1. Chapter 7 The Project Schedule and Budget Copyright 2012 John Wiley & Sons, Inc. 7-1

2. Precedence Diagramming Method - PDM Based on 4 fundamental relationships  Finish-To-Start (FS)  Start-To-Start (SS)  Finish-To-Finish (FF)  Start-To-Finish (SF) 7-2

3. If people build safety into their estimates, then … Why are projects still late? 7-3

4. Be Aware of Resource Loading Resource loading Over allocation 4

5. Resource Leveling 5

6. Benefits of Resource Leveling 6

7. Critical Chain Project Management (CCPM) Introduced in 1997 in a book called Critical Chain by Eliyahu Goldratt Based on his previous work called the Theory of Constraints CCPM is based on the idea that people often inflate or add cushioning to their estimates to create a form of “safety” to compensate for uncertainty or risk because …  Your work is dependent upon the work of someone else, and you believe that starting your work will be delayed  Your pessimism from previous experience where things did not go as planned  Your belief that the project sponsor or customer will cut your project schedule or budget so you inflate your estimates to guard against this cut 7-7

8. CCPM Assumptions Begins by asking each person or team working on a task to provide an estimate that would have a 50% chance of being completed as planned Instead of adding safety to each task, put that safety in the form of buffers where it is needed most 7-8

9. The Critical Chain Project Schedule 7-9

10. Critical Chain Project Management 7-10

11. Developing the Project Budget 1. 2. 3. 4. 5. 7-11

12. Types of Costs and Benefits

13. Other Costs 7-13

14. Planning Cost Management The project team uses expert judgment, analytical techniques, and meetings to develop the cost management plan A cost management plan includes:  Level of accuracy and units of measure  Organizational procedure links  Control thresholds  Rules of performance measurement  Reporting formats  Process descriptions

15. Determining the Budget Cost budgeting involves allocating the project cost estimate to individual work items over time The WBS is a required input to the cost budgeting process since it defines the work items Reserve analysis must occur

16. Figure 7-4. Surveyor Pro Project Cost Baseline

17. Project Management Software Tools 7-17

18. Finalizing the Project Schedule and Budget 7-18

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