This paper discusses why the emerging 14 Point Schedule Assessment, developed by the Defense Contract Management Agency (DCMA), is fast becoming an established standard within the scheduling community across multiple industries.
Project Simplification through Metric AnalysisAcumen
A white paper on the benefits of using project metrics to analyze the health and quality of your projects. In addition, this paper introduces the patented approach of project ribbons for simplified project slice and dice reporting.
i just found this on the internet and i began to like it. It\'s our topic at school that\'s why i download it. I just want to share it. it\'s really a nice and creative presentation. It makes the topic more simple and clear.
Project Simplification through Metric AnalysisAcumen
A white paper on the benefits of using project metrics to analyze the health and quality of your projects. In addition, this paper introduces the patented approach of project ribbons for simplified project slice and dice reporting.
i just found this on the internet and i began to like it. It\'s our topic at school that\'s why i download it. I just want to share it. it\'s really a nice and creative presentation. It makes the topic more simple and clear.
Outline
MS Project Intro
Calendar
Project Summary
Network Diagram
WBS
Resources
Filter and Grouping
Customization
Constraint
Recurring Task
Resource Analysis and Leveling
Tracking
Earned Value Analysis
Reports
If you want more details or service related MS Project You can reach me through my email agrawalakshay28@gmail.com .
I am uploading all these notes only for the sake of Allah SWT. A very comprehensive and detailed Lecture Slide for Management Students (Related to Engineering)
6 Work Breakdown Structure and SchedulingCavan ImagesSto.docxevonnehoggarth79783
6 Work Breakdown Structure and Scheduling
Cavan Images/Stone/Getty Images
Learning Objectives
By the end of this chapter, you will be able to:
• Discuss the creation of a project work breakdown structure.
• Describe the scheduling process.
• Explain how to create schedules.
CO_CRD
CN
CT
CO_LO
CO_TX
CO_BL
co-cn
co-cr
co-box
co-intro
co-photo
co
bar81677_06_c06_173-198.indd 173 9/9/14 10:52 AM
Section 6.1 The Work Breakdown Structure
Pretest
1. To prepare a work breakdown structure for a project, the project manager starts from
the project’s end point and works backward.
a. True
b. False
2. Project schedules can act as constraints rather than efficiency tools.
a. True
b. False
3. Using a project template is recommended for simplifying the scheduling process.
a. True
b. False
Answers can be found at the end of the chapter.
Introduction
If you have ever been part of a team effort where it was unclear who was doing what, then you
have experienced the consequences of not planning out project work. When a team takes on
a project, there must be a plan for the work, a way to identify all the work tasks that must be
done in sequence to produce the project deliverable. In project management, this is called the
work breakdown structure. The WBS is the “what” in the question of who does what. Later,
team members are assigned to the work, but the first step is deciding what the work is.
This chapter will cover the process of defining and breaking down project work and schedul-
ing work tasks and milestones. It will focus on the WBS and scheduling process and the issues
involved in effective scheduling. This is important because outlining what needs to be done to
produce a project’s requirements and deliverables is a proven technique in producing a suc-
cessful project. This process of breaking down project work is a bread-and-butter function in
the project management field.
This chapter covers the definition of project work using a top-down WBS and scheduling the
work from the bottom up. It will illustrate the process and identify ways to reflect risk and
uncertainty in the scheduling process.
6.1 The Work Breakdown Structure
A WBS is a valuable description and documentation of the work involved in producing the
project deliverable. Sometimes the WBS is easy to define, but in more complex projects it is a
complicated and detailed listing of work tasks, milestones, and resources (resources include
personnel, materials, equipment, supplies, facilities, and other assets used in a project). The
WBS is the structure of the work, not the components of the product. Although some work is
directly related to product parts, the purpose of the WBS is to enable an accounting of the costs
of the project and the sequence of work activity and resource use so these can be scheduled.
H1
sec_n sec_t
bar81677_06_c06_173-198.indd 174 9/9/14 10:52 AM
Design Develop
Get
acceptance
Deliver
New information .
Why Scheduling Mustn't Be Allowed to Become an Extinct ScienceAcumen
This paper discusses why the emerging 14 Point Schedule Assessment, developed by the Defense Contract Management Agency (DCMA), is fast becoming an established standard within the scheduling community across multiple industries.
www.projectacumen.com
@projectacumen
This white paper covers a new approach to tracking project performance which identifies variance gaps between the baseline plan and actual performance for the project as a whole as well as specific deliverables, contractors, locations, or any other group of activities.
This paper introduces benchmarking as a concept that not only helps provide a framework and a repeatable approach to developing structurally sound schedules (based upon accepted Critical Path/CPM techniques), but equally importantly, bring realism to the schedule.
Outline
MS Project Intro
Calendar
Project Summary
Network Diagram
WBS
Resources
Filter and Grouping
Customization
Constraint
Recurring Task
Resource Analysis and Leveling
Tracking
Earned Value Analysis
Reports
If you want more details or service related MS Project You can reach me through my email agrawalakshay28@gmail.com .
I am uploading all these notes only for the sake of Allah SWT. A very comprehensive and detailed Lecture Slide for Management Students (Related to Engineering)
6 Work Breakdown Structure and SchedulingCavan ImagesSto.docxevonnehoggarth79783
6 Work Breakdown Structure and Scheduling
Cavan Images/Stone/Getty Images
Learning Objectives
By the end of this chapter, you will be able to:
• Discuss the creation of a project work breakdown structure.
• Describe the scheduling process.
• Explain how to create schedules.
CO_CRD
CN
CT
CO_LO
CO_TX
CO_BL
co-cn
co-cr
co-box
co-intro
co-photo
co
bar81677_06_c06_173-198.indd 173 9/9/14 10:52 AM
Section 6.1 The Work Breakdown Structure
Pretest
1. To prepare a work breakdown structure for a project, the project manager starts from
the project’s end point and works backward.
a. True
b. False
2. Project schedules can act as constraints rather than efficiency tools.
a. True
b. False
3. Using a project template is recommended for simplifying the scheduling process.
a. True
b. False
Answers can be found at the end of the chapter.
Introduction
If you have ever been part of a team effort where it was unclear who was doing what, then you
have experienced the consequences of not planning out project work. When a team takes on
a project, there must be a plan for the work, a way to identify all the work tasks that must be
done in sequence to produce the project deliverable. In project management, this is called the
work breakdown structure. The WBS is the “what” in the question of who does what. Later,
team members are assigned to the work, but the first step is deciding what the work is.
This chapter will cover the process of defining and breaking down project work and schedul-
ing work tasks and milestones. It will focus on the WBS and scheduling process and the issues
involved in effective scheduling. This is important because outlining what needs to be done to
produce a project’s requirements and deliverables is a proven technique in producing a suc-
cessful project. This process of breaking down project work is a bread-and-butter function in
the project management field.
This chapter covers the definition of project work using a top-down WBS and scheduling the
work from the bottom up. It will illustrate the process and identify ways to reflect risk and
uncertainty in the scheduling process.
6.1 The Work Breakdown Structure
A WBS is a valuable description and documentation of the work involved in producing the
project deliverable. Sometimes the WBS is easy to define, but in more complex projects it is a
complicated and detailed listing of work tasks, milestones, and resources (resources include
personnel, materials, equipment, supplies, facilities, and other assets used in a project). The
WBS is the structure of the work, not the components of the product. Although some work is
directly related to product parts, the purpose of the WBS is to enable an accounting of the costs
of the project and the sequence of work activity and resource use so these can be scheduled.
H1
sec_n sec_t
bar81677_06_c06_173-198.indd 174 9/9/14 10:52 AM
Design Develop
Get
acceptance
Deliver
New information .
Why Scheduling Mustn't Be Allowed to Become an Extinct ScienceAcumen
This paper discusses why the emerging 14 Point Schedule Assessment, developed by the Defense Contract Management Agency (DCMA), is fast becoming an established standard within the scheduling community across multiple industries.
www.projectacumen.com
@projectacumen
This white paper covers a new approach to tracking project performance which identifies variance gaps between the baseline plan and actual performance for the project as a whole as well as specific deliverables, contractors, locations, or any other group of activities.
This paper introduces benchmarking as a concept that not only helps provide a framework and a repeatable approach to developing structurally sound schedules (based upon accepted Critical Path/CPM techniques), but equally importantly, bring realism to the schedule.
Student Assignment for Presentation Ready in a Work Break Down Structure. You will find any things in this lesson even a Software you would like to Practice a Work Break Down Structure. thank
PART 2 6
Creating New Plane
Project Management
Finalized project scope
This initiative aims to support and provide more convenient travel for business owners and investors. We intend to accomplish this by constructing a new plane to enable investors and business owners to travel globally conveniently to source goods for their businesses. Our goal is to build a completely functional aircraft with all the features that anyone might require as they travel across the world for business trips or vacations. The plan will also provide a means for any user to invest in any foreign firm straight from its site that provides a business platform for its users. It will provide an opportunity for investors or any other users to visit different countries and allow them to suggest new goods and services for their businesses. Also, the project will allow businesses to access broad international markets within the shortest time possible to restock. We hope to see numerous tiny businesses develop from nothing into something with the introduction of this new plane that has extraordinary features, including comfort, speed, and convenience.
WBS structure
Figure 1.0
A WBS is a chronological breakdown of a task focused on quiet sections. As illustrated by the figure above (figure 1.0), it is graphical and presents the long row of components in a well-organized chart. In this project, there are five main tasks, including the setting up of air vehicles, system engineering, managing the program, testing and evaluating the project, and training of project team. A hand-me-down at the burn-up-the-road of a responsibility to comprehend the length, figure out prices, cut resources and incorporate schedules, WBS is the ability to do these things.
A successful WBS resembles an organizational block diagram or a tree bar chart. Such a diagram comprises all of the typically computer-accessible components and no redundancy. Also, it involves the categorization of tasks under the air vehicle. These tasks include airframe tasks, propulsion, and creating vehicle subsystems. However, the airframe has other subtasks, including air integration, assembling, text and checkout tasks, fuselage, and wing development. Other tasks categorized under the training of the project team are equipment management, service provision, and facility management.
Project Schedule
Figure 2.0
The Gantt chart, a bar chart that depicts the progression of tasks over time, is created using the Work Breakdown Structure. It shows how the project team will execute each task on the fly and with other tasks. We have two critical phases in this project, which are the project beginning and design phases. The procedures for standard construction projects, including the conversion from a legacy system, are explicitly outlined in the project schedule. As shown ...
The Work Breakdown StructureAwork breakdown structure (WBS) brea.docxssusera34210
The Work Breakdown Structure
Awork breakdown structure (WBS) breaks down all of the work defined in the scope of the project into manageable tasks. It focuses on the deliverables, the personnel who will create these products and the timing of tasks. The WBS can be organized in several ways. Each of the deliverables can be broken down into its components. For example, the delivery of a statewide GIS demographic survey may be broken down by county. Alternatively, the deliverables can be broken down into phases. For example, the demographic survey may involve data collection, data input, data verification, data formatting, analysis and display, with each phase having associated deliverables. Finally, a WBS may be organized around the project management process groups we discussed in Lesson 2. In this case, deliverables may be associated with initiating, planning, executing, controlling and closing the project.
A WBS may be in any format that clearly defines tasks, deliverables, and timing. One popular format, the Gantt chart, makes a list of project activities leading to deliverables along with the corresponding start and finish date. Project activities are listed separately on individual rows, and time intervals are delineated moving down these rows.
The project activities in a Gantt chart are organized into a hierarchy of levels. Level 0 generally represents the entire project. Level 1 represents the major products, summary tasks, or phases of the project, as listed above. These levels continue to increase as project activities are broken into more and more manageable pieces of work. When project activities have been broken down into the smallest desired tasks or work packages, the WBS has achieved its most detailed level corresponding to the highest numbered level.
A work package may take anywhere from a day to a week to several weeks to complete. It shouldn't be so small as to be trivial, nor should it be so large that it is composed of several deliverables. If you work with a Gantt chart in Microsoft Project, you will enter duration times for these work packages. It is important to have good estimates of how long individual task will truly take to complete. The best source for this information is input from team members who have worked on identical or similar tasks in the past.
The WBS is often created by one of three approaches. The analogy approach uses a similar WBS as a starting point. If you are working for a consulting firm that does similar projects for the same client, this approach may be simple and effective. Such an approach is greatly facilitated if the consulting firm keeps good records and has archives of past projects.
Thetop-down approach begins with the final or largest deliverables. Then, all of the components that make up these deliverables are identified. This process continues to greater and greater detail until all work packages are identified. A project manager attempting to do this alone had better have significant e ...
How Traditional Risk Reporting Has Let Us DownAcumen
This white paper discusses risk reporting techniques and ways of interpreting risk analysis results that actually enable the project team to make pro-active changes in reducing their risk exposure.
Developing Standards for Enterprise Schedule QualityAcumen
This white papers addresses the need to implement a standard for schedule quality and explains how ensuring quality in the IMS (Integrated Master Schedule) can be achieved through a three-step process.
Simplifiying cost and schedule risk analysis with acumen riskAcumen
Schedule risk analysis doesn’t have to be complicated. In this webinar learn how Acumen Risk™ uses a more intuitive approach to evaluating risk to achieve truly integrated cost and schedule risk analysis.
Benchmarking Execution Performance and Earned ValueAcumen
Determining historic PV, BAC, EAC and other EVM measures in order to benchmark for future projects is a valuable technique for ensuring realistic and achievable forecasts. Determining historic EV performance using prior similar projects validates those forecasts. Additionally, the value of benchmarking increases exponentially as the benchmark basis improves. From previous iterations of the schedule to a database of thousands of projects, EVM indicators have a strong correlation with execution performance over time.
Fuse Customer Perspectives: Oil & Gas / EnergyAcumen
A webinar presentation with clients from the industries with some of the costliest, most complex projects on earth: Oil & Gas and Energy. Learn how these project teams manage the complexities of engineering, procurement, construction, and regulation using Acumen Fuse. Panelists include Marathon Oil, Florida Power & Light, and other major energy companies.
Acumen has completed the first leg of the World Tour. This presentation is an in-depth overview of Acumen's solutions, as well as several Fuse use cases from Fuse clients
Does Better Scheduling Drive Execution Success?Acumen
Delivered at PMI SCoP's 9th Annual Scheduling Conference, this presentation discusses the results from a recently conducted research project showing the correlation between the quality of a plan and overall project success, as well as a means of assessing schedule quality and forecasting accuracy using metric analysis.
Meet or Exceed Schedule Expectations through Intelligent AccelerationAcumen
Delivered at PMI SCoP's 9th Annual Scheduling Conference, this presentation is an introduction of a new approach which enables a project to undergo iterative "what if" scenarios until a balance between successful acceleration and achievability.
Dr. McNatty Webinar: An Introduction to Acumen 360Acumen
Dr. Dan Patterson delivered a sneak peek presentation of the soon-to-be-released Acumen 360. The presentation was first look at how Acumen 360 is capable of optimizing projects with its revolutionary scenario generating, criteria building and project integrating capabilities.
PMICOS Webinar: Building a Sound Schedule in an Enterprise EnvironmentAcumen
Dr. Dan Patterson presented a one-hour webinar on effective scheduling using metrics analysis. He reviewed some of the common problems found in schedules and the research that backs the claim that, in the end, the schedule drives project success.
Smarter Project Analysis and Improved Project PerformanceAcumen
A seminar presentation on the importance of baseline compliance and how the faster, easier metric, logic and forensic analyzers and informative visualization options of Fuse 2.1 support project performance and success.
Acumen teamed up with PT&C for this seminar presentation which covered the standards and best practices for project scheduling and using the proper framework to analyze schedules.
This presentation was given by Acumen CEO, Dr. Dan Patterson, and Kurt Voytell, Acumen customer and project manager at Constellation Energy. Created for the Oracle Primavera Special Interest Group webinar, it includes a comprehensive overview and a case study of the use of Fuse at Constellation Energy.
Acumen & ARES delivered this presentation on the need to properly build, analyze and cost-load a schedule. Acumen gave a special sneak peek of Fuse 3.0 and 360.
Intelligent Project Acceleration: An Introduction to Acumen 360Acumen
A one-hour webinar introducing Acumen 360. Acumen 360 gives you the ability to accelerate time frames effortlessly in seconds. It provides pinpointed focus, intelligent optimization and selects the most efficient means of achieving your schedule goals.
Advanced Project Analysis: An Introduction to Fuse 3.0Acumen
An overview of Fuse 3.0. This one-hour webinar presentation focused on providing insight into the advanced project planning quality and execution performance assessment provided by Fuse.
Presented at the 2012 Construction CPM Conference, this presentation walks through the challenges of owner/contractor and JV disputes and reviews solutions and prevention techniques using Fuse.
Achieving the Unachievable: Aligning a Project with Stakeholder ExpectationsAcumen
This webinar presentation walks through a case study on a major capital expenditure project that was able to achieve a faster, risk-adjusted, and still achievable schedule using a combination of schedule and risk analytics based on Acumen's S1>S5 schedule maturity framework.
Company Valuation webinar series - Tuesday, 4 June 2024FelixPerez547899
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Implicitly or explicitly all competing businesses employ a strategy to select a mix
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Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
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Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
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Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
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• Four (4) workplace discipline methods you should consider
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Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
An Alternate Approach to Cost and Schedule Integration
1. // An Alternate Approach to
Integrating Cost and Schedule
Dr. Dan Patterson, PMP
CEO & President, Acumen
May 2010
+1 512 291 6261 // info@projectacumen.com
www.projectacumen.com
2. Table of Contents
Introduction ................................................................................................................. 3
The Need for Integrated Cost/Schedule Modeling ................................................. 3
Why is Scheduling on a Different Floor from Cost Estimating?............................. 3
Figure 1 –Different Hierarchies Used for Schedule and Cost Estimate ..... 4
Why Costs and Resources Are Often Excluded from Complex Schedules .............. 4
Current Approach to Integrating Cost/Schedule ................................................... 4
A New and Alternate Approach to Integrating Cost and Schedule ................................ 5
Integration of Cost/Schedule through Project Ribbons ......................................... 5
Figure 2 – Traditional Representation of Multiple Disciplines .................. 6
Figure 3 – A Single Project Ribbon with Overlapping Activities ................ 6
Step 1 – Create a Ribbon Containing all Activities within the Schedule... 6
Figure 4 – Activities Ribbonized by Project ............................................... 7
Step 2 – Add a Ribbon Containing all Cost Elements ............................... 7
Figure 5 – Cost Estimate with Associated Period Dates ........................... 7
Figure 6 – Integration of Cost Estimate and Schedule Activities .............. 7
Step 3 – Establish Integrated Cost/Schedule Metrics............................... 8
Figure 7 – Interrogation of Cost/Schedule Integration through Metrics .... 9
Conclusions ................................................................................................................. 9
+1 512 291 6261 // info@projectacumen.com
www.projectacumen.com 2
3. Introduction
Creating and maintaining an integrated cost and schedule model is often seen as
challenging at best, and at worst, quite simply not worth the effort. Eliminating the
need for a common Work Breakdown Structure (WBS) or Cost Breakdown Structure
(CBS), this whitepaper describes how effective cost/schedule integration can be
achieved by adopting an alternate approach. Once established, such integration
provides a powerful basis for intelligent schedule acceleration, cost reduction and risk
mitigation.
The Need for Integrated Cost/Schedule Modeling
Before we examine how to achieve integrated cost and schedule models, it is important
to firstly consider the need for such integration.
The basic premise of managing a project through planning and control techniques is to
successfully execute and complete a project to a given plan. A project plan is
essentially a roadmap to achieving a set of criteria such as a specific time frame, target
cost and given quality (the triple constraint).
In reality, all three of these objectives are, to an extent, correlated with the most
common correlation being schedule delays resulting in increases in project cost.
Being able to model how project costs align with activities over time in a schedule is a
fundamental requirement of project management and helps during the forecasting
process. Pinpointing the likes of schedule overruns at the same point in time as cost
overruns or high schedule risk activities driving poor cost performance are examples of
powerful project controls insight that can help improve the chance of project success.
Why is Scheduling on a Different Floor from Cost Estimating?
Scheduling and cost estimating disciplines often tend to be somewhat divorced with
regards to project management integration. The development of a project schedule is
carried out all too frequently as a separate exercise to that of the development of a
project cost estimate (and often are developed by separate teams).
Schedules are typically developed using a top-down approach based on a Work
Breakdown Structure with elaboration of the detailed schedule focusing on the work
required to achieve deliverables.
+1 512 291 6261 // info@projectacumen.com
www.projectacumen.com 3
4. Conversely, cost estimates are more often developed around a deliverable-centric
hierarchy (such as a cost breakdown structure) rather than the work required to deliver
these deliverables.
While the overarching objectives of both a schedule and cost estimate are common, the
structure and hierarchy of each is typically different.
Figure 1 shows an example of a project schedule hierarchy being work-centric
compared to the corresponding cost estimate being deliverable-centric. In short: the
WBS/CBS hierarchies don’t match, yet within their respective entireties, they both
accurately represent the total scope of the project.
Figure 1 –Different Hierarchies Used for Schedule and Cost Estimate in Same Project
Why Costs and Resources Are Often Excluded from Complex Schedules
Today, most scheduling tools offer a means of integrating cost and schedule. Costs are
generally analogous to resources in a scheduling tool and the integration of cost is
achieved through assigning ‘cost’ type resources as resource assignments to an
activity(s). In theory, this is an excellent approach as it means different cost types (such
as labor, material, Other Direct Costs etc) can all be defined as different resource types
(with their own rates and loading characteristics) and then assigned to the work in the
schedule.
The downside to such cost loading is the degree of effort required to both setup the
resources and resource assignments and then subsequently maintain and update them
during execution. In working with over fifty US$2B+ projects over the past 12 months,
not one of them has managed project cost through a cost-loaded schedule.
Current Approach to Integrating Cost/Schedule
One approach to overcoming the discrepancy between cost and schedule hierarchies
has been to spread the costs from the CBS across the WBS based on the cost
estimator and scheduler’s knowledge of how a cost element is used between multiple
activities e.g. a $10MM material cost may be spread 60/40 between ‘build foundations’
+1 512 291 6261 // info@projectacumen.com
www.projectacumen.com 4
5. and ‘build building’ work. This process is effective, yet extremely time consuming and
highly prone to subjective interpretation. The use of codes such as cost accounts to try
and provide commonality between the cost estimate and the schedule has helped
somewhat in this process.
Another approach has been to approximate the spreading of the cost estimate into the
schedule through the use of hammock activities. Hammock activities are arbitrary
groupings of activities (similar to summary activities within a WBS except hammocks
can span multiple WBS elements). Costs are assigned to the hammocks rather than the
activities themselves, which then provides a means of reflecting changes in cost as and
when the underlying activity durations change i.e. hammock durations are driven by the
durations of the activities that they contain. This is a good approximation technique for
cost loading but still suffers from the complexity of the project team having to
determine which activities fall within which groupings of the Cost Breakdown Structure.
A New and Alternate Approach to Integrating Cost and Schedule
Rather than trying to overcome the complexity of spreading or distributing a single cost
element amongst multiple activities, why not develop a model that recognizes that such
spreading is not easily achievable? Instead, consider developing an integrated
cost/schedule model that is linked by some other common attribute such as start and
end dates. The underpinnings of the timeline of a project schedule are start and end
dates of activities (that are calculated through Critical Path Methodology/CPM, the
basis behind all scheduling tools). In a similar manner, if start and end dates (or periods)
can be extracted from cost elements directly from within a cost estimate (e.g. using
time phased cost data), then these two models can be overlaid through the
commonality of ‘time’ to achieve cost/schedule integration.
Integration of Cost/Schedule through Project Ribbons
Project Ribbons simplify how work within a project is grouped together and displayed
to the project team. Most projects contain some type of hierarchy and grouping (such
as WBS or discipline). Project Ribbons are a means of flattening such hierarchies so as
to show a simplified continuous sequence of work through a project. Figure 2 shows an
example project with work grouped into three disciplines (Engineering, Procurement
and Construction).
+1 512 291 6261 // info@projectacumen.com
www.projectacumen.com 5
6. Figure 2 – Traditional Representation of Multiple Disciplines
A Project Ribbon is the simplest form of analysis ribbon and is created without any
specific grouping (such as WBS or discipline). Figure 3 shows a project ribbon
displaying all activities for the whole project and additionally indicates which periods of
time carry a high ‘density of work’. Figure 3 shows overlapping (concurrent) work during
specific phases of time.
Figure 3 – A Single Project Ribbon with Overlapping Activities
The following section describes the three steps in achieving cost/schedule integration
through ribbons.
Step 1 – Create a Ribbon Containing all Activities within the Schedule
Using the example shown in figure 1, the schedule is first flattened into a single “project
ribbon”. This creates a timeline of activities taking into account the overlapping of work.
A simple metric such as remaining duration can be assigned to this ribbon to show the
overlap of work per period. Figure 4 shows the Project Ribbon for our example project.
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7. Figure 4 – Activities Ribbonized by Project
Step 2 – Add a Ribbon Containing all Cost Elements within the Cost Estimate
The second step in achieving cost/schedule integration is to create a corresponding
ribbon for the cost estimate. In order to do this, we need to ensure that the cost
estimate elements also carry start and end dates (or assigned periods). Figure 5 shows
the line items from the original cost estimate with their corresponding start/end dates
referencing when the cost will be spent.
Figure 5 – Cost Estimate with Associated Period Dates
When the cost estimate is added as a second ribbon, integration is achieved by the
commonality of time. By visualizing and calculating cost and schedule metrics by time
period, insight into not only cost/schedule correlation is achieved but equally
importantly, cost and schedule discrepancy can also be determined.
Activities & Cost Elements
Integrated by ‘time’
Figure 6 – Integration of Cost Estimate and Schedule Activities
The integration achieved in figure 6 is extremely useful in providing time phased insight
into:
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8. • Periods of work and their associated costs
• Periods of work not carrying costs
• Periods of completed work with outstanding remaining cost
• Periods of planned work with actualized costs
• Activities not carrying associated costs
• Cost of work per period
• Status discrepancies between cost and schedule
Step 3 – Establish Integrated Cost/Schedule Metrics
Once integration is established through the cost and schedule ribbons, metrics can be
applied that encompass both cost and schedule. Consider the following three powerful
insights into cost/schedule integration:
1. Average cost of work per day per period
2. Cost elements that don’t align with activities
3. Activities that don’t carry costs
Average cost of work per day provides an insight into the ‘burn’ or expenditure rate
relative to the amount of work being performed. Cost Elements that don’t align with
activities is an excellent means of flagging discrepancies between the schedule and the
cost estimate. Activities that don’t carry costs is a good secondary indicator that the
cost estimate and the schedule don’t correctly align.
Figure 7 shows these three metrics being applied to the cost/schedule example. It can
be seen that the most efficient time period (lowest cost per day) is the first time period
in the project.
Most importantly, when examining periods of time that carry cost without
corresponding activities, it can be seen that two periods (5/16/2010 and 5/23/2010)
have errors that need addressing: either the schedule is incorrect or the time phasing of
the cost estimate is wrong. This is an indication of a serious discrepancy in the project
plan/estimate that must be resolved.
Thirdly, when reviewing periods that carry activities without cost, it can be seen that
three periods (from 4/25/2010 to 5/9/2010) have activities without costs assigned. While
not necessarily an error, these discrepancies are a strong indicator that the integration
of cost and schedule should be reviewed for these activities/cost elements.
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9. Lowest cost per day
period Three periods with Two periods with
activities without costs without
costs activities
Figure 7 – Interrogation of Cost/Schedule Integration through Metrics
Conclusions
Historically, creating and maintaining an integrated cost and schedule model has been
challenging. Given this, many projects now tend to build separate cost and schedule
models. This in turn generates an additional challenge of ensuring integrity and
integration between the two.
The method described in this paper, provides an alternate approach to not only
achieving such integration but also validating and flagging any errors and discrepancies
between the two. While not a silver bullet to automatic project success, this approach is
a significant step in helping to ensure stronger project planning and associated project
controls.
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