- A project is a finite endeavor (having specific start and completion dates) – Define exactly the problem you want
ant to solve or the benefit you want to • The WBS includes both management work and technical work.
undertaken to create a unique product or service which brings about
beneficial change or added value.
-This finite characteristic of projects stands in sharp contrast to processes,
or operations, which are permanent or semi-permanent functional work to
repetitively produce the same product or service.
The project value chain:
PROBLEM- From strategy
PROJECT – Response to problem
PRODUCT – Value created by project
OUTCOME- Strategic Value delivered by product
• Project life- cycles define scope-oriented processes : Should vary by
project type and management complexity.
PROJECT LIFE CYCLE:
-Concept
-Design
-Construction
-Turnover
Project management is the art of directing and coordinating human and
material resources throughout the life of a project by using modern
management techniques to achieve predetermined objectives of scope,
cost, time, quality and participation satisfaction.
AGE OF PROJECT MANAGEMENT:
-Corporate downsizing
-Global Competition
-Knowledge explosion
-Small projects represent big problems
-Rapid development of Third World and closed economies
-Increased customer focus
-Compression of product lifecycle
Sources from which the project management framework evolves:
-A working knowledge of general management
-familiarity with the special knowledge domain related to the project are
indispensable.
-Supporting disciplines such as computer science and decision science
may also play an important role.
PROJECT MANAGEMENT:
-The application of knowledge, skills, tools and techniques….., to meet or
succeed stakeholders requirements from a project
-There are potential conflicts between the stated objectives with regard to
scope, cost, time and quality, and the constraints.
-These conflicts should be resolved at the onset of a project by making the
necessary tradeoffs or creating new alternatives .
Five Project Management Processes 1. Defining the goal of the project
(initiating process) 2. Planning a project 3. Executing the project : leading
people 4. Controlling the project 5. Completing the project : closing
DEFINING THE GOAL OF THE PROJECT:
o Linking the project to the Product
o Balancing competing demand with the triple constraint
o Contract, negotiating, proposal.
PLANNING THE PROJECT:
o Integrated planning
o The work breakdown structure.
o Scheduling
o Time estimating and compressing the schedule
o Cost estimating and budgeting
o Project risks
PROJECT EXECUTION:
o Leading people who will work on.
o Organizational design for delivering projects
o Building the project team
o Organizing the support team commitment coordination
o The role of project management
o Establishing the theory of motivation and their implication management
by objectives
o Establishing practical tips for project management communication
o Organizing conflict resolution
CONTROLLING THE PROJECT:
o Develop a baseline and performance measurement
o Develop a performance measurement system.
o Managing time, cost, quality, change, risks, issues, suppliers, customers
and communication
o Project reviews
COMPLETING THE PROJECT:
Closing the contract
• acceptance
• documentation
• Lesson learned
• Intellectual propriety and ownership rights.
Scope –oriented processes are concerned with specifying and creating the
product (product scope) Work-oriented processes are concerned with
identifying, describing, and organizing project activities (project scope)
Many organization provide standardized guidance for one or both.
Project management -TIPS:
-Project management discipline involves :
-Focusing on the important factors that drive project success.
-Avoiding the trap of staying in your personal comfort zone
-Having the personal backbone to withstand the criticism of undisciplined,
impatient people.
Stakeholders analysis:
-Stakeholders must be identified, have their needs and expectations
understood and
-Must be managed, and be communicated with frequently in order to
complete the project successfully
-Use a project stakeholder analysis worksheet
STAKEHOLDER CATEGORY CHECKLIST:
• Doers — those who are active participants in the work of the project.
• Customers - those who provide financial and other resources.
• Users — those who will use the product of the project.
• Sponsors : those who give visibility and resources to the project.
• Dependents — those who need an interim work item from the project.
• Sustainers — those who will support the product of the project in use.
• Auditors — those who will verify compliance with applicable standards.
• In-laws — those who are affected by the actions of the other
stakeholders
The PM Primary Responsibility: Keep the clients satisfied that they will
continue to fund the project.
THE PM RESPONSIBILITIES:
-Manage stakeholders relationship.
-Manage development of the plan for the project
-Manage project progress
-Manage product acceptance
-Manage project transition
PM INTERPERSONAL SKILLS:
1. Effective communication : the exchange of information 2. Influence the
organization : the ability to get job done
3. Leadership : developing a vision and strategy, and motivating people to
achieve the vision
4. Motivation : energizing people to overcome barriers to change
5. Negotiation and conflict management : to reach an agreement
6. Problem solving : the combination of problem definition, alternatives
identification and analysis, and decision making
CHAPTER 2:
INITIATION PROCESS: To verify assumptions and projections made
during origination and to define and authorize the project.
-Consider project as organizational investments than as operational
expenses
-Project managers support top management by providing much of data
that allow them make decision
-Good project manager understand the relationship of his project to the
goals of organization
-If the project is a weak business case, prepare to recommend its
termination so the organization can redeploy the resources on other
project.
Problem, Product and project scope • The first step is to determine what
exactly is the problem or advantage you are hoping to achieve.
– Identify stakeholders and expectations
– Gather information from stakeholders as to their requirements
gain
– Define scope – how much do we want to do/ what won‟t we do?
– Complete risk assessment
– what is the worst that could happen? How likely is it?
Assumptions and constraints: – Factors that, for planning purposes, the
team will treat as certain. – Imposed factors that will limit the team’s
options.
Exclusions — anything the customer might reasonably expect that won’t
be delivered as part of this project by this project team.
Product Scope
• Identifies the product of the project: – What will we do to relieve the
problem?
– Why did we choose this solution?
-The best way to do this is to divide requirements into: Must have, Should
have, Like to have.
- •The “product of the project” any verifiable result!
PROJECT SCOPE:
-1-Project objectives : define the major objectives to meet your customer
-2-Deliverables : define the major deliverable( include time, quantity, cost
estimate ) or expected outputs over the life of the project.
3-Milestones : is a significant event of a project at point in time and an
important point of control
4-Technical requirements : speed of an engine , standards, codes
5-Limits and exclusion : limits of scope should be defined
–Review with customers (internal - external) to make sure for the
understanding of agreement and expectations
TRIPLE CONSTRAINTS:
-SCHEDULE CONSTRAINT
-COST CONSTRAINTS
-PRODUCT CONSTRAINTS
STATEMENT OF WORK: SOW
-The customer issue a SOW and is one way to communicate specific,
measurable expectations for the project
• SOW : a portion of a certain formal contracts that describes the
requested work
• SOW : contains explicit acceptance criteria
Product Success: Factors to Consider: • Bottom line impact — cost
reduction or revenue generation
• Operational impact — performance measures
-Market impact — share or platform potential
SAMPLE PRODUCT SUCCESS CRITERIA
• Capture market share of 20% within 9 months
• Generate revenue of $3.5 million within 6 months
• Save $500,000 per year in maintenance costs
• Have 3 positive reviews appear in trade journals before June
• Equipment is still operating to spec after 12 months in use
SAMPLE PM SUCCESS CRITERIA
• Project cost — completed within 10% of approved budget.
• Project schedule — completed by originally scheduled date.
• Product specifications — 100% of “must have” features delivered.
• Stakeholder experience — no overtime.
• Project Definition Document : – Project Charter (Terms of Reference)
details what the project will deliver, what are constraints and assumptions
– Preliminary Problem, Product and Project Scope Document
– Confirmation the project should continue.
-It is important that a sponsor group signs off this document as it is your
mandate to continue with the project. It may also result in an approved
Business Case for funding.
CHAPTER 3:
Parker’s Proverb: Planning is like insurance. It’s too expensive until you
need it, and then it’s too late.
WHY PLAN?
-As much or as little as you need to demonstrate to stakeholders that you
have thought of everything, and have a plan to get there.
-The better we plan, the better we can execute on time and within budget
to meet customer expectations and organizational objectives.
--To manage Project we need constructing a model
-The model can be simple or complex
-The Triple constraint ( time, cost, performance) is a simple three element
model
of a project system.
Your plan may include:
• Introduction
– Overview,
– Deliverables,
– Constraints,
– Definitions
• Management structure
– Project reporting,
– Communication Plan,
– Risk Management,
– Change management
• Planning
– Activity schedule
– Resource identification,
– Resource allocation
– Project Charter,
– Quality Assurance Plan,
– Test and/or Training plans,
– Implementation Plan.
Building a Foundation for Success
• If the problem is poorly defined — limit scope and work to defining it!
• If the solution is not clear — limit scope and work to analyzing options
and recommending one!
PLANNING PROCESS:
In the early phases: this is preparing the Project Management Plan and
defining exactly what will happen.
In later phases : it is ensuring that the earlier planning is still valid, and
incorporating any changes in resources or contingencies arising.
PROJECT PLANNING PROCESS: 1.Setting the project start date
2. Setting the project completion date
3. Selecting the project methodology or project life cycle to be used.
4.Determining the scope of the project in terms of the phases of the
selected project methodology or project life cycle.
5.Identifying any predetermined interim milestone or other critical dates
which must be met.
6.Listing tasks, by project phase, in the order in which they might be
accomplished.
7. Estimating the personnel necessary to accomplish each task
8. Determining skill level necessary to perform each task
9. Determining task dependencies - Which tasks can be done in parallel -
Which tasks require the completion of other tasks before they can start.
Integrated Project planning •Integration is a process of synthesizing
different concepts into a unified Whole
•Project management is primarily an interactive activity: -Most product
failure is at the interface of subsystems
-The biggest complaint of people in projects is poor communications
-Senior managers expect PM taking a strategic and holistic perspective on
the project •We adopt the model published by the Project Management
Institute
THREE INTEGRATIVE PROCESS:
1-Developing the project plan : integrating the requirements that comprise
the product scope with activities that comprise work scope while
establishing plans for cost, time,quality,risk,communication,huma n
resources and procurement.
2-executing the project plan : Now that the project has ―planned its work‖,
it is time to ―work its plan‖, and the execution is systematic
3-Managing the change to the plan : all projects encountered changes that
are different from assumptions on wich the plan was based. These change
needs to be managed and in an integrated way.
A work breakdown structure(WBS) is a hierarchic decomposition or
breakdown of a project or major activity into successive levels, in which
each level is a finer breakdown of the preceding one.
• The WBS may be drawn in a diagrammatic form (if automated tools are
available) or in a chart resembling an outline.
• A structured definition of all the work of a project: – The things we have
to do. – The documents we have to produce. – Any other tangible items
we have to create.
• Deliverables may also be called: – Sub-deliverables  Cost accounts –
Outputs  Significant – Work packages accomplishments
• Activities may also be called: – Tasks – Work packages
• Collectively, they are called work-items.
USING THE WBS:
• Activities will be used as inputs to: – Effort and cost estimating –
Sequencing and scheduling
• Deliverables may be used as: – Scheduling milestones – Progress
measurement check points
DEVELOPING A WBS:
1. Get the appropriate stakeholders together.
2. Organize the first level according to how the work will be done or
managed.
3. Add a branch for project management deliverables and activities.
4. Generate additional detail for all branches.
5. Arrange related items into a hierarchy.
6. Edit and revise as needed.
1. Get the appropriate stakeholders in a room together; for example: –
Team members – Subject matter experts – Contractors – Customer or
client representative.
2. Organize the first level according to how the work will be done or
managed:
– By project life-cycle phase — if multiple phases are being planned.
– By key component — for a single phase project or when the phases are
not the same for all key components.
– By some other logical grouping — if phase or key component is not
appropriate.
3. Add a branch for project management deliverables and activities.
4. Generate additional detail for all branches by asking:
– What are the things we have to do?
– What are the documents we have to produce?
– What are the other tangible items we have to create?
5. Arrange related items into a hierarchy:
– A ―child‖ has only one ―parent.
– Lower level items in each branch are both necessary and sufficient to
create upper level.
6. Edit and revise as needed so that:
– Deliverables are nouns (e.g., ―requirements document‖).
– Activities have a verb and a noun (e.g., ―write requirements‖).
WBS — Tips & Tricks
• Decompose as much as you can now; revisit detail as needed.
• Remember to include a branch for project management!
• Characteristics of the lowest level: – One clear owner – Able to estimate
effort and duration
• Developing a WBS can be a real challenge if: – You don’t understand the
scope. – The scope is poorly defined.
• The activities (lowest level) should be the same regardless of how the
deliverables (upper levels) are organized.
Network Diagrams Activity scheduling
• The most popular method is called Activity on Node or activity on Arrow.
• The task (activity) is represented by a node or Arrow, which also shows
the time expected.
• Take the list of tasks from your Work Breakdown Structure
• Determine any tasks that depend on other tasks.
• Attach resources to each task (people cannot do two jobs at once).
• Determine the timeline for the project
WHAT DO WE ESTIMATE?
• Effort — labor units required to complete an assignment; usually hours of
a person’s time.
• Duration — work periods required to complete an assignment.
• Elapsed time — calendar periods required to complete an assignment.
• Cost — monetary value of labor, materials, and contracts.
FOR WHAT PURPOSES?
• Funding estimates — preliminary approximations used to guide approval
decisions: – Not a project budget – Not a project management control
• Working estimates — more detailed, more reliable predictions used to
manage the work of the project.
ESTIMATE PROCESS: FACTORS TO CONSIDER:
• Planning Horizon : the quality estimates of the current events are close to
100% accurate but are reduced for more distant events.
• Long duration Project increases uncertainty in estimates
• A new technology : implementing a new technology with a poor written
scope specifications result in errors in estimating
1-People : Accuracy of estimates depends on the skills of people making
the estimates
-How people skills are near to the work to do?
-Team harmony ?
2-Project Structure : the type of project structure chosen influence time
and cost estimates ( Example : a dedicated project team is speedy but
costly as a permanent structure.
3-Other non-project factors : Holidays, legal limits
4- Responsibility: estimates should be done by persons most familiar with
the task
5-Delphi estimating Method : Use several persons to estimate and find
consensus 6-Time unit : specific time units to use should be selected early
in the development phase
7-Adding risk assessment to the estimates : help to avoid surprises to
stakeholders
The Estimating Process Review • Define and document: – Work to be
done (based on scope) – Assumptions (about scope or work) – Range of
possible outcomes – Relevant supporting detail • Review and revise as
necessary
COSTING:
The easiest way to cost the project is to take the WBS and estimate the
costs of each activity. Other considerations include capital costs,
disbursements, costs of delays, contingencies.
PROBABLE TIME ESTIMATE:
is a management tool that is suited for research and development projects
which are generally non-repetitive in nature and is sometime called ―
once through projects.
Three time estimates namely
1. Optimistic time-estimated minimum time an activity will it take. Its
probability is about 1 in 100 or 1%
2. Most Likely or probabilistic time- the estimated normal length of time an
activity takes. This is the time expected that will most frequently required
for an activity.
3. Pessimistic time-the estimated maximum time that will be required
under the worst conditions. Its probability is about -1 in 100 or 1% .
Expected Value-is the weighted average of all possible values that this
random variable can take on.
• Variance-is a measure of how far a set of numbers is spread out. It is one
of several descriptors of a probability distribution, describing how far the
numbers lie from the mean(expected value).
• Standard Deviation-measure of variability or diversity used in statistics
and probability.
FOUR PROJECT BASELINES:
• Scope baseline = progressively detailed product description
• Stakeholder satisfaction baseline = project success criteria
• Cost baseline = budget
• Schedule baseline = schedule.
The network path:
– Which is most likely to cause the project to be late.
– With the longest duration.
– Which determines the shortest total length of the project.
– With the least amount of “float”
* Critical Path- the longest route in the network of activities representing a
project.
Activities along the critical path are called Critical activities of the project
that may result of the delay in the entire project.
* Earliest start (ES)- This is always equal to the earliest event at the
beginning of an arrow which is sometimes called i-node. The point of an
arrow is called j-node.
- It is the first day after the physical assumption of the activity.
-Earliest Finish (EF). This is the earliest possible time that an activity can
be finished. It is equal to its earliest start plus its duration or time.
Therefore: EF = ES + duration.
-Latest Start(LS). This is the latest time that an activity can begin and not
delay the completion time of the overall project.
If the earliest start and latest start times are the same then the activity is
critical.
-Latest Finish(LF). This is the latest time that an activity can be finished
and not delay the completion time of the overall project. LS = LF-duration.
Total Float(TF)- The span of time an activity can be delayed after its
earliest start time without delaying the project completion. This is the
difference between the earliest start time and the latest start time. TF = LF-
EF or TF= LS-ES
Free Float (FF)- The span of time an activity can be delayed after its ES
without delaying the ES of any succeeding actual activity that may be
availed. It is equal to the ES of any of its succeeding real activities minus
the EF of an activity in question. This is also equal to the earliest time at
the i-node of the next succeeding real activity minus the EF of the activity.
FF=ES-(ES + duration).
• Forward pass — to determine the project’s ―natural end date‖ based on
its early start and early finish dates.
• Backward pass — to determine late start and late finish dates.
Total (Path) Float • The amount of time an activity may be delayed without
affecting the project’s currently predicted early finish date.
• Total (Path) Float = Late Start – Early Start • Total (Path) Float is a
measure of scheduling flexibility.
Two Kinds of Schedule!
• Preliminary schedule: – Used for enterprise resource planning, project
approvals – Produced when specific resources are not yet known, start
date not yet confirmed
• Baseline schedule: – Used for project planning and control – Produced
when resource availability is confirmed, start date is set.
Building a Preliminary Schedule
• For effort-based activities, calculate the expected duration: – Budgeted
effort hours / hours per period / percent available – Example: 24 hours / 6
work hours per day / 50% available = 8 days duration
• For all other activities, use historical information or your best judgment.
Building a Schedule Baseline • Determine elapsed time based on the
availability of the assigned resource: – Update effort estimate where
appropriate. – Consider holidays and vacations. – Consider anything else
that might affect availability.
• Use project management software for any non-trivial project.
Scheduling PERT METHOD:
The project planning process consists of the following:
1. Setting the project start date
2. Setting the project completion date
3. Identifying any predetermined interim milestone or other critical dates
which must be met.
4. Listing tasks, by project phase, in the order in which they might be
accomplished.
5- Estimating the personnel necessary to accomplish each task
6- Determining task dependencies - Which tasks can be done in parallel -
Which tasks require the completion of other tasks before they can start
7- Te : weighted average estimated time : Te = (a+4m+b)/6 a: optimistic
activity time b : pessimistic activity time m: most likely activity time
-PERT developed in the 1950s to control large defense projects, and have
been used routinely since then.
-'Critical Path Analysis' sounds very complicated, but it's a very logical and
effective method for planning and managing complex projects.
- A project is a finite endeavor (having specific start and
completion dates) undertaken to create a unique product or
service which brings about beneficial change or added value.
-This finite characteristic of projects stands in sharp contrast to
processes, or operations, which are permanent or semi-
permanent functional work to repetitively produce the same
product or service.
The project value chain:
PROBLEM- From strategy
PROJECT – Response to problem
PRODUCT – Value created by project
OUTCOME- Strategic Value delivered by product
• Project life- cycles define scope-oriented processes : Should
vary by project type and management complexity.
PROJECT LIFE CYCLE:
-Concept
-Design
-Construction
-Turnover
Project management is the art of directing and coordinating
human and material resources throughout the life of a project by
using modern management techniques to achieve
predetermined objectives of scope, cost, time, quality and
participation satisfaction.
AGE OF PROJECT MANAGEMENT:
-Corporate downsizing
-Global Competition
-Knowledge explosion
-Small projects represent big problems
-Rapid development of Third World and closed economies
-Increased customer focus
-Compression of product lifecycle
Sources from which the project management framework
evolves:
-A working knowledge of general management
-familiarity with the special knowledge domain related to the
project are indispensable.
-Supporting disciplines such as computer science and decision
science may also play an important role.
PROJECT MANAGEMENT:
-The application of knowledge, skills, tools and techniques….., to
meet or succeed stakeholders requirements from a project
-There are potential conflicts between the stated objectives with
regard to scope, cost, time and quality, and the constraints.
-These conflicts should be resolved at the onset of a project by
making the necessary tradeoffs or creating new alternatives .
Five Project Management Processes 1. Defining the goal of the
project (initiating process) 2. Planning a project 3. Executing the
project : leading people 4. Controlling the project 5. Completing
the project : closing
DEFINING THE GOAL OF THE PROJECT:
o Linking the project to the Product
o Balancing competing demand with the triple constraint
o Contract, negotiating, proposal.
PLANNING THE PROJECT:
o Integrated planning
o The work breakdown structure.
o Scheduling
o Time estimating and compressing the schedule
o Cost estimating and budgeting
o Project risks
PROJECT EXECUTION:
o Leading people who will work on.
o Organizational design for delivering projects
o Building the project team
o Organizing the support team commitment coordination
o The role of project management
o Establishing the theory of motivation and their implication
management by objectives
o Establishing practical tips for project management
communication
o Organizing conflict resolution
CONTROLLING THE PROJECT:
o Develop a baseline and performance measurement
o Develop a performance measurement system.
o Managing time, cost, quality, change, risks, issues, suppliers,
customers and communication
o Project reviews
COMPLETING THE PROJECT:
Closing the contract
• acceptance
• documentation
• Lesson learned
• Intellectual propriety and ownership rights.
Scope –oriented processes are concerned with specifying and
creating the product (product scope) Work-oriented processes
are concerned with identifying, describing, and organizing
project activities (project scope)
Many organization provide standardized guidance for one or
both.
Project management -TIPS:
-Project management discipline involves :
-Focusing on the important factors that drive project success.
-Avoiding the trap of staying in your personal comfort zone
-Having the personal backbone to withstand the criticism of
undisciplined, impatient people.
Stakeholders analysis:
-Stakeholders must be identified, have their needs and
expectations understood and
-Must be managed, and be communicated with frequently in
order to complete the project successfully
-Use a project stakeholder analysis worksheet
STAKEHOLDER CATEGORY CHECKLIST:
• Doers — those who are active participants in the work of the
project.
• Customers - those who provide financial and other resources.
• Users — those who will use the product of the project.
• Sponsors : those who give visibility and resources to the
project.
• Dependents — those who need an interim work item from the
project.
• Sustainers — those who will support the product of the project
in use.
• Auditors — those who will verify compliance with applicable
standards.
• In-laws — those who are affected by the actions of the other
stakeholders
The PM Primary Responsibility: Keep the clients satisfied that
they will continue to fund the project.
THE PM RESPONSIBILITIES:
-Manage stakeholders relationship.
-Manage development of the plan for the project
-Manage project progress
-Manage product acceptance
-Manage project transition
PM INTERPERSONAL SKILLS:
1. Effective communication : the exchange of information 2.
Influence the organization : the ability to get job done
3. Leadership : developing a vision and strategy, and motivating
people to achieve the vision
4. Motivation : energizing people to overcome barriers to change
5. Negotiation and conflict management : to reach an agreement
6. Problem solving : the combination of problem definition,
alternatives identification and analysis, and decision making
CHAPTER 2:
INITIATION PROCESS: To verify assumptions and projections
made during origination and to define and authorize the project.
-Consider project as organizational investments than as
operational expenses
-Project managers support top management by providing much
of data that allow them make decision
-Good project manager understand the relationship of his
project to the goals of organization
-If the project is a weak business case, prepare to recommend its
termination so the organization can redeploy the resources on
other project.
Problem, Product and project scope • The first step is to
determine what exactly is the problem or advantage you are
hoping to achieve.
– Identify stakeholders and expectations
– Gather information from stakeholders as to their requirements
– Define exactly the problem you want to solve or the benefit
you want to gain
– Define scope – how much do we want to do/ what won‟t we
do?
– Complete risk assessment
– what is the worst that could happen? How likely is it?
Assumptions and constraints: – Factors that, for planning
purposes, the team will treat as certain. – Imposed factors that
will limit the team’s options.
Exclusions — anything the customer might reasonably expect
that won’t be delivered as part of this project by this project
team.
Product Scope
• Identifies the product of the project: – What will we do to
relieve the problem?
– Why did we choose this solution?
-The best way to do this is to divide requirements into: Must
have, Should have, Like to have.
- •The “product of the project” any verifiable result!
PROJECT SCOPE:
-1-Project objectives : define the major objectives to meet your
customer
-2-Deliverables : define the major deliverable( include time,
quantity, cost estimate ) or expected outputs over the life of the
project.
3-Milestones : is a significant event of a project at point in time
and an important point of control
4-Technical requirements : speed of an engine , standards, codes
5-Limits and exclusion : limits of scope should be defined
–Review with customers (internal - external) to make sure for
the understanding of agreement and expectations
TRIPLE CONSTRAINTS:
-SCHEDULE CONSTRAINT
-COST CONSTRAINTS
-PRODUCT CONSTRAINTS
STATEMENT OF WORK: SOW
-The customer issue a SOW and is one way to communicate
specific, measurable expectations for the project
• SOW : a portion of a certain formal contracts that describes the
requested work
• SOW : contains explicit acceptance criteria
Product Success: Factors to Consider: • Bottom line impact —
cost reduction or revenue generation
• Operational impact — performance measures
-Market impact — share or platform potential
SAMPLE PRODUCT SUCCESS CRITERIA
• Capture market share of 20% within 9 months
• Generate revenue of $3.5 million within 6 months
• Save $500,000 per year in maintenance costs
• Have 3 positive reviews appear in trade journals before June
• Equipment is still operating to spec after 12 months in use
SAMPLE PM SUCCESS CRITERIA
• Project cost — completed within 10% of approved budget.
• Project schedule — completed by originally scheduled date.
• Product specifications — 100% of “must have” features
delivered.
• Stakeholder experience — no overtime.
• Project Definition Document : – Project Charter (Terms of
Reference) details what the project will deliver, what are
constraints and assumptions
– Preliminary Problem, Product and Project Scope Document
– Confirmation the project should continue.
-It is important that a sponsor group signs off this document as it
is your mandate to continue with the project. It may also result
in an approved Business Case for funding.
CHAPTER 3:
Parker’s Proverb: Planning is like insurance. It’s too expensive
until you need it, and then it’s too late.
WHY PLAN?
-As much or as little as you need to demonstrate to stakeholders
that you have thought of everything, and have a plan to get
there.
-The better we plan, the better we can execute on time and
within budget to meet customer expectations and organizational
objectives.
--To manage Project we need constructing a model
-The model can be simple or complex
-The Triple constraint ( time, cost, performance) is a simple three
element model
of a project system.
Your plan may include:
• Introduction
– Overview,
– Deliverables,
– Constraints,
– Definitions
• Management structure
– Project reporting,
– Communication Plan,
– Risk Management,
– Change management
• Planning
– Activity schedule
– Resource identification,
– Resource allocation
– Project Charter,
– Quality Assurance Plan,
– Test and/or Training plans,
– Implementation Plan.
Building a Foundation for Success
• If the problem is poorly defined — limit scope and work to
defining it!
• If the solution is not clear — limit scope and work to analyzing
options and recommending one!
PLANNING PROCESS:
In the early phases: this is preparing the Project Management
Plan and defining exactly what will happen.
In later phases : it is ensuring that the earlier planning is still
valid, and incorporating any changes in resources or
contingencies arising.
PROJECT PLANNING PROCESS: 1.Setting the project start date
2. Setting the project completion date
3. Selecting the project methodology or project life cycle to be
used.
4.Determining the scope of the project in terms of the phases of
the selected project methodology or project life cycle.
5.Identifying any predetermined interim milestone or other
critical dates which must be met.
6.Listing tasks, by project phase, in the order in which they might
be accomplished.
7. Estimating the personnel necessary to accomplish each task
8. Determining skill level necessary to perform each task
9. Determining task dependencies - Which tasks can be done in
parallel - Which tasks require the completion of other tasks
before they can start.
Integrated Project planning •Integration is a process of
synthesizing different concepts into a unified Whole
•Project management is primarily an interactive activity: -Most
product failure is at the interface of subsystems
-The biggest complaint of people in projects is poor
communications
-Senior managers expect PM taking a strategic and holistic
perspective on the project •We adopt the model published by
the Project Management Institute
THREE INTEGRATIVE PROCESS:
1-Developing the project plan : integrating the requirements that
comprise the product scope with activities that comprise work
scope while establishing plans for cost,
time,quality,risk,communication,huma n resources and
procurement.
2-executing the project plan : Now that the project has
―planned its work‖, it is time to ―work its plan‖, and the
execution is systematic
3-Managing the change to the plan : all projects encountered
changes that are different from assumptions on wich the plan
was based. These change needs to be managed and in an
integrated way.
A work breakdown structure(WBS) is a hierarchic decomposition
or breakdown of a project or major activity into successive
levels, in which each level is a finer breakdown of the preceding
one.
• The WBS may be drawn in a diagrammatic form (if automated
tools are available) or in a chart resembling an outline.
• A structured definition of all the work of a project: – The things
we have to do. – The documents we have to produce. – Any
other tangible items we have to create.
• The WBS includes both management work and technical work.
• Deliverables may also be called: – Sub-deliverables  Cost
accounts – Outputs  Significant – Work packages
accomplishments
• Activities may also be called: – Tasks – Work packages
• Collectively, they are called work-items.
USING THE WBS:
• Activities will be used as inputs to: – Effort and cost estimating
– Sequencing and scheduling
• Deliverables may be used as: – Scheduling milestones –
Progress measurement check points
DEVELOPING A WBS:
1. Get the appropriate stakeholders together.
2. Organize the first level according to how the work will be done
or managed.
3. Add a branch for project management deliverables and
activities.
4. Generate additional detail for all branches.
5. Arrange related items into a hierarchy.
6. Edit and revise as needed.
1. Get the appropriate stakeholders in a room together; for
example: – Team members – Subject matter experts –
Contractors – Customer or client representative.
2. Organize the first level according to how the work will be done
or managed:
– By project life-cycle phase — if multiple phases are being
planned.
– By key component — for a single phase project or when the
phases are not the same for all key components.
– By some other logical grouping — if phase or key component is
not appropriate.
3. Add a branch for project management deliverables and
activities.
4. Generate additional detail for all branches by asking:
– What are the things we have to do?
– What are the documents we have to produce?
– What are the other tangible items we have to create?
5. Arrange related items into a hierarchy:
– A ―child‖ has only one ―parent.
– Lower level items in each branch are both necessary and
sufficient to create upper level.
6. Edit and revise as needed so that:
– Deliverables are nouns (e.g., ―requirements document‖).
– Activities have a verb and a noun (e.g., ―write requirements‖).
WBS — Tips & Tricks
• Decompose as much as you can now; revisit detail as needed.
• Remember to include a branch for project management!
• Characteristics of the lowest level: – One clear owner – Able to
estimate effort and duration
• Developing a WBS can be a real challenge if: – You don’t
understand the scope. – The scope is poorly defined.
• The activities (lowest level) should be the same regardless of
how the deliverables (upper levels) are organized.
Network Diagrams Activity scheduling
• The most popular method is called Activity on Node or activity
on Arrow.
• The task (activity) is represented by a node or Arrow, which
also shows the time expected.
• Take the list of tasks from your Work Breakdown Structure
• Determine any tasks that depend on other tasks.
• Attach resources to each task (people cannot do two jobs at
once).
• Determine the timeline for the project
WHAT DO WE ESTIMATE?
• Effort — labor units required to complete an assignment;
usually hours of a person’s time.
• Duration — work periods required to complete an assignment.
• Elapsed time — calendar periods required to complete an
assignment.
• Cost — monetary value of labor, materials, and contracts.
FOR WHAT PURPOSES?
• Funding estimates — preliminary approximations used to
guide approval decisions: – Not a project budget – Not a project
management control
• Working estimates — more detailed, more reliable predictions
used to manage the work of the project.
ESTIMATE PROCESS: FACTORS TO CONSIDER:
• Planning Horizon : the quality estimates of the current events
are close to 100% accurate but are reduced for more distant
events.
• Long duration Project increases uncertainty in estimates
• A new technology : implementing a new technology with a
poor written scope specifications result in errors in estimating
1-People : Accuracy of estimates depends on the skills of people
making the estimates
-How people skills are near to the work to do?
-Team harmony ?
2-Project Structure : the type of project structure chosen
influence time and cost estimates ( Example : a dedicated project
team is speedy but costly as a permanent structure.
3-Other non-project factors : Holidays, legal limits
4- Responsibility: estimates should be done by persons most
familiar with the task
5-Delphi estimating Method : Use several persons to estimate
and find consensus 6-Time unit : specific time units to use should
be selected early in the development phase
7-Adding risk assessment to the estimates : help to avoid
surprises to stakeholders
The Estimating Process Review • Define and document: – Work
to be done (based on scope) – Assumptions (about scope or
work) – Range of possible outcomes – Relevant supporting detail
• Review and revise as necessary
COSTING:
The easiest way to cost the project is to take the WBS and
estimate the costs of each activity. Other considerations include
capital costs, disbursements, costs of delays, contingencies.
PROBABLE TIME ESTIMATE:
is a management tool that is suited for research and
development projects which are generally non-repetitive in
nature and is sometime called ― once through projects.
Three time estimates namely
1. Optimistic time-estimated minimum time an activity will it
take. Its probability is about 1 in 100 or 1%
2. Most Likely or probabilistic time- the estimated normal length
of time an activity takes. This is the time expected that will most
frequently required for an activity.
3. Pessimistic time-the estimated maximum time that will be
required under the worst conditions. Its probability is about -1 in
100 or 1% .
Expected Value-is the weighted average of all possible values
that this random variable can take on.
• Variance-is a measure of how far a set of numbers is spread
out. It is one of several descriptors of a probability distribution,
describing how far the numbers lie from the mean(expected
value).
• Standard Deviation-measure of variability or diversity used in
statistics and probability.
FOUR PROJECT BASELINES:
• Scope baseline = progressively detailed product description
• Stakeholder satisfaction baseline = project success criteria
• Cost baseline = budget
• Schedule baseline = schedule.
The network path:
– Which is most likely to cause the project to be late.
– With the longest duration.
– Which determines the shortest total length of the project.
– With the least amount of “float”
* Critical Path- the longest route in the network of activities
representing a project.
Activities along the critical path are called Critical activities of the
project that may result of the delay in the entire project.
* Earliest start (ES)- This is always equal to the earliest event at
the beginning of an arrow which is sometimes called i-node. The
point of an arrow is called j-node.
- It is the first day after the physical assumption of the activity.
-Earliest Finish (EF). This is the earliest possible time that an
activity can be finished. It is equal to its earliest start plus its
duration or time. Therefore: EF = ES + duration.
-Latest Start(LS). This is the latest time that an activity can begin
and not delay the completion time of the overall project.
If the earliest start and latest start times are the same then the
activity is critical.
-Latest Finish(LF). This is the latest time that an activity can be
finished and not delay the completion time of the overall
project. LS = LF-duration.
Total Float(TF)- The span of time an activity can be delayed after
its earliest start time without delaying the project completion.
This is the difference between the earliest start time and the
latest start time. TF = LF-EF or TF= LS-ES
Free Float (FF)- The span of time an activity can be delayed after
its ES without delaying the ES of any succeeding actual activity
that may be availed. It is equal to the ES of any of its succeeding
real activities minus the EF of an activity in question. This is also
equal to the earliest time at the i-node of the next succeeding
real activity minus the EF of the activity. FF=ES-(ES + duration).
• Forward pass — to determine the project’s ―natural end date‖
based on its early start and early finish dates.
• Backward pass — to determine late start and late finish dates.
Total (Path) Float • The amount of time an activity may be
delayed without affecting the project’s currently predicted early
finish date.
• Total (Path) Float = Late Start – Early Start • Total (Path) Float
is a measure of scheduling flexibility.
Two Kinds of Schedule!
• Preliminary schedule: – Used for enterprise resource planning,
project approvals – Produced when specific resources are not
yet known, start date not yet confirmed
• Baseline schedule: – Used for project planning and control –
Produced when resource availability is confirmed, start date is
set.
Building a Preliminary Schedule
• For effort-based activities, calculate the expected duration: –
Budgeted effort hours / hours per period / percent available –
Example: 24 hours / 6 work hours per day / 50% available = 8
days duration
• For all other activities, use historical information or your best
judgment.
Building a Schedule Baseline • Determine elapsed time based on
the availability of the assigned resource: – Update effort
estimate where appropriate. – Consider holidays and vacations.
– Consider anything else that might affect availability.
• Use project management software for any non-trivial project.
Scheduling PERT METHOD:
The project planning process consists of the following:
1. Setting the project start date
2. Setting the project completion date
3. Identifying any predetermined interim milestone or other
critical dates which must be met.
4. Listing tasks, by project phase, in the order in which they
might be accomplished.
5- Estimating the personnel necessary to accomplish each task
6- Determining task dependencies - Which tasks can be done in
parallel - Which tasks require the completion of other tasks
before they can start
7- Te : weighted average estimated time : Te = (a+4m+b)/6 a:
optimistic activity time b : pessimistic activity time m: most likely
activity time
-PERT developed in the 1950s to control large defense projects,
and have been used routinely since then.
-'Critical Path Analysis' sounds very complicated, but it's a very
logical and effective method for planning and managing complex
projects.
- A project is a finite endeavor (having specific start and
completion dates) undertaken to create a unique product or
service which brings about beneficial change or added value.
-This finite characteristic of projects stands in sharp contrast to
processes, or operations, which are permanent or semi-
permanent functional work to repetitively produce the same
product or service.
The project value chain:
PROBLEM- From strategy
PROJECT – Response to problem
PRODUCT – Value created by project
OUTCOME- Strategic Value delivered by product
• Project life- cycles define scope-oriented processes : Should
vary by project type and management complexity.
PROJECT LIFE CYCLE:
-Concept
-Design
-Construction
-Turnover
Project management is the art of directing and coordinating
human and material resources throughout the life of a project by
using modern management techniques to achieve predetermined
objectives of scope, cost, time, quality and participation
satisfaction.
AGE OF PROJECT MANAGEMENT:
-Corporate downsizing
-Global Competition
-Knowledge explosion
-Small projects represent big problems
-Rapid development of Third World and closed economies
-Increased customer focus
-Compression of product lifecycle
Sources from which the project management framework evolves:
-A working knowledge of general management
-familiarity with the special knowledge domain related to the
project are indispensable.
-Supporting disciplines such as computer science and decision
science may also play an important role.
PROJECT MANAGEMENT:
-The application of knowledge, skills, tools and techniques….., to
meet or succeed stakeholders requirements from a project
-There are potential conflicts between the stated objectives with
regard to scope, cost, time and quality, and the constraints.
-These conflicts should be resolved at the onset of a project by
making the necessary tradeoffs or creating new alternatives .
Five Project Management Processes 1. Defining the goal of the
project (initiating process) 2. Planning a project 3. Executing the
project : leading people 4. Controlling the project 5. Completing
the project : closing
DEFINING THE GOAL OF THE PROJECT:
o Linking the project to the Product
o Balancing competing demand with the triple constraint
o Contract, negotiating, proposal.
PLANNING THE PROJECT:
o Integrated planning
o The work breakdown structure.
o Scheduling
o Time estimating and compressing the schedule
o Cost estimating and budgeting
o Project risks
PROJECT EXECUTION:
o Leading people who will work on.
o Organizational design for delivering projects
o Building the project team
o Organizing the support team commitment coordination
o The role of project management
o Establishing the theory of motivation and their implication
management by objectives
o Establishing practical tips for project management
communication
o Organizing conflict resolution
CONTROLLING THE PROJECT:
o Develop a baseline and performance measurement
o Develop a performance measurement system.
o Managing time, cost, quality, change, risks, issues, suppliers,
customers and communication
o Project reviews
COMPLETING THE PROJECT:
Closing the contract
• acceptance
• documentation
• Lesson learned
• Intellectual propriety and ownership rights.
Scope –oriented processes are concerned with specifying and
creating the product (product scope) Work-oriented processes are
concerned with identifying, describing, and organizing project
activities (project scope)
Many organization provide standardized guidance for one or both.
Project management -TIPS:
-Project management discipline involves :
-Focusing on the important factors that drive project success.
-Avoiding the trap of staying in your personal comfort zone
-Having the personal backbone to withstand the criticism of
undisciplined, impatient people.
Stakeholders analysis:
-Stakeholders must be identified, have their needs and
expectations understood and
-Must be managed, and be communicated with frequently in order
to complete the project successfully
-Use a project stakeholder analysis worksheet
STAKEHOLDER CATEGORY CHECKLIST:
• Doers — those who are active participants in the work of the
project.
• Customers - those who provide financial and other resources.
• Users — those who will use the product of the project.
• Sponsors : those who give visibility and resources to the project.
• Dependents — those who need an interim work item from the
project.
• Sustainers — those who will support the product of the project in
use.
• Auditors — those who will verify compliance with applicable
standards.
• In-laws — those who are affected by the actions of the other
stakeholders
The PM Primary Responsibility: Keep the clients satisfied that they
will continue to fund the project.
THE PM RESPONSIBILITIES:
-Manage stakeholders relationship.
-Manage development of the plan for the project
-Manage project progress
-Manage product acceptance
-Manage project transition
PM INTERPERSONAL SKILLS:
1. Effective communication : the exchange of information 2.
Influence the organization : the ability to get job done
3. Leadership : developing a vision and strategy, and motivating
people to achieve the vision
4. Motivation : energizing people to overcome barriers to change
5. Negotiation and conflict management : to reach an agreement
6. Problem solving : the combination of problem definition,
alternatives identification and analysis, and decision making
CHAPTER 2:
INITIATION PROCESS: To verify assumptions and projections
made during origination and to define and authorize the project.
-Consider project as organizational investments than as
operational expenses
-Project managers support top management by providing much of
data that allow them make decision
-Good project manager understand the relationship of his project
to the goals of organization
-If the project is a weak business case, prepare to recommend its
termination so the organization can redeploy the resources on
other project.
Problem, Product and project scope • The first step is to determine
what exactly is the problem or advantage you are hoping to
achieve.
– Identify stakeholders and expectations
– Gather information from stakeholders as to their requirements
– Define exactly the problem you want to solve or the benefit you
want to gain
– Define scope – how much do we want to do/ what won‟t we do?
– Complete risk assessment
– what is the worst that could happen? How likely is it?
Assumptions and constraints: – Factors that, for planning
purposes, the team will treat as certain. – Imposed factors that will
limit the team’s options.
Exclusions — anything the customer might reasonably expect that
won’t be delivered as part of this project by this project team.
Product Scope
• Identifies the product of the project: – What will we do to relieve
the problem?
– Why did we choose this solution?
-The best way to do this is to divide requirements into: Must have,
Should have, Like to have.
- •The “product of the project” any verifiable result!
PROJECT SCOPE:
-1-Project objectives : define the major objectives to meet your
customer
-2-Deliverables : define the major deliverable( include time,
quantity, cost estimate ) or expected outputs over the life of the
project.
3-Milestones : is a significant event of a project at point in time
and an important point of control
4-Technical requirements : speed of an engine , standards, codes
5-Limits and exclusion : limits of scope should be defined
–Review with customers (internal - external) to make sure for the
understanding of agreement and expectations
TRIPLE CONSTRAINTS:
-SCHEDULE CONSTRAINT
-COST CONSTRAINTS
-PRODUCT CONSTRAINTS
STATEMENT OF WORK: SOW
-The customer issue a SOW and is one way to communicate
specific, measurable expectations for the project
• SOW : a portion of a certain formal contracts that describes the
requested work
• SOW : contains explicit acceptance criteria
Product Success: Factors to Consider: • Bottom line impact —
cost reduction or revenue generation
• Operational impact — performance measures
-Market impact — share or platform potential
SAMPLE PRODUCT SUCCESS CRITERIA
• Capture market share of 20% within 9 months
• Generate revenue of $3.5 million within 6 months
• Save $500,000 per year in maintenance costs
• Have 3 positive reviews appear in trade journals before June
• Equipment is still operating to spec after 12 months in use
SAMPLE PM SUCCESS CRITERIA
• Project cost — completed within 10% of approved budget.
• Project schedule — completed by originally scheduled date.
• Product specifications — 100% of “must have” features
delivered.
• Stakeholder experience — no overtime.
• Project Definition Document : – Project Charter (Terms of
Reference) details what the project will deliver, what are
constraints and assumptions
– Preliminary Problem, Product and Project Scope Document
– Confirmation the project should continue.
-It is important that a sponsor group signs off this document as it is
your mandate to continue with the project. It may also result in an
approved Business Case for funding.
CHAPTER 3:
Parker’s Proverb: Planning is like insurance. It’s too expensive
until you need it, and then it’s too late.
WHY PLAN?
-As much or as little as you need to demonstrate to stakeholders
that you have thought of everything, and have a plan to get there.
-The better we plan, the better we can execute on time and within
budget to meet customer expectations and organizational
objectives.
--To manage Project we need constructing a model
-The model can be simple or complex
-The Triple constraint ( time, cost, performance) is a simple three
element model
of a project system.
Your plan may include:
• Introduction
– Overview,
– Deliverables,
– Constraints,
– Definitions
• Management structure
– Project reporting,
– Communication Plan,
– Risk Management,
– Change management
• Planning
– Activity schedule
– Resource identification,
– Resource allocation
– Project Charter,
– Quality Assurance Plan,
– Test and/or Training plans,
– Implementation Plan.
Building a Foundation for Success
• If the problem is poorly defined — limit scope and work to
defining it!
• If the solution is not clear — limit scope and work to analyzing
options and recommending one!
PLANNING PROCESS:
In the early phases: this is preparing the Project Management
Plan and defining exactly what will happen.
In later phases : it is ensuring that the earlier planning is still
valid, and incorporating any changes in resources or
contingencies arising.
PROJECT PLANNING PROCESS: 1.Setting the project start date
2. Setting the project completion date
3. Selecting the project methodology or project life cycle to be
used.
4.Determining the scope of the project in terms of the phases of
the selected project methodology or project life cycle.
5.Identifying any predetermined interim milestone or other critical
dates which must be met.
6.Listing tasks, by project phase, in the order in which they might
be accomplished.
7. Estimating the personnel necessary to accomplish each task
8. Determining skill level necessary to perform each task
9. Determining task dependencies - Which tasks can be done in
parallel - Which tasks require the completion of other tasks before
they can start.
Integrated Project planning •Integration is a process of
synthesizing different concepts into a unified Whole
•Project management is primarily an interactive activity: -Most
product failure is at the interface of subsystems
-The biggest complaint of people in projects is poor
communications
-Senior managers expect PM taking a strategic and holistic
perspective on the project •We adopt the model published by the
Project Management Institute
THREE INTEGRATIVE PROCESS:
1-Developing the project plan : integrating the requirements that
comprise the product scope with activities that comprise work
scope while establishing plans for cost,
time,quality,risk,communication,huma n resources and
procurement.
2-executing the project plan : Now that the project has ―planned
its work‖, it is time to ―work its plan‖, and the execution is
systematic
3-Managing the change to the plan : all projects encountered
changes that are different from assumptions on wich the plan was
based. These change needs to be managed and in an integrated
way.
A work breakdown structure(WBS) is a hierarchic decomposition
or breakdown of a project or major activity into successive levels,
in which each level is a finer breakdown of the preceding one.
• The WBS may be drawn in a diagrammatic form (if automated
tools are available) or in a chart resembling an outline.
• A structured definition of all the work of a project: – The things
we have to do. – The documents we have to produce. – Any other
tangible items we have to create.
• The WBS includes both management work and technical work.
• Deliverables may also be called: – Sub-deliverables  Cost
accounts – Outputs  Significant – Work packages
accomplishments
• Activities may also be called: – Tasks – Work packages
• Collectively, they are called work-items.
USING THE WBS:
• Activities will be used as inputs to: – Effort and cost estimating –
Sequencing and scheduling
• Deliverables may be used as: – Scheduling milestones –
Progress measurement check points
DEVELOPING A WBS:
1. Get the appropriate stakeholders together.
2. Organize the first level according to how the work will be done
or managed.
3. Add a branch for project management deliverables and
activities.
4. Generate additional detail for all branches.
5. Arrange related items into a hierarchy.
6. Edit and revise as needed.
1. Get the appropriate stakeholders in a room together; for
example: – Team members – Subject matter experts –
Contractors – Customer or client representative.
2. Organize the first level according to how the work will be done
or managed:
– By project life-cycle phase — if multiple phases are being
planned.
– By key component — for a single phase project or when the
phases are not the same for all key components.
– By some other logical grouping — if phase or key component is
not appropriate.
3. Add a branch for project management deliverables and
activities.
4. Generate additional detail for all branches by asking:
– What are the things we have to do?
– What are the documents we have to produce?
– What are the other tangible items we have to create?
5. Arrange related items into a hierarchy:
– A ―child‖ has only one ―parent.
– Lower level items in each branch are both necessary and
sufficient to create upper level.
6. Edit and revise as needed so that:
– Deliverables are nouns (e.g., ―requirements document‖).
– Activities have a verb and a noun (e.g., ―write requirements‖).
WBS — Tips & Tricks
• Decompose as much as you can now; revisit detail as needed.
• Remember to include a branch for project management!
• Characteristics of the lowest level: – One clear owner – Able to
estimate effort and duration
• Developing a WBS can be a real challenge if: – You don’t
understand the scope. – The scope is poorly defined.
• The activities (lowest level) should be the same regardless of
how the deliverables (upper levels) are organized.
Network Diagrams Activity scheduling
• The most popular method is called Activity on Node or activity on
Arrow.
• The task (activity) is represented by a node or Arrow, which also
shows the time expected.
• Take the list of tasks from your Work Breakdown Structure
• Determine any tasks that depend on other tasks.
• Attach resources to each task (people cannot do two jobs at
once).
• Determine the timeline for the project
WHAT DO WE ESTIMATE?
• Effort — labor units required to complete an assignment; usually
hours of a person’s time.
• Duration — work periods required to complete an assignment.
• Elapsed time — calendar periods required to complete an
assignment.
• Cost — monetary value of labor, materials, and contracts.
FOR WHAT PURPOSES?
• Funding estimates — preliminary approximations used to guide 4. Listing tasks, by project phase, in the order in which they might be
approval decisions: – Not a project budget – Not a project accomplished.
management control 5- Estimating the personnel necessary to accomplish each task
• Working estimates — more detailed, more reliable predictions 6- Determining task dependencies - Which tasks can be done in
used to manage the work of the project. parallel - Which tasks require the completion of other tasks before
ESTIMATE PROCESS: FACTORS TO CONSIDER: they can start
• Planning Horizon : the quality estimates of the current events are 7- Te : weighted average estimated time : Te = (a+4m+b)/6 a:
close to 100% accurate but are reduced for more distant events. optimistic activity time b : pessimistic activity time m: most likely
• Long duration Project increases uncertainty in estimates activity time
• A new technology : implementing a new technology with a poor -PERT developed in the 1950s to control large defense projects,
written scope specifications result in errors in estimating and have been used routinely since then.
1-People : Accuracy of estimates depends on the skills of people -'Critical Path Analysis' sounds very complicated, but it's a very
making the estimates logical and effective method for planning and managing complex
-How people skills are near to the work to do? projects.
-Team harmony ?
2-Project Structure : the type of project structure chosen influence
time and cost estimates ( Example : a dedicated project team is
speedy but costly as a permanent structure.
3-Other non-project factors : Holidays, legal limits
4- Responsibility: estimates should be done by persons most
familiar with the task
5-Delphi estimating Method : Use several persons to estimate and
find consensus 6-Time unit : specific time units to use should be
selected early in the development phase
7-Adding risk assessment to the estimates : help to avoid
surprises to stakeholders
The Estimating Process Review • Define and document: – Work to
be done (based on scope) – Assumptions (about scope or work) –
Range of possible outcomes – Relevant supporting detail •
Review and revise as necessary
COSTING:
The easiest way to cost the project is to take the WBS and
estimate the costs of each activity. Other considerations include
capital costs, disbursements, costs of delays, contingencies.
PROBABLE TIME ESTIMATE:
is a management tool that is suited for research and development
projects which are generally non-repetitive in nature and is
sometime called ― once through projects.
Three time estimates namely
1. Optimistic time-estimated minimum time an activity will it take.
Its probability is about 1 in 100 or 1%
2. Most Likely or probabilistic time- the estimated normal length of
time an activity takes. This is the time expected that will most
frequently required for an activity.
3. Pessimistic time-the estimated maximum time that will be
required under the worst conditions. Its probability is about -1 in
100 or 1% .
Expected Value-is the weighted average of all possible values that
this random variable can take on.
• Variance-is a measure of how far a set of numbers is spread out.
It is one of several descriptors of a probability distribution,
describing how far the numbers lie from the mean(expected
value).
• Standard Deviation-measure of variability or diversity used in
statistics and probability.
FOUR PROJECT BASELINES:
• Scope baseline = progressively detailed product description
• Stakeholder satisfaction baseline = project success criteria
• Cost baseline = budget
• Schedule baseline = schedule.
The network path:
– Which is most likely to cause the project to be late.
– With the longest duration.
– Which determines the shortest total length of the project.
– With the least amount of “float”
* Critical Path- the longest route in the network of activities
representing a project.
Activities along the critical path are called Critical activities of the
project that may result of the delay in the entire project.
* Earliest start (ES)- This is always equal to the earliest event at
the beginning of an arrow which is sometimes called i-node. The
point of an arrow is called j-node.
- It is the first day after the physical assumption of the activity.
-Earliest Finish (EF). This is the earliest possible time that an
activity can be finished. It is equal to its earliest start plus its
duration or time. Therefore: EF = ES + duration.
-Latest Start(LS). This is the latest time that an activity can begin
and not delay the completion time of the overall project.
If the earliest start and latest start times are the same then the
activity is critical.
-Latest Finish(LF). This is the latest time that an activity can be
finished and not delay the completion time of the overall project.
LS = LF-duration.
Total Float(TF)- The span of time an activity can be delayed after
its earliest start time without delaying the project completion. This
is the difference between the earliest start time and the latest start
time. TF = LF-EF or TF= LS-ES
Free Float (FF)- The span of time an activity can be delayed after
its ES without delaying the ES of any succeeding actual activity
that may be availed. It is equal to the ES of any of its succeeding
real activities minus the EF of an activity in question. This is also
equal to the earliest time at the i-node of the next succeeding real
activity minus the EF of the activity. FF=ES-(ES + duration).
• Forward pass — to determine the project’s ―natural end date‖
based on its early start and early finish dates.
• Backward pass — to determine late start and late finish dates.
Total (Path) Float • The amount of time an activity may be delayed
without affecting the project’s currently predicted early finish date.
• Total (Path) Float = Late Start – Early Start • Total (Path) Float is
a measure of scheduling flexibility.
Two Kinds of Schedule!
• Preliminary schedule: – Used for enterprise resource planning,
project approvals – Produced when specific resources are not yet
known, start date not yet confirmed
• Baseline schedule: – Used for project planning and control –
Produced when resource availability is confirmed, start date is set.
Building a Preliminary Schedule
• For effort-based activities, calculate the expected duration: –
Budgeted effort hours / hours per period / percent available –
Example: 24 hours / 6 work hours per day / 50% available = 8
days duration
• For all other activities, use historical information or your best
judgment.
Building a Schedule Baseline • Determine elapsed time based on
the availability of the assigned resource: – Update effort estimate
where appropriate. – Consider holidays and vacations. – Consider
anything else that might affect availability.
• Use project management software for any non-trivial project.
Scheduling PERT METHOD:
The project planning process consists of the following:
1. Setting the project start date
2. Setting the project completion date
3. Identifying any predetermined interim milestone or other critical
dates which must be met.
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