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Information Systems Project Manager (3rd Edition) 4. Cost Management
Mainly learn project cost management knowledge, mainly involving the four processes of project cost management: planning costs, estimating costs, controlling budgets, controlling costs, etc.
Edited at 2020-09-18 04:50:48
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Information Systems Project Manager (3rd Edition) 4. Cost Management
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Information Systems Manager (PMBOK)
4. Cost management
Overview
1. Project cost management is to ensure that the project is completed within the approved budget.
2. Type of cost.
(1) Variable costs: Costs that change with production volume, workload, or time are variable costs. Variable costs are also called variable costs.
(2) Fixed costs: Non-recurring costs that do not change with changes in production volume, workload, or time are fixed costs.
(3) Direct costs: Costs that are directly attributable to project work are direct costs. Such as project team travel expenses, wages, materials and equipment usage fees used in the project, etc.
(4) Indirect costs: The expenses allocated to this project from the general administrative expense account or the project costs shared by several projects form the indirect costs of the project, such as taxes, additional benefits, and security costs.
(5) Opportunity cost: When a certain amount of time or resources is used to produce a commodity, the lost opportunity to use these resources to produce other best substitutes is the opportunity cost, which generally refers to one of the biggest losses after making a choice.
(6) Sunk costs: It refers to the cost that cannot be changed by any decision now or in the future because a decision has been made in the past. Sunk cost is a historical cost and is an uncontrollable cost for existing decisions. It will greatly affect people's behavior and decision-making. The interference of sunk cost should be eliminated when making investment decisions.
3. Contingency reserves and management reserves.
(1) The contingency reserve is a portion of the budget included in the cost baseline to deal with identified risks that have been accepted and for which contingency or mitigation measures have been developed. A contingency reserve is usually a portion of the budget that is used to deal with known-unknown risks that may affect the project. For example, you can predict that some project deliverables will need to be reworked, but you don’t know how much rework will be required, and you can set aside a contingency reserve to deal with these unknown amounts of rework. No senior management approval is required before use.
(2) Management reserve is a project budget specially set aside for management control purposes to deal with unforeseen work within the project scope. Management reserves are used to address “unknown-to-unknown” risks that may affect the project. Management reserves are not included in the cost baseline but are part of the overall project budget and funding requirements and require senior management approval before use. When management reserves are used to fund unforeseen work, the used management reserves are added to the cost baseline, thereby causing the cost baseline to change.
4. The cost baseline is an approved time-based cost expenditure plan that reflects approved project cost changes (increase or decrease in funds) at any time and is used to measure and monitor the actual execution costs of the project. The cost baseline is the sum of the approved budgets for different schedule activities.
5. Main steps in project cost estimation. There are three main steps required to prepare a project cost estimate:
(1) Identify and analyze the component accounts of costs.
(2) Based on the identified project cost components, estimate the cost of each account.
(3) Analyze the cost estimation results, find out various costs that can replace each other, and coordinate the proportional relationship between various costs.
project cost management process
20. Planning cost management
enter
1. Project management plan (scope baseline, schedule baseline, other information)
2. Project Charter
3. Business environment factors
4. Organizational process assets
Tools and Techniques
1.Meeting (4)
2. Expert judgment (1)
3.Analytical techniques
output
cost management plan
21. Estimate costs
enter
1. Cost management plan
2. Human resources management plan
3. Scope benchmark
4.Project schedule plan
5. Risk Register
6. Business environment factors
7. Organizational process assets
Tools and Techniques
1. Expert judgment (1)
2. Analogous estimation
3. Parameter estimation
4. Bottom-up estimation
5. Three-point estimate
6. Reserve analysis (contingency reserve, management reserve)
7.Quality cost
8. Project management software
9. Seller’s bid analysis
10. Group decision-making techniques (brainstorming, Delphi method, nominal group technique)
output
1. Activity cost estimation
2. Basis for estimation
3. Project document updates (risk register)
22. Make a budget
enter
1. Cost management plan
2. Range baseline
3. Activity cost estimation
4. Basis for estimation
5. Project schedule
6. Resource Calendar
7. Risk Register
8. Agreement (cost of purchased products, services or results and only agreement information)
9. Organizational process assets
Tools and Techniques
1. Cost summary
2. Reserve analysis
3. Historical relationship
4. Funding Constraint Balancing (balancing funding expenditures against any restrictions on project funding)
output
1. Cost basis
2. Project funding requirements
3. Project document updates (risk register, activity cost estimates, project schedule)
23. Control costs
enter
1. Project management plan (cost baseline, cost management plan)
2. Project funding requirements (expenditure, estimated debt)
3. Work performance data (data on project progress)
4. Organizational process assets
Tools and Techniques
1. Earned value management
2. Prediction
3. Performance index required for completion
4.Performance review
5. Project management software
6. Reserve analysis
output
1. Job performance information
2. Cost forecast
3. Change request
4. Project management plan update
5. Project file update
6. Organizational process asset updates
Project cost management techniques and tools
Cost analysis techniques: analogical estimation, parametric estimation, bottom-up estimation, etc.
1. Technical analysis.
Available technologies include (but are not limited to):
(1) Payback period: It refers to the time elapsed when the future net cash flow of an investment project is equal to the original investment amount, that is, the time required for the original investment amount to be recovered through future cash flow.
(2) Return on investment: It refers to the value that should be returned through investment, that is, the economic return that an enterprise receives from an investment activity.
(3) Internal rate of return: Also known as the internal rate of return (IRR) or internal rate of return, it is the discount rate that makes the net present value of an investment project equal to zero. It actually reflects the true return of the investment project.
(4) Cash flow discount: It is to restore the expected cash flow of the enterprise in a specific future period to the current present value.
(5) Net present value (NPV): It refers to the difference between the present value of cash inflows expected to be realized by a project and the present value of cash expenditures to implement the plan.
2. Analogy estimation: This technique is often used to estimate cost values when there is insufficient project detail, such as in the early stages of a project. Analogous estimates are generally less expensive and less time-consuming, but they are also less accurate.
3. Parameter estimation: Utilize statistical relationships between historical data and other variables (such as square footage in building construction) to produce cost estimates for project work. The accuracy of parameter estimation depends on the maturity of the parameter model and the reliability of the underlying data.
4. Bottom-up estimating is a method of estimating work components. Start by making the most specific and detailed estimate of the cost of a single work package or activity; then roll up or "roll" these detailed costs up to a higher level for subsequent reporting and tracking. The accuracy of a bottom-up estimate, and the cost itself, often depends on the size and complexity of the individual activity or work package.
Cost management technology: cost summary, reserve analysis, net worth management, forecasting, etc.
5. Three-point estimate: The accuracy of activity cost estimates can be improved by taking into account the uncertainty and risk in the estimate and using three estimates to define an approximate range of activity costs:
(1) Most likely cost (CM). The cost of an activity resulting from a more realistic estimate of the work required and associated costs.
(2) The most optimistic cost (CO). The resulting cost of an activity based on its best case scenario.
(3) The most pessimistic cost (CP). The resulting cost of an activity based on its worst-case scenario. A formula is used to calculate expected cost (CE) based on the assumed distribution of activity costs over three estimate intervals. Two common formulas based on the triangular distribution and the beta distribution are as follows: Triangular distribution CE = (CO CM Cp) /3 Beta distribution CE = (CO 4 CM Cp) /6 Calculate the expected cost based on the assumed distribution of three points, and explain the uncertainty interval of the expected cost.
6. Reserve analysis: Management reserves and emergency reserves need to be distinguished.
7. Quality cost: When estimating activity costs, various assumptions about quality costs may be used.
8. Seller’s bid analysis: During the cost estimating process, it may be necessary to analyze project costs based on bids from qualified sellers.
9. Cost summary: Cost estimates are first summarized into work packages in the WBS, and then summarized from the work packages to higher levels (such as control accounts), and finally the total cost of the entire project is obtained.
10. Historical relationship: There may be some historical relationships between relevant variables that can be used for parameter estimation or analogy estimation. Based on these historical relationships, project characteristics (parameters) can be used to build mathematical models to predict the total project cost.
11. Fund limit balance: Fund expenditures should be balanced against any restrictions on project funding. If discrepancies between funding constraints and planned expenditures are discovered, the work schedule may need to be adjusted to balance the level of funding expenditures. This can be accomplished by adding mandatory dates to the project schedule.
12. Earned value analysis and forecasting techniques.
(1) Planned value PV: Is the approved budget allocated for program work. It is an approved budget prepared to complete an activity or work breakdown structure component, excluding management reserves.
(2) Completion budget BAC: The total planned value of the project.
(3) Earned value: Earned value (EV) is a measurement of work performed, expressed in terms of the budget allocated to that work. It is an approved budget for the work completed.
(4) Actual cost: Actual cost (AC) is the actual cost incurred to perform a certain work within a given period of time. It is the total cost incurred to complete the work corresponding to EV.
(5) Progress deviation: Schedule Variance (SV) is a measure of schedule performance expressed as the difference between earned value and planned value. It refers to how far ahead or behind a project is at a given point in time. Formula: SV=EV-PV. SV>0, the progress is ahead; SV<0, the progress is lagging behind.
(6) Cost deviation: Cost variance (CV) is the budget deficit or surplus at a given point in time, expressed as the difference between earned value and actual cost. Formula: CV=EV-AC. CV＞0, cost saving; CV＜0, cost overrun.
(7) Progress performance index: The Schedule Performance Index (SPI) is a measure of schedule efficiency expressed as the ratio of earned value to planned value. It reflects how efficiently the project team uses their time. SPI is equal to the ratio of EV to PV. Formula: SPI=EV/PV. SPI>1, the progress is ahead; SPI<1, the progress is lagging behind.
(8) Cost performance index: The Cost Performance Index (CPI) is a measure of the cost efficiency of budgeted resources, expressed as the ratio of earned value to actual costs. Formula: CPI=EV/AC. CPI>1, cost saving; CPI<1, cost overrun.
(9) EAC: Estimate at Completion.
EAC=AC BAC-EV The current deviation is regarded as atypical (atypical: mistakes can be corrected if they are known)
EAC=AC (BAC-EV)/CPI The current deviation is regarded as representing the typical deviation in the future (typical: make mistakes and make mistakes)
(10) VAC: Completion Variance, which is the difference between the completion budget and the completion estimate. The formula is VAC=BAC-EAC.
[Additional knowledge points]
1. The decision to make or buy needs to consider both direct and indirect costs.
2. Cost estimators should consider factors related to risk, because responses to risks require costs, and risks almost always increase costs and delay schedules. However, when making cost estimates, there is no need to consider the profitability of the project.
3. Steps of cost budgeting.
(1) Allocate the total project cost to each work package in the project work breakdown structure. The decomposition is from top to bottom, and different decomposition weights are set according to the number of occupied resources.
(2) Reallocate the cost of each work package to the activities included in the work package.
(3) Determine the time plan for each cost budget expenditure and the project cost budget plan.
3. Progress Management
2. Scope management
1. Overall management
Calculation problems
Information Systems Project Manager Tutorial (3rd Edition)
Chapter 1 Informatization and Information Systems
Chapter 2 Basics of Information System Project Management 145
Chapter 3 Project Management 179
Chapter 4 Overall Project Management 209
4.1 Overview of overall project management 209
4.2 Develop a project charter 210
4.2.1 Process of developing project charter 211
4.2.2 Basis for formulating project charter 212
4.2.3 Expert judgment 215
4.2.4 Project selection method 215
4.2.5 Project kick-off meeting 218
4.2.6 Project Goals 219
4.2.7 Guidance technology 221
4.3 Develop project management plan 221
4.3.1 Project Management Plan 221
4.3.2 Process of developing project management plan 225
4.3.3 Project management information system 226
4.4 Direct and manage project execution 227
4.4.1 Basis for guiding and managing project execution 229
4.4.2 Tools and techniques to guide and manage project execution 229
4.4.3 Guide and manage the results of project execution 230
4.5 Monitoring project work 231
4.5.1 Basis for monitoring project work 232
4.5.2 Tools and techniques for monitoring project work 233
4.5.3 Implementing the results of project work 233
4.6 Implement overall change control 234
4.6.1 Basis for overall change control 235
4.6.2 Tools and techniques for overall change control 236
4.6.3 Results of overall change control 236
4.7 Closing a project or phase 237
4.7.1 Basis for ending the project or phase 237
4.7.2 Tools and techniques for closing a project or phase 238
4.7.3 Outputs from closing a project or phase 238
4.8 Exercises for this Chapter 239
Chapter 5 Project Scope Management 242
5.1 Scope Management Overview 242
5.1.1 Product scope and project scope 242
5.1.2 The importance of scope management 243
5.1.3 The process of scope management 243
5.2 Planning scope management 245
5.2.1 Scope Management Plan 245
5.2.2 Demand Management Plan 246
5.3 Collecting requirements 247
5.3.1 Classification of requirements 247
5.3.2 Tools and techniques for collecting requirements 248
5.3.3 Requirements document 253
5.3.4 Requirements tracking 254
5.4 Defining scope 256
5.4.1 Tools and techniques for defining scope 257
5.4.2 Project Scope Statement 258
5.5 Create a work breakdown structure (WBS) 259
5.5.1 WBS levels 259
5.5.2 Decomposition 261
5.5.3 The role of WBS 265
5.6 Confirmation scope 265
5.6.1 Overview of validation scope 266
5.6.2 Stakeholder concerns 266
5.6.3 Comparison of several terms 267
5.7 Control scope 268
5.8 Exercises for this Chapter 269
Chapter 6 Project Progress Management 273
6.1 Overview 273
6.1.1 Implications of project schedule management 273
6.1.2 The role of project progress management 273
6.2 Project progress management process 274
6.2.1 Planning progress management 274
6.2.2 Defining activities 276
6.2.3 Sequencing activities 277
6.2.4 Estimating activity resources 278
6.2.5 Estimating activity duration 280
6.2.6 Develop a schedule 282
6.2.7 Controlling progress 289
6.3 Techniques and tools for project schedule management 291
6.3.1 Estimation of workload and construction period 291
6.3.2 Techniques and tools for sequencing project activities 294
6.3.3 Techniques and tools for developing project schedules 297
6.3.4 Project schedule adjustment method 305
6.4 Case examples 306
6.5 Exercises for this Chapter 308
Chapter 7 Project Cost Management 311
7.1 Overview 311
7.1.1 Project cost concept and its components 311
7.1.2 The role and significance of project cost management 311
7.1.3 Importance of project cost management 311
7.1.4 Reasons why project costs are out of control 312
7.1.5 Related terms 313
7.2 Project cost management process 314
7.2.1 Planning costs 315
7.2.2 Estimating costs 316
7.2.3 Develop a budget 320
7.2.4 Control costs 323
7.3 Techniques and tools for project cost management 325
7.3.1 Cost analysis techniques 325
7.3.2 Cost management technology 327
7.4 Exercises for this Chapter 332
Chapter 8 Project Quality Management 334
8.1 Basics of quality management 334
8.1.1 Quality and project quality 334
8.1.2 Quality Management 335
8.1.3 Quality management standard system 335
8.2 Project quality management process 338
8.2.1 Planning quality management 339
8.2.2 Implement quality assurance 341
8.2.3 Controlling quality 342
8.3 Techniques and tools for project quality management 344
8.3.1 Technology in the planning phase 344
8.3.2 Execution phase technologies 346
8.4 Case examples 350
8.5 Exercises for this Chapter 351
Chapter 9 Project Human Resources Management 353
9.1 Project Human Resources Management Concept 353
9.1.1 Project Team 353
9.1.2 Project Management Team 353
9.1.3 Leadership and management 354
9.1.4 Conflict and competition 354
9.2 Project Human Resources Management Process 355
9.2.1 Planning human resource management 355
9.2.2 Forming a project team 359
9.2.3 Building the project team 362
9.2.4 Managing project teams 365
9.3 Project Human Resources Management Tools 368
9.3.1 Virtual Teams 368
9.3.2 Centralized office 368
9.3.3 Team development stage 369
9.3.4 Interpersonal skills 369
9.3.5 Power 370
9.3.6 Conflict Management 371
9.3.7 Motivation theory 372
9.3.8 Maslow’s Hierarchy of Needs Theory 372
9.3.9 Herzberg’s two-factor theory 374
9.3.10 Theory X and Theory Y 375
9.3.11 Expectation theory 376
9.4 Project Human Resources Management Documents 377
9.4.1 Human Resource Management Plan 377
9.4.2 Roles and Responsibilities 377
9.4.3 Project Organization Chart 379
9.4.4 Staffing Management Plan 379
9.4.5 Team performance evaluation 380
9.5 Project Human Resources Management Case 381
9.5.1 Typical Case 1 381
9.5.2 Typical case 2 382
9.6 Exercises for this Chapter 383
Chapter 10 Project Communication Management and Stakeholder Management 388
10.1 Basics of project communication management 388
10.1.1 The Importance of Project Communication Management 388
10.1.2 Related theories of project communication management 388
10.2 Project communication management process 391
10.2.1 Planning communication management 391
10.2.2 Management communication 393
10.2.3 Control communication 395
10.3 Techniques and Tools for Project Communication Management 396
10.4 Fundamentals of Project Stakeholder Management 399
10.4.1 The Importance of Project Stakeholders 399
10.4.2 Main contents of project stakeholder management 399
10.4.3 Management basis for project stakeholders 399
10.5 Project Stakeholder Management Process 400
10.5.1 Identifying stakeholders 400
10.5.2 Planning stakeholder management 401
10.5.3 Managing Stakeholders 402
10.5.4 Control stakeholder participation 404
10.6 Techniques and Tools for Project Stakeholder Management 405
10.7 This one-day exercise 407
Chapter 11 Project Risk Management 409
11.1 Overview of Project Risk Management 409
11.1.1 Project risk definition 409
11.1.2 Attributes of risk 410
11.1.3 Classification of risks 411
11.1.4 Risk costs and burdens 413
11.1.5 Project Risk Management Process 414
11.1.6 The status and role of project risk management in project management 415
11.2 Planning risk management 416
11.2.1 Basis for planning risk management 417
11.2.2 Tools and techniques for planning risk management 417
11.2.3 Planning Risk Management Outcomes 418
11.3 Identifying risks 420
11.3.1 Basis for risk identification 421
11.3.2 Tools and techniques for risk identification 422
11.3.3 Results of risk identification 423
11.4 Conducting Qualitative Risk Analysis 424
11.4.1 Basis for implementing qualitative risk analysis 424
11.4.2 Tools and techniques for conducting qualitative risk analysis 425
11.4.3 Results of implementing qualitative risk analysis 427
11.5 Implementing Quantitative Risk Analysis 428
11.5.1 Basis for implementing quantitative risk analysis 429
11.5.2 Tools and techniques for implementing quantitative risk analysis 429
11.5.3 Results of implementing quantitative risk analysis 432
11.6 Planning Risk Responses 433
11.6.1 Basis for planning risk response 433
11.6.2 Tools and techniques for planning risk responses 434
11.6.3 Outcomes of planned risk responses 436
11.7 Controlling risks 437
11.7.1 Basis for risk control 437
11.7.2 Tools and techniques for risk control 438
11.7.3 Results of risk control 439
11.8 Risk Management Example 440
11.9 Exercises for this Chapter 442
Chapter 12 Project Procurement Management 444
12.1 Overview 444
12.2 Strategic cooperation management 444
12.2.1 The concept of strategic supplier partnership 445
12.2.2 The significance of establishing strategic partnerships with suppliers 445
12.2.3 Construction of strategic partnership with suppliers 445
12.2.4 Approval and signing of strategic cooperation agreement 447
12.2.5 Management of strategic partnership with suppliers 447
12.2.6 Partnership evaluation 448
12.3 Procurement management process 448
12.3.1 Planning Procurement 450
12.3.2 Implement procurement 455
12.3.3 Controlling Procurement 458
12.3.4 Ending Procurement 462
12.4 Procurement management techniques and tools 463
12.4.1 Application of procurement management methods and technologies 463
12.4.2 Procurement management information system 468
12.4.3 Tendering 468
12.5 Case examples 473
12.6 Exercises for this Chapter 474
Chapter 13 Project Contract Management 476
13.1 Basic concepts related to contract management 476
13.1.1 Types of contracts 476
13.1.2 Contents of the contract 481
13.2 Contract Management Process 482
13.2.1 Contract signing management 482
13.2.2 Contract performance management 483
13.2.3 Contract change management 484
13.2.4 Contract file management 484
13.2.5 Contract breach claims management 484
13.3 Exercises for this Chapter 487
Chapter 14 Information Document Management and Configuration Management 490
14.1 Information system project documentation and management 490
14.1.1 Information system project related information (documentation) 490
14.1.2 Planning and methods of information system project document management 491
14.2 Configuration Management 492
14.2.1 Concept of configuration management 492
14.2.2 Goals and policies of configuration management 497
14.2.3 Daily configuration management activities 498
14.3 Document management and configuration management tools 502
14.3.1 Tool Overview 502
14.3.2 SVN 503
14.3.3 CC 503
14.3.4 GIT 504
14.4 Exercises for this Chapter 505
Chapter 15 Knowledge Management 507
15.1 Concepts of knowledge and knowledge management 507
15.1.1 Knowledge and knowledge management 507
15.1.2 Project knowledge management 509
15.2 Commonly used methods and tools for knowledge management 510
15.2.1 Management of explicit knowledge 510
15.2.2 Management of tacit knowledge 511
15.2.3 Knowledge management tools 513
15.2.4 Learning Organization 513
15.3 Intellectual Property Protection 516
15.3.1 Copyright Law 516
15.3.2 Computer software protection regulations 518
15.3.3 Trademark Law 519
15.3.4 Patent Law 520
15.3.5 Unfair Competition Law 521
15.3.6 Intellectual Property Issues in Project Management 522
15.4 Exercises for this Chapter 523
Chapter 16 Project Change Management 529
16.1 Basic concepts of project change management 529
16.1.1 Reasons for project changes 529
16.1.2 Project change classification 530
16.1.3 The meaning of project changes 530
16.2 Project Change Management Principles 530
16.3 Change management organization structure and work procedures 531
16.3.1 Organization 531
16.3.2 Work procedures 531
16.4 Work content of project change management 533
16.4.1 Strictly control the submission of project change applications 533
16.4.2 Change Control 533
16.4.3 The relationship between change management and other project management elements 534
16.5 version release and rollback plan 534
16.5.1 Preparation before software version release 534
Emergency rollback plan for version 16.5.2 535
16.5.3 Summary of version release and rollback implementation process 535
16.6 Exercises for this Chapter 535
Chapter 17 Strategic Management 538
17.1 Organizational strategic management 538
17.1.1 Strategy and strategic management 538
17.1.2 Main contents of organizational strategy 539
17.1.3 Decomposition of strategy implementation process 539
17.2 Types and levels of organizational strategies 541
17.2.1 Types of organizational strategies 541
17.2.2 Organizational strategic level 545
17.3 Decomposition of organizational strategic goals 546
17.3.1 Concept of decomposition of organizational strategic goals 546
17.3.2 Organizational strategy and project management 547
17.4 Exercises for this Chapter 549
Chapter 18 Organizational Project Management 551
18.1 Overview of Organizational Project Management 551
18.2 Organizational-level project management supports organizational strategy 551
18.3 Organizational-level project management content 552
18.4 Organizational Project Management Maturity Model 553
18.5 Exercises for this Chapter 554
Chapter 19 Process Management 556
19.1 Basics of process management 556
19.2 Process analysis, design, implementation and evaluation 558
19.2.1 Business process analysis 558
19.2.2 Business process design 561
19.2.3 Business process implementation 565
19.2.4 Business process assessment 567
19.3 Process reconstruction and improvement 568
19.3.1 BPR Overview 569
19.3.2 Implementation of BPR 570
19.3.3 Information system planning based on BPR 572
19.3.4 Continuous optimization of business processes 573
19.4 Management and optimization of project management process 574
19.4.1 Optimization of project management process 574
19.4.2 Agile Project Management 576
19.5 Exercises for this Chapter 578
Chapter 20 Program Management 584
20.1 Overview of Program Management 584
20.1.1 Program Management Standards 584
20.1.2 Definition of various roles and responsibilities 584
20.1.3 Program Management 585
20.2 Program Management Process 586
20.2.1 Assess program alignment with organizational strategy 586
20.2.2 Program vision and planning 587
20.2.3 Program Roadmap 587
20.3 Program Governance 588
20.3.1 Main contents of program governance 588
20.3.2 Program Steering Committee 589
20.3.3 Program Steering Committee Responsibilities 590
20.3.4 Program Financing 590
20.3.5 Establish a program governance plan 590
20.3.6 Approval of program performance approach and plan 591
20.3.7 Program component governance 592
20.3.8 Other activities to support program governance 592
20.4 Program life cycle management 594
20.4.1 Program life cycle division 594
20.4.2 Program definition phase 594
20.4.3 Program Benefits Delivery Phase 596
20.4.4 Program Closing Phase 597
20.5 Program Management Process Area 597
20.5.1 Program Management Performance Domain 597
20.5.2 Program Management Support Process 598
20.6 Exercises for this Chapter 598
Chapter 21 Project Portfolio Management 601
21.1 Overview of Project Portfolio Management 601
21.1.1 Project Portfolio 601
21.1.2 Relationships between portfolios, programs, and projects 602
21.2 Project Portfolio Management 603
21.2.1 The relationship between project portfolio management and organizational project management 603
21.2.2 Project Portfolio Management and Organizational Strategy 604
21.2.3 Business value 605
21.3 Portfolio Components 606
21.3.1 Program Management 606
21.3.2 Project Management 607
21.3.3 Daily operation management 607
21.3.4 Project Portfolio Governance 607
21.4 Project Portfolio Management Process Implementation 608
21.4.1 Project Portfolio Management Process Implementation Overview 608
21.4.2 Assess the current state of the project portfolio management process 608
21.4.3 Define the vision and plan for project portfolio management 609
21.4.4 Implementing the project portfolio management process 610
21.4.5 Improving the project portfolio management process 610
21.4.6 Project Portfolio Management Life Cycle 611
21.5 Project Portfolio Governance 611
21.6 Project Portfolio Management Process Group 612
21.6.1 Project Portfolio Management Process Group 612
21.6.2 Defining process groups 613
21.6.3 Aligning process groups 613
21.6.4 Authorization and Control Process Group 613
21.6.5 Interaction of project portfolio management processes 613
21.7 Project Portfolio Risk Management 614
21.7.1 Develop a project portfolio risk management plan 617
21.7.2 Managing project portfolio risks 622
21.8 Exercises for this Chapter 628
Chapter 22 Information System Security Management 631
22.1 Information system security strategy 631
22.1.1 Concept and content of information system security policy 631
22.1.2 Establishing a security policy requires good relationships 632
22.1.3 Information system security policy design principles 635
22.1.4 Information system security plan 636
22.2 Information Security System Engineering 637
22.2.1 Overview of Information Security System Engineering 637
22.2.2 Information security system 639
22.2.3 Information security system architecture 643
22.2.4 Information security system engineering foundation 645
22.2.5 Information security system engineering architecture 647
22.3 PKI Public Key Infrastructure 655
22.3.1 Basic concepts of public key infrastructure (PKI) 655
22.3.2 Digital certificate and its life cycle 660
22.3.3 Trust model 664
22.3.4 Application Mode 668
22.4 PMI permissions (authorization) management infrastructure 670
22.4.1 The difference between PMI and PKI 671
22.4.2 Attribute Certificate Definition 672
22.4.3 Access control 673
22.4.4 Role-based access control 675
22.4.5 PMI support system 676
22.4.6 PMI implementation 680
22.5 Information Security Audit 681
22.5.1 Security audit concepts 681
22.5.2 Establishing a security audit system 684
22.5.3 Distributed audit system 689
Chapter 23 Comprehensive testing and management of information systems 693
23.1 Testing Basics 693
23.1.1 Software testing model 693
23.1.2 Software testing types 701
23.2 Software testing technology 737
23.2.1 Black box testing method 737
23.2.2 White box testing method 762
23.3 Information system test management 767
23.3.1 Test Management Overview 767
23.3.2 Test management content 767
23.3.3 Test monitoring management 768
23.3.4 Configuration Management 769
23.3.5 Test Risk Management 769
23.3.6 Tester performance appraisal 770
23.4 Exercises for this Chapter 776
Chapter 24 Project Management Maturity Model 780
24.1 Project Management Maturity Model Overview 780
24.2 OPM3 781
24.2.1 Overview of Organizational Project Management Maturity Model OPM3 781
24.2.2 Basic concepts of OPM3 788
24.2.3 Organizational Project Management Maturity Model (OPM3) 794
24.3 CMMI 811
24.3.1 About process improvement 811
24.3.2 About Capability Maturity Model Integration 812
24.3.3 CMMI process area 814
24.3.4 CMMI representation and levels 819
24.3.5 CMMI assessment method and process improvement 826
24.4 Exercises for this Chapter 828
Chapter 25 Quantitative Project Management 831
25.1 Overview of Quantitative Project Management 831
25.2 Quantitative project management process 832
25.2.1 Preparing for quantitative management 832
25.2.2 Quantitative management projects 833
25.3 Quantitative project management process indicators 834
25.4 Project measurement methods 838
25.5 Quantitative Project Management Tools 843
25.6 Exercises for this Chapter 844
Chapter 26 Intellectual Property and Standards and Regulations 847
26.1 Contract Law 847
26.1.1 Conclusion of contract 847
26.1.2 Validity of contract 849
26.1.3 Performance of contract 850
26.1.4 Change and transfer of contract 852
26.1.5 Termination of rights and obligations under the contract 852
26.1.6 Liability for breach of contract 854
26.1.7 Other provisions 855
26.2 Tendering Law 855
26.2.1 Tendering 855
26.2.2 Bidding 857
26.2.3 Bid evaluation 858
26.2.4 Legal liability 859
26.3 Authorship Law 860
26.4 Government Procurement Law 862
26.4.1 Government procurement parties 863
26.4.2 Government procurement methods 864
26.4.3 Government procurement procedures 864
26.4.4 Government procurement contracts 866
26.4.5 Questioning and disapproval 867
26.4.6 Legal liability 867
26.5 National Standard for Software Engineering 869
26.5.1 Basic knowledge of standardization 869
26.5.2 Basic standards 871
26.5.3 Life cycle management standards 874
26.5.4 Documented standards 875
26.5.5 Quality and testing standards 878
26.6 Exercises for this Chapter 880
Chapter 27 Basic knowledge of management science 884
27.1 Basic knowledge of mathematical modeling 884
27.2 Graph Theory 886
27.2.1 Minimum spanning tree 886
27.2.2 Shortest path 888
27.2.3 Network and Maximum Traffic 890
27.3 Decision Theory 893
27.3.1 Classification and models of decision-making 893
27.3.2 Uncertain Decision Making 894
27.3.3 Sensitivity analysis 896
27.4 Linear Programming 897
27.5 Dynamic Programming 900
27.6 Exercises for this Chapter 903
Chapter 28 Project Management Process Practice and Case Analysis 911
28.1 The evolution of project management process 911
28.1.1 Initial state 911
28.1.2 Improvement 1: Standardize project establishment standards, track implementation status, and approve project completion basis 912
28.1.3 Improvement 2: Stage review, deviation control 913
28.1.4 Improvement 3: Standardize internal processes through process audit 913
28.1.5 Improvement 4: Enhance process control and improve operation accuracy 914
28.1.6 Continuous improvement: Continuously improve efficiency through process optimization and new tools/methods 915
28.2 Project management process practice based on PMBOK 916
28.2.1 SMCI process improvement model 916
28.2.2 Rigidity, optimization and solidification 918
28.2.3 Process improvement project 921
28.2.4 Project management process tailoring method 924
28.2.5 Management Best Practices 927
28.3 —Integrated Project Management Process Practice 930
28.3.1 Background of integration 930
28.3.2 —Goals of integration 931
28.3.3 Stage workflow diagram 931
28.3.4 —Integrated management system 933
28.3.5 Relationship with ISO, CMMI, and PMBOK 935
28.4 Case Study: Project Management in Real Environment 936
28.4.1 Project background 936
28.4.2 Project Start 937
28.4.3 Encountering difficulties 937
28.4.4 Project Manager Shi Tao 938
28.4.5 Project backbone Han Li 939
28.4.6 Case Analysis 940
References 946
3. Progress Management
4. Cost management
5. Quality management
6. Human resources management
7. Communication Management
8. Risk Management
9. Procurement Management
10. Stakeholder Management
Five major processes of project management
start up
planning
implement
monitor
ending
Preparation