Project Management

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Project Management
Slovak University of Technology Faculty of
Material Science and Technology in Trnava

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• Definitions
• Project is time delimited effort that is done
  with only one goal to create unique result.
• Software project is collection of activities,
  technical and operative, which are requested to
  assure conditions of project agreement.
• Project management include using of knowledge,
  skills, equipments and techniques for project
  activities, with goals to achieve needs and
  expectations of project.

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Project management

Development
Quality
analyse, design,
Change
Assu- rance
implementation,
mngmnt
testing,
integration
Life cycle Waterfall modell, RUP, ...
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Core Workflows
Supporting Workflows
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Successful project

• Successful project is finished
• Within the frame of specified time
• Within the frame of defined budget
• On requested performence level
• Result acceptance by customer
• Without any accidence in organisation
• With minimum abnormality from project layout

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Processes of project management Processes are
focused on work throughout project
duration. Initialization recognition that
project or phase can begin. Planning creation
and preservation of schema to ensure project run.
Control to provide that goal of project are
executed. Execution stuff coordination and other
resources at the plan assurance. Completion
completion and acceptance of project.
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Processes of management
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I. Software project planning . The purpose of
Software Project Planning is to establish
reasonable plans for performing the software
engineering and for managing the software
project. Software Project Planning involves
developing estimates for the work to be
performed, establishing the necessary
commitments, and defining the plan to perform the
work.
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I. Software project planning . The software
planning begins with a statement of the work to
be performed and other constraints and goals that
define and bound the software project. The
software planning process includes steps to
estimate the size of the software work products
and the resources needed, produce a schedule,
identify and assess software risks, and negotiate
commitments.
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I. Software project planning . Iterating
through these steps may be necessary to establish
the plan for the software project (i.e., the
software development plan). This plan provides
the basis for performing and managing the
software project's activities and addresses the
commitments to the software project's customer
according to the resources, constraints, and
capabilities of the software project.
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Goals Goal 1 Software estimates are documented
for use in planning and tracking the software
project. Goal 2 Software project activities and
commitments are planned and documented. Goal
3 Affected groups and individuals agree to their
commitments related to the software project.
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Ability to perform Ability 1 - A documented and
approved statement of work exists for the
software project. Ability 2 - Responsibilities
for developing the software development plan are
assigned. Ability 3 - Adequate resources and
funding are provided for planning the software
project. Ability 4 - The software managers,
software engineers, and other individuals
involved in the software project planning are
trained in the software estimating and planning
procedures applicable to their areas of
responsibility.
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Activities performed Activity 1 - Software
project planning is initiated in the early stages
of, and in parallel with, the overall project
planning. Activity 2 - The software engineering
group participates with other affected groups in
the overall project planning throughout the
project's life. Activity 3 - Software project
commitments made to individuals and groups
external to the organization are reviewed with
senior management according to a documented
procedure. Activity 4 - A software life cycle
with predefined stages of manageable size is
identified or defined. Activity 5 - The
project's software development plan is developed
according to a documented procedure.
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Activity 6 - The plan for the software project
is documented. Activity 7 - Software work
products that are needed to establish and
maintain control of the software project are
identified. Activity 8 - Estimates for the size
of the software work products are derived
according to a documented procedure. Activity 9
- Estimates for the software project's effort and
costs are derived according to a documented
procedure. Activity 10 - The project's software
schedule is derived according to a documented
procedure. Activity 11 - Software planning data
are recorded.
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Verifying implementation Verification 1 - The
activities for software project planning are
reviewed with senior management on a periodic
basis. Verification 2 - The activities for
software project planning are reviewed with the
project manager on both a periodic and
event-driven basis. Verification 3 - The
software quality assurance group reviews and/or
audits the activities and work products for
software project planning and reports the
results.
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Planning tools I. Net graphs II. Segment
graphs
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I. Net graphs PERT (EIN) Program Evaluation
and Review Technique the method of evaluation
and control of project event in nod PDM (AIN)
Precedence diagraming Method the method of
precedency diagram activity in nod AOA (ADM)
Activity on Arrow
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Typ of net graphs
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What the net graph is The net graph is visual
displaying that connect project activities with
the aim of display its interaction
dependency. Each activity has unions with former
and following activities
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- PERT diagram combination of AIN and EIN
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- Gantt diagram
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Graphical convention
A, B - activity 3 nod
Fusion
Dividing
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Graphical convention
R before S, T before U
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Graphical convention
R and T before S and U
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Graphical convention
R a T before S, T before U
Dummy activity, lenght 0
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CPM (Critical Path Method ) CPM/PERT is based
on the basis that a small set of activities,
which make up the longest path through the
activity network control the entire project. If
these "critical" activities could be identified
and assigned to responsible persons, management
resources could be optimally used by
concentrating on the few activities which
determine the fate of the entire
project. Non-critical activities can be
rescheduled and resources for them can be
reallocated flexibly, without affecting the whole
project.
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CPM (Critical Path Method ) CPM/PERT have been
useful in planning costs, scheduling manpower and
machine time. CPM/PERT can answer the following
important questions What will be the project
duration? What are the critical activities which
could delay the entire project if they were not
completed on time? What is the current status of
the project i.e. Is the project on schedule,
behind schedule or ahead of schedule? If the
project has to be finished earlier than planned,
what is the best way to do this at the least
cost?
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• Procedure
• Specify the Individual Activities
• From the work breakdown structure, a listing
  can be made of all the activities in the project.
  This listing can be used as the basis for adding
  sequence and duration information in later steps
• 2. Determine the Sequence of the Activities
• Some activities are dependent on the
  completion of others. A listing of the immediate
  predecessors of each activity is useful for
  constructing the CPM network diagram.
• 3. Draw the Network Diagram
• Once the activities and their sequencing
  have been defined, the CPM diagram can be drawn.
  CPM originally was developed as an activity on
  node (AON) network, but some project planners
  prefer to specify the activities on the arcs.

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4. Estimate Activity Completion Time The
time required to complete each activity can be
estimated using past experience or the
estimates of knowledgeable persons. CPM is a
deterministic model that does not take into
account variation in the completion time, so
only one number is used for an activity's time
estimate 5. Identify the Critical Path The
critical path is the longest-duration path
through the network. The significance of the
critical path is that the activities that lie on
it cannot be delayed without delaying the
project. Because of its impact on the entire
project, critical path analysis is an important
aspect of project planning  
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TERMINOLOGIES Earliest Start The earliest time
at which the activity can start given that its
precedent activities must be completed first. It
is the value in the rectangle near the tail of
each activity Earliest Finish This is equal to
the earliest start time for the activity plus
the time required to complete the activity i.e.
Earliest Start Duration Latest Finish The
latest time at which the activity can be
completed without delaying the project. It is
the value in the diamond at the head of each
activity Latest Start It is equal to the
latest finish time minus the time required to
complete the activity i.e.Latest Finish -
Duration
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• Question
• What happened if some of activity will delay?
• How the whole length of project will change?
• It is possible to discover it by using CPM
  method.

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Critical Path The critical path is the path
through the project network in which none of the
activities have slack, that is, the path for
which ESLS and EFLF for all activities in the
path.
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Example.
(1,6) (4,9)
(1,6) (1,9) (10,13) (14,25) (14,23) (24,2
9) (30,36)
(1,9) (1,9)
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5
6
F
2
E
A
D
C
G
7
1
4
B
3
Critical path there is no time reserve !
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• II. Segment graphs
• graphically represent the time plan of
  activities or tasks.
• there is seen, which activities are in ample
  time besides the plan and which has delay
• sometimes are called Gantt diagram
• segment graphs are not suitable for project
  control
• segment graphs are suitable as a pointer than a
  planning tool

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Activity
Now
realization
A
80
Degree of finalization
B
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Plan
C
60
D
Time
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Work Breakdown Structure
WBS is a fundamental project management technique
for defining and organizing the total scope of a
project, using a hierarchical tree structure.
The first two levels of the WBS (the root node
and Level 2) define a set of planned outcomes
that collectively and exclusively represent 100
of the project scope. At each subsequent level,
the children of a parent node collectively and
exclusively represent 100 of the scope of their
parent node.
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The 100 Rule One of the most important WBS
design principles is called the 100 Rule. The
100 Rule...states that the WBS includes 100 of
the work defined by the project scope and
captures all deliverables internal, external,
interim in terms of the work to be completed,
including project management.
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Level of detail A question to be answered in
the design of any WBS is when to stop dividing
work into smaller elements. A common way of
deciding the detailing level is the time between
status reports/meetings. If the team reports
bi-weekly the largest work package should be 80
hours. Then at reporting time a package is either
not started, in progress, finished or late. This
way makes it easy catching delays.
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Decomposition Considerations (Breadth vs.
Depth) WBS will tend to be most useful for
project management when its breadth and depth are
thoughtfully balanced. A common pitfall is to
inadequately group related elements, resulting in
one or more nodes of the WBS becoming "too wide"
to support effective management.
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WBS coding scheme It is common for WBS elements
to be numbered sequentially to reveal the
hierarchical structure. For example 1.3.2 Rear
Wheel identifies this item as a Level 3 WBS
element, since there are three numbers separated
by a decimal point. A coding scheme also helps
WBS elements to be recognized in any written
context.
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WBS- as a part of planning techniques
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Reality - reports - orders - accounting.
Plán
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The project truncating.
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Example No.2
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(24,29) (24,29)
F
(33,39) (30,36)
5
6
(14,23) (14,23)
2
3
I
(1,6) (4,9)
3
4
(40,43) (40,43)
A
D
E
9
C
(14,25) (18,29)
K
(10,13) (10,13)
1
4
10
(36,39) (36,39)
J
8
B
G
(1,9) (1,9)
H
(14,21) (22,29)
3
7
8
(30,35) (30,35)
(Earliest Start, Earliest Finish) (Latest Start,
Latest Finish)
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(24,29) (24,29)
F
(33,39) (30,36)
5
6
(14,23) (14,23)
2
3
(1,6) (4,9)
I
3
4
(40,43) (40,43)
A
D
E
9
C
(14,25) (18,29)
K
(10,13) (10,13)
1
4
10
(36,39) (36,39)
J
8
B
G
(1,9) (1,9)
H
(14,21) (22,29)
3
7
8
(30,35) (30,35)
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• gt Our aim is to truncate length of project.
• One of possibilities is increase costs into
  project.
• (This is manager decision.)
• Procedure
• to choose activity that is necessary to
  truncate.
• choose critical activity
• from critical activities, choose activity with
  smallest IPN

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Task truncate project about 11 wks to 32.
NCT Planed time, NN Cost (planed time) SCT
- Shorten time, NS Cost (shorten time)
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Is necessary to calculate IPN growth index
costs.
NCT Planed time, NN Costs (planed time) SCT
- Shorten time, NS Costs (shorten time)
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F2/6
5
6
2
I3/7
E5/10
A2/6
9
K1/4
D4/12
C2/4
1
4
10
J2/4
B4/9
G3/8
H3/5
3
7
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A2/6 A - activity 2 - max reduction 6 - time
of duration
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• Procedure
• choose critical activity
• from critical activities, choose activity with
  smallest IPN
• 1. step we choose activity B
• 2. step truncate it about 3 wks
• 3. step calculate truncate
• (time of truncate x IPN costs)
• 3 x 400 1200
• 4. step truncating of project 43-340 wks

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Procedure will be repeated for J activity
1. step we choose activity J 2. step truncate
it about 2 wks 3. step calculate truncate
(time of truncate x IPN costs) 2 x 400
800 4. step truncating of project 40-238 wks
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Procedure will be repeated for E activity
1. step we choose activity E 2. step truncate
it about 4 wks (D become critical) 3. step
calculate truncate (time of truncate x IPN
costs) 4 x 450 1800 4. step truncating of
project 38-434 wks
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Procedure will be repeated for H activity
1. step we choose activity H 2. step truncate
it about 1 wks (I become critical) 3. step
calculate truncate (time of truncate x IPN
costs) 1 x 700 700 4. step truncating of
project 34-133 wks
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Procedure will be repeated for D and E activity
1. step we choose activity D and E it is
parallel 2. step truncate it about 1 wks (E can
truncate only about 1) 3. step calculate
truncate (time of truncate x IPN costs) 1
x (300450) 750 4. step truncating of project
33-132 wks
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• The result of truncating is
• project length 32 wks
• total costs of truncating
• 12008001800700750 5250
• total costs of project
• 45500 5250 50750

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• Rules
• The parallel activities can truncate until
  parallel activity become critical.
• Then have to truncate both (costs are counted)
• The critical parallel activities can truncate
  until is possible max truncating of one activity
  to zero.
• this method outgoing from qualified estimate

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5
6
2
9
1
4
10
B 4 / 9
G
B 1 / 6
3
7
8
B2/6 B - activity 2 - max reduction 6 - time
of duration
- New critical paths
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NMZ - Earliest Start, NPZ - Latest
Start NMK - Earliest Finish, NPK - Latest
Finish
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Time estimating PERT methods In PERT activity
durations are estimated based on three possible
completion assumptions - Most optimistic
completion time - To. - Most pessimistic
completion time - Tp. - Most likely completion
time - Tm. There are 2 assumptions while
combinig the above three estimates into a single
expression - The standard deviation, is
one-sixth of the time requirement range. This
assumption stems from probability theory where
the end points of a curve are three standard
deviations from the mean. - Probability
distributions of activity durations can be
expressed as beta distrubiton
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Te expected time
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The expected time between events can be found
from the expression
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Probability of Accomplishment s - If the
decision maker is statistically sophisticated, he
can examine the standard deviations and the
probability of accomplishment data based on these
assumptions. - The total path standard deviation
is calculated by the square root of the sum of
the squares of the activity standard deviations
using the following expression
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Example
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• 2. Pragmatik time estimating
• this method go out from common arbitration time
  estimating upon skills
• Main steps
• On the ground of realized projects estimate time,
  costs, resources,
• Decide how much more is current project
  complicated is necessary to determine index
• Multiply existing budget with index

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Resource management is the efficient and
effective deployment of an organization's
resources when they are needed. Such
resources may include financial resources,
inventory, human skills, production resources, or
information technology(IT). Resource
management is a key element to activity resource
estimating and project human resource management.
Both are essential components of a
comprehensive project management plan to execute
and monitor a project successfully.
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HR (Human Resource) Management - the science of
allocating human resources among various projects
or business units, maximizing the utilization of
available personnel resources to achieve business
goals and performing the activities that are
necessary in the maintenance of that workforce
through identification of staffing requirements,
planning and oversight of payroll and benefits,
education and professional development, and
administering their work-life needs. - the
efficient and effective deployment of an
organization's personnel resources where and when
they are needed, and in possession of the tools,
training and skills required by the work.
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Resource allocation. In strategic planning, a
resource allocation decision is a plan for using
available resources, for example human resources,
especially in the near term, to achieve goals for
the future. It is the process of allocating
resources among the various projects or business
units.
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Resource allocation. The plan has two
parts Firstly, there is the basic allocation
decision and secondly there are contingency
mechanisms. The basic allocation decision is
the choice of which items to fund in the plan,
and what level of funding it should receive, and
which to leave unfunded the resources are
allocated to some items, not to others. There is
a priority ranking of items excluded from the
plan, showing which items to fund if more
resources should become available and there is a
priority ranking of some items included in the
plan, showing which items should be sacrificed if
total funding must be reduced.
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Profile is it a graph of resource
requirements in dependence on time. (is it
created basically on net graph or Gantt diagram.)
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Profile flatten
In the firm, there is available 9
programmers. After creating the profile, there
rise the following problem (We are
considering Earliest Start )
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Quality of profile the bigger dispersion,
the worse profile
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• Solution
• give the plan bigger attention
• move task F about one week (isn't it on
  critical path)
• use overtime work, change of planned holidays
• use on this job analytics or other highly
  qualified person
• admit to firm a new worker on the part time
  job or other
• change availability of resources
• change timing to fast critical path

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The cost estimation Project controls are
systems used to plan, schedule, budget, and
measure the performance of a project. The cost
estimation package is one of the documents that
is used to establish the baseline for project
controls.
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The cost estimation package is developed
primarily for establishing the project budget and
for providing the appropriate documentation and
justification for a funding request. Once the
project is funded, this package is not filed
away. It becomes the baseline or target against
which the performance of the project/program can
be controlled and compared. By comparing the
baseline with the actual performance, deviations
from the baseline can be identified and corrected
before they cause an impact on the project.
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The schedule in the cost estimation package
represents the same timeframe as the estimate.
Therefore, any change in this schedule could
affect the cost of the project/program. Thus,
management can compare the baseline schedule to
the actual schedule to identify scheduling
problems or changes and any associated cost
updates.
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The WBS and the organization of the budget cost
estimate included in the cost estimation package
set the precedence for all estimates throughout
the life of the project. The same organization
will be used by project controls so any cost
changes may be easily tracked against the
baseline WBS element.
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ESTIMATING METHODS The following briefly
describes techniques used to estimate A.
Bottoms-Up Technique Direct labor, equipment, and
overhead costs are derived and added. This
technique is used as the level of detail
increases as the project develops. B. Specific
Analogy Technique Specific analogies depend upon
the known cost of an item used in prior systems
as the basis for the cost of a similar item in a
new system. C. Parametric Technique Parametric
estimating requires historical data bases on
similar systems or subsystems. Data is derived
from the historical information or is developed
from building a model scenario.
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D. Cost Review and Update Technique An estimate
is constructed by examining previous estimates of
the same project for internal logic, completeness
of scope, assumptions, and estimating
methodology and updating them with any
changes. E. Trend Analysis Technique A
contractor efficiency index is derived by
comparing originally projected contract costs
against actual costs on work performed to date.
The index is used to adjust the cost estimate of
work not yet completed. F. Expert Opinion
Technique When other techniques or data are not
available, this method may be used.
Several specialists can be consulted repeatedly
until a consensus cost estimate is established.
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II. Project execution.
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II. Project execution.

• The base process of project execution
• Execution of project plan i.e. realization of
  project plan by performing of individual planned
  activities

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• Supporting processes of project execution
• Quality assurance the regular evaluation of
  project execution from view of quality assurance
• Team evolution evolution of specialized skills
  with aim of team productivity increasing
• Information distribution information
  accessibility into all who need it in required
  time
• Choose of resource choose from prospective
  suppliers
• Contract administration provide and keep
  contact with supplier

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• The project manager coordinate and realize
• task allocation
• priority setting
• jurisdiction delegation
• watching of job progress in the project
• decision about important resources allocation

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III. Project control.
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III. Project control.

• Base processes of project control
• Product review collecting and distributing
  info about project progress
• Change management coordination of changes
  within entire project

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Change management is the process of developing a
planned approach to change in an organization.
Typically the objective is to maximize the
collective efforts of all people involved in the
change and minimize the risk of failure of
implementing the change. The discipline of
change management deals primarily with the human
aspect of change, and is therefore related to
pure and industrial psychology.
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• There are six main activities, which jointly form
  the change
• management process.
• They are
• Identify potential change
• Analyze change request
• Evaluate change,
• Plan change,
• Implement change and
• Review and close change

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Activities are executed by four different roles
Role Description
Customer The customer is the role that requests a change due to problems encountered or new functionality requirements this can be a person or an organizational entity and can be in- or external to the company that is asked to implement the change.
Project manager The project manager is the owner of the project that the CHANGE REQUEST concerns. In some cases there is a distinct change manager, who in that case takes on this role.
Change committee The change committee decides whether a CHANGE REQUEST will be implemented or not. Sometimes this task is performed by the project manager as well.
Change builder The change builder is the person who plans and implements the change it could be argued that the planning component is (partially) taken on by the project manager.
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Change management principles 1. At all times
involve and agree support from people within
system (system environment, processes,
culture, relationships, behaviours, etc.,
whether personal or organisational). 2.
Understand where you/the organisation is at the
moment. 3. Understand where you want to be,
when, why, and what the measures will be for
having got there. 4. Plan development towards
above No.3 in appropriate achievable measurable
stages. 5. Communicate, involve, enable and
facilitate involvement from people, as early and
openly and as fully as is possible.
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Organization structures.
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Line structure Each subordinate has a only one
superior.
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Line structure with staff unit
Project manager
staff unit
Team leader
Team leader
staff unit
Pers 1
Pers 2
Pers n
Pers 1
Pers 2
Pers m
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Example
Top management
Project manager A
Project manager B
o o o o
Senior programmer
Consultant
Programmer
Program mer
o o o o
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Project structure
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Project structure with special group
PM
Project leader B
Project leader A
Implementation
Testing
Analyse, Design
Pers 1
Pers 2
Pers m
Pers 1
Pers 1
Pers 2
Pers n
Pers 2
Pers p
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FUNCTIONAL ORGANIZATION. Functional
organizations are segmented by key functions.
For example, activities related to production,
marketing, and finance might be grouped into
three respective divisions. Within each
division, moreover, activities would be
departmentalized into sub- departments. The
chief advantage of functionally structured
organizations is that they usually achieve a
fairly efficient specialization of labor and are
relatively easy for employees to comprehend.
In addition, functional structures reduce
duplication of work because responsibilities are
clearly defined on a company-wide basis.
However, functional division often causes
departments to become short-sighted and
provincial, leading to incompatible work styles
and poor communication.
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DIVISIONAL ORGANIZATION. Companies that employ a
product or divisional structure, by contrast,
break the organization down into semiautonomous
units and profit centers based on activities, or
"projects," such as products, customers, or
geography. Regardless of the project used to
segment the company, each unit operates as a
separate business. For example, a company might
be broken down into southern, western, and
Or, it might create separate divisions for
consumer, industrial, and institutional
products. One benefit of product or project
departmentalization is that it facilitates
expansion (because the company can easily add a
new division to focus on a new profit
opportunity without having to significantly
alter existing systems).
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MATRIX ORGANIZATION. Matrix management
structures combine functional and product
departmentalization. They simultaneously
organize part of a company along product or
project lines and part of it around functional
lines to get the advantages of both. Along the
left side of the same table would be different
projects. Within the matrix, each of the
product groups would intersect with each of the
functional groups, signifying a direct
relationship between product teams and
administrative divisions. In other words, each
team of people assigned to manage a product group
might have an individuals who also belonged to
each of the functional departments.
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Matrix structure
CEO
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• Matrix structure
• Project manager Functional
  manager
• - Controls what to do - knows what to do
  and manage it
• (content) - how to
  do it
• - When is necessary to - where the task
  will be done
• perform task
• - How important is task - decide who realize
  the task
• How many resources - watch the stuff and
  their activities
• is available
• Project manager and Functional manager
  are partners !

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• ADVANTAGES
• Efficient way to utilize highly specialized
  skills
• Minimal supervision
• Can be fluid as people come and go from teams
• Effective for rapid product development,
  innovation, and market responsiveness

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• DISADVANTAGES
• Highest bureaucratic costs
• Two-boss conflicts
• Complexity
• Double learning curve for employees
• Staff mobility can create confusion and
  disruption of productivity

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Methodology PRINCE2
Projects in Controlled Environments (PRINCE) - is
a project management methodology. It covers the
management, control and organisation of a
project. PRINCE2 is a registered trademark of
the U.K.'s Office of Government Commerce (OGC).
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PRINCE2 is derived from the earlier PRINCE
technique, which was initially developed in 1989
by the Central Computer and Telecommunications
Agency (CCTA) as a UK Government standard for
information systems (IT) project management
however, it soon became regularly applied outside
the purely IT environment. PRINCE was first
developed by the CCTA, now part of the OGC, in
1989 as a UK Government standard for IT project
management. Initially developed only for the
need of IT projects, the latest version,
PRINCE2, is designed for all types of management
projects. Next figure shows the processes
involved in managing a PRINCE2 project and how
they link with each other, creating the normal
content of a PRINCE2 project.
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Overview of the methodology PRINCE2 is a
process-driven project management method which
contrasts with reactive/adaptive methods.
PRINCE2 defines 45 separate sub-processes and
organizes these into 8 processes as follows -
Starting Up a Project (SU) - Planning (PL) -
Initiating a Project (IP) - Directing a Project
(DP) - Controlling a Stage (CS) - Managing
Product Delivery (MP) - Managing Stage
Boundaries (SB) - Closing a Project (CP)
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Starting up a project (SU) In this process the
project team is appointed and a project brief
(describing, in outline, what the project is
attempting to achieve and the business
justification for doing so) is prepared. In
addition the overall approach to be taken is
decided and the next stage of t he project is
planned. Once this work is done, the project
board is asked to authorize the next stage, that
of initiating the project.
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Starting up a project (SU) SU1 Appointing a
Project Board Exec and Project ManagerSU2
Designing a Project Management TeamSU3
Appointing a Project Management TeamSU4
Preparing a Project BriefSU5 Defining Project
ApproachSU6 Planning an Initiation Stage
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Planning (PL) PRINCE2 advocates product based
planning which means that the first task when
planning is to identify and analyse products.
Once the activities required to create these
products are identified then it is possible to
estimate the effort required for each and then
schedule activities into a plan. There is
always risk associated with any work and this
must be analysed. Finally, this process
suggests how the format of plans can be agreed
and ensures that plans are completed to such a
format.
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Planning (PL) PL1 Designing a PlanPL2
Defining and Analysing ProductsPL3 Identifying
Activities and DependenciesPL4 EstimatingPL5
SchedulingPL6 Analysing RisksPL7 Completing a
Plan
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Initiating a project (IP) This process builds on
the work of the Start Up (SU) activity and the
project brief is augmented to form a Business
Case. The approach taken to ensure quality on
the project is agreed together with the overall
approach to controlling the project itself
(project controls). Project files are also
created as is an overall plan for the project.
A plan for the next stage of the project is
also created. The resultant information can be
put before the project board for them to
authorize the project itself.
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Initiating a project (IP) IP1 Planning
QualityIP2 Planning a ProjectIP3 Refining the
Business Case and RisksIP4 Setting up Project
ControlsIP5 Setting up Project FilesIP6
Assembling a Project Initiation Document
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Directing a project (DP) These sub-processes
dictate how the Project Board should control the
overall project. As mentioned above, the
project board can authorise an initiation stage
and can also authorize a project. Directing a
Project also dictates how the project board
should authorize a stage plan, including any
stage plan that replaces an existing stage plan
due to slippage or other unforeseen
circumstances. Also covered is the way in which
the board can give ad hoc direction to a project
and the way in which a project should be closed
down.
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Directing a project (DP) DP1 Authorising
InitiationDP2 Authorising a ProjectDP3
Authorising a Stage or Exception PlanDP4 Giving
Ad Hoc DirectionDP5 Confirming Project Closure
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Controlling a stage (CS) PRINCE2 suggests that
projects should be broken down into stages and
these sub-processes dictate how each individual
stage should be controlled. It also specifies
the way in which progress should be monitored and
how the highlights of the progress should be
reported to the project board. A means for
capturing and assessing project issues is
suggested together with the way in which
corrective action should be taken. It also lays
down the method by which certain project issues
should be escalated to the project board.
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Controlling a stage (CS) CS1 Authorising Work
PackageCS2 Assessing ProgressCS3 Capturing
Project IssuesCS4 Examining Project IssuesCS5
Reviewing Stage StatusCS6 Reporting
HighlightsCS7 Taking Corrective ActionCS8
Escalating Project IssuesCS9 Receiving Completed
Work Package
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Managing product delivery (MP) This process
consists of three sub-processes and these cover
the way in which a work package should be
accepted, executed and delivered.
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Managing product delivery (MP) MP1 Accepting a
Work PackageMP2 Executing a Work PackageMP3
Delivering a Work Package
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Managing stage boundaries (SB) The Controlling a
Stage process dictates what should be done within
a stage, Managing Stage Boundaries (SB) dictates
what should be done towards the end of a stage.
Most obviously, the next stage should be
planned and the overall project plan, risk log
and business case amended as necessary. The
process also covers what should be done for a
stage that has gone outside its tolerance
levels. Finally, the process dictates how the
end of the stage should be reported.
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Managing stage boundaries (SB) SB1 Planning a
StageSB2 Updating a Project PlanSB3 Updating a
Project Business CaseSB4 Updating the Risk
LogSB5 Reporting Stage EndSB6 Producing an
Exception Plan
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Closing a project (CP) This covers the things
that should be done at the end of a project. The
project should be formally de-commissioned (and
resources freed up for allocation to other
activities), follow on actions should be
identified and the project itself be formally
evaluated. CP1 Decommissioning a ProjectCP2
Identifying Follow-on ActionsCP3 Project
Evaluation Review
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PRINCE2 Advantages PRINCE2 is a structured
approach to project management. It provides a
Method for managing projects within a clearly
defined framework. Prince2 describes procedures
to coordinate people and activities in a project,
how to design and supervise the project, and
what to do if the project has to be adjusted if
it doesnt develop as planned. In the method each
process is specified with its key inputs and
outputs and with specific goals and activities to
be carried out, which gives an automatic control
of any deviations from the plan.
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PRINCE2 Advantages Divided into manageable
stages, the method enables an efficient control
of resources. On the basis of close monitoring
the project can be carried out in a controlled
and organized way. Being a structured
methodology widely recognised and understood,
Prince2 provides a common language for all
participants in the project. The various roles
and responsibilities involved in a project are
fully described and are adaptable to suit the
complexity of the project and skills of the
organisation.