Project Management Tenttiharjottelu PDF

Project management tent övning. 1. Write about the Matrix organizational form. Draw a picture of it. 12p. (4x) Matrix Organizational Form is presented as a hybrid structure that combines the benefits of both functional and product structures, making it particularly suitable for project-driven c...

Project management tent övning. 1. Write about the Matrix organizational form. Draw a picture of it. 12p. (4x) Matrix Organizational Form is presented as a hybrid structure that combines the benefits of both functional and product structures, making it particularly suitable for project-driven companies. In this setup, project managers have a direct reporting line to the vice president and general manager, assuming complete responsibility and accountability for the success of their projects. Matrix management requires mandatory information sharing and often involves multiple people or units in the same work. Unlike in a project organization where the project leader holds decision-making authority, in a matrix organization, this authority is more spread, resting with the team as a whole. To ensure the effective development of a matrix organization, certain ground rules are essential. Participants must be fully dedicated to the project, ensuring their loyalty. The organization must facilitate both horizontal and vertical channels for commitments, and it's crucial to have quick and effective methods for resolving conflicts. The matrix structure is a blend of project and functional management styles, aiming to create synergy through shared responsibilities. However, it also brings challenges, most notably the need for a mutual understanding and ongoing negotiation between project and functional managers. This diagram showcases the interplay between project managers and functional departments, highlighting the intricate network of relationships that define the matrix organization.  2. In the book (Subchapter on “skill requirements for project and programs managers”) there are 10 different Skills that a Project Manager must have. Write on 6 such skills. 12p (2x) Team Building: The ability to create a cohesive team that works well together. Leadership: Providing direction and inspiration to team members. Conflict Resolution: Effectively managing and resolving disagreements and conflicts. Technical Expertise: Possessing the necessary technical knowledge relevant to the project. Planning: Skillfully planning and organizing project tasks and timelines. Organization: Being able to structure and coordinate different aspects of the project. Entrepreneurship: Demonstrating initiative and the ability to manage project risks and opportunities. Administration: Handling administrative tasks and procedures efficiently. Management Support: Gaining support from higher management for the project. Resource Allocation: Effectively distributing resources (time, money, personnel) for optimal 3. Write on 6 different Barriers to Project Team Development. 12p. (2x) (löysin vaa 3) Differing Outlooks, Priorities, and Interests: A major barrier occurs when team members have professional objectives and interests that differ from the project's objectives. This issue is further complicated if the team depends on support organizations with different interests and priorities. Role Conflicts: Team development is hindered when there is ambiguity over who does what within the project team and in external support groups. Such conflicts can lead to misunderstandings and inefficiencies. Unclear Project Objectives/Outcomes: When project objectives are not clear, it often leads to conflict, ambiguities, and power struggles, making it challenging to define roles and responsibilities clearly. 4. Write on Financial Compensation and Rewards for the Project Workers. 12p. (2x) Project workers often have job roles that are different from typical professional jobs, which makes it hard to fit them into standard job classifications. This is important because their level of authority and the number of people they manage might not fully show the wide range of responsibilities they have. Another issue is that project workers often report to two different bosses and are accountable to both. This dual reporting raises the question of who should evaluate their performance and decide on their rewards. It's not always clear who should make these decisions, which can complicate things. Figuring out how to reward project workers is also tricky. It's often hard to measure and define what it means to do a good job in project management. This makes it difficult to set up fair and effective reward systems. On top of this, project workers might need extra compensation for working overtime, traveling a lot, or living away from home. Bonus pay, which is extra money given for meeting certain goals, is especially sensitive. If not handled carefully, it can be unfair because many people contribute to the success of a project, and deciding who gets extra pay can affect the team's morale. Overall, paying and rewarding project workers involves considering their unique job roles, the challenge of dual reporting, and the difficulty in measuring their performance. These factors make it crucial to think carefully about how to compensate and motivate them effectively. 5. Write on Procurement, the two basic procurement strategies and the procurement plan. 12p. (3x) (This process involves two parties with different objectives interacting in a market segment. Effective procurement practices are crucial for increasing corporate profitability by leveraging quantity discounts, minimizing cash flow issues, and choosing quality suppliers. Often, procurement is centralized to standardize practices and reduce paperwork costs.) Two basic procurement strategies: Corporate Procurement Strategy: This strategy links specific procurement actions to the overall corporate strategy. An example is centralized procurement, where procurement decisions are made at a corporate level, often leading to standardized practices across the entire organization. Project Procurement Strategy: This strategy relates specific procurement actions to the specific needs and environment of a project. For instance, a project manager might be allowed to directly procure certain items for a project without involving the centralized procurement group. An example given is purchasing a small, specialized quantity of a chemical for a research and development project. Procurement plan: The procurement plan is a critical first step in the procurement process. This plan outlines what needs to be purchased or acquired, and details when and how these acquisitions should be made. The procurement planning process includes several important components: Defining the Project's Needs: This involves identifying what the project requires in terms of goods and services. Developing Procurement Documents: This includes creating a procurement statement of work, specifications, and a work breakdown structure. These documents provide a detailed description of the project’s requirements. Work Breakdown Structure (WBS) Dictionary: If needed, a WBS dictionary is prepared, which provides detailed information about each element in the work breakdown structure. Make or Buy Analysis: This analysis helps in deciding whether it is more beneficial to make a required item in-house or to buy it from external suppliers. Major Milestones and Schedule: The procurement plan should lay out the key milestones of the procurement process, along with the timing and schedule for these milestones. Long Lead Procurement Determination: This involves identifying items that need a long lead time for procurement and planning accordingly. Cost Estimating and Life-Cycle Costing: This includes estimating the costs associated with procurement and considering the life-cycle costs of the items to be procured. Qualified Sellers Identification: It's important to determine whether there are qualified sellers in the market who can meet the project’s requirements. Source Selection Criteria: Identifying criteria for selecting vendors or suppliers is a key part of the procurement plan. Risk Register Preparation: This involves preparing a list of potential project and procurement risks, known as a risk register. Developing the Procurement Plan: Finally, all this information is compiled into a comprehensive procurement plan, which guides the entire procurement process 6. Write on 5 different responsibilities a Project Manager has. 10p Project Planning and Scheduling: One of the primary responsibilities of a project manager is to create a detailed project plan. This involves defining project goals, setting timelines, identifying tasks and milestones, and allocating resources. They must also develop a project schedule, outlining when and how different aspects of the project will be completed. Team Leadership and Management: A project manager is responsible for leading and managing the project team. This includes selecting team members, assigning tasks, setting expectations, and motivating the team to achieve project objectives. The project manager also needs to foster a collaborative environment and resolve any team conflicts that arise. Budgeting and Resource Allocation: Managing the project's budget is a crucial responsibility. The project manager must estimate costs, allocate resources efficiently, and ensure the project stays within its financial limits. They also oversee the procurement of materials and services and manage contracts and supplier relationships. Risk Management: Identifying, assessing, and mitigating risks is a core duty of a project manager. They must foresee potential issues that could impact the project and develop strategies to minimize risk. This includes continuously monitoring risks throughout the project lifecycle and adjusting plans as necessary. Stakeholder Communication and Reporting: Effective communication with stakeholders is key. The project manager must keep stakeholders informed about project progress, decisions, and any changes to the project plan. They are also responsible for preparing and presenting project reports, which include performance metrics, progress updates, and future project forecasts. These responsibilities are essential for ensuring a project is completed on time, within budget, and to the required quality standards. A project manager's ability to effectively coordinate these aspects largely determines the project's overall success. 7. The book presents 5 Conflict Resolution Modes. Present and explain them shortly. 10p.(2x) Confronting (or Collaborating): This mode involves face-to-face meetings where conflicting parties work through their disagreements with a focus on problem-solving rather than combativeness. It's based on collaboration, where both parties aim to find a mutually beneficial solution. This approach is suitable when both parties can achieve their objectives, to reduce costs, create a common power base, or when there's trust and complementary skills. Compromising: In this mode, parties bargain to find solutions that provide some degree of satisfaction to both. It's often the result of confrontation and is seen as a 'give and take' approach. Compromise is used when a win-win situation is needed, the stakes are moderate, or to maintain relationships, especially when neither party can fully achieve their goals. Smoothing (or Accommodating): This approach aims to reduce the emotional aspects of a conflict by emphasizing areas of agreement and de-emphasizing disagreements. It doesn't necessarily resolve the conflict but encourages both parties to stay engaged in finding a solution. It's appropriate when the goal is to maintain harmony, reach an overarching goal, or when any solution would be adequate. Forcing (or Competing, Being Uncooperative, Being Assertive): This mode occurs when one party imposes a solution on the other, leading to a win-lose outcome. It's suitable in situations where one is confident in their position, in do-or-die scenarios, when stakes are high, or when quick decisions are needed. Avoiding (or Withdrawing): Avoidance is seen as a temporary solution and involves sidestepping the conflict. It's used when the stakes are low, when a party is not ready to confront the issue, to preserve neutrality, or in situations where delaying may lead to a more favorable outcome  8. What is a Best Practice (in Project Management) and what options do companies have for publishing such? 10p. (2x) A Best Practice in project management is defined as an action or activity that leads to a sustained competitive advantage. The book acknowledges the reluctance of some companies to publicly share their best practices due to the competitive advantage they provide. As a result, there are several approaches companies can take regarding their best practices: Sharing Knowledge Internally Only: Companies often use their intranet to share best practice information with employees. This approach might involve a specific group within the company, such as the project management office (PMO), controlling the access and distribution of this information. Hidden from All But a Selected Few: Some companies treat certain best practices as proprietary information, limiting access to a select group of employees. These practices often involve specialized forms, guidelines, templates, and checklists related to project management. An example might be restricted access to specialized project approval forms that contain sensitive financial data or strategic company information. Advertise to Customers: Another approach is to develop best practices brochures to showcase a company's achievements to customers. Additionally, companies may maintain an extensive best practices library that they share with customers, typically after a contract has been awarded. These approaches reflect different strategies companies use to manage and leverage their best practices in project management, balancing the need to maintain competitive advantage with the potential benefits of sharing knowledge and expertise 9. Write on the Life Cycles of a Project. 10p. The Life Cycle of a project is broken down into distinct phases. These phases represent the sequential stages that a project typically goes through from inception to completion. The life-cycle phases mentioned in the book include: Conceptualization: This initial phase involves brainstorming and developing the basic idea or concept of the project. It's about identifying and defining the problem and potential solutions. Feasibility: In this phase, the technical feasibility and overall viability of the project are assessed. This involves a detailed analysis of the project's goals, costs, potential risks, and benefits to determine if it should proceed. Preliminary Planning: Here, the broader outlines of the project are defined. This includes setting objectives, determining resources required, and outlining the project’s scope. Detail Planning: During this stage, detailed planning takes place, including the development of schedules, budgets, resource plans, and detailed project plans. Execution: This is the phase where the actual work of the project is carried out. It involves implementing the plans developed in the previous phases and managing the project's resources, time, and costs. Testing and Commissioning: The final phase involves testing the outcomes of the project to ensure they meet the required specifications and standards. After successful testing, the project is commissioned or handed over for use. Each of these phases is crucial to the project's success and requires careful management and oversight to ensure that the project meets its objectives, stays on schedule, and remains within budget 10.In the book 60 different Time Robbers are considered. Which 20 time robbers do You consider the most important? 10p. (3x)  11. Why is a Project Office usually needed? Write on the project office. 10p. Project Office is highlighted as an essential organizational entity designed to assist the project manager in carrying out their responsibilities. The project office plays a crucial role in ensuring the smooth operation of a project. It acts as the central hub for all project-related information, both for internal control purposes and for reporting to customers. This centralization of information is critical for maintaining a clear and consistent understanding of the project's progress and any issues that may arise. Another key function of the project office is to control the project's time, cost, and performance to ensure adherence to contractual requirements. This involves closely monitoring these aspects and making adjustments as necessary to keep the project on track. The project office also takes responsibility for ensuring that all work required for the project is properly documented and distributed to all key personnel. This documentation is vital for maintaining a clear record of the project's activities, decisions, and changes. Finally, the project office ensures that all work performed is authorized and funded according to the contractual documentation. This is a critical aspect of project management, as it ensures that the project remains compliant with legal and contractual obligations. Overall, the project office is indispensable in managing the complex and multifaceted aspects of modern projects. Its role in information management, control, documentation, and compliance underpins its necessity for effective project management. 12. Write on the Project Budget. What is a Management Reserve? 10p. The project budget is described as the culmination of the planning cycle and should be reasonable, attainable, and based on contractually negotiated costs and the statement of work. The budget's foundation can be historical costs, best estimates, or industrial engineering standards. It must include planned manpower requirements, contract allocated funds, and a management reserve. All elements of the budget should be traceable through a budget "log." A key component of the project budget is the management reserve. This is a portion of the budget set aside for unforeseen problems and contingencies that may arise during the project's execution. The management reserve is not part of the distributed budget, which is the normal performance budget time-phased and released through cost accounts and work packages. Instead, the management reserve is used for unexpected costs that are not accounted for in the initial planning stages. In summary, the project budget in project management is a comprehensive financial plan that includes various components, such as the distributed budget for planned expenses, the undistributed budget for potential changes, and the management reserve for unforeseen circumstances  13.A Project Manager must have Authority. What can Failure to establish authority result in and which are the most common sources of power and authority problems in a project environment? 10p The necessity of establishing authority for a project manager is emphasized, along with the consequences of failure to do so and common sources of power and authority problems in project environments. Failure to establish authority relationships in project management can lead to several issues: Poor Communication Channels: Inadequate authority can result in unclear or ineffective communication, hindering the flow of information. Misleading Information: Without clear authority, there can be confusion and misinformation. Antagonism from the Informal Organization: Lack of established authority may lead to resistance or opposition, especially from informal groups within the organization. Poor Working Relationships: It can cause strained relationships with superiors, subordinates, peers, and associates. Surprises for the Customer: Inadequate authority can lead to unforeseen issues or changes that affect the customer, often negatively. The most common sources of power and authority problems in a project environment include: Poorly Documented or No Formal Authority: A lack of clear, documented authority can create confusion and inefficiency. Power and Authority Perceived Incorrectly: Misunderstandings about the extent or nature of a project manager’s authority. Dual Accountability of Personnel: Conflicts arising from reporting to multiple leaders. Two Bosses (Who Often Disagree): Challenges due to conflicting directives from different supervisors. Project Organization Encouraging Individualism: Problems arising when the organizational culture favors individual efforts over team collaboration. Subordinate Relations Stronger Than Peer or Superior Relationships: Challenges due to stronger allegiance to fellow team members than to project leadership. Shifting of Personnel Loyalties from Vertical to Horizontal Lines: Loyalty shifts can undermine the project manager's authority. Group Decision-Making Based on the Strongest Group: Decisions influenced by the most dominant group rather than balanced input. Ability to Influence or Administer Rewards and Punishment: Difficulties arising from the project manager’s limited power in this area. Sharing Resources Among Several Projects: Complications due to resource allocation across multiple projects. These issues highlight the complexity of managing power and authority in a project environment and underscore the importance of establishing clear and effective authority for project managers 14.Write on Project Management of Small Projects in opposition to project management of Mega Projects. 10p. There's a distinction made between project management in small projects or organizations and that in large or mega projects. Here's a summary of these differences: Role Duality in Small Companies: In small companies, a project manager often has to wear multiple hats, sometimes acting both as a project manager and a line manager. This contrasts with large companies, where there may be a full-time project manager dedicated solely to the project. This dual role can lead to conflicts of interest, as functional managers may prioritize their departmental responsibilities over project objectives. Managing Multiple Projects: Project managers in smaller companies often handle multiple projects simultaneously, each with different priorities. In larger companies, project managers usually focus on one project at a time. The challenge in smaller companies is managing diverse priorities and ensuring that lower-priority projects also receive attention. Resource Limitations: Small companies often have limited resources, and project managers may have to work with whatever is available. In contrast, project managers in large companies may have the option to negotiate for better resources if they are not satisfied with what is initially provided. Importance of Interpersonal Skills: Project managers in small companies need strong interpersonal skills due to limited resources. They must be adept at motivating team members and managing relationships. Communication Lines: In smaller companies, project managers usually report directly to top-level executives, leading to shorter lines of communication. Larger organizations might have more levels of management, potentially complicating the communication process. Lack of a Dedicated Project Office: Small companies often do not have a dedicated project office, unlike large companies where such an office might consist of many people. In smaller companies, the project manager may effectively be the entire project office, requiring them to have extensive knowledge about all company activities, policies, and procedures. Higher Risk with Project Failure: In small companies, the failure of even a single project can have a significant impact on the entire company's financial health. Larger companies may have the capacity to absorb the loss of a multimillion-dollar program without severe repercussions. These differences highlight the unique challenges and dynamics of project management in small versus large project environments. The approach, resource allocation, and management style must be adapted accordingly to ensure the success of projects in these different settings  15.What actions can the Project manager and Team take in order to stimulate Project Success? Comment on 10 such actions. 10p. 16.What must a Project Manager do when planning a project and what is a Project Specification? 10p. Project Specifications are a crucial aspect of project planning. A project specification is a detailed description of the project's requirements and expectations. It includes information necessary for estimating manpower, equipment, and material needs. Small changes in specifications can lead to significant cost overruns, emphasizing the importance of accuracy and clarity in these documents. The project specification is often a part of the Statement of Work (SOW) and serves as a standard for pricing out a proposal. It ensures that there are no surprises for the customer later in the project. These specifications need to be the most current revision, and it's not uncommon for customers to hire external agencies to evaluate the technical proposal to ensure the correct specifications are being used. If specifications do not exist or are not necessary for a project, work standards should be included in the proposal. These standards might also appear in the cost volume of the proposal, and labor justification backup sheets may be included depending on the requirements of the Request for Proposal (RFP) or Request for Quotation (RFQ). Kerzner notes that government programs' high costs were often attributed to overly complex or outdated specifications. This highlights the need for streamlining specifications and educating those involved in their preparation to ensure future specifications are effective and accurate 17.Write on Monitoring and Controlling of Risks. 10p Monitoring and controlling of risks in project management are highlighted as critical components of the risk management process. Risk management, particularly in the context of projects, involves a continuous, disciplined process that includes several key activities: Planning: Initially, risk management involves planning how risks will be identified, analyzed, and managed throughout the project lifecycle. Identifying Risks: This step involves recognizing potential risks that could impact the project. These risks could stem from various sources, including technical challenges, resource constraints, or external factors. Analyzing Risks: After identifying potential risks, the next step is to analyze them in terms of their probability of occurrence and the potential impact on the project. Developing Risk Responses: Based on the analysis, appropriate responses to each identified risk are developed. This could involve strategies to mitigate, avoid, transfer, or accept the risk, depending on its nature and impact. Monitoring and Controlling: This is a continuous process where the project manager and the team keep track of identified risks and their responses. It involves regularly reviewing risks, assessing the effectiveness of risk response strategies, and making adjustments as needed. This step ensures that new risks are identified promptly, and existing risks are managed effectively. Supplementing Other Processes: Effective risk management supplements other project management processes like planning, budgeting, cost control, quality management, and scheduling. By focusing on proactive management, risk management helps reduce the likelihood of surprises that can turn into major problems. The level of risk management implementation can vary depending on factors such as the project's size, type, customer requirements, and its relationship to the organization's strategic plan and culture. Risk management is particularly crucial when stakes are high or there is significant uncertainty. By focusing on the future and developing appropriate plans of action, risk management becomes a key part of overall project management, helping to prevent potential issues from adversely impacting the project