Principles of Project Management

Presented By:

Hisham Rafik, MBA, PMP

Course Outline
1. 2. 3. 4. 5. 6. Project Management Framework Project Initiation Project Planning - Scope Definition Project Planning - Schedule Development Project Planning - Risk Management Project Planning - Budgeting

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Section Four
Project Planning Schedule Development

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Project Planning Process

Scope Definition Schedule Development Risk Management Plan Budgeting Plan Compilation and Approvals

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Project Planning Process

Schedule development 1. Activity Definition Convert work packages to manageable tasks project activities 2. Activity Sequencing Sequence and link the tasks and milestones PERT chart (Network Diagram) 3. Activity Resource Estimating: Identify the resources available and Assign Responsibility for each task (or group of tasks) Responsibility Assignment Matrix 4. Activity Duration Estimating: Estimate the Duration for each activity Activity Duration Estimates 5. Schedule Development: Calculate the Critical Path and Develop project schedule GANTT Chart
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Project Time Management 1. Activity Definition

Identifying and documenting the work that is planned to be performed. Identifying the deliverables at the lowest level in the WBS (work package) Project work packages are decomposed into smaller

component called schedule activity to provide a basis for estimating, scheduling, executing, monitoring and controlling the project works.
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Project Time Management Activity Definition

Inputs
1. Enterprise environmental factors 2. Organizational process assets 3. Project scope statement 4. WBS 5. WBS dictionary 6. Project management plan
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Tools &Techniques
1. Decomposition 2. Templates 3. Rolling wave planning 4. Expert judgment 5. Planning component

Outputs
1. Activity List 2. Activity attributes 3. Milestone list 4. Requested changes

Project Time Management Activity Definition, Tools & Tech

1.

Decomposition
Subdividing project work package into smaller, more manageable components called schedule activities.

2.

Templates
A standard activity list or a portion of an activity list from a previous project. It can also contain a list of resource skills and their required hours of effort, identification of risks, expected deliverables, and other descriptive information.
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Project Time Management Activity Definition, Tools & Tech

3.

Rolling wave planning

Rolling wave planning is a form of progressive elaboration planning, where the work to be accomplished in the near term is planned in detail at the low level of the WBS, while work far in the future is planned for WBS component that are at a relatively high level of the WBS.

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Milestones
Milestones are zero duration activities that show key events in the project: Project/Phase Start and Completion points Financial payments due date Key approval points
Completion of project deliverables
Design submitted/approved Ready for Acceptance (RFA) Provisional Acceptance Certificate (PAC) Final Acceptance Certificate (FAC) Site Ready For Installation (RFI) Equipment shipped/delivered to handover point Equipment custom cleared
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Equipment/Sites handover points

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Project Time Management Activity Definition, Outputs

1. 2.

Activity List Activity attributes Includes the activity identifier, codes, description, predecessor, successor, logical relationship, .leads & lags, resource requirements, imposed dates, constraints and assumptions. Milestone list Identifies all milestones and indicates milestones is mandatory or optional. Requested changes
whether the

3.

4.

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Project Time Management 2. Activity Sequencing

Activity sequencing the involves identifying and documenting logical relationships among

schedule activities. Sequencing can be performed by using project

management software or by using manual technique.

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Project Time Management Activity Sequencing

Inputs 1. Project scope statement 2. Activity List 3. Activity attributes 4. Milestone list 5. Approved change requests Tools &Techniques 1. Precedence Diagramming Method (PDM) 2. Arrow Diagramming Method (ADM) 3. Schedule network templates 4. Dependency determination 5. Applying leads and lags
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Outputs 1. Project schedule network diagrams 2. Activity List (Updates) 3. Activity attributes (Updates) 4. Requested changes

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The Network Diagram (PERT Chart)

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Guidelines for Developing a Network Diagram

Dont worry about time estimates or drawing the network diagram to scale. Concentrate on the relationships. Make sure there is only one Start box and one End box. Every task must connect to another task or to the start or end of the project Avoid Dangling activities Indicate key milestones in this network diagram Remember that this is a communication tool; it must be clear to all who use it.

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Dependency determination
1. Mandatory dependencies (Hard Logic)
Are those that are inherent in the nature of the work being done. They often involve physical limitations.

2. Discretionary dependencies (Soft Logic)

Are defined by the project management team. They should be used with care (and fully documented), since they may limit later scheduling options.

3. External dependencies
Are those that involve a relationship between project activities and non-project activities.
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Dependencies Relationships
(A) Finish-To-Start (B) Start-To Start
Predecessor Activity A Activity A Activity B Successor Activity B

(C) Finish-To-Finish
Activity A

(D) Start-To-Finish
Activity A

Activity B

Activity B
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Applying leads and lags

Finished to start
- Activity (A) must finish before (B) can start

6 FS 0

10

Finished to start (FS + 3wks lag)

- Activity (A) Must be finished for 3 weeks before (B) can start - The start of activity (B) lags the finish of (A) by 3 week - The finish of A leads the start of B by 3 weeks

A (du = 4)

B (du=3) A (du = 4) FS+3 B (du=3) A (du = 4) B (du=3)

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Finished to start (FS - 3wks lag)

- Activity (B) can start three weeks prior to the finish of (A) . - The start of activity (B) leads the projected finish of (A) by 3 weeks - The finish of (A) lags the start of (B) by 3 weeks

FS-3

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Project Time Management 3. Activity Resource Estimating

Estimating schedule activity resource involves determining what resources (persons, equipment, or material) and what quantities of each resource will be used, and when each resource will be available to perform project activities.

The

activity

resource

estimating

process

is

closely

coordinated with the cost estimating process.

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Project Time Management Activity Resource Estimating

Inputs
1. Enterprise environmental factors 2. Organizationa l process assets 3. Activity list 4. Activity attributes 5. Resource availability 6. Project management plan
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Tools &Techniques
1. Expert judgment 2. Alternatives analysis 3. Published estimating data 4. Project management software 5. Bottom-up estimating

Outputs
1. Activity resource requirements 2. Activity attributes (Updates) 3. Resource breakdown structure 4. Resource calendar (updates) 5. Requested changes

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Activity Resource Planning

1. Identify all needed/available resources for the project:
Manpower Machines Material Money

2.

Resource Allocation

Assign the resources needed to each activity We can use the Responsibility Assignment Matrix to document this allocation

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Responsibility Assignment Matrix

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Project Time Management 4. Activity Duration Estimating

The process of estimating schedule activity durations uses information on schedule activity scope of work, required resource types, estimate resource quantities, and resource calendars with resource availabilities. Estimating the number of work periods required to complete an activity.

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Project Time Management Activity Duration Estimating

1. 2. 3. 4. 5. 6. 7. 8. Enterprise environmental factors Organizational process assets Project Scope Statement Activity list Activity attributes Activity Resource Requirements Resource Calendar Project management plan Risk Register Activity Cost Estimates

Inputs

Tools &Techniques
1. Expert Judgment 2. Analogous Estimating 3. Parametric Estimating 4. Three point Estimating 5. Reserve Analysis

Outputs
1. Activity duration Estimates 2. Activity attributes (Updates)

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Activity Duration Estimation

Activity duration estimation depends on: Number of resources assigned Capability of those resources to do the work The person responsible for the activity should provide its duration estimate Techniques for Estimation Expert judgment Analogous Estimating: Top-Down Parametric Estimating: Quantitatively based duration 3 point Estimating

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Project Time Management Activity Duration Estimating, Tools & Tech

1. Analogous Estimating (Top-Down estimating)
Means using the actual duration of a previous, similar activity as the basis for estimating the duration of a future activity. It is frequently used to estimate project duration when there is a limited amount of detailed information about the project (e.g., in the early phases)

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Project Time Management Activity Duration Estimating, Tools & Tech

2. Parametric Estimating
Determined by multiplying the quantity of work to be performed by the productivity rate. (i.e., meter of cables, tons of steel, number of drawings, etc.) Expected Qty. for Activity A: 10 units Productivity unit rate: 2 day / unit Total duration: 20 days

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Project Time Management Activity Duration Estimating, Tools & Tech

3. Three point Estimating
Most Likely Optimistic:- Based on a best scenario Pessimistic:- Based on a worst scenario

4. Reserve Analysis
Additional time frame, called reserve, buffer, or contingency, that can be added to the activity duration or elsewhere in the schedule as recognition of schedule risk.

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Activity Duration Estimates Three point estimating

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Activity Duration Estimates Three point estimating

The Optimistic Time (O) Is the minimum time an activity could take (the situation, where every thing goes well) The Most Likely Time (M) Is the normal time to complete the job. It is the time would occur most frequently if the activity could be repeated. The Pessimistic Time (P) Is the maximum time an activity could take (the situation, where bad luck is encountered at every step) Expected Time = (O+ 4*M +P) /6 Standard Deviation = (P O) / 6
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Project Time Management 5. Schedule Development

Schedule development means determining planned start and finish dates for project activities. Schedule Development analyzing activity sequences, activity durations, and resource requirements to create the project schedule. The schedule development process must often be iterated prior to determination of the project schedule.

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Project Time Management Schedule Development

1. Organizational process assets 2. Project Scope Statement 3. Activity list 4. Activity attributes 5. Project Schedule Network diagram 6. Activity Resource Requirements 7. Resource Calendar 8. Activity duration Estimates 9. Project management plan Risk Register
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Inputs

1. Schedule Network Analysis 2. Critical Path Methods 3. Schedule Compression 4. What-if Scenario Analysis 5. Resource Leveling 6. Critical Chain Method 7. Project Management Software 8. Applying Calendars 9. Adjusting Leads and Lags 10. Schedule Model

Tools &Techniques

Outputs
1. Project Schedule 2. Schedule Model data 3. Schedule Baseline 4. Resource Requirements (updates) 5. Activity attributes (updates) 6. Project Calendars (updates) 7. Requested Changes 8. Project Management Plan (updates) - Schedule Management plan
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Critical Path Analysis (CPA)

Forward path Project Duration Backward path Critical path and activity Float Critical path = the longest continuous sequence of tasks in a network Float (Slack) = the maximum allowance for delay in an activity Failures on the critical path are very serious, and will impact the delivery date As the project progresses, the critical path may change as a function of actual task performance; delays in non-critical path activities might make them critical
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Project Time Management Schedule Development, Outputs

1. Project Schedule
Project network diagram Bar chart (Gantt chart)
Activity A Activity B Activity C Activity D

Jun

Jul

Aug

Sep

Oct

Nov

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Project Schedule (GANTT Chart)

Activity GANTT chart is used to: Show project plan (all activities and milestones) on a time scale
Report detailed project progress/status to project manager and project team
Where do we exactly stand now on all activities and milestones What we are supposed to be doing at any moment of time

Milestones Chart/Table Similar to bar chart, but only identify the scheduled start or completion of major deliverables.
Report progress to Management and Customer
Financials, Approvals, Deliverables, handover points

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Project Time Management Schedule Development, Outputs

2. Schedule Model Data Supporting data for the project schedule includes at least the schedule milestones, schedule activities, activity attributes and documentation of all identified assumptions and constraints. 3. Schedule Baseline Is the accepted and approved version of the project schedule.

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Schedule Compression
Shortens the project schedule without changing the project scope, to meet schedule constraints, imposed dates, or other schedule objectives. Focus on tasks on the critical (and near critical) path and seek ways to shorten Methods for schedule Compression
Crashing Fast tracking

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Schedule Compression
Crashing:
Cost and schedule tradeoffs are analyzed to determine how to obtain the greatest amount of compression for the least incremental cost. Focus on shortening the duration of critical path tasks Normally involves More cost Examples:
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Increase number of work days/hours Knowledge 2008 Principles which you have available Shorten tasks for of Project Management

Schedule Compression
Fast Tracking:

Doing activities in parallel that would normally be done in sequence. Re-plan serial paths to be in parallel Overlap sequential tasks Fast tracking often results in rework and usually increases risk. Fast-tracking More risk
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Project Time Management Schedule Development

A C
Activity Optimistic Most likely Pessimistic

B D
Expected duration (O+ 4*M +P) 6 Standard Deviation (P O) 6 0.67 0.67 1 0.33 0.44 0.44 1 0.11 Variance

A B C D

2 3 4 4

4 5 7 5

6 7 10 6

4 5 7 5

Expected Project duration = 14 Project duration, standard deviation =

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0.44 + 0.44 + 0.11 = 1.00

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Project Time Management Schedule Development

Crashing Cost
A C B D

Activity A B C D

Normal duration 4 5 7 5

Crash duration 2 4 6 4

Normal cost $ 6000 5000 8000 6000

Crash cost $ 8000 5750 8500 8000

Crash cost / day 1000 750 500 2000

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Activity Resource Planning

1. 2. 3. Identify all needed/available resources for the project: Resource Allocation Resource Utilization

Draw the resource Histogram that shows the total number of resources needed during each time period of the project Smoothen the use resources across the project total duration to ensure that resources needed (shown on the histogram) do not exceed resources available (as per list of identified resources)

4.

Resource leveling

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Resource Leveling
300 275 250 225 200 175 150 125 100 75 50 25 0

Resource Histogram
Senior Designers

Resource Usage

16 23 30 6

13 20 27 6

13 20 27 3

10 17 24 1

15 22

Jan
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Mar

Apr

May
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Resource Leveling (Over-allocation)

Tasks can be shifted or extended within their float. Use overtime to meet the demand Use of temporary help Contract out a portion of the workload Increase the size of the resource pool permanently. Select a portion of the workload to be delayed beyond its approved completion date (Nice-tohave).

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Resource Leveling (Under-allocation)

Tasks can be moved within their float to take advantage of the resource pools available time. Overtime can be eliminated Management can consider reducing the size of the resource pool Low-priority work can be moved up in the organizations schedule Use these periods to develop new methods for the cost-effective performance of the work of the resource pool. Cross-train staff during these periods.

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Schedule Development Outputs

Schedule Baseline
Is the accepted and approved version of the project schedule.
GANTT Chart Milestone Chart (or table) Network Diagram Resource Histograms
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Project Planning Process

Schedule development 1. Activity Definition Convert work packages to manageable tasks project activities 2. Activity Sequencing Sequence and link the tasks and milestones PERT chart (Network Diagram) 3. Activity Resource Estimating: Identify the resources available and Assign Responsibility for each task (or group of tasks) Responsibility Assignment Matrix 4. Activity Duration Estimating: Estimate the Duration for each activity Activity Duration Estimates 5. Schedule Development: Calculate the Critical Path and Develop project schedule GANTT Chart
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