TEAM stages ( Tuckman (Jensen) Ladder)

forming
storming
norming
performing
adjourning

Future value & Present value

FV = PV (1+r)^N

: ^ power, r=rate of interest, N=number of time periods

PV = FV/(1+r)^N
NPV : higher the better
NPV > 0 investment will add value, accept the project

Internal rate of return, IRR : Bigger the better

Benefit Cost Ration, BCR : Bigger the better
Payback period: Lesser the better : This is nothing but Breakeven period
Payback period=Net investment/Avg annual cash flow

EV Management
EV = BAC x % complete
EV = PV x % 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 good

SPI = EV/PV > 1 is ahead of schedule

CV = EV-AC > 0 is good

CPI = EV/AC > 1 is under budget

PV = SV/(SPI-1)
AC = CV/(CPI-1)

EAC = AC+bottom-up ETC : when initial estimates are flawed

EAC = AC+(BAC-EV) : when ETC is predicted to be done at budgeted rate (not
typical)
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 :if work goes as per plan

ETC = BAC EV

VAC = BAC EAC

%VAC = VAC/BAC * 100

TCPI = (BAC-EV)/(BAC-AC) : accepting BAC value

TCPI = work remaining/funds remaining

TCPI = (BAC-EV)/(EAC-AC) : when BAC is not sufficient and EAC is calculated
TCPI > 1 is bad

Expected Monitory value: EMV=Impact*Probability

Probability distribution
PERT: Normal: (O+M*4+P)/6
Triangular: (O+M+P)/3
SD of activity = (P-O)/6
Variance of activity = [SD]^2

Float/Slack/total slack = LS-ES = LF-EF : =0 for activities on critical path

Cost Of Quality, COQ = EFTW+COPQ = POC+PONC

Essential first time work
Cost of poor quality
Price of Conformance
Price of non-conformance

Depreciation/Straight-line depreciation = Asset cost/Useful life

Double 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 Sales

Return on Assets, ROA = NI*T/Total Assets
Retrun 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 cost
Bonus = Savings*Percentage
Contract cost = Bonus+Fees
Total cost = Actual cost + Contract cost
Point of total assumption
PTA = [(Ceiling Price Target Price)/Buyers Share Ratio] + Target Cost
Cost 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 demand
Organizational need
Customer request
Technological advances
Legal requirements
Social 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)

Powers of PM:
Legitimate
Reward
Expert
Referent
Coersive/Punishment

Motivational theories
Hertzbergs hygiene-motivation
Maslows hierarchy of needs
McGregor Theory X, Y; / Z(assurance of permanent job position)
McClellands Need Theory

Victor Vroom Expectance theory

Peter Principle=Halo effect

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

Paul Hersey/Ken blanchards Situational continuum/leadership

change 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 diagram
PDPC
Matrix diagram
Affinity diagram
Prioritization Metrics
Interrelationship digraphs
Tree diagram

7 Basic Quality Tools

Check sheet
Control chart
Cause-and-effect diagram
Histogram

Flow chart
Pareto chart
Scatter diagram

type II error beta risk

ACTIVITY ON ARROW/arrow diagramming method

McKinseys 7Ss Robert H. Waterman, Jr. and Tom Peters

Hard Elements
Strategy
Structure
Systems

Soft Elements
Shared Values
Skills
Style
Staff

7 sources of conflicts on projects

schedule

project priorities

human resources

technical opinions and performance trade-offs

administrative procedures

personality conflict

cost and budget

Conflict management

withdraw/avoid

compromise

smoothen/accomodate

collaborating

confront/problem solving

force

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

Test of Normality
Paired Comparison Analysis
opm3
managemet by objective
capability maturity model
tqm
Merrill and Reid in their employee motivation theory?
personality traits: driver, expressive, amiable, and analytical.

Joseph Juran:applied the Pareto principle to quality issues

Jurans Trilogy: quality planning, quality control, and quality improvement.

W. Edwards Deming
PDCA

Philips Crosby DIRFT (4 principles)

The definition of quality is conformance to requirements (requirements
meaning both the product and the customers requirements)
The system of quality is prevention
The performance standard is zero defects (relative to requirements)
The measurement of quality is the price of nonconformance

Pareto
80-20 principle

Ishikawa
root-cause diagram: fishbone

William Ouchi
Theory Z

Genichi Taguchi
Design of experiments

F.C. Moore
Delegation means assigning work to the others and giving them authority to

do so

Overlapping relationship
Sequential relationship
Multi-phase relationship
Iterative relationship

Predictive/plan-driven
Iterative and Incremental
Adaptive/Agile

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

Critical chain method - Eliyahu M. Goldratt

The critical path method (CPM) is a project modeling technique developed in
the late 1950s by Morgan R. Walker (of DuPont) and James E. Kelley
Parkinsons law is the adage which states that work expands so as to fill the
time available for its completion.
Students syndrom work is done at the last moment before deadline

COMMUNICATION Management
Communication channels = N*(N-1)/2

7% of communication message is contained in words

38% in vocal pitch
55% in body language

Group decision making criteria (BINAM)

Brainstorming

Idea/mind mapping

Nominal technique

Affinity diagrams

Multi-criteria decision analysis

Failure mode and effect analysis FMEA

QFD quality function deployment (type of Facilitated workshops)

Discrete, Apportioned, Level of Effort EMV effort types

marginal analysis
lifecycle costing
Demings 14 points?
ARMA
zero sum processing
issue log

Shannon-Weaver model of communication

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

and Mandatory

direct, indirect, fixed, variable costs