Fran paste your answers here
Paul Naybour
LinkedIn ProfilePaul Naybour is a seasoned project management consultant with over 15 years of experience in the industry. As the co-founder and managing director of Parallel, Paul has been instrumental in shaping the company's vision and delivering exceptional project management training and consultancy services. With a robust background in power generation and extensive senior-level experience, Paul specializes in the development and implementation of change programs, risk management, earned value management, and bespoke project management training.
Please could I have some feedback on the following 2 question responses on Planning for Success:
Q. List & describe 5 main components of an information management process.
Collection
The more information you collect the more data there is to analyse. It is therefore important to decide the scope of the information that is required and only collect that information which is necessary for the purpose in hand. These days there are lots of forms of information, such as written (eg. reports, letters, e-mails) as well as video and podcasts, it is also important to consider in what ways the information will be collected.
Storage
Much information is stored electronically today and there should be standards regarding how the information is stored. This includes things like naming conventions, version control, backup, security and access arrangements. The Data Protection Act cover individual’s right in relation to the storage, retention and use of personal data and consideration should also be given to requirements under this act to ensure compliance.
Dissemination
It is important to understand who needs the information and when, as well as how the information will be supplied to them. This includes who needs to be made aware as things change. For example, who will need a copy of the Highlight Report, how frequently will they require it and will they receive the report as a hardcopy or an electronic version?
Archiving
Some information has to be held for a minimum time period, for example tax documents. It is important to understand legislative requirements relating to the retention of data, in order to to ensure compliance. Consideration also needs to be given as to how and where information will be archived and an effective cataloguing process created so that archived information can be efficiently retrieved. The Freedom of Information Act gives the public the right to request access to information held by public authorities and there are standards relating to turnaround times for requests.
Destruction
There are costs associated with storage of information. Excessive retention of information will increase costs unnecessarily and may also put you in breach of legislative requirements. There should therefore be regular house-keeping and where appropriate destruction of information.
Q. List & describe 3 types of estimating techniques and give examples of where 2 of them might be used in the life cycle.
Comparative estimates
This type of estimating is where you take the actual costs or duration of a similar project or activity and simply scale them up or down. You also need to allow for any variables which are not proportional. For example, if a 400,000 metre square warehouse cost £1million to build last month, you could estimate that a 500,000 metre square warehouse would cost £1.25 million to build (£1m x 5/4). This type of estimating is useful in the concept stage of a project, when you are producing high level estimates for a Business Case.
Bottom up estimates
This type of estimating is where you take the costs or duration of the multiple, individual components of the project (eg, work packages) and add them all up to get the total estimate. For example if a project consists of three work packages, with work package one costing £10,000, work package two £5,000 and work package three £20,000 then the total estimate for the project would be £35,000. This method requires a detailed understanding of the various components of the project. It is therefore more likely to be used during the project definition phase when creating the Project Management Plan, once the Work Breakdown or Product Breakdown structures have been created.
Three point estimating
This method uses three estimates (best case, worst case and most likely case) to arrive at the best estimate, as opposed to using a single estimate. The best estimate is calculated using a PERT formula as follows:
Best Estimate = [ (1 x Best case) + (4 x Most Likely case) + (1 x Worst case) ] /6
For example if the duration to complete a task is 30minutes best case, 45 minutes most likely case and 90 minutes for the worst case, then the best estimate would be 50 minutes.
This type of estimating is often used to simulate statistical modelling using a computer.
Q. List & describe 4 elements that can cause estimates to be inaccurate and what the project manager can do to try and prevent these problems.
Estimate accuracy increases with the more information and experience we have and therefore it increases as a project matures. A project manager faces the following problems which can lead estimates to be inaccurate:
Subjectivity
Estimates supplied by individuals are based on their experience and knowledge and are therefore also subject to bias, particularly when based on a bitter experience. A project manager can try to prevent estimate inaccuracy relating to subjectivity, by understanding what has been taken into account when creating the estimate and trying to eliminate any bias involved. This could be done through seeking views from others regarding the estimate given. Another approach would be to apply an estimating technique, such as Comparative Estimating and thereby using factual, comparative information from similar projects to arrive at an estimate.
Risks
There are inherent risks in most activities and individuals may include contingency within their estimates to mitigate the risk and cover the potential impact. This can increase estimates unnecessarily. The project manager needs to ‘peel back the layers’ and understand what level of contingency has been included in estimates given. The project manager could also use the ‘Parametric’ estimating technique if information regarding quantities and unit prices were known. For example if historic, reliable evidence shows that it costs £1 million to construct 10 miles of motorway and the project is to construct 50 miles of motorway, then the project cost estimate would be £5 million.
Assumptions
Estimates may be based on assumptions and there is a possibility that the assumptions could be erroneous. The project manager needs to challenge estimates to ensure that as far as possible they are based on facts. This includes seeking out-turn data from previous, similar projects and using this information intelligently through the use of estimating techniques, such as comparative estimates or three point estimates, to create realistic and robust estimates for their project.
Not knowing who
In the early stages of project planning you may not know who is going to do the work. It may take the actual person, who does the work, longer or less time than the person who provided the estimate allowed, as they may have different levels of competence and skills. To prevent this problem, the project manager should always try to get the person who will undertake the work to provide the estimate.
Many thx
Fran
Fran
Governance question is very good. for the team work question please try to say what the project manager would do at each stage. For example forming the PM would set the overall direction. Motivation question is very good, no real comments. And the Belbin roles are good to. In general I think you have got the hang of the level of detail required in the questions.
Try this question,
1) List and describe the different forms of conflict that can across the project lifecycle?
You will need to reference the project lifecycle and the sources of conflict in your answer.
Hi Paul, could I please get some feedback on the following three questions? I completed them under exam conditions / time pressure, and with more time on reflection I would answer the 2nd and 3rd quite differently, but it would good to get your thoughts on how close these are to meeting the requirements as well as any pointers for better answers next time or things to revisit before the exam on Friday.
Many Thanks
Alice
Question:
5.1) State the purpose of the business case. (10)
5.2) Explain three different investment appraisal techniques (30)
5.3) Describe one factor that should be considered in addition to the investment appraisal when considering a business case (10)
Answer:
5.1 The purpose of the business case is to allow the Steering Group to fully understand the costs, benefits and risks involved in a potential project, whether they believe these are appropriately balanced, and ultimately to give the necessary information to enable a decision on approval to go ahead.
5.2 Payback is a simple Investment Appraisal Technique that compares the investment made in a project with the income received over a period, establishing the time that would be taken to re-coup the costs. For example, if investment in a project would be £10,000 and income £1000 per year, it would take 10 years to get payback. Although this is a simple and easy technique it does not take into account the reducing value of money over time.
Net Present Value takes this reducing value of money into account by applying a ‘Discount Factor’ to the income received, reducing it to the equivalent present value. For example, a discount rate that is quite high could mean that income is only the equivalent of £6000 in that same period. In this case the NPV technique shows a loss of £4000 in that period. A disadvantage of the NPV technique is that it is very reliant on the discount rate used and set by accountants.
The Internal Rate of Return technique counters this by calculating the NPV based on more than 1 discount rate, plotting this on a chart and establishing the Discount Rate at which the NPV is £0. This gives the IRR. This is however a complex technique and can give confusing results, although it does give a useful rate that can be compared to organisational expectations regarding return on investment.
5.3 Another factor that should be considered when reviewing a business case is the impact on Business as Usual operations. Even if a project seems to have a positive business case on paper, if the impact on BAU would mean a considerable detrimental impact to operations, trust in the organisation or long term reputational damage, then the financial benefits may not be worth the ‘cost’.
Question:
List and describe five actions a project manager should take when monitoring and updating a project risk register. (50)
Answer:
1 – Review Plan
2 – Identify further risks
3 – Assess changes using PIG
4 – Make decisions (with sponsor)
5 – Communicate further impacts – update PMP
1 – When monitoring a project risk register it is important for the project manager to continue to refer to the risk plan. This will ensure that the proper schedule of review is followed, that appropriate processes continue to be followed and communicated as agreed in the original Project Management Plan. This in itself reduces the further risks of not following agreed processes.
2 – When any risk register items are updated consideration is needed of downstream or secondary risk impacts. For example, if a decision has been made to avoid the risk of a supplier going bust by using a different supplier, what other additional risks might this pose. These further risks must be added to the risk log.
3 – Any updates to the risk register must also be assessed, in terms of impacts to probability or impact of different risks. A Probability Impact Grid should be used to get a more objective picture of the highest priority risks, and if a risk becomes more of a concern, due to increased probability or impact, appropriate decisions will need to be made regarding any change in action plan required. This is also true if the probably of a risk maturing reduces – it may no longer be worth the investment in tackling that risk.
4 – When any changes are made decision need to be made with any appropriate stakeholders. This maybe something the project manager can make a decision on themselves or they may need to involve the sponsor if it impacts on the business case or any other stakeholders. The resultant decision, for example, to take actions to share an opportunity with a partner firm, must also be recorded.
5 – Any further impacts must be fully communicated to all interested parties. This could be through regular scheduled reviews and sharing of the risk register as per the plan or an unscheduled exception update. This will also involve updating the project management plan with any actions required to tackle risks, communicate appropriately or ensure other items are updated, such as the configuration documents if a change is required as a result of the risk-related decision.
Question:
Explain the benefits of project governance
Answer:
Project Governance provides appropriate ‘checks and balances’ to projects to ensure that agreed processes, methodologies and tools are being used as agreed. This avoids wasted time and resources on team members ‘straying’ into using other techniques that may create inefficiencies or duplication. For example, if phase gate reviews require information to be presented in an agreed template that is familiar to all those involved in the review.
Proper project governance also ensures that decisions are made using up-to-date relevant and realistic information. This is essential in ensuring that correct decisions are made and risks are minimised associated with data. For example, proper scheduling of reports and reviews can ensure that the information used in those phase gate reviews is correct.
Good project governance involves the right people at the right time, maximising efficiency and reducing risk. For example, the use of audits can give assurance to stakeholders regarding their investments, while reducing the need to individually review the full project status and outputs individually. Where senior individuals are involved this can greatly reduce costs of time investment.
A good project governance process also ensures that projects are, and remain to be aligned to business goals. A robust review procedure at appropriate stages in the project that looks at the alignment to goals and proactively ensures that projects don’t ‘stray’ from those strategic goals and benefits can reduce the chances of ‘mission creep’. For example, applying scrutiny at the approval of a PMP that it is still aligned with the original business case.
A clear project governance process also clearly sets out the roles and responsibilities in a project and appropriate times and routes for escalation. This ensures that any issues are quickly addressed by the right people, avoiding delays (or worse, incorrect decisions and rework) due to lack of clarity regarding who can make what decisions and when these should be raised to those people.
Three very good answers to these questions, you clearly have a good idea of the level of detail required. Ten like this in the examined you should pass with out too much difficulty, well done
Thanks Paul, that’s a relief as I took the exam on Friday. If you’d said they were way off I’d have had a tense few weeks waiting for my result!