Project Management

1,375 views

Published on

Part of a 1,000 slide set I have been collaborating on for an MBA concentration in Project Management. Content is by my wife, a PMP designated professional, while structure, flow, and overall design are of my doing.

Published in: Business, Technology
  • Be the first to comment

Project Management

  1. 1. Project Management Application and Concentration BUS XXX - 3 Units Fall 2012 Weekend 2 - Day 2Project Management Certification – A Professional Commitment – A Responsibility
  2. 2. Reflecting on Last Class • Foundations o What is a project? o What is Project Management? o Process Groups / Knowledge Areas / Processes o Project Lifecycle and its characteristics o Organizational Structure • Initiating o Project Charter – Why is it important; ITTO? o Identify Stakeholders – Why is this step important? ITTO? • Planning o Project Management Plan - Incorporates outputs from all other planning processes o Collect Requirements • Knowing the right questions • Knowing the right people • ITTO?Project Management Certification – A Professional Commitment – A Responsibility
  3. 3. Learning Objectives for Today • Scope o Recognize how to Define Scope, so we know what we are delivering o Explain what is involved in Creating a WBS for project deliverables • Time o Explain the processes leading up to Develop Schedule o Breakdown all tasks to determine what the team should work on o Determine the dependencies and what can be worked on concurrently o Determine what / who / how many to use by Estimating activity resources o Assess how long activities will take by Estimating activity durations o Compile analysis into a schedule to determine a “target date” • Cost o Estimate how much each activity will costs • labor, service, equipment, and other items o Aggregate all costs to determine funding requirements and determine if scope needs adjustment when budget is a constraintProject Management Certification – A Professional Commitment – A Responsibility
  4. 4. Weekend 2, Day 2 – Overview Process Groups Monitoring & Initiating Planning Executing Closing Controlling Knowledge Areas Develop Project Direct and Manage Monitor & Control Project Work, Close Project or Integration Charter Develop Project Management Plan Project Execution Perform Integrated Change Control PhaseF o u n d a t i o n s o f Pr o j e c t M a n a g e m e n t Collect Requirements, Verify Scope, Scope Define Scope, Control Scope Create WBS Define Activities, Sequence Activities, Time Estimate Activity Resources, Control Schedule Estimate Activity Durations, Develop Schedule Estimate Cost, Cost Determine Budget Control Cost Perform Quality Quality Plan Quality Assurance Perform Quality Control Acquire Project Team, Human Resource Develop Human Resources Plan Develop Project Team, Manage Project Team Distribute Information, Identify Communications Stakeholders Plan Communications Manage Stakeholder Report Performance Expectations Plan Risk Management, Identify Risks, Risk Perform Qualitative Risk Analysis, Monitor and Control Risks Perform Quantitative Risk Analysis, Plan Risk Responses Procurement Plan Procurements Conduct Procurements Administer Procurements Close Procurement Project Management Certification – A Professional Commitment – A Responsibility
  5. 5. Five Questions - Class ExerciseProject Management Certification – A Professional Commitment – A Responsibility
  6. 6. Define ScopeProject Management Certification – A Professional Commitment – A Responsibility
  7. 7. Define Scope - Overview • What is Project Scope? • Why is it important to Define Scope? o Make sure everyone is on the right page o Baseline for changes • Who says what is in and what is out? • What about open ended projects?Project Management Certification – A Professional Commitment – A Responsibility
  8. 8. Define Scope - PMBOK Process 5.2 Process Groups Monitoring & Initiating Planning Executing Closing Controlling Knowledge Areas Develop Project Direct and Manage Monitor & Control Project Work, Close Project or Integration Charter Develop Project Management Plan Project Execution Perform Integrated Change Control PhaseF o u n d a t i o n s o f Pr o j e c t M a n a g e m e n t Collect Requirements, Verify Scope, Scope Define Scope, Control Scope Create WBS Define Activities, Sequence Activities, Time Estimate Activity Resources, Control Schedule Estimate Activity Durations, Develop Schedule Estimate Cost, Cost Determine Budget Control Cost Perform Quality Quality Plan Quality Assurance Perform Quality Control Acquire Project Team, Human Resource Develop Human Resources Plan Develop Project Team, Manage Project Team Distribute Information, Identify Communications Stakeholders Plan Communications Manage Stakeholder Report Performance Expectations Plan Risk Management, Identify Risks, Risk Perform Qualitative Risk Analysis, Monitor and Control Risks Perform Quantitative Risk Analysis, Plan Risk Responses Procurement Plan Procurements Conduct Procurements Administer Procurements Close Procurement Project Management Certification – A Professional Commitment – A Responsibility
  9. 9. Define Scope - Project vs. Product Scope • Project Scope: measured against project management plan • Product Scope: measured against product requirementsProject Management Certification – A Professional Commitment – A Responsibility
  10. 10. Define Scope - Definition1 2 3 1 2 3 4 1 2 • The process of developing a detailed description of the project and the product • Defines what the project includes and excludes Project Management Certification – A Professional Commitment – A Responsibility
  11. 11. Define Scope - Inputs1 2 3 1) Project Charter o High-Level project description and requirements 2) Requirements Documentation o Primary document used for scope definition 3) Organizational Process Assets Examples: o Templates for a project scope statement o Files from previous projects o Lessons learned from previous projects Project Management Certification – A Professional Commitment – A Responsibility
  12. 12. Define Scope - Tools & Techniques 1 2 3 4 1) Expert Judgment 2) Product Analysis o Product breakdown, system analysis, requirement analysis, systems engineering, value engineering, and value analysis o Only for projects that have a product as a deliverable 3) Alternative Identification o A technique used to generate different approaches to execute the project o Brainstorming, Lateral Thinking, Pair wise comparison 4) Facilitated Workshops o Cross-functionalProject Management Certification – A Professional Commitment – A Responsibility
  13. 13. Define Scope - Outputs 1 2 1) Project Scope Statement o Describes, in detail, project deliverables and work required to create these deliverables o Helps to create a common understanding among stakeholders (avoid scope creep) o Project team can perform detailed planning now o Components • Product Scope Description • Product Acceptance Criteria • Project Objectives • Project Deliverables • Project Exclusions • Project Constraints • Project AssumptionsProject Management Certification – A Professional Commitment – A Responsibility
  14. 14. Define Scope - Moe’ Outputs 1 2 2) Project Document Updates o Stakeholder Register o Requirements documentation o Requirements Traceability Matrix o Etc.Project Management Certification – A Professional Commitment – A Responsibility
  15. 15. Define Scope - Top Reasons Why Projects Fail • Unclear Project Objectives and Requirements • Lack of Planning • Scope Creep • Lack of Stakeholder Involvement • Gaps in Communication • Resource Overload • Etc.Project Management Certification – A Professional Commitment – A Responsibility
  16. 16. Define Scope - Data Flow DiagramProject Management Certification – A Professional Commitment – A Responsibility
  17. 17. Define Scope - Key Points • Scope definition is a joint effort between Project Manager , Project team, and business stakeholders (though the Project Manager may be the one writing the Scope Statement) • Scope Statement sets clear expectation and establish the basis for future change requests • Define Scope is a progressively elaborated process; may be adjusted as more details become known • A good idea to have Scope Statement approved and published • Scope Statement will later be used to measured against to determine if the project has been completed successfullyProject Management Certification – A Professional Commitment – A Responsibility
  18. 18. Define Scope - Key Points • Project constraints limit the options and restrict project team’s actions: Time, Budget, Scope, Quality, Schedule, Resource, Technology, Management Directives • Poorly written Scope Statement may lead to increased cost, longer duration, deliverables that do not meet business expectation, and ultimately unsatisfied stakeholders. • Meeting or exceeding stakeholder expectation doesn’t mean gold-platingProject Management Certification – A Professional Commitment – A Responsibility
  19. 19. Create WorkBreakdown StructureProject Management Certification – A Professional Commitment – A Responsibility
  20. 20. Create Work Breakdown Structure - Overview • What is the purpose? o More manageable components • Key is to break it down o Should include entire project scope • Multiple approaches o By Project Phases o By Deliverables o By Sub-projectsProject Management Certification – A Professional Commitment – A Responsibility
  21. 21. Create Work Breakdown Structure - PMBOK Process 5.3 Process Groups Monitoring & Initiating Planning Executing Closing Controlling Knowledge Areas Develop Project Direct and Manage Monitor & Control Project Work, Close Project or Integration Charter Develop Project Management Plan Project Execution Perform Integrated Change Control PhaseF o u n d a t i o n s o f Pr o j e c t M a n a g e m e n t Collect Requirements, Verify Scope, Scope Define Scope, Control Scope Create WBS Define Activities, Sequence Activities, Time Estimate Activity Resources, Control Schedule Estimate Activity Durations, Develop Schedule Estimate Cost, Cost Determine Budget Control Cost Perform Quality Quality Plan Quality Assurance Perform Quality Control Acquire Project Team, Human Resource Develop Human Resources Plan Develop Project Team, Manage Project Team Distribute Information, Identify Communications Stakeholders Plan Communications Manage Stakeholder Report Performance Expectations Plan Risk Management, Identify Risks, Risk Perform Qualitative Risk Analysis, Monitor and Control Risks Perform Quantitative Risk Analysis, Plan Risk Responses Procurement Plan Procurements Conduct Procurements Administer Procurements Close Procurement Project Management Certification – A Professional Commitment – A Responsibility
  22. 22. Create Work Breakdown Structure - Definition • Definition: Deliverable – oriented hierarchical decomposition of the work to accomplish the project objectives and create required deliverables • Includes total scope of the project • Top down effort • Lowest Level = Work package, which can be scheduled, cost estimated, monitored, and controlled • Shall be revised if a major scope change occursProject Management Certification – A Professional Commitment – A Responsibility
  23. 23. Create Work Breakdown Structure - Definition1 2 3 1 1 2 3 4 Project Management Certification – A Professional Commitment – A Responsibility
  24. 24. Create Work Breakdown Structure - Inputs1 2 3 1) Project Scope Statement o All the deliverables and work to create them o What type of work is not included 2) Requirements Documentation 3) Organization Process Assets o Policies, procedures, and templates for the WBS o Project files from previous projects o Lessons learned from previous projects Project Management Certification – A Professional Commitment – A Responsibility
  25. 25. Create Work Breakdown Structure - Tools & Techniques 1 1) Decomposition – Sample 5-step process a) Identify the deliverables and work b) Organize the WBS; structure can be organized by - Phases - Major deliverables - Subprojects (e.g. contracted work) c) Decompose the WBS into low-level components d) Assign identification codes e) Verify WBSProject Management Certification – A Professional Commitment – A Responsibility
  26. 26. Create Work Breakdown Structure - Decomposition Guidelines 1 • Not a task list; excessive decomposition can have a detrimental effect by making WBS overly complex, confusing to view, and difficult to maintain • Rule of thumb for how far to break it down is to get to 8-80 hours of work per package • 100% Rule: Total of lowest levels must represents the total work of the project to ensure no work is left out or no extra work is addedProject Management Certification – A Professional Commitment – A Responsibility
  27. 27. Create Work Breakdown Structure - Outputs 1 2 3 4 1) The Work Breakdown Structure (WBS) itself • WBS is finalized by establishing control accounts for the work packages and a unique identifier from a code of accounts • Control Account - a management control point where scope, cost, and schedule are integrated and compared to the earned value • Each control account may have more than one work package but one work package shall only be linked to one control accountProject Management Certification – A Professional Commitment – A Responsibility
  28. 28. Create Work Breakdown Structure - Outputs 1 2 3 4 2) WBS Dictionary o Code of account identifier o Description of work o Responsible person(s) or organization o List of schedule milestones o Resource and quality requirements o Cost estimates o Acceptance criteria o Contract info and technical references 3) Scope Baseline o Part of Project Management Plan o Consists of • Scope Statement • WBS • WBS Dictionary 4) Project Document Updates o Requirements documentation, etc.Project Management Certification – A Professional Commitment – A Responsibility
  29. 29. Create Work Breakdown Structure - Sample DiagramProject Management Certification – A Professional Commitment – A Responsibility
  30. 30. Create Work Breakdown Structure - by Project PhasesProject Management Certification – A Professional Commitment – A Responsibility
  31. 31. Create Work Breakdown Structure - by Major DeliverablesProject Management Certification – A Professional Commitment – A Responsibility
  32. 32. Create Work Breakdown Structure - Data FlowsProject Management Certification – A Professional Commitment – A Responsibility
  33. 33. Create Work Breakdown Structure - Key Points • WBS is a deliverable-oriented structure • Work Package is the lowest level on WBS. Activities and tasks are not included in the WBS. • WBS should include 100% of the project scope • WBS Levels: Project Name = Level 1, Deliverables = Level 2 • Scope Baseline includes Scope Statement, WBS, and WBS DictionaryProject Management Certification – A Professional Commitment – A Responsibility
  34. 34. Define ActivitiesProject Management Certification – A Professional Commitment – A Responsibility
  35. 35. Define Activities - Overview • What’s the Purpose? o Further decompose the Work Packages into schedule activities as basis for estimating, scheduling, and monitoring o Working towards creating a project schedule • In what order should it be done – next steps o Define Activity o Sequence Activity o Estimate Activity Resource o Estimate Activity Duration o Develop ScheduleProject Management Certification – A Professional Commitment – A Responsibility
  36. 36. Define Activities - PMBOK Process 6.1 Process Groups Monitoring & Initiating Planning Executing Closing Controlling Knowledge Areas Develop Project Direct and Manage Monitor & Control Project Work, Close Project or Integration Charter Develop Project Management Plan Project Execution Perform Integrated Change Control PhaseF o u n d a t i o n s o f Pr o j e c t M a n a g e m e n t Collect Requirements, Verify Scope, Scope Define Scope, Control Scope Create WBS Define Activities, Activities Sequence Activities, Time Estimate Activity Resources, Control Schedule Estimate Activity Durations, Develop Schedule Estimate Cost, Cost Determine Budget Control Cost Perform Quality Quality Plan Quality Assurance Perform Quality Control Acquire Project Team, Human Resource Develop Human Resources Plan Develop Project Team, Manage Project Team Distribute Information, Identify Communications Stakeholders Plan Communications Manage Stakeholder Report Performance Expectations Plan Risk Management, Identify Risks, Risk Perform Qualitative Risk Analysis, Monitor and Control Risks Perform Quantitative Risk Analysis, Plan Risk Responses Procurement Plan Procurements Conduct Procurements Administer Procurements Close Procurement Project Management Certification – A Professional Commitment – A Responsibility
  37. 37. Define Activities - Definition1 2 3 1 2 3 4 1 2 3 • The process of identifying the specific actions to be performed • Project  Deliverables  Work Packages (WBS) Activities Project Management Certification – A Professional Commitment – A Responsibility
  38. 38. Define Activities - Inputs1 2 3 1) Scope Baseline o Deliverables, constraints, and assumptions 2) Enterprise Environmental Factors o Project Management Information System used will affect the definition 3) Organizational Process Assets o Existing formal and informal policies, procedures, and guidelines (e.g. Scheduling methodology) o Lessons learned/knowledge base from historical information Project Management Certification – A Professional Commitment – A Responsibility
  39. 39. Define Activities - Tools & Techniques 1 2 3 4 1) Decomposition o Involving teams in decomposition can lead to more accurate results 2) Rolling Wave Planning o A progressive elaboration process where near-term activities are in great detail and longer-term activities are at a high level 3) Templates o Organizational standard Activity List or Activity List from previous projects o Can also be used to identify typical schedule milestones 4) Expert JudgmentProject Management Certification – A Professional Commitment – A Responsibility
  40. 40. Define Activities - Outputs 1 2 3 1) Activity List (or Task List) o Detailed list of all activities required to complete the project 2) Activity Attributes o Further defines the activity, such as Activity ID, WBS ID, activity name and description, predecessor, successor, leads and lags, person responsible, resource requirements, constraints, assumptions, level of effort, etc. o Activity attributes are used for schedule development and for selecting, ordering, and sorting the planned schedule activities in various ways within reports 3) Milestone List o A list of significant points in a projectProject Management Certification – A Professional Commitment – A Responsibility
  41. 41. Create Work Breakdown Structure - Sample Milestone List August September October Activity Aug 13 - 17 Aug 20 - 24 Aug 27 - 31 Sep 3 - 7 Sep 10 - 14 Sep 17 - 21 Sep 24 - 28 Oct 1 - 5 Oct 8 - 12 Offer Code Setup and BOM 8/24 Forecast Mix 8/24 Packaging Design/Approval Packaging Arrived at FFC 9/10 Collateral Arrived at FFC 9/10 Assembly Specs 8/31 Call Routing and Training 9/14 IBTM and Testing Setup 9/14 Web Creative 9/5 Web Development 9/12 Web Dependency Project 9/12 Complete Web QA Ready 9/14 Web Brand Setup Web End to End Testing 9/20 Merchant ID Setup 9/5 9/10 FFC Brand Setup Planning Release 9/10 Filled Intermediate Arrived at FFC 9/21 Kit Assembly 9/7 QA Audit and Compliance QA Quality Agreement 9/14 Launch 9/24Project Management Certification – A Professional Commitment – A Responsibility
  42. 42. Define Activities - Data FlowsProject Management Certification – A Professional Commitment – A Responsibility
  43. 43. Define Activities - Key Points • Define Activity process uses Scope Baseline as the primary input • WBS is further decomposed • Activity Lists, Activity Attributes and Milestone Lists are the outputs • May be progressive elaboration process • Rolling Wave Planning = define near-term work in greater detail than future workProject Management Certification – A Professional Commitment – A Responsibility
  44. 44. Sequence ActivitiesProject Management Certification – A Professional Commitment – A Responsibility
  45. 45. Sequence Activities - Overview • Determine logical dependencies • Determine what can be done concurrentlyProject Management Certification – A Professional Commitment – A Responsibility
  46. 46. Sequence Activities - PMBOK Process 6.2 Process Groups Monitoring & Initiating Planning Executing Closing Controlling Knowledge Areas Develop Project Direct and Manage Monitor & Control Project Work, Close Project or Integration Charter Develop Project Management Plan Project Execution Perform Integrated Change Control PhaseF o u n d a t i o n s o f Pr o j e c t M a n a g e m e n t Collect Requirements, Verify Scope, Scope Define Scope, Control Scope Create WBS Define Activities, Sequence Activities, Time Estimate Activity Resources, Control Schedule Estimate Activity Durations, Develop Schedule Estimate Cost, Cost Determine Budget Control Cost Perform Quality Quality Plan Quality Assurance Perform Quality Control Acquire Project Team, Human Resource Develop Human Resources Plan Develop Project Team, Manage Project Team Distribute Information, Identify Communications Stakeholders Plan Communications Manage Stakeholder Report Performance Expectations Plan Risk Management, Identify Risks, Risk Perform Qualitative Risk Analysis, Monitor and Control Risks Perform Quantitative Risk Analysis, Plan Risk Responses Procurement Plan Procurements Conduct Procurements Administer Procurements Close Procurement Project Management Certification – A Professional Commitment – A Responsibility
  47. 47. Sequence Activities - Definition1 2 3 4 5 1 2 3 4 1 2 • Process of identifying and documenting relationships among project activities Project Management Certification – A Professional Commitment – A Responsibility
  48. 48. Sequence Activities - Inputs1 2 3 4 5 1) Activity List 2) Activity Attributes 3) Milestone List 4) Project Scope Statement o As double-check 5) Organizational Process Assets o Example: Previous Project File Project Management Certification – A Professional Commitment – A Responsibility
  49. 49. Sequence Activities - Tools & Techniques 1 2 3 4 1) Precedence Diagramming Method (PDM) o A method used in Critical Path Methodology (CPM) to build a network diagram showing activity dependencies o Also known as activity on node (AON) • FYI - Arrow Diagramming Method (ADM) o A.K.A. Activity on Arrow (AOA) Network Diagram o Activities are represented by arrows; Nodes or circles are the starting and ending points of activities. o Only use Finish to Start dependency o Sometimes dummy activities must be inserted to accurately reflect dependency o Rarely used nowProject Management Certification – A Professional Commitment – A Responsibility
  50. 50. Sequence Activities - Tools & Techniques 1 2 3 4 • Four types of PDM relationships o Finish-to-start (FS): A must finish before B can start; sequential, most common o Finish-to-finish (FF): A must finish before B can finish o Start-to-start (SS): A must start before B can start o Start-to-finish (SF): A must start before B can finish; rarely usedProject Management Certification – A Professional Commitment – A Responsibility
  51. 51. Sequence Activities - Tools & Techniques 1 2 3 4 2) Dependency Determination o Mandatory (hard): Contractually required, physical limitations, etc. o Discretionary (soft): Preferred logic; only type PM has control over o External: outside the project team’s controlProject Management Certification – A Professional Commitment – A Responsibility
  52. 52. Sequence Activities - Tools & Techniques 1 2 3 4 3a) Lead o Starting work before the preceding activity finishes o allows acceleration of the schedule (fast-track) • ex 1: Start loading moving truck one day before packing finishes • Although possible to use lead with SS, difficult to understandProject Management Certification – A Professional Commitment – A Responsibility
  53. 53. Sequence Activities - Tools & Techniques 1 2 3 4 3b) Lag: Delay o Example 1. Start honeymoon one day after the ceremony; wait one day for concrete to gain strength before putting on patio furniture o Example 2. QA team can start testing two days after Dev team starts dev o Leads and Lags can be applied to all four types of PDM relationships, although Leads are not common with SS, FF, and SF 4) Schedule Network TemplatesProject Management Certification – A Professional Commitment – A Responsibility
  54. 54. Sequence Activities - Outputs 1 2 1) Schedule Network Diagram A C D B 2) Project Document Updates may include o Activity List o Activity Attributes o Risk RegisterProject Management Certification – A Professional Commitment – A Responsibility
  55. 55. Sequence Activities - Data FlowsProject Management Certification – A Professional Commitment – A Responsibility
  56. 56. Sequence Activities - Key Points • Sequence Activity: Tools and Techniques include Dependency Determination, PDM, Apply Leads and Lags, and Schedule Network Templates • Precedence Diagram Method (PDM or AON) has four types of logical relationships: FS, FF, SS, SF • Three types of PDM dependencies: Hard, Soft, External. Soft dependency is the only type Project Manager has control over. • Key output is Schedule Network DiagramsProject Management Certification – A Professional Commitment – A Responsibility
  57. 57. Estimate Activity ResourcesProject Management Certification – A Professional Commitment – A Responsibility
  58. 58. Estimate Activity Resources - Overview • What’s the purpose o Determine the type and quantity of resource needed o Resources include people, equipment, material, hardware, software, etc. • What they don’t teach you in Kindergarten o Anything!Project Management Certification – A Professional Commitment – A Responsibility
  59. 59. Estimate Activity Resources - PMBOK Process 6.3 Process Groups Monitoring & Initiating Planning Executing Closing Controlling Knowledge Areas Develop Project Direct and Manage Monitor & Control Project Work, Close Project or Integration Charter Develop Project Management Plan Project Execution Perform Integrated Change Control PhaseF o u n d a t i o n s o f Pr o j e c t M a n a g e m e n t Collect Requirements, Verify Scope, Scope Define Scope, Control Scope Create WBS Define Activities, Sequence Activities, Time Estimate Activity Resources, Control Schedule Estimate Activity Durations, Develop Schedule Estimate Cost, Cost Determine Budget Control Cost Perform Quality Quality Plan Quality Assurance Perform Quality Control Acquire Project Team, Human Resource Develop Human Resources Plan Develop Project Team, Manage Project Team Distribute Information, Identify Communications Stakeholders Plan Communications Manage Stakeholder Report Performance Expectations Plan Risk Management, Identify Risks, Risk Perform Qualitative Risk Analysis, Monitor and Control Risks Perform Quantitative Risk Analysis, Plan Risk Responses Procurement Plan Procurements Conduct Procurements Administer Procurements Close Procurement Project Management Certification – A Professional Commitment – A Responsibility
  60. 60. Estimate Activity Resources - Definition1 2 3 4 5 1 2 3 4 5 1 2 3 • The process of estimating the type and quantity of material, people, equipment, or supplies required to perform each activity • Closely coordinated with Estimate Costs process Project Management Certification – A Professional Commitment – A Responsibility
  61. 61. Estimate Activity Resources - Inputs1 2 3 4 5 1) Activity List 2) Activity Attributes 3) Resource Calendars o Output of “Acquire Team” in Executing progress group 4) Enterprise Environmental Factors 5) Organizational Process Assets Project Management Certification – A Professional Commitment – A Responsibility
  62. 62. Estimate Activity Resources - Tools and Techniques 1 2 3 4 5 1) Expert Judgment 2) Alternatives Analysis o Examples: resource skill levels, size and type of machinery, different tools and make-or-buy decisions 3) Published Estimating Data o Examples: labor trades, material and equipment within the country and in other countriesProject Management Certification – A Professional Commitment – A Responsibility
  63. 63. Estimate Activity Resources - Tools and Techniques 1 2 3 4 5 4) Bottom-up Estimating o If an activity cannot be confidently estimated, it is broken down to smaller parts for estimation; the estimates are then aggregated up to the activity level (PMBOK preferred method) 5) PM Software o Examples: Primavera, MS Project, Clarity, etc. o Number of Resources usually influence activity duration; in some cases, having two resources will cut duration in half, in other cases it will notProject Management Certification – A Professional Commitment – A Responsibility
  64. 64. Estimate Activity Resources - Outputs 1 2 3 1) Activity Resource Requirements o Identifies the types and quantities of resources required for each activity in a work package 2) Resource Breakdown Structure o Hierarchical structure of the identified resources by resource category and resource type o Includes labor, materials, equipment, supplies, etc. Software Project A Server Developers Business Analyst Testers Trainer Database UI Technical Business Developer Developer Tester Users 3) Project Document Updates o May include: Activity List, Activity Attributes, Resource CalendarsProject Management Certification – A Professional Commitment – A Responsibility
  65. 65. Sequence Activities - Data FlowsProject Management Certification – A Professional Commitment – A Responsibility
  66. 66. Estimate Activity Resources - Key Points • You should have paid attention in Kindergarten!  • The two processes that consider alternatives are Define Scope and Estimate Activity Resources • Bottom-up estimating performs estimates for each activity and rolls them up to higher levelsProject Management Certification – A Professional Commitment – A Responsibility
  67. 67. Estimate Activity DurationsProject Management Certification – A Professional Commitment – A Responsibility
  68. 68. Estimate Activity Durations - Overview • “How long will it take?”Project Management Certification – A Professional Commitment – A Responsibility
  69. 69. Estimate Activity Durations - PMBOK Process 6.4 Process Groups Monitoring & Initiating Planning Executing Closing Controlling Knowledge Areas Develop Project Direct and Manage Monitor & Control Project Work, Close Project or Integration Charter Develop Project Management Plan Project Execution Perform Integrated Change Control PhaseF o u n d a t i o n s o f Pr o j e c t M a n a g e m e n t Collect Requirements, Verify Scope, Scope Define Scope, Control Scope Create WBS Define Activities, Sequence Activities, Time Estimate Activity Resources, Control Schedule Estimate Activity Durations, Develop Schedule Estimate Cost, Cost Determine Budget Control Cost Perform Quality Quality Plan Quality Assurance Perform Quality Control Acquire Project Team, Human Resource Develop Human Resources Plan Develop Project Team, Manage Project Team Distribute Information, Identify Communications Stakeholders Plan Communications Manage Stakeholder Report Performance Expectations Plan Risk Management, Identify Risks, Risk Perform Qualitative Risk Analysis, Monitor and Control Risks Perform Quantitative Risk Analysis, Plan Risk Responses Procurement Plan Procurements Conduct Procurements Administer Procurements Close Procurement Project Management Certification – A Professional Commitment – A Responsibility
  70. 70. Estimate Activity Durations - Definition • The process of estimating the number of work periods needed to complete each activity with estimated resources • The duration estimate is progressively elaborated • In the real world, level of efforts (LOE) are estimated first and are used to calculate duration based on resource availability(80 hours / 0.5 head count = 160 hours or 4 weeks of duration)Project Management Certification – A Professional Commitment – A Responsibility
  71. 71. Estimate Activity Durations - Definition1 2 3 4 5 6 7 1 2 3 4 5 1 2 Project Management Certification – A Professional Commitment – A Responsibility
  72. 72. Estimate Activity Durations - Inputs1 2 3 4 5 6 7 1) Activity List o Comprehensive List of all Scheduled Activities 2) Activity Attributes o Identifies multiple components associated with each activity 3) Activity Resource Requirements o Resources assigned and availability of those resources have a significant effect on an activity’s duration 4) Resource Calendars o Type, Availability, & Capability of Human Resources (Sr. versus Jr.) o Type, Availability, & Capability of Equipment & Material Resources also affect duration Project Management Certification – A Professional Commitment – A Responsibility
  73. 73. Estimate Activity Durations - Inputs1 2 3 4 5 6 7 5) Project Scope Statement o Assumptions regarding Existing Conditions, Information availability, and Length of Reporting periods o Constraints of available resources and Contract Terms & Requirements 6) Enterprise Environmental Factors o Duration Estimating databases o Productivity Metrics o Published Commercial Information 7) Organizational Process Assets o Historical Duration Information o Product Calendars o Scheduling Methodology o Lessons Learned Project Management Certification – A Professional Commitment – A Responsibility
  74. 74. Estimate Activity Durations - Tools and Techniques 1 2 3 4 5 1) Expert Judgment o Team members who will perform activities will most accurately estimate them 2) Analogous Estimating – lower accuracy o Use a similar previous project as a reference and adjust for known differences; Top-down approach relying on historical information and expert judgment o Can be used on activity duration or total project duration o Less costly, less time-consuming  less accurate; useful at early project stage 3) Parametric Estimating – higher accuracy o Uses statistical relationship between historical data and other variables to quantitatively determine duration (= total units of work * labor hours per unit)Project Management Certification – A Professional Commitment – A Responsibility
  75. 75. Estimate Activity Durations - Tools and Techniques 1 2 3 4 5 4) Three-Point Estimates (PERT) – higher accuracy o Expected Duration = [Optimistic + (4 x Most Likely) + Pessimistic] / 6 o Weighted Average 5) Reserve Analysis o Contingency reserves / time reserves / buffers to account for schedule uncertainty o A % or a fixed number of work periodsProject Management Certification – A Professional Commitment – A Responsibility
  76. 76. Estimate Activity Durations - Calculations • Class Exercise o Best case = 18 days, Most Likely = 25 days, Worse Case = 38 days o Assume 1 Sigma unless specified otherwise • Calculate the following o PERT or Expected Duration o Activity Standard Deviation = (Pessimistic – Optimistic) / 6 o Range of Estimates = Expected Duration +/- Standard Deviation • Range needs to be widened if 2 Sigma (range = Expected Duration +/- Standard Deviation x 2) • FYI: o 1 Sigma = 68.3% confidence o 2 Sigma = 95.4% confidence o 3 Sigma = 99.7% confidence On this chart of a normal distribution, showing the classic bell curve shape, the mean (or average) is the vertical line at the center, and the vertical lines to either side represent intervals of one, two and three sigma. The percentage of data points that would lie within each segment of that distribution are shown.Project Management Certification – A Professional Commitment – A Responsibility
  77. 77. Estimate Activity Durations - Results • Class Exercise o Best case = 18 days, Most Likely = 25 days, Worse Case = 38 days o Assume 1 Sigma unless specified otherwise • Calculate the following o PERT or Expected Duration = [Optimistic + (4 x Most Likely) + Pessimistic] / 6 = (18 + 25x4 + 38)/6 = 26 o Activity Standard Deviation = (Pessimistic – Optimistic) / 6 = (38-18)/6 =3.33 o Range of Estimates = Expected Duration +/- Standard Deviation = 26 +/- 3.33 = between 22.67 days and 29.33 days • if 2 Sigma (range = Expected Duration +/- Standard Deviation x 2) = 26 +/- 3.33x2 = between 19.34 to 32.66Project Management Certification – A Professional Commitment – A Responsibility
  78. 78. Estimate Activity Durations - Outputs 1 2 1) Activity Duration Estimates o Estimated time to complete each activity o Duration = Effort / Resources o This can be a range 2) Project Document Updates o Activity attributes, Assumptions Log (e.g. skill level and availability)Project Management Certification – A Professional Commitment – A Responsibility
  79. 79. Estimate Activity Durations - Data FlowsProject Management Certification – A Professional Commitment – A Responsibility
  80. 80. Estimate Activity Durations - Key Points • Analogous estimating is top-down approach and less accurate • Parametric estimating calculates duration/cost based on duration/cost per unit x total units. Duration/cost per unit can be from historical data. • PERT calculates a weighted average estimate by using optimistic, mostly likely, and pessimistic estimates. • Activity duration estimates include number of work periods including elapsed time.Project Management Certification – A Professional Commitment – A Responsibility
  81. 81. Develop ScheduleProject Management Certification – A Professional Commitment – A Responsibility
  82. 82. Develop Schedule - Overview • Why is it important? • Which time-related processes have been completed so far before building the schedule?Project Management Certification – A Professional Commitment – A Responsibility
  83. 83. Develop Schedule - PMBOK Process 6.5 Process Groups Monitoring & Initiating Planning Executing Closing Controlling Knowledge Areas Develop Project Direct and Manage Monitor & Control Project Work, Close Project or Integration Charter Develop Project Management Plan Project Execution Perform Integrated Change Control PhaseF o u n d a t i o n s o f Pr o j e c t M a n a g e m e n t Collect Requirements, Verify Scope, Scope Define Scope, Control Scope Create WBS Define Activities, Sequence Activities, Time Estimate Activity Resources, Control Schedule Estimate Activity Durations, Develop Schedule Estimate Cost, Cost Determine Budget Control Cost Perform Quality Quality Plan Quality Assurance Perform Quality Control Acquire Project Team, Human Resource Develop Human Resources Plan Develop Project Team, Manage Project Team Distribute Information, Identify Communications Stakeholders Plan Communications Manage Stakeholder Report Performance Expectations Plan Risk Management, Identify Risks, Risk Perform Qualitative Risk Analysis, Monitor and Control Risks Perform Quantitative Risk Analysis, Plan Risk Responses Procurement Plan Procurements Conduct Procurements Administer Procurements Close Procurement Project Management Certification – A Professional Commitment – A Responsibility
  84. 84. Develop Schedule - Definition1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 1 2 3 4 • Process of analyzing sequences, durations, resources requirements, and schedule constraints to create the project schedule • Iterative process (schedule baseline vs. schedule revision) Project Management Certification – A Professional Commitment – A Responsibility
  85. 85. Develop Schedule - Inputs1 2 3 4 5 6 7 8 9 1) Activity List 2) Activity Attributes 3) Project Schedule Network Diagrams 4) Activity Resource Requirements 5) Resource Calendars 6) Activity Duration Estimates 7) Project Scope Statement 8) Enterprise Environmental Factors 9) Organizational Process Assets Project Management Certification – A Professional Commitment – A Responsibility
  86. 86. Develop Schedule - Tools and Techniques 1 2 3 4 5 6 7 8 1) Schedule Network Analysis o Employs various analytical techniques, such as critical path method, critical chain method, what-if analysis, and resource leveling 2) Critical Path Method (CPM) o A Schedule Network Analysis technique used to determine the schedule flexibility and determine the minimum project duration o Calculates the theoretical start and finish dates by using a forward pass and backward pass analysis; o No consideration of resource limitations 3) Critical Chain Method o Critical Path Method + Resource constraints + Schedule BuffersProject Management Certification – A Professional Commitment – A Responsibility
  87. 87. Develop Schedule - Tools and Techniques 1 2 3 4 5 6 7 8 4) Resource Leveling o A schedule network analysis technique applied to a schedule after critical path method o Necessary when required resources are over-allocated; often lets the schedule slip to smooth out resources o Can cause original Critical Path to change 5) What-if Scenario Analysis o Change conditions to simulate different possible scenarios o A schedule network analysis is performed o Monte Carlo Analysis: Random and iterative computer model showing probability distributionsProject Management Certification – A Professional Commitment – A Responsibility
  88. 88. Develop Schedule - Tools and Techniques 1 2 3 4 5 6 7 8 6) Apply Leads and Lags o Leads – head start o Lags – delay, time elapses 7) Schedule Compression o Shortens schedule with no change to project scope o Crashing: exchange higher costs for shorter schedule duration (eg. Add resources) o Fast tracking: converts sequential activities to parallel 8) Scheduling Tool o Example: MS Project, Primavera P6Project Management Certification – A Professional Commitment – A Responsibility
  89. 89. Develop Schedule - Critical Path Method (ES, EF, LF, LS) 1 2 3 4 5 6 7 8 Forward Pass Forward Pass 1. EF = ES + Duration 2. ES of successor tasks = latest EF of predecessor tasks ES = 0 EF = 3 Backward Pass Task A 1. LS = LF – Duration Duration = 3 days 2. LF of predecessor tasks = earliest LS of successor tasks LS = 2 LF = 5 ES = 5 EF = 20 Task D ES = 0 EF = 5 Duration = 15 days Task B LS = 5 LF = 20 ES = 20 EF = 26 Duration = 5 days Task F LS = 0 LF = 5 Duration = 6 days EF = 10 LS = 20 LF = 26 ES = 0 ES = 10 EF = 15 Task C Task E Backward Pass Duration = 10 days Duration = 5 days LS = 5 LF = 15 LS = 15 LF = 20 Note: Critical Path represents the path of the activities with the longest duration throughout the network diagram.Project Management Certification – A Professional Commitment – A Responsibility
  90. 90. Develop Schedule - Critical Path Method (ES, EF, LF, LS) 1 2 3 4 5 6 7 8 • ES / EF (Forward-Pass) o Estimated Start / Estimated Finish • EF = ES + Activity Duration • ES of Successor tasks = latest EF of Predecessor tasks • LF / LS (Backward-Pass) o Latest Finish / Latest Start • LS = LF - Activity Duration • LF of Predecessor tasks = earliest LS of Successor tasksProject Management Certification – A Professional Commitment – A Responsibility
  91. 91. Develop Schedule - Critical Path Method (Float) 1 2 3 4 5 6 7 8 1. Float (AKA free float, slack) = LF – EF. The amount of Forward Pass time a task can be delayed without affecting successor’s earliest start. 2. Total Float = The total amount of time that a schedule ES = 0 EF = 3 activity may be delayed from its early start date without the project finish date or violating a schedule Task A Float = 2 constraint Duration = 3 days 3. The critical path is the path that has Total Float = 0 4. Any delays along the critical path will delay the entire LS = 2 LF = 5 ES = 5 EF = 20 project 5. The tasks that have float > 0 can be delayed maximum Task D Float = 0 by the amount of the float without delaying the project ES = 0 EF = 5 Duration = 15 days Task B LS = 5 LF = 20 ES = 20 EF = 26 Duration = 5 days Float = 0 Task F LS = 0 LF = 5 Float = 0 Duration = 6 days EF = 10 LS = 20 LF = 26 ES = 0 ES = 10 EF = 15 Task C Float = 5 Task E Float = 5 Backward Pass Duration = 10 days Duration = 5 days LS = 5 LF = 15 LS = 15 LF = 20 What’s the total float of C-E-F?Project Management Certification – A Professional Commitment – A Responsibility
  92. 92. Develop Schedule - Critical Path Method (Float) 1 2 3 4 5 6 7 8 • Float (AKA free float, slack) = LF – EF. Amount of time a task can be delayed without affecting successor’s earliest start. • Total Float = Total amount of time that a schedule activity may be delayed from its early start date without the project finish date or violating a schedule constraint • The critical path is the path that has Total Float = 0 • Any delays along the critical path will delay the entire project • The tasks that have float > 0 can, at the most, be delayed by the amount of the float without delaying the projectProject Management Certification – A Professional Commitment – A Responsibility

×