Term
| Procurement Process Steps |
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Definition
a. Develop Specification of Materials and/or Services Required
b. Develop RFP
c. Get Approval for RFP
d. Get Approval to Publish/Advertize RFP
e. Advertize RFP
f. Hold Bidders Conference
g. Issue Addendums/Addenda if Needed
h. Receive Proposals
i. Evaluate Proposals
j. Select Vendor/s
k. Negotiate Contract
l. Recommend Award of Contract
m. Obtain Approval to Award Contract
n. Execute Contract
o. Manage Contract/Procurement
p. Close Contract/Procurement
q. Conduct Lessons Learned |
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Term
| Best Estimation of Time and/or Cost |
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Definition
Bottom-up using WBS & Historical Information (best)
Parametric Estimation
Verify with Quotations from Contractors
and/or other realistic methods. |
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Term
| Risk (Risky) Situations / Factors (things that represent risk) (know 10 of these) |
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Definition
• Required Skills Lacking Committed Staff
• Resource Over-commitments
• All Activities with Insufficient Resources
• Uncertain Activity Effort / Duration Estimates
• Uncertain Activity Cost Estimates
• Understaffed Activities
• Contract Risks
• Unique Resources Needs and the Availability of the Resources
• Part-time Participants (Team, workers, stakeholders, government agencies..)
• City Lead-times for Plan Checks, Inspections, Approvals, Corrections, etc
• Long Distance Team Members
• Impact of the Work Environment: Unions, Government Laws, etc.
• Budget Requirements that Exceed the Project Budget Constraint
• Outsourcing of Work
• Late Funding Requests for Required Training, Equipment Purchases, Travel, Leases, etc.
• Determine ALL Project Costs and Resource Needs
• Roll-up (Accumulate) ALL Project Costs
• Determine and Include Contingency Reserves and Management Reserves
• Determine and Cost all Known Future Changes that will affect Resources (people and money)
• Use Right Estimation Methods and Resources: Historical Information, Expert judgment, Rule of Thumb, WBS, the People who will DO the work, etc.
• Obtain Approval
• Obtain SIGNED Budget |
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Term
| Advantages of Outsourcing |
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Definition
• Less restrictive labor laws
• Less restrictive Environmental Laws
• Relieve local staff |
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Term
| Disadvantages of Outsourcing |
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Definition
• Late/ Poor Output
• Turnover/ Unhappy Employees
• Less control over the project/ requires extensive supervision |
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Term
| How to Deal with Resource Risk: Human Resource |
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Definition
• Before Acquiring Project Staff, Determine:
Skill Requirements – know what you need
Staff Ability
Staff Availability
Project Environment
Acquisition Circumstances; etc.
• Sources of Staff:
Outsourcing: Hire from outside, from another Division; Could be Temporary or Permanent |
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Term
| How to Deal with Resource Risk: Outsourcing |
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Definition
• Decide to Make or Buy
• Know your Company’s Process and Follow it – Procurement Department
• Observe Lead Times
• PMP: Plan Procurement, Conduct Procurement, Administer Procurement, Close Procurement |
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Term
| How to Deal with Resource Risk: Money |
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Definition
Bottom-up using WBS & Historical Information (best)
Parametric Estimation
Verify with Quotations from Contractors
and/or other realistic methods. |
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Term
| Reasons for Constraints Analysis |
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Definition
Project may not be Possible as-is
Project may be Over-constrained
Bottom-Up Results - May fail on some Project Objective (s)
Other Issues and Concerns May not be Accommodated/Accounted for |
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Term
| Primary Goals of Constraints Analysis |
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Definition
| Limit the difference between the given project objectives/constraints (e.g. Schedule, Resources, Budget) AND the Objectives/Constraints obtained from the results of project Bottom-Up and other realistic plans. |
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Term
| Things to consider BEFORE modification to Scope, Schedule, Resources |
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Definition
Consider these 2 things BEFORE Modification
-User/Market Demand
-Technology Possibilities: assess customer REAL needs and propose alternative
solutions
MODIFICATION: Counter-proposal to the original objective (NEGOTIATE): list and explain all benefits especially additional benefits of new solution/s |
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Term
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Definition
o List the requirements and sort them into a sequence from most essential to least essential
o Is/ Is not Analysis- revisit the list of items on the “is” list to validate each requirement is in fact essential. Determining what portion of the scope can be dedicated to the “is not” list will effectively limit scope |
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Term
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Definition
o Using Float- reduce the amount of float on non-critical activities. Shift some of the work from Critical Path Activities to staff assigned to Non-Critical Activities
o Revising Activity Dependencies (AKA Fast tracking, and Simultaneous Development)- break down critical path activities to create smaller activities that can run parallel while remembering to allow integration time – but also to make sure that the integration time does not suck up all the time intended to be saved. Also some finish-start activities can be changed to start-start with lag
o “Crashing” the Schedule- adding more staff, paying for overtime, hiring outside staff, paying to expedite shipping or other services, upgrading or replacing slower equipment, spreading work over more shifts etc… for activities which can be shortened by these methods while keeping the point of diminishing return from occurring. |
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Term
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Definition
o Resource Analysis- Rearrange work assignments to use available staffing more fully and effectively; ask employees what would make them work faster (i.e. telecommuting); minimize distractions by co-locating team, or secluding team
o Training Additional Staff- training people to work on tasks that only one person is expert at to spread the work and minimize risk
o Staffing Alternatives- subcontracting, assigning more staff from within the organization for high priority projects, find more efficient staff, giving staff additional resources (faster computers, automated systems, new equipment, etc) |
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Term
| Seek Missing/ Additional Risks |
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Definition
Brainstorming
Retrospective Analysis
Scenario Analysis (related to Assumption Analysis, SWOT, …)
SWOT
Assumption Analysis (review assumption for current validity, risks,…)
Expert Interviews
Root-Cause Analysis |
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Term
| Use of WBS in Risk Analysis |
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Definition
• Most powerful tool for Project Planning
• Size of WBS…large projects lead to more/great risks
• Breaks the work down into more manageable pieces (work packages)
• Creates Network Diagram for Risk management (e.g. Critical Paths)
• Used for determining Accurate Schedule for Project Management
• Used for determining Accurate Cost/Budget
• Used for Defining / Determining Scope
• Used for Detecting/Identifying MISSING WORK (minimizes Scope Gaps)
• Helps to Assign Ownership: allows proper sharing and allocation of work
• Allows fitting-in of Risk Breakdown Structure
• Allows categorization/prioritization of work so that it is assigned to the right persons/departments/groups
• Identifies dependencies so that these are properly coordinated and tracked
• Minimizes Scope Creep (Identifies Unnecessary Work for elimination)
• Provides verification that commands approval
• Provides “buy-in” leading to BARF.
• Use for Team Building and keeping everyone on the same page
• Used for Project Planning
• Used for Communications / Communications Management
• Used for Project Tracking
• Used for Project Reporting
• Used for Monitoring and Control of project
• ETC |
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Term
| Use of Network Diagram in Risk Analysis |
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Definition
• Helps Reveal/Identify Critical Paths (CPs); Near-CPs; Critical Activities (ACs)
• Displays Float/Slack
• Convergence/Divergence Points (Fan-ins and Fan-outs)
• ES, EF, LS, LF are displayed to allow better schedule management/control
• Visual Display of Activity Sequence/Order |
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Term
| Best Method for Estimating Schedule/ Budget |
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Definition
| WBS using Historical Information |
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Term
| Quantitative Analysis/ Types of |
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Definition
• Probability and Impact (PI) Analysis
• Impact in Cost and Time
• PERT Analysis
• Decision Tree (looking for alternatives, possibilities or other solutions)
• Delphi Technique
• Expert Judgment / Expert Interview / Consult Peers / Colleagues: may be subjective if not quantified
• Sensitivity Analysis
• Simulations and Modeling
Monte Carlo – time and cost |
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Term
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Definition
• Categorizing and Qualifying- rank with at least 5 categories, more subjective, drop off bottom risks but assign to a team member for monitoring
• Types of Qualifications
• At least 5 levels of Qualifications
• Subjectivity of Qualifications
• Best Sources for Developing Qualification Criteria: Historical Information, Expert Judgment |
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Term
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Definition
| A process which generates hundreds or thousands of performance outcomes based on probability distributions for cost and schedule on individual tasks. The outcomes are then used to generate a probability distribution for the project as a whole. |
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Term
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Definition
| A quantitative risk analysis and modeling technique used to use to determine which risks have the most potential impact on a project. It examines the extent to which the uncertainty of each project element affects the objective being examined when all other uncertain elements are held at their baseline values. The typical display of results is in the form of a tornado diagram. |
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Term
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Definition
| A diagramming and calculation technique for evaluating the implications of a chain of multiple options in the presence of uncertainty |
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Term
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Definition
| An information gathering technique used as a way to reach a consensus of experts on a subject. Experts participate in this technique anonymously through a questionnaire circulated and then re-circulated for further comment by a facilitator. Helps reduce bias. |
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Term
| Cause and Effect Diagrams |
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Definition
| A decomposition technique that helps trace an undesirable effect back to its root cause |
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Term
| Probability /Impact Analysis |
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Definition
| Assessing each risk's probability x impact - sometimes utilizing a chart or matrix- in order to quantify the risks |
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Term
| Root cause analysis (Goal) |
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Definition
| Goal is to determine and analyze the Cause/s and Effect/s of each Risk: generally ONE effect at a time |
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Term
| Root Cause Analysis (Methods) |
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Definition
Select risks considered significant based on Risk Register
Methods: Fishikawa; Brainstorming |
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Term
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Definition
Developed by Dr. Kaoru Ishikawa (1960s)
Main tool of Root-Cause Analysis
Used for analyzing the root causes of the factors responsible for the risks
Can be used for Lessons Learned and/or for Retrospective Analysis |
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Term
| What to do with identified causes in Root Cause Analysis |
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Definition
Who – Owner of the risk: person assigned to deal with it.
-What –Specific actions/activities to achieve the Action Plan.
-When – Target completion / deadline for the Action Plan activities.
-How – resources (people, tools, equipment, money...) needed
-Why – Eliminate/mitigate/transfer/Exploit, Accept… the risk |
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Term
| Strategies for Risk (+ or-) |
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Definition
SHARE +
TRANSFER -
ENHANCE +
EXPLOIT +
AVOID -
ACCEPT +/-
MITIGATE - |
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Term
| Mitigate Risk (plus a few examples) |
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Definition
Mitigation – lowering the probability and/or the potential impact
Good Communication
Use SMEs
Fortify Sponsorship Support
Involve Users / Stakeholders
Prioritize on Decisions |
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Term
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Definition
| ( “the other side of” Mitigation) -- Increase the probability and/or increase the potential impact |
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Term
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Definition
May Need Risk Breakdown Structure
Evaluate each approach (Avoidance, Mitigation, Transfer, etc)
Determine EFFECT on the Triple Constraints: cost, time, etc.
Compare the impacts
Determine Weight of EACH Constraint
Choose the best approach
Can Use multiple approaches and/or backup/s: if the rented crane malfunctions, we can use ours or call a nearby supplier for one. |
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Term
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Definition
• Before the Risk Ocurs–
Planning and Prevention: research, re-evaluate
Monitor the Risk Trigger – be prepared.
• After the Risk Occurs –
Work on Risk Recovery: use Contingency Plans |
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Term
| Contingency Planning (how to) |
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Definition
-Develop Recovery Plan
-Develop Fallback Plan (plan “B”)
-Assign Risk Owner
-Monitor Risk Trigger
-Respond Quickly
-Continual Sensible Evaluation: Progressive Elaboration |
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Term
| Contingency (Contingent Response) Planning |
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Definition
best for unacceptable residual risks and for serious problems where all other approaches are too expensive, impractical, unknown, ...
A Contingency Plan is Planned in advance of the occurrence of the risk event |
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Term
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Definition
Workaround – when a negative risk (UNEXPECTEDLY) occurs, develop a workaround (see the definition for Workaround)
A workaround is NOT planned in advance of the occurrence of the risk event |
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Term
| 2 times to use workaround |
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Definition
| 1) contingency was ineffective or 2) for unknown risk occurance |
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Term
| Risk Analysis Includes 5 Steps |
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Definition
1) Identify Risk
2) Qualify Risk
3) Quantify Risk
4) Risk Response Planning
5) Continuous Risk Managament |
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Term
| secondary and residual risk plus example |
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Definition
secondary is a risk that occurs as a result from a risk response (ie trip over the stake in the ground holding the tent sheltering from risk:rain)
residual risk- leftover risk after your implemented your risk response plan (ie getting from car to tent) |
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Term
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Definition
C2HPRIS3Q
Cost
Communications
Human Resources
Procurement
Resources
Integration
Stakeholder
Schedule
Scope
Quality |
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