Planning in management

ADVANCEDTOPICS IN
PLANNING AND
SCHEDULING
Chapter 11
Copyright ©2016 Pearson Education, Inc.

CHAPTER 11
LEARNING OBJECTIVES
After completing this chapter, you should be able to:
1. Understand why Agile Project Management was developed
and its advantages in planning for certain types of projects.
2. Recognize the critical steps in the Agile process as well as it
drawbacks.
3. Understand the key features of the Extreme Programming
(XP) planning process for software projects.
4. Distinguish between critical path and critical chain project
scheduling techniques.
5. Understand how critical chain methodology resolves project
resource conflicts.
6. Apply critical chain project management to project portfolios.
Copyright ©2016 Pearson Education, Inc. 11-2

PMBOK CORE CONCEPTS
Project Management Body of Knowledge (PMBoK) covered
in this chapter includes:
1. Rolling Wave Planning Method Sequence Activities
(PMBoK 6.2.2.2)
2. Sequence Activities (PMBoK 6.3)
3. Estimate Activity Resources (PMBoK 6.4)
4. Estimate Activity Durations (PMBoK 6.5)

PMBOK CORE CONCEPTS
Project Management Body of Knowledge (PMB0K) covered
in this chapter includes:
5. Develop Schedule (PMBoK 6.6)
6. Develop Schedule (tools and techniques) (PMBoK 6.6.2)
7. Critical Chain Method (PMBoK 6.6.2.3)
8. Resource Optimization (PMBoK 6.6.2.4)

COMMON REASONS NEW
PROJECTS MISS DELIVERY DATES
Based on Kickstarter projects, the most common reasons that new
projects do not meet their delivery dates include:
1. Manufacturing obstacles
2. Shipping
3.Volume
4. Apple’s “curve ball”
5. Changing scope
6. Certifications
7. Kickstarter’s infrastructure
8. Overseas logistics
11-5

CRITICAL CHAIN PROJECT
MANAGEMENT (CCPM)
 Developed by Dr. Eli Goldratt in mid-1990s
 Alternative scheduling mechanism to speed up project delivery
 Make better use of project resources
 More efficiently allocate and discipline the process of
implementing projects
 Based on theory of constraints (TOC)
 Represents both cultural shift and change in scheduling processes
 Applies technical and behavioral elements of project
management
11-6

AGILE PROJECT MANAGEMENT
 Planning the work and then working the plan
 Customer needs may evolve and change over course of project
 Importance of evolving customer needs leads to incremental,
iterative planning process
11-7
Agile Project Management (Agile PM) reflects a new era in
project planning that places a premium on flexibility and
evolving customer requirements throughout the development
process.

WATERFALL MODEL FOR PROJECT
DEVELOPMENT
(FIGURE 11.1)
11-8

WATERFALL MODEL
Waterfall project development process works well when:
 Requirements are very well understood and fixed at the
outset of the project.
 Product definition is stable and not subject to changes.
 Technology is understood.
 Ample resources with required expertise are available
freely.
 The project is of short duration.
11-9

UNIQUE FEATURE OF AGILE PM
 Agile PM, referred to as Scrum, recognizes mistakes of
assuming once initial project conceptualization and planning are
completed, project will be executed to original specifications.
 Example, software projects are prone to constant changes.
 Flexible, iterative system designed for the challenge of
managing projects in midst of change and uncertainty
 “Rolling wave” process of continuous plan-execute-evaluate
cycle
 Emphasis on adaptation, flexibility, and coordinated efforts of
multiple disciplines
11-10

SCRUM PROCESS FOR PRODUCT
DEVELOPMENT
(FIGURE 11.2)
11-11

KEYTERMS IN AGILE PM
 Sprint – one iteration of the Agile planning and executing cycle.
 Scrum – the development strategy agreed to by all key
members of the project.
 Time-box – the length of any particular sprint, fixed in advance,
during the Scrum meeting.
 User stories – short explanation of the end user that captures
what they do or what they need from the project under
development
 Scrum Master – person on the project team responsible for
moving the project forward between iterations, removing
impediments, or resolving differences of opinions between
major stakeholders.
 .
11-12

KEYTERMS IN AGILE PM
 Sprint backlog – the set of product backlog items selected for
the Sprint, plus a plan for delivering the Sprint Goal.
 Burndown chart – remaining work in the Sprint backlog.
 Product owner – person representing the stakeholders and
serving as the “voice of the customer.”
 Development team – organizational unit responsible for
delivering the product at the end of the iteration (Sprint).
 Product backlog – a prioritized list of everything that might be
needed in completed product and source of requirements for any
changes.
 Work backlog – evolving, prioritized queue of business and
technical functionality that needs to be developed into a system.
11-13

STEPS IN AGILE
1. Sprint Planning
2. Daily Scrums
3. DevelopmentWork
4. Sprint Review
5. Sprint Retrospective
11-14

STAGES IN A SPRINT
(FIGURE 11.4)
11-15

PROBLEMS WITH AGILE
1. Active user involvement and close collaboration of the Scrum team are
critical throughout the development cycle.
2. Evolving requirements can lead to potential for scope creep.
3. It is harder to predict at beginning of project what the end product will
actually resemble.
4. Agile requirements are kept to minimum, which can lead to confusion
about the final outcomes.
5. Testing is integrated throughout lifecycle, which can add cost to
project.
6. Frequent delivery of project features puts a burden on product owners.
7. If it is misapplied to traditional projects, it can be an expensive approach
without delivering benefits.
11-16

EXTREME PROGRAMMING (XP)
 A more aggressive form of Scrum; a software development
methodology intended to improve software quality and
responsiveness to changing customer requirements.
 Two guiding features of XP:
 Refactoring
 Pair programming
 Advantage of XP is whole process is visible and accountable.
 Agile PM and XP have grown out of need to combine the
discipline of project management methodology with the needs
of modern enterprise to respond quickly.
11-17

THEORY OF CONSTRAINTS &
CRITICAL CHAIN PROJECT SCHEDULING
A constraint limits any system’s output.
The Goal – Goldratt
TOC Methodology
1. Identify the constraint.
2. Exploit the constraint.
3. Subordinate the system constraint.
4. Elevate the constraint.
5. Repeat the process.
11-18

FIVE KEY STEPS INTHEORY OF
CONSTRAINTS METHODOLOGY
(FIGURE 11.6)
11-19

CRITICAL CHAIN SOLUTIONS
Central LimitTheorem
Activity durations estimated at 50% level
Buffer reapplied at project level
 Goldratt rule of thumb (50%)
 Newbold formula
Feeder buffers for non-critical paths

REDUCTION IN PROJECT
DURATION AFTER AGGREGATION
(FIGURE 11.7)
11-21

DEVELOPING CRITICAL CHAIN
ACTIVITY NETWORK
 Resource leveling is not required because resources are
leveled within the project in the process of identifying the
critical chain.
 CCPM advocates putting off all noncritical activities as late
as possible, while providing each noncritical path in the
network with its own buffer.
 Noncritical buffers are referred to as feeder buffers.
 Feeding buffer duration is calculated similarly to the
process used to create the overall project buffer.
11-22

CCPM EMPLOYING FEEDER
BUFFER
(FIGURE 11.8)
11-23

CHANGES IN CRITICAL CHANGE
EXAMPLE
(FIGURES 11.10A, 11.10B, 11.10C)
11-24

CRITICAL PATH NETWORKWITH
RESOURCE CONSTRAINTS
(FIGURE 11.10A)
11-25

CRITICAL CHAIN SOLUTION
(FIGURE 11.10B)
11-26

CRITICAL CHAIN PROJECT
PORTFOLIO MANAGEMENT
 Capacity constraint buffer (CCP) refers to a safety
margin separating different projects scheduled to
use the same resource.
 Drum buffers are extra safety applied to a project
immediately before the use of the constrained
resource to ensure that the resource will not be
starved for work.
11-27

STEPSTO APPLY CCPMTO
MULTIPLE PROJECT PORTFOLIO
1. Identify company resource constraints or drum.
2. Exploit resource constraints.
3. Subordinate individual project schedules.
4. Elevate the capacity of the constraint resource.
5. Go back to step 2 and reiterate the sequence.
11-28

THREE PROJECTS STACKED FOR
ACCESSTO A DRUM RESOURCE
(FIGURE 11.15)
11-29

APPLYING CCBTO DRUM
SCHEDULES
(FIGURE 11.16)
11-30

CCPM CRITIQUES
1. No milestones used
2. Not significantly different from PERT
3. Unproven at the portfolio level
4. Anecdotal support only
5. Incomplete solution
6. Overestimation of activity duration padding
7. Cultural changes unattainable
11-31

SUMMARY
1. Understand why Agile Project Management was developed
and its advantages in planning for certain types of projects.
2. Recognize the critical steps in the Agile process as well as it
drawbacks.
3. Understand the key features of the Extreme Programming
(XP) planning process for software projects.
4. Distinguish between critical path and critical chain project
scheduling techniques.
5. Understand how critical chain methodology resolves project
resource conflicts.
6. Apply critical chain project management to project portfolios.

Copyright ©2016 Pearson Education, Inc. 34
Tutorial Question 1:
Why is cost estimation such an important component of project
planning? Discuss how it links together with theWork Breakdown
Structure and the project schedule?
Tutorial Question 2:
If you were the project manager, what characteristics would you
be looking for in the new control system?

Tutorial 1:
Cost estimation, if done correctly, enables a firm to determine if
the project will be profitable, if the company can afford the
project, and if the project is worth pursuing in general. It also
provides the company with a cost range for bidding (in the case of
a customer-oriented project).With respect toWork Breakdown
Structure and project schedule, cost estimation is important
because it leads to budgeting of monetary and other resources
(both material and human).These allocations must coordinate
with the Work Breakdown Structure and project schedules
prepared by management to figure out if the required resources
will be available as needed.

Tutorial 2:
As there was an excessive number of engineering design changes,
flexibility is needed for the new control system to coup with these
changes.
Cost effectiveness is crucial to keep the total project cost low, as
the owner of NightTran Company is already concerned about
potential loss, dumping a huge budget in developing and
employing a new control system will not be a great choice.
the penalty for additional months of construction.

Tutorial 2:
Next, accuracy and usefulness is needed to prevent encountering
more continuing problems and result in high work rejection rate,
as it can be caused by inaccurate predictions.
Simple and easy to maintain are important as the project was
generally under staffed, which meant there will be limited
workers to work on the new control system, hence a simple and
easy to maintain control system enables limited workers to get
familiar with operation of the system in a short period of time,
and easiness to maintain ensure that project will only need to
spare a limited amount of workers to maintain the new control
system, without burdening the project due to understaffed issue.
Lastly, the characteristics of timely will help the project to
proceed smoothly and more efficiently as to prevent the penalty
for additional months of construction.

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