Office Read 6 – Program Activities (Chapter 8)
Disclaimer – This artifact is a short summary of
respective content that will be covered in class. The summary is a great tool
to review content however by no means replaces the SPM V4. Standard for Program
Management remains the authoritative source of preparation for the PMP Exam
Goal of this domain: IMP
- Program activities are tasks and work conducted
to support a program and which contribute throughout the program life cycle
Weightage on the PgMP Exam: 44% (75 Questions)
This section includes:
8.1 Program Definition Phase Activities (2 phases
– Formulation and Planning)
8.2 Program Delivery Phase Activities
8.3 Program Closure Phase Activities
8.1
PROGRAM DEFINITION PHASE ACTIVITIES
The program definition phase establishes and
confirms the business case for the program and then develops the detailed plan
for its delivery. This phase is divided into two parts: program formulation and
program planning.
8.1.1 PROGRAM FORMULATION ACTIVITIES
In program formulation, the high-level scope,
risks, costs, and expected benefits of the program are assessed to confirm that
the program represents a viable way forward for the organization and is well
aligned with the organization’s strategic objectives.
Question: What happens when in some cases, program
formulation leads to the conclusion that the program does not have a strong
business case”
Answer: The program is stopped.
8.1.1.1 PROGRAM CHANGE ASSESSMENT
As part of
program formulation, potential change management considerations are identified
and assessed to help develop the program’s business case.
Question: What does Program Change Assessment identifies?
Answer: The program change assessment identifies
sources of change, such as the volatility of the enterprise environmental
factors, the sensitivity of the proposed program’s business case to changes in
organizational strategy, and the possible frequency and magnitude of changes
that may arise from components during program delivery.
Important Concept for the Exam: The output of this activity is the program
change assessment, which is an input to the program business case, program
charter, and program change management planning.
8.1.1.2 PROGRAM COMMUNICATIONS ASSESSMENT
An initial assessment of the communication needs
of the program is a key input to the program charter. It may be useful as part
of program formulation to survey program stakeholders to identify their
expectations for its outcome and their interests in staying informed and
involved during its delivery.
Question: An initial assessment of the communication
needs of the program is a key input to what critical program artifact?
Answer: Program Charter
The output
of this activity is the program communications assessment, which is an input to
the stakeholder engagement plan and program communications management planning.
8.1.1.3 PROGRAM INITIAL COST ESTIMATION
An initial cost estimate is prepared in the
program definition phase to determine the cost of its planning and delivery.
This initial rough order-of-magnitude estimate allows financial decision makers
to decide if the program should be funded.
Imp Exam Concept: The output of this activity is the program
initial cost estimate.
Program Initial Cost Estimate is an input to the
program business case and the program charter and detailed program cost
estimation during program planning.
8.1.1.4 PROGRAM INFORMATION MANAGEMENT ASSESSMENT
The information management needs of the program
should be considered as part of program formulation so that possible financial,
organizational, or resource implications can be assessed.
The output of this activity is the program
information management assessment, which is an input to the program business
case, program charter, and program information management planning during
program planning.
8.1.1.5 PROGRAM PROCUREMENT ASSESSMENT
An assessment of the procurement needs of a
program can be a valuable input to the program charter.
The output of this activity is the program
procurement management assessment, which is an input to the program business
case, program charter, and program procurement management planning during
program planning.
8.1.1.6 PROGRAM QUALITY ASSESSMENT
An assessment of quality constraints,
expectations, risks, and controls should be included as part of program
formulation.
Expectations about the quality of program
outputs may serve as important inputs to determine program costs and required
program infrastructure and resources. Finally, the need for program quality
reviews or audits may be considered important to enable program governance.
The output of this activity is the program
quality assessment, which is an input to the program business case, program
charter, and program quality management planning during program planning.
8.1.1.7 PROGRAM RESOURCE REQUIREMENTS ESTIMATION
The
resources required to plan and deliver a program include people, office space,
laboratories, data centers or other facilities, equipment of all types,
software, vehicles, and office supplies.
The output
of this activity is the program resource requirements estimate, which is an
input to the program business case, program charter, and program resource
management planning during program planning.
8.1.1.8 PROGRAM INITIAL RISK ASSESSMENT
Question: What Two aspects of risk should be assessed
during program definition?
Answer: First, an identification of the
key risks that the program may encounter and their relative likelihood and
impact should be developed as an input to the program business case and the
program charter.
Second, an assessment of the organization’s
willingness to accept and deal with risks—sometimes referred to as its risk
appetite—is essential in understanding the level of effort that may be required
to monitor and assess risks during program delivery.
The output of this activity is the program
initial risk assessment,
Question: What is one critical input to the program
business case, the program initial cost estimate, the program charter, the
program roadmap, and program risk management planning during program planning.
Answer: Program Initial Risk Assessment
8.1.1.9 PROGRAM SCHEDULE ASSESSMENT
An assessment of expectations for delivery dates
and benefits milestones should be part of the program charter.
Question: What artifact may at time integrate high level
schedule or the roadmap while submission for approval?
Answer: Roadmap
The output of this activity is the program
schedule assessment, which is an input to the program business case, the
program charter, the program roadmap, and program schedule management planning
during program planning.
8.1.1.10 PROGRAM SCOPE ASSESSMENT
This initial program scope assessment develops
the program scope statement from the program goals and objectives. This input
to the program charter can be obtained from the program sponsor or stakeholders
through the portfolio management or stakeholder alignment activities.
The output of this activity is the program scope assessment, which is an
input to the program charter.
8.1.2 PROGRAM PLANNING PHASE ACTIVITIES
In program planning, the program organization is
defined, and an initial team is deployed to develop the program management
plan.
Question: What is used to develop the program management plan?
Answer: Organization’s strategic plan, business case,
program charter, and the outputs from the assessments completed during program
definition. The plan includes the roadmap of the program components and the
management arrangements
8.1.2.1 PROGRAM CHANGE MANAGEMENT PLANNING
The program change management plan is a
component of the program management plan that establishes program change
management principles and procedures, including the approach for capturing
requested changes, evaluating each requested change, determining the
disposition of each requested change, communicating a decision to impacted
stakeholders, documenting the change request and supporting detail, and
authorizing funding and work
The outputs of this activity include:
·
Program change management plan
·
Program change thresholds.
8.1.2.2 PROGRAM COMMUNICATIONS MANAGEMENT PLANNING
Question: What is the objective of Program Communications
Management?
Answer: It includes the activities for the timely and appropriate generation,
collection, distribution, storage, retrieval, and ultimate disposition of
program information. These activities provide the critical links between people
and information that are necessary for successful communications and decision making.
Program communications management planning is
the activity of determining the information and communication needs of the
program stakeholders based on who needs what information, when they need it,
how it will be given to them, and by whom.
Question: What factors should be considered when
developing the program communications management plan?
Answer: Cultural and language differences, time zones,
and other factors associated with globalization. Although complex, program
communications management planning is vital to the success of any program.
The outputs of this activity include:
·
Program communications management plan, and
·
Communication requirements inputs to the
stakeholder register.
Question:
Communication requirements are critical component to one artifact, what is it?
Answer:
Stakeholder register
8.1.2.3 PROGRAM COST ESTIMATION
Imp Concept: Program cost estimating is performed throughout
the course of the program.
Many organizations use a tiered funding process
with a series of go/no-go decisions at each major stage of the program. They
agree to an overall financial management plan and commit to a budget only for
the next stage at each governance milestone.
Question: What helps derive confidence factor in the
estimate?
Answer: A weight
or probability may be applied based on the risk and complexity of the work to
be performed. Statistical techniques such as Monte Carlo simulation can also be
used.
This confidence factor is used to determine the
potential range of program costs.
Question: What do decision makers consider while determining
program costs?
Answer: Decision makers need to consider not only the
development and implementation costs, but also sustainment costs that may occur
after the program is completed. Calculating full life cycle costs and including
transition and sustainment costs result in total cost of ownership.
Question: What is Total cost of ownership?
Answer: Full life cycle costs and including transition
and sustainment costs result in total cost of ownership.
Program cost estimates should also identify any
critical assumptions upon which the estimates are made.
Question: What happens if critical assumption in
developing costs are proven to be wrong?
Answer: If these assumptions may prove unfounded in the
course of program delivery and require reconsideration of the program business
case or revision of the program management plan.
The outputs of this activity include:
·
Program cost estimates
·
Program cost estimation assumptions
·
Component cost estimation guidelines
8.1.2.4 PROGRAM FINANCIAL FRAMEWORK ESTABLISHMENT
Question: What is the primary
objective program financial framework?
Answer: It is a high-level initial plan for
coordinating available funding, determining constraints, and determining how
funding is allocated. The financial framework defines and describes the program
funding flows so that the money is spent as efficiently as possible.
The type of program and the funding structure dictate the financial
environment for the duration of the program.
Funding models vary, from those that are:
·
Funded entirely within a single organization,
·
Managed within a single organization but funded
separately,
·
Funded and managed entirely from outside the
parent organization
·
Supported with internal and external sources of
funding.
Imp Concept: In addition to funding sources, the timing of
funding has a direct impact on a program’s ability to perform. To a much
greater extent than for projects, program costs occur earlier (often years
earlier) than their related benefits.
Question: What is the objective of financing in program development?
Answer: To obtain funds to bridge the gap between
paying out monies for development and obtaining the benefits of the programs.
Covering this large negative cash balance in the most effective manner is a key
challenge in program financing.
Question: When happens as the program financial framework
is developed and analyzed and if changes may be identified that impact the
original business case justifying the program?
Answer: Based on these changes, the business case is
revised with full involvement of the decision makers.
The outputs of this activity include:
·
Program financial framework,
·
Business case updates, and
·
Updates to the program communications management
and stakeholder engagement plans.
8.1.2.5 PROGRAM FINANCIAL MANAGEMENT PLANNING
Question: What is the objective of program financial
management planning?
Answer: To
develop the program financial management plan which is a component of the
program management plan that documents all of the program’s financial aspects:
funding schedules and milestones, initial budget, contract payments and schedules,
financial reporting activities and mechanisms, and the financial metrics.
The program financial management plan expands
upon the program financial framework and describes the management of items such
as risk reserves, potential cash flow problems, international exchange rate
fluctuations, future interest rate increases or decreases, inflation, currency
devaluation, local laws regarding finances, trends in material costs, and
contract incentive and penalty clauses.
Imp Concept: Developing the program’s
initial budget involves compiling all available financial information and
listing all income and payment schedules in sufficient detail so that the
program’s costs can be tracked as part of the program budget. Once baselined, the budget becomes the
primary financial target that the program is measured against.
Question: It is important to develop financial
metrics by which the program’s benefits are measured. When are these metrics
created and established them.
Answer: These
metrics are created during the program financial management planning and it is
one of the tasks of the program team and program steering committee is to
establish and validate these financial performance indicators.
The outputs of this activity include:
·
Program financial management plan
·
Initial program budget
·
Program funding schedules
·
Component payment schedules
·
Program operational costs
·
Inputs to program risk register
·
Program financial metrics
8.1.2.6 PROGRAM INFORMATION MANAGEMENT PLANNING
The program information management plan is a
component of the program management plan that describes how the program’s
information assets will be prepared, collected, organized, and secured. It is
often composed of (but not limited to) information management policies,
distribution lists, appropriate tools, templates, and reporting formats.
Such information will be gathered and retrieved
through a variety of media including manual filing systems, electronic
databases, project management software, and systems that allow access to
technical documentation such as engineering drawings, design specifications,
and test plans.
Question: When are the Program information distribution
methods are determined?
Answer: Once the program’s information management
system is determined.
The outputs of this activity include:
·
Program information management plan
·
Program information management tools and
templates
8.1.2.7 PROGRAM PROCUREMENT MANAGEMENT PLANNING
Imp: The program procurement management plan is a component of the program
management plan that describes how the program will acquire goods and services
from outside of the performing organization.
Question: How do program manager understand the resources
required for the delivery of benefits expected of the program?
Answer: A program manager can rely on techniques such
as make-or-buy decisions and program work-breakdown-structure charts aid in
this activity.
The concept in bold below is extremely important
from PgMP exam:
Early and intensive planning is critical for
successful program procurement management. Through the planning activity, the
program manager looks across all program components and develops a
comprehensive plan that optimizes the procurements to meet program objectives
and for the delivery of program benefits. To do this, program procurement
management addresses commonality and differences for the various procurements
across the program scope and determines:
·
Whether some of the common needs of several
individual components could best be met with one overall procurement
rather than several separate procurement actions;
·
The best mix of the types of procurement
contracts planned across the program; at the component level, a particular
type of contract (e.g., firm-fixed-price) may appear to be the best procurement
solution, but a different contract type (e.g., incentive fee) may be optimal
for that same procurement when viewed at the program level;
·
The best program-wide approach to competition
·
The best program-wide approach to balancing
specific external regulatory mandates
Question: How is the an analysis of alternatives is
performed in the planning stage?
Answer: This may include requests for information (RFIs), feasibility studies,
trade studies, and market analysis to determine the best fit of solutions and
services to meet the specific needs of the program.
The outputs of this activity include:
·
Program procurement standards
·
Program procurement management plan
·
Program budget/financial plan updates
8.1.2.8 PROGRAM QUALITY MANAGEMENT PLANNING
The program quality management plan is a
component of the program management plan that describes how an organization’s
quality policies will be implemented.
Program quality policies, objectives, and
responsibilities are established a part of this process.
When initiating the program, the cost of the
level of quality requirements should be evaluated and incorporated into the
business plan.
Quality is a variable cost in all components and
should be considered as such in the program quality management plan.
IMP Concept: It is beneficial to analyze program quality in
order to evaluate it across the program with the goal of combining quality
tests and inspections in order to reduce costs, where feasible.
IMP Concept: When developing a program resource management
plan, it is recommended that a program quality manager participate in the
planning activity to verify that quality activities and controls are applied
and flow down to all the components, including those performed by
subcontractors.
The output of this activity is a program quality management plan that
may contain:
·
Program quality policy
·
Program quality standards
·
Program quality estimates of costs
·
Quality metrics, service level agreements, or
memorandums of understanding
·
Quality checklists
·
Quality assurance and control specifications.
8.1.2.9 PROGRAM RESOURCE MANAGEMENT PLANNING
The
primary purpose of resource management is to ensure all required resources
(people, equipment, material, etc.) are made available to the component
managers to enable the delivery of benefits for the program.
Resource management planning involves:
1. identifying
existing resources
2. the need
for additional resources.
Question: Who is responsible analyzing the availability
and allocation of resources?
Answer: The program manager analyzes the availability
of each resource, in terms of both capacity and capability, and determines how
these resources will be allocated across components to avoid overcommitment or
inadequate support.
Question: What
tools can be used to determine the types of resources?
Answer: Historical information may be used that were
required for similar projects and programs.
Very Imp Concept: The resource management plan is a component of
the program management plan that forecasts the expected level of resource use
across the program components and relative to the program master schedule to
allow the program manager to identify potential resource shortfalls or
conflicts over the use of scarce or constrained resources.
Question: What the guidelines for making program resource
prioritization decisions and resolving resource conflicts?
Answer: The resource management plan
If the resources are unavailable within the
program, the program manager calls upon the larger organization for assistance.
At times to procure resources, the
program manager should work with the organization to develop a statement of
work (SOW) to contract the necessary resources.
The outputs of this activity include:
·
Program resource requirements
·
Program resource management plan.
8.1.2.10 PROGRAM RISK MANAGEMENT PLANNING
Program risk management planning identifies how
to approach and conduct risk management activities for a program by considering
its components.
Question: When is the program risk management planning
activity should be conducted?
Answer: It is conducted early in the program definition
phase.
Risk management planning may be done any time
substantial changes to a program takes place. The program risk register is a
living document that is updated as program risks and risk responses change
during program delivery.
It is essential to define risk profiles of
organizations to construct the most suitable approach to managing program
risks, adjusting risk sensitivity, and monitoring risk criticality.
Question: Where are the
risk profiles expressed?
Answer: in
policy statements or revealed in actions. These actions may highlight
organizational willingness to embrace high-threat situations or a reluctance to
forgo high-opportunity choices.
Imp Concept:
1. Culture of
the organization and stakeholders also plays a role in shaping the approach to
risk management.
2. Lessons
learned from executing similar programs in the past are also critical assets to
be reviewed as a component of establishing an effective risk management plan.
The outputs from this activity include:
·
Program risk management plan, and
·
Program risk register.
8.1.2.11 PROGRAM SCHEDULE MANAGEMENT PLANNING
The program schedule management activity
determines the order and timing of the components needed to produce the program
benefits.
Program schedule management planning begins with
the program scope management plan and the program work breakdown structure
(WBS), which defines how the program components are expected to deliver the
program’s outputs and benefits.
Question: What is developed prior to the detailed
schedules of the individual components are available?
Answer: The initial program master schedule. The
program’s delivery date and major milestones are developed using the program
roadmap and the program charter.
Question: What does the program master schedule define?
Answer: It is the top-level program planning document
that defines the individual component schedules and dependencies among program
components (individual components and program-level activities) required to
achieve the program goals.
It should include those component milestones
that represent an output to the program or share interdependency with other
components.
The first draft of a program master schedule
often only identifies the order and start/end dates of components and their key
interdependencies with other components. Later, it may be enriched with more
intermediate component results as the component schedules are developed.
The program master schedule provides the program
team/stakeholders with a visual representation of how the program is going to
be delivered through its life cycle.
Imp Concept: Program
Schedule planning may lead to identification of risks so may be input to the
risk register.
Changes in the program master schedule may
require changes in the program roadmap, and changes in the program roadmap
should be reflected in the program master schedule.
The outputs of this activity include:
·
Program schedule management plan
·
Program master schedule
·
Inputs to the program risk register
·
Updates to the program roadmap
Program
scope management planning includes all of the activities involved in planning
and aligning the program scope with the program’s goals and objectives.
Question: What should Program scope
should always be aligned to?
Answer: It should always be aligned to the goals and
objectives.
It includes work decomposition into deliverable
component products designed to deliver the associated benefits.
Question: What is Program scope is typically described as?
Answer: In the form of expected benefits but may also
be described as user stories or scenarios depending on the type of program.
Program scope encompasses all benefits to be delivered by the program, which
are reflected in the form of a program WBS.
Imp Concept: A program WBS is a deliverable-oriented
hierarchical decomposition encompassing the total scope of the program, and it
includes the deliverables to be produced by the constituent components.
Elements not in the program WBS are outside the scope of the program. The
program WBS includes, but is not limited to, program management artifacts such
as plans, procedures, standards, processes, program management deliverables,
and program management office (PMO) support deliverables.
Question: When does the Decomposition in WBS stop?
Answer: It stops at the level of control required by
the program manager (typically to the first one or two levels of a component).
Program WBS serves as framework for developing
program master schedule and defines the program manager’s management control
points.
Question: What is an essential tool for building
realistic schedules, developing cost estimates, and organizing work?
Answer: WBS
Question: What provides framework for reporting, tracking, and
controlling of scope?
Answer: WBS
Care should be taken to avoid decomposing
component-level scope into details that overlap the component managers’
responsibilities.
Question: What happens once the scope is developed?
Answer: Scope management plan should be developed. It
is a plan for managing, documenting, and communicating scope changes should be
developed during the program definition phase. The program scope management
plan is a component of the program management plan that describes how the scope
will be defined, developed, monitored, controlled, and verified.
The outputs of this activity include:
·
Program scope statement
·
Program scope management plan
·
Program work breakdown structure (WBS)
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