Chapter10 - exercise3

Questions:

How many different communications channels does a project team with six people have? How many more communications channels would there be if the team grew to ten people?

Answers:

There is a formula for determining the number of communications channels where n is the number of people involved as follows:

Number of communications channels = (n (n-1)/2

Therefore, a project team with six people has 15 different communications channels; if the project team grew to ten people has 45 different communications channels.

1. n=6 , (6(6-1)/2) = 15 (communication channels)

2. n=10 , (10(10-1)/2) = 45 (communication channels)

References

1. Schwalbe, K. (2006). Information technology project management (4^th ed.). Boston Massachusetts: Thomson Course Technology.

Chapter9 - exercise3

Questions:

Read Douglas Ross’s article “Applying Covey’s Seven Habits to a Project Management Career” (see the sixth Suggested Reading in this chapter) or another article that describes the seven habits. Summarize three of Covey’s habits in your own words and give examples of how these habits would apply to project management.

Answers:

Habit One: Be Proactive.

According to Covey stated that “proactive means implementing your ability/power to choose and focus on those things you can control and influence your “circle of influence.”” However, how does this habit relate to effective project management? As proactive project management is distinguished from other disciplines by a management focus on the "circle of influence", (Covey, 1996); therefore, the proactive project manager usually has four competencies including decision maker, marketeer, problem solver, and team builder to present this habit.

1. The Project Manager as Decision Maker.

The project manager is as a decision maker, the effective project manager is decisive for a project success. The project manager shall have the proper perspective and the drive to decide what is right decisions for completing the project goals from initiative, planning, executing, controlling, and closing. For example, when the project manager is going to initiate the project processes before, he/she shall be proactive to realize that risk management influence the project processes choices and decisions while address risk from a holistic viewpoint that help project managers to effectively evaluate and make good project decisions to achieve the project successfully.

2. The Project Manager as Marketeer

Usually, initiating the project is following by the company’s business goals, so the effective project manager is business-oriented and as marketeer. For example, depending on the company’s business goals, the project manager would identify and develop ways to achieve their business goals such as how satisfy their clients and customers expectation to increase the company’s profits. As Covey (1996) stated that the goals do not exist to create/add more value without a proactive project manager.

3. The Project Manager as Problem Solver

Within the project processes, a project manager is as problem solver accountable for any insurmountable problems to complete the project successfully. For example, when the organizational design inhibits the formal authority of the project manager to execute effective problem-solving actions, the project manager must be proactive in the use of other forms of influence to solve problems while implement the completion of the project success (Covey, 1996).

4. The Project Manager as Team Builder

In order for completing the project success, any project shall be a team work effective than work alone. As we know a proactive-oriented team members can support the project manager in controlling project cost, schedule and scope management issues much more effectively than any project management software package can. Therefore, the proactive project manager establishes rewards and incentives for encouraging proactive behavior of team member toward ensuring project success.

Habit Two: Seek First to Understand, Then to Be Understood.

"This habit is relevant to all communications, including communication with customers, team members, suppliers and subcontractors and upper management.” (Covey, 1996). According to Covey mentioned that project managers have been trained mostly in reading, writing, speaking, but may lack of communication habit of active listening. While every project initiation is business-oriented and based on customers’ demands, so that project shall be structured a two way communication - B2C communication model. Nevertheless, if the project manager has not good communication skill, who fails to manage communications that will become a bottleneck or will create bottlenecks and can possibly disservice to the project. Therefore, the project manager shall listen and understand carefully what customers’ requirements and expectation, then summarizing and rephrasing what he/she heard in order to clarify his/her understanding of the other’s position or feelings documented in the project processes. After that the project manage can use PERT diagram and CPM network diagram to present how the project is going to be completed for customers understanding.

Habit Three: Synergize.

Whereas any project is team work, “team work is more effective by partnering than by working alone.” (Covey, 1996) Synergize is the essence of project management accordingly. While the project manager is a team builder and leader, the team builder uses all available resources to create value for clients and customers with team members; moreover, the team leader guides team members and coordinate a diverse and divergent perspective from team members to develop creative solutions to existing or potential problems. In fact, the project value is enhanced as the team works together, and the goal is to far exceed the potential output of the individual team members; therefore, as Covey (1996) stated that “team building is one of the highest priorities of a project manager.”

In conclusion, according to Douglas Ross’s article mentioned Covey’s seven habits to a project management career, a project manager plays an important role within implementing a project success. The project manager can be a decision maker, marketeer, problem solver, and team builder with habits. There three habits are listed. First, project managers should be proactive to realize that risk management, customers’ requirements, business goals and team members’ effort influence project initiation. Second, the project manager should seek first to understand, then to be understood by project technical tools such as PERT diagram and CPM network diagram these tools exhibit the project processes understood for customers. Third, the project manger should behave that project success and value is team work together.

References

1. Ross, D. (1996). Applying Covey’s Seven Habits to a Project Management Career. PM Network, Project Management Institute, 26-30. Retrieved April 1996, from http://www.welchco.com/02/14/01/60/96/04/0105.HTM

2. Schwalbe, K. (2006). Information technology project management (4^th ed.). Boston Massachusetts: Thomson Course Technology.

Chapter8 - exercise2

Questions:

Create a Pareto diagram based on the information in the table below. First, create a spreadsheet in Excel, using the data in the table below. List the most frequent customer problems first. Add a column called “% of Total” and another one called “Cumulative %.” Then enter formulas to calculate those items. Next, use the Excel Chart Wizard to create a Pareto diagram based on this data. Use the Line – Column on 2 Axis custom type chart so your resulting chart looks similar to the one in Figure 8-1.

Answers:

See the Figure 1. Pareto Diagram.

Figure 1. Pareto Diagram

References

1. Schwalbe, K. (2006). Information technology project management (4^th ed.). Boston Massachusetts: Thomson Course Technology.

Chapter7 - exercise1

Questions:

Given the following information for a one-year project, answer the following questions. Recall that PV is the planned value, EV is the earned value, AC is the actual cost, and BAC is the budget at completion.

PV = $23,000

EV = $20,000

AC = $25,000

BAC = $120,000

a. What is the cost variance, schedule variance, cost performance index (CPI), and schedule performance index (SPI) for the project?

b. How is the project doing? Is it ahead of schedule or behind schedule? Is it under budget or over budget?

c. Use the CPI to calculate the estimate at completion (EAC) for this project. Is the project performing better or worse than planned?

d. Use the schedule performance index (SPI) to estimate how long it will take to finish this project.

e. Sketch the earned value chart based for this project, using Figure 7-5 as a guide.

Answers:

Table 1. Earned Value Formulas

Source: Schwalbe, 2006, p.272.

a. According to Table 1. Earned value formula, the results of the cost variance, schedule variance, cost performance index (CPI), and schedule performance index (SPI) are shown in the following:-

Cost variance (CV) is the earned value minus the actual cost.

CV = EV – AC = $20,000 – $25,000 = -$5,000

Schedule variance (SV) is the earned value minus the planned value.

SV = EV – PV = $20,000 – $23,000 = -$3,000

Cost performance index (CPI) is the ratio of earned value to actual cost and can be used to estimate the projected cost of completing the project.

CPI = EV / AC = $20,000 / $25,000 = 0.8 x 100 = 80%

Schedule performance index (SPI) is the ratio of earned value to planned value and can be used to estimate the projected time to complete the project.

SPI = EV / PV = $20,000 / $23,000 = 0.869565 x 100 = 86.957%

b. The project is not working well. According to Schwalbe (2006, p.272) stated that “if CV is a negative number, it means that performing the work cost more than planned. If a negative SV means that it took longer than planned to perform the work.” Moreover, “if the CPI is less than one or less than 100 percent, the project is over budget, and if the SPI is less than one or 100 percent, the project is behind schedule. Therefore, according to the project calculated CV equals -$5,000, SV equals -$3,000, the CPI is 80% less than 100 percent, and the SPI is 87% less than 100 percent, so that the project is both over budget and behind schedule.

c. As a result of the formula use the CPI to calculate the estimate at completion (EAC) for this project showed as below, the calculated EAC is $150,000 more than planned $120,000, so that the project is performing worse than planned, because if the project goes as planned, it will finish in 12 months and cost $120,000.

EAC = BAC / CPI = $120,000 / 0.8 = $150,000

d. According to the formula of estimating time to complete this project as below:

SPI = 12 months / SPI = 12 / 86.957% = 13.8 months

As a result of SPI, it will take 13.8 months to finish this project.

e. Sketch the earned value chart based for this project, using Figure 7-5 as a guide.

See Figure 1. Earned Value Chart for Project after Five Months.

Figure 1. Earned Value Chart for Project after Five Months

References

1. Schwalbe, K. (2006). Information technology project management (4^th ed.). Boston Massachusetts: Thomson Course Technology.

Chapter6 - exercise2

Questions:

Consider Table 6-3, Network Diagram Data for a Small Project. All duration estimates or estimated times are in days; and the network proceeds from Node 1 to Node 9.

a. Draw an AOA network diagram representing the project. Put the node numbers in circles and draw arrows from node to node, labeling each arrow with the activity letter and estimated time.

b. Identify all of the paths on the network diagram and note how long they are, using Figure 6-8 as a guide for how to represent each path.

c. What is the critical path for this project and how long is it?

d. What is the shortest possible time it will take to complete this project?

e. Review the online tutorials for Gantt and PERT charts in the third Suggested Reading by Mark Kelly in this chapter. Write a one-page paper with your answers to the questions in the tutorials. Also include any questions you had in doing the tutorials.

Table 6-3. Network Diagram Data for a Small Project

Answers:

a. Activity-on-Arrow (AOA) Network Diagram for a Small Project.

Figure 1. AOA Network Diagram for a Small Project

b. Determining the critical path for this Small Project.

Note: All duration estimates or estimated times are in days.

Path 1: A-B-E-H-K Length = 2+2+2+2+2 = 10 days

Path 2: A-C-F-H-K Length = 2+3+3+2+2 = 12 days

Path 3: A-C-F-I-J-K Length = 2+3+3+5+1+2 = 16 days

Path 4: A-D-G-J-K Length = 2+4+6+1+2 = 15 days

c. What is the critical path for this project and how long is it?

Since the critical path is the longest path through the network diagram, Path 3, A-C-F-I-J-K, length is 16 days that is critical path for this Small Project.

d. What is the shortest possible time it will take to complete this project?

Path 1, A-B-E-H-K, length is 10 days, that is the shortest possible time taken to complete this Small Project.

e. Tutorial Questions & Answers.

Figure 2. A PERT chart drawn to show the development of a system

QUESTION 1: Which tasks are on the critical path of the PERT chart above?

Answer:

A-B-D-F-I Length is 2+3+3+3+3 = 14 days. (the longest possible path).

QUESTION 2: What is the slack time for tasks C, D and G?

Answer:

Task C: C-E Length = 1+4 = 5 days

While the top pair of task C-E is being done at the same time as the bottom pair of task D-F. Task C-E takes 1+4 = 5 days. Task D-F takes 3+3 = 6 days, so task C-E will finish one day early before task D-F finish. Therefore, either task C or task E could take one extra day to finish the project, and the slack time is one day for task C.

Task D: D-F Length = 3+3 = 6 days

Whereas task D is on the critical path, but critical tasks have no slack while they cannot run overtime without affecting the ending date of the project. Therefore, task D has no slack time accordingly.

Task G: G-H Length = 2+5 = 7 days

Task G-H takes a total of 7 days. While task B-C-E takes 3+1+4 = 8 days and task B-D-F takes 3+3+3 = 9 days. So, task G could run an extra 2 days before it caused delays, since it had to wait for task B-D-F to finish the project. Therefore, the slack time is 2 days for task G.

QUESTION 3: the person working on task C tells the project manager he can't start work until one day after the scheduled starting date. What impact would this have on the completion date of the project? Why?

Answer:

If the person cannot start work until one day after the schedule starting date, the impact would cause tasks C and E to start one day late, but would not have impact on the completion date of the project while task C-E has one day of slack to be used and the other concurrent tasks D, F joined up to begin task I.

QUESTION 4: Task A will be delayed by 2 days because some equipment has arrived late. If the project manager still wants to finish the project within the original time frame, he will need to shorten the time for one or more of the tasks. What steps can he take to reduce the number of days allocated to a task?

Answer:

If the project manager wants to finish the project within the original time frame because task A will be delayed by 2 days, then he/she could put more people to work on it, and people could work more hours in a day or company could increase the efficiency of production (e.g. automating a manual task).

QUESTION 5: The project manager decides to reduce the time needed for tasks D and F by one day each. How effective will this reduction be in achieving his aim of maintaining the original finish time for the project?

Answer:

If the project manager decides to reduce the time needed for tasks D and F by one day each, so the old critical path from 14 to 12 days. However, tasks D and F are no longer on the critical path, the new critical path A-B-C-E-I is the longest at 13 days. Therefore, the completion date of the project will be shortened by one day earlier than originally.

References

1. Kelly, M. (2006). Project Management Tools: Gantt Charts and PERT Charts, McKinnon Secondary College, Australia. Retrieved March 4, 2006, from http://www.mckinnonsc.vic.edu.au/la/it/ipmnotes/ganttpert/

2. Schwalbe, K. (2006). Information technology project management (4^th ed.). Boston Massachusetts: Thomson Course Technology.

Chapter5 - exercise1

Question:

Use PowerPoint, Visio, or similar software to create a WBS in chart form (similar to an organizational chart – see the sample in Figure5-2).

Assume the level 1 categories are initiating, planning, executing, controlling, and closing. Under the executing section, include level 2 categories of analysis, design, prototyping, testing, implementation, and support.

Assume the support category includes level 3 items called training, documentation, user support, and enhancements.

Result is as shown in Figure 1 Resulting WBS in chart form.

Figure 1. Resulting WBS in chart form.

References

1. Schwalbe, K (2006), Information technology project management (4^th ed.). Sydney: Thomson Course Technology.

Chapter4-exercise3

Perform a financial analysis for a project using the format provided in Figure 4-3. Assume the projected costs and benefits for this project are spread over four years as follows: Estimated costs are $100,000 in Year 1 and $25,000 each year in Year 2, 3, and 4. Estimated benefits are $0 in Year 1 and $80,000 each year in Year 2, 3, and 4. Use an 8 percent discount rate. Create a spreadsheet (or use the business case financials template provided on the companion Web site) to calculate and clearly display the NPV, ROI, and year in which payback occurs. In addition, write a paragraph explaining whether you would recommend investing in this project, based on your financial analysis.

Understanding the economic climate and rapid pace of change in businesses and technologies, top management usually have certain recommendations for the length of the payback period of an project investment or appeal to focus on delivering positive financial result quickly while they create a project plan, then they might require all information technology projects to have a payback period of less than two years or even one year, regardless of the estimated NPV or ROI (Schwalbe, 2006). However, because sometimes many crucial projects cannot achieve a payback so quickly or reap a profit in a short time period, that is top management worries and don’t want to continue investing the project, therefore, the organization must also consider positive long-range goals when making technology investments (Schwalbe, 2006). Consequently, according to this financial analysis results as shown in Table 1 financial analysis and Figure 2 charting the payback period, the estimated NPV=41,740, ROI=25% and the cumulative benefits in payback chart is going to have positive number in fourth year. Even though this project needs three years more than two years to get benefits, but I would recommend investing in this project based on this financial analysis, because its calculated cash flow is positive growth.

Table 1. Financial analysis.

Figure 2. Charting the Payback period.

References

1. Schwalbe, K (2006), Information technology project management (4^th ed.). Sydney: Thomson Course Technology.