SU4: Project Management and Contracts

Process
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Terms in this set (61)
Process
A sequential set of activities intended to produce a result so that at least one input is acted on to generate at least one output
Project
A temporary initiative that has a specific beginning and end, but may have a long duration; often involves a cross-functional team and working outside customary organizational lines
Project management
The application of knowledge, skills, and techniques to activities that meet its requirements
1. Ensuring resources are adequate
2. Maintaining scope
3. Controlling cost
4. Providing deliverables
The risk of an unsuccessful project can be analyzed in terms of what four components?
Program
A set of related projects and program activities managed together to obtain the benefits of synergy
Portfolio
A set of projects, programs, and operations, coordinated to achieve strategic goals
Governance
This may relate to the following:
1. Oversight of the work
2. Adherence to standards and policies
3. Defining roles, responsibility, and authority
4. Decisions about risk, approval of project changes, and resources
5. Monitoring performance
6. Addresses the forgoing matters, including those beyond the project manager's authority
Business case
A ______ for the project is a feasibility study prepared prior to the project to document its objectives, investments and success criteria
Inter stakeholder
Examples of this kind of stakeholder includes a sponsor, resource manager, program manager, and team members
External stakeholder
Examples of this kind of stakeholder includes suppliers, customers, end users, shareholders, and regulators
Integration processesA project management knowledge area that defines, combines, and coordinates the processes and activities within the process groups1. Initiating 2. Planning processes 3. Executing 4. Monitoring and controlling 5. ClosingThe project management process groups are sets of processes used to achieve objectives. What are the 5 processes?Initiating processA project management process group that defines a new project or phase by securing authorization to begin. A project charter is developed and stakeholders are identified in this process.Planning processA project management process group that defines the project scope, objectives, and actions to achieve those objectives. This iterative approach is known as progressive elaboration and includes 24 processesExecutingA project management process group that completes planned work in accordance with project requirements. They coordinate resources, integrate and perform activities, and manage stakeholder engagement. This process consumes much of the project's budget, resources and time.Monitoring and controllingA project management process group that tracks, reviews, and regulates progress and performance. This phase determines whether changes are needed in the project management plan and initiates those changesClosing processesA project management process group that formally terminates a project, phase, or contract. Thus, processes should be completed within every process group to close the projectOrganizational process assets (OPAs)These are specific (internal) to an entity. They are its plans, processes, policies, procedures, and knowledge bases that affect project managementEnterprise environmental factors (EFFs)External factors to the project but influence, limit, or direct the project. They may be internal or external to the entityArtifactsIn a project management context, these are processes, inputs, outputs, OPAs, EEFFs, etc.Project management planWhat is the most commonly used artifact?BaselineAn approved work product changeable only by formal procedures. It is a basis for comparison with an actual resultProject documentsThese are artifacts not included in the plan but that may be used to manage the projectBusiness documentThe source of this is external to the project. But it may be an input to the project. Examples include the business case and the benefits management planGantt chartA project management tool that shows the projected start and finish times for each task as well as for the project as a whole and shows (in a limited way) the interdependencies among tasks. This tool is simple but is unsuitable for a very large-scale projectProgram Evaluation and Review Techniques (PERT)This project management tool was developed to control large-scale, complex projects. This tool is free-form networks showing each activity as a line between events and incorporates probabilistic time estimates and identifying the critical path1. Events 2. ActivitiesA PERT network consists of what two components?EventsThis component of a PERT network is moments in time representing the start or finish of an activityActivitiesThis component of a PERT network are tasks to be accomplisshedCritical pathIn a PERT network, this is the longest path in time through the network. It's called this because if any activity takes longer than expected, the entire project will be delayedCritical Path Method (CPM)This project management tool is widely used in the construction industry. This tool is a network technique that uses deterministic time methods and incorporates cost amount when considering the time to complete a projectCrash estimateIn CPM, this estimate consists of the time and cost required to complete an activity if all available resources are applied to itNetwork modelsUsed to solve managerial problems pertaining to project scheduling, information systems design, and transportation system designCultural changeA type of change that consists of a change in attitudes and mindset. For example, when a total quality management approach is adoptedProduct changeA type of change that consists of a change in a product's physical attributes and usefulness to customersStructural changeA type of change that consists of a change in an organization's systems or structuresOrganizational development (OD)Provides a framework for managing change using the findings of the behavioral sciences1. Change is planned and deliberate 2. Change improves the organization 3. Change is implemented using the findings of the behavioral sciencesTrue Organizational Development has three distinctive characteristics:Contract lawAllows parties to enter into private agreements with assurance that they are enforceable against a party that fails to performContractA promise or an agreement that the law recognizes as establishing a duty of performance. It is enforceable by applying a remedy for its breach1. Mutual assent (offer and acceptance) 2. Consideration (a bargain for exchange) 3. Capacity of the parties 4. Legality of the agreementWhat are the four elements of a contract?AgreementThis requires the mutual assent of the parties reached through an offer by the offeror and acceptance by the offereeOfferA statement or other communication that, if not terminated, gives upon the offeree the power of acceptance1. Communicated to an offeree 2. Manifest an objective intent to enter into a contract, and 3. Be sufficiently definite and certainAn offer need not be in any particular form to be valid. It must be what three things?Definite and certainIf an offer is indefinite or vague or lacking an essential provision, no agreement results from an attempt to accept it. A court cannot determine the responsibilities of the party. Therefore, an offer must beConsiderationThis is given to make a promise enforceable. It is the primary basis for the enforcement of agreements in contract law. This must be something of legal value given by both parties1. Mutuality of obligation 2. Legal sufficiencyWhat are the two required elements of consideration?CapacityThe mental ability to make a ration decision. It includes the ability to perceive and appreciate all relevant factsLegalityAn essential requirement for an agreement to be valid and enforceable. An agreement is unenforceable if formation or performance of the agreement 1. Violates a criminal law 2. Is a civil wrong upon which a suit may be filed, or 3. Is determined by a court to be contrary to public policyFirm-fixed price contractA cost contract that provides a price that cannot be changed, even if costs increase unexpectedly. Should be used when: 1. Adequate price competition 2. Reasonable price comparisons 3. Reasonable estimates of costs, and 4. Performance uncertainties can be identifiedCost-plus-fixed fee contractA cost contract that is a cost-reimbursement contract that provides for a fixed fee in addition to incurred costs. Should be used when costs cannot be reasonably estimated because of performance uncertaintiesCost-plus-award fee contractA cost contract that is a cost-reimbursement contract that provides for an award amount in addition to incurred costs. The award amount is based on a judgmental evaluation of performance. Should be used when: 1. Impractical to set predetermined incentive targets 2. Performing party will be motivated toward exceptional performance, and 3. Expected benefits will exceed the costs required to monitor and evaluate performanceTime-and-materials contractA cost contract that provides for acquiring supplies or services based on direct labor hours at a specified rate and actual cost of materials. Should be used only when it is not possible to accurately estimate the extent of duration of work or to reasonably estimate costsImplied in factWhen the facts indicate a contract was formedImplied in lawNot a true contract but prevenets unjust enrichment of one party when the facts do not indicate that both parties had contractual intentUnilateral contractWhen only one party makes a promise. The other party is an actor, not a promisor. If the party performs a defined action (an acceptance), the promisor is obligated to keep the promiseBilateral contractBoth parties make promisesExecutory contractA contract that is not yet fully performed. if any duty remains to be performed under the contract, the contract is considered thisValid contractThis contract has all the elements of a contract, and the law provides a remedy if breached; legally binding on both partiesUnenforceable contractA valid contract because it has all the elements of a contract but the law will not enforce the contract because it does not comply with another legal requirementVoid contractA contract that is not binding and is considered void ab intio, which means it was void since its inception. Cannot be ratified and enforced