cs4 schedules budgets

7/31/2019 Cs4 Schedules Budgets

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Project Management

Class Meeting 4 Sessions 7&8

Managing TIME & MONEY:Schedules & Budgets


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Mid-term ReminderMonday 1-4

The Schedule

Critical Path

Compressing the Schedule

Finalizing the BudgetProject Team Meeting

Agenda

7/23/2012Hult Project Management 2


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Covers key aspects of Project Initiation & Planningfrom our first 4 classes:

assigned readings to date,

cases & content discussions Textbook chapters 1-11

Consists of 30 questions:

10 multiple choice (2 points each)

10 short answer (3 points each)

10 calculation & short essay questions based on aproject scenario (5 points each)


Mid-Term Reminder


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Project Initiation Create Project Charter (delivered)

Project Planning

Write Project Definition (Scope & SOW)(delivered) Analyze Risk Management Elements (due 7/16) Create WBS (partial delivery)

Define task relationships pending

Estimate work packages - pending Build Initial Schedule - pending Assign/Level Resources - pending Determine Budget - pending


Project Planning Snapshot


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Hult Project Management

Work Packages, Re-Cap

Key Technical Deliverable esp for IT projects Drill down one or more levels in technical detail for

each task Assign a Coordinator for each package

What level of detail is appropriate for WORKPACKAGES?

Enough that continuity can be maintained if thecoordinator is no longer available.

Enough that the Project Manager is confident thatthe task will meet the required deliverable.


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NEEDED: WBS Detailed breakdown of work

Task sequences in right order Dependencies identified

Effort estimates most likely optimistic pessimistic Use MOST LIKELY for the initial schedule

Project Start date

THEN create a Network Diagram VISUALIZING the flow through the activities


Building THE Schedule


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Task Dependencies (F-Finish S-Start)

FS Task B starts when A finishes(A then B most common activity relationship ex. codethen test)

SS Task B starts when A starts(ex: data collection & data entry ok to start enteringdata as soon as collection starts)

SF Task B cannot finish before A starts(ex: de-install old PC B after new PC A is installed)

FF Task B cannot finish before A finishes (dataentry cannot complete before all data collection hasended)



Some Considerations forSequencing Tasks

1. What has to come first?

2. When can a specific task start?

Ex. Is it after activity X finishes or anytime after activityY starts?

3. Use F-S (Finish Start) to begin with (simplestrelationship)

4. What sub-projects can run simultaneously?5. Include Lag variables (waiting for delivery) and

Management Float (overall padding) as needed



Graph the Schedule =The Network Diagram

Task List from the WBS Identify Predecessors & Successors Lay out the schedule

1. White Board approach using yellowstickies or drawn boxes2. Identify WHAT type dependency is used.3. Draw lines between activities as needed.

Review with the project team for changes &

adjustments.

THE GOAL get it visual and then review itleft & right, backwards & forwards(a picture can replace 1000 words)


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Activity Information BY NODE


TASK ID = Effort =

ES date EF date

LS date LF date

FLOAT


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Activity Chain

ACTIVITY TIME

A 7

AB 10

AC 8

AD 4

BC 2

BE 3

CF 5

DF 2EF 1

One way to describe the flowthrough the network :

Activity ID =node-node

LETs DIAGRAM THIS

Network TOGETHER on theboard.

Start with A and diagram each link as identified on the list.


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On the back of the handout from lastclass exercise there is a list of activities

with predecessors & effort.

Take 5 minutes and create the

network diagram for this littleproject. You can work alone or withyour neighbor.


Class Exercise


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Activity Effort (inweeks)

Predecessors

A 3 NoneB 5 AC 5 AD 4 A

E 2 C,DF 3 B,E


WBS Activity Relationships

A

D

C

B

E

F

What comes first?Which have multiple predecessorrelationships?

WHAT are the PATHS through this

network diagram? What is thetime for each path?

3

3

3

3

2

3


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Activity Representations

Copyright 2003 by Robert K. Wysocki, Rudd McGary. All rights reserved.

Activity on Node Diagrams ^

Activity on Arrow Diagrams >


Verzuh text example (figure 7.4pp166-7): shows details of the

activity (effort/start-finish) on thenode


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Calculating THE SCHEDULE

Follow all paths through the arrowdiagram, calculating the starts & finishes:

EF = ES + duration - 1 time unit ES = EF of predecessor + 1 time unit

LS = LF-duration + 1 time unit

LF = LS (next activity) 1 time unit

Slack = LF-EF

PM software tools will do this calculation for you,but it is good to know how to do it manually


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Identify Constraints

Technical Constraints Discretionary force a particular relationship

because of specific conditions (new hires, controllingrisk, etc)

Best Practices complete design then completebuild vs agile cycles of design/build

Logical project managers approach to sequencing(another form of discretionary)

Unique specific to a project resource or situation(test equipment availability, holiday break)


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Identify Constraints

Management Constraints often based on outside forces or strategic planning

decisions Inter-project Constraints esp. for partitioned projects or connected sub-

projects

Date Constraints for a specific date or no earlier/no later than a date


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Types of Diagrams

Network (arrow) Diagrams esp for the initialproject analysis & review better way to view

dependencies & task connections Example: http://www.uyea.btinternet.co.uk/jaon.html

Gantt Charts (bar chart) useful during on-going project reviews (whats up next, howlong, etc)

See next slide for Gantt example
http://www.uyea.btinternet.co.uk/jaon.htmlhttp://www.uyea.btinternet.co.uk/jaon.htmlhttp://www.uyea.btinternet.co.uk/jaon.html


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Activity Effort (inweeks)

Predecessors

A 3 NoneB 5 AC 5 AD 4 A

E 2 C,DF 3 B,E


Gantt Chart

Once you are happy with the schedule flow,Enter data into PM tool and allow it to graph

your data.

Excel example:cs4-simple network +gantt.xlsx
http://localhost/var/www/apps/conversion/current/tmp/scratch17857/cs4-simple%20network%20+gantt.xlsxhttp://localhost/var/www/apps/conversion/current/tmp/scratch17857/cs4-simple%20network%20+gantt.xlsxhttp://localhost/var/www/apps/conversion/current/tmp/scratch17857/cs4-simple%20network%20+gantt.xlsxhttp://localhost/var/www/apps/conversion/current/tmp/scratch17857/cs4-simple%20network%20+gantt.xlsx


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Critical Path (CP)

Slack = Float = LF-EF (OR LS-ES)

EX: Project xyz: activity 12.3 has the

following starts/finishes: EF = 3; LF=5; ES=25 WHAT IS THE FLOAT?

If on critical path, slack/float will be 0

Critical Path = Longest path or sequence ofactivities(in terms of duration) from START toFINISH

CP is initially calculated for the schedulewithout taking RESOURCES into account.


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So far, our schedule ASSUMES

100% staff available at all times

the work is scheduled based on

task inter-relationships, and

estimated effort to complete the workNOW we need to apply RESOURCES

against the activities


Final Step for Your ScheduleASSIGN & LEVEL RESOURCES


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Who is available, when?

Consider assigning your best people to the mostcrucial tasks

What level of effort per day per resource? Full days, half days, 2 days/week, etc.

Try to balance levels of effort assigned to teammembers

try not to overload a couple key members, whileonly lightly using several others on the team.


Resource ManagementMOSTLY people some equipment


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ASSIGN resources to the activities

If using PROJECT this will happen by virtue ofentering resource assignment for each activity.

If using a different tool or Excel, you will assignresources per that tool or manually against eachactivity

Review resource utilization against availability

for constraints.THE TEXT BOOK Lawn example: 1 home owner,

3 teens & outside contractors illustrates this

process very effectively. 7/23/2012Hult Project Management 23

Resource ManagementAutomated vs. Manual


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Leveling resources is a method by which oneadjusts the schedule to accommodate:

LIMITED quantity of specific resources

LIMITED resources at specific times BALANCING resource utilization over time

LEVELING MAY CHANGE THE CRITICAL PATH!!

When the initial schedule over-allocates aresource, leveling is needed.


RESOURCE LEVELING


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Microsoft Project provides for aresource calendar as well as a Resource

definition that allows the user to adjusta resource/staff persons availability.Project then uses up the resource as

available, adjusting the schedule, oridentifying a resource over-allocation.


Resource Leveling


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Schedule Compression usingResource Leveling

Utilize available slack Adjust starts/finishes to use up slack where it exists to

allow for staff availability

Modify Work Packages into smaller units Scheduled concurrently using similar staff.

Shift activity dependencies Use SS instead of FS where possible

Obtain extra or outside resources (smoothing)

scheduled overtime to meet a specific deadline STREEETCHING activities across a longer

timeframe (less % resource per day) LIKELY to IMPACT PROJECT SCHEDULE!


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1. Create a RESOURCE SCHEDULE spreadsheet,showing the resource availability over theproject timeline.

2. Using the initial schedule with resourcesassumed at ES, review resource utilization,identifying peak usage.

3. For each PEAK, delay noncritical tasks withintheir float (resource started later than ES, untilactivity float is used up)

4. For PEAKs still remaining, adjust work packagesor re-evaluate what simultaneous work canoccur, and re-calculate schedule after changes.

5. CONTINUE until resource utilization is leveled.


Resource Leveling


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Analyze the Diagram & Schedule

Does it achieve the desired finish date?

Have all the concurrent processes beenidentified and changed?

If still significantly off the finish date,

you may need to identify scopereductions to accommodate thedesired finish.


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Resource Management

What would you expect the initialresource plan to look like aftercompressing the schedule?

Why does resource leveling makesense

What role would you plan foroutside or contract resources?


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Other issues to consider

How to include time for Projectmeetings, administrative reporting time

Project Manager deliverables reports,status updates

TO WHAT LEVEL OF DETAIL should theProject Manager manage?


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This is a technique used to balance thecosts of reducing the FINISH date bycompressing individual activitydurations against the benefits ofcompleting the project sooner.

We will discuss this in detail

in our next class (July 16th).


Crashing the Schedule


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The project budget is key to manyaspects of the project: Funding Approval to proceed

Return on Investment should we even

do it? Adequate resources to complete the

project


FINALLY the MONEY!!


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FROM THE WBS ACTIVITY LIST:

LABOR COSTS Effort (hours or days)

Level of staff/resource (cost per hour or day)

Effort * cost = labor cost

MATERIAL COSTS Can be tracked per activity OR on a separate schedule

IT: Hardware/software purchase costs

Marketing: media advertising costs Facilities (Hotel): cost per item

Construction: rental/use of major equipment


Project Budget


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Do not forget to include projectmanagement effort throughout the project

Project Manager

Project Team

FOR larger projects:

Include some project administration or adminassistance for data entry, reporting, and statusupdates coordination from the team.


Project Management Costs


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For YOUR projects

What kinds of costs are you tracking?How are you determining these

costs?

Any issues with respect to costs &budgets?


PROJECT COSTS


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Use the right people to makeestimates

Based on experience3 levels of accuracy:Ballpark estimates

Order of magnitudeDetailed estimates


Estimator Golden Rules


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PM Process to date

1. IDENTIFYgoals & requirements

2. BREAKDOWNrequirements into activities (work

packages)that together will achieve the goals3. ANALYZEeach activity for duration, required

resources, predecessors & successors

4. CREATEnetwork diagram & calculate Critical Path

5. ASSIGNresources & level

6. CREATEproject budget


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Creating the SCHEDULE

Case Heathrow

Assigning RESOURCES

Creating the BUDGET

Mid-term Monday 1-4pm


Content Re-Cap


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Next class July 16th. Due BEFORE class:

All deliverables to date with updates to

finish partial documents PLUSNetwork Chart with CP

Risk Analysis

Test Plan(How will you measure QUALITY completion?)


For Next Class


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Use this time to discuss

SchedulesBudgets

Upcoming Deliverables

Mid-term preparation

Team Meeting

cs4 schedules budgets

Documents