Earned Value Management———————–EV = BAC * % completeEV = PV * % complete (any point during project execution)

EV=BCWP (budgeted cost of work performed)PV=BCWS (budgeted cost of work scheduled)AC=ACWP (actual cost of work performed)

SV = EV-PV > 0 is goodSPI = EV/PV > 1 is ahead of schedule

CV = EV-AC > 0 is goodCPI = EV/AC > 1 is under budget

PV = SV/(SPI-1)AC = CV/(CPI-1)——

EAC = AC+bottom-up ETC : when initial estimates are flawedEAC = AC+(BAC-EV) : when ETC is predicted to be done at budgeted rate (ATYPICAL)EAC = BAC/CPI : when ETC is expected at current CPI (typical)EAC = AC+(BAC-EV)/(SPI*CPI) : at current SPI, CPI

EAC=BAC-CV ?

EAC = AC/%Complete

ETC = EAC – AC :assuming work goes as per planETC = BAC – EV

VAC = BAC – EAC%VAC = VAC/BAC * 100

TCPI = (BAC-EV)/(BAC-AC) : accepting BAC valueTCPI = work remaining/funds remainingTCPI = (BAC-EV)/(EAC-AC) : when BAC is not sufficient and EAC is calculatedTCPI > 1 is bad

————-Expected Monitory value: EMV=Impact*Probability————-Communication channels = N*(N-1)/2

7% of communication message is contained in words38% in vocal pitch55% in body languageAlbert Mehrabian’s book “Silent Message”

————-TEAM stages – Tuckman (Jensen) Ladderformingstormingnormingperformingadjourning

Future value & Present value—————————-FV = PV (1+r)^N : r=rate of interest, N=number of time periodsPV = FV/(1+r)^NNPV : higher the betterNPV > 0 investment will add value, accept the project

Internal rate of return, IRR : Bigger the betterBenefit Cost Ration, BCR : Bigger the betterPayback period: Lesser the better : This is nothing but Breakeven periodPayback period=Net investment/Avg annual cash flow

————-Probability distribution————————PERT: Normal: (O+M*4+P)/6Triangular: (O+M+P)/3SD of activity = (P-O)/6Variance of activity = [SD]squared————-Float/Slack/total slack = LS-ES = LF-EF : =0 for activities on critical path————-Cost Of Quality, COQ = EFTW+COPQ = POC+PONCEssential first time workCost of poor qualityPrice of ConformancePrice of non-conformance————-

Depreciation/Straight-line depreciation = Asset cost/Useful lifeDouble declining balance = 2x((Asset cost – Accumulated depreciation)/Useful life)————-

Rough Order of Magnitude (ROM) -25% to +75%Budget Estimate -10% to +25%DefinitiveEstimates -5% to +10%————-Remember, RETURN = Net Income Before Tax (NIBT) *or* Net Income After Tax (NIAT); & ON means ‘/’

Return on Sales, ROS = NI*T/Total SalesReturn on Assets, ROA = NI*T/Total AssetsRetrun on Investment, ROI = NI*T/Total Investment

Working Capital = Current Assets – Current Liabilities

Discounted cashflow = Cashflow * Discount factor————-

Contract related formulas————————-Savings = Target cost – Actual costBonus = Savings*PercentageContract cost = Bonus+FeesTotal cost = Actual cost + Contract cost————-Point of total assumptionPTA = [(Ceiling Price – Target Price)/Buyer’s Share Ratio] + Target CostCost to buy = Initial cost + [#months * (monthly maintenance costs)] lifecycle cost = total cost + maintenance and support cost for lifetime of product————-

Normal Distribution——————-1 sigma = 68.26%2 sigma = 95.46%3 sigma = 99.73%6 sigma = 99.999%1 SD = 1 sigma————-What Five Strategic Considerations may result in authorization of a project? (MOCkTaiLS – MOCTLS)Market demandOrganizational needCustomer requestTechnological advancesLegal requirementsSocial need————-EVA = Net Operating Profit After Tax – Cost of Capital (Revenue – Op. Exp – Taxes) – (Investment Capital X % Cost of Capital)EVA: Economic Value Add Benefit Measurement – Bigger is better

Source Selection = (Weightage X Price) + (Weightage X Quality)————-Types of powers of PM:LegitimateRewardExpert

ReferentCoersive/Punishment————-Motivational theories———————Hertzbergs highgyene-motivationMaslow’s hierarchy of needsMcGregor Theory X, Y; / Z(assurance of permanent job position)McClelland’s Need TheoryVictor Vroom Expectance theory———————

Peter Principle=Halo effect———————

range of variance on a budgetary estimate can be from -10% to +25%.

—————————————Paul Hersey/Ken blanchard’s Situational continuum/leadershipchange leadership style based on maturity of subbordinates/team.S1: Telling; S2: Selling; S3: Participating; S4: Delegating;

system testing vs integration testing

Seven Quality Mgmt and Control tools(NP, MAP IT)————————————————Network diagramPDPCMatrix diagramAffinity diagramPrioritization MetricsInterrelationship digraphsTree diagram

7 Basic Quality Tools (See See See, Husband and Father Playing Soccer)——————————————————————Check sheetControl chartCause-and-effect diagramHistogramFlow chartPareto chartScatter diagram

type II error – beta riskACTIVITY ON ARROW/arrow diagramming method

McKinsey’s 7S’s – Robert H. Waterman, Jr. and Tom PetersHard Elements

StrategyStructureSystems

Soft ElementsShared ValuesSkillsStyleStaff

7 reasons of conflicts on projects———————————-scheduleproject prioritieshuman resourcestechnical opinions and performance trade-offsadministrative procedurespersnality conflictcost and budget

Conflict management style————————-withdraw/avoidcompromisesmoothen/accomodatecollaboratingconfront/problem solvingforce

Collaborating: win/win;Compromising: win some/lose some; >> lose/loseAccommodating: lose/win;Competing: win/lose;Avoiding: no winners/no losers

Test of NormalityPaired Comparison Analysisopm3managemet by objectivecapability maturity modeltqmMerrill and Reid in their employee motivation theory?personality traits: driver, expressive, amiable, and analytical.

Joseph Juran:applied the Pareto principle to quality issues“Juran’s Trilogy”: quality planning, quality control, and quality improvement.

W. Edwards DemingPDCA – along with Shewart

Philips Crosby – DIRFT (4 principles)The definition of quality is conformance to requirements (requirements meaning both the product and the customer’s requirements)The system of quality is preventionThe performance standard is zero defects (relative to requirements)The measurement of quality is the price of nonconformance

Vilfredo Federico Damaso Pareto80-20 principle

Kaoru Ishikawaroot-cause diagram: fishbone

KJ Diagram ()

William Ouchi (jap)Theory Z, permament job offer

Genichi TaguchiDesign of experiments

F.C. Moore“Delegation means assigning work to the others and giving them authority to do so”

Overlapping relationshipSequential relationshipMulti-phase relationshipIterative relationship

Predictive/plan-drivenIterative and IncrementalAdaptive/Agile

NPV is defined as: The difference between the present value of cash inflows and the present value of cash outflows.

critical chain methd by Eliyahu M. GoldrattThe critical path method (CPM) is a project modeling technique developed in the late 1950s by Morgan R. Walker (of DuPont) and James E. KelleyParkinson’s law is the adage which states that “work expands so as to fill the time available for its completion”.Student’s syndrom – work is done at the last moment before deadline

Group decision making criteria (BINAM)——————————BrainstormingIdea/mind mapping

Nominal techniqueAffinity diagramsMulti-criteria decision analysis

Failure mode and effect analysis – FMEAQFD – quality function deployment (type of Facilitated workshops)

Discrete, Apportioned, Level of Effort – EMV effort types

marginal analysislifecycle costingdeming’s 14 points?ARMA>zero sum processingissue log

shannon-weaver model of communication

code of ethics: Respect, Responsibility, Honesty, Fairness >>>> Aspirational and Mandatory

direct, indirect, fixed, variable costs