Project Schedule and Budget 1

T HE P ROJECT P LANNING F RAMEWORK 2

P ROJECT T IME M ANAGEMENT AS DEFINED IN PMBOK Activity Definition Activity Sequencing Activity Duration Estimation Schedule Development Schedule Control 3

PMBOK P ROJECT C OST M ANAGEMENT Resource planning Cost estimating Cost budgeting Cost control 4

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ACTIVITY DEFINITION Activity Definition Tools & Techniques Templates Decomposition Rolling Wave Planning Expert Judgment Scope Baseline Org Process Assets Enterprise Environment Factors Activity List Milestone List Activity attributes 6

ACTIVITY SEQUENCING Activity Sequencing Tools & Techniques Precedence Diagram Method Schedule network Templates Dependency Lead and Lags Project Scope Stmt Org Process Assets Activity List Milestone List Activity attributes Project Schedule Network Diagram Doc Updates 7

ACTIVITY D URATION E STIMATION Activity Duration Estimation Tools & Techniques Expert Judgment Analogous Est Parametric Est 3 – pt Est Reserve Analysis Project Scope Stmt Org Process Assets Activity List Milestone List Activity attributes Activity Duration Estimate chart Doc Updates Enterprise Environment Factors Resource plan, Calenders 8

S CHEDULE D EVELOPMENT Schedule development Tools & Techniques What if analysis CPM Resource chart Lead and Lags Project Scope Stmt Org Process Assets Activity List Milestone List Activity attributes Project Schedule Schedule Baseline Enterprise Environment Factors Resource plan, Calendars Activity Duration Estimate chart PDU Schedule Data 9

S CHEDULE C ONTROL Schedule Control Tools & Techniques Performance Analysis Variances Resource Leveling What if Analysis Leads & Lags Schedule compression Scheduling Tool Project Management Plan Org Process Assets Work Perf Plan Schedule Project Plan Work Perf Measure Request change 10

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S CHEDULE D EVELOPMENT Put it all together to determine the start and end dates for the project Iterations may be necessary A realistic project schedule is the goal! 12

D EVELOPING THE P ROJECT S CHEDULE Project Management Tools Gantt Charts Project Network Diagrams Activity on the Node (AON) Critical Path Analysis Program Evaluation and Review Technique (PERT) Precedence Diagramming Method (PDM) 13

G ANTT C HART FOR P LANNING 14

G ANTT C HART R EPORTING P ROJECT ’ S P ROGRESS 15

A CTIVITY A NALYSIS FOR AON ActivityDescriptionEstimated Duration (Days) Predecessor AEvaluate current technology platform 2None BDefine user requirements5A CDesign Web page layouts4B DSet-up Server3B EEstimate Web traffic1B FTest Web pages and links4C,D GMove web pages to production environment 3D,E HWrite announcement of intranet for corp. newsletter 2F,G ITrain users5G JWrite report to management1H,I 16

A CTIVITY ON THE N ODE (AON) N ETWORK D IAGRAM 17

P OSSIBLE A CTIVITY P ATHS Possible PathsPathTotal Path 1A+B+C+F+H+J Path 2A+B+D+F+H+J Path 3A+B+D+G+H+J Path 4A+B+D+G+I+J19* Path 5A+B+E+G+I+J

C RITICAL P ATH Longest path Shortest time project can be completed Zero slack (or float) The amount of time an activity can be delayed before it delays the project Must be monitored and managed! Project manager can expedite or crash by adding resources Fast tracking – running activities in parallel which were originally planned as sequential The CP can change & Can have multiple CPs 19

PERT Program Evaluation and Review Technique Developed in 1950s to help manage the Polaris Submarine Project Developed about the same time as the Critical Path Method Often combined as PERT/CPM Employs both a project network diagram with a statistical distribution 20

A CTIVITY A NALYSIS FOR PERT ActivityPredecessorOptimistic Estimates (Days) Most Likely Estimates (Days) Pessimisti c Estimates (Days) Expected Duration (a+4b+c) 6 ANone BA CB DB EB FC,D GD,E HF,G IG JH,I

Possible PathsPathTotal Path 1A+B+C+F+H+J Path 2A+B+D+F+H+J Path 3A+B+D+G+H+J Path 4A+B+D+G+I+J20.5* Path 5A+B+E+G+I+J P OSSIBLE PERT A CTIVITY P ATHS 22

P RECEDENCE D IAGRAMMING M ETHOD - PDM Based on 4 fundamental relationships Finish-To-Start (FS) Start-To-Start (SS) Finish-To-Finish (FF) Start-To-Finish (SF) 23

PDM R ELATIONSHIPS 24

L EAD AND L AG TIMES Lead is starting the next task before the first task is complete Example: Begin installing the operating systems when half of the PCs are set up Lag (or negative lead) is the adding of a buffer of time before the next task begins Example: Once the walls have been painted, wait one day before laying the carpet so that the walls have had a chance to dry 25

D EVELOPING THE P ROJECT B UDGET 1. Define what resources will be needed to perform the work 2. Determine the quantity of resources that are needed 3. Define the cost of using each resource 4. Calculate the cost of the task or activity 5. Ensure that the resources are leveled, that is, resources have not been over allocated assigned to more than one task scheduled at the same time 26

P ROJECT M ANAGEMENT S OFTWARE T OOLS A number of project management software tools are available to plan and track the progress of your project However, having a fundamental understanding of these project management techniques is important to make the most of these software tools 27

MS P ROJECT ®

M ICROSOFT P ROJECT 2003 G ANTT C HART V IEW Figure

O THER C OSTS Direct Costs The direct cost of labor or other resources Indirect Costs The cost for covering such things as rent, utilities, insurance, etc. Sunk Costs Costs incurred prior to the project such as a project that has been restarted after a failed attempt Learning Curve Often have to “Build one and throw it away” to understand a problem or a new technology Prorated Costs The idea that there is a cost associated with using a resource Reserves Contingency funds to be used at the discretion of the project manager 30

F INALIZING THE P ROJECT S CHEDULE AND B UDGET The project schedule and budget may require several iterations before it is acceptable to the sponsor, the project manager, and the project team Once the project schedule and project plan are accepted, the project plan becomes the baseline plan. Once accepted, the project manager and project team have the authority to execute or carry out the plan. 31