Project management 2

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Flashcards on Project management 2, created by Markus Holm on 18/03/2020.
Markus Holm
Flashcards by Markus Holm, updated more than 1 year ago
Markus Holm
Created by Markus Holm about 4 years ago
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180. Describe a strategy to get support for coming changes in an organization. You need to create an atmosphere of positive expectations within the organization. However, expectations must not be too large, as this increases the risk that the project will not satisfy them. For this reason, it is important to continually monitor the achieved results and adjust the conceptions of the project’s benefit needed. “Think drop” is a Japanese method for getting support for ideas, with the aim of preparing for a future change. The method is based on planting an idea at the bottom of an organization to see if it gets wings and has enough staying power to make it all the way to the top. An idea that is strong enough to survive will most likely also be viable as a project. On its way through the levels of the organization, the original idea will have gained support and many will think of it as it was their own.
179. What are the four rooms for change? The four rooms of change is a theory that describes changes as a motion between four psychological phases or “rooms”. In all changes, we move from satisfaction that is lost during a period of censorship, which governed by defense of the old. Thereafter, the period of confusion begins, when we give up the old. This is the turning point, a reset that is experienced as a “small death”, but which also opens us up to the possibilities of the new, whereby we continue to the next stage, inspiration or re-neweal. Different people move between the four rooms at different speeds. Sometimes people take a step back to an earlier room. 1. Satisfaction - the status quo is good. Why make a change? 2. Censorship - defence of the old 3. Confusion - acceptance, giving up, “the turning point” 4. Renewal - inspiration, commitment
178. Tonnquist distinguish between “motivators”, “enablers” and “triggers”, which govern the action of personnel, for instance during changes. What do these concepts refer to? Motivators: What is seen as most important by employees? This can refer to managerial behavior, wages, work content, career paths, status of the possibility of taking courses. Enablers: Who provides the rewards or punishments? This is determined by work descriptions, organizational diagrams, reporting pathways and authorizations. Triggers: How should you act in order to be rewarded? This can refer to performance, goals achieved or milestones, positive evaluations or strategic work.
177. What are the 8 steps, which according to Kotter, are required for change projects to succeed? 1. Create a sense of urgency - mobiles the organization and convince employees that the change is necessary. 2. Build a guiding coalition 3. - build a team with a leader who has both status and power within the organization. Make sure that employees from different parts and levels of the organization is included. This lends credibility and makes it easier to get support 4. Form a strategic vision and initiatives - define a vision to get employees onboard through the entire change process 5. Communicate the vision - the vision must be communicated to the entire organization 6. Delegate the mandate to act - dare to delegate the authority for problem-solving to employees. 7. Generate short-term gains - follow-up on and measure gains made during the process. Show appreciation and reward performance, this shows that work is progressing and can help eliminate any remaining reluctance. 8. Widen the efforts - changes take time - move ahead gradually. Use the short term gains to show that the process is moving toward the vision 9. Create a lasting change - safeguard the effects by implemen
176. Give 3 examples of tacit knowledge and of explicit knowledge. Explicit knowledge: Code of conduct for an organization, documented work, contacts of potential customers in a database. Tacit knowledge: humor, task that require physical coordination e.g. riding a bicycle, aesthetic sense.
175. What is the difference between tacit and explicit knowledge? Explicit knowledge: is possible to express, verbalize and visualize. It can be described with drawings, presented in writing in plans and other documents and described with concrete words and images. Tacit knowledge: cannot be described in words. Tacit knowledge must be seen and experienced to be transferred from one person to another. This is like learning to ride a bicycle. Can be described as the glue that holds explicit knowledge together and makes sure it is put to use. Tacit knowledge can only be transferred between individuals who work together. Both explicit and tacit knowledge are crucial to the success of a project.
174. Draw the knowledge management loop.
173. According to the course book, what is the difference between knowledge and competence? - Knowledge: is something you can take in and learn. - Competence: appears only when you transform knowledge into action. At an early stage of a project, you handle the knowledge needed, while at a later stage, you handle the competence developed. From an operational perspective, it is desirable that the knowledge needed in a project also matches the competence you want to develop in the organization in the long term.
172. What does the concept “collective memory” stand for? This refers to the sum of all the experience within an organization or occupational group. It is best to have a balance between different age categories. Transferring experience and knowledge is often an informal process, where colleagues with more experience are stimulated by acting as mentors to new employees.
171. What are reference measures? Reference measures is when you make a measurement of the current situation and use to compare against the impacts. It is useful when you need to prove that the project has had a difference.
170. How can the impact measurement be determined? Were the expected benefits realized and did the project entail costs on par with the estimates? • Impact goals – Connect to S.M.A.R.T. • Reference measure – Make an assessment of the current situation and use it to compare when the impacts are followed up • Benefits realization – Follow up on the Business Case
169. Why are some projects discontinued? Please three reasons and explain. There are many reasons why a project might be discontinued: • The chosen solution cannot be realized • Higher priority need the resources better. • A competing product have been launched on the market during the projects course. • Changes in company ownership
168. What are the hidden flaws of project closure? There may prove to be flaws in the project or certain parts of the projects that are found to have been overlooked. This can have a backlash on the project if guarantees were made. Sloppy elements may need to be remade and certain aspects altered to satisfy the users. This will cause the total cost of the project to increase and profits shrink. Many of these problems are likely due to a hunt for lower costs and shorter deadlines in these projects.
167. Agile projects have been said to be better at meeting deadlines and budget than projects with detailed schedules, but are they better at meeting quality goals too? Motivate. Agile projects have been less successful in meeting quality goals. The reason is that it has been possible to launch the systems and close the projects, even though several product requirements have not been fulfilled. In a project that follows a schedule, all activities must usually be performed before a usable result can be handed over.
166. Which elements should be included in a final report? 1. Background, purpose and impact goals 2. Project goals and delimitations 3. Project owner 4. Evaluation of goals – Project goals, actual cost and estimates 5. Analysis of project course – Resources, risk management, communication & routines 6. Evaluation of the project organization – Structure, staffing, steering committee 7. Quality follow-up - Results 8. Comments from steering committee 9. Comments from reference group 10. Recommendation 11. References
165. Explain how a project can be evaluated. A project should be evaluated in as many ways as possible. Both the results and the processes should be studied. This means that activities performed should be analyzed and the results measured against the goals. - Evaluating the results: at the end of the project, you should evaluate the results of execution. You can assess if product and project goals are fulfilled, but it is too early to say if the impact goals are met. In order to determine that a project has achieved its goal, you must have fulfilled the entire contents of the goal formulation. - Actual cost: in the closure phase, the project manager should report how many resources were used by calculating the actual cost. - Time expenditure: Aside from evaluating product quality and project economy, it is important to evaluate time consumption.
164. According to Tonnquist (2016), administration and management of the results is important in order to secure impact goals. What is the primary goal of an administration and management model? To manage and plan the work and activities necessary for the administration of the product. It consists of: • Processes • Roles and responsibilities • Documents and templates
163. Which activities can facilitate a successful hand-over? • Deliverables • Step-wise deliverables • Assessment Depending on the type of project, the method for hand-over will differ. If the project owner wants to check if the goal has truly been achieved, some form of practical test must be performed to measure performance and functions and compare them against requirements made. It is easier if you have decided in advance how results are to be tested, by drawing up a test specification and designing test cases. The project owner’s competence is now always sufficient for assessing the results. Before hand-over, it is a good idea to create a delivery basis or record that do not meet the requirements or that are not complete or identified. If anything must be altered or redone, it is advisable to do it straight away without delay. The project manager should get those assessing the project or present their reports and comments as soon as possible. Tasks not finished are compiled in a list of further actions or a list of loose threads to be reviewed with the project owner.
162. Tonnquist (2016) argues that even if the employees know that a change is necessary it might be difficult to execute it, what can be done to facilitate this process? By dividing the project into sub-deliveries and communicating with stakeholders frequently you can minimize the negative effects. It is important to get users on-board as soon as possible. Education is also a way to facilitate this process. - The reference group: the projects, you are allowed to take “hostages”. This is done by getting key personnel involved at an early stage and letting them have an influence so they are party to decisions. Invite them to take part in a reference group. This will make them feel involved and likely to praise the project. Thus, they contribute to the likelihood of the result being welcomed within the organization, so that impact goals are eventually achieved. Create a reference group with informal leaders and people to whom others listen.
161. What are the three stages of an individual’s attitude to change? - Excitement: finally, something is happening. - Hangover: you start hesitate when you realize some consequences may not be positive. - Positive attitude: you understand and thus accept the change.
160. What does project implementation entail? It might be a project itself. When a project enters the implementation phase the conditions change, implementation can differ a lot from the rest of the project, in some cases it can be better managed by a new project manager. The composition of the project group can also change during implementation. Some participants are no longer needed and can be phased out, while others jump in to take part in the implementation. One reason to exchange people in projects is that it is hard to switch roles. Participation and being able to exert an influence are important, but during implementation it is best if the project manager runs a tight ship. There should be some space for having an opinion, but allowing changes at this stage of the project is dubious at best. The cost of making changes increases the later in the project you are. During implementation it is usually too late to perform changes.
EV (earned value) = the value of the work performed • EV = 4000 + 500 + 6000 = 10 500 PV (planned value) = the planned cost for the project performed • PV = 4000 + 500 + 6000 + 4000 = 14500 SPI = EV/PV 10 500/14 500 = 0,72
158. Which are the six steps for keeping project cost under control. 1. Reporting and following up on actual costs as compared with the plan. 2. Identifying deviations as compared with the plan. 3. Identifying the causes of deviations. 4. Creating and implementing relevant measures. 5. Following up to see if the measures have fixed the problem. 6. Creating further measures if necessary.
157. Name two of the methods for status reports and briefly explain them. 1. Milestone chart – Compares the planned milestones with the outcome of reality. You see if a planned milestone was executed before or after the schedule. Milestones does not however, provide any information about resource usage. 2. Burndown Charts – You check of tasks performed and ongoing work on a daily basis. It is not unusual for the sprint log to grow during a sprint. It is important that you have a margin for the change.
156. What does RACI stand for?
155. Which activities should be performed during execution? - Communicating and reporting - Following up and comparing results with schedules and charts. - Following up and comparing resources and costs with budget. - Analyzing consequences. - Handing changes. - Following up contracts and resources.
154. Describe three different conflict management styles and their strengths and weaknesses.
153. Which are the steps of Maslow’s hierarchy of needs? What is the logic behind the different levels? 1. Basic needs – Needs necessary for survival 2. Need of safety 3. Need of love and belonging 4. Need of esteem 5. Need of self-actualization You need to fulfil the steps from low-to-high. If you’re basic needs are not fulfilled, you cannot fulfil your physiological needs or social needs.
152. Fill in the following table
151. What is situational leadership according to Hersey? Explain A situational leader is anybody anywhere who recognizes that influencing behavior is not an event, but a process. Situational leadership is a flexible tool that can help leaders of every kind (superiors, sales, reps etc.) to influence others more effectively. Situational leaders quickly learn to analyze situations. They adapt their leadership and communicate it in an efficient way, help individuals evolve and understand and can handle changes in both behavior and performance. According to this model, there is no optimal leadership style for influencing others. Which leadership style a leader should use depends on the capacity and willingness of group members.
150. What is the Pygmalion effect and how can this be put to use in a project setting? If a manager believe that you will perform good and show that you believe in the individual, the individual will most likely perform better. Attention goes a long way!
149. McGregor says that the leader gets the employees that he/she deserves, explain why? If you do not delegate responsibility and authority, nothing will get done without detailed governance and control. If a manager shows confidence in the capacity of the employees, they will go to great lengths to avoid disappointing the manager.
148. What is theory X and Y? Theory X: Most people harbor reluctance toward work and responsibility, meaning they must be managed and controlled. If management does not step in, individuals will be passive or even counteract the goals of the project and needs of the company. Threats of punishment and promises of rewards are considered to be effective methods in getting the job done. The management feels that employees do not want to work  the manager is authoritarian  makes decisions alone (direct governance)  you only do what you are asked to do. Low productivity  the management feels that employees do not want to work  Theory Y: It is natural for a person to make an effort – we want responsibilities and accolades. Management is in charge of providing and organizing the resources needed to achieve goals. Individuals are assets and management should strive to ensure that the goals of the company and individuals match. The manager has confidence in the employees  the manager informs and delegates  and makes the decisions together with employees (goal orientation)  employees is increased  the manager ha
147. Tom Peters have coined the phrase “leadership is attention” what does he mean by that? Being noticed is a basic human need. Few methods are as effective for breaking someone as ignoring them. Some managers have the ability to consciously or subconsciously offend certain employees by not seeing them. People are social beings and we want to be appreciated for who we are and what we do. The significance of being appreciated cannot be over-emphasized. The positive feeling of being seen can decrease and the final effect can even be the opposite, if a person feels controlled. A project manager who has to check what a co-worker does also reveals lacking faith. Being controlled is associated with lacking trust and confidence. Being seen is not enough – we also need to feel needed and be acknowledged for what we do. Otherwise, it is easy to become disheartened and lose commitment, which affect the results.
146. What are the similarities and differences between being a manager and being a project manager? Similarities: Vision & Goals, Prioritizing & Questioning, resolving conflicts & problems and Helping employees grow. Differences: Superior/Manager = Long term, line management responsibility (HR) and focus on business Project Manager = Short term, goal and delivery responsibility and focus on the project.
145. How is our decision-making affected by different levels of stress? When you become stressed, the ability to be objective and smart decreases. This can be illustrated by the stress funnel. - Green zone: normal situation, time for openness and sensitivity, reflecting. - Yellow zone: Focus on the task, “in the zone”. - Red zone: limited thinking. Cannot access the entire intellect, one-track mind, less intelligent behavior, frustrated, high stress-level. (Stress-funnel, page 269).
144. What is self-leadership? What two dimensions are to be balanced? Have a clear goal and knowing your priorities are two necessary prerequisites to efficient work. This is true both at work and in your private life. Without clear goals and knowledge of what is important, it is easy to feel negative stress and eternal sense of not having time for anything. Without clear goals, the risk is that you will work more than necessary. Make sure to have a good balance between what must be done within the framework of the project and other commitments. We prioritize tasks given by others ahead of what we feel must be done. Self-leadership is about having clear goals and knowing your priorities. This is important both for the work and private life and they need to be balanced. No one can work 24/7. It is important to make time for your hobbies, family and friends.
143. What are the important aspects when receiving feedbacks? In receiving feedback, it is important to truly listen to what is being said. If you become defensive or try to excuse your behavior, you can never learn. It also shows a lack of respect for the other person and his or her feelings in regards to his or her experiences. Try to interpret what you hear, in order to understand it, before you act. It is good to review what you have heard by summarizing it in your own words and if it is necessary, ask for clarification. Then you can respond to the feedback given.
142. What are the important aspects when giving feedback? When you give feedback, you must make it possible for the other party to understand what you are saying. Replace a culture of judgement with responsible feedback. You focus on the behaviour, not someone’s personality. It is important to be specific and only describe what you have experienced yourself. If asked, you can give suggestions on what the person can do differently. It is good to give feedback gradually, and give the recipient the chance to comment. Positive feedback can be given in front of a group, but constructive criticism should be given in private. Focus on what is important and can be influenced or changed.
141. If others know things about yourself what you are not aware about, what happens from a Johari window perspective? The blind spot increases.
140. If you tell someone something that you have previously hidden, what happens from a Johari perspective? By presenting your options and feelings and giving feedback, the façade shrinks. The group finds out where I stand and does not have to ask.
139. Draw and explain the Johari window
138. What are the four components of self-awareness - Know who I am. - I know how others think of me. - I know how others are affected by my behavior. - I know how I am affected by the behavior of others.
137. What is the purpose of a kick-off? What actions affect the purpose? To get support for the purpose and goals of the project among project participants, as well as other important stakeholders. A kick-off is an excellent occasion to delegate tasks and create team spirit, but also to build a common view on how the project is to be executed. A kick-off meeting should preferably be held outside the company’s office, because the daily grind at the office is almost allowed to take precedence over project meetings.
136. What is organizational culture and how does it affect a project? Organizational culture is a summary term for the dominating values, attitudes and behavioral norms within an organization. As a project manager it is important to be aware of the unwritten rules of the organization that affects what gets done and what governs decision making. What is perceived by the individual to be rewarding will be done.
135. What phases are there in group development? What happens in each phase? 1. Affiliation and Security – Members are dependent on the project leader. They are concerned about security and strive to be accepted into the group. They want and need structure and expect the project manager to take charge and make decisions. 2. Opposition and Conflict – The group wants to break free from its dependence of the leader. Different opinions cause tensions and leads to conflict 3. Trust and Structure – The group have managed to overcome its conflicts and have more open communication. The commitment and willingness to collaborate increases. 4. Work and Productivity – The group has become a high-performing, high-efficiency team. The focus is on how to perform activities and achieve goals. It is fun to work together.
134. What is MBTI? A map of accustomed patterns assessed using four indicators. You are either extrovert or introvert, taking in your surroundings through your intuition, interpreting them analytically or emotionally and relating to them through judging or perception. The four indicators are combined into four different types, named as a combination of four letters. MBTI is the most common personality test.
133. What are the four dimensions of DISC? Describe each dimension? The disc model identifies our four primary behavioral dimensions – dominance, influence, stability and compliance. A DISC test measures our natural, subconscious behavioral style – or basic behavior – and the conscious, adapted style that we apply to the situation and surroundings we find ourselves in. - Dominance: When and results are most important. Makes decisions and ensure that the project is in time and within budget. - Influence: Who and communications are the most important. Present ideas. - Stability: Why and relationships are most important. Focus on collaboration and atmosphere in the group. - Compliance: How and structures are most important. A specialist, usually in a narrow field. Makes sure the group fulfills its obligations correctly.
132. According to Tonnquist (2016) quality management consists of quality planning, quality assurance and quality audit. • Quality planning – Determine what quality standard the project should adhere to, how follow-ups are done, how changes are handled or if external quality assurers are used. • Quality assurance – Is a way of preventing mistakes in manufactured products or avoiding problems when delivering solutions or services to customers • Quality audit – About 20 percent of all events that occur contributes with about 80 percent of the outcome. It is called the 20/80 rule or Pareto principle.
131. What is the Japanese quality philosophy? Quality systems in the Western world have traditionally focuses on measuring and correcting, while the Japanese philosophy has focused on building quality into the product and processes from the very beginning. In Japan, quality is integrated in the operations to create competitive advantages. The fact that customers do not ask for higher quality is no reason to feel satisfied. Per the Japanese philosophy, you should teach your customers to ask for better goods and services. This forces companies to stay at the cutting edge and streamline operations, which is beneficial for the competitive power and saves resources. A company or organization is nothing without its employees. It is cheaper to create a positive attitude toward and knowledge of the importance of quality than to set goals and develop measures. If you focus on the people in the organization, you can create self-regulating systems that do not need to be maintained. The entire organization must be involved; everyone should know what must be done within their field of responsibility. If you are committed and determined to
130. Give four examples of risk response strategies. Explain each of them. - Avoid risks; change the project plan to eliminate the risk or protect the project from the effect of the risk. - Transfer risks: shift the risk to a third party such as an insurance company. - Reduce risks: Better the effect of an identified risk by implementing actions that decrease the likelihood and/or consequences of the risk. - Accept risks: no changes are made to the project plan following risk identification.
129. There are many risks that can be identified in risk planning, and it is often not possible to act upon all of them. What strategy should then be used to choose between risks? Explain. If you have many risks identified, it can be useful to use categorization. This can be done in several ways, like for instance based on risk level.
128. What is risk response planning? Once the risks have been identified, an action plan with strategies for realizing possibilities and handling risks. The opportunities that give the best results and the risk events that affect the project most should have the highest priority. Remember that responses cost money. Ensure there is a margin in the budget for this. When a risk action has been approved and implemented, the evaluation of the risk should be updated. In order to assess which risks should be acted upon and how, categorization can be helpful. Categorization can be done in various ways, for instance based on risk level. A risk exceeding a certain level should be acted upon. Categorization can also be based on how emergent the need is to act upon a risk or based on the prioritized governing parameter. An action should be: • Adequate for the risk level • Timely • Accepted and approved • Cost-effective • Realistic • Performed by a designated person
127. Once risks have been identified, what is the next step to be done in the planning? Risk response planning. The project manager determines which level of risk value should need an action and which he can live with. It is however the project owner who have the ultimate responsibility to determine what should be done based on the results of the risk analysis. For each measure that is to be performed, a person should be designated as responsible and it should be determined when the risk action must be performed.
126. Explain the difference between the mini-risk method and the maxi risk method The qualitative and quantitative risk analysis deals with the profitability of a risk event actually happening, and the consequence this will have on the project. The mini-risk method is a simple tool to use. Both profitability and consequences are evaluated and rated on a scale from one to five, where one is lowest and five the highest. The risk value is calculated by multiplying “likelihood” by “consequence”. The project manager determines which level of risk value should occasion an action and which risks he or she can live with. It is the project owner who has the ultimate responsibility for determining what should be done based on the results of the risk analysis. For each measure that is to be performed, a person should be designated as responsible and it should be determined when the risk action must be performed. Another way to visualize the risk level of the project is to put the risks in a matrix, where the axes are likelihood and consequence, respectively. The number indicate the risk values. Risks in the upper right hand corner of the matrix are to be handled with ris
125. Tonnquist (2016) gives four examples of risk categories. Name the categories and briefly explain them. - Risks related to technology, quality and execution – untested technology, unrealistic goals, switching technical platform. - Risks related to project management – poor allocation of time and resources, poor plan quality, poor management of the project group. - Organizational risks – a lack of prioritizing, unclear financing and resource collisions with other projects. - External risks – amended laws and regulations, labour conflicts, changes in ownership, national risks and weather.
124. Briefly explain the process of risk identification. Through risk identification, possible risk events are found. A risk is a single event that can affect the project in a negative direction. Brainstorming is a good method for identifying risk events. Usually, the project group performs this activity, guided by the project manager. It is recommended to enlist the help of external experts. Through risk identification, possible risk events are found. A risk event is a single event that can affect the project in a negative direction. Risk identification is an interactive process that begins at the idea stage. During the pre-study, the situational analysis can be seen as a first risk analysis. You should use as many sources as possible to identify risks.
123. Tonnquist (2016) distinguish risk from uncertainty. Briefly explain the difference. Risks: a risk is a binary, uncertain event with an uncertain consequence, which makes the outcome hard to predict exactly. Will it occur, when and with what consequences? Uncertainties: Unlike risks, uncertainties relate to known events that have different outcomes depending on internal and external circumstances. Uncertainty is usually evaluated with Lichtenberg’s method or PERT (Program evaluation and Review technique), which are both based on previous experience.
122. You are planning a project with 2 different course of action. Course of action A has a 20% probability of yielding revenue of €200 000 and a 80% probability of yielding losses of €40 000. Course of action B is estimated to yield revenue of €40 000, with 40% likelihood, of losses of €10 000 with 60% likelihood. What is the expected value for course of action A? What is the expected value for course of action B? Action A: EMV = 0,2 * 200 000 - 0,8 * 40 000 = 8 000 Action B: EMV = 0,4 * 40 000 - 0,6 * 10 000 = 10 000
121. What is the internal rate of return method and how can it be used? The internal rate of return method is based on determining the interest rate at which the next present value of the investment project is zero. The interest rate is called the internal interest rate of the investment and reveals the annual ROI or yield that the investment options give on the invested capital.
120. What is the net presented value method and how can it be used? The net present value method is a method for estimating investments, taking into account payments and expenditures that occur at different time points. Through discounting, payment streams are moved in time. In projects with long run times, it is often necessary to determine reference points for comparing payment in one year’s time. Not only do you lose the revenue from alternative replacements, money also depreciates in value because of inflation.
119. What is the pay-back method and how can it be used? - With the pay-back method, you estimate the time that passes before an investment or a project has earned back the capital invested. This time is called the pay-back time. - In ranking several profitable projects, the most profitable one is the one with the shortest Pay-back time.
117. Calculate the estimated average value of the following project: The estimate for a project shows that an activity will cost €1 800. Usually the price is €1 700, but it has sometimes been €1 500 and in some cases €2 000. Cexpected = (2000 + 3x1800 + 1500)/5 = 1780
116. What are the values of Clikely, Cmax, Cmin based on The values of Clikely, Cmax and Cmin are based on experience from similar projects, or estimates from groups with members having different ideas of the final costs.
115. Fill in the following table based on Lichtenberg’s method: - Cost estimation of uncertainty How can it be calculated? S = - Estimated average value = Cexpected = - Estimated maximum value = - Estimated minimum value = - Estimated likely value = - Cost estimation of uncertainty How can it be calculated? S = (Cmax - Cmin)/5 - Estimated average value = Cexpected = (Cmax + 3Clikely + Cmin)/5 - Estimated maximum value = Cmax - Estimated minimum value = Cmin - Estimated likely value = Clikely
114. How can a resource histogram be used during execution? The advanced estimate should be made based on accrual-basis accounting and presented in a table or graphically, in a chart to be used during execution.
113. What is a resource histogram and how can it be used during planning? The resource histogram provide an overview of the distribution of project costs over time. Period when the project uses a lot of resources are also periods when large costs appear. The cost graph usually follows the ups and downs of the resource histogram.
112. How is the cost for an agile project calculated? S + P - S = Number of sprints. - P = cost for time spent by project owner.
111. How is the cost for a scrum team calculated? D x N x C - D = Sprint duration. - N = Number of developers. - C = cost/day per developer.
110. Why is the activity plan useful when estimating costs? Explain. It makes it easier to see if the cost for an activity changes if you have connected the resources and cost of each resource to the activity.
109. How is the financial result calculated? Revenue – Cost = financial result.
108. How is the contribution margin calculated? Income – expenditure = contribution.
107. What is a specific cost? The cost that arises through execution of the project.
106. What is a specific revenue? The revenue that arises through execution of the project.
105. What is a contribution estimate and why is it useful? Contribution estimate: is based on project being burdened only with the costs that arise if the project is performed, so called specific costs. The general overhead, joint costs, are already taken by other projects and not affected by the execution or non-execution of the project. The contribution estimate is useful in prioritizing between different courses of action. The alternative that gives the largest contribution margin should be chosen
104. Why does the project triangle play a big role when planning costs? Explain. It is not enough to prioritize and select requirements based on the value created, without taking into account how many resources they require and what they cost. You cannot always afford the “best” solution, and have to make a compromise between Quality, Time and Cost. On the other hand, it is pointless to deliver on time and budget if the solution does not work. It is in connection with estimation that you can determine if the budget is sufficient to cover the requirements and activities defined and prioritized during planning.
103. What is a self-costing estimate? Self-costing estimate is based on the idea that the project should bear all its own costs, both those directly attributable to the project and a reasonable share of the company’s overhead, the indirect cost.
102. What is the difference between direct and indirect costs? The costs can be direct or indirect i.e. connected to a certain activity or constitute part of the joint costs within the operations.
101. What are the two strategies to estimate costs during the planning phase of a project? Explain. - Top down: a rough estimate of costs by comparison with similar projects already executed. - Bottom up: Detailed calculation based on a careful analysis of each activity in the project.
100. What is the lifecycle cost? Refers to all costs arising during all phases of a product lifecycle, including phase-out and scrapping, for instance if a factory will be closed down. If the life cycle is long, you must take the value of revenue streams into account.
99. What is the difference between project costs and product costs? Project costs are costs for the resources in the project, parts of the project’s costs are from purchased goods and services consumed in project, costs for prototypes and pilot series production are usually included in project costs. The product costs are related to materials needed to produce the product i.e. the result of the project.
98. What are the different basic phases of negotiation process? Describe them. 1. Planning: You can gain from drawing up a negotiation envelope, to identify the conditions on your side and the other sided, ahead of striking the deal. Prepare three goals: an opening offer (on the verge to unrealistic), a likely goal and the lowest number you can accept (the pain threshold). 2. Information exchange: Execution is usually initiated with a social phase – information exchange, where you establish contact with the other party and create a social climate that facilitates the task of finding good solutions to the object under negotiation. In this situation, you also send out signals regarding your position and possibilities. During information exchange, the ability to listen and communicate is vital. The most important commodity in a negotiation is information. 3. Bargaining: During bargaining a negotiation moves on to a more concrete stage. More information comes to light and we can be more concrete. 4. Closure: you decide upon a solution. It is important to be detailed enough that no loose threads are left hanging which can lead to later conflicts. IT is important
97. What are the 5 questions that should be answered ahead of procurement. - Whether procurement should be performed? - What is to be procured? - How will the procurement be performed? - When will procurement be performed? - Who is the supplier?
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