Project Planning Tools

3.

Velocity diagram, Burned down chart or Time & Space chart,

EVA (S-Curve), Multi task scheduling & Multi project
scheduling

Er. Megh Bahadur KC

MSc CM
 Burn down chart
❖ graphical representation of work left to do versus time
❖ outstanding work (or backlog) is often on the vertical axis,
with time along the horizontal
❖ useful for predicting when all of the work will be
completed

Er. Megh Bahadur KC

MSc CM
Burn down chart

Er. Megh Bahadur KC

MSc CM
Burn down chart

Er. Megh Bahadur KC

MSc CM
 Burn up chart
Burn-up chart
Burn-up charts help you see the progress of a given iteration.
below is an example of a burn-up chart that shows the total work
points for the entire project the sum of completed work points

Er. Megh Bahadur KC

MSc CM
 Velocity diagram
In this diagram:
Track shows actual progress against planned progress

Plots work units completed (vertical axis) against time (horizontal axis)

It will indicate the good visual to show how the work is progressing.

❖ A velocity chart tracking tools shows velocity across all iterations of a

given project.
❖ The horizontal axis represents iterations, and the vertical axis
represents the effort, in hours, days etc. that the team has expended.
❖ A typical velocity chart for an Agile project team might look like
Figure 3, which illustrates the velocity trend (red) across all iterations
of the project.
Er. Megh Bahadur KC
MSc CM
Velocity diagram

Er. Megh Bahadur KC

MSc CM
Velocity diagram

Er. Megh Bahadur KC

MSc CM
 Earned value Analysis(EVA)
EARNED VALUE ANALYSIS

Any deviation in schedule, performance or cost from the plan or from the
set standard to the actual accomplishment is called variance. In the past the
conventional method of control analysis was variance analysis

It can be used to show differences between actual progresses and planned,

and the
resources used against estimate or budget. For example, the followings are
common variances in the control of projects:
❖Scheduled start vs. Actual start
❖Scheduled finish vs. actual finish
❖Scheduled time for an activity vs. actual time
❖Scheduled date of milestone vs. the actual date when the milestone was
reached Er. Megh Bahadur KC
MSc CM
 Earned value Analysis(EVA)
❖ Budgeted cost vs. Actual cost
❖ Budgeted quantity vs. Actual quantity
❖ Budgeted man-hours vs. Actual man-hours
❖ Budgeted unit cost vs. Actual unit cost
THREE VARIABLES
BCWS(Budgeted Cost of Work Scheduled)
Is the sum cost of all work scheduled to be completed within a given time period as
specified in the original project budget
BCWP(Budgeted Cost of Work Performed):
Is the earned value of the work completed to date. It is determined by taking the sum of the budgeted
cost of all work packages completed plus sum of the earned value of open work packages.
ACWP(Actual Cost of Work Performed):
Is the actual expenditure incurred in a given time period. It is sum of all the completed work packages
plus all open work packages
BCWS: “Budgeted Cost of Work Scheduled”

Planned cost of the total amount of work scheduled to be performed by the milestone date.
Er. Megh Bahadur KC
MSc CM
BCWS

Er. Megh Bahadur KC

MSc CM
BCWP & ACWP

Er. Megh Bahadur KC

MSc CM
BCES, BCWP & ACWP

Er. Megh Bahadur KC

MSc CM
 EVA- Variances
3 types of variances

❖Cost (spending) variance (CV) – difference between budgeted

cost of work performed
(earned value) (BCWP) and actual cost of that work performed
(ACWP)

❖Schedule variance (SV) – difference between earned value

(BCWP) and cost of work we scheduled to perform to date
(BCWS)

❖Time variance (TV) –difference between time scheduled for work

performed (STWP) and actual time to perform it (ATWP)
Er. Megh Bahadur KC
MSc CM
 EVA- Formula
❖CV = BCWP – ACWP (negative value - cost overrun)

❖SV = BCWP – BCWS (negative value - behind schedule)

❖TV = STWP – ATWP (negative value - delay)

Index (Ratios)

❖Cost Performance Index (CPI) = BCWP/ACWP

❖Schedule Performance Index (SPI) = BCWP/BCWS

❖Time Performance Index (TPI) = STWP/ATWP

Er. Megh Bahadur KC

MSc CM
 Example
Assume that operations on a Work Package cost Rs.1,5000 to complete. They were
originally scheduled to finish today. At this point, we actually spent Rs.1,3500. And
we estimate that we have completed two thirds (2/3) of the work. What are the cost
and
schedule variances?

CV = BCWP – ACWP = 15000(2/3) – 13500 = - 3500

SV = BCWP – BCWS = 15000 (2/3) – 15000 = - 5000

CPI = BCWP/ACWP = 15000(2/3)/13500 = 0.74

SPI = BCWP/BCWS = 15000(2/3)/15000 = 0.67

Spending higher than budget, and given what weEr.have

Meghspent,
Bahadurwe
KCare not as far
MSc CM
along as we should be (have not completed as much work as we should have)
 Example
A construction company has signed a fixed cost contract to supply installation testing and commissioning of 200 precast
concrete slab of same specification at a cost of Rs 600 lakhs. The company had estimated that it could supply, install,
test and commissions 10 slab per day so that the entire work would be completed in 20 days time. The project status was
reviewed by project manager after completion of 16 days. Project manager was noted at the time of review that only 120
slab have been installed and the cost incurred (as per account maintained in site) was Rs 380 lakhs. Based on above data
as you being a project manager of this company calculate cost variance, schedule variance, performance analysis and
various connected parameters. What is your conclusion with the calculated results?
Given,
Total project cost=600 Lakh
Project completion time=20 Days
Reporting Date=16 days
Cost per unit slab= 600/200
=3 Lakh
At the date of reporting 16 days (BCWS) =10*3*16
=480 Lakhs
At the date of reporting 16 days (BCWP) =120*3
=360 Lakh
At the date of reporting accountant maintained at site (ACWP) =380 Lakh
Er. Megh Bahadur KC
MSc CM
 Now,
1. Cost variance (CV) = BCWP-ACWP
= 360-380
= -20 Lakh.
-ve sign indicate that cost is overrun. i.e project is Rs 20 lakh Er. Megh Bahadur KC
MSc CM
over budget.
1. Schedule Variance(SV) = BCWP-BCWS
= 360-480
= -120 Lakh.

-ve sign indicates time overrun. i.e Project cost of Rs.120 Lakh is behind the schedule.

1. Cost performance index(CPI) = (BCWP/ACWP)*100%

= (360/380) *100%
= 94.73%

CPI= 94.73% i.e <100 means project is overbudgeted

Final cost forecasting = Total project cost

CPI
=600/0.9473
=633.37 Lakh

Er. Megh Bahadur KC

MSc CM
1. Schedule Performance index(SPI) = (BCWP/BCWS)*100%
= (360/480)*100%
= 0.75*100%
= 75%

SPI= 75% which is less than 100 means project is behind the schedule.

Final completion time forcasting = Project time

SPI
= 20/0.75
= 26.66 Days
= 27 Days

Project will be 27-20=7 days late. i.e time lag happen if there is no change in performance.

Er. Megh Bahadur KC

MSc CM
 Multi project scheduling
❖ scheduling two or more projects simultaneously (i.e., starting
at the same point in time and each continuing thereafter)

❖ such that the sum of weighted project delays is minimized

Why MPS??
1. Ensures not over-extended
2. More efficient use of resources
3. More realistic view of availability
4. Reflections of limitations

In case of HRM management in multi-project

1. Account for all projects
2. Determine % effort allocated per project
3. Allocate working time per days Er. Megh Bahadur KC
4. Block out holidays/weekend or vacation time
MSc CM
 Scheduling Techniques
1) Mathematical Analysis. Critical Path Method
(CPM) and Program Evaluation and Review
Technique (PERT) are the two most commonly
used techniques by project managers. ...
2) Duration Compression. ...
3) Simulation. ...
4) Resource-Leveling Heuristics. ...
5 ) Task List. ...
6) Gantt Chart. ...
7) Calendar. Er. Megh Bahadur KC
MSc CM
Project Crashing
Considering Time-Cost Trade-Offs

CPM Method of Time-Cost Trade-Offs:

 Crashing an activity refers to taking special costly measures to reduce the
duration of an activity below its normal value. Special measures might include
overtime, hiring additional temporary help, using special time-saving materials,
obtaining special equipment, etc.

 Crashing the project refers to crashing a number of activities to reduce the

duration of the project below its normal value.
Project Crashing
Considering Time-Cost Trade-Offs
 It is often possible to expedite activities at extra cost (called “crashing”).
 Benefits of completing a project earlier:
 Monetary incentives for timely or early completion of project
 Beating the competition to the market
 Reduce indirect cost

 Procedure:
1. Obtain estimates of regular and crash times and costs for each activity.
2. Determine the lengths of all paths using regular time for each activity.
3. Identify the critical path(s)
4. Crash activities on the critical path(s) in order of increasing cost as long as crashing costs do not
exceed benefits.
Time-Cost Graph for an Activity
Activity
cost

Crash
Crash cost

Normal cost Normal

Crash time Normal time Activity duration

Crashing Decisions
 Re-statment of the problem:

Consider the total cost of the project, including the extra cost of crashing activities. The problem
then is to minimize this total cost, subject to the constraint that project duration must be less than
or equal to the time desired by the project manager.

 The decisions to be made are the following:

1. The start time of each activity.
2. The reduction in the duration of each activity due to crashing.
3. The finish time of the project
 The constraints are:
1. Time Reduction ≤ Max Reduction (for each activity).
2. Project Finish Time ≤ Desired Finish Time.
3. Activity Start Time ≥ Activity Finish Time of all predecessors (for each activity).
4. Project Finish Time ≥ Finish Time of all immediate predecessors of finish node.
Example Time-Cost Trade-Off Data for House Project

Time (days) Cost Maximum Crash Cost

Reduction per Day
Activity Normal Crash Normal Crash in Time (days) Saved
(a) Foundation 4 4 $8,000 $8,000 0 —
(b) Framing 10 8 9,000 9,800 2 $400
(c) Plumbing 9 7 5,600 6,000 2 200
(d) Electrical 6 4 8,400 8,800 2 200
(e) Wall Board 8 6 11,500 12,700 2 600
(f) Siding 16 12 13,400 15,600 4 300
(g) Paint Interior 5 2 3,000 5,700 3 900
(h) Paint Exterior 9 7 5,000 6,400 2 700
(i) Fixtures 7 5 6,500 8,900 2 1,200
Building a House Project Network
9
c 8
Plumbing
e 5
0 4 10 6 Wall g 6 0
START a Board Paint i FINISH
b d
Foundation Framing Electrical Interior Fixtures
16 9
f h
Siding Paint
Exterior

Question: Suppose $1,000 in indirect costs can be saved for each day the
project is shortened. Which activities should be crashed?
Marginal Cost Analysis for House Project
Initial Table
Length of Path
Activity Crash
to Crash Cost abcegi abdegi abfhi
42 39 45
Marginal Cost Analysis for House Project
After Crashing 1 Day
Length of Path
Activity Crash
to Crash Cost abcegi abdegi abfhi
42 39 45
(f) Siding $300 42 39 44
Marginal Cost Analysis for House Project
After Crashing 2 Days
Length of Path
Activity Crash
to Crash Cost abcegi abdegi abfhi
42 39 45
(f) Siding $300 42 39 44
(f) Siding $300 42 39 43
Marginal Cost Analysis for House Project
After Crashing 3 Days
Length of Path
Activity Crash
to Crash Cost abcegi abdegi abfhi
42 39 45
(f) Siding $300 42 39 44
(f) Siding $300 42 39 43
(f) Siding $300 42 39 42
Marginal Cost Analysis for House Project
After Crashing 4 Days
Length of Path
Activity Crash
to Crash Cost abcegi abdegi abfhi
42 39 45
(f) Siding $300 42 39 44
(f) Siding $300 42 39 43
(f) Siding $300 42 39 42
(b) Framing $400 41 38 41
Marginal Cost Analysis for House Project
After Crashing 5 Days
Length of Path
Activity Crash
to Crash Cost abcegi abdegi abfhi
42 39 45
(f) Siding $300 42 39 44
(f) Siding $300 42 39 43
(f) Siding $300 42 39 42
(b) Framing $400 41 38 41
(b) Framing $400 40 37 40
Marginal Cost Analysis for House Project
After Crashing 6 Days
Length of Path
Activity Crash
to Crash Cost abcegi abdegi abfhi
42 39 45
(f) Siding $300 42 39 44
(f) Siding $300 42 39 43
(f) Siding $300 42 39 42
(b) Framing $400 41 38 41
(b) Framing $400 40 37 40
(c&f) Plumbing & Siding $500 39 37 39
Marginal Cost Analysis for House Project
Final Table (After Crashing 7 Days)
Length of Path
Activity Crash
to Crash Cost abcegi abdegi abfhi
42 39 45
(f) Siding $300 42 39 44
(f) Siding $300 42 39 43
(f) Siding $300 42 39 42
(b) Framing $400 41 38 41
(b) Framing $400 40 37 40
(c&f) Plumbing & Siding $500 39 37 39
(c&h) Plumbing & Paint Ext. $900 38 37 38
Marginal Cost Analysis for House Project

 Seven days have been saved off the length of the project (38 days rather than 45).
 $7,000 saved in indirect costs.
 The total crashing costs were
 $300 + $300 + $300 + $400 + $500 + $900 = $2,700
 Total savings = $7,000 – $2,700 = $5,300.