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Project Management Professional PMP Memo No (973)

Projects Cost Management


"! #$ %$&'( )* +!,-./01# 23#!4(#$ 56$7$
89
:r; <8dalla =l :aous>9 Marc>? @AA9 Ban? @ACA
(Computer Software Oriented)

Index
Page

Theoretical Part
Projects Cost Management ; ; ; ; ; D C; ProjectEs Fesources Planning ; ; ; ; C3 1.1 Gnputs to ProjectEs Fesource Planning . . 15 1.2 Tools & Techniques for Projects Resource Planning 17 1.2.1 A l!ing "x ert #udg$ent . . . 1.2.2 Identif!ing Alternati%e &olutions . . 1.2.( Rel!ing on Project )anage$ent &oft*are . 1.( +ut uts of Projects Resource Planning . . 1.(.1 Identif!ing Resource Require$ents . . ; ; . . . . . . . ; ; . . . . 25 . . . ; . . . . ; . . . . . ; ; ; . . 17 1' 1' 1, 1, ; ; 22 22 22 22 25 27 27 ; 2' 2' (8 (8 ; (1 (1 (2 (2 (2 ;

@; ProjectEs Cost =stimating ; ; ; ; ; @A @;C Gnputs to ProjectEs Cost =stimating ; ; @A 2.1.1 -sing .or/ 0rea/do*n &tructure . . 2.1.2 Rel!ing on the Resource Require$ents . 2.1.( 1alculating Resource Rates . . . 2.1.2 "sti$ating Acti%it! 3uration . . . 2.1.5 -sing "sti$ating Pu4lications . . . 2.1.5 -sing 6istorical Infor$ation . . . 2.1.7 Referencing the 1hart of Accounts . . 2.1.' Ac/no*ledging the 1ost of Ris/ . . @;@ Hools I Hec>niJues for ProjectEs Cost =stimating @K 2.2.1 -sing Analogous "sti$ating . . . 2.2.2 -sing Para$etric )odeling . . . 2.2.( -sing 0otto$7- "sti$ating . . . 2.2.2 -sing 1o$ uter &oft*are . . . @;3 Outputs of ProjectEs Cost =stimating ; ; 3C 2.(.1 "sti$ating Project 1osts . . . 2.(.2 Anal!9ing 1ost "sti$ating Results . . 2.(.( Refining the 1ost "sti$ates . . . 2.(.2 1onsidering the &u orting 3etail . . 2.(.5 3e%elo ing the 1ost )anage$ent Plan . 3; Completing ProjectEs Cost Ludgeting 33 ; ; ;

3;C Gnputs to ProjectEs Cost Ludgeting ; ; 3M (.1.1 1ost "sti$ates . . . . . (.1.2 .or/ 4rea/do*n &tructure . . . (.1.( Project &chedule . . . . . (.1.2 Ris/ $anage$ent Plan . . . . 3;@ Hools I Hec>niJues of ProjectEs Cost Ludgeting 3D 3;@;C <nalogous Ludgeting . . . (5 (.2.2 Para$etric )odeling . . . . (.2.( 0otto$7- 0udgeting . . . . (.(.2 1o$ uteri9ed Tools . . . . 3;3 Outputs of ProjectEs Cost Ludgeting ; ; 3N (.(.1 1reating the 1ost 0aseline . . . M; Gmplementing ProjectEs Cost Control ; ; ; 37 M;C Gnputs to ProjectEs Cost Control ; ; ; 2.1.1 1ost 0aseline . . . . . 2.1.2 Perfor$ance Re orts . . . . 2.1.( 1hange Requests . . . . . 2.1.2 1ost )anage$ent Plan . . . . M;@ Hools I Hec>niJues of ProjectEs Cost Control ; 39 2.2.1 1reating a 1ost 1hange 1ontrol &!ste$ . 2.2.2 )easuring Project Perfor$ance . . 2.2.( Planned :alue ;P:< . . . . 2.2.2 "arned :alue ;":<. . . . . 2.2.5 Actual 1ost ;A1< . . . . . 2.2.5 Additional Planning . . . . 2.2.7 -sing 1o$ uters . . . . . M;3 Outputs of ProjectEs Cost Control OOO Cost Control ; M3 2.(.1 Re%ising the 1ost "sti$ates . . . 2.(.2 - dating the 0udget . . . . 2.(.( A l!ing 1orrecti%e Actions . . . 2.(.2 Pre aring for the "sti$ate at 1o$ letion . 2.(.5 1alculating the 1ost Perfor$ance Index ;1PI< 2.(.5 1alculating "sti$ate at 1o$ letion ;"A1<. 2' 2.(.7 "x eriencing "x ected 1ondition . 2.(.' Accounting for =la*ed "sti$ates . 2.(., Accounting for Ano$alies . . . 2.(.18 Accounting for Per$anent :ariances . 2.(.11 1losing +ut the Project . . . 2.(.12 - dating >essons >earned . . .

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. (5 Page ; ; ; . . (' (' 3K (' (' ; . (, . 28 . 21 21 21 . 21 22 Fesults . . . . . . . . . . . 2( 22 25 25 25 . 2' 2, 58 51 52 52

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?e! Ter$s . &elf Test .

Practical Part
Scenario CP . . . . 3efining Roles@ Resources@ & Assigning Roles . . Assigning Resources & 1osts Anal!9ing Resources . Scenario @P . . . . + ti$i9ing the Project Plan 0aselining . . . Project "xecution & 1ontrol Scenario 3P . . . . Re orting Perfor$ance . . 1osts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page . 5, . 78 71 72 . 7( . . 75 77 . 7, . . 72 75

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QorRs>op (Case Stud9)P 0uilding 2nd =loor of a :illa '8 Feferences 185 . . . . . . .

H>eoretical Part

Projects Cost Management Planning


2 2 Cost Cost Estimating Estimating

Execution & Controlling (Updating


4 4 Cost Cost Controlling Controlling

1 1 Resource Resource Planning Planning

3 3 Cost Cost Budgeting Budgeting

Cost Estimating is the process of calculating the Costs of Resources needed to complete the Project Work. Cost Budgeting is the process of assigning a cost to an indi idual !ork package.

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Projects Cost ManagementP

#ost likel$ there is more negotiating% !uestioning% and e"aluating for larger Projects than for smaller ones. &he relation 'et!een the Project#s Cost and the Project#s $cope should 'e direct( $ou get !hat $ou pa$ for. ) successful Project Manager must 'e a'le to plan% predict% %udget% and control t&e costs of a Project. Costs associated 'it& Projects are not just t&e costs o( goods procured to complete t&e Project) &he cost o( *a%or ma$ 'e one of the 'iggest e*penses of a Project.

&he Project Manager must rel$ on time estimates to predict the cost of the la'or to complete the Project +or,.

+n addition% the Cost o( E!uipments and Materials needed to complete the Project Work must 'e considered into the Project,s Expenses.

+n 'rief(

Projects Cost Management Processes1) Resource Planning


1)1

.nputs to Resource Planning


1)1)1 +B$ 1)1)2 /istorical .n(ormation 1)1)3 $cope $tatement 1)1)4 Resource Pool 0escription 1)1)1 2rgani3ational Policies -.-.6 4cti"ities 0uration Estimates

1)2

5ools & 5ec&ni!ues o( Resource Planning


1)2)1 Expert 6udgment 1)2)2 4lternati"es .denti(ication 1)2)3 Project Management $o(t'are

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2utputs o( Resource Planning 1)3)1 Resource Re!uirements

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/int- Re(er to 7$cenario18 o( 7Practical Part8

2) Cost Estimating
2)1

.nputs to Cost Estimating


2.-.- Using +B$ & RB$ 2.-.2 Rel9ing on Resource Re!uirements (output of previous process) 2)1)3 Calculating Resource Rates 2.-.4 4cti"ities 0uration Estimates 2.-.5 Using Cost Estimating Pu%lications 2)1): Using /istorical .n(ormation 2.-.7 Re(erencing t&e C&art o( 4ccounts (Chart of Accounts: A Coding System used by Performing Organizations Accounting System to account for the Project or!) 2)1); 4c,no'ledging t&e Cost Ris,

2)2

5ools & 5ec&ni!ues (or Cost Estimating


2.2.- Using 4nalogous Estimating 2.2.2 Using Parametric Modeling 2.2.3 Using Bottom<Up Estimating 2.2.4 Using Computeri3ed 5ools

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2utputs o( Cost Estimating


2)3)1 Estimating Project Costs 2)3)2 4nal93ing Cost Estimating Results 2.3.3 Re(ining t&e Cost Estimates 2.3.4 Considering t&e $upporting 0etail (Supporting "etai#: Any $nformation that supports "ecisions% inc#uding the Project P#an as a &ho#e' Supporting "etai# can inc#ude (oo!s% Artic#es% eb Sites% )endor $nformation% *esu#ts of +esting% ,istorica# $nformation% and many others $nformation Sources') 2.3.5 0e"eloping t&e Cost Management Plan

/int- Re(er to 7$cenario18 o( 7Practical Part8

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3) Completing Cost Budgeting


3.-

.nputs to Cost Budgeting


3.-.-

Cost Estimates (from previous process)

3)1)2 +B$ 3)1)3 Project $c&edule 3)1)4 Ris, Management Plan

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5ools & 5ec&ni!ues o( Cost Budgeting


3)2)1 4nalogous Budgeting 3)2)2 Parametric Modeling 3)2)3 Bottom<Up Budgeting 3)2)4 Computeri3ed 5ools

3.3

2utputs o( Cost Budgeting


3.3.-

Creating t&e Cost Baseline

/int- Re(er to 7$cenario28 o( 7Practical Part8

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.mplementing Cost Control


4.-

.nputs to Cost Control


4)1)1 Cost Baseline (from previous process) 4)1)2 Per(ormance Reports 4)1)3 C&ange Re!uests 4)1)4 Cost Management Plan (from process -)

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5ools & 5ec&ni!ues o( Cost Control


4)2)1 Creating a Cost C&ange Control $9stem 4)2)2 Measuring Project Per(ormance 4)2)3 Earned =alue Management (E=M 4)2)3)1 4)2)3)2 4)2)3)3 Planned =alue (P= Earned =alue (E= 4ctual =alue (4=

4)2)4 4dditional Planning 4)2)1 Computeri3ed 5ools

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4.3

2utputs o( Cost Control <<< Cost Control Results


4)3)1 Re"ising t&e Cost Estimates 4)3)2 Updating t&e Budget 4)3)3 4ppl9ing Correcti"e 4ctions 4)3)4 Preparing (or t&e Estimate at Completion 4)3)1 Calculating t&e Cost Per(ormance .ndex(CP. 4)3): Calculating Estimate 4t Completion (E4C 4)3)> 4ccounting (or 4nomalies 4)3); 4ccounting (or =ariances 4)3)? Project Closeout 4)3)1@ Updating *essons *earned

/int- Re(er to 7$cenario28 o( 7Practical Part8

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Gn details?

ProjectEs Fesources PlanningP

)s part of the Planning Process% the Project Manager must determine !hat Resources are needed to complete the Project. Resources include *a%or /people % Aonla%or (E!uipments % and Materials that !ill 'e utili0ed to complete the Project. +n addition% the Project Manager must identif$ &o' man9 & '&en of the Resources are needed for the Project. &he .denti(ication o( Resources% the Aeeded Buantit9% and the $c&edule o( Resources are directl$ linked to the expected cost of the Project as sho!n(

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Example- 4utomate a 7Ae' /ome8 Project(


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&he *ig&ts% 4ir<Conditioning% Electrical 0e"ices% and /ome $ecurit9 are all connected through a Central Computer 2perating $9stem. &he Resources to complete the Project Work !ould include 5ec&nicians% /=4C Experts% Electricians% and ot&er People 'it& t&e ,no'ledge to install and con(igure t&e components. &he Resources in this case% ho!e er% !ould also include the Aet'or, Ca%ling to connect the components% 0iagnostic 5ools to monitor and test the installation% and the E!uipments & 5ools to ph$sicall$ install the components. +n addition% $er"ices are considered Resources as !ell. 1our Project ma$ re2uire a =endorCs $er"ice% such as a Printer% a Carpenter% or 2t&er $er"ice. +f these ser ices are not a aila'le for the Project as planned% the Project !ill suffer from dela$ing. 3ome Projects re2uire $ou to lease space4 t&e *eased $pace is considered a Resource. +n some instances% it is most cost effecti e to hire a Consultant or $u%ject Matter Expert /$ME5 to identif$ details uni2ue to the Project Work% such as permissions% la's% and so on. &he e*pense of rel$ing on the $ME ma$ 'e far less than the cost of the time to research the uni2ue details and re2uirements of the Project. &he kno!ledge gained from the $ME can 'alance the e*penses that !ould other!ise result from not ha ing speciali0ed kno!ledge of the Project Work.

=Sam

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Gnputs to ProjectEs Fesource Planning

Resource Planning is the process of e*amining the Project Work and determining !hat Resources /People% E!uipmentsD and Materials are needed to complete the Project. Resource Planning also includes identif$ing the expected !uantit9 of each Resource so the Predicted Cost can 'e calculated. 5&e (ollo'ing are some (amiliar .nputs to Resource PlanningQorR I Fesource LreaRdown StructureP &he +B$ 6 RB$ help the Project Manager and the Project 5eam identifies the components re2uiring specific People% E!uipments% and Materials. Tistorical GnformationP 7istorical +nformation should 'e used if it is a aila'le% as it is Pro en +nformation. Project ScopeP &he scope statement ser es as a ke$ input to Resource Planning since t&e $cope $tatement de(ines t&e Project +or,. &he re2uired !ork% therefore% can help identif$ the Re2uired Resources to Complete the Project. Fesource Pool :escriptionP
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&he Project Manager should identif$ the a aila'ilit$ of Resources for the Project /People% Materials% and E!uipments .

1)1)1

Per(orming 2rgani3ationCs PoliciesP


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&he Performing 8rgani0ation9s Policies regarding $ta(( 4c&ie"ements must 'e taken into consideration. +n addition% an$ Procurement Policies to ascertain /determine5 lease or rent e2uipment must 'e e aluated.

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&he Project #anager should 'e a!are of these re2uirements 'efore Resources Planning.

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&ime in ested identif$ing Resources ma$ 'e lost if the process conflicts !ith the 8rgani0ational Policies. <ctiUities :uration =stimatesP
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&he duration of the Project#s 4cti"ities are needed so the Project #anager and the Project &eam can consider the Resources 6 Costs and therefore the 'enefits of assigning more effort to reduce )cti ities, :uration !here feasi'le. 5&e 4cti"ities 0uration Estimates s&ould %e readil9 a"aila%le (rom t&e 75ime Management Processes8)

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C;@ Hools I Hec>niJues for ProjectEs Fesource Planning


C;@;C <ppl9ing =Spert Budgment

Preparing the +nputs to Resource Planning% the Project #anager and the Project &eam should 'e read$ to identif$ and plan the need for the Project Resources. &he Project #anager and Project &eam !ill e*amine the Project Work and Resources ) aila'ilit$ and then appl$ reason% logic% and e*perience in e aluating the ) aila'le Resources in relation to the Project,s Re2uirements. ) Person or <roup can offer =*pert >udgment on the Project Resource ?eeds. &he Person or <roup offering the Expert 6udgment should ha e the e*pertise% e*perience% or training needed to e aluate and anal$0e the Resources that the Project needs.

Expert 6udgment can come (rom se"eral $ources+nternal 3u'ject #atter =*perts /$ME5% such as Resources from other :epartments

=*ternal 3u'ject #atter =*perts /$ME5% such as Consultants

5rade and Pro(essional 4ssociations .ndustr9 Eroups


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C;@;@ Gdentif9ing <lternatiUe Solutions

)lternati es@+dentification is an$ process that identifies other solutions to an +dentified Pro'lem. &hese )pproaches t$picall$ use 'rainstorming and imaginati e thinking. +n this process% )lternati es@ +dentification ma$ include Bu9<"ersus<Build $cenarios% 2utsourcing% Cross 5raining% and 2t&er 4cti"ities. &he idea of using )lternati es@+dentification is to ensure that the +dentified Resources are complete and that the Cost of Resources is the 'est fit for the Project Work. =alue 4nal9sis is an 4pproac& to find more afforda'le /reasona'le5 and less costl$ #ethods of accomplishing the same !ork. Aor e*ample% a Project Manager ma$ change )cti ities@3e2uencing to shorten the Project,s :uration% !hile sa ing Ba'or Costs '$ assigning high@cost Resources onl$ to the )cti ities that demand them.

C;@;3 Fel9ing on Project Management Software


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Project #anagement 3oft!are can assist in Resource Panning. Project #anagement 3oft!are can help the Project #anager identif$ and organi0e the Resources Pool. Project #anagement 3oft!are can 'e configured to organi0e Common Resources% &alents% 3kill 3ets% Resources Calendars% Rates% Contract +nformation% and more.

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C;3 Outputs of ProjectEs Fesource Planning


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Gdentif9ing Fesource FeJuirementsP 8nce the Project #anager and Project &eam ha e completed Resource Planning% the re2uired Resources to complete the Project !ill ha e 'een identified. &he Resource +dentification is specific to the lo!est le el of the +B$ (i)e)D Project 4cti"ities .

&he +dentified@Resources !ill need to 'e o'tained through 3taff@ )c2uisition or through Procurement. Resource Planning identifies all of the Re2uired@Resources.

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ProjectEs Cost =stimating

Cost Estimating is the process of calculating the Costs of Resources needed to complete the Project Work. &he Person or <roup doing the Cost Estimating must consider the possi'le (luctuations% in(lation% conditions% and other causes of =ariances that could affect the total Cost =stimating. Cost Estimating and Pricing&here is a difference 'et!een Cost Estimating and Pricing. ) Cost Estimate is the cost of Resources re2uired to complete the Project Work.
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Pricing% ho!e er% includes a pro(it margin. +n other !ords% a Compan$ performing Projects for other 8rgani0ations ma$ do a cost estimate to see ho! much the Project is going to cost to complete. &hen% !ith this Cost +nformation% the$ !ill factor a profit into the Project Work% as sho!n(
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5&e costs (or $c&eduled 4cti"ities areo *a%or (People o Aon*a%or (E!uipments o Materials o Expenses

$er"ices

Facilities .n(lation 4llo'ance Contingenc9 (emergenc9 Cost

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Gnputs to ProjectEs Cost =stimating

Cost Estimating relies on /istorical .n(ormation and Policies from the Per(orming 2rgani3ation.

@;C;C Vsing t>e QorR LreaRdown StructureP


2( courseD t&e +B$ is included) .t is an input to (i"e major Planning Processes( 1< 4cti"it9 0e(inition% 2< Resource Planning% 3< Cost Estimating% 4< Cost Budgeting% and 1< Ris, Management Planning.

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Fel9ing on Fesource FeJuirementsP


&he output of Resource Planning ser es as a ke$ input to Cost =stimating. &he Project !ill ha e some Resources Re2uirement. &he $,ills o( t&e *a%or% the 4"aila%ilit9 o( Materials% or the Function o( E!uipments% must all 'e accounted for Cost Estimating.

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@;C;3 Calculating Fesource FatesP


&he Estimator has to kno! ho! much each Resource costs. 5&e Cost s&ould %e in some Unit o( 5ime or Unit o( Measure <<< suc& asGH&r% GHton% GHl( /long feet5% or GHuse.

5&ere are (our Categories o( Cost:irect CostsP &hese costs are accredited directl$ to the Project Work and cannot 'e shared among Projects /air(are% &otels% long distance p&one c&arges% and so on5. Gndirect CostsP &hese costs are representati e of more than one Project /Utilities<o(<Per(orming< 2rgani3ation% 4ccess<to<5raining<Room% Project< Management<$o(t'are<*icense% and so on5. Waria8le CostsP &hese costs ar$ depending on the conditions applied in the Project /num%er o( Meetings (or Participants% $uppl9 and 0emand o( Materials% and so on5. XiSed CostsP &hese costs remain constant throughout the Project /the Cost<o(<Rented< E!uipment for the Project% the Cost<o(<Consultant 'rought onto the Project% and so on5.

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@;C;M =stimating <ctiUit9 :urationsP

4cti"ities# 0urations Estimating /!hich predicts the length of the Project as a !hole5 are needed for decisions on Project#s Financing. Recall the formula for Present =alue. +t is(

F=I P= J (1KR
; P= F= R n

is the present alue% is the future alue% is the interest rate% and is the num'er of time periods.

&he Future =alue o( t&e Mone9 the Project !ill earn ma$ need to 'e measured against the Present =alue to determine if the Project is 'ort& (inancing% as sho!n here(

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:etermining of the 4cti"ities# 0urations are needed in order to estimate the &otal Cost of the Project. Aor e*ample% if an )cti it$ is estimated to last -4 hours and 3u0anne,s Cost is C".Dh% then the Cost of this )cti it$ !ill 'e C-%-2.. &he :uration sho!s #anagement ho! long the Project is e*pected to last and !hich )cti ities !ill cost the most and pro ides the opportunit$ to re<se!uence )cti ities to shorten the Project,s :uration@@@!hich conse2uentl$ shortens the finance period for the Project. &here are three )pproaches to estimate t&e Product#s Cost( Straight-Line DepreciationP allo!s the 8rgani0ation to !rite off the same amount each $ear. &he formula for straight@line depreciation is(

1.

Learl9 0eduction I (Purc&ase =alue < $al"age =alue H Aum%er o( Lears in Use. YZ Z03[ O \$.Z Z/#$ .]Z Z ) ^ _`aZ Zb#$ (cdef$ YZ Zg14h) iZ Zj'#$ klm# no!(pf$ .0]#$ q ( 57.'#$ 3ee Euestion no -; page 65FF

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Aor e*ample% if the purc&ase price of a photocopier is C7%... and the sal"age "alue of the photocopier in (i"e 9ears is C2%...% the formula !ould read( Learl9 0eduction I (>D@@@ < 2D@@@ H1 I G1D@@@
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Double-Declining Balance: is considered accelerated depreciation. &his method allo!s the organi0ation to dou'le the percentage !ritten off in the first $ear.

+n our preceding e*ample% a single deduction !as C-%... per $ear% !hich is 2.G of the total deduction across the fi e $ears. With dou'le@declining% the customer !ould su'tract 4.G the first $ear% and then 4.G of the remaining alue each su'se2uent $ear. +n our e*ample% the deducted amount for $ear one !ould 'e C2%.... Aor $ear t!o% it !ould 'e C-%2..% and $ear three it !ould 'e C72.. &his is a great method for E!uipment that $ou don,t anticipate to ha e around for a er$ long time@@@such as Computer E!uipment.
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Sum of the Years Depreciation is like a magic trick. +t !orks '$ !riting out the num'er of $ears the e2uipment is in production and adding each $ear to the $ear 'efore.

+n our e*ample( it !as fi e $ears% so !e do this( 5H4H3H2H-I-5 /note the largest to smallest5. &he sum of the $ears /-55 'ecomes our denominator4 the fi e% for the first $ear% is our numerator. 3o for the first $ear% !e,d deduct 5D-5 /or one third5 of the Photocopier Cost a(ter the 3al age )mount% !hich !ould 'e C-%65.. &he second $ear% the four !ould 'e the numerator and !e deduct C-%25.% and so on. =ach $ear !e,d deduct a slightl$ smaller percentage than the $ear 'efore.
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Vsing Cost =stimating Pu8licationsP


&here are /for different .ndustries5 Commercial Cost Estimating Pu%lications. &hese references can help the Project Estimator confirm

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and predict the accurac$ of estimates. +f a Project #anager elects to use one of these Commercial :ata'ases% the Cost =stimate should include a pointer to this document for future reference and erification.

@;C;N Vsing Tistorical GnformationP

/istorical .n(ormation is Pro"en .n(ormation and can come from se eral places( Project XilesP Past Projects !ithin the Performing 8rgani0ation can 'e used as a reference to predict Costs and &ime. Caution must 'e taken that the records referenced are accurate% some!hat current% and reflecti e of !hat !as actuall$ e*perienced in the 7istorical Project.

Commercial CostO=stimating :ata8aseP &hese data'ases pro ide estimates of !hat the Project should cost 'ased on the aria'les of the Project% Resources% and other Conditions.

Heam Mem8erEs rnowledgeP &eam #em'ers ma$ ha e specific e*perience !ith the Project Cost Estimate. Recollections ma$ 'e useful% 'ut are highl$ unrelia'le !hen compared to documented results.

sessons searnedP Bessons Bearned could include Cost =stimates o'tained from pre ious Projects that are similar in 3cope and 3i0e. =Sam Qatc>

@;C;7 Feferencing t>e C>art of <ccountsP


&his is a Coding $9stem used '$ the Per(orming 2rgani3ation#s 4ccounting $9stem to account for the Project +or,. =stimates !ithin the Project must 'e mapped to the correct code of accounts so that the 8rgani0ation,s Bedger reflects the )ctual Work Performed% the Cost of the Work Performed% and an$ 'illing /internal or e*ternal5 that !as charged to the Customer for the Completed Work.

@;C;K <cRnowledging t>e Cost of FisRP

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&he impact of Risks% for positi e or negati e effect% must 'e e aluated and considered in the Cost =stimates.

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Hools I Hec>niJues for ProjectEs Cost =stimating

@;@;C Vsing Similar =stimatingP

3imilar =stimating relies on 7istorical +nformation to predict the Cost of the current Project. +t is also kno!n as 5op<0o'n Estimating. &he process of 3imilar =stimating takes the )ctual Cost of a 7istorical Project as a 'asis for the current Project. &he Cost of the 7istorical Project is applied to the Cost of the Current Project% taking into account the 3cope and 3i0e of the Current Project as !ell as other kno!n Jaria'les. 3imilar =stimating is a form of Expert 6udgment. &his =stimating )pproach takes less time to complete than other =stimating #odels% 'ut is also less accurate. &his &op@:o!n )pproach is good for fast estimates to get a general idea of !hat the Project ma$ cost. Example o( $imilar Estimating(

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&he KCarlton Par, ProjectL !as to grade and pa e a side!alk around a 3!imming Pool in the Communit$@Park. &he side!alk of Carlton Park !as -%.4" feet '$ 6 feet% and cost C25%2"7 to complete. &he current Project% KMing Par, ProjectL% !ill ha e a similar surface and !ill co er 4%5.. feet '$ 6 feet. &he )nalogous =stimate for this Project% 'ased on the !ork in Carlton<Par,% is C-."%5... &his is 'ased on the priceH(oot of #aterial at C4..2.

@;@;@ Vsing Parametric ModelingP

Parametric Modeling uses a Mat&ematical Model %ased on ,no'n parameters to predict t&e Cost o( a Project. &he parameters in the #odel can ar$ 'ased on the t$pe of !ork 'eing completed. ) parameter can 'e costHlong (oot% costHcu%ic 9ard% costHunit% and so on. ) comple* parameter can 'e cost per unit !ith adjustment factors 'ased on the conditions of the Project. +n addition% the adjustment factors ma$ ha e additional modif$ing factors depending on additional conditions. &o use Parametric #odeling% the factors the model is 'ased on must 'e accurate. &he factors !ithin the #odel are 2uantifia'le and do not ar$ much 'ased on the effort applied to the )cti it$. )nd finall$% the #odel must 'e scala'le 'et!een Project@3i0es. &he Parametric Model using a scala'le CostHUnit 4pproac& is depicted here(

3-

32

5&ere are t'o t9pes o( Parametric Cost Estimating1. Fegression <nal9sisP


&his is a 3tatistical )pproach to predict !hat Auture Jalues ma$ 'e 'ased on 7istorical Jalues.

@; searning CurUeP
&his )pproach is simple. &he costDunit decreases the more units Workers complete4 this is 'ecause Workers learn as the$ complete the re2uired Work. &he more an +ndi idual completes an )cti it$% the easier it is to complete. &he estimate is considered parametric% as the formula is 'ased on repetiti e )cti ities such as !iring &elephone@>acks% Painting@7otel@Rooms% or other )cti ities that are completed o er and o er !ithin a Project. &he costDunit decreases as the e*perience increases 'ecause the time to complete the Work is shortened.

2.2.3

Vsing LottomOVp Cost =stimatingP


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33

Bottom<Up Estimating starts from 0ero% accounts for each component of the +B$% and arri es at a sum for the Project. +t is completed !ith the Project &eam and can 'e one of the most time@consuming #ethods to predict Project Costs. +&ile t&is met&od is more expensi"e (%ecause o( t&e time in"ested to create t&e estimate it is also one o( t&e most accurate.
=Sam Qatc>

@;@;M Vsing Computer SoftwareP

Computer $o(t'are can assist t&e Project Manager) 5&ere are se"eral di((erent Computer Programs t&at can ma,e 4ccurate Estimates (or t&e Project +or,)

2.3

Output of ProjectEs Cost =stimating

@;3;C =stimating Project CostsP

Management% Customers% and other interested $ta,e&olders are all going to 'e interested in !hat the Project is going to cost to complete. &he =stimates are reflecti e of the )ccurac$ of the +nformation the =stimate is 'ased upon. &he more )ccurate the +nformation% the 'etter the Cost =stimate !ill 'e.

@;3;@ <nal9ting Cost =stimating FesultsP

&he output of Cost =stimating is the Cost =stimates of the Resources re2uired to the complete the Project Work. &he =stimate is t$picall$ !uantitati"e and can 'e presented in detail against the +B$ Components or summari0ed in terms of a <rand &otal% '$ phases of the Project% or '$ #ajor :eli era'les /like 3u'@Contractors5.

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34

=ach Resource in the Project must 'e accounted for and assigned to a Cost Categor$. Cost Categories include( *a%or Costs Material Costs 5ra"el Costs $upplies /ard'are Costs $o(t'are Costs

&he Cost of the Project is e*pressed in #onetar$ &erms% such as dollar% euro% or $en% so #anagement can compare Projects 'ased on Costs. +t ma$ 'e accepta'le% depending on the demands of the Performing 8rgani0ation% to pro ide estimates in 3taffing 7ours or :a$s of Work to complete the Project along !ith the =stimated Costs.

@;3;3 Fefining t>e Cost =stimatesP

&hrough the Project Progresses% the =stimates are refined. +ndustr$ <uidelines and 8rgani0ational Policies ma$ define ho! the =stimates are refined% 'ut t&ere are generall9 t&ree accepted Categories o( Estimating 4ccurac9( Foug> Order of MagnitudeP &his =stimate is Mroug&# and is used during the .nitiating Processes and in &op@:o!n =stimates. &he range of ariance for the estimate can 'e @25G to H75G. Ludget =stimateP &his =stimate is also some!hat 'road and is used earl$ in the Planning Processes and also in &op@:o!n =stimates. &he range of ariance for the estimate can 'e @-.G to H25G. :efinitiUe =stimates &his estimate t$pe is one of the #ost )ccurate. +t is used late in the Planning Processes and is associated !ith Nottom@Op =stimating. &he range of ariance for the estimate can 'e @5G to H-.G.

-.

2.

3.

2.3.4

Considering Supporting :etailP


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35

8nce the =stimates ha e 'een completed% 3upporting :etail must 'e organi0ed and documented to sho! ho! the =stimates !ere created. &he 3upporting :etail includes the follo!ing(
o o

Gnformation on t>e Project Scope QorR &his ma$ 'e pro ided '$ referencing the +B$. Gnformation on t>e <pproac> used in :eUeloping t>e Cost =stimates &his can include ho! the estimate !as accomplished and the parties in ol ed !ith the =stimate. Gnformation on t>e Fange of Wariance in t>e =stimate Aor e*ample% 'ased on the estimating method used% the Project Cost ma$ 'e C22.%... P C-5%.... &his Project Cost ma$ 'e as lo! as C2.5%... or as high as C235%....

@;3;D :eUeloping t>e Cost Management PlanP

&he Cost #anagement Plan details ho! Project Costs Jariances !ill 'e managed.

3; Completing ProjectEs Cost Ludgeting

Cost Budgeting- Cost Nudgeting is the process of assigning a cost to an +ndi idual Work Package. &he goal of this process is to assign costs to the Work in the Project so that the Work ma$ 'e measured for performance. Cost Nudgeting in ol es aggregating the estimated Costs of +ndi idual )cti ities or Work Packages to esta'lish a &otal Cost Naseline for measuring Project Performance. &his is the creation of the Cost Naseline% as sho!n(

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36

Cost Budgeting and Cost Estimates ma9 go &and<in<&andD %ut Estimating s&ould %e completed %e(ore a Budget is re!uested or assigned)

5&e di((erence %et'een Cost Estimates and Cost Budgeting is t&at Cost Estimates s&o' Costs %9 Categor9D '&ereas a Cost Budget s&o's Costs across 5ime according to Project#s $c&edule)

3;C Gnputs to ProjectEs Cost Ludgeting

Necause Cost Nudgeting and Cost =stimating are so closel$ related% $ou can e*pect man$ of the same inputs for 'oth. /ere are t&e inputs to Cost Budgeting3;C;C

Cost =stimatesP &hese ser e as ,e9 inputs4 the$ are the predicted cost for the Project Work.

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37

3;C;@

QorR LreaRdown StructureP +t is a ke$ input to this process% as it is the :eli era'les of the Project. Project Sc>eduleP &he Project 3chedule is needed to determine !hen the mone$ in the Nudget !ill 'e spent. FisR Management PlanP &he Risk #anagement Plan is considered 'ecause of information it pro ides of the pro'a'ilit$ of +dentified Risks and their associated Costs. +n addition% the Risks ma$ ha e an e*pected Risk Jalue that contri'utes to the Contingenc$ Reser e for the Project.

3;C;3

3;C;M

3;@ Hools I Hec>niJues of ProjectEs Cost Ludgeting OOO :eUeloping t>e Project Ludget

&he &ools and &echni2ues used to create the Project Cost =stimates are also used to create the Project Nudget. 7ere is a 2uick reminder of the four components(
3;@;C

Similar LudgetingP &his is a form of Expert 6udgment that uses a &op@:o!n )pproach to predict Costs. +t is generall$ less accurate than other Nudgeting &echni2ues.

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3;@;@

Parametric ModelingP &his )pproach uses a Parametric #odel to e*trapolate !hat Costs !ill 'e for a Project /for e*ample% costDhr and costDunit5. LottomOVp LudgetingP &his )pproach is the most relia'le% though it takes the longest time to create. +t starts at 0ero and re2uires each Work Package to 'e accounted for. Computerited HoolsP &he same 3oft!are Programs used in =stimating can help predict the Project Nudget !ith some accurac$.

3;@;3

3;@;M

3;3 Output of ProjectEs Cost Ludgeting


3;3;C
o

Creating t>e Cost Laseline

) Project,s Cost Naseline sho!s !hat is e*pected to 'e spent on the Project. +t is usuall$ sho!n in an 3@cur e as follo!s(

3"

3;

&he idea of the Cost Naseline allo!s the Project #anager and #anagement to predict !hen the Project !ill 'e spending mone$ and o er !hat time period. &he purpose of the Cost Baseline is to measure and predict Project Per(ormance. &he figure a'o e KCost BaselinesL sho!s predicted Project Cost and Phase Cost Performance. Barge Projects that ha e multiple :eli era'les ma$ ha e multiple Cost Naselines to illustrate the Costs !ithin each Phase. )dditionall$% larger Projects ma$ ha e Cost Naselines to predict $pending Plans% Cas& Flo's of the Project% and o erall Project Per(ormance. 5&e purpose o( a Cost Baseline is to measure Per(ormanceD and a Baseline 'ill predict t&e expenses o"er t&e li(e o( t&e Project) )n$ inconsistenc$ earl$ in the predicted Naseline and the )ctual Costs ser e as a signal that the Project is slipping.

4.

Gmplementing ProjectEs Cost Control


Cost Control focuses on the )'ilit$ of Costs to Change and on the !a$s of allo!ing or pre enting Cost Change from happening.

3;

4.

When a Cost Change does occur% the Project #anager must document the change and the reason !h$ the change has occurred and% if necessar$% create a Cost Jariance Report. Cost Control is concerned !ith understanding !h$ the Cost Jariances /'oth good and 'ad5 ha e occurred. &he K'&9L 'ehind the ariances allo!s the Project #anager to make appropriate decisions on future Project )ctions. +gnoring the Project Cost Jariances ma$ cause the Project to suffer from Nudget 3hortages% )dditional Risks% or 3cheduling Pro'lems. Cost Control allo!s the Project #anager to deal !ith the pro'lem% find a solution% and then act accordingl$. 3pecificall$% Cost Control includes(
o

Controlling Causes of Cost Change to ensure the changes are actuall$ needed Controlling and :ocumenting Cost Changes to the Cost Naseline as the$ happen Controlling Cost Changes in the Project and their influence on Cost Recording )ppropriate Cost Changes in the Cost Naseline Pre enting Onauthori0ed Changes to the Cost Naseline Communicating the Cost Changes to the Proper 3takeholders Working to Nring and #aintain Costs !ithin an )ccepta'le Range

o o o o o

M;C Gnputs to ProjectEs Cost Control


Cost LaselineP

M;C;C

4.

4-

&he Cost Naseline is the =*pected Cost the Project !ill incur /deser e5. &he Cost Naseline is a tool used to measure Project Performance. Performance FeportsP &hese Reports focus on Project Cost Performance% Project 3cope% and Planned Performance ersus )ctual Performance. &he Reports ma$ ar$ according to 3takeholder ?eeds. C>ange FeJuestsP When Changes to the Project 3cope are re2uested% an anal$sis of the )ssociated Costs to complete the Proposed Change is re2uired. +n some instances% such as remo ing a portion of the Project :eli era'le% a Change Re2uest ma$ reduce the Project Cost. Cost Management PlanP &he Cost #anagement Plan dictates ho! Cost Jariances !ill 'e managed.

M;C;@

M;C;3

M;C;M

M;@ Hools I Hec>niJues of ProjectEs Cost Control


4)2)1

Creating a Cost C&ange Control $9stem(

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42

3ometimes a Project #anager must add /or remo e5 Costs from a Project. &he Cost Change Control 3$stem is a part of the +ntegrated Cost Change Control 3$stem !hich documents the procedures to Re2uest% )ppro e% and incorporate Changes to Project Costs. When a Cost Change enters the 3$stem% there is appropriate Paper!ork% a &racking 3$stem% and Procedures the Project #anager must follo! to o'tain )ppro al on the Proposed Change. &he follo!ing figure demonstrates a &$pical Workflo! for Cost Change )ppro al. +f a Change gets )ppro ed% the Cost Naseline is updated to reflect the )ppro ed Changes. +f a Re2uest gets denied% the denial must 'e documented for future Potential Reference.

5&ree P&ases o( C&ange Management


((rom Prima"era Expedition P&ase 02C 59pe

1).n"estigation
.denti(9 C&ange
C.C RF.H4ns'er $,etc& Bulletin Meeting Minutes P&one Record Project Engineer 5ools to .nitiate C&ange

2)C&ange .mpact
/C 6 &ime5
E$5 RFP PC2 C2R Project Manager 5ools Collect

3)Resol"e C&ange C2 PR2

02AE BL

4ppro"ing 4ut&orit9

) KCost C&ange Control $9stemL tracks and documents Cost C&ange .ssues. &he follo!ing represents some of Cost Change :ocuments( CGC ^ C>ange in Condition FXG ^ FeJuest for Gnformation =SH ^ =SHimate FXP ^ FeJuest Xor Proposal PCO ^ Proposed C>ange Order COF ^ C>ange Order FeJuest CO ^ C>ange Order PFO ^ Proceed Order

M;@;@

Measuring Project PerformanceP

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43

=arned Jalue #anagement /E=M5 is the process of measuring performance of Project Work against Plan to identif$ Jariances. +t can also 'e useful in predicting future ariances and the final Costs )t Completion. +t is a 3$stem of #athematical Aormulas that compares Work Performed against Work Planned and measures the )ctual Cost of the Work Performed. E=M is an important part of Cost Control as it allo!s a Project #anager to predict future ariances from the e*penses to date !ithin the Project. E=M% in regard to Cost #anagement% is concerned !ith the relationships 'et!een three formulas that reflect Project Performance. &he follo!ing figure demonstrates the relation 'et!een these E=M Jalues(

=arned Jalue #anagement measures Project Performance.

M;@;3

Planned Walue (PW)P

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44

Planned Jalue is the Work scheduled and the Nudget authori0ed to accomplish that Work. Example+f a Project has a Nudget of C-..%... and month 6 represents 5.G of the Project Work% the PJ for month 6 is C5.%.... Planned Jalue used to 'e kno!n as the Budget Cost o( +or, $c&eduled /BC+$5.

M;@;M

=arned Walue (=W)P

=arned Jalue is the Ph$sical Work Completed to :ate and the authori0ed Nudget for that Work. Example( +f a Project has a Nudget of C-..%... and the Work Completed to :ate represents 25G of the =ntire Project Work% its =J is C25%.... =arned Jalue used to 'e kno!n as the Budgeted Cost o( +or, Per(ormed /BC+P5.

M;@;D

<ctual Cost (<C)P

)ctual Cost is the actual amount of mone$ the Project has re2uired to date. Example( +f a Project has a Nudget of C-..%... and C35%... has 'een spent on the Project to :ate% the 4C of the Project !ould 'e C35%.... )ctual Cost used to 'e kno!n as 4ctual Cost o( +or, Per(ormed /4C+P5. &hese three alues are ke$ information a'out the Worth of the Project to :ate( &hese alues !ill 'e re isited later.

M;@;N

<dditional PlanningP

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45

Planning is an +terati e Process. &hroughout the Project% there !ill 'e demands for )dditional Planning and an output of Cost Control is one of those demands. Consider a Project that must complete '$ a gi en date and that also has a Nudget. &he 'alance 'et!een the 3chedule and the Cost must 'e kept. &he Project #anager can not assign a large cre! to complete the Project Work if the Nudget !ould not allo! it. &he Project #anager must /through planning5 get as creati e as possi'le to figure out an )pproach to accomplish the Project !ithout e*ceeding the Nudget. &he Nalance 'et!een Cost and 3chedule is an ongoing 'attle /fight5. While it is usuall$ easier to get more time than mone$% this is not al!a$s the case. Consider deadlines that can not mo e% or the Compan$ ma$ face penalties% or a deadline that centers on a tradesho!% or the start of the school $ear.

M;@;7

Vsing ComputersP

Project #anagers can rel$ on Project #anagement 3oft!are /Prima era% #3 Project% etcF5 and 3preadsheet Programs to assist them in calculating 4ctual Costs% Earned =alue% and Planned =alue.

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M;3 Outputs of ProjectEs Cost Control OOO Cost Control Fesults

&he Project #anager al!a$s does the follo!ing( #onitor Cost Jariances and then understand !h$ Jariances ha e occurred.
o

Opdate the Cost Naseline as needed 'ased on )ppro ed Changes.


o

Work !ith the conditions and 3takeholders to pre ent unnecessar$ Changes to the Cost Naseline.
o

Communicate to the )ppropriate 3takeholders to discuss Cost C&anges as the$ occur.


o o

#aintain Costs !ithin an )ccepta'le and )greed Range.

4)3)1

FeUising Cost =stimatesP


)s the Project progresses and more detail come a aila'le% there ma$ 'e a need to update the Cost =stimates. ) re ision to the Cost =stimates re2uires communication !ith the ke$ 3takeholders to share !h$ the Costs !ere re ised.

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4)3)2

Vpdating t>e Cost LudgetP


Opdating the Cost Nudget is slightl$ different than re ising a Cost =stimate. Cost Nudget Opdates allo! the Cost Naseline to 'e changed. &he Cost Naseline is the K%e(ore Project $naps&otL of !hat the &otal Project 3cope and the +ndi idual WN3 Components should cost. 3hould the Project 3cope gro!% as sho!n here% the Cost !ill also likel$ change to 'e a'le to fulfill the ne! 3cope.

+f a Project has a drastic /radical5 changes due to large changes to the Project 3cope /false assumptions% or ne! demands from the Customer5% it ma$ 'e necessar$ to re@'aseline the Project Cost. Re@'aselining is done onl$ in drastic changes. )ll 7istorical +nformation up to the re@'aseline is cleared% and the Project starts fresh.

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4)3)3 4ppl9ing Correcti"e 4ctions&hroughout a Project% the Project #anager !ill appl$ Correcti e )ctions. Correcti e )ctions are an$ actions applied to Project Performance to 'ring the Project 'ack into position !ith the Project Plan. Correcti e )ctions can 'e 3cheduling Changes% a 3hift in Resources% a :ifferent )pproach to completing the Project Work% )n$ )ction to 'ring the Project 'ack to its e*pected le el of Performance;

M;3;M

Preparing for t>e =stimate at CompletionP

&he =stimate at Completion /E4C5 is a h$pothesis of What the &otal Cost of the Project !ill 'e. Nefore the Project 'egins% the Project #anager completes an =stimate for the Project :eli era'les 'ased on the +B$. )s the Project progresses% there !ill 'e in most Projects some ariances 'et!een !hat the Cost =stimate !as and !hat the )ctual Cost is. &he difference 'et!een these =stimates is the =ariance for the :eli era'le. E4C is part of the Earned =alue Management 4pproac& (E=M . We ha e talked a'out =arned Jalue% Planned Jalue% and )ctual Costs earlier. &o complete this discussion on E4C% !e !ell need another formula from the E=M famil$. +t is the CP. /Cost Performance +nde*5 as follo!s.

4"

4;

4)3)1

Calculating t>e Cost Performance GndeS (CPG)P


CP+ is a alue that demonstrates ho! the Project Costs are performing. CP. is a alue that re eals 7o! #uch #one$ the Project is Bosing. 8r% if $ou are an optimist% 7o! #uch #one$ the Project is #aking. Example) Project !ith a CP+ of .;3 is losing se en cents on the :ollar /assuming O3 dollars5. 8r% for the 8ptimist% it is making .;3 cents on the :ollar. &he fact of the matter is% a Project !ith this CP+ Jalue is likel$ to 'e 8 er Nudget 'ecause for e er$ :ollar spent% 7 cents e aporates / anishes5. &he follo!ing sho!s the CP+ in action(

CP. relates the Work $ou ha e accomplished to the amount $ou ha e spent to accomplish it. ) Project !ith a CP. of .;3 means $ou are spending -... for e er$ .;3 Worth of Work )ccomplished. &herefore% a CP. under -... means the Project is Performing Poorl$ against the Plan.

4;

5.

7o!e er% a CP. o er -... does not necessaril$ mean that the Project is Performing Well. +t could mean that =stimates !ere inflated or that e*penditure for e2uipment is late or sitting in accounts pa$a'le and has not $et 'een entered into the Project )ccounting C$cle. +n summar$% +f $ou do not !ant to think of the CP. Jalue as making or losing mone$% that is fine too. >ust kno! the CP. Jalue should 'e as close to -... as possi'le and do not cele'rate too loudl$ if the CP. is greater than -.... ) CP. greater than -... ma$ just reflect Poor =stimates rather than an 8 er@ Performing Project.

5.

5-

M;3;N

Calculating =stimate at Completion (=<C)P

&here are man$ approaches to calculating the E4C(

M;3;7

=Speriencing =Spected ConditionsP

Estimate 4t Completion I Budget at Completion HCost Per(ormance .ndex E4CIB4CHCP. Example+f the Project,s B4C is C575%... and the CP. is .;-% the E4C for this Project is C63-%"6". &hose ; cents on e er$ dollar sure do add upQ

M;3;K

<ccounting for Xlawed (fault9) =stimatesP


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+magine a Project to +nstall a ?e! 8perating 3$stem on -%... Workstations. 8ne of the assumptions the Project &eam made !as that each Workstation had the correct hard!are to install the 8perating 3$stem automaticall$. )s it turns out% this assumption !as !rong% and no! the Project &eam must change their approach to installing the 8perating 3$stem. =Sam Qatc> Necause the assumption to install the 8perating 3$stem !as fla!ed /defecti e5% a ne! =stimate &o Complete the Project is needed. &his ne! =stimate to Complete the Work is kno!n as the KEstimate to Complete (E5C L. &he E5C represents ho! much more mone$ is needed to complete the Project Work% and its formula is( E5CIE4C<4C. +n this scenario of a fla!ed /imperfect5 assumption% the Project #anager !ill use a slightl$ different formula to predict the E4C( E4C I 4C KE5C Example+f the Project,s 8riginal B4C !as C-..%... and the Project &eam had spent C2.%... 'efore reali0ing the Project )ssumption !as fla!ed /fault$5% the$ ha e to create a ne! E5C the remaining !ork. Bet,s pretend /imagine5 the E5C the Project &eam arri ed at !as C-75%.... &he formula E4C I 4CKE5C E4C I C2.%...HC-75%... I C-;5%.... &his is 'ecause the Project had spent C2.%...% and C-75%... more is needed to complete the Work.

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M;3;9

<ccounting for <nomaliesP

3ometimes a Project suffers from )nomalies. Exampleo

Consider a Project to construct a KWooden Aence )round a Barge NuildingL. 8ne of the Project &eam #em'ers made a mistake !hile installing the Wooden Aence and re erses the face of the Aencing #aterial. +n other !ords% the #aterial for the outside of the Aence faces the !rong direction. &he Project #anager no! has to consume )dditional &ime to remo e the Aence #aterial% correct the pro'lem% and replace an$ Wood that ma$ ha e 'een damaged in the incorrect +nstallation. &his anomal$ likel$ !ould not happen again% 'ut it !ill add Costs to the Project. Aor these instances% !hen e ents happen 'ut the Project #anager doesn,t e*pect similar e ents to happen again% the E4C Aormula should 'e used( E4CI4CKB4C<E=. 3ee page 4"

Bet,s tr$ this out !ith our KAencing ProjectL(


&he Project,s 4C so far !as C7%... &he B4C !as C24%5.. &he E= is onl$ C2%45.% as the Project has 'arel$ /just5 started. /E= I NComp J B4C5 &herefore% E4CIG>D@@@KG24D1@@<G2D41@ I C2;%.5. <<<< a costl9 mista,e.

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M;3;CA Closing Out t>e ProjectP


)s part of Project Closeout% P&ase Closeout% or e en Project Cancellation% there must 'e +dentified Processes and Procedures on ho! to shut do!n the Project. ) formal )uditor ma$ 'e called for to re ie! the 5ime% Costs% Materials% and Budget of the Project. +n some instances% a re ie! ma$ happen !ith #anagement or the Project 3ponsor to account for the Project Budget and ho! !ell Cost Control !as managed !ithin the Project.

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M;3;CC Vpdating sessons searnedP


)s part of Cost Control% the Project #anager should update the *essons *earned document to reflect the decisions 'ehind the actions taken. For exampleD t&e Project Manager s&ould identi(9C&anges to Cost Baseline and !h$ the$ !ere )ppro ed Correcti"e 4ctions and !h$ the$ !ere +mplemented Cost Control C&allenges and .ssues and ho! the$ !ere Resol ed 2t&er Cost Control .n(ormation that ma$ 'e 'eneficial for other Projects

o o o o

Summar9
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56

&here are se eral factors that affect the Project#s Cost(


o o o

&he Expense o( *a%or to complete the Project% &he Expense o( Materials needed to complete the Project% and &he Expense o( t&e E!uipments needed to complete a Project.

&hese e*penses must 'e estimated% planned for% and monitored for a Project to finish on Nudget. #anagement and Customers !ant to kno! ho! much a Project is going to cost so the$ can determine if the Project is !orth doing% if the Project :eli era'le /outputs5 !ill 'e !orth the Cost% and if the Project !ill 'e Profita'le. &he =stimates for Project Costs can come in se eral forms(
o

$imilar Estimating- Oses similar historical information to predict the cost of the current project. Parametric Modeling- Oses a parameter% such as cost per metric ton% to predict project costs. Bottom<Up Estimating- 3tarts from 0ero and adds the e*penses from 'ottom@up. 5op<0o'n Estimating- Oses a similar Project as a Cost Naseline and factors in current project conditions toR predict costs. &he Resources needed to complete a Project ma$ 'e one of the 'iggest e*penses in the Project,s Nudget. &heR )cti ities the Resources complete must 'e !orth$ of the Resource,s &ime. +n other !ords% the Project #anager does not !ant to assign a C-25Dhr =ngineer to filing )cti it$ that a C-5Dhr )dministrati e )ssistant is 2ualified to do. )ccurate )ssignment of Project Resources to Project )cti ities helps pre ent !aste. Projects also &a"e (our di((erent ,inds o( Cost-

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57

:irect CostsP &hese are costs that consumed directl$ in the project and cannot 'e shared !ith operations or other Projects. Waria8le CostsP Costs that ar$ depending on the conditions !ithin the Project. XiSed CostsP Costs that remain the same throughout the Project. Gndirect Costs &hese costs can 'e shared across multiple projects that use the same Resources @@@such as &raining Room or =2uipments.

re9 Herms
57

5"

=arned Walue (=W)P < met>od of measuring project performance 89 comparing t>e amount of worR planned wit> t>at actuall9 accomplis>ed? in order to determine if cost and sc>edule performance are as planned; Planned Walue (PW)

<ctual Cost (<C) Ludget <t Completion (L<C) =stimate <t Completion (=<C) Sc>edule Wariance (SW) Cost Wariance (CW) Wariance <t Completion (W<C) Fesponsi8ilit9 <ssignment MatriS (F<M) o F<M OOO H>e integration of t>e QLS and t>e OLS (Organitational LreaRdown Structure); o Proper creation of t>e F<M results from locating t>e intersection of t>e OLS unit t>at is assigned responsi8ilit9 for t>e worR and t>e specific QLS element t>at defines t>e worR to 8e performed;
o

=SampleP QLS =lement P C;C Xrame OLS =lementPXrame S>op F<MP Mr; G; M; Smart LudgetP uC@D?AAA Sc>eduleP Ban v Bun AK

5"

5;

Performance Measurement Laseline (PML) Sc>edule Wariance (SW)


o Comparing t>e =W (t>e amount originall9 8udgeted for t>e worR t>at >as 8een completed or inOprogress) to t>e PW (t>e amount 8udgeted for t>e worR t>at was planned to >aUe 8een accomplis>ed) o SW ^ =W v PW o < vUe result means less worR >as 8een performed t>an was planned;
o

SW =SampleP PW ^ uM@?AAA =W ^ u3K?AAA <C ^ uMK?AAA SW ^ =W v PW ^ u3K?AAA O uM@?AAA ^ O uM?AAA SWw ^ SW x PW ^ OuM?AAA x uM@?AAA ^ OA;A9D ^ O 9;Dw

5;

6.

Cost Wariance (CW)P


o Comparing t>e amount originall9 8udgeted for t>e worR completed or in progress (=W) to t>e actual costs of t>at worR (<W); H>at isP CW ^ =W v <C
o

< vUe CW means more dollars were spent to accomplis> t>e worR t>an was planned; Cost Wariance =SampleP PW ^ uM@?AAA =W ^ u3K?AAA <C ^ uMK?AAA CW ^ =W v <C ^ u3K;AAA O uMK?AAA ^ OuCA?AAA CWw ^ CW x =W ^ OuCA?AAA x u3K?AAA ^ O@Nw

6.

6-

Cost Performance GndicesP


o Cost Performance GndeS (CPG) ^ =W x <C
o

CPG =SampleP
PW ^ uM@?AAA =W ^ u3K?AAA <C ^ uMK?AAA CPG ^ =W x <C ^ u3K?AAA x uMK?AAA ^ A;79

H>at is uA;79 wort> of worR was actuall9 done for eac> uC;AA spent; o Sc>edule Performance GndeS (SPG) ^ =W x PW
o

SPG =SampleP
PW ^ uM@?AAA =W ^ u3K?AAA <C ^ uMK?AAA SPG ^ =W x PW ^ u3K?AAA x uM@?AAA ^ A;9A

H>at is uA;9A wort> of worR >as 8een done for eac> uC;AA wort> of worR t>at was planned to 8e done;

=stimate <t Completion (=<C)P


o <fter Wariance <nal9sis? t>e estimated cost at completion is determined
o

=<C =SampleP

6-

62

L<C ^ uKA?AAA CPG ^ A;79 =<C ^ L<C x CPG ^ uKA?AAA x A;79 ^ u@AC?@ND

Wariance <t Completion (W<C)P


o

W<C =SampleP
L<C ^ uKA?AAA

=<C ^ u@AC?@ND W<C u@C?@ND Lased on past performance? project planned 8udget will eSceed 89 u@C?@ND;

^ L<C v =<C ^ uKA?AAA O uCAC?@ND ^

Ho Complete Performance GndeS (HCPG)P


o QorR Femaining x Cost Femaining o HCPG ^ (L<C v =W) x (=<C v <C) ^ (uKA?AAA O u3K?AAA) x (uCAC?AAA O uMK?AAA) ^ uM@?AAA x uD3?AAA ^ C;M

=SampleP PW
CAA C@D

=W
C@D CAA

<C
7D CAA

=<C
NAA KDA
62

L<C
DNA KAA

63

7D CAA

7D 7D

7D CAA

7AA D7A

DNA NAA

Pro8lemP
o yiUenP L<C ^ uMAr =W ^ u@Ar PW ^ u@Kr <C ^ u@Nr o CalculateP w of QorR Sc>eduled w of Ludget Spent w of QorR <ccomplis>ed Cost Wariance Sc>edule Wariance

SolutionP
w of QorR Sc>eduled ^ PW x L<C ^ u@Kr x uMAr ^ 7Aw w of Ludget Spent ^ <C x L<C ^ u@Nr x uMAr ^ ND w of QorR <ccomplis>ed ^ =W x L<C ^ u@Ar x uMAr

63

64

^ A;DA Cost Wariance u@Nr ^ =W v <C ^ u@Ar O ^ OuNr Sc>edule Wariance ^ =W v PW ^ u@Ar O u@Kr ^ O uKr

Self Hest (Feference @)


C; Which one of the follo!ing 'est descri'es analogous estimatingS A. B. C. D.
@;

Regression analysis Bottom-up estimating *ess accurate More accurate

1ou are the project manager for <7< Project. 1ou are a'out to create the cost estimates for the project. Which input to this process !ill help $ou the mostS A. B. C. D. Parametric modeling +B$ Project scope Requirements document

3;

1ou are the project manager for the >T7 Project. 1ou ha e elected to use parametric modeling in $our cost estimating for the project. Which one of the follo!ing is an e*ample of parametric modelingS

64

65

A. B. C. D.
M;

G>1@ per ton Historical information from a similar project Estimates uilt ottom-up ased on t!e "B# Estimates ased on top-do$n udgeting

1ou are the project manager for a ne! technolog$ implementation project. #anagement has re2uested that $our estimates 'e as e*act as possi'le. Which one of the follo!ing methods of estimating !ill pro ide the most accurate estimateS A. B. C. D. %op-do$n estimating %op-do$n udgeting Bottom<up estimating Parametric modeling

D;

1our compan$ has 'een hired to install the tile in -%... hotel rooms. )ll rooms !ill 'e identical in nature and !ill re2uire the same amount of materials. 1ou calculate the time to install the tile in each hotel room as si* hours. &he cost for la'or for each room is calculated at C7... 1our Project 3ponsor disagrees !ith $our la'or estimate. Wh$S A. B. C. D. &ou !a'en(t completed one !otel room yet so you don(t )no$ !o$ long t!e $or) $ill actually ta)e. &ou !a'e not factored in all of t!e effort applied to t!e $or). &ou !a'e not considered t!e la$ of diminis!ing returns. Lou &a"e not considered t&e learning cur"e)

N;

1ou are the project manager for a construction project to 'uild -7 ca'ins. )ll of the ca'ins !ill 'e identical in nature. &he contract for the project is set at a fi*ed cost% the incenti e 'eing the faster the project !ork is completed% the more the profita'le the jo'. #anagement has re2uested that $ou stud$ the !ork method to determine a faster% less costl$% and 'etter method to complete the project. &his is an e*ample of !hich one of the follo!ingS A. B. C. D. %ime constraint #c!edule constraint =alue anal9sis *earning cur'e
65

66

7;

1ou are the project manager for a technical implementation project. &he customer has re2uested that $ou factor in the after@the@project costs% such as maintenance and ser ice. &his is an e*ample of !hich one of the follo!ingS A. B. C. D. *i(e c9cle costs 3cope creep Project spin off 8perations

(5&e a(ter<t&e<project costs are ,no'n as t&e li(e c9cle cost

K; Which one of the follo!ing pro ides the least accurate in estimatingS A. N. C. :. Roug& order o( magnitude Nudget estimate :efiniti e estimate WN3 estimate

(5&e roug& order o( magnitude is t&e least accurate approac&D as it ma9 "ar9 (rom <21N to K>1N)

9; Which one of the follo!ing is trueS ). B. C. :.


CA; 1ou

&he cost management plan controls ho! change management affects the N)C. 5&e cost management plan controls &o' cost "ariances 'ill %e managed) &he cost management plan controls ho! the project manager ma$ update the cost estimates. &he cost management plan controls ho! the N)C ma$ 'e adjusted

ha e just started a project for a manufacturer. Project team mem'ers report the$ are 3. percent done !ith the project. 1ou agree !ith their completion status 'ut do not change an$ of the progress in $our report to the customer. &his is an e*ample of !hich one of the follo!ingS ). B. C. :. 5.D5. rule @H1@@ rule Percent Complete Rule Poor project management

(5&is completion met&od allo's (or @Ncredit on an acti"it9 until it is 1@@N complete
CC; 1ou

and $our project team are a'out to enter a meeting to determine project costs. 1ou ha e elected to use 'ottom@up estimating and !ill 'ase
66

67

$our estimates on the WN3. Which one of the follo!ing is not an attri'ute of 'ottom@up estimatingS ). N. C. D.
C@; What

People doing the !ork create the estimates. Creates a more accurate estimate. #ore e*pensi e to do than other methods. *ess expensi"e to do t&an ot&er met&ods)

is the present alue if the organi0ation e*pects to make C-..%... four $ears from no! and the annual interest rate is 6GS ). B. C. :. C-..%... G1;D@@@ C25%... Uero

OP= I F=H(1KR n PF=I(uture "alueQ RIinterest rateQ nInum%er o( time periodsRS

C3; 1ou

are the project manager for the construction of a ne! hotel. Nefore $ou 'egin the cost 'udgeting process% !hat is neededS A. N. C. :. Costs estimates and project sc&edule Cost estimates and supporting detail =)C and N)C Parametric model used to arri e at the costs su'mitted

(BD CD & 0 are all not inputs to cost %udgeting


CM; 1ou

are the project manager of the #?> Project. 1our project is falling 'ehind schedule and $ou ha e alread$ spent C-3.%... of $our C-5.%... 'udget. What do $ou call the C-3.%...S ). N. C. :. Planned alue Present alue $un, costs Capital e*penditure

($un, Costs are monies t&at &a"e %een spent


CD; 1ou

are the project manager of the >7: Project. 1our project !ill cost $our organi0ation C25.%... to complete o er the ne*t eight months. 8nce the project is completed% the deli era'les !ill 'egin earning the compan$ C3%5.. per month. &he time to reco er the costs of the project is !hich one of the follo!ingS

67

6"

). B. C. :.
CN; 1ou

?ot enough information to kno! =ight months 72 months 5 $ears

(5&is is calculated %9 di"iding t&e R2. o( G3D1@@ per mont& into t&e project cost

are the project manager for the consulting compan$. 1our compan$ has t!o possi'le projects to manage% 'ut the$ can onl$ choose one. Project T>7 is !orth C-7%...% !hile Project ):3 is !orth C22%.... #anagement elects to choose Project ):3. &he opportunit$ cost of this choice is !hich one of the follo!ingS ). B. C. :. C5%... G1>D@@@ C22%... Uero% as project ):3 is !orth more than Project T>7

(5&e opportunit9 cost is t&e amount o( t&e project t&at 'as not c&osen

C7; 1ou

are the project manager for the C3R &raining Project% and 2-%... customer ser ice reps /sales representati es5 are in ited to attend the training session. )ttendance is optional. 1ou ha e calculated the costs of the training facilit$% 'ut the !ork'ook e*pense depends on ho! man$ students register to the class. Aor e er$ 5%... !ork'ooks created the cost is reduced a percentage of the original printing cost. &he !ork'ook e*pense is an e*ample of !hich one of the follo!ingS ). N. C. :. Ai*ed costs Parametric costs =aria%le costs +ndirect costs

(5&e more students t&at register to ta,e t&e class t&e more t&e cost o( t&e %oo,s 'ill %e
CK; 1ou

are the project manager of a construction project scheduled to last 24 months. 1ou ha e elected to rent a piece of e2uipment for the duration of a project% e en though $ou !ill need the e2uipment onl$ periodicall$ throughout the project. &he costs of the e2uipment rental per month are C";.. &his is an e*ample of VVVVVVVVVVVVVVVV. A. N. C. :. Fixed costs Parametric costs Jaria'le costs +ndirect costs
6"

6;

C9; 1ou

are the project manager for the 7ard!are +n entor$ Project. 1ou ha e a piece of e2uipment that !as purchased recentl$ for C-.%... and is e*pected to last fi e $ears in production. )t the end of the fi e $ears the e*pected !orth of the e2uipment is C-%.... Osing straight@line deprecation% !hat is the amount that can 'e !ritten off each $earS ). N. C. :. Uero C-%... G1D;@@ C2%...

P5&e straig&t<line depreciation ta,es t&e purc&ase "alue o( t&e itemD minus t&e sal"age price o( t&e itemD di"ided %9 t&e num%er o( time periods) 5&at is (G1@D@@@ < G1D@@@ H1 I G1D;@@ per 9ear)R

@A; 1ou

are the project manager of the BT< Project. &he project has a 'udget of C2;.%... and is e*pected to last 3 $ears. &he project is no! -.G complete and is on schedule. What is the N)CS ). B) C. :. C2;%... G2?@D@@@ C;6%666 C;%666

(5&e B4C is t&e %udget at completionD '&ic& is G2?@D@@@


@C; 1our

project has a 'udget of C-3.%... and is e*pected to last -. months% !ith the !ork and 'udget spread e enl$ across all months. &he project is no! in month 3% the !ork is on schedule% 'ut $ou ha e spent C65%... of the project 'udget. What is $our arianceS ). N. C) :. C65%... C3;%... G2:D@@@ C64%;;;

(5&is is calculated %9 su%tracting t&e actual costs o( G:1D@@@ (rom t&e earned "alue o( G3?D@@@) E= is calculated %9 ta,ing t&e 3@N completion o( t&e project against t&e B4C) 5&e project is considered to %e 3@N complete %ecause it is slated (sc&eduled (or 1@ mont&sD is currentl9 in mont& 3D and is on sc&edule)
@@; 1ou

are the project manager of the Carpet +nstallation Project for ne! 'uilding. 1our N)C is C6..%.... 1ou are no! 4.G done !ith the
6;

7.

project% though $our plan called for $ou to 'e 45G done !ith the !ork at this time. What is $our earned alueS 4) N. C. :. G24@D@@@ C27.%... C3.%... SC3.%...

/&he earned alue is calculated '$ multipl$ing the G of completion% 4.G% '$ the N)C% !hich is G6..%...% for a alue of C24.%....5

@3; 1ou

are the project manager of the Carpet +nstallation Project for ne! 'uilding. 1our N)C is C6..%.... 1ou ha e spent C27.%... of $our 'udget. 1ou are no! 4.G done !ith the project% though $our plan called for $ou to 'e 45G done !ith the !ork at this time. What is $our CP+S ). N. C) :. -.. "; );? .7;

/&he =J of C24.%... is di ided '$ the )C of C27.%... for a alue of .";.5


@M; 1ou

are the project manager for the Aacilit$ +nstallation Project. &he project calls for -5.. units to 'e installed into a ne! 'ase'all stadium. 1our team !ants to kno! !h$ $ou ha e not assigned the same amount of time for the last ".. units as $ou had for the first 5.. units. 1ou tell them it is 'ecause of the learning cur e. Which one of the follo!ing 'est descri'es this theor$S ). B) C. Production increases as !orkers 'ecome more efficient !ith the installation procedure. E((icienc9 increases as 'or,ers %ecome more (amiliar 'it& t&e installation procedure) Costs decrease as !orkers complete more of the installation procedure.

7.

7-

:.

&ime decreases as !orkers complete more of the installation procedure in the final phases of a project.

@D; 8f the follo!ing% !hich one is the most relia'le source of information for estimating project costsS 4) N. C. :. /istorical in(ormation (rom a recentl9 completed project )n 3#=,s opinion Recollections of team mem'ers that ha e !orked on similar projects Jendor,s !hite papers

Practical Part

7-

72

$cenario 1

&he Project 5eam has determined the 59pes o( $,ills /Roles5 re2uired for completing the Project 4cti"ities. &he Project 5eam has also estimated the e((ort needed to accomplish the !ork. 3pecific Resources ha e not $et 'een assigned to the Project. Roles can 'e used as temporar$ placeholders for future Resource 4ssignments. ) Role represents a $,ill or 6o% defined in the 4pplication. Jie! the Roles 0ictionar9 to 'ecome familiar !ith the $,ill $ets that ha e 'een defined.

Resource Management is di"ided into 3 distincti"e parts-.

0e(ining Resources in t&e Resource Pool:efining Resources has alread$ 'een completed '$ the Project 2((ice. 8nl$ specific information a'out specific Resources that ha e 'een defined has to re ie! at the Corporation.

2.

4ssigning Resources to 4cti"ities-

72

73

Nefore )ssigning Resources% the Project Manager must negotiate !ith the Resource Manager a'out the Resources 4"aila%ilit9. 8nce the negotiation has occurred% it is the time to assign the Resources to the appropriate 4cti"ities.
3.

4nal93ing Resource 4llocation)fter Resource )ssignment% !e can start anal$0ing Resource 4llocation. +n this case% the Resources 2"er< 4llocation /Resources that are assigned to more !ork than the$ can perform5 must 'e resol ed. :uring Resource )llocation )nal$sis% a re ie! of the Projects# Cost has to make to ensure that the Project is !ithin Budgetar9 Constraints.

0e(ining Roles & Resources-

Besson -3% &raining #aterial% Course -.2 PR+#)J=R)

73

74

4ssigning Roles-

Besson -4% &raining #aterial% Course -.2 PR+#)J=R)

74

75

4ssigning Resources & Costs-

Besson -5% &raining #aterial% Course -.2 PR+#)J=R)

75

76

4nal93ing Resources-

Besson -6% &raining #aterial% Course -.2 PR+#)J=R)

76

77

$cenario 2

Project Manager is responsi'le for e aluating the Project against the triple constraints-. 2. 3.

$c&edule% Resources% and Cost.

7e is also responsi'le to ensure that the Project Re!uirements as outlined in the $cope 0ocument are 'eing met.

+nitiall$% the Project Manager should erif$ that the Project is scheduled to finish on time. +f the Project dela$s% he has to make adjustments to the Project Plan '$ anal$0ing the Resources and resol e the o"er<allocation. 8nce the $c&edule 6 Resources 4djustments ha e 'een made% alidate the Project#s Cost. &he Project,s Cost ma$ ha e changes due to the )djustments of Resources. 8nce the Project is optimi3ed% 'aseline the Project. Baseline is a cop$ of a Project that can 'e used to compare against the Current Project to e aluate progress.

77

7"

8nce the Naseline has 'een created% mo e to the Execution & Control Process. .n(ormation must 'e distri'uted to the 5eem Mem%ers performing the !ork on the Project. &hen the +or, 4ccomplis&ed must 'e reported 'ack to the Project Manager. &he Project #anager gathers information from the 5eem Mem%ers and enters the data directl$ into Prima"era to reflect the progress in the Project up to the 0ata 0ate.

2ptimi3ing t&e Project Plan-

Besson -7% &raining #aterial% Course -.2 PR+#)J=R)

7"

7;

Baselining t&e Project Plan-

Besson -"% &raining #aterial% Course -.2 PR+#)J=R)

7;

".

Project Execution & Control-

Besson -;% &raining #aterial% Course -.2 PR+#)J=R)

".

"-

$cenario 3

)s a Project Manager% $ou must prepare for a monthl$ Project $tatus Meeting% !here Project Engineers report out on the progress of their !orks. &he Project Manager needs to create a num'er of reports to distri'ute at the meeting to the Project Executi"e Committee.

"-

"2

Reporting Per(ormance-

Besson 2.% &raining #aterial% Course -.2 PR+#)J=R)

"2

"3

CASE STUDY
Building 4 2nd Floor 2( 4 =illa

Bac,ground1) Lou &a"e %een assigned t&e responsi%ilit9 (or sc&eduling and monitoring t&e progress o( %uilding t&e 2nd (loor o( a "illa)
2. 3.

Major Engineering 0esign tas,s &a"e %een completed)

5&e project consists o( 2? major acti"ities) 5&e (ollo'ing list o( project acti"ities includes t&e %asic in(ormation '&ic& 9ou need to sc&edule and trac, t&e principle acti"ities in t&e project) +&ile 9ou are in c&arge o( t&e sc&eduling and implementing o( t&e o"erall projectD 9ou 'ill recei"e mont&l9 reports o( project implementation progress (rom t&e construction site super"isors)
4.

1) 2n t&e %asis o( mont&l9 reports (rom t&e project siteD 9ou 'ill monitor t&e progress o( project execution)
"3

"4

.n carr9ing out 9our assignmentD 9ou are a'are t&at t&e 2+AER is anxious to open t&e project as earl9 as possi%le)
6.

5&is Case $tud9 'ill co"er t&e (ollo'ing points-. 2.

Creating Project Calendar(s D Creating +or, Brea,do'n $tructure (+B$ 'it& Responsi%le Managers 4ssignment) Entering project 4cti"ities 'it& t&eir 0uration and Relations&ips) $c&eduling & 4ssigning Constraints) Esta%lis&ing Project & 4cti"it9 Codes '&ic& ma9 determine Project TD Project ManagerD Responsi%ilitiesD *ocationsD 4reaD P&asesD MilestonesD etcU) Esta%lis&ing Roles & Resources 0ictionaries and 4ssign t&em to 4cti"ities as needed to execute t&e Project '&ic& ma9 %e *a%orD MaterialD Aonla%or (E!uipments D and Mone9 (Expenses ) Use t&e Cost 4ccounts (eature to determine e"er9 item cost in t&e Project) 4nal93e Project ResourcesD 2ptimi3e t&e Project PlanD Baselining t&e Project PlanD ExecuteD and Control (Update ) Producing di((erent set o( ReportsD (or example-

3.

4. 5.

6.

7.

".

;.

"4

"5

) 5a%ular $c&edulesD ) Bar C&artsD ) 5ime<$caled *ogic 0iagramsD ) Project Aet'or, 0iagramsD ) Resource and Cost Reports)) Project *a%orD Aonla%or(E!uipments D MaterialD and Expenses CostsD )) Project Cas&<Flo'D etcU)
-.

Project#s Calendar(s -

Create a Project called CaseV@1 <<< Creating Calendar called 7Case Cal8 Planning Unit- 0a9 +or,da9sH'ee,- 1 +ee, $tart on- $unda9 Project $tart- @1<64A<11 /olida9so o o o o o o

@><64A<11 21<64A<11D (2;<64A))31<64A & Exception 3@<64A))31<64A<11 @4<4PR )) @?<4PR & Exception @><4PR))@?<4PR<11 @1<M4L<11 1;<6UA<11 23<6U*<11 @:<2C5<11

/int

Calendar is a Elo%al or Project 0ata) Create a Ae' Elo%al Calendar named (or exampleD Case Cal <<<<<< 1 0H+ P$UAR 'it& /olida9s)

"5

"6

5&ere are no Repeated /olida9s) Exception a((ects onl9 on t&e +ee,ends da9s or t&e &olida9s (rom an 7.n&erited /olida9s & Exceptions (rom Elo%al Calendar8)

5o assign t&e created calendar to t&e projecto

/ig&lig&t t&e Project in t&e 7Projects8 'indo')

o .n t&e Project 0etailsD clic, 70e(ault8 ta%) o 4ssign t&e created Calendar (rom t&e 7Calendar8 (ield)

2.

Creating +B$ o( t&e Project-

Bac,ground5&e Project $tructure &as %een de(ined (or t&is Project) +e no' need to add t&e +B$ elements and assign Responsi%le Managers) &he Project !ill 'e named CaseV@2 W Creating +B$) Arom KProjectsL !indo!% use KEdit @@ Cop9HPasteL 6 change the name of the ne! ProjectF. +B$ Code CaseV@2)4dmin Case V@2)Prep Case V@2)Concrete Case V@2)Concrete)Columns Case V@2)Concrete)$la%$tairs Case V@2)Bloc,+or,ing Case V@2)+ooden+or,s Case V@2)Electrical Case V@2)$anitar9 Case V@2).solation Case V@2).ntPlastering +B$ Aame Project 4dministrator Preparation (or t&e Project & 4nal9sis Concrete +or,s Columns $la% and $tairs Bloc, +or,ing +ooden +or,s Electrical +or,s $anitar9 +or,s .solation +or,s .nterior Plastering Responsi%le Manager (2B$

.APV2B$

"6

"7

Case V@2)Painting Case V@2)FrontPlastering Case V@2)Flooring Case V@2)Ceramic Case V@2)/2

Painting +or,s Frontal Plastering (Facades Flooring +or,s Ceramic +or,s /and 2"er

/int

&o make K.ndentH2utdentL )cti e( o Click K*a9out 2ption BarHEroup and $ort B9H+B$L o Check the K.0HCodeL 'o*.

"7

""

""

";

3.

Creating Project#s Codes(Enterprise H Project CodesU

&he Project !ill 'e named CaseV@3 W Creating Project Codes) Ose KEdit@@Cop9HPasteL 6 change the name of the ne! ProjectF.

Project Code Project T Project *ocation Project Manager Project Region

Code =alue Case 4R /es&am /eliopolis

Code 0escription Building 2nd Floor o( a /ouse 4ir Port Road /es&am Mosta(a /eliopolisD Cairo

4 Project Code =alue can %e associated 'it& one User) 5o Create Project Codes Project Codes is a Elo%al 0ata)

Create Ae' Project Codes /ierarc&9 & Elo%all9 (rom 7EnterpriseHProject Codes8D or 4ssign Project Code =alues to t&e existing Project Codes (our case )
o

$oD 4ssign Project Codes to t&e Project (Clic, 7Projects8 & use 7Codes8 ta% (rom 7Project 0etails8 )

";

;.

;.

;-

4) 4dding 4cti"ities
5&e +B$ and Project#s Calendar &a"e %een de(ined and appro"ed (or t&e Building o( 2nd Floor in a =illa) 5&e next step is to (inis& adding 4cti"ities to t&e Project) Lou 'ill also add a Aote%oo, topic and $teps to per(orm $9stem Re!uirements 4nal9sis) Project !ill 'e named CaseV@4 W 4dding 4cti"ities) Ose KCop9HPasteL 6 change the name of the ne! ProjectF. /int

4ll o( t&e (ollo'ing 4cti"ities are o( 0uration 59pe 7Fixed 0uration & Units8 and 74cti"it9 59pe- 5as, 0ependent8 except (or t&e 1st 4cti"it9 (40M2 '&ic& is o( 4cti"it9 59pe 7*e"el o( E((ort8 P0 I Planned 0uration +B$ Code 4cti"it9 .0
40M2 PRP2

JJ I *e"el o( E((ort 59pe 4cti"it9 Aame


Project 4dministration

P0
JJ

$)Ao)
1 2

CaseV@4)4dmn CaseV@4)Prep

Preparing Project Re!uirements & 1@d 4nal9sis k0]#$ \&z# {3|}(#$ Form+or, (Columns 5&0,m# 56!}a#$ &~ !0,$) R)F)5 (Columns &&"#$ 6 &0,m# Cast<in<place Concrete (Columns Y"1b0#$ Yp! .'#$ l 5&0,m# Curing 5ime (or Columns 5&0,m# Y}#!]0#$ !0,$ Form+or, ($la%H$tairs 2 m# Y"1b0#$ 56!}a#$ &~ i#b#$R)F)5 ($la%H$tairs &&"#$ 6 2 m# i#b#$Cast<in<Place ($la%H$tairs Y"1b0#$ Yp! .'#$ l i#b#$- 2 m#
;-

C222C1@@ C222C2@@

>d 4d 3d 1d 1@d >d 3d

3 4 1 : > ; ?

CaseV@4) Concrete) Columns CaseV@4) Concrete) $la%$tairs

C222C3@@ C222C4@@ C222$1@@ C222$2@@ C222$3@@

;2

C222$4@@

CaseV@4) Bloc,+or,ing

B*22 1@@ B*22 2@@ +202 1@@

CaseV<@4) +ooden+or,s
+202 2@@ E*E2 1@@

Curing 5ime & Remo"al o( Form+or, (or $la%H$tairs 5&/#$ Y}#!]0#$ !0,$ Y3z/'#$ Bloc, +or,ing t&ic, 21 cm i @D 0 np!z !0, Bloc, +or,ing t&ic, 12 cm i C@ 0 np!z !0, +indo's & 0oors $u%<Frames .nstallation $`*f$ `1 3.h 3*!z/#$+indo's & 0oors .nstallation 3*!z/#$- $`*f$ 3.h Electrical Conduits n \!*.|4#$ .3 $` 3.h $`"#$ Electrical +ires .3 $`0#$ n 1b#$ !7$ Y3*.|4#$ Electrical $'itc&es *ig&ting Fix) Y3!|p Y3*.| +!z3.h $anitar9 Pipes .3 $` 3.h .e{#$ Pota%le +ater Piping Circuits ;; ./#$ .3 $` 3.h Y!z )) .nstall o( $anitar9 Fixtures ;; +!3ga"#$- $`f$ 3.h Y!z )) Bat&rooms Proo(ing +!!0"1# {]#$ !0,$ .nternal Plastering (or +alls & $la%s $`"1# n1$&#$ !3z#$ 2b#$5R45X2 Plastering &eig&t 2m ! 57!,;; %@ !gh6!* kg +$.00#!* `4 Painting Preparation *a9ers +!p!e&1# Yp!z#$ !0,$ Painting *a9ers !0,$ Y3!|a#$ +!p!e&#$

1@d

1@

12d 4d >d

11 12 13

1@d >d

14 11

CaseV@4) Electrical

E*E2 2@@ E*E2 3@@ $4A2 1@@ $4A2 2@@

14d 14d 2@d ?d :d 2d

1: 1> 1; 1? 2@ 21

CaseV@4)$anitar9
$4A2 3@@

CaseV@4) .solation

.$22 1@@

.AP2 1@@

2@d ;d :d 12d

22 23 24 21

CaseV@4) .ntPlastering

.AP2 2@@ P4.2 1@@

CaseV@4)Painting

P4.2 2@@

CaseV@4)

FRP2 1@@

Frontal Plastering +!|o$`#$ !3* 21d

2:

;2

;3

FrontPlastering CaseV@4)Flooring CaseV@4)Ceramic CaseV@4)/2


F*22 1@@ CER2 1@@ EA02 Mosaic 5iles dim 4@J4@ cm 1@d MAMA * 3.h i Ceramic +or,ing 4d $`"1# 3$.b#$ 3.h 2 f$/and 2"er i31bh 1@d np!#$ 6-&#$ 2> 2; 2?

)dd a Purpose Aote%oo, topic to )cti it$ KPRP28 as follo!s( A ssign KCustomer Pro%lemL and add the follo!ing ?ote'ook( ) 7Participate in 4nal93ing User .nput pro"ided %9 t&e 4c!uirer to gain an understanding o( User Aeeds) 5&is input ma9 ta,e t&e (orm o( Aeed $tatementsD $ur"e9sD .nter"ie'sD or ot&er User Feed%ac,.L
o

4dd t&e (ollo'ing $teps to 4cti"it9 PRP2o

+dentif$ Re2uired 3tates and #odes

o :efine 3$stem Re2uirements o Perform Re2uirements &racing o :ocument Re2uirements

5.

Creating 4cti"ities Relations&ipJ


;3

;4

Bac,ground?o! that the )cti ities ha e 'een entered% Relationships need to 'e esta'lished. Ose the information from the ta'le 'elo! to create relationships 'et!een the )cti ities. &he Project !ill 'e named Case V@1 W Creating Relations&ips)

4cti"it9 .0
40M2J B*22 1@@ B*22 2@@ CER2 1@@ C222C1@@ C222C2@@ C222C3@@ C222C4@@ C222$1@@ C222$2@@ C222$3@@ C222$4@@ C222$4@@ E*E2 1@@ E*E2 1@@ E*E2 2@@ E*E2 3@@ F*22 1@@ FRP2 1@@

4cti"it9 Aame

$uccessor
EA02 +202 1@@ +202 1@@ P4.2 1@@ C222C2@@ C222C3@@ C222C4@@ C222$1@@ C222$2@@ C222$3@@ C222$4@@ B*22 1@@ B*22 2@@ .AP2 1@@ $4A2 1@@ P4.2 1@@ EA02 P4.2 1@@ $4A2 3@@

Relation *ag 59pe


FF $$ F$ F$ $$ F$ F$ $$ FF F$ F$ F$ F$ F$ F$ F$ F$ F$ F$ @ ; @ @ 4 @ @ 3 2 @ @ @ @ @ @ @ @ @ @

;4

;5

.AP2 1@@ .AP2 2@@ .AP2 2@@ .$22 1@@ P4.2 1@@ P4.2 2@@ PRP2 $4A2 1@@ $4A2 2@@ $4A2 3@@ +202 1@@ +202 2@@

.AP2 2@@ E*E2 2@@ F*22 1@@ CER2 1@@ FRP2 1@@ E*E2 3@@ C222C1@@ $4A2 2@@ .$22 1@@ +202 2@@ E*E2 1@@ P4.2 2@@

F$ F$ F$ F$ F$ F$ F$ F$ F$ F$ F$ F$

@ @ @ @ @ @ @ @ @ @ @ @

&he K*e"el o( E((ortL )cti it$ /40M2J re2uires 'oth a


Predecessor and a $uccessor.
o

Predecessor- $tart<to<$tart relationship !ith PRP2 )cti it$ !ith 1 da9 of *ag. $uccessor- Finis&<to<Finis& relationship !ith EA02 )cti it$.

6.

Project $c&eduling
;5

;6

Bac,ground7a ing entered )cti ities% :uration% and Relationships for the Project% 1ou are no! read$ to schedule the Project. 8pen the Project Case<@: W $c&eduling and schedule the Project and ie! the K$c&edule *ogL of the Project,s 3tatistics. &he Project !ill 'e named CaseV@: W $c&eduling) Ose KCop9HPasteL 6 change the name of the ne! ProjectF.

Buestion

Ose the K$c&edule *ogL to ans!er the follo!ing 2uestions(


7. ". ;.

7o! man$ acti"ities are in the ProjectS VVVVVVVVVVVVVVVV 7o! man$ relations&ips are in the ProjectS VVVVVVVVVVVVV 7o! man$ acti"ities do not ha e Predecessors andDor $uccessors /2pen Ends5 in the ProjectS VVVVVV VVVVVVV What is the *atest Earl9 Finis& 0ate for the ProjectS VVVVV 7o! man$ Critical 4cti"ities in the ProjectS VVVVVVVVVVVV

-.. --.

/int

Press K$c&eduleL icon Press K=ie' *ogL to see 3chedule Report.

;6

;7

;7

;"

2.

Creating 4cti"it9 Codes 0ictionar9-

&he Project !ill 'e named C4$EV@> W Creating 4cti"it9 Codes 0ictionar9)
Ao 1 4ct) Code AameH 0escription CaseVResp Responsi'ilit$ Code =alue 4/ME0 4MR 2 3 CaseV4rea )reaDBocation CaseVMile #ile3tone CaseV59pe1 &$pe of Work A2/4 4R E C P $ 40M B*2 CER C22 E*E EA0 F*2 FRP .AP .$2 P4. $4A PRP +20 1 2 C $ 1@@ 2@@ 3@@ 4@@ Code 5itle Resp o( Rein(orcement +or,s & 2t&ers Resp o( Electrical +or,s & 2t&ers Resp o( Finis&ing +or,s & 2t&ers 4ir Port RoadD /eliopolisD Cairo Mile$tone (or Electrical +or,s Mile$tone (or Concrete Mile$tone (or Painting +or,s Mile$tone (or $anitar9 +or,s Project 4dministration Bloc, +or,s Ceramic 5iles Rein(orcement Concrete(RF5 Electrical +or,s /and 2"er Flooring +or,s Frontal Plastering .nternal Plastering .solation +or,s Painting +or,s $anitar9 +or,s Preparation (or t&e Project +ooden +or,s First Floor $econd Floor

1 : >

CaseVFloorT Aloor ?um'er CaseVCol$la% ColumnsD3la'63tairs CaseV59pe2 &$pe of Work 2

4cti"it9 Codes &ere 'ill %e created on t&e Elo%al<*e"el) YYYYY 2pen t&e Project) Clic, 7EnterpriseH4cti"it9 CodesU8D a 7Prima"era8 4larm 'indo' displa9s) Clic, 72M8 C&oose 7Elo%al8) Clic, 7Modi(98 Clic, 74dd8 ContinueU

;"

;;

3.

4ssigning 4cti"it9 Codes- ()cti

ities 3orted )lpha'eticall$

&he Project !ill 'e named CaseV@; W 4ssigning 4cti"it9 Codes)

Ao 4cti"it9
.0

4cti"it9 Aame

P0 Resp

CaseV 4 M r i e l a e )R )R )R )R )R )R )R )R )R )R )R )R )R )R )R )R )R )R )R )R )R )R )R )R )R P P 3 3

5 9 p 1

Col $ l a %

@1 @2 @3 @4 @1 @: @> @; @? 1@ 11 12 13 14 11 1: 1> 1; 1? 2@ 21 22 23 24 21

40M2 B*22 1@@ B*22 2@@ CER2 1@@ C222C1@@ C222C2@@ C222C3@@ C222C4@@ C222$1@@ C222$2@@ C222$3@@ C222$4@@ EA02 E*E2 1@@ E*E2 2@@ E*E2 3@@ F*22 1@@ FRP2 1@@ .AP2 1@@ .AP2 2@@ .$22 1@@ P4.2 1@@ P4.2 2@@ $4A2 1@@ $4A2 2@@

Project 4dministration Bloc, +or, t&ic, 21 cm Bloc, +or, t&ic, 12 cm Ceramic +or, (+alls & $la%s Form +or, Columns R)F)5 Columns Cast<in<Place Concrete Columns Curing 5ime (or Columns Form +or, ($la%s & $tairs R)F)5 ($la%s & $tairs Cast<in<Place ($la%s & $tairs Curing 5ime & Remo"al o( Form+or, (or $la%H$tairs /and 2"er Electrical Conduits Electrical +ires Electrical $'itc&es *ig&ting Fix) Mosaic 5iles 0im 4@J4@ cm Frontal Plastering .nternal Plastering (or +alls & $tairs 5R45X2 Plastering /eig&t 2m Bat&rooms Proo(ing Painting Preparation *a9ers Final Painting *a9ers $anitar9 Pipes Pota%le +ater Piping Circuits
;;

<<< 12 4 4 > 4 3 1 11 > 3 1@ 1@ > 14 14 1@ 21 2@ ; 2 : 12 2@ ?

)7#=: ?87) ?87) ?87) )7#=: )7#=: )7#=: )7#=: )7#=: )7#=: )7#=: )7#=: ?87) )#R )#R )#R ?87) ?87) ?87) ?87) )7#=: ?87) ?87) ?87) ?87)

C C82 C C82 C C82 C C82 C C82 C C82 C C82 C C82 = = =

C C C C 3 3 3 3

-..

2: 2> 2; 2?

$4A2 3@@ PRP2 +202 1@@ +202 2@@

.nstallation o( $anitar9 Fixtures Preparing Project Re!uirements & 4nal9sis +indo's & 0oors $u%< Frames .nstallation 0oors & +indo's .nstallation

: 1@ > 1@

?87) )7#=: ?87) ?87)

)R )R )R )R

J 4cti"ities &ere are sorted alp&a%eticall9) JJ Aote- Lou can sort t&em %9 E$ and 5F) JJJ Mile$tone &ere does not mean 4cti"it9 Mile$tome) .t is used (or example to group 4cti"ities)

Buestions Related to 4cti"it9 Codes1) 0ispla9 all acti"ities o( RF5)


2.

Check that the Code CaseV59pe1 is assigned to the acti ities( C222C1@@ )) C222$4@@. Create and e*ecute a Ailter( Where KCaseV59pe1 I C22L

0ispla9 all 4cti"ities related to Eng 4&med & Columns 2nl9)

:o not forget to assign the )cti it$ Code KCaseVCol$la%L to the corresponding )cti ities.

3. 4. 5. 6. 7. ".

0ispla9 all 4cti"ities o( Columns) 0ispla9 all 4cti"ities o( $la% & $tairs) 0ispla9 an9 4cti"ities o( Eng) 4&med or 4mr) 0ispla9 all 4cti"ities o( Eng) 4&med and 4mr) 0ispla9 all 4cti"ities in 2nd Floor & RF5 (i)e)D CO2activities Create $c&edule Report 'it& E$ Z @1<M4R<@? and Eng) 4&med

?) Uetc /int- 5&e (ollo'ing *a9out comes (romo 7*a9out 2ption BarHEroup and $ortHEroup B9 <<<< CaseVResp o Clic, 7.0HCode8 %ox

-..

-.-

-.-

-.2

4) Resources Management
&he Project !ill 'e named C4$EV@? W Resource Brea,do'n $tructure)

Resources Brea,do'n $tructure (RB$ Root- CaseVRB$

*a%orCase

<<<<<< Labor of Case_RBS

o Carpenter o $teel)Men o Con)*a%or o 2rd)*a%or o Bric)*a9 o 0oor)Carp o Plas)Men o Plum%er o 5ile)Men o .so)Men o Cer)Men o Paint)Men o Plum%er<1 o Front)Plaster o *ig&t)Fixturer o Remo"al o 5R45)Plaster)Men o ) ) )

Resources

E!uipmentsCase
o Conc)Mix o Up)Crane o ) ) )

<<<<<< Equipme ts of Case_RBS


Resources

MaterialsCase <<<<<< !ateria"s of Case_RBS


o o o o
o o

o o o
o

o o o o
o

R)F)5 Cement $and Era"el +ater)Price Bric,)Mat E9psum Paint)Mat $an)Pipe +&iteCem .ron)Pip Mosaic .solation $an)Fix Mos)0oor

Resources

-.2

-.3

o *ig&t)Fixation o 2rd)5iles

Ao'D

Click KEnterpriseHResourcesL. Click the K0ispla9 2ptionL 'ar. Choose KEroup and $ort B9H0e(aultL. Press K4ddL in the KCommandL 'ar o )dd the Root of the RN3( Resource .0( CaseVRB$ Aame( Case $tud9 Resources
o

Onder the Root Resource +: /CaseVRB$5% K4ddL the 2nd Be els. Aor e*ample( CaseVRB$) *a%orCase CaseVRB$)E!upmentsCase CaseVRB$)MaterialsCase

-.3

-.4

/int- Creating Resources# Units o( Measure

1ou can esta'lish the Resource#s Units o( Measure /to 'e used !ith Materials Resources5 as follo!s(
o o

Click K4dminH4dmin CategoriesUL Click KUnits o( MeasureL 'utton% the K4dmin CategoriesL displa$s. Click K4ddL. Write the KUnit 4%%re"iationL 6 KUnit AameL for the re2uired Units o( Measure. Aor our Case 3tud$% !e ha e the follo!ing Units o( Measures(

o o

$A ..2 .3 .4 .5 .6 .7

Unit 4%%re"iation 5on 0a9 CM $M *M Part Eac&

Unit Aame &on :a$ Cu'ic #eter 32uare #eter Bong #eter Part =ach

-.4

-.5

)fter esta'lishing Units o( Measure% 1ou can select the Unit o( Measure !hen assigning the Resources to 4cti"ities in the 4cti"ities 'indo'.

-.5

-.6

5.

Creating Resources 0ictionar9

&he Project !ill 'e named CaseV1@ W Resource 0ictionar9) 74dd8 t&e coming Resources (or eac& corresponding RB$ .temsU

4 *a%orCase (People

/int- 0o not (orget to assign t&e 0e(ault Project Calendar (.t s&ould %e %etter to %e Elo%al Calendar) .t is called in our case- Case Cal< 1 0H+ P$UAR 'it& /olida9s to t&e di((erent Resources except '&en t&ere are Resource CalendarsU A2 RE$2URCEH 0.$CR.P5.2A 4dminister Plum%er i OO c!z Cre'(1 Blum%erK 1 4ssistant Bric)*a9 a* Cre'(; B)* K2 Mortar K 2 /andling Carpentr 6!}a#$ Cre'(Carpenter K 4ssistant Cer)Men 3$.3 3.h j'( Cre'(1 C&ie( K 1 4ssistant Con)*a%or Y31z#$ Cre'(2@ +or,ers 0oor)Carp c!z~ - !* 6!}p Cre'(1 Carpenter K 1 4ssistant Front)Plaster +!|o$- OOO 56!"0#$ !3* Cre'(2 Palstmen K 2 4ssistant K 1 +or,er .so)Men Cre'(1 C&ie( K 2 4ssistant 2rd)*a%or 2rdinar9 *a%or Paint)Men 3~!a#$ Cre'(4 Painters K 2 4ssistants Plas)Men !3* j'( Cre'(1 Plaster Man K 1 Mortar Remo"al Remo"al o( Form+or, to Upper *e"el $teel)Men 7$&"#$ Cre'(2 $t) Cut) K 2 $t) Erection K 3 4ssist) 5ile)Men 31z0#$ 0e() Units H5ime (&Hd 1&Hd ;Hd ;Hd ;Hd ;Hd ;Hd ;Hd ;Hd ;Hd ;Hd ;Hd ;Hd ;Hd ;Hd ;Hd Max) Units H5ime (&Hd 1&Hd 24Hd 32Hd ;@Hd 1:Hd 1:Hd 1:Hd 32Hd 1:Hd 13:Hd 1:Hd 4@Hd 4@Hd 32Hd 1:Hd PriceH Unit (G (GHd 1@H& 23Hd >1Hd 21Hd 2;Hd 3@@Hd 2;Hd :@Hd 21Hd 2@Hd 1@@Hd 21Hd 2@Hd >@Hd 13@Hd

@1 @2 @3 @4 @1 @: @> @; @? 1@ 11 12 13 14 11

-.6

-.7

1: 1>

5ile Men (or Mosaic Flooring 5R45)Plaster)Men 33z0#$ Cre'(2 Plastermen K 2 Mortar 5R45X2 Plaster Men) PM Project Manager

;Hd ;Hd

1:d 1:d

1@Hd 3@@Hd

0ata to %e entered in t&e 7Resource 0ictionar98

B E!uipmentsCase < Aon*a%or


A2 RE$2URCEH 0e() Max) PriceH

-.7

-."

0.$CR.P5.2A 1 2 Conc)Mix Y3p! .'#$ Y'#$ Concrete Mixer used (or R)F)5 D P)C J
J (P)C I Plain concrete

Units H5ime (&Hd ;Hd ;Hd

Units H5ime (&Hd 1:Hd ;Hd

Unit o( 5ime (GHd 4@@Hd 1@Hd

Up)Crane `#$ .# pUp) *i(t Crane used (or Bric,s

C MaterialsCase
A2 @1 @1d @2 @3 @4 @1 @: @> @; ? 1@ 11 12 13 14 11 1: RE$2URCEH 0.$CR.P5.2A Bric,)Mat `#$ Bric, material t&ic,ness 12 cm Bric,)Mat `#$ Bric, material t&ic,ness 21 cm Cement Cement Ceramic Ceramic 0im 2@J2@ cm Era"el # Era"el (or 0i((erent 5as,s E9psum z3o E9psum (or di((erent 5as,s .nsulation Y# !]#$ 57!0#$ .nsulation Material (or +ater Proo(ing .ron)Pip &&"#$ .3 $` .ron Pipe diameter )18 *ig&t)Fixation Y3*.| +!z3.h Electric $'itc&es and *ig&ting Fixtures Mos)0oor 3*!z/#$- $`*f$ n4 `0#$ Mos,e9 Materials (0oor K +indo' Mosaic $ `0#$ Mosaic 5iles dim 4@J4@ cm 2rd)5ile _7!, * 2rdinar9 5iles (or Roo( dim 2@J2@ cm Paint)Mat Painting Materials R)F)5 31b(#$ && Rein(orcement $teel $an)Fixt n"l 5{|o $anitar9 Fixtures $4A)P.PE n"j#$ .j#$ .3 $` Pipe Material (or $anitar9 Pipes $and Unit o( Measure $M $M 5on $M CM 5on $M *M Part Part $M $M $M 5on Part *M CM 1@Hd 0e() Units H5ime Max) UnitsH 5ime 1;@Hd 1;@Hd ;Hd 1@Hd :@Hd 1Hd 1@Hd 1@@Hd 1@Hd 12Hd :@Hd 4@Hd 3@@Hd 3Hd 1@Hd 3@Hd 12Hd PriceH Unit (GHU : 12 3;@ 21 22 1@; 1 1 2@@ 11@ 2@ 1 3 3:@@ 12@@ 2@ 1

-."

-.;

$and (or 0i((erent 5as,s 1> 1; +ater)Price !3 +ater +&iteCem +&ite Cement CM 5on 1@Hd 1Hd 1@ 1@@

/intClic, 7EditHUser Pre(erencesUH5ime Units ta%8 to customi3e t&e Units o( 5ime as (ollo's Units Formato Unit o( 5ime- &our 0uration Formato Unit 5ime- da9 UnitsH5ime Formato C&oose 7$&o' as unitsHduration8 Ao need (or 'riting "alues in t&e 70e(ault UnitsH5ime8 o( Materials except '&en neededU Close

-.;

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--.

---

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--2

:) 4ssigning Resources and Costs


Project #anager has identified the specific Resources that !ill 'e !ork on this Project. Project 'ill %e named CaseV11 W 4ssigning Resources & Costs)

)ssign Resources 'ased on the ta'le 'elo!. +f an acti it$ has multiple resource assignments% the -st resource listed is the Primar9 Resource.
#Activities are sorte$ b% Act& 'D(

Ao
@1 @2 @3<1 @3<2 @3<3 @4<1 @4<2 @4<3

4ct) .0
40M2 PRP2 B*22 1@@ B*22 1@@ B*22 1@@ B*22 2@@ B*22 2@@ B*22 2@@

5itle
Project 4dministration Preparing Project Re!uirements & 4nal9sis Bloc, +or, t&ic, 21 cm Bloc, +or, t&ic, 21 cm Bloc, +or, t&ic, 21 cm Bloc, +or, t&ic, 12 cm Bloc, +or, t&ic, 12 cm Bloc, +or, t&ic, 12 cm

20

Resource .0
4dminister PM Bric)*a9 Cement Bric,)Mat Bric)*a9 Bric,)Mat Cement

Res) 59pe
*

Unit 0e(ault o( UnitsH Measure 5ime


1&Hd

<<< 1@d 12d 12d 12d @4d @4d @4d

Budgeted UnitsH 5ime 1&Hd ;Hd

* M M * M M

52A CM

1Hd 1@Hd

24Hd 2@Hd 1;@Hd 1:Hd ;@Hd 1@Hd

1Hd $M 52A

P3eCase3tud$ @ --2

--3

@1<1 @1<2 @1<3 @: @><1 @><2 @;<1 @;<2 @;<3 @;<4 @;<1 @?<1 @?<2 1@ 11<1 11<2 12<1 12<2 12<3 12<4 12<1

CER2 1@@ CER2 1@@ CER2 1@@ C222C1@@ C222C2@@ C222C2@@ C222C3@@ C222C3@@ C222C3@@ C222C3@@ C222C3@@ C222C4@@ C222C4@@ C222$1@@ C222$2@@ C222$2@@ C222$3@@ C222$3@@ C222$3@@ C222$3@@ C222$3@@

Ceramic +or, (+all&$la%s Ceramic +or, (+all&$la%s Ceramic +or, (+all&$la%s Form +or, Columns R)F)5 Columns R)F)5 Columns Cast<in<Place Concrete Columns Cast<in<Place Concrete Columns Cast<in<Place Concrete Columns Cast<in<Place Concrete Columns Cast<in<Place Concrete Columns Curing time (or Columns Curing time (or Columns Form +or, ($la%sH$tairs R)F)5 ($la%sH$tairs R)F)5 ($la%sH$tairs Cast<in<Place ($la%H$tairs Cast<in<Place ($la%H$tairs Cast<in<Place ($la%H$tairs Cast<in<Place ($la%H$tairs Cast<in<Place ($la%H$tairs

@4d @4d @4d @>d @4d @4d @3d @3d @3d @3d @3d @1d @1d 11d @>d @>d @3d @3d @3d @3d @3d

Ceramic Cer)Men $and Carpenter R)F)5 $teel)Men Conc)Mix Con)*a%or Cement $and Era"el +ater)Price 2rd)*a%or Carpenter $teel)Men R)F)5 Con)*a%or Conc)Mix Cement $and Era"el

M * M * M * E * M M M M * * * M * E M M M

$M 1Hd CM 1Hd 52A 1Hd 1Hd 1Hd 52A CM CM CM 1Hd 1Hd 1Hd 52A 1Hd 1Hd 52A CM CM

1@Hd 1:Hd 3Hd 4;Hd 3Hd 24Hd 2Hd 32Hd 1@Hd 2@Hd 21Hd 1@Hd ;Hd ;@Hd 24Hd 4Hd 1:Hd 2Hd 21Hd 3@Hd :@Hd

P3eCase3tud$ @ --3

--4

13<1 13<2 14<1 14<2 11<1 11<2 1:<1 1:<2 1> 1;<1 1;<2 1;<3 1;<4 1?<1 1?<2 1?<3 1?<4 1?<1

C222$4@@ C222$4@@ E*E2 1@@ E*E2 1@@ E*E2 2@@ E*E2 2@@ E*E2 3@@ E*E2 3@@ EA02 F*22 1@@ F*22 1@@ F*22 1@@ F*22 1@@ FRP2 1@@ FRP2 1@@ FRP2 1@@ FRP2 1@@ FRP2 1@@

Curing 5ime & Remo"al o( Form+or, (or $la%H$tairs Curing time & Remo"al o( Form+or, (or $la%H$tairs Electrical Conduits Electrical Conduits Electrical +ires Electrical +ires Electrical $'itc&es *ig&ting Fix Electrical $'itc&es *ig&ting Fix /and 2"er Mosaic 5iles dim 4@J4@ cm Mosaic 5iles dim 4@J4@ cm Mosaic 5iles dim 4@J4@ cm Mosaic 5iles dim 4@J4@ cm Frontal Plastering Frontal Plastering Frontal Plastering Frontal Plastering Frontal Plastering

1@d 1@d @>d @>d 14d 14d 14d 14d 1@d 1@d 1@d 1@d 1@d 21d 21d 21d 21d 21d

2rd)*a%or +ater)Price

* M CM

1Hd

;Hd 1:Hd

*ig&t)Fixation

P4R5

1;Hd

Mosaic 5ile)Men $and Cement Front)Plaster Cement $and E9psum +&iteCem

M * M M * M M M M

$M 1Hd CM 52A 1@Hd 1Hd 1@Hd

121Hd 1:Hd 1Hd 1Hd 4@Hd 2Hd 4Hd 1Hd 1Hd

52A CM 52A 52A

P3eCase3tud$ @ --4

--5

2@<1 2@<2 2@<3 2@<4 21<1 21<2 21<3 21<4 21<1 22<1 22<2 23<1 23<2 24<1 24<2 21<1 21<2 2:<1 2:<2

.AP2 1@@ .AP2 1@@ .AP2 1@@ .AP2 1@@ .AP2 2@@ .AP2 2@@ .AP2 2@@ .AP2 2@@ .AP2 2@@ .$22 1@@ .$22 1@@ P4.2 1@@ P4.2 1@@ P4.2 2@@ P4.2 2@@ $4A2 1@@ $4A2 1@@ $4A2 2@@ $4A2 2@@

.nternal Plastering (or +alls & $la%s .nternal Plastering (or +alls & $la%s .nternal Plastering (or +alls & $la%s .nternal Plastering (or +alls & $la%s 5R45X2 Plastering 5R45X2 Plastering 5R45X2 Plastering 5R45X2 Plastering 5R45X2 Plastering Bat&rooms Proo(ing Bat&rooms Proo(ing Painting Preparation *a9ers Painting Preparation *a9ers Final Painting *a9ers Final Painting *a9ers $anitar9 Pipes $anitar9 Pipes Pota%le +ater Piping Circuits Pota%le +ater Piping Circuits

2@d 2@d 2@d 2@d @;d @;d @;d @;d @;d @2d @2d @:d @:d 12d 12d 2@d 2@d @?d @?d

Front)Plaster Cement $and E9psum Plas)Men Cement $and E9psum +&iteCem .solation)Men .nsulation Paint)Men Paint)Mat Paint)Mat Paint)Men Plum%er<1 $an)Pipe Plum%er<1 .ron)Pip

* M M M * M M M M * M * M M * * M * M

52A CM 52A

1Hd 1@Hd

32Hd 2Hd :Hd 1Hd 24Hd 2Hd 3@Hd 1Hd 1Hd ;Hd 1@@Hd 1:Hd 3@;Hd 3@;Hd 1:Hd 24Hd :@Hd 24Hd 2@Hd

52A CM 52A 52A

1Hd 1@Hd

1Hd $M 1Hd $M $M 1Hd 1Hd *M 1Hd *M

P3eCase3tud$ @ --5

--6

2><1 2><2

$4A2 3@@ $4A2 3@@

.nstall o( $anitar9 Fixtures .nstall o( $anitar9 Fixtures

@:d @:d

Plum%er<1 $an)Fixt

* M

1d P4R5

1:Hd 2Hd

2; 2?<1 2?<2

+202 1@@ +202 2@@ +202 2@@

+indo's & 0oors $u%<Frames .nstallation +indo's & 0oors .nstallation +indo's & 0oors .nstallation

@>d 1@d 1@d

0oor)Carp 0oor)Carp Mos)0oor

* * M

1Hd 1Hd P4R5

32Hd 1:Hd ;Hd

P3eCase3tud$ @ --6

--7

>) Cost 4ccounts 0ictionar9


Project 'ill %e named CaseV12 W Coat 4ccount 0ictionar9)

Cost 4ccounts $tructureRoot- CaseVC4 Cost CategoriesCost Categor9 Code <<<<<<<<<<<<<<<<<<<<<<<<<< * E M $ Categor9 5itle <<<<<<<<<<<<<<<<<<<<<<<<<<<< *a%or Aonla%or (E!uipment Material Expenses

/intUse 7EnterpriseHCost 4ccountsU8 to %uild Cost 4ccount 0ictionar9))

P3eCase3tud$ @ --7

--"

Cost 4ccount/int- Eac& 4cti"it9 &as its o'n Cost 4ccount) $oD most o( Cost 4ccounts ta,e t&e names o( 4cti"ities .0s Ao
@1 @2 @3 @4 @1 @: @> @; @? 1@ 11 12 13 14 11 1: 1> 1; 1? 2@ 21

Cost 4ccount Pre(ix

Cost 4ccount .0
40M2 B*22 1@@ B*22 2@@ CER2 1@@ C222C1@@ C222C2@@ C222C3@@ C222C4@@ C222$1@@ C222$2@@ C222$3@@ C222$4@@ EA02 E*E2 1@@ E*E2 2@@ E*E2 3@@ F*22 1@@ FRP2 1@@ .AP2 1@@ .AP2 2@@ .$22 1@@

Cost 4ccount Aame


Project 4dministration Bloc, +or, t&ic, 21 cm Bloc, +or, t&ic, 12 cm Ceramic +or, (+alls & $la%s Form +or, Columns R)F)5 Columns Cast<in<Place Concrete Columns Curing time (or Columns Form +or, ($la%s & $tairs R)F)5 ($la%s & $tairs Cast<in<Place ($la%s & $tairs Curing time & Remo"al o( Form+or, (or $la%H$tairs /and 2"er Electrical Conduits Electrical +ires Electrical $'itc&es *ig&ting Fix) Mosaic 5iles 0im 4@J4@ cm Frontal Plastering .nternal Plastering (or +alls & $tairs 5R45X2 Plastering /eig&t 2m Bat&rooms Proo(ing
P3eCase3tud$ @ --"

Cost 4ccount Categor9 $u((ix

CaseVC4)

Eac& Cost 4ccount &a"e all o( t&e Cost Categories*D ED MD and $

--;

22 23 24 21 2: 2> 2; 2?

P4.2 1@@ P4.2 2@@ $4A2 1@@ $4A2 2@@ $4A2 3@@ PRP2 +202 1@@ +202 2@@

Painting Preparation *a9ers Final Painting *a9ers $anitar9 Pipes Pota%le +ater Piping Circuits .nstallation o( $anitar9 Fixtures Preparing Project Re!uirements & 4nal9sis +indo's & 0oors $u%<Frames .nstallation 0oors & +indo's .nstallation

P3eCase3tud$ @ --;

-2.

P3eCase3tud$ @ -2.

-2-

P3eCase3tud$ @ -2-

-22

;) 4ssigning Cost 4ccounts


Project 'ill %e named CaseV13 W 4ssigning Coat 4ccounts
Aote- 5&ere is onl9 one Cost<4ccount ('it& di((erent categories (or eac& 4cti"it9 Cost 4ccounts exist '&ere t&ere are ResourcesU)

Ao
@1 @2 @3<1 @3<2 @3<3 @4<1 @4<2 @4<3 @1<1 @1<2 @1<3 @:

4ct) .0
40M2 PRP2 B*22 1@@ B*22 1@@ B*22 1@@ B*22 2@@ B*22 2@@ B*22 2@@ CER2 1@@ CER2 1@@ CER2 1@@ C222C1@@

5itle
Project 4dministration Preparing Project Re!uirements & 4nal9sis Bloc, +or, t&ic, 21 cm Bloc, +or, t&ic, 21 cm Bloc, +or, t&ic, 21 cm Bloc, +or, t&ic, 12 cm Bloc, +or, t&ic, 12 cm Bloc, +or, t&ic, 12 cm Ceramic +or, (+all&$la%s Ceramic +or, (+all&$la%s Ceramic +or, (+all&$la%s Form +or, Columns

20

Resource Aame

Res) 59pe
*

Cost 4ccount
40M2)* PRP2)*

<<< 1@d 12d 12d 12d @4d @4d @4d @4d @4d @4d @>d BR.C)*4L CEMEA5 BR.CMM45 BR.C)*4L BR.CMM45 CEMEA5 CER4M.C CER)MEA $4A0 C4RPEA5R

* M M * M M M * M *

B*22 1@@)* B*22 1@@)M B*22 1@@)M B*22 2@@)* B*22 2@@)M B*22 2@@)M CER2 1@@)M CER2 1@@)* CER2 1@@)M C222C1@@)*

P3eCase3tud$ @ -22

-23

@><1 @><2 @;<1 @;<2 @;<3 @;<4 @;<1 @?<1 @?<2 1@ 11<1 11<2 12<1 12<2 12<3 12<4 12<1 13<1 13<2 14<1 14<2 11<1

C222C2@@ C222C2@@ C222C3@@ C222C3@@ C222C3@@ C222C3@@ C222C3@@ C222C4@@ C222C4@@ C222$1@@ C222$2@@ C222$2@@ C222$3@@ C222$3@@ C222$3@@ C222$3@@ C222$3@@ C222$4@@ C222$4@@ E*E2 1@@ E*E2 1@@ E*E2 2@@

R)F)5 Columns R)F)5 Columns Cast<in<Place Concrete Columns Cast<in<Place Concrete Columns Cast<in<Place Concrete Columns Cast<in<Place Concrete Columns Cast<in<Place Concrete Columns Curing 5ime (or Columns Curing 5ime (or Columns Form +or, ($la%sH$tairs R)F)5 ($la%sH$tairs R)F)5 ($la%sH$tairs Cast<in<Place ($la%H$tairs Cast<in<Place ($la%H$tairs Cast<in<Place ($la%H$tairs Cast<in<Place ($la%H$tairs Cast<in<Place ($la%H$tairs Curing time & Remo"al o( Form +or, (or $la%H$tairs Curing time & Remo"al o( Form +or, (or $la%H$tairs Electrical Conduits Electrical Conduits Electrical +ires

@4d @4d @3d @3d @3d @3d @3d @1d @1d 11d @>d @>d @3d @3d @3d @3d @3d 1@d 1@d @>d @>d 14d

R)F)5 $5EE*MEA C2AC)M.[ C2A)*4BR CEMEA5 $4A0 ER4=E* +45ERPR. *4B2UR C4RPEA5R $5EE*MEA R)F)5 C2A)*4BR C2AC)M.[ CEMEA5 $4A0 ER4=E* *4B2UR +45ERPR.

M * E * M M M M * * * M * E M M M * M

C222C2@@)M C222C2@@)* C222C3@@)E C222C3@@)* C222C3@@)M C222C3@@)M C222C3@@)M C222C4@@)M C222C4@@)* C222$1@@)* C222$2@@)* C222$2@@)M C222$3@@)* C222$3@@)E C222$3@@)M C222$3@@)M C222$3@@)M C222$4@@)* C222$4@@)M E*E2 1@@)* E*E2 1@@)M E*E2 2@@)*

P3eCase3tud$ @ -23

-24

11<2 1:<1 1:<2 1> 1;<1 1;<2 1;<3 1;<4 1?<1 1?<2 1?<3 1?<4 1?<1 2@<1 2@<2 2@<3 2@<4 21<1 21<2 21<3 21<4 21<1

E*E2 2@@ E*E2 3@@ E*E2 3@@ EA02 F*22 1@@ F*22 1@@ F*22 1@@ F*22 1@@ FRP2 1@@ FRP2 1@@ FRP2 1@@ FRP2 1@@ FRP2 1@@ .AP2 1@@ .AP2 1@@ .AP2 1@@ .AP2 1@@ .AP2 2@@ .AP2 2@@ .AP2 2@@ .AP2 2@@ .AP2 2@@

Electrical +ires Electrical $'itc&es *ig&ting Fix Electrical $'itc&es *ig&ting Fix /and 2"er Mosaic 5iles dim 4@J4@ cm Mosaic 5iles dim 4@J4@ cm Mosaic 5iles dim 4@J4@ cm Mosaic 5iles dim 4@J4@ cm Frontal Plastering Frontal Plastering Frontal Plastering Frontal Plastering Frontal Plastering .nternal Plastering (or +alls & $la%s .nternal Plastering (or +alls & $la%s .nternal Plastering (or +alls & $la%s .nternal Plastering (or +alls & $la%s 5R45X2 Plastering 5R45X2 Plastering 5R45X2 Plastering 5R45X2 Plastering 5R45X2 Plastering

14d 14d 14d 1@d 1@d 1@d 1@d 1@d 21d 21d 21d 21d 21d 2@d 2@d 2@d 2@d @;d @;d @;d @;d @;d M2$4.C 5.*E)MEA $4A0 CEMEA5 FR2A)P*4 CEMEA5 $4A0 EULP$UM +/.5ECEA P*4$)MEA CEMEA5 $4A0 EULP$UM P*4$)MEA CEMEA5 $4A0 EULP$UM +/.5ECEA M * M M * M M M M * M M M * M M M M *.E)F.[5 M *

E*E2 2@@)M E*E2 3@@)M E*E2 3@@)* EA02)* F*22 1@@)M F*22 1@@)* F*22 1@@)M F*22 1@@)M FRP2 1@@)* FRP2 1@@)M FRP2 1@@)M FRP2 1@@)M FRP2 1@@)M .AP2 1@@)* .AP2 1@@)M .AP2 1@@)M .AP2 1@@)M .AP2 2@@)* .AP2 2@@)M .AP2 2@@)M .AP2 2@@)M .AP2 2@@)M

P3eCase3tud$ @ -24

-25

22<1 22<2 23<1 23<2 24<1 24<2 21<1 21<2 2:<1 2:<2 2><1 2><2 2; 2?<1 2?<2

.$22 1@@ .$22 1@@ P4.2 1@@ P4.2 1@@ P4.2 2@@ P4.2 2@@ $4A2 1@@ $4A2 1@@ $4A2 2@@ $4A2 2@@ $4A2 3@@ $4A2 3@@ +202 1@@ +202 2@@ +202 2@@

Bat&rooms Proo(ing Bat&rooms Proo(ing Painting Preparation *a9ers Painting Preparation *a9ers Final Painting *a9ers Final Painting *a9ers $anitar9 Pipes $anitar9 Pipes Pota%le +ater Piping Circuits Pota%le +ater Piping Circuits .nstall o( $anitar9 Fixtures .nstall o( $anitar9 Fixtures +indo's & 0oors $u%<Frames .nstallation +indo's & 0oors .nstallation +indo's & 0oors .nstallation

@2d @2d @:d @:d 12d 12d 2@d 2@d @?d @?d @:d @:d @>d 1@d 1@d

.$2)MEA .A$U*45. P4.A5MEA P4.A5M45 P4.A5M45 P4.A5 B*UMBER $4A)P.PE B*UMBER .R2A)P.P B*UMBER $4A)F.[5

* M * M M * * * * * * M

.$22 1@@)* .$22 1@@)M P4.2 1@@)* P4.2 1@@)M P4.2 2@@)M P4.2 2@@)* $4A2 1@@)* $4A2 1@@)* $4A2 2@@)* $4A2 2@@)* $4A2 3@@)* $4A2 3@@)M +202 1@@)* +202 2@@)* +202 2@@)M

022RC4RP * 022RC4RP * M2$)022R M

P3eCase3tud$ @ -25

-26

P3eCase3tud$ @ -26

-27

?) 4nal93ing Resources & Costs


2%jecti"es =eri(9 a 7Eantt C&art8 is displa9ed in t&e top *a9out 'indo') 0ispla9 a 7Resource Usage Pro(ile8 in t&e %ottom *a9out 'indo')

Format t&e 5imescale to displa9 a 0ate .nter"al once o(


7LearHMont&8 and once o( 7Mont&H+ee,8 or 7+ee,H0a98)

4djust t&e 5imescale to "ie' t&e 0ate Range o( t&e entire Project) =eri(9 t&at onl9 t&e Resources assigned to t&e Case $tud9 are displa9ed in t&e 7ResourceHRole8 /ierarc&9) /ide t&e *egend in t&e Resource Pro(ile) 0ispla9 t&e resource called 7Cement8 Pro(ile) Rsol"e t&e 72"er<4llocation8 o( all 2"er<4llocated Resources)

P3eCase3tud$ @ -27

-2"

P3eCase3tud$ @ -2"

-2;

Resol"e Resource 2"er<4llocation)ll of the follo!ing Resources are o"er<allocated and the o er@allocation resol ed /(or simplicit95 '$ the suggested KMax) Units H5imeL( Unit o( $uggested Measure Max) Units H5ime 3# 12@@ $MHd &on >@ 5onHd Part ?@PartHd 3# C# &on :@@ $MHd 11@ CMHd 1; 5onHd

Resource 2 3 4 5 6 Nrick#at Cement Bight.Ai*ation #osaic 3and R.A.&

N$ this manner% the project 'ecomes optimi3ed) /int- Man9 'a9sto resol"e Resource<o"erallocation o 5&ere is '&at 'e call Resource<*e"elingD and o 4cti"ities Relations&ips

P3eCase3tud$ @ -2;

-3.

1@) 2ptimi3ing t&e Project Plan


Jerif$ that the Projeect Plan meets the Project $ta,e&olders#s 0ates% Resource% and Cost Re!uirements.

$&orten a Project $c&edule o &he most important date in the schedule is the calculated
Project Finis& 0ate.

o +f the calculated Finis& 0ate of the Project is 'ehind the


re2uired Project Finis& 0ate% the Project must 'e shortend. +n addition% each deli"era%le in the Project should 'e scheduled to finish '$ the dates imposed '$ the Project stakeholders.

+t is re2uired for our case that the Project must finished '$ @1<$ep<
11. 7o!e er% the scheduled indicates that the Project !ill not finish until 2?<$ep<11.

P3eCase3tud$ @ -3.

-3-

Focusing on Critical 4cti"itieso Click the K$ettingL ta' in the KProjectsL !indo!. o +n the KCritical 4cti"itiesL section% select K*ogest Pat&L. o <o to K4cti"itiesL !indo!. o Choose KFilterU8 from the K*a9out 2ption BarL. o Check KCriticalL and press 2M as sho!n(

P3eCase3tud$ @ -3-

-32

P3eCase3tud$ @ -32

-33

o :ecrease the :uration of )cti it$ KFRP2 1@@L from 21 da$s


to 14 da$s% the Project $c&edule Finis& 0ate 'ecmes @;<$ep<11.

o )dd a 3uccessor )ct it$ KE*E2 3@@L to KE*E2 2@@L !ith


Relationship t$pe K$$L and KBag time I -L% the Project $c&edule Finis& 0ate 'ecmes 2@<$ep<11.

o :ecrease the :uration of )cti it$ KE*E2 3@@L from 14 da$s


to 13 da$s% the Project $c&edule Finis& 0ate 'ecmes 14<$ep<11.

o :ecrease the :uration of )cti it$ K.AP2 1@@L from 2@ da$s


to 14 da$s% the Project $c&edule Finis& 0ate 'ecmes @:<$ep<11.

o :ecrease the :uration of )cti it$ KP4. 2@@L from 12 da$s


to 1@ da$s% and

o :ecrease the :uration of )cti it$ K+202 2@@L from 1@


da$s to > da$s% the Project $c&edule Finis& 0ate 'ecmes
P3eCase3tud$ @ -33

-34

@1<$ep<1 as s&o'n-

P3eCase3tud$ @ -34

-35

Cost Report Using Cost 4ccount Clic, 75oolsHReport +i3ard8 C&oose 7Ae' Report8 $elect $u%ject 4rea- Cost 4ccounts

$elect 4dditional $u%ject 4rea- 4cti"it9 Resource and Role


4ssignments Columnso Cost 4ccount .0 o Cost 4ccount Aame o Cost 4ccount 0escription

o *a%or Cost o Aonla%or (E!uipment Cost o Material Cost o 5otal Cost ContinueU

For Cost 4ccounts- Use 75oolsHReports8 to run t&e read9 made reporto Report Eroup- Cost

P3eCase3tud$ @ -35

-36

Report Eroup- Control CC<@1 Budgeted Cost %9 Cost 4ccount

11) Baselining t&e Project Plan


Creating Base*ineo o o

8pen the Project KCaseV11 <<< Base*ining t&e Project PlanL +n the KProjectL menu% click KMaintain BaselinesL. Jerif$ the Project to !hich $ou are associating the Naseline KCaseV11 Base*ining t&e Project PlanL is selected. Click 2M.

o o o

3elect the Naseline KBase*ining t&e Project Plan < B1L &$pe a ne! Naseline name KBase 1- CaseV5argetL +n the KBaseline 59peL drop@do!n@list% select K.nitial PlanL

P3eCase3tud$ @ -36

-37

4ssigning a Base*ineo o

Click KProjectH4ssign BaselinesU8 +n the opened dialog 'o*% select KBase 1- CaseV5argetL in 'oth KProject BaselineL 6 KUser Baselines W Primar9L fields. Click 2M.

P3eCase3tud$ @ -37

-3"

=ie'ing Baseline Bars & Bar $t9leo o

+n the K*a9out 2ption BarL% click KBarsL. #ark the check 'o*es ne*t to KPrimar9 BaselineL 6 KBaseline MilestoneL Click 2M. ?otice the Baseline Bars appears in the KEantt C&artL. 3a e this *a9out !ith the name KCurrent "s) Baseline BarsL

o o o

Bar la%elso o o o o o o

+n the K*a9out options BarL% click KBarsL. 7ighlight a 'ar% KCurrent Bar *a%elsL. Click the KBar *a%elsL ta'. +n the K*a%elL column% replace K4cti"it9 AameL !ith KFinis&L Click K4ddL. +n the K*a%elL column% select K5otal FloatL. Click 2M.

P3eCase3tud$ @ -3"

-3;

P3eCase3tud$ @ -3;

-4.

P3eCase3tud$ @ -4.

-4-

P3eCase3tud$ @ -4-

-42

12) Project Execution & Control


8nce the Project +nformation has 'een distri'uted% the ne*t step is to
update t&e Project 'it& 4ctuals.

+nformation has 'een distri'uted a'out the Project. &he Project has
started. 1ou ha e gathered information from the 5eam Mem%ers. 1ou can no! manuall9 update the )cti ities and appl$ the progress to the Project. Updating t&e Project1ou ma$ need to update dail9% 'ee,l9% or mont&l9% depending on the length of the Project and ho! fre2uentl$ $ou !ant to adjust $our forecasts.

/o' 0ata is Collected\ o Project Managers manuall$ enter the 4ctual 0ate% Resource%
and Cost .n(ormation.

Record 4ctual 0ates and Progress% 4ctual Resource


Usage and Costs. o 4ppro"e and 4ppl9 5imes&eets-

5eam Mem%ers use the 5imes&eets Module to update


4cti"ities.

Project Managers re ie! and appro e timesheets. Project Managers appl$ timesheets to the Project. 0ata 0ateo &he 0ata 0ate is the date up to !hich 4cual Per(ormance
0ata is reported and t&e 0ate (rom '&ic& (uture 'or, is sc&eduled.

P3eCase3tud$ @ -42

-43

Updating Processo Create a Baseline Plan.


o =nter )cti it$ Progress.

o Ose $uspend 6 Resume 0ates as necessar$. o )ppl$ )ctuals to the Project o Per(orm 5arget 4nal9sis Compare the Current Plan to the 5arget Plan to anal$0e
ariances. o 0etermine '&et&er Project 2%jecti"es are %eing met-

Will the Project finish on timeS )re Project Resources 'eing used effecti el$S
Use t&e (ollo'ing 4cti"it9 Progresso

4ctual 0ata is usuall$ different from Planned 0ata. +t is the real &imeDCost associated !ith an )cti it$. Record 4ctual .n(ormation for the Project using the 4ctual 0ata coming from the 3ite%

P3eCase3tud$ @ -43

-44

P3eCase3tud$ @ -44

-45

4ct .0 40M2 PRP2 C222C1@@ C222C2@@ C222C3@@ C222C4@@ C222$1@@ C222$2@@

4ct Aame Project 4dministration Preparing Project Re!uirements & 4nal9sis FormWork (Columns) RFT (Columns) Cast-in-Place Concrete (Columns) Curing Time for Columns FormWork (Slab Stairs) RFT (Slab Stairs)

0ur 1>@ 1@ > 4 3 1 1@ >

4$ 1H1H11 3H1H11 4H1H11 ;H1H11 13H1H11 1?H1H11 24H1H11 3@H1H11 U

4F

Expected Finis&

PC5

1>H1H11 11H1H11 12H1H11 1:H1H11 21H1H11 1@H2H11 ;@)@

P3eCase3tud$ @ -45

-46

Remem%er t&at 5&e Earlist Completion 0ate o( t&e Projerct 'as


@1<$ep<2@1@)

:rag the K0ata 0ateL to the morning of @1<Fe%<11 as sho!n(

P3eCase3tud$ @ -46

-47

P3eCase3tud$ @ -47

-4"

Entering 4ctuals For Completed 4cti"itieso 4ctual $tart & 4ctual Finis& 0ates o 4ctual regular UnitsHCosts o 4ctual Expense Costs

For 4cti"ities .n<Progresso 4ctual $tart 0ate o $uspend andHor Resume 0ates o Percent Complete andHor Remaining 0uration o Expected Finis& 0ates o 4ctual regular UnitsHCosts and Remaining UnitsHCosts o 4ctual and Remaining Expense Costs

P3eCase3tud$ @ -4"

-4;

P3eCase3tud$ @ -4;

-5.

Res&eduling Project & =ie'ing t&e Results-

P3eCase3tud$ @ -5.

-5-

P3eCase3tud$ @ -5-

-52

Controlling t&e Projecto .t seems t&at t&e Project is %e&id t&e target %9 > da9s)
o Repeat t&e process o( sol"ing t&is pro%lem as mentioned %e(ore)

P3eCase3tud$ @ -52

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13) Reporting Per(ormance


+n this section% We demonstrate ho! to run 6 create 5a%ular Reports as a means of reporting performance information.

:escri'e Reporting Met&ods Run a $c&edule Report Create a Resource Report !ith the Report +i3ard Create a Report using the Current *a9out Met&ods (or Per(ormance Reporting&here are man$ methods to distri'ute $c&edule% Resource% and Cost Per(ormance .n(ormation to Project 5eam.

1) 8pen the Project% CaseV11. 2) Arom the K0irector9L 'ar% click KReportsL 3) Bocate a Report Eroup 5itle Band% K$c&eduleL. 4) 7ighlight the report K$R<@3 $c&edule Report 'it& 4cti"it9
BudgetL

1) +n the KCommandL 'ar% click KRun ReportL.


/int- +&en 9ou see t&e reportD rig&t<clic, and c&oose 7$a"e 4s <<< image)jpg8

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Report +i3ard
1ou can report KResource 4ssignmentL '$ creating and printing a KResource ReportL in the KReport +i3ardL.

1) Click KReportsL from K0irecor9L 'ar. 2) 8n the KCommandL 'ar% click K4ddL% the KReport +i3ardL
displa$s.

3) Click KAextL

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4) 3elect a su'ject area% Resources. 1) Click KAextL

:) 3elect an additional su'ject area% 4cti"it9 Aote%oo,. >) Click KAextL


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;) 3elect KResources8 ?) Click KColumnsL. Choose Resource +: 6 Resource Aame. 1@)


)dd a Filter to the Report(

1) Click KFilterU8 and choose as sho!n

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2) Click 2,% the follo!ing !indo! appears(

3) &$pe a descripti e report title( CaseV11- 4ssigning


Resources to 4cti"ities

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4) Click KAextL% the follo!ing !indo! appears(

1) Click KRun ReportL.

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Creating a Report Using Current $creen &he KReport +i3ardL can also 'e used to create reports %ased on t&e
screen t&at is currentl9 "isi%le in Prima"era. &his ena'les the Oser to easil$ create a !ide ariet$ of reports '$ 'asing them on the la$out of the current screen.

1) 2) 3) 4) 1)

?a igate to the K4cti"itiesL !indo!. 3elect 6 #odif$ the Current K*a9outL. Click K5oolsHReport +i3ardL

+n the KCreate or Modi(9 ReportL !indo!% select KUse Current $creenL. Continue as usualF.

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Re(erences
Project Management .nstituteD 4 Euide to t&e Project Management Bod9 o( Mno'ledge PMP2M EuideD 2@@@ Edition 6osep& P&illipsD Project Management Pro(essional (PMP $tud9 Euide Prema"era P: Project Management Re(erence Manual 4%dalla El0aous&9 Projects 5ime Management & Controlling using Project Management $o(t'areD 0ec) 2@@;D .nstitute o( Aational PlanningD CairoD Eg9pt

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