Project SCHEDULE Management

Truly in the words of Peter F. Drucker:

“Until we can manage time, we can manage nothing else.”

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Importance of Time Management:
Accurate time estimation is a skill essential for good project management. It is
important to get time estimates right for two main reasons:
Time estimates drive the setting of deadlines for delivery and planning of
projects, and hence will impact on other peoples assessment of your reliability
and competence as a project manager.
Time estimates often determine the pricing of contracts and hence the
profitability of the contract/project in commercial terms.
Time management avoids last minute haste and participation in vast number of
activities as it develops a rational overview of commitments. It brings forth an
approach in a planned way to produce effective, efficient, higher quality pieces of
work.
Time management leads to higher potency and disciplined way to complete the
project.
Once you align the tasks in order of importance, you can deal with them one at
a time. If, a project manager is aware of what chores are important for himself and
his project, he would not waste time on trivial matters and have the extra time to
concentrate on other crucial issues.
Time management is a key responsibility of a project manager. The project
manager should equip with a strong skill and sense for time management.

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 Sequence Activities
Definition : “Sequence Activities is the process of identifying and documenting
relationships among the project activities. The key benefit of this process is that it
defines the logical sequence of work to obtain the greatest efficiency given all
project constraints .”

INPUT T & T OUTPUT

Schedule Precedence
Management Plan. Diagramming
Activity List Method(PDM) Project Schedule
Activity Network Diagram
Attributes Dependency
Determination
Project Scope
Statement PMIS
EEFs
OPAs Leads & Lags

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 Project Schedule Network Diagram

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 Precedence Diagramming Method

PDM is a technique used in critical path method (CPM) for constructing a

Project Schedule Network.

PDM uses boxes or rectangle , referred to as nodes , to represent activities , and

connect them with arrows.
 This technique creates a schedule model to graphically represent the activities to
be performed and the logical relationship or sequence between them.
 In the examples you will see here, each activity is represented by a box, also
known as a ‘node’. This technique is known as Activity-On-Node (AON) and is
one way of undertaking PDM.
Activity –On – Node (AON) - This is the method used by most project
management software packages.

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 PDM Logical Relationship
A predecessor activity is an activity that logically comes before a dependent
activity in a schedule.

A successor activity is a dependent activity that logically comes after another

activity in a schedule.
What are the four types of logical relationships between activities in the
precedence diagramming method?

PDM includes four types of dependencies or logical relationships

Finish-to-start (FS): Construction of the stadium must finish before the
games start
Finish-to-finish (FF):The clock must stop when the athlete crosses the
line.
Start-to-start (SS): The stop clock must start at the same time as the
starting pistol
Start-to-finish (SF): The runner must start running before the baton
handover can finish.

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 PDM Logical Relationship

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 Dependency Determination

Mandatory Dependencies :
-- The order in which activities MUST be done, due to the inherent
nature of the work; also called "hard logic" .

Discretionary Dependencies :
--The order in which the organization has CHOSEN that activities be
performed; also called "preferred;' "preferential;' or "soft logic" .

External Dependencies:
--Dependencies based on the needs of a party OUTSIDE the project .
--Regulatory dependencies .
Internal Dependencies:
--Dependencies based on the needs of the project; may be under the
control of the project team .

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 Leads & lags
Tools & Techniques cont.
Lead and Lags
A lead starts an activity before its predecessor has finished. It’s a head start!
o Preheating an smelter before production begins: FS - 5 hours

Smelter (FS -5 days) Producti

started on starts

A lag is a delay before a successor activity can begin.

o Letting concrete set for 3 days before building on it. It’s wait time! FS + 3 days

Pour (FS +3 days) Building

concrete work

Cont.
 PERT/ Time & PERT/Cost
PERT is a management tool for defining and integrating events; a process
which must be accomplished in time to assure completing project objectives
on schedule.
Objectives: PERT’s objectives are: To provide, through applying an
integrated management information system (which contains a balanced
combination of the basic elements of time, cost, and performance),
coordinated planning and control information at the proper levels so that
timely managerial judgments will meet all established project objectives.
Scheduling may be defined as translating a project plan into a timetable
with specific calendar dates governing the beginning and completion of all
project efforts. Scheduling is a way of realistically timing a project and its
inherent activities. It calls for skill and knowledge of the time and resource
requirements of all activities and their relevant capacities and efficiencies.
Scheduling is the manager’s way of determining the resources required by
several (perhaps competing) projects

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 Critical Path Method ( CPM)
What is the critical path? What is the near-critical path?

Critical Path : The longest path through the network diagram with Zero Float

How does the critical path help us manage the project?

It shows the project manager the shortest time in which the project can be
completed .

It shows the project manager where to focus his or her time .

It is used in compressing or adjusting the schedule .

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 Critical Path = 9 days

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o The critical path is the longest path of accumulated durations through the network
diagram
o It is also the shortest period of time in which all project activities can be completed
Critical path analysis shows us:
o The sequence of activities that must happen on time
o How the delay of any activity on the critical path will affects the whole schedule

Each activity is made up of seven sections:

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Forward Pass
o The next step is to calculate the earliest dates at which each of the activities can
start and finish. The process of doing this is called a forward pass.
o The earliest date any activity can start is day 1.
o The formula for calculating early finish is (𝐞𝐬 + d) − 1 = 𝐞𝐟
o The formula for calculating early start of the next activity is 𝐞𝐟𝐩 + 1 = 𝐞𝐬s

Backwards Pass
o The next step is to calculate the latest dates at which each of the activities can
start and finish. The process of doing this is called a backward pass.
o The formula for calculating late start is 𝐥𝐟 − d + 1 = 𝐥𝐬
o The formula for calculating late finish of the predecessor activity is 𝐥𝐬𝐬 − 1 = 𝐥𝐟𝐩

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Float
o Float is how long an activity can be delayed or extended.
o Also known as slack, it defines how much flexibility there is within a network
diagram.
There are two types of float in general:

o Total float (tf) - the time an activity may be delayed or extended without
affecting the total project duration or violating a target finish date.

o Free float (ff) – the time an activity may be delayed or extended without
affecting the start of a successor activity.

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o The critical path should have zero total float. It can have a positive or negative
value but this would be because of a particular constraint the project was
working within.
o For activities not on the critical path, the formula to calculate total float is 𝐥𝐟 −
𝐞𝐟 = 𝐭𝐟.
o Once total float has been calculated, free float can also be calculated. The
formula for this is 𝐞𝐬𝐬 − 𝐞𝐟𝐩 − 1 = 𝐟𝐟. A shortcut calculation for this is the gap −
1

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 FORWARD PASS – EARLY START EARLY FINISH
ES EF ES EF ES EF
1 7 8 13 14 16
Duration Duration6 Duration
7 Task A Task C 3 Task G
ES EF
LS LF LS LF LF LF 17 18
start Duration Finish
2 Task H
ES EF ES EF ES EF
1 3 4 6 7 9 LS LF
Duration Duration Duration
3 Task B 3 Task D 3 Task E

LS LF LS LF LS LF

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 BACKWARD PASS – LATE START LATE FINISH
ES EF ES EF ES EF
1 7 8 13 14 16
Duration Duration6 Duration
7 Task A Task C 3 Task F
1 7 8 13 14 16 ES EF
LS LF LS LF LF LF 17 18
start Duration Finish
2 Task G
ES EF ES EF ES EF 17 18
1 3 4 6 7 9 LS LF
Duration Duration Duration
3 Task B 3 Task D 3 Task E
8 10 11 13 14 16
LS LF LS LF LS LF

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 CRITICAL PATH – LONGEST PATH , ZERO FLOAT
ES 0 EF ES 0 EF ES 0 EF
1 7 8 13 14 16
Durn 7 Durn 6 Duration
Task A Task C 3 Task G
1 7 8 13 14 16 ES 0 EF
LS LF LS LF LF LF 17 18
start Durn 2 Finish
Task H
ES 7 EF ES 7 EF ES 7 EF 17 18
1 3 4 6 7 9 LS LF
Durn 3 Durrn 3 Durn 3
Task B Task D Task E
8 10 11 13 14 16
LS LF LS LF LS LF

Guess which one is the Critical path ?

A + C + G + H = 7 + 6 + 3 + 2 = 18 𝐞𝐬𝐬 − 𝐞𝐟𝐩 − 1 = 𝐟𝐟
B + D +E + H = 3 + 3 + 3 + 2 = 11

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 Critical Chain Method

Critical Chain Method is a schedule network analysis tool that builds in buffers at
critical milestones .

The critical chain method (CCM) is a schedule method that allows the project
team to place buffers on any project schedule path to account for limited
resources and project uncertainties.

The resource-constrained critical path is known as the critical chain.

Project Buffer : One buffer, placed at the end of the critical chain, is known
as the project buffer and protects the target finish date from slippage along the
critical chain.
Feeding Buffer : Additional buffers known as feeding buffers which are
placed at each point where a chain of dependent activities that are not on the critical
chain feeds into the critical chain.
Feeding buffers thus protect the critical chain from slippage along the feeding chains.

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 Time-Cost Trade-off

 Project crashing, a.k.a. project compressing or time-cost trade-off,

is an important aspect of managing construction projects. Project
crashing can be defined as the time-cost optimization technique,
which aims to compress the total project duration with the least
incremental cost.
 The objective of the time-cost trade-off analysis is to reduce
the original project duration.
 Reducing project duration can be done by adjusting overlaps
between activities or by reducing activities’ duration.

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 Critical Chain Method

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 Schedule Compression
Ware the methods that can be used to compress a schedule?

Crashing &
Fast tracking .
Crashing :
Adding or adjusting resources in order to compress the schedule while
maintaining the original project scope .
Crashing works only for activities on the critical path.
Crashing may result in increased risk and/or cost.

Fast tracking :
Compressing the schedule by doing more critical path activities in parallel.
Fast tracking may result in rework and increased risk.

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 Schedule Compression – cont.

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 CONTRACT
MANAGEMENT

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Difference between Contracts & Agreements
A contract is an agreement between two or more parties to
perform a service, provide a product or commit to an act and is
enforceable by law. There are several types of contracts, and each
have specific terms and conditions.
An agreement is any understanding or arrangement reached
between two or more parties. A contract is a specific type of
agreement that, by its terms and elements, is legally binding and
enforceable in a court of law.
A formal arrangement between two or more party that, by its
terms and elements, is enforceable by law is called Contracts
An agreement that lacks any of the required elements of a
contract has no legal effect.

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 Types of Contracts

Fixed Price Contracts : This category of contracts involves setting a fixed total price
for a defined product, service, or result to be provided.

Cost Plus or Cost Reimbursable Contracts : This category of contract involves

payments (cost reimbursements) to the seller for all legitimate actual costs incurred
for completed work, plus a fee representing seller profit.

Time & Materials Contracts :Time and material contracts are a hybrid type of
contractual arrangement that contain aspects of both cost-reimbursable and fixed-
price contracts

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 FIXED –PRICED CONTRACTS

Buyers must precisely specify the product or services being produced.

FIRM FIXED PRICE CONRACTS(FFP)

 Price for goods is set at the outset and doesn’t change unless the scope of work changes.
Any cost increase due to adverse performance is the responsibility of the sellers who is
obligated to complete the efforts.

FIXED PRICE INCENTIVE FEE CONTRACTS( FPIF)

Financial incentive tied to achieving agreed to metrics
Under FPIF contracts , a price ceiling is set , and all cost above the price ceiling are the
responsibility of the sellers , who is obligated to complete the work.

FIXED PRICE WITH ECONOMICS PRICE ADJUSTMENT CONTRACTS

( FP-EPA)
Performance period spans a considerable periods of years, as is desired with many long
term relationship.
e.g inflation change , or cost increase

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 COST – REIMBURSABLE CONTRACTS

Payment to the sellers for all legitimate actual cost incurred , plus a fee.

COST PLUS FIXED FEE CONTRACTS (CPFF)

Fixed fee payment calculated as a percentage of the initial estimated project costs.
Fee is paid only for completed work and does not change due to sellers performance

COST PLUS INCENTIVE FEE CONTRACTS (CPIF)

Pre determined incentive fee based upon achieving certain performance objectives
as set forth in the contracts.
If the final cost are less or greater than the original estimated costs , then both the buyers
and sellers share costs from the departure based upon a pre-negotiated cost sharing
Formulas.

COST PLUS AWARD FEE CONTRACT( CPAF)

The sellers is reimbursed for all legitimate costs , but the majority of the fees is only
earned based on the satisfaction of certain broad subjective performance criteria
defined and incorporated into the contracts.

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 TIME AND MATERIAL CONTRACTS ( T & M)

Hybrid types of contractual agreement that contain aspects of both cost-

Reimbursement and fixed price contracts

Often used for

Staff augmentation
Acquisition of experts,
Any outside support

Used when a precise statement of work(SOW) is not available

Buyer pay a rate for Resources .

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 PROJECT COST CONTROL
Project cost control is one component of project cost management,
and it involves tracking how a project's spending varies from baseline
expectations throughout the life of the project and creating corrective
plans if necessary. The project manager is usually responsible for the
project's cost controls, including operating monitoring software and
investigating any cost differences. Good project cost control requires
a detailed knowledge of the project's planning and execution, since
the project manager must be able to identify when the project exceeds
the projections and understand why.
Control Costs is the process of monitoring the status of the project to
update the project costs and managing changes to the cost baseline.
The key benefit of this process is that it provides the means to
recognize variance from the plan in order to take corrective action
and minimize risk.

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 Earned Value Management ( EVM)
A method of measuring project performance that looks at the value earned
for work accomplished, by reviewing project performance against the scope,
schedule, and cost baselines . It can be used to predict future cost
performance and project completion dates . Commonly used to asses and
measure project performance and progress wrt Schedule and Cost. There
are three elements of EVMs

Planned Value (PV )

Planned Value is the scheduled cost of work planned in a given time. Planned Value is
also known as Budgeted Cost of Work Scheduled (BCWS).
Earned Value (EV)
Earned Value is the amount of money earned from completed work in a given time.
Earned Value is also known as Budgeted Cost of Work Performed (BCWP).
Actual Cost(AC)
Actual Cost is the actual amount of money spent to date. Actual Cost is also known as
Actual Cost of Work Performed (ACWP).

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 Earned Value Management ( EVM)-cont
With the help of these three elements, you can calculate the following
variances and performance index:
Schedule Variance
Cost Variance
Schedule Performance Index
Cost Performance Index

Schedule Variance
Schedule Variance is the difference between Earned Value (EV) and Planned Value (PV).
Schedule Variance = Earned Value – Planned Value
SV = EV – PV
Cost Variance
Cost Variance is the difference between Earned Value (EV) and Actual Cost (AC).
Cost Variance = Earned Value – Actual Cost
CV = EV – AC

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 Earned Value Management ( EVM)-cont
Schedule Performance Index
Schedule Performance Index is the ratio between Earned Value
(EV) and Planned Value (PV).
Schedule Performance Index = (Earned Value) / (Planned
Value)
SPI = EV/PV

Cost Performance Index

Cost Performance Index is the ratio between Earned Value (EV)
and Actual Cost (AC).
Cost Performance Index = (Earned Value) / (Actual Cost)

CPI = EV/AC

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 EVM – Example
A project team lead by Michael has to complete work in 5 days . The overall work has
planned to cost $ 10,000 . The current day is 3rd 6 pm , the status is as follows :
Work complete – 40%
Actual amount spent = $ 3,500
Find out the Project Performance ( SPI / CPI / SV / CV )

Total Day1 Day2 Day3 Day4 Day5

Budget 2000 2000 2000 2000 2000
Work 20% 20% 20% 20% 20%

BAC = $10000
AC= $3,500
PV= BAC * %Work Planned = 10,0000 * 60% = 10,0000 * 60/100= $6000
EV=BAC* % Actual Work Performed = 10000 * 40/100 = 4000
SV= EV – PV = 4000 – 6000 = (-2000)
CV = EV – AC = 4000 – 3500 = 500
SPI= EV / PV = 4000 / 6000 = 4/6 = .67
CPI = EV / AC = 4000 / 3500 = 1.14

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