3 DAYS FLOAT/SLACK

3 7 7 13
Activity B Activity C
6 10 10 16
4 6
ES EF
0 3
START Activity A 3
0 3
5 8
3 8 8 16
Activity D Activity E
RESOURCE BUFFERS 3 8 8 16

FORWARD PASS // BACKWARD PASS RESOURCE BUFFERS

CRITICAL PATH 32 DAYS TO DELIVER
THE CRITICAL CHAIN METHOD
SCHEDULE COMPRESSION TECHNIQUES
RESOURCE OPT
LEAD AND LAG

1 FASTRACK RISK!!!
2 CRASH $$$$$!!!!
3 RESOURCE REALLOCATION
4 CUT QUALITY
5 TRADE - OFF
 ESTIMATION TECHNIQUES

1 ANALOGUS ESTIMATION
FEEDING BUFFER

16 25
9 Activity F END 2 PARAMETRIC EST
16 25
LS LF

PROJECT BUFFER

RESOURCE BUFFERS 3 THREE POINT ESTIMATION

S TO DELIVER

4 BETA DISTRIBUTION / PERT ANA

5 HEURISTICS
STIMATION TECHNIQUES

ANALOGUS ESTIMATION COPY/PASTE

HISTORITCAL DATA = POINT OF REF

MARAN = 10 DAYS $1000
MY EST 10 DAYS $1000

PARAMETRIC EST MATH!!

HISTORITCAL DATA = POINT OF REF
MARAN = 10 DAYS $1000 1000 SQ FT
MY EST 9 DAYS $900 900 SQ FT

THREE POINT ESTIMATION AVERAGE

O ML P
4 12 25
(O+ML+P)/3
13.67 ESTIMATION

BETA DISTRIBUTION / PERT ANALYSIS

O ML P
4 12 25
(O+(4*ML)+P)/6
12.83 ESTIMATION

HEURISTICS
 EARNED VALUE MANAGEMENT
1 EARNED VALUE = % OF WORK COMPLETE x BUDGET EV
2 ACTUAL COST = EXPENCES (DIRECT/INDIRECT/VARIABLE) AC
3 PLANNED VALUE = S CURVE PV
AFTER 30 MINS

$10/HOUR
1 HOUR

AFTER 30 MINS AFTER 30 MINS

AHEAH OF SCHEDULE
UNDER BUDGET

EXAMPLE PROJECT
DURATION 10 DAYS
BUDGET $ 10,000.00

PLANNING PV EXECUTION EV AC
1 DAY 0% $ - 0% $ - $ 100.00
2 DAY 5% $ 500.00 3% $ 300.00 $ 500.00
3 DAY 10% $ 1,000.00 7% $ 700.00 $ 750.00
4 DAY 15% $ 1,500.00 15% $ 1,500.00 $ 1,000.00
5 DAY 15% $ 1,500.00 15% $ 1,500.00 $ 1,250.00
6 DAY 10% $ 1,000.00 10% $ 1,000.00 $ 1,500.00
7 DAY 10% $ 1,000.00 10% $ 1,000.00 $ 1,600.00
8 DAY 20% $ 2,000.00
9 DAY 10% $ 1,000.00
10 DAY 5% $ 500.00

$ 6,500.00 60% $ 6,000.00 $ 6,700.00

VARIATION
COST VARIANCE CV EV-AC $ -700.00 NEGATIVE IS BAD // POSITIVE IS GOOD
SCHEDULE VARIANCE SV EV-PV $ -500.00 NEGATIVE IS BAD // POSITIVE IS GOOD

INDEX
COST PERF INDEX CPI EV/AC 0.90 RETURN ON EVERY DOLLAR INVESTED
SCHEDULE PERF IND SPI EV/PV 0.92 EFFICIENCY OF EXECUTION

SCHEDULE FORCAST 11 DAYS

COST FORECAST $ 11,111.11
AFTER 30 MINS

ON TRACK!
SCHEDULE
COST

AFTER 30 MINS

BEHIND SCHEDULE
OVER BUDGET
POSITIVE IS GOOD
POSITIVE IS GOOD

DOLLAR INVESTED LESS THAN 1 IS BAD // MORE THAN 1 IS GOOD

LESS THAN 1 IS BAD // MORE THAN 1 IS GOOD