PROJECT PLANNING AND SCHEDULING

PREPARED AND PRESENTED BY: DR. BASAVARAJ TALIKOTI

TOPICS

 Work Breakdown structure (WBS) and linear responsibility chart,

 Interface Coordination and concurrent engineering,
 Project cost estimation and budgeting,
 Top down and bottoms up budgeting, Networking and Scheduling techniques.
 PERT, CPM, GANTT chart,
 Introduction to Project Management Information System (PMIS).
WORK BREAKDOWN STRUCTURE (WBS)

PREPARED AND PRESENTED BY: DR. BASAVARAJ TALIKOTI

WORK BREAKDOWN STRUCTURE (WBS)

 A Work Breakdown Structure (WBS) is a deliverable-oriented

hierarchical decomposition of the work to be executed by the project
team to accomplish the project objectives and create the required
deliverables.
 A WBS is the cornerstone of effective project planning, execution,
controlling, monitoring, and reporting. All the work contained within the
WBS is to be identified, estimated, scheduled, and budgeted.

Prepared and Presented by: Dr. Basavaraj Talikoti

WORK BREAKDOWN
STRUCTURE DIAGRAM
 The Work Breakdown Structure (WBS) is
developed to establish a common
understanding of project scope. It is a
hierarchical description of the work that
must be done to complete the deliverables
of a project. Each descending level in the
WBS represents an increasingly detailed
description of the project deliverables.

 The first two levels of the WBS (the root

node and Level 2) define a set of planned
outcomes that collectively and exclusively
represent 100% of the project scope. At each
subsequent level, the children of a parent
node collectively and exclusively represent
100% of the scope of their parent node.
Here is a Work Breakdown Structure
example:

Prepared and Presented by: Dr. Basavaraj Talikoti

 QUALITY OF A WORK BREAKDOWN STRUCTURES
 A well-designed WBS describes planned outcomes instead of planned actions. Outcomes are the desired ends of the
project, such as a product, result, or service, and can be predicted accurately. Actions, on the other hand, may be
difficult to predict accurately. A well-designed WBS makes it easy to assign elements of the WBS to any project
activity.A good WBS should exhibit the following characteristics:
 Definable—can be described and easily understood by project participants.
 Manageable—a meaningful unit of work where specific responsibility and authority can be assigned to a responsible individual.
 Estimate-able—duration can be estimated in time required to complete, and cost can be estimated in resources required to
complete.
 Independent—minimum interface with or dependence on other ongoing elements (i.e., assignable to a single control account,
and clearly distinguishable from other work packages).
 Integrate-able—integrates with other project work elements and with higher level cost estimates and schedules to include the
entire project.
 Measurable—can be used to measure progress; has start and completion dates and measurable interim milestones.
 Adaptable—sufficiently flexible so the addition/elimination of work scope can be readily accommodated in the WBS
framework.
 GUIDELINES FOR DEVELOPING WORK BREAKDOWN STRUCTURE
 The development of Work Breakdown Structure involves subdividing the major project activities or sub-activities
into smaller, more manageable activities until the activities are defined in sufficient detail to support the management
and development of project works. The items at the lowest level of a branch are known as work packages. Here are
some tips in developing a Work Breakdown Structure that can express works effectively:
 Always express Work Breakdown Structure activities at the lowest levels of granularity in verb form.
 Review the Work Breakdown Structure. Make sure all deliverables have been fully covered by the works defined in the Work
Breakdown Structure.
 Ensure that testing and training have been taken into account.
 Ensure that non-IT work packages are also included such as, documentation and review activities are included in the structure.
 Ensure that other supporting activities such as, product/service launch and implementation activities are planned.
 Ensure that delivery approval cycles are taken into account.
 Include project management deliverables on the project as well (e.g. production of Project Plan). Include any deliverables that
must be met or delivered by the customer or any external parties. Check the Work Breakdown Structure against the project
approach specified in Project Charter for any activities that needs to be included in the Work Breakdown Structure.

Prepared and Presented by: Dr. Basavaraj Talikoti

DIFFERENT FORMS OF
WORK BREAKDOWN STRUCTURE
GENERALLY SPEAKING, THERE ARE THREE TYPICAL WAYS IN STRUCTURING WORKS WITH A
WORK BREAKDOWN STRUCTURE (WBS).
THEY INCLUDES PHASE-BASED STRUCTURES, DELIVERABLE-BASED STRUCTURES AND
RESPONSIBILITY-BASED STRUCTURES.

PREPARED AND PRESENTED BY: DR. BASAVARAJ TALIKOTI

PHASE-BASED
STRUCTURES
 Define and structure
project activities based
on the project phases.

Prepared and Presented by: Dr. Basavaraj Talikoti

DELIVERABLE-
BASED
STRUCTURES

 Define and
structure
project
activities
based on
the
deliverables
agreed to
deliver.

Prepared and Presented by: Dr. Basavaraj Talikoti

RESPONSIBILITY-BASED
STRUCTURE

 Define and structure

project activities based on
the organization units that
will work on the project.

Prepared and Presented by: Dr. Basavaraj Talikoti

OTHER USE CASES OF
BREAKDOWN STRUCTURE
TYPICAL USE OF BREAKDOWN STRUCTURE AS A PROJECT MANAGEMENT TOOL INCLUDES WORK
BREAKDOWN STRUCTURE (WBS), RESOURCE BREAKDOWN STRUCTURE, RISK BREAKDOWN
STRUCTURE AND ORGANIZATION BREAKDOWN STRUCTURE (OBS), OR SOMETIMES KNOWN AS
ORGANIZATION CHART.

PREPARED AND PRESENTED BY: DR. BASAVARAJ TALIKOTI

 RESOURCE
BREAKDOWN
STRUCTURE
 Resource Breakdown
Structure (RBS) is a
project management
tool that provides a
hierarchical
decomposition of
resources, either
structured by resource
category, types or by
IT/business function
that has resource
needs.
 Here is a Resource
Breakdown Structure
example:
Prepared and Presented by: Dr. Basavaraj Talikoti
 RISK BREAKDOWN
STRUCTURE
 Risks are everything in any IT project.
The existence of risk causes negative
impact on project schedule, costs and
quality. In project management,
Project Manager is responsible for
managing risks and to ensure that the
project will be delivered on time,
within project and up to the standard
user expected. One of the popular
risk management tool is the Risk
Breakdown Structure. Besides presenting project risks in a Risk Breakdown Structure, it is
 Risk breakdown Structure is the
possible to combine the use of Color Legend in representing the impact
hierarchical decomposition of risks, of risk. Take a look at the Risk Breakdown Structure example below, a
starting from the root node element legend of Impact with five items has been setup, representing the five
that represents the project, and going levels of impacts that risks may have on the project with five distinct
down to the various risk categories, color code.
and then finer level risks. Here is a Risk Breakdown Structure example:

Prepared and Presented by: Dr. Basavaraj Talikoti

 ORGANIZATIONAL
BREAKDOWN
STRUCTURE
 Organizational Breakdown
Structure, or sometimes known as
Organization Chart, is a widely used
project management tool for
representing project organization. It
typically begins with the project
sponsor, and with all key
stakeholders included. In presenting
the organization structure, consider
the organization or group that is
requesting the project and the level
of their sponsorship and authority.
 Here is an Organizational
Breakdown Structure example:

Prepared and Presented by: Dr. Basavaraj Talikoti

LINEAR RESPONSIBILITY CHART

PREPARED AND PRESENTED BY: DR. BASAVARAJ TALIKOTI

WHAT IS A LINEAR RESPONSIBILITY CHART?

 Effective project management requires decisions that focus on both “what” and on
“who.” After making “what” decisions about deliverables and project timelines, the
last step before starting the project is to is to create a linear responsibility chart --
also called a responsibility matrix -- that identifies who is responsible for core
project activities, actions and decisions.

Prepared and Presented by: Dr. Basavaraj Talikoti

WHAT IS A LINEAR RESPONSIBILITY CHART?
 The Linear Responsibility Chart (LRC), also known as the
Responsibility Assignment Matrix (RAM), is another visual
depiction of the roles and responsibilities on a project.
These charts list tasks on one axis and the responsible
persons or departments on the other. Often a coding
system (such as a set of symbols) is used to indicate the
type of responsibility of each person or department for
each task.
 The LRC to the left is a simple example for procurement of
raw materials on a project. This example is taken from a
real project. We recommend that when you build your own
LRC, you use the names of individuals rather than their
titles. This is consistent with the intended behavior of
accountability.

Prepared and Presented by: Dr. Basavaraj Talikoti

CONCURRENT ENGINEERING

PREPARED AND PRESENTED BY: DR. BASAVARAJ TALIKOTI

 WHAT IS CONCURRENT ENGINEERING?
 Concurrent engineering, also known as simultaneous
engineering, is a method of designing and developing
products, in which the different stages run simultaneously,
rather than consecutively. It decreases product development
time and also the time to market, leading to improved
productivity and reduced costs.
 Concurrent Engineering is a long term business strategy,
with long term benefits to business. Though initial
implementation can be challenging, the competitive
advantage means it is beneficial in the long term. It removes
the need to have multiple design reworks, by creating an
environment for designing a product right the first time
round.

Prepared and Presented by: Dr. Basavaraj Talikoti

WHY DO COMPANIES ADOPT CONCURRENT ENGINEERING
METHODS?
 The notable business benefits of concurrent
engineering make it a compelling strategy to
adopt. Introducing concurrent engineering can
lead to:
 Competitive Advantage- reduction in time to
market means that businesses gain an edge over
their competitors.
 Enhanced Productivity- earlier discoveries of
design problems means potential issues can be
corrected soon, rather than at a later stage in
the development process.
 Decrease Design and Development Time- make
products which match their customer’s needs, in
less time and at a reduced cost
Prepared and Presented by: Dr. Basavaraj Talikoti
PROJECT COST ESTIMATION AND BUDGETING

PREPARED AND PRESENTED BY: DR. BASAVARAJ TALIKOTI

 PROJECT COST MANAGEMENT
 Project Cost Management is defined as the process of planning and controlling the project cost and budget effectively
and efficiently. It defines what costs are required for each deliverable of the project. It includes various functions of
Project management like estimation, job controls, field data collection, scheduling, accounting, design etc.
 The cost of the project can be estimated from various process sources (Examples below)
 Creating Work Breakdown Structure (WBS), Develop Schedule
 Plan human resources, Identifying risks
 The inputs of cost management include,
 Project management plan, Project charter
 Enterprise environmental factors, Organizational process assets
 While, the output of this is Cost Management Plan.

 Creating estimation and costing for project is an extremely crucial part of any project management.Various things are
taken in consideration while calculating budget for project like labor costs, necessary equipment acquisition, material
costs, etc.

Prepared and Presented by: Dr. Basavaraj Talikoti

WHAT IS PROJECT COST ESTIMATION?
 Project Cost Estimation is defined as the process of approximating the total expenditure of the project. The
accuracy of the cost estimation and budgeting in project management depends on the accuracy and details of
the project scope, which is the scope baseline. The scope will also define any constraints like date, resources
or budget. The risk register will help to calculate estimate types of costs, the expenses made behind the
contingent action and the expenses made to cope with risks.
 To estimate the cost of project you have to categorize various cost types into categories like
• Labor cost
• Equipment cost
• Cost of supplies
• Travel cost
• Training cost
• Overhead cost, etc.

Prepared and Presented by: Dr. Basavaraj Talikoti

 TECHNIQUES USED TO ESTIMATE PROJECT COST
 There are some techniques used to estimate a project cost like: Expert Judgement, Three-Point Estimation,
Reserve Analysis and Cost of Quality.
 However, to estimate project cost, formally there are few main methods (techniques) used as follows:
 Analogous Estimating - This estimating technique is based on expert judgments and information based on
similar previous projects. Where previously done similar project cost is considered with plus or minus of 20%
for existing project.
 Parametric estimating - Past data or record is used to estimate cost for the current project.
 Bottom-up estimating - Once you have defined the scope of the project, it is the most reliable form of
technique. In this technique, based on WBS, you estimate the cost for each resource or deliverables.
 Likewise, there are other methods (techniques) which could be useful for estimating cost like PERT estimating,
vendor bid analysis, etc.

Prepared and Presented by: Dr. Basavaraj Talikoti

 PROJECT BUDGET PLANNING
 The main purpose of this activity is to allocate and authorize the monetary resources required to complete the
project. The main output for determining the budget includes cost performance baseline. It not only specifies what
cost will be incurred but also when costs will be incurred. The inputs for determining budget includes following
Project management budgeting methods:
 Activity cost estimates
 Basis for estimates, Scope baseline
 Project Schedule, Resource calendars
 Contracts, Organizational process assets
 The output of this process is
 Cost performance baseline
 Project funding requirements
 Project document updates

Prepared and Presented by: Dr. Basavaraj Talikoti

TOP DOWN AND BOTTOM UP BUDGETING

PREPARED AND PRESENTED BY: DR. BASAVARAJ TALIKOTI

TOP-DOWN BUDGETING

 In corporate budgeting, a top-down approach involves the senior management team developing a
high-level budget for the entire organization. Once these budgets are created, amounts are allocated
to individual departments, and those departments must then take those numbers and build their own
corresponding budgets within the confines of the executive-level-created budget.
 Advantages: With top-down budgeting, only the executive team is involved and thus lower management
does not have to take time to prepare the budget. This can represent significant time-savings for those
who are more involved in the day-to-day rather than the overall strategy for the organization.
 Disadvantages: With the top-down approach, those creating the budget may not be involved with the
day-to-day and as a result may not be aware of some of the specific expenses required. This may result
in problems for departments looking for resources that just don’t fit into the top-down budget.

Prepared and Presented by: Dr. Basavaraj Talikoti

BOTTOM-UP BUDGETING
 With a bottom-up approach, the process starts in the individual departments where managers create a
budget and then send it upwards for approval. That budget is either approved, revised or sent back for
modifications, and a master budget is created from the various departmental creations.
 Advantages: Usually the outcomes of this approach are increased ownership of the budget, more
information since employees familiar with each department are creating the budget, and increased
understanding, communication and commitment on behalf of managers because they are directly
involved in the process.
 Disadvantages: Typically, the bottom-up approach will result in higher spending targets compared to the
top-down approach, and thus a reconciliation process will be required in order to produce an
organization-wide budget in which all the parts add up correctly. Also, sometimes bottom-up budgeting
can result in budgets which are not in-line with corporate objectives if managers focus too much on
department, rather than organization, concerns.

Prepared and Presented by: Dr. Basavaraj Talikoti

NETWORKING AND SCHEDULING TECHNIQUES

PREPARED AND PRESENTED BY: DR. BASAVARAJ TALIKOTI

NETWORKING AND SCHEDULING TECHNIQUES
 In today’s highly competitive environment, management is continually seeking new and better control techniques
to cope with the complexities, masses of data, and tight deadlines that are characteristic of many industries. In
addition, management is seeking better methods for presenting technical and cost data to customers. Since World
War II, scheduling techniques have taken on paramount importance. The most common of these techniques are
shown below:
 Gantt or bar charts
 Milestone charts
 Line of balance
 Networks
 Program Evaluation and Review Technique (PERT)
 Arrow Diagram Method (ADM) [Sometimes called the Critical Path Method (CPM)]
 Precedence Diagram Method (PDM)
 Graphical Evaluation and Review Technique (GERT)

Prepared and Presented by: Dr. Basavaraj Talikoti

PERT, CPM, GANTT CHART

PREPARED AND PRESENTED BY: DR. BASAVARAJ TALIKOTI

 PERT Chart is an acronym for (Program Evaluation and Review Technique). A PERT chart is a project
WHAT IS THE management tool used to schedule, organize, and coordinate tasks within a project. It is a method
PERT CHART? to analyze the tasks involved in completing a given project, especially the time needed to complete
each task and to identify the minimum time needed to complete the total project.

Prepared and Presented by: Dr. Basavaraj Talikoti

 A Gantt chart is a type of horizontal bar chart commonly used in project management, which is a
visual view of tasks scheduled overtime. It provides a graphical visualization of a schedule that
helps to plan, coordinate, and track specific tasks (or elements) in a project.
Gantt chart boils down multiple tasks and timelines into a single page. Using a Gantt chart allows
WHAT IS A all stakeholders to perceive the same schedule information, sets mutually understood
GANTT CHART? expectations, and conducts their efforts according to the desired protocol. The Gantt chart tool
provides a visual timeline for the start and end of tasks, making it clear how tasks are interrelated
and perhaps rely on the completion of another before one can start.
Prepared and Presented by: Dr. Basavaraj Talikoti
PERT V/S GANTT EXAMPLE
The ‘Gantt Chart version” of the PERT
A Pert Chart: Chart shown on the left:

Prepared and Presented by: Dr. Basavaraj Talikoti

 WE CAN SUMMARIZE THE DIFFERENCES BETWEEN THE TWO AS
LISTED IN THE TABLE BELOW:

Gantt chart PERT chart

Gantt chart is defined as the bar chart. PERT chart is similar to a network diagram

Gantt chart was developed by Henry L. Gantt. PERT chart was developed by the United States navy.

Gantt chart is often used for Small Projects PERT chart can be used for large and complex Projects

Gantt chart focuses on the time required to complete

PERT chart focuses on the dependency of relationships.
a task

PERT chart could be sometimes confusing and complex but

Gantt chart is simpler and more straightforward
can be used for visualizing critical path

Prepared and Presented by: Dr. Basavaraj Talikoti

 CRITICAL PATH METHOD (CPM)
 In project management, the critical path is the longest sequence of tasks that must be
completed to successfully conclude a project, from start to finish. The tasks on the critical path
are known as critical activities because if they’re delayed, the whole project will be delayed. By
identifying the critical path, you can determine the total duration of a project.
 Calculating the critical path is key during the planning phase because the critical path identifies
important deadlines and the activities which must be completed on time. Once a critical path is
determined, you’ll have a clear picture of the project’s actual schedule.
 To find this, project managers use the critical path method (CPM) algorithm to define the least
amount of time necessary to complete each task with the least amount of slack.

Prepared and Presented by: Dr. Basavaraj Talikoti

 CRITICAL PATH
 To properly understand the concept of critical path, you first need to understand the various terms used in this method.
 Earliest start time (ES): This is simply the earliest time that a task can be started in your project. You cannot determine this without first knowing
if there are any preceding tasks, or figuring out other constraints that might impact the start of this task.
 Latest start time (LS): This is the very last minute in which you can start a task before it threatens to upset your project schedule. And you need
to calculate what the latest finish time is for the same reason. By having a clear picture of this timeframe, you can better schedule the project to
meet its deadline.
 Earliest finish time (EF): The earliest an activity can be completed, based on its duration and its earliest start time.
 Latest finish time (LF): The latest an activity can be completed, based on its duration and its latest start time.
 Float. Also known as slack, float is a term that describes how long you can delay a task before it impacts the planned schedule and threatens
the project’s deadline. The tasks on the critical path have zero float. You can either calculate the float using the steps above, or by using project
management software. If an activity has a float greater than zero, it means it can be delayed without affecting the project completion time.
 Crash duration. This describes the shortest amount of time that a task can be scheduled. You can get there by moving around resources, adding
more towards the end of the task, to decrease the time needed to complete the task. This often means a reduction in quality, but is based on a
relationship between cost and time.
 Critical path drag. If time is added to the project because of a constraint, that is called a critical path drag, which is how much longer a project
will take because of constraints on tasks in the critical path.

Prepared and Presented by: Dr. Basavaraj Talikoti

 HOW TO CALCULATE THE CRITICAL PATH?
 Now that you know the key definitions of CPM, here are the steps to calculate the critical path in project management:
1. Collect Activities: Use a work breakdown structure to collect all the project activities that lead to the final deliverable.
2. Identify Dependencies: Figure out which tasks are dependent on other tasks before they can begin.

3. Create a Network Diagram: A critical path analysis chart, or network diagram, depicts the order of activities.

4. Estimate Timeline: Determine the duration of each activity.

5. Use the Critical Path Algorithm: The algorithm has two parts; a forward pass and a backwards pass.
6. Forward Pass: Use the network diagram and the duration of each activity to determine their earliest start (ES) and earliest finish (EF). The ES of an activity is equal to the EF of its
predecessor, and its EF is determined by the formula EF = ES + t (t is the activity duration). The EF of the last activity identifies the expected time required to complete the entire
project.

7. Backward Pass: Begins by assigning the last activity’s earliest finish as its latest finish. Then the formula to find the LS is LS = LF – t (t is the activity duration). For the previous
activities, the LF is the smallest of the start times for the activity that immediately follows.
8. Identify the Float of Each Activity: The float is the length of time an activity can be delayed without increasing the total project completion time. Since the critical path has no float,
the float formula reveals the critical path: Float = LS – ES

9. Identify the Critical Path: The activities with 0 float make up the critical path.

10. Revise During Execution: Continue to update the critical path network diagram as you go through the execution phase.

 These steps determine what tasks are critical and which can float, meaning they can be delayed without negatively impacting the project by making it longer. Now you have the
information you need to plan the schedule more accurately and have more of a guarantee you’ll meet your project deadline.

 You also need to consider other constraints that might change the project schedule. The more you can account for these issues, the more accurate your critical path method will
be. If time is added to the project because of these constraints, that is called a critical path drag, which is how much longer a project will take because of the task and constraint.

Prepared and Presented by: Dr. Basavaraj Talikoti

INTRODUCTION TO PROJECT MANAGEMENT
INFORMATION SYSTEM (PMIS)

PREPARED AND PRESENTED BY: DR. BASAVARAJ TALIKOTI

PMIS
 An abundance of information is created, transferred and stored over the life cycle of a
project. It seems people are always communicating and making constant updates. It’s easy for
something to get lost in the mix. But what if that lost snippet is an essential direction or
change?
 Without a way of organizing all information a project is doomed to fail. How can some many
data channels be organized so that they’re delivered to the right party and that person
knows that they’re being notified?
 That’s what PMIS comes in, which is an acronym for project management information system.
A PMIS enables an organized and controlled flow of information, so nothing is siphoned off
or misplaced.

Prepared and Presented by: Dr. Basavaraj Talikoti

WHAT IS PMIS?

 A project management information system (PMIS) is how a project’s information is

organized. It collects and uses project information through one or more software
applications. What these programs do is help project managers to plan, execute and close
their project. It’s a way to organize that flood of information, so you don’t drown in data.
 There are different types of PMIS software, but most share feature sets that include tools for
scheduling, work authorization, information collection and distribution, etc. Some will also
have automated gathering and reporting on key performance indicators (KPIs). Others are
simply a collection of files.

Prepared and Presented by: Dr. Basavaraj Talikoti

 ESSENTIAL FEATURES OF A PMIS
 If a PMIS captures all project data and stores it in an organized
way, it must also be retrievable, searchable, categorizable,
shareable and analyzable. To do all this, a typical PMIS will have a
series of tools.
• Schedule and Planning: Computes early and late schedule, slack
times and the critical path
• Resource Management: Including resource loading, leveling,
allocation, etc.
• Budget: Associate cost with individual tasks for more accurate
budget estimation and generation.
• Control and Performance: Analyze and control cost and
performance, updating existing plans as actual against planned
data changes, provide what-if scenarios for the project manager.
• Reporting and Communication: Creation of graphs and charts of
collected and analyzed data that can be shared with stakeholders
and team members.
• Integration and Ease of Use: Some PMIS will access data from
different projects for multi-project analysis, integrating with other
systems, such as payroll, inventory, etc. The easier a PMIS is to
use, the less time and money required to train.
Prepared and Presented by: Dr. Basavaraj Talikoti