Week 4, chap 7,8,9,10,13,14

Question 1

What is the difference between a plan and a strategy?

Answer 1

Strategy: states the overall decisions on how to achieve the desired impact

Plan: describes the steps required to reach the goal

Question 2

Name 8 elements included in a project plan.

Answer 2

1. Purpose and goals
2. Scope and delimitations
3. Requirements specification
4. Delivery and implementation
5. Situational analysis and stakeholders
6. Organization and staffing
7. Communication
8. Milestones
9. Activities
10. Schedule
11. Budget and benefit assesment
12. Risk analysis
13. Routines for change management

Question 3

Describe a Sequential development planning model/Waterfall planning modell.

Answer 3

One activity has to be completed and approved before next one starts. Takes usually to long time to work in the real world. Low risk!

Question 4

Describe a concurrent engineering planning model.

Answer 4

Develop different parts of a project simultaneously. Quicker method but risk that the different parts doesn’t fit together.

Question 5

Describe a rolling wave planning model.

Answer 5

Only the closest time period is planned in detail, activities happening later on are only planned at a general level to be planned for later. Good when operating in a changing environment.

Question 6

Describe an agile sprint planning model.

Answer 6

You plan for one sprint at a time, 2 - 4 weeks. Suitable when you don’t know what the solution will be, you develop the plan as you go.

Question 7

What are the 8 steps in the planning chain?

Answer 7

1. Determine the purpose and goal
2. Define the scope of the project
3. Compare with requirements
4. Create a logical network
5. Plan activities
6. Draw up a schedule
7. Map out resource needs
8. Estimate costs

Question 8

What are the 5 resources usually needed in projects?

Answer 8

1. Project members
2. Equipment
3. Materials
4. Time
5. Money

Question 9

What does a Gantt chart illustrate and how is it used?

Answer 9

It is an activity plan with a timeline. Activities are specified with duration, start and finish times. Activities are illustrated as bars, milestones as markers and dependencies as arrows.

It is used for achieving good prerequisites for producing a realistic schedule and help to plan for resources needed.

Question 10

What does a logical network illustrate and why is it used?

Answer 10

It shows how and which activities depend on each other. Work packages that have logical dependencies are placed in the same network, otherwise they are in parallel networks. Help to know in what order things need to be executed in the activity list.

Question 11

What does a resource histogram illustrate and why is it used?

Answer 11

Shows the resource usage over time. Helps you to see if there is an uneven use of resources over time in the projects.

Question 12

What does a Work Breakdown Structure illustrate and why is it used?

Answer 12

The project goals are broken down into smaller parts, which is illustrated in a hierarchical structure. Facilitates the work of identifying activities and milestones.

Question 13

Name two strategies to estimate uncertainties. Explain.

Answer 13

Lischtenberg and PERT. Used when time is an uncertainty. Estimate maximum, minimum and likely value.

Question 14

Why is it risky to have the project manager select the project group?

Answer 14

He or she might only choose people they have worked with before. Not be objective enough.

Question 15

In a well-functioning matrix organization, how should the process of staffing the project group take place?

Answer 15

The PM decides and inform how many and what kind of resources he needs. Then the line manager (resource owners) choose and allocate the asked employees.

Question 16

What is a procurement process?

Answer 16

Its a process for acquire resources/material/equipment externally. Usually begins with a request for proposal to the supplier assessed and end with a signed contract with the best supplier.

Question 17

What are the 5 questions that should be answered ahead of procurement?

Answer 17

1. Is procurement required?
2. What is to be procured?
3. How will procurement be performed?
4. When will procurement be performed?
5. Who is the supplier?

Question 18

What are the different basic phases of a negotiation process?

Answer 18

1. Planning
2. Exchange of information (ask questions, communicate)
3. Bargaining (If.. then)
4. Closure (be detailed)

Question 19

What is the difference between project costs and product costs?

Answer 19

Project costs = resources in the project

Product costs = materials needed to produce the project (the result of the project)

Question 20

What is “the lifecycle cost”?

Answer 20

All costs arising during all phases of a product’s lifecycle

Question 21

What are the two strategies to estimate costs during the planning phase of a project?

Answer 21

Top-down (base estimate on costs on other similar projects already executed)

Bottom-up (base estimate on a detailed analysis of each activity in the project)

Question 22

What is the difference between direct and indirect costs?

Answer 22

Direct costs: can be assigned to a specific activity

Indirect costs: overhead costs, shared bu several activities or cost bearers

Question 23

What is a self-costing estimate?

Answer 23

The project should bear all of its own costs - both direct costs and a fair share of the company’s overhead

Question 24

Why does the project triangle play a big role when planning costs?

Answer 24

To know which requirements should be prioritized. The budget probably can’t cover all requirements asked for.

Question 25

What is a contribution estimate and why is it useful?

Answer 25

The project is being responsible only for the specific costs (costs that arise only if the project is executed). Useful when trying to choose and prioritize between different projects.

Question 26

What is a specific revenue?

Answer 26

The revenue that arises through the execution of the project

Question 27

What is a specific cost?

Answer 27

Costs that arises only if the project is executed

Question 28

How is the contribution margin calculated?

Answer 28

Specific revenue - Specific cost = contribution margin

Question 29

How is the financial result calculated?

Answer 29

Revenue - Cost = financial result

Question 30

Why is the activity plan useful when estimating costs?

Answer 30

You can put a price in the planned resources and multiply it by the time the resources are needed -> easier to keep track on costs if an activity changes.

Question 31

How is the cost for a Scrum team calculated?

Answer 31

Sprint duration * No of developers in the team * Cost/day/developer

Question 32

How is the cost for an agile project calculated?

Answer 32

No of sprints + Cost for time of project owner

Question 33

What is a resource histogram and how can it be used during planning?

Answer 33

Shows an overview of the distribution of resources over time. Give us an estimate of project costs over time.

Question 34

How can a resource histogram be used during execution?

Answer 34

It is used as information source in order to enable accrual-basis accounting.

Question 35

How do you calculate the estimated average value according to Lichtenberg's method?

Answer 35

(Texpected) = (Tmax + 3 Tlikely + Tmin)/5

Question 36

What are the values in Lichtenberg's method based on?

Answer 36

Experience from other projects or estimates from groups with members having different ideas of the final costs

Question 37

What is the pay-off method and how can it be used?

Answer 37

You estimate the time that passes before a project has earned back the capital invested. Can be used when ranking different projects against each other.

Question 38

What is the net present value method and how can it be used?

Answer 38

A method for estimating investments, taking into account payments and expenditures that occur in the future/at different time points. Recalculate the value of all expected payments and expenditures of the investment at a certain time.

Question 39

What is the internal rate of return and how can it be used?

Answer 39

Determine the interest rate at which the net present value is zero. It reveals the annual ROI on the project.

Question 40

Explain the difference between risk and uncertainty.

Answer 40

Risk = an uncertain event that it is unsure if it's going to occur or not, uncertain consequense Uncertainty = a known event that will have different outcomes depending on external or internal factors

Question 41

Explain the process of risk identification.

Answer 41

Through risk identification, possible risk events are found. It is an iterative process that begins in the idea stage. It is best to use as many sources as possible to identify risks.

Question 42

What are the four examples of risk categories in Tonnquist?

Answer 42

1. Risks related to technology, quality and execution 2. Risks related to project management 3. Organizational risks 4. External risks

Question 43

Explain the difference between mini risk method and maxi risk method.

Answer 43

Mini: multiply the likelihood of a risk event happening with the value of the consequence. Focus on the risk events with the higher sum. Maxi: The consequense of each risk event is valued in 3 dimensions: Q, T, R.

Question 44

Once risks have been identified, what is the next step to be done in the planning?

Answer 44

You need to find the probability of the risk event actually happening and the consequences they bring if they do. This is done through a qualitative and quantitative risk analysis.

Question 45

What is risk response planning?

Answer 45

An action plan with strategies for realizing possibilities and handling risks.

Question 46

What strategy should be used to prioritize risks?

Answer 46

Calculate the one with highest probability to happen together with highest value of consequence for the project.

Question 47

Give four examples of risk response strategies.

Answer 47

1. Avoid risk - change the project plan. remove risk. 2. Transfer risk - shift to third party, ex insurance 3. Reduce risk - decrease the likelihood or consequence 4. Accept risk - no changes

Question 48

What is Japanese quality philosophy?

Answer 48

Teach your customers to always ask for better service/goods. Forces companies to stay good.

Question 49

Which three aspects do Quality management consists of?

Answer 49

1. Quality planning (triangle, level, ambition) 2. Quality assurance 3. Quality audit (Pareto chart) Purpose is to increase the quality in project work.

Question 50

Which activities should be performed during execution?

Answer 50

1. Communicating and reporting 2. Following up and comparing results with schedules 3. Following up and comparing resources and costs with budget 4. Analysing consequences 5. Handling changes 6. Following up contracts and resources

Question 51

What does RACI stands for?

Answer 51

A matrix where you define roles and who do what Responsible - the person in charge of execution Accountable - the person with mandate to approve and make decisions Consulted - the person who provides support as a resource Informed - the person who needs info on status and decisions

Question 52

Name two of the methods for status reports.

Answer 52

Milestone chart - compare planned milestones with when they were completed in reality. Percentage work performed - assess how much of each activity that remains

Question 53

Which are the 6 steps for keeping project costs under control?

Answer 53

1. Reporting and following up on actual costs as compared with the plan 2. Identifying deviations as compared with the plan 3. Identifying causes of deviations 4. Creating and implementing relevant measures 5. Follow up to see if the measures have fixed the problem 6. Creating further measures if necessary

Question 54

What does implementation entail?

Answer 54

Placing the product in the environment it is created for

Question 55

What are the three stages of an individual's attitude to change?

Answer 55

1. Excitement 2. Hangover 3. Positive attitude

Question 56

What can be done to facilitate the process of an individuals resistance to change?

Answer 56

Get the organizations support - include informal leaders, use reference groups from different parts of the organization. Make sure the employees understand the purpose of the change and give them time to accept it.

Question 57

Which activities can facilitate a successful hand-over?

Answer 57

1. A working change management 2. Established routines ensuring that goals and requirements have been met 3. Constantly keeping the stakeholders informed

Question 58

What is the primarily goal of an administration and management model?

Answer 58

To manage and describe how administration work is to be performed. Use to control work and plan activities that are necessary for administration of the product.