Exam questions Flashcards

1
Q

List and describe five differences between projects and business as usual

A

Projects are unique/business as usual (BAU) is repetitive
Projects deliver products/BAU uses products
Projects are more risky than BAU
Projects need their time managing/BAU optimises time
Projects need costs managing/BAU optimises cost

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2
Q

Explain five distinct benefits to be gained from managing groups of projects as a programme rather than as individual, unconnected initiatives.

A

Better prioritisation of projects in line with overall business strategy
Improved resource management and utilisation
More holistic risk management.
Increased consistency in application of project management processes
Increased shared learning across the projects within the programme

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3
Q

List and describe five responsibilities of a programme manager throughout the programme lifecycle

A

Delivery of the programme outcome/capability
Initiation and termination of projects in the programme
Managing key processes at programme level (e.g. risk, issues, changes etc)
Act as project(s) sponsor
Coordination of the projects

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4
Q

Explain five benefits of portfolio management.

A

Managing the portfolio ensures that all of the project and programmes within it are aligned with the strategic aims and objectives of the organisation

Managing the portfolio ensures that there is better resource management across the organisation

Portfolio management can also provide an overall view of the risks that the organisation is exposed to.

Portfolio management ensures that existing projects and programmes continue to contribute to the aims and objectives of the organisation

Portfolio management ensures that the organisation can monitor through the ‘big picture’ how well it is achieving its aims and objectives and add projects and programmes where necessary.

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5
Q

Explain the term project context

A

Project context describes the broader environment (external to the project) in which the project exists. Projects do not operate in isolation to the world around them and external factors/influences such as economics, technology, sociology, legal, environment and politics make up its context. These factors can often affect its success much more then internal issues. I

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6
Q

four examples of project context

A
Political
economical
sociological
technological
legislative
environmental
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7
Q

List and describe five responsibilities of a project sponsor throughout the project lifecycle

A

Owner of the business case
Appointing and supporting the project manager
Key decision maker
Authorises project through its gates
Authorises project closure and reviews the benefits

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8
Q

List and describe five responsibilities of a Project Office

A
Support the project manager
Manage lessons learned
Owner of project methodology
Provides professional development of project personnel
Manage project management resources
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9
Q

List five typical success factors and describe why each one is important

A
Effective sponsorship
Effective communication
The right resources
Motivated team
Clear aims and objectives
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10
Q

Explain five uses of project success criteria and/or key performance indicators (KPIs) during the lifetime of a project

A
Clear success targets at the start
monitoring project progress
Focus of detailed planning
Assessing success at the end.
Change impact assessments
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11
Q

Explain five elements of a stakeholder analysis process.

A

Identify the stakeholders(all must be identified)
Gather information( to understand attitudes towards the project)
Analyse and map.
Develop a strategy.( create a communications plan)
Implement the strategy ( deliver information from communications plan)

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12
Q

List and describe five policies which may be mentioned in a Project Management Plan

A

information management policy
HSE policy
HR policy, (impact on project on training recruitment, clearances)
Procurement policy (required suppliers, tendering,sourcing of good, labour)
Quality policy

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13
Q

Explain five fundamental components of a Project Management Plan

A

What? - a clear statement of the project’s requirements and objectives as well as the scope of delivery, It is important that there is also a link to the business case The scope of the project will be developed and documented using diagrams such as a Product and/or Work Breakdown Structures

When? -The schedule answers this question by showing the various activities, milestones and deliverable against time – usually in the form of a Gantt chart.

How? – This is probably the largest section in the PMP and covers many specific subjects. An example of this would be the Project Quality Plan. This would typically describe how the customer’s quality expectations would be delivered. It might cover things such as standards to be used, roles and responsibilities, acceptance criteria and testing methods. Other subjects in this section might be Change Control, Health and Safety, Information Management.

Who? – It is important that the project management team is clearly documented and this section should show the team structure and how each role relates to the others. In addition, this section should also document the specific responsibilities of each of the identified roles in the team. This provides clarity and is the basis for individual commitment to the project.

How Much? – It is vital that the project budget is documented and the costs controlled as they form a key success criteria in most projects. This section would include such things as the estimates – Resources, Quantity & Cost (Consideration of the ‘class’ of estimate e.g. accuracy tolerance), Contingency amounts and how contingency will be released and managed, estimate phasing – commitment profiles, cash flow profiles and earned value projections.

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14
Q

List five plans normally in a Project Management Plan and describe their purpose

A

The procurement plan is used to describe how the goods and services required by the project will be obtained. It describes the type of solution ( joint venture, make, buy etc.), the number and source of suppliers, the types of contract to be used, supplier relationship (prime contract, partnering etc.), the way suppliers be engaged (i.e. competitive tendering, single source) and the type of pricing/payment.

The risk management plan is used to show what risk management process is to followed throughout the project and will say who in the team is responsible for its various aspects. It will show how risks are to be scored, risk thresholds/tolerances, tools such as the format and use of the risk register and risk reporting requirements.

The quality plan is used to ensure that the customers quality expectations and acceptance criteria and processes to achieve them are understood and documented. It will describe any standards required, quality assurance and control activities and the roles and responsibilities of the team. The plan will also describe documentation and reporting requirements related to quality.

The information management plan describes how information will be managed through the life of the project and cover how, where and for how long information will be stored, levels of security required, archiving requirements and final destruction rules. It will also describe any tools and techniques that must be used together with the roles and responsibilities relating to information management.

The HSE plan describes how health and safety and environmental aspects of the project will be managed through the lifecycle and covers aspects such as policies and standards, and, required training of team members (such as working on site), It will describe any organisational interfaces and who is responsible for safety activities.

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15
Q

List and describe five ways of identifying project risks.

A

Brainstorming. A diverse group of people connected with the project are gathered together in a meeting to collectively suggest or ‘brainstorm’ a wide range of risks from their individual point of view and experience. The brainstorm will normally be structured using a series of risk areas and led by an experienced facilitator. The aim to get a wide range of risks and not to analyse them in any depth as this will be done later. This is a very creative forum for collecting risks.

Interviews. A more targeted way of identifying risks is to hold structured interviews with relevant stakeholders. They range from an informal discussion to a structured time bound interview with a set of pre-agreed questions. The interview has the advantage of being personal and can identify risks which individuals may be reluctant to suggest in a more open forum.

Checklists. This use a set series of statements or questions that an individual or a group can work their way through ticking of the ‘checks’ as they go after identifying any risks associated or suggested by the ‘check’ statement. For example: ‘does the project have any novel technology? ‘If yes what are the risks?’

Lessons Learned. This is a rich source of identifying risks. The past has a habit of repeating itself and seeing what risks were identified in previous projects and what issues occurred can help in populating a new risk register. The cause of the lesson and not just the effect should be considered so that risks can be fully understood and not just copied.

Questionnaires. These are similar to interviews but are remote and can be sent out to a wide range a stakeholders. The questions need to be carefully crafted and must be unambiguous and the responses collected and analysed so that the concerns of the responders and the associated risks can be understood

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16
Q

Explain what quality activities will be particularly relevant within a project life cycle, making five relevant points.

A

Quality planning is essential in the concept phase of a project in order to understand and document the customers quality expectations (CQE’s). This sets the scene for the rest of the project where products will be delivered against these established quality expectations. An example of this would be a customer expecting a conference to be run that appeals to an international market and attracts both high quality speakers and delegates. If this is not done, the next phase will have no aim or focus and may plan to deliver something the customer does not want.
Quality must be planned further in the definition phase. Here the CQE’s are developed and refined. Acceptance criteria must be added to ensure that they are both measureable and achievable. These acceptance criteria will be the basis for customer acceptance at the end of the project. Am example is that the conference venue must be 4 star or above and be within 20 miles of an international airport.

Quality control must be applied throughout the implementation phase of the project. The completed products must be tested and signed-off progressively to ensure confidence from the stakeholders and the team. At the end of each stage within the implementation phase the quality results should be reviewed to ensure that it is safe to proceed into the next stage and that any problems or trends can be addressed accordingly.

Quality assurance must be performed throughout the lifecycle to ensure that the project is following and complying with both its own plans and corporate standards and policy. This function will be carried out by a quality assurance team who will act independently from the project team. This ensures that the organisation maintains its integrity quality wise. Quality assurance activities may involve the use of project audits.

Final sign-off and acceptance of the project’s outputs is crucial and this will be completed in accordance with the quality plan. Sign-off and acceptance may be performed by both the users and the customer/sponsor. Quality records will be collated and stored to ensure that there is appropriate traceability should there be any quality issues in te future.

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17
Q

Explain the importance of robust requirements and describe four steps in the process

A

Following robust requirement management
process gives confidence to the stakeholders that their requirements are understood and their needs and expectations will be met within the final product. Requirements management is a key process that should be carried out at the early stages of the project life cycle (definition stage) in order to avoid expensive changes at later stages of the project. For example, project requirements for sewage project will be in accordance with the end user specifications and design guides.

Requirements capture is the first step in the requirements management process. During that
stage, efforts are exerted to collect information about stakeholders’ requirements either through meetings with their representatives, retrieving information from
previous similar projects, doing surveys, collecting latest specifications, design guide lines and regulations. That is important in order to avoid
being surprised at the end of the project by one or more ignored requirements that require very exhausting changes to accommodate. For example, 15m deep sewage pipeline is proposed while end users specification limit the maximum depth
to only 10 meters.

Requirements analysis / Evaluation is the second step in requirements management process. It includes analysis and evaluation of the collected requirements according to their value in the market, time required for their achievement (i.e. deadlines) and the procedures that will be followed for their achievement. That process is important as it allows narrowing down the list of requirements captured during the capture stage. For example, deadline is determined for the completion of the access roads to the sports city since Olympic Games will take place there.

Requirements justification /prioritisation is the key stage in the requirements management process. It includes categorising the requirements to Must be available (i.e. product cannot be delivered without them), Should be available (i.e. important for project delivery, but can be temporarily compensated for), Could be available (i.e. product can be released without them, and they will follow), without (i.e. products shall go without them, since these are not required). That prioritisation is important as it clarifies / gives understanding to the flexibility in meeting the requirements. For example, new mobile phone could be launched to market, and followed by the update of the software once it is completed.

Requirements Documentation is the final stage in the requirements management process. During this phase requirements are listed and agreed with stakeholders. PM will then clearly identify project requirements in the PMP and will incorporate them to define the scope of works. PM will get these approved by the project Sponsor, once approved these will the baseline requirements and will not be further changed without
applying formal change request. That is important to secure the base lines for the project and protect the project from scope creep. For example, stakeholders changed the specifications during the middle stages of the project and request incorporating the changes to the project which will have impact on the cost and time for completing the works.

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18
Q

Explain the overall aim of the Health and Safety at Work Act (HSWA) 1974. (10 marks)

A

The aim of the Health and Safety at Work (HSWA) is to make provision for securing the health, safety and welfare of persons at work and for protecting others against risks to health or safety in connection with the activities of persons at work. It also covers the controlling, the keeping and use of dangerous substances, and for controlling certain emissions into the atmosphere. One example of this is that manufacturers must ensure that the products they design and construct are safe when being used, maintained and being disposed of. The Act ensures that both employers and employees understand their responsibilities regarding health and safety.

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19
Q

Explain four specific duties of employers or employees regarding (HSWA).

A
  1. Employees must take reasonable care for their own safety and that of others who may be affected by their actions or omissions at work. Breaches of this duty could include things such as removing machinery guards, taking short cuts through hazardous environments, not checking equipment is safe before giving it to others and acting in a foolish and reckless manner and endangering the safety of others including those outside of the workplace. Everyone is responsible and this cannot be abdicated.

Employees must comply and cooperate with the duties and requirements imposed on them by the employer regarding the Act so that they can be performed accordingly. There will be many rules and regulations put in place by the employer to keep everyone safe and it is a duty of the employee to follow these. An example of this is where the employer had stipulated that personal protective equipment must be worn such as hard hats and steel toe capped footwear in specific environments. Failure to comply will put people in jeopardy and may encourage others to ‘break the rules’.

Employers must provide plant and systems of work that are as far as reasonably practicable, safe and without risk to health. This would include things such as electrical equipment that has been tested and certified as safe, machines with effective guards in place and processes that have been hazard assessed and tested. Employees rely on the equipment given to them and the procedures they must follow to do their job, but if these are unsafe in any way, injury and even death can and sometimes does result.

Employers must as far as is reasonably practicable, ensure that any place of work under their control is maintained in a condition that is safe and without risk to health. This includes the provision and maintenance of means of access and egress that are safe and without risks. Examples of this would include clearly marked exit (normal and emergency) routes that are free from obstruction and ladders/lifts to less accessible workplaces (such as cranes) that are in good and safe working order.

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20
Q

List and describe five different pieces of HSE legislation

A

The Health and Safety at Work (HSWA) makes provision for securing the health, safety and welfare of persons at work and for protecting others against risks to health or safety in connection with the activities of persons at work. Employers must provide plant and systems of work that are as far as reasonably practicable, safe and without risk to health. Employees must take reasonable care for their own safety and that of others who may be affected by their actions must comply and cooperate with the duties and requirements imposed on them by the employer regarding the Act.

Control of Substances Hazardous to Health Regulations is the law that requires employers to control substances that are hazardous to health. It is designed to prevent or reduce workersexposure to hazardous substances by risk assessment, control of exposure, health surveillance and incident planning.

The Manual Handling Operations Regulations set specific legal requirements to ensure that employees undertaking manual handling operations at work avoid the risk of injury. They specify all factors employers must consider if they employ manual workers. These include whether manual tasks involve awkward movements, moving loads over long distances, holding goods that are difficult to grasp and the capabilities of the worker.

The Personal Protective Equipment at Work Regulations place a duty on every employer to ensure that suitable personal protective equipment is provided to employees who may be exposed to a risk to their health or safety while at work. They cover such things as hard hats, eye protection, safety harnesses, life jackets and safety footwear.

Reporting of injuries, Diseases and dangerous Occurrences Regulations require “responsible persons” to report deaths at work, major injuries caused by accidents at work, injuries to persons not at work that require hospital treatment, injuries arising from accidents in hospitals, and dangerous occurrences. The employer, must keep records of reportable incidents and diseases, and other matters specified by the HSE to demonstrate compliance.

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21
Q

Explain the purpose of a Work Breakdown Structure making three relevant points.

A
  1. To primarily develop and document the scope of a project in terms of its activities. This is in the form of a hierarchical breakdown that allows activities to be grouped together appropriately so that all of the work/activity is understood before commencement. It ensures that nothing is forgotten or omitted.

To facilitate the allocation of work to teams and individuals. The WBS framework can be combined with the team organisational breakdown structure to produce a responsibility assignment matrix showing who will do which activity. This makes it clear who is responsible for each task avoiding confusion and wasted work.

To facilitate estimating. Because the WBS breaks down the overall project into individual elements or packages of work, estimates of time, cost and effort can allocated to those elements. These can then be progressively summated at each level to provide an overall project estimate.

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22
Q

List and describe five steps in the preparation of a schedule for a large and complex project. Include in your answer how you would continue to maintain the schedule after the start of the project.

A
Develop scope
Create network diagram
Estimate durations of tasks
Produce schedule
Refine schedule and baseline

The first task is to develop the scope of the project in terms of both its products and its activities. A product and/or work breakdown structure (PBS/WBS) is often used to do this breaking the project down into groups of products and then into tasks. This provides a visible description of the scope and will assist in ensuring that nothing has been omitted.

The next step is to structure the tasks at the lower level of the WBS into a logical network diagram which shows the ‘flow’ of the work and the dependencies between them. This will allow the critical path the be calculated and float understood. This step needs to be performed in conjunction with the following step.

The duration of each task in the network diagram (above) needs to be estimated in order for it to progressed to the next step. The addition of all of the task durations on the critical path allows the overall duration to be calculated. It may be useful at this stage to try modelling a number of variations on the estimates to see the effect on the overall duration, the critical path and the float.

The network can now be drawn to scale to produce the schedule or gantt chart. This shows the start and end of each task to scale and is useful for presentation. Resources will need to be added to the schedule to make it meaningful and be the basis for commitment to the project from the resource providers. A histogram can be produced to show the levels of resources required.

The resourced schedule will now need to be smoothed or levelled to ensure that it is achievable and the level of resources are optimised. This may involve moving activities within their float and extending the overall duration where possible. Once the optimum schedule is produced it must be agreed by the relevant authorities and baselined. From this point on the schedule must be maintained and updated. This will involve adding actual start and finish dates to planned activities, adding progress to date and adjusting the remaining tasks to show the anticipated outcome. The plan should be treated as a configuration item and subject to version control.

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23
Q

Explain five items that must be documented and/or reported on a project in order to implement budget and cost control

A

The overall project budget. This will be documented in the business case and the project management plan and is the organisations expectations for the total project cost. The budget, incorporating contingencies, forms the baseline for the project and must be reported on regularly throughout the lifecycle. This is vital as it provides the organisation with the confidence that the project will come in on budget or be the basis for an early warning that is will not meet expectations.

Actual costs must be documented and reported on so that they can be compared the planned costs both at project and stage level . From this comparison variances can be calculated to show what has actually happened against what was expected. This will allow trends to be understood and expected outcome to be calculated with appropriate action taken when necessary.

Contingency/management reserve is the monies put aside for uncertainty when the project was estimated. Things rarely go to plan and it is important that this reserve is documented along with the conditions for its use in the project so that it is not used for inappropriate purposes such as enhancing quality or extending the scope of the project. It is important that use of reserve is documented and remaining amounts understood so that future decisions are informed.

Change budget. This is set aside to pay for approved change in the project. Controlling change and use of the budget is a key part of cost control as uncontrolled change will threaten the budget set and agreed. All changes must go through formal change control and the amount of change and associated costs must be documented and reported to the sponsor/project board. This ensures that the total cost of accumulated change is always understood and the remaining change budget clear.

Cash flow. As part of budgeting, the timing of monies in to and out of the project must be documented so that the sponsoring organisation can ensure that it can afford to support the project at any point in time. This will include the timing of stage payments, the cost of each phase/stage of the project and any revenue into the project. This cash flow ‘plan’ must be reported on along with any variances so that action can be taken as required. Lack of cash can be disastrous for an organisation (and projects) and therefore must be management rigorously.

24
Q

Explain five features of a change control process

A

A formal entry point. All change requests should be submitted and captured ideally using a change request form. Each change should then be formally logged in a change log for the whole project. This ensures that changes do not occur without going through a formal agreed process i.e. in an uncontrolled manner and without the project manager’s knowledge which can otherwise lead to scope creep.

A mechanism for assessing change requests. All change requests should be assessed for the scope of the change along with their impact on the project to allow a decision to be made on whether to implement them or not. E.g. consider impact on time, costs, quality, benefits, and work already done. Assessment should include prioritising to decide whether the change is essential, important or merely nice to have. This activity will ensure that the full implications of changes are understood before implementing them

An agreed change authority. The project manager should escalate the assessed change request along with options and recommendations to a formally appointed change authority. In many cases this will be the sponsor. This ensures that decisions about change which will often increase the scope, time and cost of the project are understood and ‘owned’ at the appropriate level of management. The change authority will accept, defer or reject a proposed change. The change log must be updated following a decision.

A means and recording and tracking change. All change requests should be logged into a change register / log which should be updated as the change request progresses through the process. The change register should record all aspects of the change including the person who raised it, date of request, status, impact and the decision taken. This will support formal processing, expediting and provides a clear audit trail.

A baseline defining the current state from which any change is assessed against. Change control cannot be enacted without an established and agreed state against which the change can be assessed and made. Version 1.0 becomes version v1.1 and so on with each state of change that is approved. Without this there will be confusion regarding which is the latest version following a change. This is described more fully by configuration management but is an essential element of a change control process. Typical baseline documents for example may be the Project Management Plan, Business Case and Requirements Specification.

25
Q

List and describe two causes of scope creep or requirements creep

A

If the project is poorly defined in terms of its requirements, deadlines or quality then the scope will change over and above what was originally envisaged and budgeted for. If the requirements are ambiguous or open to interpretation and there is a wide range of stakeholders who cannot agree then the scope will ‘creep’ up over the life of the project.

If change is allowed to happen without a robust change control process being in place and the discipline in the organisation or team to enforce it then changes will ‘creep’ into the project without the full impact being understood. These many changes will accumulate through the life of the project causing an increase in scope leading to a negative impact on the overall cost and timescales.

26
Q

Explain three ways in which change control can prevent scope creep or requirements creep

A
  1. A formal entry point. All change requests should be submitted and captured ideally using a change request form. Each change should then be formally logged in a change log for the whole project. This ensures that changes do not occur without going through a formal agreed process i.e. in an uncontrolled manner and without the project manager’s knowledge which can otherwise lead to scope creep.

A mechanism for assessing change requests. All change requests should be assessed for the scope of the change along with their impact on the project to allow a decision to be made on whether to implement them or not. E.g. consider impact on time, costs, quality, benefits, and work already done. Assessment should include prioritising to decide whether the change is essential, important or merely nice to have. This activity will ensure that the full implications of changes are understood before implementing them

An agreed change authority. The project manager should escalate the assessed change request along with options and recommendations to a formally appointed change authority. In many cases this will be the sponsor. This ensures that decisions about change which will often increase the scope, time and cost of the project are understood and ‘owned’ at the appropriate level of management. The change authority will accept, defer or reject a proposed change. The change log must be updated following a decision.

27
Q

Explain five components of a project’s information management system.

A

Collection. Information has to be collected into an organisation’s system and it is important this is done in a planned and controlled manner. If this is not done it may not be possible to know what information is available and where it is. An organised collection system must cater for the different types, different format and various sources of the information. Examples of this are scanning paper documents into electronic format and documenting its date of arrival.

Storage. Information needs to be available and it is vital that it can be found and accessed by those allowed to do so. Aspects of storage include information security and safety, an agreed filing system and back-up. Examples of this are locked and controlled filing cabinets for different levels of national and commercial security, fire proof storage, cloud based storage for electronic data and strict criteria on who can have access to information.

Dissemination. It is important that information is controlled regarding its withdrawal and distribution. The system should ensure that there is a record of who has been sent information, when it was sent and the version or variant that was sent. This will provide an audit trail as well as ensuring that the implications of changes to information are understood i.e who should receive an dated version. Without this knowledge time and effort will be wasted and general confusion will result.

Archiving. Information will usually need to be stored after the project is over and therefore any system must include the ability to archive documents. The system must have the capacity for the amount of information that needs to be archived as well as a means of finding and retrieving it at a later date. Archiving is essential for provision of an audit trail and needs to include storage aspects such as safety and security. An example is the use of bonded warehouse to store paper documents.

Destruction. Information rarely needs to be kept indefinitely and an information management system should include a means of destruction. Policy and plans will determine how this is to be done. Examples of this are that ‘after 10 years all material records are to be destroyed by secure shredding’, or, ‘that after 5 years all personnel records are to be deleted from the server’s hard drive.

28
Q

List and describe five policies that would be included in an Information Management Plan.

A
Information storage
Security
Distribution
Archiving
Destruction

There may be an organisational policy that covers the how the project’s information will be stored. This may include the type of format of the information. There may be a standard filing system and it may be policy for all documents to be scanned and stored electronically.

Security policy will cover how the information is to be collected, stored, disseminated and destroyed. It will describe who can have access to the various ‘security levels’ of information and how the information will be physically protected through it’s life from things like fire, degradation and theft.

Distribution policy will determine who is allowed to access the information and when. It may for example, the mandatory use of non disclosure agreements to ensure information does fall into the wrongs hands. It may also mandate the format of all distributed information such as use of company branding.

Archiving policy will cover how, were and how long information will be kept for after the project is closed. This will ensure that the information can be accessed as required, for example is the case of future technical or legal problems. It will also ensure that the information is readable in years to come.

Policy covering information destruction will describe mandatory procedures such as secure shredding. It will also document the timing of information destruction and who is responsible for doing so.

29
Q

Explain what constitutes an issue.

A

An issue is an event which will have or has had an effect on the project’s planned outcome that needs to be escalated to the sponsor for resolution. This is because the project manager does not have the delegated authority to deal with it. It is important that this definition is understood by all to ensure that the big problems which constitute an issue are promptly escalated and not delayed.

30
Q

Describe two benefits of requirements management

A
  1. There is an increased likelihood that the stakeholders, particularly the users, will accept the final product if the requirements have been well managed. This is because the product will achieve what they were expecting when the requirements were agreed. The final acceptance ‘testing’ will be based on the original requirements.
  2. There will be better management of contractors/suppliers if the requirements have been agreed and are clearly articulated and communicated. The supplier will be clear about what the products they are supplying must achieve in order to gain acceptance. In addition there will be less change (due to the fact that the requirements have been agreed) to the scope of contracts leading to reduced cost, delays and conflict.
31
Q

Describe three steps in a requirements management process

A
  1. Gather in the concept phase. The high level requirements are gathered from the stakeholders at the start of the project and documented in the business case (and supporting requirements documentation). These show what the project’s products must do in order to achieve final acceptance at handover from the stakeholders. These high level requirements must be agreed and baselined before the project can proceed into definition.

Refine in the definition phase. The requirements are now developed into more detail often turning ‘user’ requirements into ‘system’ requirements (showing what the system must do in order to achieve what the users want the project to do). It is important that acceptance criteria are added at this stage to ensure that the requirements are measureable and can be tested. These acceptance criteria will form the basis for developing test plans.

Test in the implementation phase. As the products are developed they will normally be progressively accepted by testing them against their requirements and acceptance criteria previously agreed. This may take the form of early design reviews to check that the product will meet the requirements. These tests precede final acceptance and make it more likely.

32
Q

Explain three different estimating methods that can be used during project planning.

A

. Bottom-up estimating involves using an appropriate level of the work breakdown structure (WBS) and estimating one parameter, for example the cost, for each of the items at that level. These individual estimates are then summed within each leg of the WBS to provide an estimate of the costs higher up, which can then be rolled-up to give a cost estimate for the overall project. The reason for estimating in this way is that the overall accuracy of the estimate at the project level is improved as individual errors within each leg will tend to cancel each other out. It does not account for any missed work in the WBS, or for the persistent under or over estimating of every activity. This method takes considerable time.

Historical/Comparative estimates compares what has been done on a previous project and adjusts it as required to produce a new estimate for the current project. Adjustment is required to take into account things like inflation, material and labour cost changes depending on the age of the previous data and the scale/complexity and scope differences between the old and the new. This method of estimating is potentially quick to do but can suffer from a lack of true understanding of the real differences. We may, for example, be comparing our new project with one that was badly managed and / or unsuccessful.

Parametric estimating is a method that uses a statistical or formulaic relationship where cost or time for example is estimated based on one or more parameters. This method cannot always be applied. Depending on the accuracy of the historic information and the sophistication of the method, parametric estimating can produce very accurate results. It is relatively quick method to apply, but takes considerable time to build up and maintain the validity of the past data on which it is based.

33
Q

List and describe the responsibilities of five organisational roles in configuration management.

A

Sponsor: This role supports the process and the project manager both by agreeing and approving the configuration management plan which documents how configuration management will be applied to the project and by providing the necessary resources so that configuration management can be done properly. The sponsor should also ensure that any corporate policies are known and used on the project.

Project Manager: This roles ensures that configuration management is planned in the definition phase of the project, communicated to the project team and relevant stakeholders and properly applied. The project manager will ensure that a change control process is applied and that the configuration of products is tracked accordingly. The project manager will accept products from team managers and check they have been delivered to the correct version.

Team Manager: This role must ensure configuration management is applied during the specialist delivery stages of the project in accordance with the plans and work packages from the project manager. This will include aspects such as unique identification and version numbering of products, keeping previous versions and storage location.

Project Support: This roles may support the project manager by providing administration and process audit. Configuration management demands that records are kept regarding the status of the products, who is working on them, where they are, what version they are at etc. These records will be managed by project support. They can also act as a system auditor checking that products and records are aligned.

Configuration Item Owner: This is the role that owns the product or asset and as such can make decisions regarding changes to the product. The owner may be an individual of a board and as such they will need to understand the configuration related implications of making changes such as other items that may be affected by a change.

34
Q

List and describe five key activities that form part of configuration management

A
Planning
Identifying (configuration items)
Controlling
Status accounting
Audits

Planning involves deciding how configuration management will be applied to the project (process), who will be responsible for the various activities (people) and the scope of it (products). Planning determines how the various versions will be identified and tracked, identification of the level / classes of products and documents that will be controlled, a plan of what libraries and files will be used and change control procedures.

Identifying the products that must be brought under control (configuration items) is an important activity to ensure . The product breakdown structure can be used to support this and should include specialist products normally down to the lowest replaceable unit and key management products such as the business case, PMP, schedules etc.

Controlling involves freezing (agreeing a initial version) and baselining a configuration item and approving it at its initial version (i.e. v1-0). This version will be referred to when making changes. A copy of each baselined configuration item must be maintained in the project filing system.

Status accounting involves keeping records up to date on all configuration items so that it is clear what their status is in terms of version, location, who is working on it and when was last changed. It also involves keeping records of all previous versions.

Audits are carried out to check that current status of the configuration items align with the records kept about them. This involves checking the products in circulation against the configuration item records kept in the system. This will be particularly important at the end of the project before items are handed over to the users.

35
Q

Explain two reasons why the project sponsor must own the business case

A

The sponsor must own the business case for the following reasons:

The Project Sponsor is the link between corporate management and the project and as such is accountable for the investment on behalf of the organisation. The sponsor must ensure that the project aligns with the corporate strategy and will deliver the required benefits within the constraints set (typically time and cost). The business case documents this and therefore justifies the project to corporate who will hold the sponsor accountable for delivering these benefits against the business case which the Sponsor owns.

The Project Sponsor is guardian of the investment and therefore if costs rise or delays creep in it is their duty to re-assess the business case and check that the project is still justified. This is an on-going task but formalised within project governance with gateway reviews at critical points before investment / funding is released for the next phase / stage. If necessary it is the Project Sponsor who must call for cancellation of the project. If not done, the project may continue to consume valuable resources and yield little / no benefit.

36
Q

List and describe the use of three techniques for investment appraisal.

A

Payback period or break-even analysis is the period of time required for the return on an investment to “repay” the sum of the original investment. For example, a £1,000 investment which returned £500 per year would have a two year payback period. It is intuitively the measure that describes how long something takes to “pay for itself”. When comparing different projects by this measure, the shorter the period the more favourable.

NPV compares the value of a pound today to the value of that same pound in the future, taking inflation and interest into account. The cash flows (money out and money in) are discounted by the forecasted effect of time on money to calculate the value of future costs and future benefits such that they are expressed in ‘today’s money’. The sum total of all future discounted costs and benefits is the NPV for the project. When comparing different projects by this measure, the higher the positive NPV the better.

The RoI is a performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio.

The return on investment formula: (multiplied by 100 if expressed as a %)

It is often expressed as ROI % per annum, in which case the ROI above will be divided by the number of years over which the costs and gains were achieved. When comparing different projects by this measure, the higher the ROI the better.

37
Q

Explain three typical components of a procurement strategy for a project

A
  1. The type of solution section: This will cover and document the way that the goods and services for the project will be acquired. A preferred strategy may be to buy ‘off the shelf’, lease or a joint venture/partnering arrangement. Where contracting is the preferred strategy, considerations will include the use of a prime contractor or a series of individually let subcontracts. Getting this right will ensure that the best value for money along with the right balance of risk is achieved.

Supplier selection section: This will document how the suppliers will be identified and selected for the project. This may cover preferred supplier lists, supplier selection criteria and the tendering process where tendering is appropriate and required. For example, an organisation may require that all contracts above a certain value must be subject to a tendering process where three or more tenders are required. For many organisations it is critical that the projects follow a strict tendering process for legal reasons, one example being the European Union procurement directive. Getting this wrong could lead to not only poor value but an invalid contract award.

The type of contract section: This documents the types of contracts that will be used in the project. The type of contract will affect the relationship between customer and supplier as well as how a best value solution and apportionment of risk will be achieved and therefore needs to be appropriate for individual projects. Examples are standard form contracts (NEC etc.) and incentive based simple contracts. Special terms and conditions will also need to be addressed such as cancellation and retention arrangements.

38
Q

List and describe two different methods for supplier reimbursement

A
  1. Cost Plus
  2. Fixed firm price

Cost plus or cost reimbursable. This is where the customer payments to seller is based on allowable estimated costs, usually requiring a ‘best efforts’ performance standard from the seller. Costs may be people, services, materials, etc. This can allow the seller to be chosen and can start work before the scope of work is well defined. This provides low risk to the seller but higher risk to the customer

Fixed firm price. This is where where the buyer pays a set amount to the seller regardless of that seller’s cost to complete the contract. It is popular with buyers where the seller is responsible for the design and supply of a complete piece of equipment or system etc. as max cost is know at the start of the process. It provides high risk to the seller as max contract price is based on an early estimate.

39
Q

Explain five benefits of a project lifecycle structure

A

Provides management control. Dividing the project up into phases facilitates the use of go/no go decision points at the end of each phase. These approval ‘gates’ allow the sponsor and senior management to review the results of the previous phase and the plans for the next phase and decide whether the project is ready to proceed. This provides an important control for the organisation in ensuring that only viable projects continue.

Makes a project easier to manage. Each phase can be treated as a ‘mini project and accordingly planned and managed as such. The outputs from each phase can be defined beforehand as well as the processes that will be used. This ensures clarity and clear phase objectives to the team and the stakeholders. Reporting on the progress of each phase assists in maintaining focus on the project and getting continued stakeholder buy-in.

Facilitates resource and financial planning. Each phase will require different types and levels of resources and therefore by breaking the project down it is easier to not only plan resources ahead but also to identify potential resource conflicts both within the project and with other projects e.g. conflict in availability of specialist / scarce people resources. Financial resources can also be allocated and committed in a manageable way e.g. budget planned and agreed on a phase by phase basis

Assists in learning lessons. Breaking the project down into phases allows valuable lessons to be captured and learnt from one phase to another ensuring that there is continuous improvement. Examples may include:
i) estimating - where a review of a previous phase has identified a lack of contingency and recommends a subsequent increase for the next phase; or ii) a lack of experience in the use of project tools has identified the use of relevant experts and / or training for specific project team members before the next phase/stage starts.

Gives consistency across an organisation. The use of a common structured lifecycle across an organisation will increase efficiency and effectiveness of the organisation to deliver projects. People can be trained more easily around a common lifecycle, establish the use of a common language and move between projects more easily. It also supports and facilitates portfolio management as all the projects can be viewed ‘from above’ as to which phase they are currently in, which in turn facilitates global resource planning.

40
Q

List and describe five activities that would take place during handover and closeout.

A
Handover of products.
Closing down the project
Reviewing the project
Lessons learned
Prepare for benefits review

The products must be handed over to the users (operations) in a structured way. The customer must sign off and accept the project’s deliverables along with the users. There may be a level of support and training involved during this activity. All relevant documentation must also be part of this handover including as-built documents.

The project manager must close down the project for the hosting organisation. This involves the completion of all documentation, closing contracts, disposal of project assets such a offices, equipment etc. and the dispersal of the project team including contractors. Documentation must be archived as required for support and audit purposes.

The project must be reviewed for success against the project management plan and the success criteria. This usually will take the form of a post project review meeting where the follow questions should be addressed: Did the project meet time, cost and quality? What level of changes and issues were there? How many of the risks materialise? How well did the team and individuals perform? Were the project management processes effective? This review should be documented and used to inform future projects.

Lessons should be collected at the end of a project so that they can be learned by the organisation and other projects. These will often be captured at the post project review and documented as part of the post project report. Lessons should be separated into cause and effect so that best practice can be replicated and mistakes not repeated.

The project should be checked to see if any benefits have been realised so far. However, for most projects the benefits are realised after handover. At the end of the project there should be a check to ensure that there is a benefits review plan in place and that it is up to date and in alignment with the business case. The reviews of anticipated benefits should be planned and handed over to the relevant business function via the sponsor.

41
Q

Explain three benefits of project gate reviews.

A
  1. A gate review checks that the project is still viable and on track to deliver the benefits in accordance with the plan. It forms a go/no-go point in the project and as such provides a major control for the sponsor and the hosting organisation. Projects can be cancelled or realigned at the gate if they are no longer contributing the organisation as originally envisaged.

Gate reviews check what has been spend to date against the planned cost, variances calculated and most importantly, the forecast of what is likely to be spent in the next phase or stage can be estimated. This will allow the overall forecast to be estimated, reviewed and action taken as necessary. Gate reviews ensure that trends are spotted before the project strays too far from its original plan.

Gate reviews facilitate the continued buy-in of the key project stakeholders. Gate reviews are often undertaken by a project steering group consisting of senior representatives from users, customers and suppliers and a gate review will focus their attention, renew their interest and promote their commitment and support to the project.

42
Q

Explain two differences between a post project review and a benefits review.

A
  1. A PPR is primarily held to review how well the project achieved its aims as set out in the project plan. The BR is generally held after the project has been closed to review how well the project produced the benefits as set out in the business case. The PPR looks at short term success (time, cost, quality, process, people etc.) whereas the BR looks at the longer term success.
  2. A PPR will seek to gather lessons that can be learned by the organisation in terms of what mistakes in delivery should not be repeated and what best practice should be replicated on other projects. The BR looks at the bigger investment decisions that were made and how they can be improved in the future. The BR also looks at how well the projects products have performed and whether there are any problems or opportunities that need addressing.
43
Q

List and describe five considerations a project manager must make when planning a post project review.

A
a) The timing of the review
Who should be involved
How success will be measured
How lessons will be captured and learned
How team performance and processes will be reviewed
  1. The project manager (PM) must decide when it should be held. For example if it is held too near closeout the team will be too busy and if it is held too long after closeout it may be difficult to gather the relevant people thus losing effectiveness. The PM should ensure that there is sufficient time for people to prepare for it and that there is a clear agenda which is circulated beforehand.

The PM must consider who should be involved when planning the review. Typically the sponsor and key team members should be involved but the PM should consider which other stakeholders could add value to the process. For example should 3rd party suppliers be invited? Also consider if want somebody independent to facilitate the lessons learned part of the review agenda.

The PM must decide how project success will be assessed in the review and how relevant information and data will be gathered for the review to support success measurement. Will it simply be against the time, cost, quality triangle or other aspects such as stakeholder satisfaction be used. The PM must consider relevant key documentation to use as the baseline for the review measurement such as the original versions of the Project Management Plan, Requirements Specification and Business Case and consolidate approved changes too to provide a full picture.

The PM must consider how vital lessons will be identified in terms of cause and effect. It may be difficult to get people to say why negative things happened in a meeting style review so the PM must consider what techniques should be used. Is there an organisation standard format for documenting lessons learned that needs to be followed. Should an independent facilitator be used to aid breadth of thinking and fairness to all. In addition the PM must think about how these lessons can be communicated to, and learned by, the wider organisation.

The PM must consider how individual team performance and the effectiveness of the project management processes (and supporting tools) used during the project will be assessed and the outputs then used. For example how will good personal performance of an individual be recognised and communicated to their line manager or how will the effectiveness of a planning tool be assessed? Should there be recognition given at the review itself also needs consideration.

44
Q

Explain five advantages of a project (task force) type of organisational structure.

A

The project manager has line authority over the project team and this has the benefit of quicker decision making, more efficient communication and better control. Because the team do not have functional line managers they can respond more easily to the work delegated to them from the project manager. In addition, the project manager does not have to spend time negotiating with line managers for use of resources.

The team are more dedicated to the project than they would be in a matrix or a functional organisation. This is because they generally work full time on the project and will not be interrupted by departmental work or tasks from other projects. This frees them up to concentrate on the project in hand. An example of this is where a team of designers is wholly allocated to a single project and not expected to divert their attention to other projects.

The team are likely to have a strong identity as their allegiance is to the project and not a function or department. This strong identity will lead to higher motivation where members support one another, share information and become more proactive. The analogy is of a football team wanting to win and playing hard to do so. Without this ,members will pull in different directions and have other stronger allegiances.

Members of a project team will develop skills wider than if they were in a more functional based organisation. Because of the team context they will get involved in many aspects of the project as they support one another and strive for project success. Examples include technical people getting involved with negotiation and costing activities. This broadening of skills benefits the individual and produces more capable people for the organisation.

The team will be more goal orientated than a functional team. They are there to complete a discrete task with clear goals and constraints. They are not there to do anything else and so they see everything they do as contributing towards that goal. This is in direct contrast to the work of a functional team where once one job has been completed another one comes along making it more difficult to be motivated and goal focused.

45
Q

List five roles that need to be defined with respect to a project and describe responsibilities of each role

A
Project Sponsor (PS)
Project Manager (PM)
Project Team Member
Project Support Office
Product User

The PS is the business owner of the project and responsible for achieving the benefits detailed in the business case. They own the business case and its viability throughout the project life cycle. They will support the PM through provision of resources, funding and timely decision making around aspects such as changes, issues, and risks. They are a key decision maker at phase and stage gates and also approve project closure to confirm the project has moved in to a business as usual state.

The PM is responsible delivering the project to meet the agreed success criteria (typically time, cost and quality). This involves monitoring and controlling the project, reporting on progress to the sponsor, managing the project management processes such as change control, risk management, stakeholder management and leading and motivating the project team delivering the work packages. The PM owns the development of the Project Management Plan.

The Project Team Member is often a specialist (e.g. engineer, IT, Designer, tester) in the project team and is responsible for completing the work allocated to them in one or more work packages. The team member will do the work and tasks as allocated in the project schedule and report to the project manager (or indirectly via a work package lead) on progress and ensure that quality activities are carried out in accordance with the project’s requirements. They will escalate risks, issues and changes as they arise.

Project Support Office role can vary in scope and is to support the Project Manager with a range of project management services that may include administering the project management processes such as reporting, risk, change control, issues, configuration and updating the various logs/registers and also providing lesions learned and best practice guidance. They may also assist with upwards reporting, providing specialist tools such as use of scheduling software and resource management.

The Product User is responsible for ensuring that the user requirements are specified at the outset of the project and the products are accepted against them at the end of the project. They will define user acceptance criteria and ensure that project stays on track to meet them throughout development and are likely to be involved in testing of the product too. They will use the products to deliver the benefits to the organisation.

46
Q

List and describe three elements that would be part of the typical contents of a structured project management method

A

. Process
Templates
Roles and responsibilities

The backbone of a project management method (PMM) is usually a process based around a lifecycle model. This process will break the project down into series of management and technical stages (steps) that should be followed. The process will show what inputs the stage needs, the activities in the stage and the outputs of the stage. The process is normally documented in the form of procedures.

Project document templates are part of a PMM. Examples include templates for the business case, the project management plan, change requests and issues. The use of templates ensures that there is consistency within and across projects and they can be refined over time to reflect best practice.

Roles and responsibilities are a key element of a PMM. Each step of the process will involve different levels of involvement. This element should cover who is responsible for each management activity and who can approve process outputs such as the business case, change requests etc. It will cover the role of the sponsor, project steering group, project manager and team managers.

47
Q

Explain two advantages of adopting a structured project management method.

A
  1. It gives consistency across the organisation and supports project governance. It does this by ensuring that teams follow an approved method with clear roles and responsibilities and that information by way of reports are of a standard format and consistent in quality. This promotes confidence at board level and makes it easier to review projects as they are in a ‘standard form’.
  2. Use of a PMM across an organisation ensures that staff be trained in its use and are clear about how projects should be managed. This facilitates the movement of people between projects which would be more difficult if each project was being delivered in a unique way with no consistency between them. The common language that the method promotes makes communication easier as, say, everyone understands what is meant by a project management plan or a stage gate.
48
Q

State six principles of the governance of project management that would help avoid common causes of project failure

A
  1. Plans. All projects have an approved plan containing authorisation points at which the business case is reviewed and approved and decisions made at authorisation points are recorded and communicated.

Business Case. The project business case is supported by relevant and realistic information that provides a reliable basis for making authorisation decisions

Reporting. There are clearly defined criteria for reporting project status and for the escalation of risks and issues to the levels required by the organisation.

Scrutiny. The board or its delegated agents decide when independent scrutiny of projects and project management systems is required, and implement such scrutiny accordingly.

Improvement and Information. The organisation fosters a culture of improvement and of frank internal disclosure of project information.

Stakeholders. Project stakeholders are engaged at a level that is commensurate with their importance to the organisation and in a manner that fosters trust.

49
Q

For each of two distinct principles stated in part (i), explain the possible effects of NOT practising them.

A

If a project has no plan with authorisation points there is the danger that valuable resources continue to be committed to a project that is allowed to continue even though it is not on track to deliver the benefits that it was originally designed to do so. The business case may no longer be viable but the organisation may be unaware of this. The project may also present undue risk to the organisation that is sponsoring it or no longer be aligned to its corporate strategy. Senior management no longer have control over the investment in a project that they should be accountable for.

if there is no clear reporting and escalation criteria and no delegated limits set then problems within the project which could potentially harm the business might be hidden from senior management. Some project managers and sponsors may escalate small problems while others will ‘hang on’ to them too long preventing timely resolution. There will be a lack of consistency across the organisation and general confusion about what is going on. This could mean also that issues that should have been escalated remain unresolved which could led to project failure.

50
Q

Explain five considerations a project manager must make when developing the project communication plan

A

Information required. The project manager must understand and identify the content of the communication required by each stakeholder to ensure that the right information gets to the right people. It may be ineffective for example to send a very detailed report to a non technical stakeholder or information regarding the project cash flow to the design authority. The project manager must consider, ‘what information does this stakeholder need at each point in the project’.

Format of the information. This must also be carefully considered so that it is appropriate to the recipient. The way the information is presented can really affect the way that it is perceived and used. The use of a standard project template may be perfect for internal communication but totally inappropriate for communicating with people outside the organisation who may prefer a format that they are more familiar with.

Method of distribution. It is important that the project manager communicates the messages in a way that is appropriate and will maximise their effectiveness to the stakeholders. An inappropriate method such as sending an e-mail to a senior stakeholder may undermine the message. The project manager must seek to understand the stakeholder’s situation and style and choose a suitable method accordingly. Examples are: face to face, meetings, phone and formal reports.

Timing and frequency of the messages. This can be crucial in maximising the effectiveness of communication. The project manager must plan the timing of messages to coincide with the stakeholders needs ensuring they are not sent too early to be ignored or too late to be of use. Examples would be sending the sponsor a project progress report in good time for a project board meeting or submitting a planning request before a planning committee meets.

Sender of the message. It is crucial that the right people are identified to communicate with each specific stakeholder or stakeholder group (target audience) to ensure maximum message validity. The project manager should for example consider the seniority of the recipient when choosing the messenger. It might be appropriate, for example, for the project sponsor rather than a junior administrator to communicate with senior stakeholders or a technical member of the team to communicate with a client’s technical authority.

51
Q

Explain the importance of team development

A

If a project is to succeed it needs a strong motivated team. These are people who are focussed on a clear goal and all pull together often putting aside their differences to achieve success. They become ‘more’ than the sum total of individuals in the team and will achieve more. This is in stark contrast to a group of individuals who will often have their own goals and not support one another. Think of a football team working together to win the cup. They have a self belief and can be invincible in contrast to a group of highly talented players who have not yet become an integrated team.

52
Q

List and describe four aspects of team development using a development model.

A

Forming: This is when the individuals are put together but are a team in name only and there is a high dependence on leader for guidance and direction. There will be little agreement on team aims and individual roles and responsibilities are unclear. The processes are often ignored and members will test the tolerance of system and leader.

Storming: This where there is the decisions don’t come easily within group. Team members vie for position as they attempt to establish themselves in relation to other team members and the leader, who might receive challenges from team members. Clarity of purpose increases but plenty of uncertainties persist. Cliques and factions may form and there may be power struggles.

Norming: This is where agreement and consensus largely forms among team, who respond well to facilitation by leader. Roles and responsibilities are clear and accepted. Big decisions are made by group agreement. Commitment and unity is strong andhe team may engage in fun and social activities.

Performing: The team is more strategically aware; the team knows clearly why it is doing what it is doing. The team has a shared vision and is able to stand on its own feet with no interference or participation from the leader. There is a focus on over-achieving goals, and the team makes most of the decisions against criteria agreed with the leader. The team has a high degree of autonomy.

53
Q

Explain situational leadership and the four leadership styles that could be used by a project manager

A

Situational leadership theory is that there is no single “best” style of leadership. Effective leadership is task-relevant, and the most successful leaders are those that adapt their leadership style to the maturity of the individual or group they are attempting to lead or influence. Effective leadership varies, not only with the person or group that is being influenced, but it also depends on the task, job or function that needs to be accomplished. Four styles of situational leadership are shown below and are listed as a progression from ‘forming’ through to ‘performing’ where a team is involved. In this answer the leader refers to the project manager.

Structuring (or telling) - is characterized by one-way communication in which the leader defines the roles of the individual or group and provides the what, how, why, when and where to do the task. This is because the individual or the group in lack the specific skills required for the job in hand and are unable and unwilling to do or to take responsibility for this job or task.

Coaching (or selling) - while the leader is still providing the direction, he or she is now using two-way communication and providing the support that will allow the individual or group being influenced to buy into the process. This is because the individual or the group are unable to take on responsibility for the task being done; however, they are willing to work at the task. They are novice but enthusiastic

Encouraging (or Participating) - this is about shared decision-making and aspects of how the task is accomplished. The leader is providing less task direction while maintaining a high degree of relationship support. The individual or the group are experienced and able to do the task but lack the confidence or the willingness to take on responsibility.

Delegating - The leader is still involved in decisions but the process and responsibility has been passed to the individual or group. The leader stays involved to monitor progress The individual or the group are experienced at the task, and comfortable with their own ability to do it well. They are able and willing to not only do the task, but to take responsibility for the task

54
Q

List five actions that need to be done to prepare for a negotiation with a supplier of goods or services to a project. Describe the relevance of each action

A
Identify negotiating issues
Identify negotiating ranges
Determine negotiating strategy
Gather information about own and other party’s position
Establish authority and limits

Identify the negotiating issues and items that need to be covered in the negotiation by all parties. These issues will form the scope of the negotiation once agreed. These could include for example price, delivery date, quality criteria, terms and conditions. Also consider and anticipate issues the other party are likely to raise at the negotiation.

Each issue will usually have a range of values which form the boundary of negotiation. These lower and upper limits will need to be pre-agreed by the relevant authority (e.g. with Sponsor) and provide targets for the negotiating team. Price is a good example of this e.g. agree minimum and maximum values before entering the formal trading / bargaining part of the negotiation.

A strategy for the negotiation needs to be established along with supporting tactics so that a successful negotiation can be completed. These may include aspects such as where the negotiation will take place, are we looking to work longer term with this supplier, who will be in the team and how it will be led/controlled and evaluation of the balance of power.

Gather information to support your preferred position and to forecast your opponent’s preferred position. This may include aspects such as the market price of the goods, your suppliers current workload e.g. Are they busy or otherwise? How important is securing this sale to them? How readily available is the product / service from other suppliers? Consider also what issues are of maximum value to them (and to you).

Establish authority and limits for negotiating each issue and the overall negotiation value. You need to understand how much you can ‘give away’ before you need to escalate to the next level of management. You should also understand the level of authority of the other party. Your own organisation procurement policy, rules and thresholds need to be considered here too.

55
Q

Five benefits of formal Risk Management are

A

1) Defining ways to deal with risk is one of the benefits of risk management. It identifies who is responsible for dealing with the risk (risk owner), what are the actions that can be taken to mitigate the risk, and in case of risk occurrence what will be the impact on project baselines (time, cost, quality and benefits). For example, identified risk is for the delay of the supply of the overseas material, risk owner is the procurement engineer and mitigation action is to issue early purchase order.
2) Consistency is another benefit for formal risk management. People are using the same forms and are following the same procedures (in other words, people are doing things in the same way). One can easily get the risk log form from an old similar project and review it to make sure that none of the risks is ignored. That is useful as it minimizes the chances for errors and maximizes the benefits of lessons learnt. For example, in previous project the risk log sheets included the risk of currency change which was not considered in this project.
3) Allowing for Contingencies is one more benefit for formal risk management. It ensures that proper allowances for contingencies are quantified on basis of the identified risks. That is important in case if risk occurs. Then, these allowances in time and cost will be released in agreement with the Sponsor and project base lines will be updated to reflect the impact on cost and time. For example, manufacturing of the overseas material was delayed, contingency is released to use air freight for shipping the material in lieu of sea freight.
4) Common reference point for Auditing and Assurance is one of the benefits for formal risk management. Risk management plan and risk log sheets are embedded in the PMP. They are reviewed and approved along with the PMP during the definition stage. Any updates to the risk log sheets will have to be carried out through controlled configuration management process. Both documents (PMP and Risk management documents) will be subject to routine audits and assurance together. For example if risk log sheet is updated during the development phase in the project, then the document revision will be raised and that will be reviewed by the auditors.
5) Sponsoring organisations having clear perspective on risk is another key advantage for the formal risk management. Senior management in the organisation will have visibility on the possible risks. That enables them to take proactive actions towards mitigating the risks or at least minimizing their impact on the business. For example, in one project majority of the equipment will be purchased via Euro. Increase in Euro rates is anticipated as major risk that will knock the project budget. Senior managers in the organisation decided transferring the full cost for the equipment into Euro at the early beginning of the project.