1. SW Project Management Project Schedule and Budget
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Glenn Booker
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2. Grand finale
Developing the project schedule and budget is the grand finale of the project planning process – our ultimate goal
We just defined the tasks and estimated their duration (effort)
Now identify the sequence of tasks, interdependencies, and staffing needs
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3. Project cost management
The budget is determined from the project schedule, the cost assigned to tasks, and other indirect costs or resources
Project cost management includes
Cost estimating for tasks and their resources
Cost budgeting for the whole project
Cost control – define processes
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4. Rolling up costs
Since our tasks were organized into phases and deliverables, we can roll up (summarize) costs to any level desired
Cost per deliverable
Cost per phase
Cost of the whole project
The sponsor needs to approve these costs
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5. Developing project schedule
A key sanity check is that each of the estimates for each task is really reasonable according to the experts in that activity
GIGO applies here, not just to programming!
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6. Project schedule tools
Tools to show a project schedule include
Gantt chart
Project network diagram
Activity On the Node (AON) diagram
Critical path analysis
PERT charts
Precedence diagramming method (PDM)
Critical chain project management (CCPM)
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7. Gantt chart
The Gantt chart is probably the most widely used project management tool
Time is the X axis, from days to years
The current date is readily visible
Tasks are on the Y axis
Bars represent WBS tasks
Milestones are diamond shapes
An inset bar can show actual work progress
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8. Basic Gantt chart
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9. Project network diagram
Project network diagrams are also based on the WBS, but also show more info on task sequence or dependencies
Many also show when tasks must start or stop in order not to affect project completion date
This can help decide resource assignments needed for critical tasks
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10. Activity On the Node
Activity On the Node (AON) diagrams represent the flow of tasks needed to complete the project
Tasks are nodes (boxes)
Arrows show the order in which they occur
The duration of tasks isn’t directly visible under AON, only time order
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11. Activity On the Node
Tasks can be predecessors, successors, or in parallel
Predecessor tasks must occur before another task
Successor tasks must occur after another task
Parallel tasks may occur at the same time as another task
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12. Critical path analysis
Given an AON, critical path analysis determines which activities are directly connected to achieving the project schedule
They are the critical path, which can change
Analytically, find the duration of each path through the AON diagram
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13. Critical path analysis
The path with the longest duration is the critical path (and the project duration)
If any tasks on the critical path are delayed, the overall project completion will be delayed
Tasks not on the critical path may have a non-zero amount of slack or float, which is the amount of duration they can slip without affecting the project
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14. Critical path analysis
A manager might add resources to tasks on the critical path, if that will actually help finish them sooner
This technique can be called expediting or crashing the project
Fast tracking the project is done by making tasks parallel that weren’t
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15. PERT charts
PERT is the program evaluation and review technique, developed in the 50’s
Often seen with CPM, or critical path method
A PERT chart also uses the AON graphic notation, but uses a different approach for estimation
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16. Styles of PERT nodes
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17. PERT charts
For each task, estimate the lowest (optimistic), most likely, and highest (pessimistic) durations, then use
estimate = (low + high + 4*likely)/6
The critical path analysis can be done based on these estimates
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18. Precedence diagramming method
The precedence diagramming method (PDM) adds to AON by showing the key sequence relationships
Finish to start (most common, sequential)
Start to start
Finish to finish
Start to finish
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19. PDM node relationships
From Fig. 7.5
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20. PDM PDM can also show lead and lag times for activities
Lead time is an amount of time a task can start before the end of its predecessor
Lag time is the amount of time a task must start after the end of its predecessor
Hence lag time = negative lead time
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21. Critical chain project management
Critical chain project management (CCPM) is a newcomer (Goldratt, 1997)
It assumes that all estimates are inflated
We still finish projects late because
We wait until the last minute (student syndrome)
Projects fill the time available (Parkinson’s law)
Resource contention
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22. CCPM
CCPM takes that buffer from each task, and puts in in larger blocks where needed
How? Estimate tasks so that you only have a 50% chance of completing them on time
Then take half of the difference in task time, and put that into a buffer at the end of the project
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23. CCPM Yes, you have to estimate each task twice
Once normally, and once for 50% chance completion
CCPM also accounts for resource limits, by identifying the resources for each task and buffers for each type of resource
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24. PM software tools
There are several project management software tools for developing and managing schedules
Microsoft Project is the de facto standard
Planner and OpenWorkBench are open source tools
Ok, so Project doesn’t have much competition…
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25. PM software tools
Often projects are planned in detail only a few months in the future, a rolling wave approach
There’s an outline of the rest of the project, particularly for planning long lead time items
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26. Project budget
The budget is straightforward to develop, once the schedule has been determined
Determine the type of resource(s) needed for each task, and how many of them are needed for its duration (0.1, 2.5, whatever)
Find the cost of each resource type ($/hr), and multiply that by how many and the duration = cost per task
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27. Project budget
Check for overuse of resources – often not recommended to use 155% of a person’s time
To find the cost of each resource*, assess their typical annual salary**, divide by 2000 (hours per work year), and multiply by 2.5 (to account for overhead expenses)
* This is a heuristic. ** You could look for salary surveys.
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28. Project budget
So if a software engineer averages $60k/year, their hourly rate is about $30/hr
Actually, a normal work year is 40*52 = 2080 hours, but we’re just getting a rough estimate
Multiply by 2.5 to get a labor rate of $75/hr
This is the ‘true cost’ in the text
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29. Other costs
Labor is the biggest cost on most projects, but other costs should be considered
Indirect costs – are admin assistants, facilities, insurance, etc. paid by the project, or from overhead?
Sunk costs – from previous bad projects
Learning curve – might be covered by prototypes
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30. Other costs
Reserves – most projects keep back a 10-15% reserve from the total actual budget, in anticipation of some cost overruns
Project-specific hardware and software – plan for infrastructure costs (servers, network equipment, software) which aren’t part of normal office & facility environment
Travel, e.g. to the customer?
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31. Resource allocation
Again, make sure that individuals aren’t scheduled for over 100% of their time
Also consider resource leveling
Are there times when people are needed, then not, then needed again?
What will those people do in the middle?
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32. Baseline plan
Once all these issues have been identified and agreed upon, you have the baseline project schedule, which feeds the project plan
All measurements of ‘planned versus actuals’ hinge upon this plan!
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