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PMP Certification: A Beginner s Guide
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increased risks and/or tradeoffs, such as increased cost (for example, the cost of rework or training if the added resources are not experts in the activity) With fast tracking, you add risk by doing multiple things at the same time (a form of multitasking), and when you bring more people on the project (crashing) you add cost Therefore, you might want to use a combination of compression techniques, as needed, to minimize cost and risk whenever possible One way to remember crashing is to think of a party Someone who arrives uninvited is said to crash the party (likely eating up more food than the host had planned) Although silly, this memory tickler usually works (according to my students) Therefore, remember that crashing the schedule involves bringing more people to the party, and it usually always costs more than planned
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Out-of-Control Schedule
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The customer comes to you (the PM) in the hallway and says, The date for the rock concert has been moved up (sooner) by two weeks and they want additional pyrotechnics and lighting changes I need to know if there is any way you can move this project ahead to meet the new date and additional requirements What do you say
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A Sure, we can do that! No problem B I will need to get with the team and see what our options are and the level of risk if
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we compress the schedule by two weeks Give me a day or two to work this out
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C I will be happy to work with you to better understand the changes to the schedule and
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will help initiate the request as part of our urgent change control process
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D Sorry, if we move the schedule ahead, the team will have to work overtime We are
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coming up on vacation time and will be short on staff Answer: C You should always manage the schedule by using a documented and approved change control process
Work the Plan (Project Execution)
At the end of the day, it is all about execution You can have the best plan and the best schedule ever, but if you can t effectively execute (work) the plan, you might as well update your r sum and move on The primary job of project managers is to be able to put our money where our mouth is and deliver what we said we would, on time and on budget Effective time management enables you to perform your job as the PM with confidence and successful results
6: Project Time Management
References
1 Wikipedia, http://enwikipediaorg/wiki/Time_management 2 Answerscom, http://wwwanswerscom/topic/activity-attributes 3 Wideman Comparative Glossary of Project Management Terms, http://wwwmaxwideman
com/pmglossary/PMG_L01htm
4 Philips, Joseph PMP Project Management Professional Study Guide, Second Edition
(McGraw-Hill, San Francisco), 2008, page 222
5 SearchSoftwareQualitycom at: http://searchsoftwarequalitytechtargetcom/sDefinition/
0,,sid92_gci331391,00html
6 Wikipedia, http://enwikipediaorg/wiki/Resource_Leveling 7 Mulcahy, Rita PMP Exam Prep, Sixth Edition (RMC Publications, Inc), April 2009,
page 240
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Project Cost Management
PMP Certification: A Beginner s Guide
Key Skills & Concepts
The role of the project sponsor The importance of cost management The three cost management processes Managing the budget Types of estimates Range of accuracy Earned value management (EVM) Tips on how to remember EVM formulas Reserve analysis (contingency) Types of reports Life cycle cost
ost management is one of the key project management measurements Remember the project constraints Cost is one of the primary focus areas when managing projects In any economy, managing cost can mean the difference in whether or not a project can survive Companies are sometimes forced to cut budgets (or move to other suppliers or markets) to stay competitive The projects that cost the most or are not moving as quickly as the company feels they should are the ones that are frequently terminated The end result is, projects live and die by the almighty dollar (or peso, euro, yen, and so on) If you have managed projects, even briefly, chances are you have had one terminated due to budget problems I was caught by surprise five months into a six-month project in New York when my boss called and informed me the project I was working on was just cancelled due to budget cuts It is a fact of life, so what can you do The answer is pretty clear: You manage the budget as closely as you can You must get (and stay) cost conscious and manage the budget as if it were your own money If the project goes away, your paycheck may go away with it if you don t manage cost wisely
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