Chapter 7 Schedule Control 1 1 1 1 1 1 1 1 1

Learning Objectives Perform the steps in the project control process Determine the effects of actual schedule performance on the project schedule Incorporate project changes into the schedule Calculate an updated project schedule Control the project schedule 2 2 2 2 2 2 2 2 2 2 2

Real World Example Vignette: Internal Revenue Service The US IRS has been upgrading its IT infrastructure and business applications. The $8 billion project includes the new Customer Account Data Engine (CADE) 5 years into project, CADE was almost three years behind schedule and 40% over budget. Reasons for delay: poor communication, lack of accountability, managers and system users were not consulted, IRS gave contractors little direction, and they gave approval to protocols without testing them Requirements were not met with new system designs Improvements made by the IRS: accountability established, employees are given specific tasks, and managers and system users are providing more input Through better project management, the IRS hopes the system upgrade will be completed as soon as possible 3 3 3 3 3 3 3 3 3 3 3

Real World Example Vignette: Nike Rebounds In 2000, Nike implement a new demand-planning supply chain system, called “i2.” It didn’t work because of a glitch, and Nike lost $100 million in sales “i2” was built in a hurry. It resulted in too many or too few orders for many products. This fragmented Nike’s supply chain, instead of centralizing it Nike fixed their failed project by: increasing efforts to fix the software problems with i2, implementing a test plan, and requiring extensive employee training The company decided to continue using the i2 for its clothing sales. They applied the mistakes they made with i2 to their new project, an enterprise resource planning system for sneaker orders 4 5 5 4 5 4 4 4 4 4

Project Control Process The key to effective project control is to measure actual progress and compare it to planned progress on a timely and regular basis and to take required corrective action immediately. Establish a regular reporting period. During each reporting period, collect: data on actual performance information on any changes to project scope, schedule and budget. Changes mean a new plan must be established. 5 7 7 5 7 5 5 5 5 5

Effects of Actual Schedule Performance Actual finish times (AFT) of completed activities will determine the earliest start and earliest finish times for the remaining activities. 6 8 8 6 8 6 6 6 6 6

Incorporating Project Changes into the Schedule Changes might be initiated by the customer or the project team, or they might be the result of an unanticipated occurrence. The degree of impact may depend on when the changes are requested. When the customer requests a change, additional costs might need to be charged. 7 10 10 7 10 7 7 7 7 7

Updating the Project Schedule An updated project schedule can be calculated based on actual finish times of completed activities 8

Approaches to Schedule Control Four Steps Analyze the schedule Decide what corrective actions should be taken, if any Revise the plan Recalculate the schedule 9 11 11 8 11 8 9 8 8 8

Approaches to Schedule Control (Cont.) A change in the estimated duration of any activity will cause a corresponding change in the slack for that path. When a path of activities has negative slack, focus on: Activities that are near term. Activities that have long estimated durations. 10 14 14 9 14 9 10 9 9 9

Reducing the Estimated Durations Apply more resources. Assign a person with greater expertise to perform or help with the activity. Reduce the scope or requirements for an activity. Totally eliminate some activities. Increase productivity through improved methods or technology. 11

Approaches to Schedule Control (Cont.) Reducing durations of activities usually results in an increase in costs or a reduction in scope. The key is to effectively address paths with negative or deteriorating slack values as soon as they are identified. 12

Schedule Control for Information Systems Development Common necessary changes during IS development projects: Changes to input screens Changes to reports Changes to on-line queries Changes to database structures Changes to software processing routines Changes to processing speeds 13 16 16 10 16 10 13 10 10 10

Project Management Software The software allows you to perform various control functions. The percent complete for each task can be entered. Changes to the duration estimates can be entered. The software will automatically revise the project schedule and the corresponding network diagrams. 14 17 17 11 17 11 14 11 11 11

Appendix Time-Cost Trade-Off Each activity can have two pairs of duration and cost estimates Normal time and cost Time to complete under normal conditions Cost if done in normal time Crash time and cost Shortest possible length to complete the activity Cost if done in crash time

Time-Cost Trade-Off (cont.) Assumptions Activity duration can be shortened by applying more resources with an associated cost Crash time is the shortest possible duration Resources for acceleration are available Relationship between time and cost is linear Crash cost – Normal Cost cost per time period ------------------------------ Normal time – Crash time

A: Max accel: C: Max accel: Cost/wk: Cost/wk: B: Max accel: D: Max accel: Cost/wk Cost/wk:

Time-Cost Trade-Off (cont.) Objective of time-cost trade-off Determine shortest completion time By crashing activities with smallest cost increase Method: Shorten project duration one period at a time Crash only activities on critical path(s) with lowest cost per period increase Until get shortest possible project completion time

Project duration: 18 weeks Project cost: $200,000 $6k/period $10k/period $5k/period $6k/period Reduce by 1 wk CP: Which activity to accelerate: New duration: New cost:

Project duration: Project cost: $6k/period $10k/period N = 9 $5k/period $6k/period Reduce by 1 wk CP: Which activity to accelerate: New duration: New cost:

Project duration: Project cost: $6k/period $10k/period N = 9 N = 7 $5k/period $6k/period Reduce by 1 wk CP: Which activity to accelerate: New duration: New cost:

Project duration: Project cost: $6k/period $10k/period N = 9 N = 6 $5k/period $6k/period Reduce by 1 wk CP: Which activity to accelerate: New duration: New cost: