constructing a work breakdown structure showing all work components, Building a project schedule, Estimating duration

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1/12/13

Work Breakdown Structure
• A Work Breakdown Structure (WBS) is used

for breaking down a project into easily manageable components, or bites.

Here we'll break down the process for making it easy to use these structures in your project planning.

• Company owners and project managers use

the Work Breakdown Structure1/12/13 to make (WBS) complex projects more manageable.

Uses of the WBS
The WBS addresses the following

requirements of the project:

• Defining the project scope in terms of

deliverables and components.
• Providing the framework on which the

project status and progress reports are based.
• Facilitating communication regarding the

project scope, schedule, risk, performance, 1/12/13 cost etc with the stakeholders throughout

Some widely used reasons for creating a WBS
• Assists with accurate project organization • Helps with assigning responsibilities • Shows the control points and project

milestones

• Allows for more accurate estimation of cost,

risk and time stakeholders

• Helps explain the project scope to • A work breakdown structure is just one of

many project management forms.

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represented as a Level 1 component.How to Create a Work Breakdown Structure The diagram here shows that the entire project. can be subdivided into Level 2 components. and some or all Level 2 components can be subdivided 1/12/13 into Level 3 components. .

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completed within a certain time period. Objectives of Project Scheduling  Completing the project as early as possible by determining the earliest start and finish of each activity. complete the project by a certain date. 1/12/13  Calculating the likelihood a project will be  Finding the minimum cost schedule needed to 77 .Project Scheduling A project is a collection of tasks that must be completed in minimum time or at minimal cost.

Progress control. 88 1/12/13 . – Objectives of Project Scheduling – – Investigating the results of possible delays in activity’s completion time.Project Scheduling A project is a collection of tasks that must be completed in minimum time or at minimal cost. Smoothing out resource allocation over the duration of the project.

Identify tasks that are dependent on the 5. you have to follow these steps: the project 1. that are required to achieve each major task 3. Steps to Creating Your Project Schedule In order to create your Project Schedule. Work collaboratively with the planning project team to estimate each task’s duration and start & end dates completion of other tasks 4. Identify major tasks and milestones to complete 2. in chronological order. Assign resources to each task 1/12/13 . Identify detail tasks.

Scheduling Once tasks (from the WBS) and size/effort (from estimation) are known: then schedule Primary objectives  Best time  Least cost  Least risk Secondary objectives  Evaluation of schedule alternatives  Effective use of resources 1/12/13 .

Scheduling Techniques  Mathematical Analysis Network Diagrams  PERT  CPM  GERT  Bar Charts Milestone Chart Gantt Chart 1/12/13 .

Mathematical Analysis PERT  Program Evaluation and Review Technique CPM  Critical Path Method Sometimes treated synonymously All are models using network diagrams 1/12/13 .

Network Diagrams  Two classic formats  AOA: Activity on Arrow  AON: Activity on Node  Each task labeled with  Identifier (usually a letter/code)  Duration (in std. unit like days)  There are other variations of labeling  There is 1 start & 1 end event  Time goes from left to right 1/12/13 .

Node Formats 1/12/13 .

Arrow Diagramming Method (ADM)  AON  Tasks on Nodes  Nodes can be circles or rectangles (usually latter)  Task information written on node  Arrows are dependencies between tasks 1/12/13 .a.k.Network Diagrams  AOA consists of  Circles representing Events  Such as ‘start’ or ‘end’ of a given task  Lines representing Tasks  Thing being done ‘Build UI’  a.

Gantt Chart Graph or bar chart with a bar for each project activity that shows passage of time w w Provides visual display of project schedule 1/12/13 .

(1957) for construction of new chemical plant and maintenance shut-down  Deterministic task times  Activity-on-node network construction  Repetitive nature of jobs Project Evaluation and Review Technique (PERT)  U S Navy (1958) for the POLARIS missile program  Multiple task time estimates (probabilistic nature) 1/12/13 .History of CPM/PERT Critical Path Method (CPM)  E I Du Pont de Nemours & Co.

– • Activity A task or a certain amount of work required in the project – Requires time to complete – Represented by an arrow •Dummy Activity – Indicates only precedence relationships – Does not require any time of effort 1/12/13 . Nodes  A node is represented by a circle . a time consuming effort that is required to perform a part of the work.Project Network Network analysis is the general name given to certain specific techniques which can be used for the planning. a point in time where one or more activities start and/or finish. management and control of projects  • Use of nodes and arrows Arrows  An arrow leads from tail to head directionally  Indicate ACTIVITY.Indicate EVENT.

and arrows show precedence relationships wActivity-on-arrow (AOA) arrows represent activities and nodes are events for points in time w 1/12/13 .Project Network  Event Signals the beginning or ending of an activity Designates a point in time Represented by a circle (node)  Network Shows the sequential relationships among activities using nodes and arrows Activity-on-node (AON) nodes represent activities.

AOA Project Network for House Lay foundation 3 2 1 Order and receive materials 0 Dummy Build house 3 1 1 Finish work 1 1 3 Design house and obtain financing 2 4 Select paint 6 Select carpet 7 5 AON Project Network for House Lay foundations Build house 2 2 Start 1 3 3 1 5 1 4 3 Finish work 7 1 6 1 Select carpet Design house and obtain financing Order and & Dushyant Vikas Saxenareceive 1/12/13 Select paint materials Tyagi .

A A B Situations in network diagram B A must finish before either B or C can start C C both A and B must finish before C can start A B A B Dummy C D C D both A and C must finish before either of B or D can start A must finish before B can start both A and C must finish before D can start 1/12/13 .

Concurrent Activities Lay foundation Lay foundatio n 3 Dummy 2 1 Order material 0 2 3 Order material 2 4 (a) Incorrect precedence relationship (b) Correct precedence relationship 1/12/13 .

determines the project duration Critical Activities  All of the activities that make up the critical path 1/12/13 .CPM calculation Path  A connected sequence of activities leading from the starting event to the ending event Critical Path  The longest path (time).

Forward Pass  Earliest Start Time (ES) earliest time an activity can start ES = maximum EF of immediate predecessors  Earliest finish time (EF) earliest time an activity can finish earliest start time plus activity time EF= ES + t Backward Pass w Latest Start Time (LS) Latest time an activity can start without delaying critical path time LS= LF .t w Latest finish time (LF) latest time an activity can be completed without delaying critical path time 1/12/13 LS = minimum LS of immediate predecessors .

.e.e..EF Float is the maximum amount of time that this activity can be delay in its completion before it becomes a critical activity.CPM analysis  Draw the CPM network  Analyze the paths through the network  Determine the float for each activity Compute the activity’s float float = LS . delays completion of the project  Find the critical path is that the sequence of activities and events where there is no “slack” i.ES = LF . i. Zero slack Longest path through a network  Find the project duration is minimum project 1/12/13 completion time .

13 j.CPM Example:  CPM Network a. 12 e. 17 i. 15 g. 9 1/12/13 . 6 h. 8 c. 5 f. 6 b. 9 d.

12 e. 9 1/12/13 .CPM Example ES and EF Times f. 6 0 6 b. 13 j. 15 g. 6 h. 9 a. 5 0 5 d. 8 0 8 c. 17 i.

CPM Example ES and EF Times f. 5 0 5 6 j. 13 8 2 e. 9 a. 15 6 g. 6 0 6 b. 2 17 1 2 3 d. 8 0 8 c. 12 1/12/13 . 6 h. 1 9 5 1 4 i.

1 9 5 1 4 i. 6 2 2 3 j. 13 8 2 e. 2 17 1 2 3 d.CPM Example ES and EF Times f. 8 0 8 c. 5 0 5 h. 6 0 6 b. 9 2 3 1 0 . 9 12 2 3 1 3 Project’s EF = 33 1/12/13 a. 15 6 6 g.

6 0 6 b. 9 5 i. 15 6 2 g. 9 2 1 2 4 3 0 3 3 .CPM Example LS and LF Times f.1 17 6 2 3 d. 13 8 2 1 1 4 a. 6 2 3 2 2 7 9 3 j. 0 5 5 e. 3 12 2 1 3 2 1 3 3 1/12/13 h. 8 0 8 c.

6 2 3 2 2 7 9 3 j. 1 9 5 1 1 2 4 2 i. 13 8 2 8 1 2 e. 0 8 0 8 0 8 c. 15 6 2 9 g. 0 5 5 7 1 2 6 2 1 3 2 0 7 d. 3 12 2 1 3 2 1 3 3 1/12/13 h. 6 0 6 4 1 b.1 2 17 4 a. 9 2 1 2 4 3 0 3 3 .CPM Example LS and LF Times f.

6 1 4 6 2 2 4 4 2 3 1 2 3 2 2 0 7 7 9 3 d. 13 j.CPM Example Float a.1 2 3 17 2 4 i. 8 0 8 0 0 8 c. 6 0 6 3 3 9 b. 2 9 51 7 1 1 1/12/13 2 4 2 f. 2 9 9 g. 15 6 3 3 0 3 3 3 3 3 . 3 12 2 8 0 0 2 1 2 8 1 1 e. 0 5 5 7 7 1 2 h.

CPM Example Critical Path f. 12 e. 17 i. 8 c. 6 b. 9 a. 13 j. 15 g. 9 1/12/13 . 5 d. 6 h.

PERT  PERT is based on the assumption that an activity’s duration follows a probability distribution instead of being a single value  Three time estimates are required to compute the parameters of an activity’s duration distribution: pessimistic time (tp ) .the time the activity would take if things did not go well most likely time (tm ) .the time the activity would take if things did go well tp + 4 tm + Mean (expected time): te = to Variance: Vt =σ Vikas Saxena & Dushyant Tyagi = 2 6 tp - 2 1/12/13 to .the consensus best estimate of the activity’s duration optimistic time (to ) .

behind schedule or ahead of schedule? •If the project has to be finished earlier than planned.Benefits of CPM/PERT  Useful at many stages of project management  Mathematically simple  Give critical path and slack time  Provide project documentation  Useful in monitoring costs CPM/PERT can answer the following important questions: How long will the entire project take to be completed? What are the risks involved? •Which are the critical activities or tasks in the project which could delay the entire project if they were not completed on time? •Is the project on schedule. what is the best way to do this at the least cost? • 1/12/13 .

) (ASTA Development Inc.) (Claris Corp.) 1/12/13 PowerProject Primavera Project Planner Project Scheduler Project Workbench .Computer Software for Project Management Microsoft Project MacProject (Microsoft Corp.) (ABT Corp.) (Primavera) (Scitor Corp.

Types of Estimates  Top-down (macro) estimates: analogy. group consensus.  The task of balancing expectations of stakeholders and need for control while the project is implemented. or mathematical relationships  Bottom-up (micro) estimates: estimates of elements 1/12/13 37 5– .Projects Estimating Estimating  The process of forecasting or approximating the time and cost of completing project deliverables.

1/12/13 EXHIBIT 5. To determine how long the project should take and its cost. To develop time-phased budgets and establish the project baseline. To schedule work. To determine whether the project is worth doing.Why Estimating Time and Cost Are Important • • • • • • • To support good decisions. To determine how well the project is progressing.1 38 5– . To develop cash flow needs.

Factors Influencing the Quality of Estimates Planning Horizon Other (Nonproject) Factors Organization Culture Project Duration Quality of Estimat es People Padding Estimates Project Structure and Organization 1/12/13 39 5– .

2. Base estimates on normal conditions. Don’t make allowances for contingencies.Estimating Guidelines for Times. times. Use several people to make estimates. don’t aggregate. 1/12/13 7. Treat each task as independent. efficient methods. Adding a risk assessment helps avoid surprises 40 5– . 6. Have people familiar with the tasks make the estimate. 4. and a normal level of resources. Use consistent time units in estimating task 5. 3.Costs. and Resources 1.

knowledge of the processes used to complete the project. .  Are made by top managers who have little Bottom-Up Approach  Can serve as a check on cost elements in the WBS by rolling up the work packages and associated cost accounts to major deliverables at the work 41 1/12/13 5– package level.Top-Down versus Bottom-Up Estimating Top-Down Estimates  Are usually are derived from someone who uses experience and/or information to determine the project duration and total cost.

Top-Down and Bottom-Up Estimates 1/12/13 42 5– .

Thank you 1/12/13 .

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