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APPENDIX 8

Sample Examination Questions 2: Bullet Point Answers

1.1 Project ManagementDefinition of project in BS 6079-1Introduction of change to meet specific benefitsDefined start and finishTime, cost, and quality/performance requirementsProject management is:Planning, monitoring, and controlling all aspects of a projectMotivation of all involved to achieve objectives

1.2 Programme ManagementDefinition of a programme:A collection of related projectsAdvantages:Coordinate resourcesAssign prioritiesOversee project managersReduce riskPrepare overall milestone planResolve conflicts between project managers

1.3 Portfolio ManagementIf projects are not related, it is portfolio managementPrioritize projects against needs of organizationAllocate resources and eliminate bottlenecksAssess risks of projects in portfolioDecide on timing of project startsMonitor performance of all projectsEnsure good cash flow and profitabilityCarry out cost–benefit analysis of projects

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1.4 Project Context EnvironmentContext within which project is undertakenTakes account of internal and external forcesClient, company, contractors, suppliers, consultants, public, end users, etc.PESTLE (Political, Economic, Sociological, Technical, Legal, Environmental)

1.6 Project OfficeCollection and collation of reports and time sheets, etc.Administrative support to project managerDissemination of instructionsOperation of configuration management (CM) systemAdministration of change controlLibrary for standards and proceduresRecords progress informationProduces curves and tabular information for use by project managerWrites up and distributes minutes of meetings

2.1 Project Success and Benefit AnalysisIdentify and assess benefitsDefine benefits and agree on method to measure benefitsSet success criteriaSet and monitor key performance indicators

2.1a Why Do Projects Fail?Poor planning and cost controlIncompetent project managementSponsor support lackingClient makes too many changesChanges too large or extensiveLate safety requirementsCosts underestimatedLack of change controlLax CMEnvironmental changesUnforeseen climatic conditionsIntegration problemsTechnical and teething problemsInadequate resources of staff and equipmentPoor working conditions

Sample Examination Questions 2: Bullet Point Answers 3

Uncooperative line managementSabotage and political upheavalCost, time, and performance requirements not metInadequate support from top managementInadequate specificationLoose agreement with clientLoose contractual conditionsIll-trained staff or operativesFundamental design faultsLate deliveries of information and equipmentInsufficient inspection and expeditingPoor cash flowInsolvency of subcontractorUnclear original brief causing misunderstandingCommissioning problems

2.2 Stakeholder ManagementPositive stakeholders: project team, client, contractorsNegative stakeholders: pressure groups, environmental groups, planning authoritiesInfluence of stakeholders to be assessed, e.g.:

Power to affect projectFinancial muscleMalleabilityPersonal involvementVested interestPolitical bias or affinityStakeholder prioritization

2.4 Project Management PlanPlan reflects PM's understanding of projectShould be written by PM. This enables him to fully understand the sponsor's

requirementsMust be updated regularly with good CMIs in effect ‘bible’ of project and is owned by PMCovers: Why, What, When, How, Where, Who, and How much (Kipling poem)Not to be confused with a time schedule (plan)Can be known by other names by different companiesContents well set out in BS 6079 page 32 (copy in manual)

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Contents to include:Reasons for planning, baseline programme, responsibility matrix, document

distribution schedule, procedures for monitoring and control, resource allocation, network preparation, estimating, risk management, health and safety, change control, CM, etc.

2.5 Risk ManagementRisk management plan, diagrams, P-I 3 × 3 matrix, risk log, techniquesRisk management process, software tools, Monte Carlo, @ Risk, Predict, 3-point estimatingTypes of risk, political, economic, technical, security, environmentalIdentification, techniques, brainstorming, checklist, prompt list, interviews, work

breakdown structure (WBS), DelphiAssessment, priorities, impact, probability, SWOT (strengths, weaknesses,

opportunities, threats), decision trees, Ishikawa diagramsQualitative analysis, quantitative analysis, risk owner, risk registerRisk management should be initiated at start of projectAll projects have riskRisks can be:Commercial, political, technical, safety, security, resources, approvals, environmental,

climatic, culturalRisk identificationRisk history or diaryRisk ownerRisk log or registerQualitative analysisQuantitative analysis, Monte Carlo, @Risk, Predict,3-point estimatingImpact/probability matrixH, M & L assessmentRisk identification, brainstorming, checklists (See 2.3b)Managing riskMitigation, transference, insurance, reduction, elimination, deference, acceptance

Contingency

2.5a Risk Management PlanIntroduction. Why risk management, company policyPurpose of process. Client requirement, environmental, health and safety, project viability

Sample Examination Questions 2: Bullet Point Answers 5

Scope of process. Political, Economic, Sociological, Technical, Environmental, LegalDescription of projectSpecific aspects to be covered. Innovations erection, finance, sabotage, securityType of organization. Functional matrix, task forceRoles and responsibilities. Managers, risk ownersTools and techniques required. Monte Carlo, @Risk, Predict, etc.Deliverables. Risk register, matrix, action plans, contingency plans, etc.

2.5b Risk IdentificationAssumption Analysis

Specific, quickSubjective, related to assumptions, restricted

BrainstormingCost effective, wide ranging, involves participants, assists communication and

understandingThrows up wild ideas, requires good facilitation, risks may be exaggerated, group must

be restricted, participants must be chosen

Check ListsPast experience tapped, good coverage, focused on right areas, rapid responseRestricted to items on list, lacks originality, could miss new problems

Delphi TechniqueCan be conducted by mail or fax, taps expert opinion, possibility of agreementRequires the relevant experts, takes time, requires good co-ordination

Document ReviewsSimple to do, authoritative, very useful if document is a close-out reportCould take a long time, identification of risks may be difficult

InterviewsConfidential, specific, enables risks to be analyzed, allows discussionRequires good interviewing technique, time consuming, requires subsequent comparison

of results

Prompt ListSimilar to checklists

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QuestionnairesStructured questions and answers, encourage originality, can be answered at any time, allows for additional ideas if requestedRepetitions have to be compared, responses could be fatuous, could take time

SWOT AnalysisHighly focused, lists opportunities as well as threats, structuredNeeds good control, parts not necessarily risks

WBSEach stage or task can be investigated for risk content.

2.6 Quality ManagementQuality planningQuality assuranceQuality controlQuality standardsFitness for purposeMeets acceptance criteriaTotal quality managementRight first time and zero defectQuality circlesISO 9000Quality audits

2.6A Quality Tools

Quality Objectives Specifications

Quality systems Company systems, ISO 9000Quality plan Analysis, inspection, recording, degree of

testingQuality assurance Procedures, processesQuality control CheckingQuality manual Contains all the aboveChecking and testing Verification, sampling, validation, certificatesQuality audit Check that procedures are being adhered toQuality reviewsPareto analysis 80/20 rule

Sample Examination Questions 2: Bullet Point Answers 7

Quality Objectives Specifications

Cause and effect analysis, Ishikawa or fishbone diagram, decision treesBrainstorming (could lead to risk assessment)Check listsProcess flow sheetsConcentration diagramsActivity samplingRanking and ratingBathtub curvesPoka YokeQualification certificates e.g., welders qualification tests

2.7 Health and SafetyH and S standardsLaws: HSWA 1974 (Health and Safety at Work Act)Management of health and safetyRegulations 1992 covers:Safe plant and equipmentDangerous substancesSafe workplace and accessProtective clothingSafe environmentInformation and trainingReportingCDM (Construction, Design, and Management) RegulationsConsumer Protection Act 1987Common law duties (negligence) apply

3.1 Scope Management (WBS)Next stage from project life cycleDivides the project into manageable packagesCan be product-based or work basedShows hierarchy of work packagesLeads to assignment of work packages and resourcesA task-oriented family treeLeads to PBS, CBS, OBS and RBSHelps in creating a responsibility matrix

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Foundation for planning and critical path (CP) networkWBS called PBS in PRINCE methodologyGives better definition of workActs as checklist to find missing stages and areas of workGood basis for risk identification processDoes not show interdependenciesTeam members have good picture of main stagesTop–down and bottom–up estimatingLeads to network, bar chart, histogram, S curve

3.2 Time Management (Scheduling) (cpa)AoA or AoN (precedence) networks, estimating durationsLester diagramCP has zero floatTotal and free floatLeading to bar (Gantt) chartResource histogram, resource smoothing, peak reduction, and ‘S’ curvePERT3-point estimates for durationsMaximizing parallel activities

3.2a MilestonesImportant stagesPayment points (expenditures or receipts)Achievement pointsHigh-level programmeMilestone slip charts show record and predictionsMilestone scheduleMarked on Gantt chartsTarget on networksOften written into a contractApproval for change and date

3.3 Resource ManagementResource allocationResource histogramResource schedulingResource levelling due to constraintsResource smoothing uses up float

Sample Examination Questions 2: Bullet Point Answers 9

Replenishable resources and renewable resources

3.4 Budgeting and Cost ManagementCosting and monitoring methodsCash flow forecast (Outflow and inflow)Cash flow curvesCost breakdown structureSee ‘4.3’Budget preparationCommitmentsAccruals

3.5 Change ControlCustomer responsibility: impact assessment, evaluation, agreementSponsor responsibility: authorization, review, benefit assessmentProject manager responsibility: control procedure, monitoring, evaluation, implementationDifference between external and internal change, effect on budgetChange control process, stakeholder inputAll departments must assess time and cost effect of change on them

Key DocumentsChange request formChange record. This records the effects of the change on the projectChange control registerChange authorization. This gives the effect of the change on cost, time, and performanceFeedback to customer (who has right to cancel) after examining the consequences

3.5a Change Register (Change Log)Essential headings on change registerProject titleDate of request to changeName of instigatorDescription of changeReason for changeTime and cost estimates from each departmentPM's summary of effectsApproval of change and date

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3.6 Earned Value Management (EVA)Reasons for EVA:Shows difference between work planned, work booked (on time sheets), and work performedAbbreviations: BCWS, ACWP, and BCWP. Note: BCWS is planned (not budget)These abbreviations are now being phased outEV = BCWP = budget × % completeControl curves: budget, planned, actual, earned value, % complete,

efficiency (CPI)Interpretation and solution if CPI and SPI are negativeCalculations: CPI = BCWP/ACWP, SPI (cost) = BCWP/BCWSCost and time variances: cost variance = BCWP − ACWPTime variance = BCWP − BCWS; final cost = original budget/CPI;final time = planned time/SPI (time) (or SPI (cost))Should be geared to CP network, which can be updated from EVA feedbackIf returns of % complete are on time sheets, regular feedback is guaranteedComputer programs have been developed to do the calculations.

Advantages:Shows trends, shows estimating errors, predicts final cost and completion time using

curves and approximate calculations% complete of multidiscipline, multicontractor project possibleTrend can be seen early on in project and corrective action can be takenShows cost and time position on one reportShows % complete and efficiency on one graphical report

Weakness:Difficulty in assessing % completeWrong budget estimatesPoor feed back systemTime sheets essential

3.7 Information ManagementCollection and capturing of informationCollation and distributionDisseminationStoring and archivingProcurement and maintenance equipmentConfidentiality

Sample Examination Questions 2: Bullet Point Answers 11

4.3 Estimating

Subjective estimates (±20–40%)Parametric estimates (±10–20%)Comparative estimates (±10%)Analytical estimates (±5%)Bottom–up estimating (Normal for accurate estimating)Top–down estimating (Useful if cost cannot be exceeded)Schedule of rates (Needed to price variations)Bills of quantities (Starts at site clearance and ends at finishes)Contingencies (Usually given as a % of total)

4.5 Value Management and Value EngineeringFunctional analysisInvestigate alternative solutions to meet function requirementsVerbs and nouns techniqueEvaluationAcceptance, implementation, and audit

4.7 Configuration ManagementCovers documents, drawings, and componentsCM planningItem identificationControl of configuration itemsStatusVerificationAudit

5.1 Business CaseDefines ‘why’ and ‘what’ the requirements areOutlines objectivesOutlines cost, time, and performance/quality criteriaMight include success/failure criteriaShould include major risksCan have other names such as brief, scheme, statement of work, statement of requirementsOwned by sponsor or clientCould include investment appraisal and possibly DCF/NPV, etc.Should have assessed other options

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Should have identified and considered all other stakeholdersSubmitted to board for approval

5.1a Investment Appraisal DFC, NPVAdvantages: time value of money, compares competing projectsDisadvantages: complex, wrong estimates, relies on accurate discount rate

Payback:Advantages: simple, can be discountedDisadvantages: time value ignored, cash flow after payback period ignored.IRR, graphical solution, average return per annum, return on investment %Intangible benefits: marketing, impact on business, prestige, social benefits, environmental benefitsConsider other options, risks, accounting practices, stakeholder views

5.4 Procurement StrategyBased on value for moneyIncludes all feasible optionsSingle source supply or competitionPartnering or notTypes of contract: lump sum, remeasured, reimbursable, target, design, build, and operateIs construction included?Is delivery to site included?Standard or special contract conditionsTypes of pricing, firm, fixed, target, cost plus, reimbursable, schedule of ratesContractor selection criteriaContractor bid meetings, and attendees by contractorsMinimum and maximum number of biddersTender opening policyLetter of intent possibilitiesExpediting and inspection requirementsProcurement and delivery scheduleLiquidated damagesIncentivesDiscounts requiredCash flow and payment termsShipping restrictions INCO termsGuarantees and liabilitiesPackaging and storage requirementsSpares lists

Sample Examination Questions 2: Bullet Point Answers 13

Operating and maintenance manualsAfter-sales serviceLimitations of procurement areas—UK, EC, Western countries, country of final userLong lead itemsSignatures for different levels of contracts

6.1 Project Life CycleNo. of phasesStandard life cycles, BS 6079: conception, feasibility, implementation, operation,

terminationCommon phases:Initiation, conception, feasibility, definition, design, development, production,

manufacture, installation, implementation, commissioning, operation, disposalExtended life cycle includes disposal.Different industries have different life cyclesAdvantages:Ensures no unnecessary expenditureReview possible after each phase. Go or nogo gatesTriggers for further fundingEach phase has a control stage with checkpointsBasis for WBSPhases can be split again into stagesPhases called stages in PRINCE used in ITDifferent phases can have different project managersGives top management an overall picture of projectGives a rough progress position (crude bar chart)Phases can be costed for control purposesCan show up resource and continuity problemsShows milestonesDeveloped by sponsor and project manager

6.1a Project Life Cycle

Phase Document Issue Document

Conception Outline Business caseObjectivesConceptual briefCost–benefit analysis

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Phase Document Issue Document

Feasibility Research studies Feasibility reportCost analysisRisk analysisTechnical studiesResource availability

Definition Cost plan Design brief PMPWBSOBSProgrammePerformance criteriaSuccess/failure criteriaScheme drawingsRisk register

Design and development

Technical specifications Design and build documentsTechnical drawingsDetail programmeMaterial schedulesEquipment listsCost breakdownOperating manuals

Implementation Quality plan Progress and cost reportsCost reportsProgress reportsProduction programmesDetail networksResource histogramEVAChange recordsCash flow chartClaims registerClose-out report

Operations Acceptance documents Production reportsProduction recordsCost returnsDefect registerStock records

6.5 Handover and Close-outAcceptance by clientAcceptance certificateTransfer of responsibility to sponsor or operator

Sample Examination Questions 2: Bullet Point Answers 15

Transfer of ownership to clientDeliverables completed and handed overAcceptance certificate receivedOperating instruction handed overSpares lists handed overTransfer responsibility to user/clientMaterial disposal arranged. This covers: sell surplus material to client if possibleReturn surplus to contractor's storesReturn redundant office equipment and materialsSell unusable materials as scrapClear site, remove huts and temporary fencesMake good roads and other areas (stockyards)Complete all contract documentationComplete all audit trails and file documentsFile closeout report and index for easy accessArrange closeout party with client and other stakeholders(Party could be funded from scrap disposal income?)

6.6 Post Project Review and EvaluationReviews should be held throughout the projectCloseout meeting with project teamEvaluation against success criteriaPrepare postproject appraisal and write closeout reportInclude abstracts from project diary and site diary where necessaryHighlight problems encountered, cost and time overruns, special delaysReport on project team performanceRecommendations for future projects, learning from experienceEvaluate project management processEvaluate techniques employed

6.7 Organizations a. Functional b. Project (task force) c. Matrix (combination of (a) and (b))

6.7a Matrix Project ManagementAdvantages:Fast response to resource change, flexibleMore economical that task forceStronger specialist base, knowledge not lost

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Existing resources use state of art technologyCommon facilities (computer programs) sharedCareer prospects unchangedContract labor more easily taught and absorbedDisadvantages:More executive input required, possible conflict between PM and functional managerPossible resource priority disputes between projects and between projects and functionNot as integrated as a task forceLess commitment to project than departmentPersonnel have two bosses, conflicting prioritiesRequires more interdepartmental co-ordination which could be complexPM has not the same authority to commit resourcesPM not responsible for pay and rations

6.7b Project Management vs Functional Line ManagementAdvantages:Greater efficiency and effectiveness in employing tools and techniques used in project

managementOne person, the project manager, is responsibleSponsor knows at start what the deliverables will beSponsor can see the PMP and be assured the correct procedures are being usedDedicated manager in charge of cost, expenditure and programme, strong commitmentMore line organizations are moving towards project management for changeMonitoring and control through life of projectSingle line of communication with all parties, especially external partiesSingle line of reportingProject manager is trained to handle the stresses of changeLearning from experience through post-project reviewsProject management good training for top management due to wider visionLine managers may be distracted by having to deal with line management functionsSpirit of dedicated project team not present in functional organization, high motivationNo competition for resources from other departmentsDisadvantages:Less job security than in functional organizationAt times could be inefficient due to delays in informationCould develop parochialism and arroganceProject objectives could eclipse company objectivesNot as strong specialist skills as functional department

Not as efficient in resources as functional departmentReporting line not as clear as in functional department

Sample Examination Questions 2: Bullet Point Answers 17

6.8 Organizational RolesSteering group or steering committeeFunction of project office (if established)Role of client and end userRole of sponsorRole of project managerProject manager's charterStakeholdersContractors and suppliers responsibilities

7.1 CommunicationBarriers to communication:CulturalGeographical, locationLanguage, pronunciationBad translationJargonPerception, attitude, lack of trustPoor leadership, unclear objectivesMisunderstandingPersonality clashDislike of sender, selective listeningGroup thinkBad equipment or equipment failurePoor working environment, noisy officePoor document distribution system, lost filesUnnecessarily long messagesWithholding informationAssumptionsHidden agendaPoor knowledge retention

7.1a Overcoming Barriers in CommunicationSimple messages,Follow-up by testingConfirm in writingImprove office facilitiesBring team togetherImprove motivationMaintain equipment

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7.2 Team Building and TeamworkAdvantages of project team:Complementary skillsIncreased productivityProject manager supportInformal communicationsStrong identity with projectCommon objectivesMotivation for projectWill to succeedFocusTeam spiritOther methods used to build teams:Organized start, events, training, away days, discussions

7.2a Barriers to Team BuildingHigh staff turnoverPoor leadershipGeographical separationInternal conflict and unresolved conflictLow moraleLack of motivationIll-defined objectivesPoor environmentLack of trustToo many changesPoorly defined roles and responsibilitiesPoor communications

7.2b Team FeaturesCohesionLoyaltyMotivationTeam spiritFocusLeadershipInformal communicationComplementary skillsTechnical competence

Sample Examination Questions 2: Bullet Point Answers 19

Advantages:Common objectivesProject management supportWill to succeedIncreased productivity

7.2c Belbin Team RolesBalanced team, individuals in the correct slot. The roles are:PlantShaperResource investigatorCo-ordinatorMonitor evaluatorImplementerTeamworkerCompleter, finisherSpecialistNot always possible to find the correct type.Project manager must use resources available

7.2d Tuckman Team Phases a. Forming b. Storming c. Norming d. Performing e. Mourning

7.2e MotivationRecognitionAchievementAdvancementPromotionIncreased responsibilityPersonal growthPerksShare in profit

Work satisfactionMaslow's hierarchy of needsHerzberg's motivation theory

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7.3 Leadership and Leadership QualitiesAbility to influence rather than directNegotiation skillMotivationInitiativeCommunication skillsAbility to listenFairnessWider perspectiveDecision makingKeeps cool headDoes not panicAbility to adapt to changeIntegritySituational leadershipHersey & Blanchard

7.4 Conflict ManagementWithdrawingSmoothingConfrontingForcingCompromisingThomas & KilmanMediationConciliationAdjudicationArbitrationMitigation

7.5 NegotiationPlanning and case preparationSet minimum acceptancesBuild up relationshipExchange informationBargainingConcessionsAgreementDocumentation of settlement

Sample Examination Questions 2: Bullet Point Answers 21

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