KPI's?

Key Performance Indicators are general indicators of performance that focus on critical apects of outputs or outcomes.

12

Why is it better to have a limited number of KPI's?

Having a manageable number of KPI's is easier to maintain for regular use. Having too many (and too complex) KPIs can be time and resource consuming.

13

What is the purpose of KPIs?

To enable measurement of project and organisational performance throughout the construction industry.

14

Why is systematic use of KPIs essential?

Because the value of KPIs is almost completely derived from their consistent use over a number of projects.

15

Why is a large sample size required for KPI accuracy?

To reduce the impact of project specific variables. Therefore, KPIs should be designed to use on every building project.

16

What KPIs are included in the objective indicators/ measures?

- construction time
- speed of construction
- time variation
- unit cost
- percentage net variation over final cost
- net present value
- accident rate
- environment impact assessment (EIA) scores

17

What KPIs are included in the subjective indicators/measures?

- quality
- functionality
- end user's satisfaction
- client's satisfaction
- design team's satisfaction
- construction team's satisfaction

18

Define effectiveness.

A measure of how well the project was implemented or the degree to which targets of time and cost were met from the start-up phase to full production.

19

Construction time =

Construction time = (Practical completion date) - (Project commencement date)

20

Speed of construction =

Speed of construction = (gross floor area [m^2]) / (construction time [days/weeks/)

21

Define Time variation.

The measure by the percentage of increase or decrease in the estimated project in days/weeks, discounting the effect of extension of time (EOT) granted by the client.

22

Time variation =

Time variation = (Construction time - Revised contract period) / (Revised contract period) *100 per cent

23

Is cost confined to the tender sum?

No, it is the overall cost that a project incurs from inception to completion, which includes any costs that arise from variations, modifications during construction period, and the cost arising from the legal claims such as litigation and arbitration.

24

Unit cost =

Unit cost = (Final contract sum) / (Gross floor area [m2])

25

What is NETVAR?

Percentage net variation over final cost is the ratio of net variations to final contract sum expressed in percentage term. It gives an indication of cost overrun or underrun.

26

% NETVAR =

Percent NETVAR = (net value of variations) / (final contract sum) * 100%

27

Net value of variations =

Net value of variations = final contract sum - base

28

Base =

orginal contract sum + final rise and fall - contingency allowance

29

NPV =

NPV = Sum from t=0 to n (NCF/ (1+r)^t)
NPV is the net present value
NCF is the net cash flow
r is the discount rate

30

What is the most common measure of financial achievement?

Net Present Value (NPV)

31

Define health and safety.

The degrees to which the general conditions promote the completion of a project without major accidents or injuries.

32

Accident Rate =

Accident Rate = (Total no. of reportable construction site accidents) / (Total no. of workers employed or man hours worked on a specific project) * 1000

33

Define quality in the construction industry.

The totality of features required by aproduct or services to satisfy a given need; fitness for purpose. Quality is the guarantee of the products that convices the customers or the end-users to purchase or use.
Measured subjectively using the seven point scale.

34

Define specification.

The workmanship guidelines provided to contractors by clients or clients' representatives at the commencement of project execution.

35

Define functionality

The degree of conformance to all technical performance specifications.

36

Explain the benifits of identifying KPIs.

Good indicators of the performance of construction projects. They provide a useful framework for measuring and comparing project performance for future studies. They also furnish project managers, clients and other project stakeholders useful information to implement a project successfully.

37

List distinctive features of a project.

- A start and finish
- A lifecycle
- A budget with an associated cashflow
- Activites that are essentially unique and non repetitive
- Use of resources from different departments which need co-ordinating
- A single point of responsibility
- Fast tracking - getting the product to market before the competitors
- Team roles and relationships that are subject to change and need to be developed, defined and established (team building)

38

Define project management.

The application of knowledge, skills, tools and techniques to project activites in order to meet stakeholder's needs and expectations from a project.
In other words the project manager must do whatever is required to make the project happen.

39

What are the 9 component processes or project management?

- Scope
- Time
- Cost
- Quality
- HRM (human resource management)
- Communincation
- Risk
- Procurement
- Integration

40

Explain the project management steps for the most efficient way of introducing change.

- Define what needs to be accomplished. (Generally in terms of time, cost, and various technical and quality performance parameters)
- Developing a plan to achieve these and then working this plan, ensuring that progress is maintained in line with these objectives
- Using appropriate project management techniques and tools to plan, monitor and maintain progress
- Emplying persons skilled in project management - normally including a PM - who are given responsibility for introducing the change and are accountable for its successful accomplishment

41

What is project lifecyle?

Companies performing projects generally subdivide their projects into several phases or stage to provide better management control. Collectively these project phases are called the project lifecycle.

42

The management-by-projects approach encourages:

- organisation flexibility
- decentralised management responsibility
- holistic view of problems
- goal-orientated problem solution processes

43

Explain programme management.

The project management office (PMO) is managing a large capital project, which may be subdivided into a number of smaller related project to achieve a single common goal.

44

Explain porfolio management.

The project management office (PMO) is running a number of unrelated projects.

45

Explain the management struggles small projects may cause.

Small projects are often associated with a lack of definition, instructions are given verbally, and minimum standards are not established. There are no arbitration mechanisms, no exit strategies, and as small projects often have a short duration this does not allow time to establish a management system.

46

List 7 general management skills that a successful project manager should know.

- recruiting and personnel
- economics
- computer systems
- legal contracts
- personnel and human resources
- sales and marketing
- accounting and salaries

47

Explain the common aim of production management.

If there are repetitive tasks then setting up a production line to carry them out would be more effecient and cost effective.

48

Explain factors that influence the project management environment.

The project environment consists of the numerous stakeholders and players that could have an input or are impacted by the project.
Influenced by a wide range of issues:
- stakeholders
- client/ sponsor's requirements
- a company's organisation structure
- market requirements
- competitors
- new technology
- rules and regulations
- politics
- cultural, social and religious backgrounds
- economic cycle

49

Define project scope management.

The process required to ensure that the project includes all the work required, and only the work required, to complete the project successfully. It is primarily concerned with defining and controlling what is or is not included in the project, to meet the client's and stakeholders' goals and objectives.

50

Define project time management.

The process required to ensure timely performance of the project. It consists of activity definition, activity squencing, duration estimating, schedule devopment and time control.

51

Define project cost management.

The process required to ensure that the project is completed within the approved budget. It consists of resource planning, cost estimating, cost budgeting, cashflow and cost control.

52

Define project quality management.

Includes the process required to ensure that the project will satisfy the needs for which it was undertaken. It consists of determining the required condition, quality planning, assurance and control.

53

Define project human resource management.

Includes the process required to make the most effective use of the people involved with the project. It consits of organisation planning, staff acquisition and team development.

54

Define project communications management.

Includes the process required to ensure proper collection and dissemination of project information. It consists of communication planning, information distribution, project meetings, progress reporting and administrative closure.

55

Define project risk management.

Includes the process concerned with identifying, quantifying, and responding to project risk. It consists of controlling the risk management plan and being prepared for disaster recovery.

56

Define project procurement management.

Includes the process required to acquire goods and services from outside the company. It consists of procurement, planning, solicitation, source selection, contract administration and contract closeout.

57

Define project integration.

Integrates the three main project management processes of planning, execution and control - where inputs from several knowledge areas are brought together.

58

List the main benefits associated with a fully integrated project planning and control system.

- client (PM is the representative to the client)
- single point of responisbility (limit scope)
-estimating
-CPM (crititical path method)
- Fast track (new product to market before competitors)
- Schedule Gantt Chart
- Project integration
- Reporting interfaces (WBS, OBS)
- Respone Time (more flexible)
- Trends
- Procedures
- Project management office (PMO)

59

What is the role of the project manager?

As the single point of responsibility, it is the project manager who integrates and co-ordinates all the contributions, and guides them to successfully complete the project.

60

Important skills for a project manager.

- Make a project team
- Lead the project team and manage info
- Anticipate and solve problems
- Make decisions
- Integrate and network with stakeholders
- Be operationally flexible and able to spot entrepreneurial opportunites
- Plan, expedite and get things done
- Gain power through negotation and persuasion
-Understand the project environment
- Review, monitor, assess performance and apply control
-Administer the contract and the scope
- Manage within a environment of constant change
- Create a positve working environment
- Keep the client happy

61

What is the relationship between project and business-as-usual management?

Projects are unique
Business as usual is repetitive
Projects consist of business-as-usual activities

62

In the late 1940s the main school of project management was optimization, explain its key idea.

Optimize the outcome of the project using mathematical processes

63

In history, a main school of project management was modeling, explain its key idea.

Use of hard and soft systems theory to model the project.

64

In history, a main school of project management was governance, explain its key idea.

Govern the project and the relationship between project participants.

65

In history, a main school of project management was behaviour, explain its key idea.

Manage the relationships between people on the project.

66

In history, a main school of project management was success, explain its key idea.

Define success and failure and identify causes.

67

In history, a main school of project management was decision, explain its key idea.

Information processing through the project life cycle.

68

In history, a main school of project management was process, explain its key idea.

Find an appropriate path to the desired outcome.

69

In history, a main school of project management was contingency, explain its key idea.

Categorize the project type to select appropriate systems.

70

In history, a main school of project management was marketing, explain its key idea.

Communicate with all stakeholders to obtain their support.

71

Define construction project management

- planning, co-ordination and control of a project on behalf of a client
- identification of the client's objective in terms of utility, function, time, cost and quality.
- establishment of the relationship between resources: people, funds, equipment and material
- in pursuit of client's satisfaction with the project outcome
- a management environment that is created for the purpose of delivering one or more business products according to a specified business case

72

Define non-executive project management.

A role which is carried out in house to the client's organisation or within interdisciplinary practices.

73

Define executive project management.

A role undertaken by a firm or person independent of the other contributors to the process.

74

What are the positives of using KPIs?

They drive for continuous improvement, client satisfaction and service, air of openness and passion to get it right/ do better.

75

What are the problems with KPIs?

-Accuracy of measurement, who should be doing the measuring?
- The cost , where is it hidden?
-Honesty/ or lack of it open benchmarking

76

The NZ KPI Chart has 14 KPI's, what are they?

S1 Client Satisfaction: Consultant
S2 Client Satisfaction: Contractor
S6 Use Again: Contractor
S7 Value for Money
Q1 Client Satisfaction - Product
Q2 Defects on Handover
Q3 Defects Clearance
HSE1 LTIs
C1 Predictability Cost Design
C2 Predictability Cost Construction
C3 Predictibility Cost Project
T1 Predictability Time Design
T2 Predictability Time Construction
T3 Predictability Time Project

77

What is the purpose of the Project Management Body of Knowledge (PMBOK)?

To identify and describe best practices that are applicable to most projects most of the time, and for which there is widespread consensus about their value and usefulness of the best practices.
The body of knowledge is also intended to provide a common glossary and terminology within the profession of PM locally and internationally.

78

What are the 9 knowledge areas of the PMBOK?

- Project management scope
- Project time management
- Project cost management
- Project quality management
- Project human resource management
- Project communication management
- Project risk management
- Project procurement management
- Project integration

79

What are the 4 core elements of the PMBOK which determine the deliverable objectives of the project?

- Scope
- Time
- Cost
- Quality

80

What are the deliverable objectives achieved using the knowledge areas of the PMBOK?

- Integration
- Human resources
- Communication
- Risk
- Procurement and contract