Project Management – C722

Unit 2: Project Management Concepts

Module 3: Project Characteristics
Objective: Define projects, including their purpose.
Importance of Projects in an Organization
A project develops a new product or service such as new technology features, improved service, or cost
reduction for the business.
Multiple factors such as changes in workforce demographics, increased technology usage, increased
international activities, and changes in requirements such as regulations all attribute to the need for
experienced individuals to lead and manage projects.
Project Manager Skills
Project Managers have ten competencies:
1. Integration Management – Processes & activities needed to identify, define, and coordinate
various processes and project management activities.
2. Scope Management – Processes to ensure all work required is identified
3. Time Management – Processes required to manage the timely completion of the project
4. Cost Management – Processes involved in planning, estimating, budgeting, managing, and
controlling costs for the project to be completed within the approved budget
5. Quality Management – Processes and activities that determine quality policies, objectives, and
responsibilities
6. Human Resource Management – Processes that organize, manage, and lead the project team
7. Communication Management – Processes to ensure timely and appropriate planning, creation,
distribution, management, control, and monitoring of project information
8. Risk Management – Processes of conducting risk management planning, identification, analysis,
response planning, and controlling risk on a project
9. Procurement Management – Processes necessary to acquire products, services, or results
needed from outside the project team
10. Stakeholder Manager – Processes required to identify all people or organizations impacted by
the project, analyze stakeholder expectations, and develop appropriate strategies for effectively
engaging stakeholders in project decisions and execution
Project Managers also need soft skills:
• Negotiation
• Conflict Resolution
• Communication
o Written
o Verbal
• Prioritization
• Budgeting
o Money
 o Time
Operations and Projects
Operations are the ongoing daily activities of an organization that produces revenue and expenses.
• Continues over indefinite period of time
• Creates business transactions
• Delivers products and services which generate revenue
A Project is a temporary endeavor with a specific start and end date.
• Exists to develop a unique product, service, or result that may become part of operations
• May last days or several years
• May be undertaken by a single or multiple organizations in partnership
• Does not always result in a new product or service and may be used to enhance current
operations
Project Characteristics
Business Scenario is used to describe a specific situation encountered in our professional lives.
A business scenario is representative of a significant business need or problem.
• Imagined or projected sequence of events
• Representative of significant business need or problem
• Enabled vendors to understand the value to the customer organization of a developed solution
• Description of a business situation or problem that describes:
o Past relevant events
o Current key information
o Expected or desired outcomes
The Role Projects Play in Achieving Strategic Business Initiatives
Projects selected by an organization must be directly related to the organization’s strategy.
A project is successful if it meets the triple constraints of scope, schedule, and budget.
The Relationship Between a Project, Program, and Portfolio
A project is a temporary endeavor with specific start and end dates. A program is a group of related
projects. A portfolio is a group of initiatives that support long-term goals.
A project is an activity or group of activities that generate a new, unique product or service to support a
program.
A portfolio is a group of related programs that support a long-term company goal or objective.
Defining and Characterizing Project Management
Phases of the Project Life Cycle
1. Defining
2. Planning
3. Executing
4. Closing
Module 4: Project Management and the Project Manager
Objective: Define projects, including their purpose.
PM responsibilities include:
• Initiating the project with clear goals, sponsorship, and a business case which aligns with the
goals of the organization
• Overseeing the development and acceptance of a realistic project plan that meets the
requirements approved for the project
o The PM should have complete knowledge of the project plan:
▪ Approved requirements for the product, service, or process
▪ Project schedule
▪ Resource plans & requirements including time, budget, material equipment, and
facilities
▪ Communication plan
▪ Risk register
▪ Quality standards
The 8 and 80 Rule
• PMs should avoid controlling tasks of less than eight hours
• PMs should not allow more than 80 hours to go by without an update
Basic Communication Tenets
• Establish Expectations
• Address Conflict Immediately
• Stay Focused on the Project and Goals
• Understand WIIFM (What’s in it for me)
Project Management Organizations & Their Standards
Project Manager’s Book of Knowledge (PMBOK)
Projects in a Controlled Environment (PRINCE2)
Project Management institute (PMI)
• US Based
• 2 Standards
o Foundational
o Practice
• Framework & Processes for:
o Project
o Program
o Portfolio Management
o Organizational Project Management Maturity (OPM3)
Association for Project Management (APM)
• UK Based
International Project Management Association (IPMA)
• World’s first PM association
• Leading authority on competent project, program, and portfolio management (PPPM)
• Issues competency-based certs but has no standards
AXELOS Ltd.
• Joint venture between the UK and Capita PLC
• Managed standards & certification for the Cabinet Office
• Oversees PRINCE2
Module 5: Advantages & Disadvantages of Common Org Structures
Objective: Describe the advantages & disadvantages of common types of organizational structures
Functional (Departmentalized) Structure
Oldest and most basic form of organization most often represented in corporation shareholder reports.
Defined supervisor-subordinate relationship between each department and subdepartment.
Advantages Disadvantages
Lines of authority are clear Utilizing resources across functions is hard
Work is easily prioritized Requests for assistance from other departments are
not prioritized
Flexibility in staffing Inefficient for projects requiring collaboration and
cooperation between departments
Organizational (Projectized) Structure
SMEs from different functional areas are assigned to directly report to a PM for the duration of a
project.
Advantages Disadvantages
PM has full authority PMs must have enough work to keep SMEs busy
Less need to negotiate availability SMEs assigned may not have the most appropriate
knowledge or expertise for the project
Managed holistically Expensive due to duplication of personnel
Matrix Structure
The principal difference between a matrix structure and others is a Matrix has less clearly defined lines
of reporting.
SMEs still report to the PM but functional supervisors retain administrative authority for the SME.
Weak Matrix Balanced Matrix Strong Matrix
Very similar to a functional PM defines what needs to be Attempts to provide the appearance
org accomplished and establishes of project teams in the matrix
the overall plan, schedule, etc. organization
 PMs are designated to Functional Manager PM has more control over various
coordinate PM activities and determines how the project project aspects than in other org
act as a coordinator between will be accomplished, assigns forms
departments personnel, and executes plans
in accordance with the
schedule and standards
defined by the PM
Functional Manager remains Functional Manager maintains the
responsible for their own “title” to functional personnel
portion of the project

Advantages Disadvantages
Central focus is the project Requires cooperation and coordination between
departments and PMs
PMs have access to a large pool of SMEs SMEs are not in daily contact with others for sharing
of information
Project team members have less anxiety Decision Makers are not always clearly identified
about the future

The Project Manager’s Authority

Project Maturity & Advantages of a Project Management Office (PMO)

Five types of PM maturity:
 1. Initial Process
2. Structured Processes & Standards
3. Organizational Standards & Institutional Processes
4. Managed Processes
5. Optimizing Processes
Organizational Project Management Maturity Model (OPM3)
Level 1 – Ad Hoc No formal standards, processes, procedures
Methodologies are sporadic
Level 2 – Planned Standards, processes, procedures exist in the org but are not an org standard
Basic documentation exists
Management support is inconsistent
Level 3 – Managed Standards, processes, procedures are in place as org standards
Formal documentation exists
Management support is consistent
Execution is irregularly/inconsistently applied
Level 4 – Integrated More refined standards, processes, procedures are in place
More refined documentation exists
Management support is consistent
Execution is consistent
Efficiencies across all projects
Metrics are in place to collect performance data
Level 5 – Sustained Lessons learned and best practices are applied
Metrics are collected and applied
Capability Maturity Model (CMM) / Capability Maturity Model Implementation (CMMI)
CMM Key Process Areas (KPAs) CMMI Process Areas (PAs)
5 – Optimizing Process & Technology Change Organizational innovation /
Management deployment
Defect prevention Casual analysis & resolution
4 – Quantitatively Managed Software quality management Organizational process
performance
Quantitative process management
Quantitative project
management
3 - Defined Software product engineering peer Requirements development
reviews
Technical solution
Organizational focus
 Organizational process definition Project integration
Training program Verification
Intergroup coordination Validation
Integrated software management Organizational process focus
Organizational process
definition
Organizational training

2 - Managed Requirements management Requirements management

Software project planning Project planning
Software project tracking & Project monitoring & control
oversight
Supplier agreement
Software sub-contract management management
Software QA Measurement & analysis
Software configuration Process & product QA
management
Configuration management
1 - Initial

Unit 3: Project Selection Criteria & Models

Module 8: Project Selection
Objective: Explain the various criteria used when constructing a project selection model
Project Select Criteria and Models
Model Selection Criteria
CRITERIA DESCRIPTION/ATTRIBUTE
REALISTIC Accurately reflects the way the organization does business
Appropriate for the level of resources, capabilities, and external environment

Example: Using profitability model when the organization is focused on market share
growth would not be appropriate.
CAPABLE Uses factors that are relevant to the organization
You would not expect one model to cover all dimensions of a project

Example: For organizations with a long-term value perspective, the net present value
model provides a rigorous evaluation of a project’s future cash flow
 FLEXIBLE The model should provide accurate measures across a reasonable range of
conditions

Example: The model would allow for changing conditions where the cost of a new
government regulation must be factored into the analysis
EASY TO USE Provide results in a responsible amount of time
Results should be easily understood by decision makers

Example: Use models that provide measurement

LOW COST The costs of gathering data and running the model should be low relative to the
scale of the project

Example: A model that requires hiring a consultant to run and interpret may not be
cost effective
COMPARABLE The model should be usable across a range of projects such that the outcomes of the
model can be used to compare projects

Example: Using a profitability model for one project and a qualitative scoring model
for another would not allow the decision maker to analyze the projects together
Models are representations of reality. One downside is that models are singular in their vision of reality,
models can ignore other aspects of a future project.
It is important to select the correct project method to budget limited resources. Project checklists can
include hundreds of items with many participants.
Comparative Checklists for Project Selection
Project selection models fall into two categories:
• Non-Numeric
o Also known as Non-Financial models since they focus on selection criteria not limited to
numeric performance measures
o Does not make these methods less accurate or valuable
o Incorporates the flexibility necessary to develop criteria that aligns to strategic goals
o Examples include:
▪ Competitive Necessity
• Still requires a formal project proposal however approval is based on if
the project will ensure viability of the company in a competitive market
▪ Operating Necessity
• Evaluates projects based on whether it will ensure ongoing operations
with the understanding that not executing the project will cease
operations
▪ Sacred Cow
 • Suggested by powerful stakeholders
• Created to satisfy the expectations of the leader with little regard for
the project’s viability or contribution to strategic or operational needs
▪ Checklist Model
• Uses a series of questions to evaluate each potential project with the
same set of questions
• Answers are compared to determine to approve or deny a project
• Numeric
o Uses financial and other quantitative measures to decide
▪ Numeric models are not limited to a stole measure
o Can be grouped into two categories:
▪ Profit/Profitability Based
• Uses an aspect of measuring the financial returns of the project relative
to the cost
▪ Scoring Models
• Integrates multiple criteria in analyzing project proposals
o Span from basic to including weights on each criterion
o Numeric only when weights are assigned
Scoring Models for Project Selection
Criteria can be quantitative or qualitative, but the answer must use a scale (1 to 10).
Weighted Factor Scoring Model is a popular approach in which each criterion has a separate weight
based on priority. Ratings of each criterion are multiplied by the criteria weight to calculate the total of
each project.
Weighted Project Score = (score) * weight
Financial Concepts for Project Selection
Opportunity Costs is money that’s used for one purpose is no longer available for another.
Time Value of Money suggests money is worth more to the organization now versus the future. Money
in possession today is worth more than money in the future.
The Payback Period
The first Financial Selection mode is the Payback Period which is the amount of time required to earn
back the cost of doing the project.
To calculate, you need to know the cost of the project and the amount of revenue the project will
generate in future periods.
Payback Period (Months) = Estimated Project Costs / Monthly Return
Does not consider additional returns that a project might generate or the consideration of the time
value of money. The payback period is typically underestimated.
Internal Rate of Return
Internal Rate of Return (IRR) revaluates potential projects as if they were financial investments and
calculates the rate of return for a project. This approach recognizes the time value of money by
capturing both the duration of the investment return and the return rate.
The Time Value of Money and the Selection of a Project
Net Present Value (NPV) is a financial measure of the total future benefits of a project, minus the cost of
the project. If future benefits are greater than the cost, NPV is positive.
NPV considers the time value of money by discounting future benefits.
NPV considers future net cash flows so to evaluate a project, you need to know the costs (outflows) and
benefits (inflows) for the entire working life of the project outcome.
NPV = Cash Flown / (1+r)n – Initial Investment
Cash Flow = Sum of money spent or earned on a project for a given period of time
n = Number of time periods
r = Discount rate
NPV involves calculating the cash flows for each period of the project, discounting them to present
value, and subtracting the initial investment from the sum of the discounted cash flows.
The number of periods equals how many months or years the project will last.
Discount rate is the company’s weighted average cost of capital (WACC) or how much money it needs to
make to justify the cost of operating and includes things like interest rate and payments.
Positive NPV means the project may be profitable and worth pursuing. Negative NPV means the project
is not profitable. Zero means the investment is neither profitable nor costly.

Unit 4: The Project Life Cycle

Module 11: The Phases of the Project Life Cycle
Objective: Identify each phase of a project
The Phases of a Project Life Cycle: The Project Defining Phase
During this phase, the idea for a project is formalized into a project proposal and the decision on
whether the project will be selected is made.
Minimum questions to include during a project proposal:
• Major project outcomes & deliverables
• How the project will be completed
• Estimate of cost
• Estimate of completion time
• Reasons for the project
• Benefits of the project
• Required resources
• Identifiable risks
• Major stakeholders & roles
• Who the decision makers are
The selection of the project and creation of the project charter mark the conclusion of this phase.
The Project Planning Phase
Planning must be sufficient so that the stakeholders are satisfied that the project outcome will be
achieved and required work is understood by all stakeholders. Typically, this is done using a Work
Breakdown Structure (WBS).
Approval of the scope, budget, and schedule marks the conclusion of this phase.
The Project Executing Phase
Where the bulk of the work to complete the project outcome occurs and is based on the plans created
during the planning phase.
Progress is measured to ensure the project is on schedule with budget, schedule, and scope.
Unplanned for activities may move the project back to the planning phase.
The Project Closing Phase
Initiated when the project outcomes are delivered to the stakeholder.
Common tasks include:
• Reassign any project resources back to the company
• Document the project results and lessons learned
• Close out any procurement activities
• Verify that the completed project is transitioned over to the customer
Acceptance by the stakeholder signals the end of this phase and completes the project life cycle.

Module 12: Triple Constraints of Projects

Objective: Define the project term Triple Constraint
Constraint: Project Scope
A statement of work (SOW) commonly includes:
• Objectives
• Deliverables
• Acceptance Criterion
• Technical Requirements
• Limits & Exclusions
• Milestones
• Constraints
• Assumptions
A well-crafted SOW helps avoid Scope Creep.
Constraint: Project Schedule
Project schedules are defined by beginning and end dates which are represented by timelines on a
calendar. Specific dates are called milestones and indicate critical events, customer reviews, inspections,
or other activities that must be performed on specific dates before the project may proceed. Some
activities cannot be performed simultaneously and often activities are contingent on each other.
Milestones are commonly shown as ^ symbols.
A Gantt Chart is used to display the project schedule and displayed as rows in a table.
A PERT Chart is used to provide a graphical representation of the project’s timeline. Mostly helpful
during the planning phase to outline the full scope. A critical path is a path with the longest duration
from the start of the project to its completion. This also refers to work activities which delay the project
is the activity is delayed. The critical path can change depending on actual time utilization and other
unforeseen circumstances. Float or slack time is the opposite of the critical path, they are the amount of
time an activity can be delayed without affecting the completion date of the project.
Constraint: Project Cost
The project cost is the sum total of all expenditures of a project.
The key to creating a budget is careful and complete documentation of the assumptions formed during
the planning phase. Any time there is a possible change in cost, it has to be viewed in regard to any
decrease in schedule or increase in scope – does the benefit balance the cost change?
Examples of project justification include:
• Government requirements such as environmental or safety
• Reduction of costs to increase profits by improved processes
• Meeting customer needs
• Addressing competition
The Purpose of Establishing a Project Baseline
A project baseline establishes the expected scope, cost, and schedule of the project. Once determined,
you can then tell where deviations occur. Choosing a different material is an example where the
difference in cost affects the baseline.
https://www.montgomerycountymd.gov/OMB/Resources/Files/omb/pdfs/costestimation/presentation
1.pdf

Unit 4: Project Management Methods

Module 15: Project Management Methods
Objective: Contrast common project management methods.
Best practices include PERT, CPM, Critical Chain, Waterfall, and PRINCE2. Some or all can be used in a
project.
PMBOK is a standard, not a methodology. PMBOK defines best practices.
Project Evaluation and Review Technique (PERT)
• Developed in the 1950s
• Used to estimate activity duration times
• Statistical approach to estimate the time required to complete project work activities
• Recommended by PMBOK when estimating activity duration times vary
Critical Path Method (CPM)
• Developed for the DuPont Corporation
• Also used for activity estimates however estimates do not vary, and time is reliably estimated
Critical Chain Project Management (CCPM)
• Focuses on managing uncertainties of a project
• Assumes available resources are limited
• Applies the Theory of Constraints logic by recognizing resources are required
o Goal is to maximize throughput to maximum cap
• Each resource expected to verify availability
• Time buffers are built in to handle situations
Waterfall Method
• Suited for software & hardware development
• Project work flows downward like water falling off a ledge
• Returning to previous steps in the event of issues is costly
Projects in Controlled Environments (PRINCE2)
• Focuses on outputs rather than coordination of activities
• Includes specific processes and terminology
• Widely accepted in EU
Complexity, Uncertainty, and the Selection of a Project Management Methodology
The likelihood of a project not running as planned increases with the complexity of the:
• Project team
• Project processes
• Project outcomes
The Five Steps to Managing a Project: Initiating and Planning
Includes activities such as:
• Selecting suppliers
• Analyzing bids
• Communicating with stakeholders
• Gathering requirements
• Selecting team members
The five steps are organized chronologically across the life of the project.
Processes completed during initiating include:
• Documenting the business needs
• Defining the project
• Evaluating project proposals
• Completing project selection
• Identifying major stakeholders
• Creating the project charter
Processes completed during planning include:
• Documenting all requirements and deliverables
• Estimating resources
• Finalizing scope
• Finalizing budget
• Finalizing schedule
• Creating the Work Breakdown Structure (WBS)
o Lists the activities and tasks and how they fit
• Creating the network diagram
o Used to show the sequence of activities using arrows and circles
• Creating the activity list
• Writing the actual plan
The Five Steps to Managing a Project: Executing and Monitoring and Controlling
Executing processes are what the project team does to create the project outcomes.
Processes completed during execution include:
• Acquiring team members
 • Training and coaching members
• Communicating with stakeholders
• Managing stakeholders
• Implementing the project plan
• Documenting change requests
• Assessing team member performance
• Recognizing and rewarding performance
Monitoring & Controlling is an iterative activity which occurs during execution. Monitoring can be
separated from controlling and involves assessing whether the project plan is working. Controlling is the
action taken to adjust the plan.
Processes completed during monitoring and controlling include:
• Keeping activities in sync (Integration Control)
• Verifying deliverables meet specifications
• Documenting requested changes to scope
• Monitoring the schedule
• Monitoring the budget
• Assessing project quality
• Resolving issues about scope, activities, or team
• Reporting performance
• Monitoring risks
• Monitoring vendor/providers
• Determining when replanning is needed
The Five Steps to Managing a Project: Closing
If it’s determined that the project outcomes are no longer needed or resources aren’t available, projects
can be terminated early.
Processes completed during closing include:
• Reconciliation and payment to vendors
• Returning excess materials and supplies
• Returning all assets to sponsoring organizations
• Lessons learned
• Completing documentation
• Delivering the completed project
• Receiving customer sign-off
• Archiving project artifacts
Traditional Project Management Methods
Linear and sequential steps is a defining characteristic of traditional project management methods:
• Define
• Plan
• Execute
• Close
Characteristics of a project environment well-suited for traditional methods include:
• Well-defined project outcome
• Low-complexity project outcome
• Stable project scope
• Low risks
• Stable technologies
• No resource constraints
Project Volatility is a potential problem for projects and is the level of instability in a project
environment. Traditional methods used in these environments can lead to the project not meeting its
scope, budget, or requirements.
Agile Project Management
Developed for projects in which the end project is not clearly defined in advance.
Iterative approach where project teams work closely with the customer to deliver projects in usable
chunks.
Iterations are typically short bursts of approximately two to four weeks of work.
Each iteration has a functional identification for that iteration.
Agile management tenants include:
• Customer focused
• Understanding customer requirements
• Incremental delivery of functionality
• Static project team members
o Focused and specific
• Proper communication management
Extreme Project Management Methods
Extreme project management methods are approaches to address issues of extraordinary uncertainty or
complexity. Most methods have a strong bias towards advance planning.
In extreme projects, detailed planning is not as important since the team faces uncertainty. There must
still be a high level goal for it to be considered a project.
Human resources are the focus rather than planning. Team members must be able to collaboratively
problem solve and apply expertise from their own respective fields.
The sponsor is the most important player in these projects and needs to be hands-on the entire time.
Possible criteria for extreme projects include:
• High stakes – failure is not an option
• Short deadlines
• Innovation is paramount
• Success is measured into the bottom-line
• Bureaucracy can’t be tolerated
• Quality of life is important
Unit 6: Project Planning
Module 18: Project Planning
Objective: Define the purpose of project planning.
Product Scope is sometimes used interchangeably but specifically defines the features and functions of
the deliverables.
Perceived limitations and boundaries to a project are listed in the scope statement as project exclusions.
Four tools used to assign project team roles include experience, education, skills, and abilities.
Resource Leveling is the act of leveling the number of resources needed to be constant over a period of
time.
Key skills for project managers include leadership, teamwork, communication, negotiation & conflict
management, self-control, flexibility & creativity, professionalism, ethics, and decisiveness.

Module 19: The Work Breakdown Structure

Objective: Describe how a project’s work breakdown structure is created
WBS is used for:
• Organizing resources
• Assigning responsibility
• Identifying interactions and contingencies of tasks and how to assign
• Estimation of time and cost for budget
• Final confirmation of requirements
• Validation that everyone understands the scope
8/80 Rule means you do not assign anything that takes less than 8 hours or more than 80 hours.
WBS is done by program, project, deliverables, activities, tasks, and subtasks.
WBS is organized around Deliverables.
A WBS number is used as a coding scheme to associate the various tasks to activities, etc.
Tasks should be realistic and produce useful pieces of deliverables.
Hierarchical format is used to organize WBS by deliverables and creates a picture of what needs to be
completed.

Module 20: Planning for Risk

Objective: Define risk and risk management
Organization—resources, funding, priorities, competition with other projects, and reliance or
dependencies on other actions in the organization.
External influences—partners or contractors, regulation or government, competitive market influences,
customer expectations and availability, environmental factors such as weather, etc.
Technical—technology availability and cost, complexity of the technical requirements, performance and
reliability, quality, project requirements, costs, etc.
Risk Planning is the process of reviewing every aspect of the project to identify what risks may occur.

Module 21: Project Budgeting: Estimating Cost

Objective: Describe the different types of estimation techniques.
Top-Down Methods include Ratio and Apportion.
• Used at the defining phase
• Parametric Estimating is using current project and historical data
• Uses experience from prior projects to estimate the overall cost of the current project
• Apportion is used when moving from defining to planning
o The apportion method requires that an overall project cost be provided based on the
customer’s budget or similar projects. The overall budget is then allocated to the major
work areas required in the project.
Bottom-Up Methods start at the bottom of the WBS and aggregate estimates up the project.
• Cannot be created until WBS is completed
• Templates can be used to speed up the process
Baselining the budget means freezing the planned budget so the actual costs can be compared
throughout the remainder of the project. It is the approved budget and used as comparison.
Cost management measures how close actual costs are to the budget and to make adjustments as
needed.
Critical budget elements are:
• Amount of expenditure
• When expenditure is expected
• Included are:
o Direct costs
▪ Directly attributable to completing the project work / specific WBS activity
o Indirect costs (Direct overhead)
▪ Project costs shared across work activities
o Overhead
▪ Sometimes called Corporate Overheads since they’re not specifically one project
Negotiated middle ground is the balance stuck between two estimation methods.
Management Reserve is an amount added to the budget to cover unknown risks.
Bottom-Up estimations have a risk of overestimation when padding is over-applied.
Calendarized budgets include WBS, budget, and network diagram. They determine activities by week to
budget weekly expenses.
Two categories of duration techniques:
• Deterministic
o Used when durations are predictable
o Also called the One-Point method; experts provide single estimates
 o Too optimistic or too pessimistic can skew results
• Probabilistic
o Used when durations are uncertain
o Uses basic statistics to account for uncertainty
o Three-Point method
▪ Optimistic (O) + Pessimistic (P) + Most Likely (M) / 3 = Activity Duration
o Beta Distribution
▪ Assigns weight to the most likely (M) by a factor of 4
• O + 4(M) + P / 6
o Denominator is increased to 6 to account for the emphasis
▪ Uncertainty can be measured by:
• (P – O) = Activity Estimated Range
o P – O / 6 = Activity Estimated Standard Deviation
Learning curves are often applied in percentage improvement (10, 20, etc.)

Unit 7: Project Scheduling

Module 24: Activity Duration Estimating
Objective: Describe common techniques used to estimate activity duration.
Estimation begins when the WBS is developed.
Activities are the starting point for developing the schedule since they identify required specific works.

Module 25: Developing a Network Diagram

Objective: Describe the components of an activity network including their sequencing.
Relationships depend on deliverables, milestones, budgets, project constraints and requirements, and
external factors.
• Finish-to-Start (FS) – Successor cannot start until predecessor is finished*
• Finish-to-Finish Relationships (FF) – Successor cannot start until the first task is complete
• Start-to-Start Relationships (SS) – Successor cannot start until predecessor has started
• Start-to-Finish Relationships (SF) – Successor cannot end until predecessor has started
Gantt Charts
Lead or lag time is used to start tasks earlier or later than otherwise.

Module 26: Constructing the Critical Path

Learning Objective: Determine the critical path
Float (Slack) is the acceptable amount of time something can be delayed.
Total float is the difference between the finish and start date. This can be negative.
Free Float are activities not on the critical path that can be delayed.
Schedule compression is the reduction of project timeline to the least possible length for the least cost.

Module 29: Developing Effective Project Teams

Five stages of team development:
 • Forming
• Storming
• Norming
• Performing
• Adjourning

Module 31: Earned Value Management

Earned Value Management (EVM) is used to monitor project performance during the execution phase.
The value of actual work completed to-date is compared to the baseline to determine efficiency.