Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall o P.I.I.M.T o American University of Leadership Ahmed Hanane, MBA, Eng, CMA, Partner

Resource Management Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

After completing this chapter, students will be able to: Recognize the variety of constraints that can affect a project, making scheduling and planning difficult. Understand how to apply resource-loading techniques to project schedules to identify potential resource overallocation situations. Apply resource-leveling procedures to project activities over the baseline schedule using appropriate prioritization heuristics. Follow the steps necessary to effectively smooth resource requirements across the project life cycle. Apply resource management within a multiproject environment

FIGURE 12.1Nissan’s LEAF Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

 Time  Resource  Mixed 12-05

FIGURE 12.3 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 12-06

FIGURE 12.5 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 12-07

FIGURE 12.6 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 12-08

A multivariate, combinatorial problem Objectives o To determine the resource requirements so that they will be available at the right time o To allow each activity to be scheduled with the smoothest possible transition across resource usage levels 12-09

 Smallest amount of slack  Smallest duration  Lowest ID number (FCFS)  Greatest number of successor tasks  Requiring the most resources

1. Create a project activity network diagram 2. Develop resource loading table 3. Determine activity late finish dates 4. Identify resource over allocation 5. Level the resource loading table 12-11

Display the amount of resources required as a function of time. 0 A4 Res = 6 4 B5 Res = 2 5 D9 Res = 7 9 E11 Res = 3 4 C7 Res = 2 11 F12 Res = 6 1.Start with a network diagram 12-12

Creating Resource Loading Charts 2/4 ActivityResourceDurationESSlackLF A64004 B21405 C D74509 E3290 F Produce a table that shows the duration, early start, late finish, slack, and resource(s) required for each activity. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 12-13

A C B D E F Project Days Resources 3.Draw an initial loading chart with each activity scheduled at its ES. Resource imbalance 12-14

4.Rearrange activities within their slack to create a more level profile. Splitting C creates a more level project. A C B D E F Project Days Resources C 12-15

 Schedule slippage  Resource utilization  In-process inventory 12-16

o First come first served o Greatest resource demand o Greatest resource utilization o Minimum late finish time o Mathematical programming 12-17

Project Evaluation and Control Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

After completing this chapter, students will be able to: Understand the nature of the control cycle and four key steps in a general project control model. Recognize the strengths and weaknesses of common project evaluation and control methods. Understand how Earned Value Management can assist project tracking and evaluation. Use Earned Value Management for project portfolio analysis. Understand behavioral concepts and other human issues in evaluation and control. Understand the advantages of Earned Schedule methods for determining project schedule variance, schedule performance index, and estimates to completion

FIGURE 13.1 Power Generation at the Te Apiti Wind Farm Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

FIGURE 13.2 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

FIGURE 13.3 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

FIGURE 13.4 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Milestones are events or stages of the project that represent a significant accomplishment. Milestones … show completion of important steps … signal the team and suppliers … can motivate the team … offer reevaluation points … help coordinate schedules … identify key review gates … delineate work packages

FIGURE 13.5 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

FIGURE Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

FIGURE 13.7 Project status is updated by linking task completion to the schedule baseline Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Schedule Cost Performance Tracking Control Charts Cost PerformanceSchedule Earned Value Project S-Curves Cost PerformanceSchedule 13-28

 Planned Value (PV)  Earned Value (EV)  Actual Cost of work performed (AC)  Schedule Performance Index (SPI)  Cost Performance Index (CPI)  Budgeted cost at Completion (BAC) 13-29

1. Clearly define each activity including its resource needs and budget 2. Create usage schedules for activities and resources 3. Develop a time-phased budget (PV) 4. Total the actual costs of doing each task (AC) 5. Calculate both the budget variance (CV) and schedule variance (SV) 13-30

FIGURE Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 13-31

FIGURE Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

ActivityJanFebMarAprilPlan%CValue Staffing Blueprint Prototype Design33331 Mon Plan ∑30 Cmltv Mon Act Cmltv Act Planned Value 38= Earned Value 30= Value 8=80%(10) Cumulative 40= Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 13-33

Schedule Variances Planned Value (PV) = 38 = Earned Value (EV) = 30 = Schedule Performance Index =.79 = 30/38 = EV/PV Estimated Time to Completion = (1/.79)x4=5 Cost Variances Actual Cost of Work Performed (AC) = 40 = Cost Performance Index =.75 = 30/40 = EV/AC Estimated Cost to Completion = 50.7 = (1/.75)x

FIGURE Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 13-35

13-36 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall FIGURE Source: Lipke (2003)

Accurate and up-to-date information is critical in the use of EVM  0/100 Rule  50/50 Rule  Percentage Complete Rule 13-37

 Optimistic progress reports  Level of detail  Process evaluation  Non-technical performance measurement 13-38

1. Project mission 2. Top management support 3. Project plans & schedules 4. Client consultation 5. Personnel 6. Technical tasks 7. Client acceptance 8. Monitoring & feedback 9. Communication channels 10. Troubleshooting 13-39

1. Understand the nature of the control cycle and four key steps in a general project control model. 2. Recognize the strengths and weaknesses of common project evaluation and control methods. 3. Understand how Earned Value Management can assist project tracking and evaluation. 4. Use Earned Value Management for project portfolio analysis. 5. Understand behavioral concepts and other human issues in evaluation and control. 6. Understand the advantages of Earned Schedule methods for determining project schedule variance, schedule performance index, and estimates to completion

1. Recognize the variety of constraints that can affect a project, making scheduling and planning difficult. 2. Understand how to apply resource-loading techniques to project schedules to identify potential resource overallocation situations. 3. Apply resource-leveling procedures to project activities over the baseline schedule using appropriate prioritization heuristics. 4. Follow the steps necessary to effectively smooth resource requirements across the project life cycle. 5. Apply resource management within a multiproject environment

Understand the differences between common cause and special cause variation in organizations. Recognize the three ways in which project teams inflate the amount of safety for all project tasks. Understand the four ways in which additional project task safety can be wasted. Distinguish between critical path and critical chain project scheduling techniques. Understand how critical chain methodology resolves project resource conflicts. Apply critical chain project management to project priorities