PMP Time Management

You will learn in this Chapter
What is schedule and Schedule baseline?
To derive activity list from WBS.
What is network diagram? What is critical path and CPM?
Difference between CCM and CPM?
What is PDM? (precedence diagramming method)
What is slack(float)?
Three point estimating.
When to use Monte carlo analysis simulation?
Milestones, resource optimization, leads and lags, RBS.
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Schedule
Scheduling
method
(CPM)
Scheduling
tool (gannt,
software)
Schedule
model
+
Project
information
(WBS, activity
durations)

6.1. Plan Schedule Management
•4.1. PM. Plan
•(Scope baseline)
•4.2.Pro. Charter
•Ent. Env. Factors
•Org. Process assets
Inputs
•Expert judgement
•Meetings
•Analytical
Tecniques
Tools •Schedule
Management
Plan
Outputs

Schedule Management Plan
Project schedule model development. The scheduling
methodology and the scheduling tool
Level of accuracy. The acceptable range used in
determining realistic activity duration estimates
Units of measure. Each unit used in measurements (such as
staff hours, staff days, or weeks for time measures, or meters,
liters, tons, kilometers, or cubic yards for quantity measures
Organizational procedures links. The WBS (Section 5.4)
provides the framework for the schedule management
plan, allowing for consistency

Schedule Management Plan
Rules of performance measurement. Earned value
management (EVM) rules. For example, the schedule
management plan may specify:
Rules for establishing percent complete,
Control accounts at which management of progress and schedule will
be measured,
Earned value measurement techniques (e.g., baselines, fixed-formula,
percent complete, etc.)
Schedule performance measurements such as schedule variance (SV)
and schedule performance index (SPI) used to assess the magnitude of
variation to the original schedule baseline.
Reporting formats. The formats and frequency for the various
schedule reports
Process descriptions

6.2. Define Activities
•6.1.Schedule
M.Plan
•5.4.Scope
baseline
•Ent. Env.Factors
•Or.Pro. Assets
Inputs
•Decomposition
•Rolling wave
planning
• Expert Judgment
Tools
•Activity list
• Activity
Attributes
•Milestone List
Outputs

Decomposition
Each work package within the WBS is decomposed into
the activities required to produce the work package
deliverables.
Decomposition is a technique used for dividing and
subdividing the project scope and project deliverables
into smaller, more manageable parts.
Activities represent the effort needed to complete a work
package.

Activity List
The activity list is a comprehensive list that includes all
schedule activities required on the project.
The activity list also includes the activity identifier and a
scope of work description for each activity in sufficient
detail to ensure that project team members understand
what work is required to be completed.
Each activity should have a unique title that describes its
place in the schedule, even if that activity title is
displayed outside the context of the project schedule.

Milestone List
A milestone is a significant point or event in a project.
A milestone list is a list identifying all project milestones
and indicates whether the milestone is mandatory, such
as those required by contract, or optional, such as those
based upon historical information.
Milestones are similar to regular schedule activities, with
the same structure and attributes, but they have zero
duration because milestones represent a moment in
time.

Sequence Activities
You create Network Diagram, by sequencing the
activities you defined in the previous step.
In this part you also show the dependencies among
activities, for instance if one activity cannot start before
other has finished.

Network Diagramming Methods
PDM (AON)
• Precendence
Diagramming
method
• Activity on
node
ADM
• Arrow
diagramming
Method
GERT
• Graphical
evaluation
and Review
TechniqueThis document is a partial preview. Full document download can be found on Flevy:

Dependency Determination
•Mandatory dependencies are those that are legally or
contractually required in the nature of the work.
Mandatory
dependencies
•Discretionary dependencies are sometimes referred to as
preferred logic, preferential logic, or soft logic.
Discretionary
dependencies
•External dependencies involve a relationship between
project activities and non-project activities. These
dependencies are usually outside the project control.
External
dependencies
•Internal dependencies involve a precedence relationship
between project activities and are generally inside the
project team’s control.
Internal
dependencies

Leads and Lags
Lag is the amount of time whereby a successor activity will
be delayed with respect to a predecessor activity.
Waiting time when activity does not start even after its predecessor
was completed.
For example, a technical writing team may begin editing the
draft of a large document 15 days after they begin writing it.

Network Diagram
After defining all dependencies, network diagram is
created. It shows dependencies, activity durations and
critical path.

Estimate Activity Resources
Resources means people, materials, equipment etc.
PM should do that in planning because PM should
prevent resource problems in the course of the project
Create RBS (Resource breakdown structure), that
demonstrates how resources will be used and classify
them.
This part is related with HRM management as well.

6.4 Estimate Activity Resources
Review risk register, Schedule Man. Plan and Activity cost
estimates, Org. Process assets and Ent. Env. Factors
Identify your resource needs
Decompose activity if resource estimation is difficult
Identify potential resources with HRM
Identify if resources does not exist in organization (if
outsourcing or hiring needed)
Assign or lead sponsor to assign resources to the project
Create RBS

Resource Breakdown Structure
The resource breakdown structure is a hierarchical
representation of resources by category and type.
Examples of resource categories include labor, material,
equipment, and supplies.
Resource types may include the skill level, grade level, or
other information as appropriate to the project.
The resource breakdown structure is useful for organizing
project schedule data with resource utilization
information.

Time Management
Plan Schedule Management
Define Activities
Sequence Activities
• process of estimating the number of work periods needed to complete individual
activities with estimated resources.
Estimate Activity Durations
Develop Schedule
Control Schedule

Padding vs. Time Estimating
This is not planning. This is padding.
I am sorry!!! Not allowed for PM’s to make
padding.
You should estimate activity and add
contingency reserves for identified risks
You lose reputation and no support for your
estimations if you make padding.

Estimation Methods – Time and Cost
One-Point
•One estimate per
activity
•Not reliable
Three-Point
•Optimistic,
pesimistic and
most likely 3
points are
estimated
•Risk register is
used
•Simple or
weighted
average is used
Analogous
•Expert
judgement and
historical
information is
used
•Previous similar
project estimate
•Basicly a
prediction
•Less costly less
accurate
Parametric
•Calculates with
data
•Uses historical
data
•Regression and
learning curve
afffect it
•E.g. 1 operator
build 20 brick, 40
operators 800
brick.

Parametric Estimating
Parametric estimating is an estimating technique in which
an algorithm is used to calculate cost or duration based on
historical data and project parameters.
Parametric estimating uses a statistical relationship between
historical data and other variables
Activity durations can be quantitatively determined by
multiplying the quantity of work to be performed by labor
hours per unit of work.
For example, if the assigned resource is capable of installing 25
meters of cable per hour, the duration required to install 1,000
meters is 40 hours. (1,000 meters divided by 25 meters per hour).
This technique can produce higher levels of accuracy
depending upon the sophistication and underlying data
built into the model.

Three Point Estimating
Depending on the assumed distribution of values within
the range of the three estimates the expected duration,
tE, can be calculated using a formula.
Two commonly used formulas are triangular and beta
distributions. The formulas are:
Triangular Distribution.
tE = (tO + tM + tP) / 3
Beta Distribution (from the traditional PERT technique).
tE = (tO + 4tM + tP) / 6

Reserve Analysis
Duration estimates may include contingency reserves,
sometimes referred to as time reserves or buffers, into the
project schedule to account for schedule uncertainty.
Contingency reserves are associated with the “known-
unknowns,” which may be estimated to account for this
unknown amount of rework. Contingency reserves are the
estimated duration within the schedule baseline,
Management reserves are intended to address the
“unknown-unknowns” that can affect a project and not
included in schedule baseline.
As more precise information about the project becomes
available, the contingency reserve may be used,
reduced, or eliminated

Time Management
Define Activities
Sequence Activities
Estimate activity Durations
Develop Schedule
Control Schedule

Develop Schedule
•Scope statement
•Schedule MP
•Activity List & attributes
•Network Diagram
•Activity Duration
Estimates
•Activity resource
Requirements (RBS)
•Resource Calendar
•Project staff
assignments
•Risk Register
Inputs
•Critical Path method
•Critical Chain
Method
•Resources optimization
techniques
•Modeling
•Leads, Lags
• Schedule compression
•Crashing
•Fast-tracking
•Monte Carlo Analysis
Develop
Schedule •Schedule
•Schedule baseline
•Schedule data
•Project calendars
•PMP updates
•Project docs updates
Outputs

Definitions for CPM
Near-critical Path
Closest duration to the critical path. It will be the second most
important set of activities
Float (Slack)
Total Float:
Total amount of time that an activity can be delayed
without delaying project end
Free Float:
Total amount of time an activity can be delayed without
delaying its successor activity
Project Float
The time for the project end can be delayed without
delaying program or portfolio.
Activities on CP have no float.
Float is asset for project. You can use this time to achieve best.

Exercise
Do Network diagram Exercise manually
Activity A starts immediately and EAD is 4 months
B starts only after A is finished and EAD is 6 months
C starts only after A is completed and EAD is 9 months
D starts only after B finished and EAD is 2 months
E starts after C finished and EAD is 7 months
F starts after E and D finished and duration 3 months
Draw network diagram, Find CP and floats of all activities.

Exercise
Activity Precedesor Estimate (days) Float
Starts
A Start 5
B A 9
C Start 12
D B 7
E D 2
F D 3
G C 10
H F 6
I E 8
End H, I, G

Resource Optimization
Resource Leveling
• Used If resource are limited
• Critical path might change and lengthens the schedule
• increases costs
• Levels peaks &valleys
• Used when you limit #of resources and lengthen the project
Resource Smoothing
• Modified form of leveling only for float of their activities
• Critical path does not change

Schedule Compression
Fast-Track
• Creating parallel activities
• Increases Risk or rework and
conflict
Crashing
• Transfer resources to critical
activities

Exercise – Schedule Compression
In previous example, Your sponsor asked you there had
been an unexpected situation and the customer will
need the deliverable 3 days prior to accepted delivery
date, and top management agreed upon new date
release in exchange of some payment. Therefore, you
have to save 3 days to complete project on time. What
would you do?
Hint: in parallel activities, share resources. In series activities
create parallel relation

Project Schedule
The output of Develop Schedule Process is Schedule
Can be represented in different ways
Network diagramming (early in this chapter you have seen)
Milestone charts (basic charts)
Only shows milestone activities and milestone points
Good for escalating or management reporting as it is brief and clear
Bar charts (Gantt, Pert charts)
It is not as helpful as WBS or network diagram
Dependencies are not shown clearly as network diagram
Drawn only after network diagram and not obligatory
It is good to track progress and detailed explanation to team in meetings
Please see the examples in MS project of milestone and gantt
chart, by selecting view timeline.

Refreshing Minds
Performance Baseline
Scope
Baseline
•WBS
•WBS Dict.
•Scope
Statement
Schedule
Baseline
•Schedule
Cost
Baseline
•Budget
Performance baseline is used to measure the performance.
You follow and control your progress comparing performance
baseline

Control Schedule
Measuring and comparing the progress with Schedule plan is
called control schedule
Main Control schedule tool is SPI ratio which you will see on next
chapter
Review work performance data and convert it to work
performance information
Perform performance review (Earned Value M.) and trend analysis
Take preventive and corrective action
Re-estimate the activity durations and time schedule on project
control at least once. Because, as risks are happened and project
progresses it.

Performance Reviews
Trend analysis
examines project performance over time to determine
whether performance is improving or deteriorating.
Critical Path & Chain method
EVM - Earned Value Management (we will learn soon)
SV and SPI is calculated and controlledThis document is a partial preview. Full document download can be found on Flevy:

Time Management
•Establish poilicies for develop, manage and control schedule
•Identify specific actions, break each work package into tasks
Define Activities
•Identify relationship among activities
Sequence Activities
•Resources for each activity is identified
•Identify how much time it will take to complete each activity
Estimate Activity Durations
•Analyze all constraints and create schedule
Develop Schedule
•Monitor the status of the project and make needed changes
Control Schedule

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