This chapter introduces project scope management. It discusses the importance of scope management for project success and outlines the key processes involved - strategic planning, scope planning, and scope definition. Strategic planning involves selecting the right projects using techniques like net present value analysis. Scope planning develops a scope statement to define what is and isn't included in a project. Scope definition then creates a work breakdown structure and dictionary to define the work in detail. The chapter emphasizes that thorough scope management is essential for managing project expectations and performance.
2. Learning Objectives
• Understand the growing need for better project
management, especially for information
technology projects
• Explain what a project is and provide examples
of information technology projects
• Describe what project management is and
discuss key elements of the project management
framework
3. Learning Objectives
• Discuss how project management relates to
other disciplines
• Understand the history of project management
• Describe the project management profession,
including recent trends in project management
research, certification, and software products
4. Project Management Statistics
• The U.S. spends $2.3 trillion on projects every year, an
amount equal to one-quarter of the nation’s gross
domestic product (GDP).
• The world as a whole spends nearly $10 trillion of its
$40.7 trillion gross product on projects of all kinds.
• More than sixteen million people regard project
management as their profession; on average, a project
manager earns more than $82,000 per year.*
*PMI, The PMI Project Management Fact Book, Second Edition, 2001
PMI (Project Management Institute )
5. More Information
on Project Management
• More than half a million new information technology
(IT) application development projects were initiated
during 2001, up from 300,000 in 2000.*
• Famous business authors and consultants are stressing
the importance of project management. As Tom Peters
writes in his book, Reinventing Work: the Project 50,
“To win today you must master the art of the project!”
*The Standish Group, “CHAOS 2001: A Recipe for Success”
6. • IT projects have a terrible track record
– A 1995 Standish Group study (CHAOS) found that
only 16.2% of IT projects were successful and over
31% were canceled before completion, costing over
$81 B in the U.S. alone
• The need for IT projects keeps increasing
– In 2000, there were 300,000 new IT projects
– In 2001, over 500,000 new IT projects were started
Motivation for Studying Information
Technology (IT) Project Management
7. Advantages of Using Formal Project
Management
• Better control of financial, physical, and human
resources
• Improved customer relations
• Shorter development times
• Lower costs
• Higher quality and increased reliability
• Higher profit margins
• Improved productivity
• Better internal coordination
• Higher worker morale
8. What Is a Project?
• A project is “a temporary endeavor undertaken
to accomplish a unique product or service”
(PMBOK® Guide 2000, p. 4)
• Attributes of projects
– unique purpose
– temporary
– require resources, often from various areas
– should have a primary sponsor and/or customer
– involve uncertainty
9. Samples of IT Projects
• Northwest Airlines developed a new reservation
system called ResNet (see case study on companion
Web site at www.course.com/mis/schwalbe)
• Many organizations upgrade hardware, software,
and networks via projects
• Organizations develop new software or enhance
existing systems to perform many business functions
• Note: “IT projects” refers to projects involving
hardware, software, and networks
10. The Triple Constraint
• Every project is constrained in different ways by its
– Scope goals: What is the project trying to accomplish?
– Time goals: How long should it take to complete?
– Cost goals: What should it cost?
• It is the project manager’s duty to balance these
three often competing goals
12. The 2001 Standish Group Report Showed
Decided Improvement in Project Success
• Time overruns significantly decreased to
163% compared to 222%
• Cost overruns were down to 145%
compared to 189%
• Required features and functions were up to
67% compared to 61%
• 78,000 U.S. projects were successful
compared to 28,000
• 28% of IT projects succeeded compared to
16%
13. Why the Improvements?
The reasons for the increase in successful projects
vary.*
– The average cost of a project has been more than cut
in half.
– Better tools have been created to monitor and control
progress
– Better skilled project managers with better
management processes are being used.
*The Standish Group, "CHAOS 2001: A Recipe for
Success" (2001)
14. What is Project Management?
Project management is “the application of
knowledge, skills, tools, and techniques to
project activities in order to meet project
requirements” (PMI*, Project Management Body
of Knowledge (PMBOK® Guide), 2000, p. 6)
*The Project Management Institute (PMI) is an international
professional society. Their web site is www.pmi.org.
16. Project Stakeholders
• Stakeholders are the people involved in or
affected by project activities
• Stakeholders include
– the project sponsor and project team
– support staff
– customers
– users
– suppliers
– opponents to the project
17. 9 Project Management Knowledge
Areas
• Knowledge areas describe the key competencies
that project managers must develop
– 4 core knowledge areas lead to specific project
objectives (scope, time, cost, and quality)
– 4 facilitating knowledge areas are the means through
which the project objectives are achieved (human
resources, communication, risk, and procurement
management)
– 1 knowledge area (project integration management)
affects and is affected by all of the other knowledge
areas
18. Project Management Tools and
Techniques
• Project management tools and techniques assist project
managers and their teams in various aspects of project
management
• Some specific ones include
– Project Charter, scope statement, and WBS (work breakdown
structure) (scope)
– Gantt charts, network diagrams, critical path analysis, critical
chain scheduling (time)
– Cost estimates and earned value management (cost)
– See Table 1-1 on p. 11 for many more
19. How Project Management Relates to
Other Disciplines
• Much of the knowledge needed to manage
projects is unique to the discipline of project
management
• Project mangers must also have knowledge and
experience in
– general management
– the application area of the project
20. History of Project Management
• Some people argue that building the Egyptian
pyramids was a project, as was building the
Great Wall of China
• Most people consider the Manhattan Project to
be the first project to use “modern” project
management
• This three-year, $2 billion (in 1946 dollars)
project had a separate project manager and a
technical manager
21. Sample Gantt Chart
The WBS is on the left, and each task’s start and finish date
are shown on the right using a calendar timescale. Early Gantt
Charts, first used in 1917, were drawn by hand.
22. Sample Network Diagram
Each box is a project task from the WBS. Arrows show dependencies
between tasks. The bolded tasks are on the critical path. If any tasks on the
critical path take longer than planned, the whole project will slip
unless something is done. Network diagrams were first used in 1958 on the
Navy Polaris project, before project management software was available.
23. Sample Enterprise Project Management
Tool
In recent years, organizations have been taking advantage of software
to help manage their projects throughout the enterprise.
24. The Project Management Profession
• The job of IT Project Manager is in the list of
the top ten most in demand IT skills
• Professional societies like the Project
Management Institute (PMI) have grown
tremendously
• Project management research and certification
programs continue to grow
26. Project Management Knowledge
Continues to Grow and Mature
• PMI hosted their first research conference in June
2000 in Paris, France, and the second one in
Seattle in July 2002
• The PMBOK® Guide 2000 is an ANSI standard
• PMI’s certification department earned ISO 9000
certification
• Hundreds of new books, articles, and presentations
related to project management have been written
in recent years
27. Project Management Certification
• PMI provides certification as a Project
Management Professional (PMP)
• A PMP has documented sufficient project
experience, agreed to follow a code of ethics,
and passed the PMP exam
• The number of people earning PMP certification
is increasing quickly
• PMI and other organizations are offering new
certification programs (see Appendix B)
29. Ethics in Project Management
• Ethics is an important part of all
professions
• Project managers often face ethical
dilemmas
• In order to earn PMP certification,
applicants must agree to the PMP code of
professional conduct
30. Project Management Software
• By 2003, there were hundreds of different products to
assist in performing project management
• Three main categories of tools exist:
– Low-end tools: Handle single or smaller projects well, cost
under $200 per user
– Midrange tools: Handle multiple projects and users, cost
$200-500 per user, Project 2000 most popular
– High-end tools: Also called enterprise project management
software, often licensed on a per-user basis
• Project 2002 now includes a separate version for
enterprise project management (see Appendix A for
details on Project 2002)
31. You Can Apply Project Management to
Many Areas
• Project management applies to work as well as
personal projects
• Project management applies to many different
disciplines (IT, construction, finance, sports,
event planning, etc.)
• Project management skills can help in everyday
life
33. 2
Learning Objectives
• Describe an overall framework for project integration
management as it relates to the other project management
knowledge areas and the project life cycle
• Describe project plan development, including project plan
content, using guidelines and templates for developing plans,
and performing a stakeholder analysis to help manage
relationships
• Explain project plan execution, its relationship to project
planning, the factors related to successful results, and tools and
techniques to assist in project plan execution
• Understand the integrated change control process, planning for
and managing changes on information technology projects, and
developing and using a change control system
• Describe how software can assist in project integration
management
34. 3
The Key to Overall Project Success: Good
Project Integration Management
• Project managers must coordinate all of the
other knowledge areas throughout a project’s
life cycle
• Many new project managers have trouble
looking at the “big picture” and want to focus
on too many details (See opening case for a
real example)
• Project integration management is not the
same thing as software integration
35. 4
Project Integration Management
Processes
• Project Plan Development: taking the results
of other planning processes and putting them
into a consistent, coherent document—the
project plan
• Project Plan Execution: carrying out the
project plan
• Integrated Change Control: coordinating
changes across the entire project
36. 5
Figure 4-2. Framework for Project
Integration Management
Focus on pulling everything to-
gether to reach project success!
37. 6
Project Plan Development
• A project plan is a document used to
coordinate all project planning documents
• Its main purpose is to guide project execution
• Project plans assist the project manager in
leading the project team and assessing project
status
• Project performance should be measured
against a baseline plan
38. 7
Attributes of Project Plans
Just as projects are unique, so are project plans
• Plans should be dynamic
• Plans should be flexible
• Plans should be updated as changes occur
• Plans should first and foremost guide project
execution
39. 8
Common Elements of a Project Plan
• Introduction or overview of the project
• Description of how the project is organized
• Management and technical processes used on
the project
• Work to be done, schedule, and budget
information
40. 9
Introduction or overview of the project
• The project name
• A brief description of the project and the need it
addresses
• The sponsor’s name
• The names of the project manager and key team
members
• Deliverables of the project
• A list of important reference materials
• A list of definitions and acronyms, if appropriate
41. 10
Description of how the project is organized
• Organizational charts
• Project responsibilities
• Other organizational or process related
information
42. 11
Management and technical processes used
on the project
• Management objectives
• Project controls
• Risk management
• Project staffing
• Technical processes
46. 15
Stakeholder Analysis
• A stakeholder analysis documents important
(often sensitive) information about stakeholders
such as
– stakeholders’ names and organizations
– roles on the project
– unique facts about stakeholders
– level of influence and interest in the project
– suggestions for managing relationships
48. 17
Project Plan Execution
• Project plan execution involves managing and
performing the work described in the project
plan
• The majority of time and money is usually
spent on execution
• The application area of the project directly
affects project execution because the products
of the project are produced during execution
49. 18
What Went Wrong?
• Many people have a poor view of plans based on past
experiences. Senior managers often require a plan, but then no
one follows up on whether the plan was followed.
• For example, one project manager said he would meet with each
project team leader within two months to review their plans. The
project manager created a detailed schedule for these reviews.
He cancelled the first meeting due to another business
commitment. He rescheduled the next meeting for unexplained
personal reasons. Two months later, the project manager had
still not met with over half of the project team leaders.
• Why should project members feel obligated to follow their own
plans when the project manager obviously did not follow his?
50. 19
Important Skills for Project Execution
• General management skills like leadership,
communication, and political skills
• Product skills and knowledge (see example of
“What Went Right?” on p. 120)
• Use of specialized tools and techniques
51. 20
Tools and Techniques for Project
Execution
• Work Authorization System: a method for
ensuring that qualified people do work at the
right time and in the proper sequence
• Status Review Meetings: regularly scheduled
meetings used to exchange project information
• Project Management Software: special
software to assist in managing projects
52. 21
Integrated Change Control
• Integrated change control involves identifying,
evaluating, and managing changes throughout
the project life cycle (Note: 1996 PMBOK
called this process “overall change control”)
• Three main objectives of change control:
– Influence the factors that create changes to
ensure they are beneficial
– Determine that a change has occurred
– Manage actual changes when and as they
occur
54. 23
Change Control on Information
Technology Projects
• Former view: The project team should strive to do
exactly what was planned on time and within budget
• Problem: Stakeholders rarely agreed up-front on the
project scope, and time and cost estimates were
inaccurate
• Modern view: Project management is a process of
constant communication and negotiation
• Solution: Changes are often beneficial, and the project
team should plan for them
55. 24
Change Control System
• A formal, documented process that describes
when and how official project documents and
work may be changed
• Describes who is authorized to make changes
and how to make them
• Often includes a change control board (CCB),
configuration management, and a process for
communicating changes
56. 25
Change Control Boards (CCBs)
• A formal group of people responsible for
approving or rejecting changes on a project
• CCBs provide guidelines for preparing change
requests, evaluate change requests, and manage
the implementation of approved changes
• Includes stakeholders from the entire
organization
57. 26
Making Timely Changes
• Some CCBs only meet occasionally, so it may
take too long for changes to occur
• Some organizations have policies in place for
time-sensitive changes
– “48-hour policy” allows project team members to
make decisions, then they have 48 hours to reverse
the decision pending senior management approval
– Delegate changes to the lowest level possible, but
keep everyone informed of changes
58. 27
Using Software to Assist in Project
Integration Management
• Several types of software can be used to assist in
project integration management
– Documents can be created with word processing
software
– Presentations are created with presentation software
– Tracking can be done with spreadsheets or databases
– Communication software like e-mail and Web
authoring tools facilitate communications
– Project management software can pull everything
together and show detailed and summarized
information (see Appendix A for details)
60. Learning Objectives
• Understand the elements that make good project
scope management important
• Describe the strategic planning process, apply
different project selection methods, such as a net
present value analysis, a weighted scoring
model, and a balanced scorecard, and
understand the importance of creating a project
charter
• Explain the scope planning process and contents
of a scope statement
61. Learning Objectives
• Discuss the scope definition process and
construct a work breakdown structure using the
analogy, top-down, bottom-up, and mind
mapping approaches
• Understand the importance of scope verification
and scope change control
• Describe how software can assist in project
scope management
62. What is Project Scope Management?
• Scope refers to all the work involved in creating
the products of the project and the processes
used to create them. It defines what is or is not
to be done
• Deliverables are products produced as part of a
project, such as hardware or software, planning
documents, or meeting minutes
• The project team and stakeholders must have
the same understanding of what products will be
produced as a result of a project and how they’ll
be produced
63. Project Scope Management Processes
• Initiation: beginning a project or continuing to
the next phase
• Scope planning: developing documents to
provide the basis for future project decisions
• Scope definition: subdividing the major project
deliverables into smaller, more manageable
components
• Scope verification: formalizing acceptance of
the project scope
• Scope change control: controlling changes to
project scope
64. Project Initiation: Strategic Planning and
Project Selection
• The first step in initiating projects is to look at
the big picture or strategic plan of an
organization
• Strategic planning involves determining
long-term business objectives
• IT projects should support strategic and
financial business objectives
66. Identifying Potential Projects
• Many organizations follow a planning process
for selecting IT projects
• First develop an IT strategic plan based on the
organization’s overall strategic plan
• Then perform a business area analysis
• Then define potential projects
• Then select IT projects and assign resources
68. Methods for Selecting Projects
• There are usually more projects than available
time and resources to implement them
• It is important to follow a logical process for
selecting IT projects to work on
• Methods include:
– focusing on broad needs
– categorizing projects
– performing financial analyses
– using a weighted scoring model
– implementing a balanced scorecard
69. Focusing on Broad
Organizational Needs
• It is often difficult to provide strong justification
for many IT projects, but everyone agrees they
have a high value
• “It is better to measure gold roughly than to
count pennies precisely”
• Three important criteria for projects:
– There is a need for the project
– There are funds available
– There’s a strong will to make the project succeed
70. Categorizing IT Projects
• One categorization is whether the project
addresses
– a problem
– an opportunity
– a directive
• Another categorization is how long it will take
to do and when it is needed
• Another is the overall priority of the project
71. Financial Analysis of Projects
• Financial considerations are often an important
consideration in selecting projects
• Three primary methods for determining the
projected financial value of projects:
– Net present value (NPV) analysis
– Return on investment (ROI)
– Payback analysis
72. Net Present Value Analysis
• Net present value (NPV) analysis is a method of
calculating the expected net monetary gain or
loss from a project by discounting all expected
future cash inflows and outflows to the present
point in time
• Projects with a positive NPV should be
considered if financial value is a key criterion
• The higher the NPV, the better
73. Net Present Value Example
Uses
Excel’s
npv
function
Note
that
totals
are
equal,
but
NPVs
are
not.
74. JWD Consulting NPV Example
Multiply
by the
discount
rate each
year, then
take cum.
benefits –
costs to
get NPV
75. NPV Calculations
• Determine estimated costs and benefits for the
life of the project and the products it produces
• Determine the discount rate (check with your
organization on what to use)
• Calculate the NPV
• Notes: Some organizations consider the
investment year as year 0, while others start in
year 1. Some people enter costs as negative
numbers, while others do not. Check with your
organization for their preferences.
76. Return on Investment
• Return on investment (ROI) is calculated by
subtracting the project costs from the benefits
and then dividing by the costs
ROI = (total discounted benefits - total discounted
costs) / discounted costs
• The higher the ROI, the better
• Many organizations have a required rate of
return or minimum acceptable rate of return on
an investment
77. Payback Analysis
• Another important financial consideration is
payback analysis
• The payback period is the amount of time it will
take to recoup, in the form of net cash inflows,
the net dollars invested in a project
• Payback occurs when the cumulative discounted
benefits and costs are greater than zero
• Many organizations want IT projects to have a
fairly short payback period
79. Weighted Scoring Model
• A weighted scoring model is a tool that provides a
systematic process for selecting projects based on many
criteria
– First identify criteria important to the project selection process
– Then assign weights (percentages) to each criterion so they
add up to 100%
– Then assign scores to each criterion for each project
– Multiply the scores by the weights and get the total weighted
scores
• The higher the weighted score, the better
• See “What Went Right?” for a description of how a
mortgage finance agency uses a weighted scoring model
for IT projects
81. Project Charters
• After deciding what project to work on, it is
important to formalize projects
• A project charter is a document that formally
recognizes the existence of a project and
provides direction on the project’s objectives
and management
• Key project stakeholders should sign a project
charter to acknowledge agreement on the need
and intent of the project
84. Scope Planning and the
Scope Statement
• A scope statement is a document used to
develop and confirm a common understanding
of the project scope. It should include
– a project justification
– a brief description of the project’s products
– a summary of all project deliverables
– a statement of what determines project success
• See the example scope statement in Chapter 3,
pages 83-85
85. Scope Planning and the Work
Breakdown Structure
• After completing scope planning, the next step
is to further define the work by breaking it into
manageable pieces
• Good scope definition
– helps improve the accuracy of time, cost, and
resource estimates
– defines a baseline for performance measurement and
project control
– aids in communicating clear work responsibilities
86. The Work Breakdown Structure
• A work breakdown structure (WBS) is a
deliverable-oriented grouping of the work
involved in a project that defines the total scope
of the project
• It is a foundation document in project
management because it provides the basis for
planning and managing project schedules, costs,
and changes
89. Table 5-3. Intranet WBS in Tabular Form
1.0 Concept
1.1 Evaluate current systems
1.2 Define Requirements
1.2.1 Define user requirements
1.2.2 Define content requirements
1.2.3 Define system requirements
1.2.4 Define server owner requirements
1.3 Define specific functionality
1.4 Define risks and risk management approach
1.5 Develop project plan
1.6 Brief Web development team
2.0 Web Site Design
3.0 Web Site Development
4.0 Roll Out
5.0 Support
93. Approaches to Developing WBSs
• Using guidelines: Some organizations, like the
DoD, provide guidelines for preparing WBSs
• The analogy approach: Review WBSs of similar
projects and tailor to your project
• The top-down approach: Start with the largest
items of the project and break them down
• The bottom-up approach: Start with the detailed
tasks and roll them up
94. Basic Principles for Creating WBSs*
1. A unit of work should appear at only one place in the WBS.
2. The work content of a WBS item is the sum of the WBS items below it.
3. A WBS item is the responsibility of only one individual, even though many people
may be working on it.
4. The WBS must be consistent with the way in which work is actually going to be
performed; it should serve the project team first and other purposes only if
practical.
5. Project team members should be involved in developing the WBS to ensure
consistency.
6. Each WBS item must be documented to ensure accurate understanding of the scope
of work included and not included in that item.
7. The WBS must be a flexible tool to accommodate inevitable changes while
properly maintaining control of the work content in the project according to the
scope statement.
*Cleland, David I. Project Management: Strategic Design and Implementation, 1994
95. Scope Verification and Scope Change
Control
• It is very difficult to create a good scope statement and
WBS for a project
• It is even more difficult to verify project scope and
minimize scope changes
• Many IT projects suffer from scope creep and poor scope
verification
– FoxMeyer Drug filed for bankruptcy after scope creep on a
robotic warehouse
– Engineers at Grumman called a system “Naziware” and refused
to use it
– 21st
Century Insurance Group wasted a lot of time and money on
a project that could have used off-the-shelf components
97. Suggestions for Improving User Input
• Develop a good project selection process and
insist that sponsors are from the user
organization
• Have users on the project team in important
roles
• Have regular meetings
• Deliver something to users and sponsors on a
regular basis
• Co-locate users with developers
98. Suggestions for Reducing Incomplete
and Changing Requirements
• Develop and follow a requirements management process
• Use techniques like prototyping, use case modeling, and
JAD (joint application design) to get more user
involvement
• Put requirements in writing and keep them current
• Provide adequate testing and conduct testing throughout
the project life cycle
• Review changes from a systems perspective
• Emphasize completion dates to help focus on what’s most
important
• Allocate resources specifically for handling change
requests/enhancements
99. Using Software to Assist in Project
Scope Management
• Word-processing software helps create several
scope-related documents
• Spreadsheets help to perform financial calculations,
create weighted scoring models, and develop charts and
graphs
• Communication software like e-mail and the Web help
clarify and communicate scope information
• Project management software helps in creating a WBS,
the basis for tasks on a Gantt chart
100. Discussion Question
1. What is involved in project scope management,
and why is good project scope management so
important on information technology projects?
102. 2
Learning Objectives
• Understand the importance of project schedules and
good project time management
• Define activities as the basis for developing project
schedules
• Describe how project managers use network diagrams
and dependencies to assist in activity sequencing
• Explain how various tools and techniques help project
managers perform activity duration estimating and
schedule development
• Use a Gantt chart for schedule planning and tracking
schedule information
103. 3
Learning Objectives
• Understand and use critical path analysis
• Describe how to use several techniques for shortening
project schedules
• Explain the basic concepts behind critical chain
scheduling and Program Evaluation and Review
Technique (PERT)
• Discuss how reality checks and people issues are
involved in controlling and managing changes to the
project schedule
• Describe how software can assist in project time
management
104. 4
Importance of Project Schedules
• Managers often cite delivering projects on time as
one of their biggest challenges
• Average time overrun from 1995 CHAOS report
was 222%; improved to 163% in 2001 study
• Time has the least amount of flexibility; it passes
no matter what
• Schedule issues are the main reason for conflicts
on projects, especially during the second half of
projects
106. 6
Project Time Management Processes
• Project time management involves the
processes required to ensure timely completion
of a project. Processes include:
– Activity definition
– Activity sequencing
– Activity duration estimating
– Schedule development
– Schedule control
107. 7
Activity Definition
• Project schedules grow out of the basic
document that initiate a project
– Project charter includes start and end dates and
budget information
– Scope statement and WBS help define what will be
done
• Activity definition involves developing a more
detailed WBS and supporting explanations to
understand all the work to be done so you can
develop realistic duration estimates
108. 8
Activity Sequencing
• Involves reviewing activities and determining
dependencies
– Mandatory dependencies: inherent in the nature of
the work; hard logic
– Discretionary dependencies: defined by the project
team; soft logic
– External dependencies: involve relationships
between project and non-project activities
• You must determine dependencies in order to
use critical path analysis
109. 9
Precedence Diagramming Method
(PDM)
• Activities are represented by boxes
• Arrows show relationships between activities
• More popular than ADM method and used by
project management software
• Better at showing different types of
dependencies
112. 12
Activity Duration Estimating
• After defining activities and determining their
sequence, the next step in time management is
duration estimating
• Duration includes the actual amount of time
worked on an activity plus elapsed time
• Effort is the number of workdays or work
hours required to complete a task. Effort does
not equal duration
• People doing the work should help create
estimates, and an expert should review them
113. 13
Schedule Development
• Schedule development uses results of the other
time management processes to determine the
start and end date of the project and its
activities
• Ultimate goal is to create a realistic project
schedule that provides a basis for monitoring
project progress for the time dimension of the
project
• Important tools and techniques include Gantt
charts, PERT analysis, critical path analysis,
and critical chain scheduling
114. 14
Gantt Charts
• Gantt charts provide a standard format for
displaying project schedule information by
listing project activities and their
corresponding start and finish dates in a
calendar format
• Symbols include:
– A black diamond: milestones or significant events
on a project with zero duration
– Thick black bars: summary tasks
– Lighter horizontal bars: tasks
– Arrows: dependencies between tasks
117. 17
Milestones
• Milestones are significant events on a project
that normally have zero duration
• You can follow the SMART criteria in
developing milestones that are:
– Specific
– Measurable
– Assignable
– Realistic
– Time-framed
119. 19
Critical Path Method (CPM)
• CPM is a project network analysis technique
used to predict total project duration
• A critical path for a project is the series of
activities that determines the earliest time by
which the project can be completed
• The critical path is the longest path through
the network diagram and has the least amount
of slack or float
120. 20
Finding the Critical Path
• First develop a good project network diagram
• Add the durations for all activities on each path
through the project network diagram
• The longest path is the critical path
121. 21
Simple Example of Determining the
Critical Path
• Consider the following project network diagram.
Assume all times are in days.
a. How many paths are on this network diagram?
b. How long is each path?
c. Which is the critical path?
d. What is the shortest amount of time needed to
complete this project?
123. 23
More on the Critical Path
• If one or more activities on the critical path takes
longer than planned, the whole project schedule
will slip unless corrective action is taken
• Misconceptions:
– The critical path is not the one with all the critical
activities; it only accounts for time. Remember the
example of growing grass being on the critical path
for Disney’s Animal Kingdom Park
– There can be more than one critical path if the lengths
of two or more paths are the same
– The critical path can change as the project progresses
124. 24
Using Critical Path Analysis to Make
Schedule Trade-offs
• Knowing the critical path helps you make schedule
trade-offs
• Free slack or free float is the amount of time an activity
can be delayed without delaying the early start of any
immediately following activities
• Total slack or total float is the amount of time an activity
may be delayed from its early start without delaying the
planned project finish date
• A forward pass through the network diagram determines
the early start and finish dates
• A backward pass determines the late start and finish dates
125. 25
Techniques for Shortening a Project
Schedule
• Shorten durations of critical tasks by adding
more resources or changing their scope
• Crashing tasks by obtaining the greatest amount
of schedule compression for the least
incremental cost
• Fast tracking tasks by doing them in parallel or
overlapping them
127. 27
Importance of Updating Critical Path
Data
• It is important to update project schedule
information
• The critical path may change as you enter actual
start and finish dates
• If you know the project completion date will
slip, negotiate with the project sponsor
129. 29
Program Evaluation and Review
Technique (PERT)
• PERT is a network analysis technique used to
estimate project duration when there is a high
degree of uncertainty about the individual
activity duration estimates
• PERT uses probabilistic time estimates based on
using optimistic, most likely, and pessimistic
estimates of activity durations
130. 30
PERT Formula and Example
• PERT weighted average formula:
optimistic time + 4X most likely time + pessimistic time
6
• Example:
PERT weighted average =
8 workdays + 4 X 10 workdays + 24 workdays = 12 days
6
where 8 = optimistic time, 10 = most likely time, and 24 =
pessimistic time
131. 31
Controlling Changes to the Project
Schedule
• Perform reality checks on schedules
• Allow for contingencies
• Don’t plan for everyone to work at 100%
capacity all the time
• Hold progress meetings with stakeholders and
be clear and honest in communicating schedule
issues
132. 32
Working with People Issues
• Strong leadership helps projects succeed more
than good PERT charts
• Project managers should use
– empowerment
– incentives
– discipline
– negotiation
133. 33
What Went Right?
Chris Higgins used the discipline he learned in the Army to transform
project management into a cultural force at Bank of America. Higgins
learned that taking time on the front end of a project can save
significant time and money on the back end. As a quartermaster in the
Army, when Higgins' people had to pack tents, he devised a contest to
find the best way to fold a tent and determine the precise spots to place
the pegs and equipment for the quickest possible assembly. Higgins
used the same approach when he led an interstate banking initiative to
integrate incompatible check processing, checking account, and
savings account platforms in various states…He made the team
members analyze, plan, and document requirements for the system in
such detail that it took six months just to complete that phase. But the
discipline up front enabled the software developers on the team to do
all of the coding in only three months, and the project was completed
on time.
134. 34
Using Software to Assist in Time
Management
• Software for facilitating communications helps
people exchange schedule-related information
• Decision support models help analyze trade-offs
that can be made
• Project management software can help in
various time management areas
136. 36
Words of Caution on Using Project
Management Software
• Many people misuse project management
software because they don’t understand
important concepts and have not had good
training
• You must enter dependencies to have dates
adjust automatically and to determine the critical
path
• You must enter actual schedule information to
compare planned and actual progress