Project Management

Course Outline
• Understanding Project Management Fundamentals
• Identifying Project Management Processes
• Initiating a Project
• Managing Project Scope
• Estimating Project Time
• Developing and Controlling a Project Schedule
• Analyzing Project Cost
• Measuring Project Quality
• Organizing Human Resources for a Project
• Devising Effective Communication Methods
• Analyzing Project Risks
• Processing Project Procurements
• Integrating Project Workflow
• Understanding Project Management Fundamentals
• Define Project Management Basics
• Examine Organizational Influences on Project Management
• Examine the Project Management Context

Projects
Project: A temporary work endeavor.
Has a clearly defined beginning and end.
Example: Creating a new car that works on solar energy.

Subprojects
An independently manageable component of an existing project.
Can have smaller subprojects.
Subprojects can be contracted:
External enterprise.
Another functional unit in the organization.
Example: Creating interior design for a solar powered car.
Subprojects contracted to vendors:
Designing of seats.
Air-conditioning system.

Project Management
“The application of knowledge, skills, tools, and techniques to project activities to meet project requirements.”
(According to the PMI®)
Managing projects typically involves:
• Scheduling.
• Identifying requirements.
• Establishing objectives.
• Balancing quality, scope, time, and cost.
• Addressing the concerns and expectations of the stakeholders.
Example: Project manager responsibilities at the launch of a new telecommunication network include:
Communicate cross-functionally.
Manage people who do not report directly.
Deliver the work on time, within specified budget and quality specifications.
Strategic Planning
Projects are often used as the means of achieving the organization's strategic plan.
Strategic considerations that authorize a project include:
• Market demands.
• Organizational needs.
• Customer requests.
• Technological advancements.
• Legal requirements.

Programs
A group of related projects that have a common objective.
Offer great control over constituent projects and deliver benefits that the organization can use to meet its goals.
Example: A company expanding its retail chain.
Projects include:
• Conducting market research to establish demand.
• Constructing new stores.
• Selecting franchise.
• Designing the marketing campaign.
• Consolidating customer base by establishing loyalty programs.

Portfolios
A collection of projects, programs, and other work to achieve the strategic business objectives of an organization.
Generally managed by a senior manager or senior management teams.
Example: An alternate energy producing company designing a breakthrough technology capitalizing on solar
energy.
The portfolio includes:
Programs and projects to identify potential use of technology.
Operational work such as administration and logistics related activities.

Operations
Are ongoing and repetitive tasks that produce the same outcome every time they are performed.
Purpose of operations includes:
• Carrying out day-to-day organizational functions.
• Generating income to sustain the business.
• Increasing the value of organizational assets.
• Example: Operations in a new oil refinery.
Operations includes:
• Daily production.
 • Routine maintenance of the plant.
• Employees wages.
• Purchase of raw materials.
• Grievance-handling.
• Logistics.
• Supply of finished products to the market.

PMO
A centralized, permanent, ongoing administrative unit or department that serves to improve project management
performance within an organization.
Example: The automobile company needs to manage the entire project of designing a solar car in a coordinated
way.
PMO introduced standardized processes for:
Calculating, leveling, loading, and developing project budgets.
Updating project schedules.
Developing project data references.
Organizing best practices sharing sessions.

Project Stakeholders
Person who has a business interest in the outcome of a project or who is actively involved in its work.
Example: The automobile company decided to start the solar car plant in a new location. Stakeholders include:
Project manager and project sponsor.
Government automobile regulatory agency officials, staff.
Employees of the company, management, and production team.
Company’s vendors, local environmental and political groups, and residents.

Types of Project Stakeholders

Customer or users
Sponsor
Portfolio managers or portfolio review board
Program managers
Project Management Office (PMO)
Project managers
Project management team
Project team
Functional managers
Operations managers
Sellers and business partners

Enterprise Environmental Factors

Internal or external factors.
Have positive or negative influence on projects.
Support or limit the project management options.
Examples include:
Organizational culture.
The human resources pool.
Marketplace conditions.
Stakeholder risk tolerances.
Political situations.
Project management information systems.
Organizational Systems
A project management team is responsible for maintaining a sound organizational system for all the projects in an
organization.
Organizations can be of two types:
Project based.
Non-project based.

Organizational Structures
Dictates how the various groups and individuals within an organization interrelate.

CEO

CFO CIO VP HR

Department Head Department Head Department Head

Employee Employee Employee

Employee Employee

Employee

A sample organizational structure

Organizational Structure Types

Relative Authority in Organizational Structures

The project manager’s authority relative to the functional manager’s authority over the project and the project
team.
Example: Companies with different organizational structures.
An auto manufacturing company with functional organizational structure and hierarchical management.
A web design company with projectized organizational structure.

Organization Charts
A visual representation of the project’s organizational structure.
Clearly assigns project tasks to team members.
A functional organization chart

A projectized organization chart

A matrix organization chart

The Project Management System

A defined approach for effective project management.
Content of a project management system varies depending on:
• Organizational influence.
• Application area.
 • Complexity of the project.
• Availability of existing systems.
Example: Project Management System of the Automobile Company.
Adopt the PMBOK® guide for all project management processes.
Use Microsoft Office Project for planning and scheduling a project.
Ensure that all project team members with more than 12 months of experience must have CAPM certification.

Organizational Cultures and Styles

Organizational Culture's Influence on Projects

Organizational Process Assets

Assets that influence project success.
Examples include:
• Policies.
• Procedures.
• Guidelines.
• Formal and informal plans.
• Lessons learned documents.
• Historical information.
• Completed schedules.
• Earned value data.
• Risk data.
Two categories of organizational process assets:
• Processes and procedures.
• Corporate knowledge base.

Program Management
Centralized, coordinated process.
Managing multiple related and interdependent projects.
Meet strategic objectives.
Example: The program manager at a retailing company identified the various projects for the retail chain
expansion.
Assigned a priority level to each project.
Decided to conduct market research.

Portfolio Management
Managing programs and independent projects.
Gives senior management a collective oversight of a grouping of projects in alignment with the strategic goals of
the organization.
Example: Senior management of an automobile company overseeing
several unrelated projects.

Relationships Among Project, Program, and Portfolio Management

Projects are generally managed through programs and portfolios.
Projects are at the lowest level, programs at the next level, and portfolios at the top of the hierarchy.
Information flows from higher to lower levels during initial phases and from lower to higher levels during later
phases.
Relationships among individual projects, programs, and portfolios are interrelated with the organizational
strategies and priorities.

Operations Management
The management of resources and processes involved in producing and delivering products and services.
Ensures that business operations are efficient and effective.
Ensures that quality of goods or services are optimal.
Aligned with the business and organizational requirements.
Example: Operations management in a new oil refinery.
Management activities include:
Defining the processes and procedures to be followed.
Identifying best practices to be followed.
Managing daily production activities.
Administering plant maintenance, wages, and salary.
Ensuring that work is in line with the current organizational strategies and procedures.

Project and Operations Management

Project management:
Involves planning, organizing, and managing resources involved in a project.
Projects are undertaken to meet a specific objective and are time bound and temporary.
Operations management:
Involves managing ongoing endeavors that produce repetitive outputs.
Operations may change based on change in the business or organizational objectives.

Agile Project Management

Taking an iterative approach to managing a project throughout its life cycle.
 Agile project management

Identifying Project Management Processes

• Examine the Project Life Cycle
• Recognize Process Groups

The Project Life Cycle

Project phases: A group of related project activities resulting in the completion of a major deliverable.
Project life cycle: The manageable, sequential phases of work in a project.
Consists of four or five phases.

The phases of a project life cycle

General Characteristics of a Project Life Cycle

• Projects differ and display certain common characteristics.
• At the beginning, cost and staffing levels are low.
• Reaches the peak once work is carried out.
• Drops rapidly upon project completion.
• Stakeholder influences, uncertainties, and risks are:
• High at project start.
• Low at project end.

Project Governance
Methodology carried throughout the life cycle of a project.
Contains project phase reviews.
Management review is done at the start of every phase.

Governance Activities in the Project Life Cycle

At the beginning of each phase:
Verify and validate the former assumptions.
Analyze risks.
Explain in detail the processes required to achieve a phase’s deliverables.
Phase-end review is necessary to ensure completeness and acceptance.
Phase-end review signifies the start of the subsequent phase.
Project phase can be closed or project terminated when:
Huge risks are involved.
Objectives are not required to be met.

Phase-to-Phase Relationships in a Project

Projects that are multi-phased follow sequential process.
Phase-to-phase relationship types:
• Sequential
• Overlapping
• Iterative
Factors that decide the types of relationships in between phases:
Level of control
Effectiveness
Degree of uncertainty

Progressive Elaboration
Successive layers of detail are added to the plans.
Deliverables from one phase are approved before work begins on the next phase.
A phase may begin before approving the deliverables of a previous phase if risks are acceptable.
Provides greater level of detail as the project progresses.
Detail is added to plans in progressive elaboration
Detail is added to plans in progressive elaboration

Project Management Processes

All the activities that underlie the effective practice of project management.
Produces project and product deliverables.

The
project management processes

Project Management Inputs, Tools and Techniques, and Outputs

Project management processes are implemented through inputs, tools and techniques, and outputs.
 The relationship between project management inputs, tools and techniques, and outputs

Project Management Process Groups

Process Group Description

Involves defining the need for a new project or the new phase of an existing
Initiating
project, and obtaining a commitment to move forward.

Used to create the project scope, refine objectives, and develop a strategy to
Planning
accomplish the work in the project or phase.

Involves carrying out the work mentioned in the project management plan in
Executing
order to meet project specifications.

Includes regular monitoring of project performance and tracks progress that

Monitoring and was made in the project or phase. They also include changes that are to be made
controlling to the plan when required and make corrective actions needed to get back on
track.
Involves finalizing the project activities, handing off the project or phase
Closing output, gaining formal acceptance, tying up administrative and contractual
loose ends, and finally closing the project or phase.

The Initiating Process Group

The initiating process group includes processes to:
• Develop a project charter.
• Identify stakeholders.

The Planning Process Group

The planning process group includes processes to:
• Develop the project management plan.
• Collect requirements, define the scope, and create WBS.
• Define and sequence activities, estimate activity resources and durations, and develop schedules.
• Estimate costs and determine budget.
• Plan quality.
• Develop the human resource plan.
• Plan communications.
• Plan risk management, identify risks, perform qualitative and quantitative risk analysis, and plan risk
responses.
• Plan procurements.

The Executing Process Group

The executing process group includes processes to:
• Direct and manage project execution.
• Perform quality assurance.
• Acquire, develop, and manage a project team.
• Distribute information and manage stakeholder expectations.
• Conduct procurements.

The Monitoring and Controlling Process Group

Processes include:
• Monitoring and controlling project work.
• Performing an integrated change control.
• Verifying and controlling the project scope.
• Controlling the schedule.
• Controlling project costs.
• Performing quality control.
• Reporting performance.
• Monitoring and controlling risks.
• Administrating procurements.

The Closing Process Group

• The closing process group includes processes to:
• Close a project or phase.
• Close procurements.

Project Management Process Group Interactions

Project management process groups interact with each other and are not discrete, one-time events.

Initiating Planning
Processes Processes

Monitoring
and Executing
Controlling Processes
Processes

Closing
Processes

The process group interactions

The Project Management Knowledge Areas

Overview of project management knowledge areas and project management processes

Initiating a Project
• Examine Project Selection
• Prepare a Project Statement of Work
• Create a Project Charter
• Identify the Elements of a Project Management Plan

The Project Management Framework

Business Requirements
Pressing organizational needs or market stimuli that drive decision makers to sponsor projects and to prioritize
competing projects.
Example: Business forces.
Business requirements may include forces such as:
• Market demands
Project Management Process Groups

Knowledge Areas Monitoring &

Initiating Process Planning Executing Closing Process
Controlling Process
Group Process Group Process Group Group
Group

Monitor and Control

Project Integration Develop Project Develop Project Direct and Manage Project Work Close Project or
Management Charter Management Plan Project Execution Perform Integrated Phase
Change Control

Collect Requirements
Project Scope Verify Scope
Define Scope
Management Control Scope
Create WBS

Define Activities
Sequence Activities
Estimate Activity
Project Time
Resources Control Schedule
Management
Estimate Activity
Durations
Develop Schedule

Project Cost Estimate Costs

Control Costs
Management Determine Budget

Project Quality Perform Quality Perform Quality

Plan Quality
Management Assurance Control

Acquire Project
Team
Project Human
Develop Human Develop Project
Resource
Resource Plan Team
Management
Manage Project
Team

Distribute
Project
Information
Communications Identify Stakeholders Plan Communications Report Performance
Manage Stakeholder
Management
Expectations

Plan Risk Management

Identify Risks
Perform Qualitative
Project Risk Monitor and Control
Risk Analysis
Management Risks
Perform Quantitative
Risk Analysis
Plan Risk Responses

Project
Conduct Administer Close
Procurement Plan Procurements
Procurements Procurements Procurements
Management

• Organizational needs
• Customer requests
• Technological advances
• Legal requirements
 • Social needs

Project Selection Criteria

The act of choosing a project from among competing proposals.
Example: Integrating customer and financial databases.
Criteria include:
• Links to the strategic goal of increased technological advantage.
• Can be produced using only internal resources.
• Meets goal of increasing new sales revenue by 10%.

Project Selection Methods

Any systematic approach used to analyze the value of a proposed project in order to choose among competing
proposals.
Example: Opportunity to implement two new projects but have resources for only one by the end of the fiscal year.
Prioritization based on:
Projected cost analysis.
Projected duration analysis.
Projected financial benefits analysis.

Project Selection Decision Models

System Description

Analyze the predicted value of the completed projects in different ways.

May present the value in terms of:
Forecasted revenue.
Benefit Measurement Models
Return on Investment (ROI).
Predicted consumer demand.
Internal Rate of Return (IRR).

Use different types of mathematical formulas and algorithms to determine

the optimal course of action. May consider variables such as:
Mathematical models and algorithms.
Mathematical Models
Business constraints.
Highest possible profit.
Relevant laws and safety regulations.

Capital Budgeting
Method of quantitative analysis.
Helps senior executives make determinations about when and whether to make significant investments in capital
expenditures such as:
New equipment
Machinery
Facilities

Scoring and Rating Systems

Use mathematical modeling to find the best available solution or outcome.
ating System Description
 ecision tree Selection criteria arranged along the branches of a tree flowchart.

riteria profiling Project criteria are scored for comparison.

Weighted factor Different criteria may be weighted and scored for comparison.

-sorting Groups of people rate the relative priority of a number of projects.

Experts are located remotely and remain anonymous, yet participate in group decision making.
elphi technique
Consensus is achieved through group ranking.

Feasibility Analysis
An analysis that provides technical and operational data to management to make a decision about project selection.
Includes:
Problem description.
Summary of historical data.
Evaluation of available technologies.
Evaluation of organization’s technical capabilities.
Cost and time estimates.
Assumptions and constraints.
Recommendations.
Statement of project goals and milestones.
Example: Feasibility analysis in a fast-moving consumer goods (FMCG) company.
Data taken for analysis are:
Historical data.
Financial and economic data.
Requirements analysis.
Summary of the additional costs.
Summary of impacts.
A conclusion.

Cost-Benefit Analysis
A comparison of the estimated costs versus the predicted benefits of a project.
Helps decision makers make informed choices about project selection.
Example: The CEO of a consumer goods company requested their advertisement agency to come up with the
estimated production and
publishing cost of the campaign.
The rough cost estimates are:
Predicted cost = $150K.
Predicted increase in sales: 10% of $4 million = $400K.
Predicted net benefit = $250K.

Project Statement of Work (SOW)

A document that:
Describes the products or services that the project will supply.
Defines the business need that it is designed to meet.
Specifies the work that will be done during the project.
Project statement of work for the OGC PM Training Roll-Out project

How to Prepare a Project Statement of Work

Guidelines
• Review the product description.
• Consult technical experts.
• Determine appropriate SOW format.
• Present the information in a logical sequence.
• Use consistent terminology and level of detail throughout the SOW.
• Determine if collateral services are required.
• Determine the acceptable criteria.
• Make sure the SOW includes key elements such as resource requirements / estimated hours of work.
• Ensure that the SOW is complete, correct, and understandable.
Example: Preparing a SOW for Portal Development
To create the SOW, the project manager:
Requested help from organization's sales and marketing head.
Hired consultant to define the specifications of the various software tools.
Used SOWs created by other companies for similar events.
Recommended that the SOW be reviewed and validated by an independent legal firm.

Project Charters
A document that provides a clear, concise description of the business needs that the project is intended to address.
 Project charter for the OGC PM Training Roll-Out project

The Develop Project Charter Process

Helps formally launch and authorize a new project or to authorize an existing project to continue into its next
phase.

Business Cases
A document that:
Justifies investments made for a project.
Describes how a particular investment is in accordance to the organization's policy.
Example: Business case for a geothermal energy project.
The business case includes:
Technical, investment, and regulatory factors influencing the project.
Cost estimates to justify the investments made for the project.

Business Case Components

Component Description
Business need Substantiates the business reason for conducting the project.

Project contribution Determines the project's contribution toward the organization's objectives.
 Lists the project stakeholders, their expectations, and contribution toward the
Stakeholders
project.

Constraints Compiles the limitations of the project.

Strategic risks Lists the risks that the project may face and the possible risk management measures.

Benefits evaluation Analyzes and outlines the key benefits to be obtained.

Project roles Lists the members of the project team and their respective job roles in the project.

Benefits realization plan Provides an outline of the benefits realization plan.

Contingency plan Outlines the alternate solutions for unplanned accidents.

How to Create a Project Charter

Guidelines
• Use a corporate template, if there is one.
• Include project and authority ID information.
• Include clear, concise description of business need, opportunity, or threat.
• Include summary descriptions of the project product or services.
• Include description of project’s relationships to need.
• Consider any known constraints or assumptions.
• Ensure the person with the required knowledge and authority signs the project charter.
• Distribute charter to stakeholders.
Example: Creating the project charter for an online portal development
project.

The Project Management Plan

Includes:
• Processes, tools, techniques, tasks.
• Change and configuration management plans.
• Performance measurement baselines.
• Stakeholder communication.
• Project life cycle.
• Plan for issues.
Example: Supermarket chain
Processes and tools for reducing checkout line time.
Hiring, checkout expansion, change control board.
Manager meetings, plan for open issues.
Cost management plan, quality assurance management plan

The Develop Project Management Plan Process

Involves documenting the appropriate actions to define, create, integrate, and coordinate the subsidiary
management plans as one single plan.
Managing Project Scope
Document Stakeholder Requirements
Create a Scope Statement
Develop a Work Breakdown Structure
Review Deliverables and Work Results
Control the Project Scope

The Collect Requirements Process

Project manager defines and documents the stakeholders' needs and expectations to meet project objectives.

Facilitated Workshops
Are group sessions that:
Bring together key multidisciplinary or cross functional stakeholders.
Define the project or product requirements for the project.
Example: Conducting facilitated workshops for OGC's Warehouse Management Software project.
Stakeholders include:
Staff of the Process Development and Implementation department.
Key project managers.
Administration personnel.
Key PMO staff.
Chief of the Business Transformation team.
Discussions highlight the stakeholder differences.
Enables reconciliation of the stakeholder differences.

Group Creativity Techniques

Group activities organized within organizations to identify project or product requirements for a project.
Group Decision Making Techniques
These techniques:
Are assessment processes that assess multiple alternatives to arrive at an expected outcome.
Are used to generate, classify, and prioritize project or product requirements.
Determine outcome, i.e., the resolution of future action for the project.
Various methods are adopted to reach a group decision.

Requirements Documentation
Describes how individual requirements meet the business requirements of the project.
The requirements documented must be:
• Unambiguous
• Traceable
• Complete
• Consistent
• Acceptable to key stakeholders

Requirements Management Plans

A plan that describes how the project requirements throughout the project life cycle will be:
• Analyzed.
• Documented.
• Managed.
Phase-to-phase relationships between various phases strongly influence how requirements are managed.
Components of the plan include:
 • Methods to plan, track, and report requirement activities.
• Configuration management related activities.
• Process for requirements prioritization.
• Project or product related metrics.
• Traceability matrix for requirements.
Example: Requirements management plan for OGC's Warehouse Management Software project.

How to Document Stakeholder Requirements

Guidelines
• Study the project charter to identify the high-level project requirements and product descriptions.
• Examine the stakeholder register to identify stakeholders who can provide information.
• Use various methods to collect the requirements.
• If possible, provide a working model or prototype of the expected product.
• Create the requirements documentation for the project.
• Review and validate the requirements management plan along with the key stakeholders.
Example: Identifying the OGC Warehouse Management Software project requirements.

The Project Scope Statement

Defines the project and what it does and does not need to accomplish.
Created at an early stage in the project.
Reflects the stakeholders’ common understanding of major activities to be performed.
Typically includes:
• Project objectives, deliverables, and requirements.
• Project constraints and assumptions.
• Product acceptance criteria.

Project scope statement for the OGC PM Training Roll-Out project.

Components of the Scope Statement

The Define Scope Process

The project manager defines the scope of the project and finalizes a project scope statement.
Scope definitions are shaped by the deliverables, assumptions, and constraints that are documented during project
initiation.

Product Analysis Techniques

Each technique is an evaluation of the project's end product and what it will take to create this product.

Techniques for Alternatives Identification

Methods for generating as many alternative solutions and plans as possible during project planning.
Project Objectives
• Criteria used to measure success.
• Specific in terms of scope.
• Quantifiable (time, cost, quality).
• Realistic, attainable.
• Consistent with organizational plans, policies, procedures.
• Inclusive of at least one objective.

How to Create a Scope Statement

Guidelines
• Refine the project objectives, deliverables, and product scope description from the requirements
documentation.
• Reexamine the requirements.
• Review the project boundaries.
• Update constraints, risks, assumptions.
• Create schedule milestones.
• Include revised cost estimate.
• Document known risks.
• Map the internal organization.
• Document product specifications and approval requirements.
• Finalize acceptance procedure.
Example: Creating a scope statement for food processing unit construction.
Work Breakdown Structures (WBS)

Maps to
project
scope
statement

Subdivide
s
project
work into
smaller
pieces

The Create WBS Process

The method of dividing the project deliverables into smaller, more manageable components.
Helps create a deliverable-oriented hierarchical decomposition of work to be executed by the project team.

Code of Accounts
• Any system for numbering the elements in a WBS.
• Helpful in performance, reporting, cost.
Example: School district’s uniform code of accounts.
• Record, track, document
• Revenues and expenditures
 • Consistent in every school

How to Develop a Work Breakdown Structure

To develop a WBS:
• Gather reference materials and other inputs.
• Determine how you will organize project work.
• Identify major deliverables.
• Analyze each element to determine whether it is sufficiently decomposed.
• Break down each WBS element to the work package level.
• Validate your WBS using a bottom-up approach.
• Use your code of accounts to assign a cost code to each element.

The Verify Scope Process

The process of demonstrating to stakeholders that they have received what they have been promised in a given
deliverable and formalizing their acceptance.

How to Review Deliverables and Work Results

To ensure that deliverables are complete:
Prepare for scope verification inspection.
a. Establish the scope and boundaries.
b. Establish and/or approve inspection measurements.
c. Establish and/or approve the inspection methodology.
d. Gather relevant scope documentation.
e. Inform team members in advance so they can be prepared.
Conduct an inspection to review deliverables and work results.
Prepare an inspection report.
Provide the report to key stakeholders.
Distribute formal acceptance documentation to project stakeholders according to the communications management
plan.

The Control Scope Process

The process of monitoring project scope and holding changes to the project scope baseline.
How to Control the Project Scope
Guidelines
• Develop and implement a scope change control system.
• Evaluate change requests.
• Identify and document corrective actions to bring expected future performance in line with planned
performance.
• Ensure formal agreements are reached and new specifications detailed when project scope is expanded.
• Revise cost, schedule, or quality baselines to reflect changes, if necessary.
• Use performance measurement techniques to monitor changes.
• Document lessons learned.
Example: Control the scope of the sports facility construction project.

Estimating Project Time

Create an Activity List
Create a Project Schedule Network Diagram
Estimate Activity Resources
Estimate Duration for Project Activities

Activities
• Element of project work that requires an action to produce a deliverable.
• Have an expected duration.
• Consume budget and/or human resources.
• Are named in verb-noun format.
Example: Activities in a company project.
Revise user manual.
Make a sales presentation.
Reserve conference room.

Work Package
Planned work or deliverables.
Lowest-level component of the work breakdown structure.
Cost and schedule can be easily estimated.

A work breakdown structure showing the work packages

Lag
A delay in the start of a successor activity.

Lead

Project Schedule Network Diagrams

Graphical representation of the sequence of project activities and the dependencies among them.
Read from left to right or top to bottom.
May include the entire project or specific parts of it.

Conditional Diagramming Methods

Any network diagramming method that allows for nonsequential activities such as loops or conditional branches.
How to Create a Project Schedule Network Diagram
• To create a PDM project schedule network diagram:
• Determine the dependencies among project activities using your activity list and product descriptions.
• Identify predecessor and successor activities.
• Create nodes for all activities with no predecessor activities or dependencies.
• Create nodes for all activities that are successor activities.
• Draw arrows from the predecessor activities to the successor activities.
• Continue drawing the network diagram, working from left to right until all activities are included on the
diagram and the precedence relationships are indicated by arrows.
• Include any known lags or leads.
• Verify the accuracy of your diagram.

Project Resources
Any useful material object or person needed for project completion.
Include labor, materials, facilities, equipment, consultants, services, supplies, and utilities.
Example: Resources for a health and wellness seminar project.
Conference room.
Brochures, pamphlets, other materials.
Visiting consultants.
Vendors.

The Estimate Activity Resources Process

Involves determining specific resources necessary for completing project activities.

How to Estimate Activity Resources

Guidelines
• Determine what resources are necessary.
• Determine what quantity of resources are necessary.
• Generate possible alternatives for unavailable resources.
• Analyze the scope statement to ensure you’ve identified all the resources.
• Consider organizational policies that could affect resource acquisition and usage.
• Identify and use expert judgement resources.
• Analyze the resources already available.
• Example: Determining resources for a website design project.
• A contractor needs to be hired as there are no in-house graphic designers.
• Overhead items such as the computer and workstation and black-and-white printer are already available.
• The software program needs to be purchased.
• There is no color printer; a commercial printing facility can be utilized for presentation items that require
color.
The Estimate Activity Durations Process
The act of estimating the quantity of work that is required to complete individual project activities using the
available resources.

How to Estimate Duration for Project Activities

Guidelines
• Involve the work package owners.
• Consult historical information.
• Determine how you want to quantify the work.
• Consider resource requirements and capabilities.
• Determine the appropriate estimation method to use.
• Modify the constraints and assumptions from the other planning processes.
• Verify the accuracy of your estimates.
• Consider the need for reserve time.
• Example: Activity estimates for creating website include design work, resources, and work units.