Scope Management Ensuring that the project includes all the work required, only the work required. Dividing the work into major pieces, then subdividing into smaller, more manageable pieces.

1. Project Organization and Scheduling 1
Project Planning/ Scheduling

2. Project Organization and Scheduling 2
Project Scope Planning
Scope Management
• Ensuring that the project includes all the work
required, only the work required.
• Dividing the work into major pieces, then
subdividing into smaller, more manageable
pieces.

3. Project Planning – Detailed Plan; Why?
This will
– Ensure that the appropriate resources will be available precisely
when required;
– Avoid different activities competing for the same resources at the
same time;
– produce a detailed schedule showing which staff carry out each
activity;
– Produce a detailed plan against which actual achievement may be
measured;
– Produce a timed cash flow forecast;
– Re-plan the project during its life to correct drift from the target.
Bob Hughes & Mike Cottrerell – Fourth Edition 3

4. Project Planning – Scheduling activities
Bob Hughes & Mike Cottrerell – Fourth Edition 4
• Feasibility assessment
• Resource allocation
• Detailed costing
• Motivation
• Co-ordination
Objectives of activity planning

5. Project Planning – Defining activities
• A project is composed of a number of inter-related activities.
• A project may start when at least one of its activities is ready to start.
• A project will be completed when all of the activities it encompasses
have been completed.
• An activity must have a clearly defined start and a clearly defined
end-point, normally marked by the production of a tangible
deliverable.
• An activity requires a resource (as most do) then that resource
requirement must be forecastable and is assumed to be required at a
constant level throughout the duration of the activity.
• The duration of an activity must be forecastable – assuming normal
circumstances, and the reasonable availability of resources.
• Some activities might require that others are completed before they
can begin (these are known as precedence requirements).
Bob Hughes and Mike Cotterell – Fourth edition 5

6. Project Planning – Identifying activities/
Work Breakdown Structure (WBS)
WBS - Identify the main (or high level) tasks required to
complete a project and then breaking each of these
down into a set of lower level tasks.
– Activity based approach
– Product based approach
– Hybrid approach
Advantage – production of a task catalogue that is
complete and is composed of non-overlapping activities
Note – WBS may not be defined to the finest level initially; however as the
project proceeds it can be refined to include finer details.
Bob Hughes & Mike Cotterell – Fourth edition 6

7. WBS – Activity based
Bob Hughes and Mike Cotterell 7

8. WBS – Product (deliverable) based
Bob Hughes and Mike Cotterell 8

9. WBS – Product based (Requirement specifications)
Bob Hughes and Mike Cotterell 9

10. WBS – Hybrid (activity and product)
Bob Hughes and Mike Cotterell 10

11. Project Organization and Scheduling 11
WBS - Typical Tasks
Detailed WBS Example
for procuring an
Equipment System

12. Project Organization and Scheduling 12
Summary (Top Level) WBS
Work Breakdown Structure
Summary and Detail tasks, or
Parent and Child tasks (Work Package)

13. Project Organization and Scheduling 13
Using the Work Breakdown Structure
1. Estimate and schedule the work (Durations, precedences on WBS)
2. Organize and schedule resources (resource allocated WBS)
3. Assign responsibilities – (Resource ramp-up, resource allocated
WBS)
4. Estimate and allocate costs and budgets (costed WBS)
5. Add up costs to different levels
– Task
– Levels on the WBS (phase, account/contract)
– Cost account
– Total project
6. Get resource commitments
7. Schedule start <--> end dates
8. Track expenditures, schedules and performance
Work Breakdown Structure

14. Network Diagram
Bob Hughes and Mike Cotterrel - Fourth Edition 14
Activity on Node diagram

15. Network Diagram
Bob Hughes and Mike Cotterrel - Fourth Edition 15
Activity on arrow diagram

16. Network Diagram
Bob Hughes and Mike Cotterrel - Fourth Edition 16
• A project network should have only one start node
• A project network should have only one end node
• A node has duration
• Links normally have no duration
• Precedents are the immediate preceding activities
• Time moves from left to right (if there is a possibility of confusion
or the direction needs to be reversed, arrows may be used)
Contd/-
Activity on Node diagram - Rules
Code
Data
take-on
Program
test
Install

17. Network Diagram
Bob Hughes and Mike Cotterrel - Fourth Edition 17
• A network may not contain loops
Activity on Node diagram – Rules (contd/-)
Design
program
Code
program
Test
program
Install
program
Write user
manual
Code
program
Test
program
Release
program
Correct
errors
Diagnose
errors
• A network should not contain dangles
Contd/-

18. Network Diagram
Bob Hughes and Mike Cotterrel - Fourth Edition 18
• Resolving a dangle
Activity on Node diagram – Resolving issues
Design
program
Code
program
Test
program
Install
program
Write user
manual
• Representing lagged activities
Sign-off
Build
prototype
Document
amendments
Test
prototype
Revise
specification
1
2
• Hammock activities – activities with zero duration, start at the start and end at the end
of a set of activities; overhead or other resources that are incurred or used at a constant rate.

19. Network Diagram
Bob Hughes and Mike Cotterrel - Fourth Edition 19
Similar to those for ‘activity on node’ diagrams
– A project network may have only one start node
– A project network may have only one end node
– A link has duration
– Nodes have no duration
– Time moves from left to right
– Nodes are numbered sequentially
– A network may not contain loops
– A network may not contain dangles
Activity on arrow diagram - Rules

20. Network Diagram
Bob Hughes and Mike Cotterrel - Fourth Edition 20
Activity on arrow diagram - Examples

21. Network Diagram
Bob Hughes and Mike Cotterrel - Fourth Edition 21
Activity on arrow diagram – Examples of ‘Not allowed’ cases

22. Network Diagram
Bob Hughes and Mike Cotterrel - Fourth Edition 22
Activity on arrow diagram – Special cases (Dummy activities)

23. Network Diagram
Bob Hughes and Mike Cotterrel - Fourth Edition 23
Activity on arrow diagram – Special cases (Representing
lagged activities)

24. Network Diagram
Activity label Duration
Earliest
Start
Activity Description
Earliest
Finish
Latest Start
Latest
Finish
Activity Span Float
Bob Hughes and Mike Cotterrel - Fourth Edition 24
Labeling Convention (activity on node network)

25. Network Diagram
Bob Hughes and Mike Cotterrel - Fourth Edition 25
An Example (Table 6.1 from Bob and Mike 4th
edition)
Activity Activity Duration Precedents
label description (weeks)
A Hardware selection 6
B Software design 4
C Install hardware 3 A
D Code and test software 4 B
E File take-on 3 B
F Write user manual 10
G User training 3 E, F
H Install & test system 2 C, D

26. A
Hardware
selection
C
Install
Hardware
B
Software
design
D
Code
software
H
Install
and
test
F
Use
Manual
E
File
take on
G
User
training
Start Finish
Bob Hughes and Mike Cottrell – Fourth edition
Network Diagram (for Table 6.1)

27. A 6 Weeks
Hardware
selection
C 3 wks
Install
Hardware
B 4 wks
Software
design
D 4 wks
Code
software
H 2 wks
Install
and
test
F 10 wk
Use
Manual
E 3 wks
File
take on
G 3 wks
User
training
Start Finish
Bob Hughes and Mike Cottrell – Fourth edition
Network Diagram (for Table 6.1)

28. A 6 Weeks
0
Hardware
selection
6
C 3 wks
6
Install
Hardware
9
B 4 wks
0 Software
design
4
D 4 wks
4 Code
softwar
e
8
H 2 wks
9 Install
and
test
11
F 10 wk
0 Use
Manu
al
10
E 3 wks
4 File
take on
7
G 3 wks
10 User
training
13
Start Finish
Bob Hughes and Mike Cottrell – Fourth edition
Network Diagram (for Table 6.1)
Forward Pass

29. A 6 Weeks
0
Hardware
selection
6
2 8
C 3 wks
6
Install
Hardware
9
8 11
B 4 wks
0 Software
design
4
3 7
D 4 wks
4 Code
software
8
7 11
H 2 wks
9 Install
and
test
11
11 13
F 10 wk
0 Use
Manu
al
10
0 10
E 3 wks
4 File
take on
7
7 10
G 3 wks
10 User
training
13
10 13
Start Finish
Bob Hughes and Mike Cottrell – Fourth edition
Network Diagram (for Table 6.1)
Backward pass

30. A 6 Weeks
0
Hardware
selection
6
2 8
2 wks
C 3 wks
6
Install
Hardware
9
8 11
2 wks
B 4 wks
0 Software
design
4
3 7
3 wks
D 4 wks
4 Code
software
8
7 11
3 wks
H 2 wks
9 Install
and
test
11
11 13
2 wks
F 10 wk
0 Use
Manu
al
10
0 10
0 wks
E 3 wks
4 File
take on
7
7 10
3 wks
G 3 wks
10 User
training
13
10 13
0 wks
Start Finish
Bob Hughes and Mike Cottrell – Fourth edition
Network Diagram (for Table 6.1)
Identify critical path
and
calculate Slack/ float

31. A 6 Weeks
0
Hardware
selection
6
2 8
8 wks 2 wks
C 3 wks
6
Install
Hardware
9
8 11
5 wks 2 wks
B 4 wks
0 Software
design
4
3 7
7 wks 3 wks
D 4 wks
4 Code
software
8
7 11
7 wks 3 wks
H 2 wks
9 Install
and
test
11
11 13
4 wks 2 wks
F 10 wk
0 Use
Manu
al
10
0 10
10 wks 0 wks
E 3 wks
4 File
take on
7
7 10
6 wks 3 wks
G 3 wks
10 User
training
13
10 13
3 wks 0 wks
Start Finish
Bob Hughes and Mike Cottrell – Fourth edition
Network Diagram (for Table 6.1)
Calculate activity span

32. Network Diagram
Bob Hughes and Mike Cotterrel - Fourth Edition 32
Activity Labeling : activity on arrow network
Event
number
Slack/
Float
Earliest
Start date/
Finish date
Latest Start
date/
Finish date

33. Network Diagram
Bob Hughes and Mike Cotterrel - Fourth Edition 33
Network diagram (activity on arrow) for same example – table 6.1

34. Network Diagram
Bob Hughes and Mike Cotterrel - Fourth Edition 34
Network diagram (activity on arrow) for same example – table 6.1

35. Network Diagram
Bob Hughes and Mike Cotterrel - Fourth Edition 35
Network diagram (activity on arrow) for same example – table 6.1

36. Network Diagram
Bob Hughes and Mike Cotterrel - Fourth Edition 36
Network diagram (activity on arrow) for same example – table 6.1

37. Network Diagram
Bob Hughes and Mike Cotterrel - Fourth Edition 37
Network diagram (activity on arrow) for same example – table 6.1
Critical Path – longest path in the network (Bold line)

38. PERT Chart
• Unlike the CPM approach, the PERT method does not
indicate the earliest date by which we could complete
the project but the expected (or most likely) date. An
advantage of this approach is that it places an emphasis
on the uncertainty of the real world. Rather than being
tempted to say ‘the completion date for the project is
….’ we are led to say ‘we expect to complete the project
by ….’
• Calculating standard deviation between pessimistic and
optimistic for each task, it can be used to rank them
according to their degree of risk.
Pert Chart 38

39. PERT Chart
Pert Chart 39

40. PERT Chart
Pert Chart 40

41. PERT Chart
Pert Chart 41

42. PERT Chart
Pert Chart 42

43. PERT Chart
Pert Chart 43

44. PERT Chart
Pert Chart 44

45. PERT Chart
Pert Chart 45

46. Module 1 - Introduction 46
If Estimate was Effort, must convert it to Duration
Duration = Effort/Resources (sometimes)
Taking into account:
Resource availability
Desire
Skill
Productivity
Scheduling

47. Scheduling - Gantt Chart (Bar Chart)
Project Organization and Scheduling 47

48. Module 1 - Introduction 48
Gantt (Schedule) Drives
• Training
• Meetings
• Reviews
• Reports
• Site preparation
• Delivery dates (date to order) for external items
• Payment
Scheduling - Gantt Chart

49. Module 1 - Introduction 49
Gantt (Schedule) Drives
1. Milestones
• Clear, concrete, binary events implying progress
• For example: Review (with approval), Sign off of a
deliverable, Funds approved
• Shown as 0 length task
– Try for even frequency
• Not too close
• Not more than 2 - 3 months apart
– Major Point to communicate with
• Client
• Outside world
• Management
Scheduling - Gantt Chart

50. Module 1 - Introduction 50
Resource Assignment
and Cost Planning

51. Module 1 - Introduction 51
• Availability
• Skills
• More experienced people
• Less experienced people
• Desire
• Similar tasks to one person to use learning curve
• Assign critical tasks to most reliable people
• Tasks that need interaction or are similar
• Same person
• Two who communicate
• Personality and team communication does matter
• and again, Availability
Assigning Resources

52. Module 1 - Introduction 52
Resource Loading and Optimizing
Gantt with Resource Histogram

53. Module 1 - Introduction 53
Resource leveling - possible rescheduling
Gantt with Resource Histogram
Manual resource leveling: fast vs good vs cheap
Automatic resource leveling: use only as ‘suggestion’

54. Module 1 - Introduction 54
Cost Estimating
• Similar to Time Estimating (usually done by the same
person/group that does the Time Estimates)
Calculation of Cost for each WP: Example:
If estimate was duration 10 days
Assign human resources 2 people
Need Effort = Duration x Resources E=2x10=20pd
e.g., Resource Cost (RC) = Effort x Rate(includes overhead)
RC=20x$1,000=$20,000
(Possible) Plus Fixed Cost (FC)
e.g., FC = $5,000
Total cost (TC) = Resource cost + Fixed Cost
TC=20,000 + 5,000 = 25,000

55. Module 1 - Introduction 55
Costed WBS
Use Software to roll costs up the WBS

56. Module 1 - Introduction 56
Cost Ramp-Up
$100,000.00
$200,000.00
$300,000.00
$400,000.00
Cumulative Cost:
Filtered resources Total:
CPM Total:
Q3 Q4 Q1 Q2 Q3 Q4 Q1
1997 1998
$53,920.00 $127,160.00 $274,360.00 $331,440.00 $349,920.00 $368,400.00 $376,500.00 $376,500.00
Use Software to report cash flow

57. Module 1 - Introduction 57
Cost - Sanity checks
Cost Estimate Error Range – same as Time Estimate
0
+75%
-25%
25
-10
10
-8
Indicative
PPA
Init Plan
Budget
EPA
Final Plan
Definitive
PDR
Design
PPA - Preliminary Project Approval
EPA - Effective
PDR - Preliminary Design Review