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Introduction To Project Management
Introduction To Project Management
• Project Scope
– How much work is to be done? Increasing the scope
causes more work to be done, and vice versa.
• Time
– The schedule of the project. Modifying the schedule
alters the start and end dates for tasks in the project
and can alter the project’s overall end date.
• Cost
– The cost required to accomplish the project’s
objectives. Modifying the cost of the project generally
has an impact on the scope, time, or quality of the
project.
Project Manager Roles and Interactions
Elements of Developing a Project Plan
” (from the PMI Practice Standard for Work Breakdown Structures, Oct 2000)”
Good WBS Design Principles
• The 100% Rule
– The WBS defines 100% of the work of the project
– Anything that isn’t defined in the WBS is outside the scope of the project.
– The work content on any item is the sum of what is included under that
work item
• Upper Levels are Planned outcomes (deliverables), not
planned actions
• Ends of WBS include the activities needed to create the
project deliverables
• Mutually-exclusive elements
– Work should only appear in one place in the WBS
• WBS must be consistent with the way the project will be
performed and controlled
• Must be easy to update
WBS Role
1 Project Management 2 Ship 3 System Engineering 4 System Test and 5 Integrated Logistics 6 Operational/Site 7 Industrial Facilities
Evaluation Support Activation
2.6 Armament
2.7
Integration/Engineerin
g
2.8 Ship Assembly
and Support Systems
Sample WBS – Service Type Project
Service Project -
International
Conference Project
1 Project 2 Work Plan 3 Product and 4 Hazard Analysis 5 Q.A. Process 6 CCP Plan 7 HACCP
Management Process Analysis Process Implementation
Why create a WBS?
• Cost Estimating
• Cost Budgeting
• Resource Planning
• Risk Management Planning
• Activity Definition
Scheduling
• Scheduling forces:
– Quantification of discrete effort
– Placement of tasks in proper relationship
• Two most common scheduling
methodologies
– Bar Charts (aka Gantt Charts)
– Critical Path Method (CPM) using Precedence
Diagramming Method (PDM)
Bar / Gantt Charts Defined:
25 01 08 15 22 29 05 12 19 26 05 12 19 26 02 09 16 23 30 07 14 21 28 04
WBS Description
5 Prototype
Finish to Start (FS) – Activity A must Finish before Activity B may Start.
The lag is usually zero. FS is the most common type.
Activity A Activity B
Start to Finish (SF) – Activity A must start before Activity B may Finish. The
lag is usually greater than either activity duration. FS is the least common type.
Activity A Activity B
PDM Logic Relationships
Finish to Finish (FF) – Activity A must Finish before Activity B may Finish.
The lag value is usually greater than zero. FF is a less common type.
Activity A Activity B
Start to Start (SS) – Activity A must Start before Activity B may Start.
The lag value is usually greater than zero. SS is a less common type.
Activity A Activity B
PDM Time Calculations
8 E 8 0 12 G 18
1 7
0
4 F 10 Early Finish Calculation
7 12 + 7 – 1 = 18
Backward Pass Example
18 H 24
Late Start Calculation 2 25 7 31
22 - 4 + 1 = 19
14 K 17 0 18 I 21
19 4 22 24 4 27
0
18 J 18
Late Finish Calculations
34 1 34
(H to K) 25 - 2 - 1 = 22
(I to K) 24 - 0 - 1 = 23
(J to K) 34 - 0 - 1 = 33
CPM Example Exercise
A B C H
6d 11d 20d 20d
J D E F
20d 13d 9d 20d
G I
6d 13d
CPM Example Exercise
A B C H
1d 6d 6d 7d 11d 17d 18d 20d 37d 63d 20d 82d
J D E F
1d 20d 20d 21d 13d 33d 34d 9d 42d 43d 20d 62d
G I
34d 6d 39d 40d 13d 52d
CPM Example Exercise
A B C H
1d 6d 6d 7d 11d 17d 18d 20d 37d 63d 20d 82d
4d 9d 10d 20d 43d 62d 63d 82d
J D E F
1d 20d 20d 21d 13d 33d 34d 9d 42d 43d 20d 62d
1d 20d 21d 33d 34d 42d 43d 62d
G I
34d 6d 39d 40d 13d 52d
44d 49d 50d 62d
CPM Example Exercise
A B C H
1d 6d 6d 7d 11d 17d 18d 20d 37d 63d 20d 82d
4d 9d 10d 20d 43d 62d 63d 82d
J D E F
1d 20d 20d 21d 13d 33d 34d 9d 42d 43d 20d 62d
1d 20d 21d 33d 34d 42d 43d 62d
G I
34d 6d 39d 40d 13d 52d
44d 49d 50d 62d
CPM – Float (or Slack) and Critical Path
• Additional Network calculations provides other
important information allowing analysis and
control:
– Total Float (TF) – The amount of time an activity can
be delayed without delaying the overall project
completion, which is equal to Late Finish minus Early
Finish.
– Free Float (FF) – The amount of time an activity can be
delayed without delaying the start of another activity.
Can be determine by subtracting the smallest Total
Float going into an activity from each predecessor into
that activity.
– Critical Path – The path through the Network that has
the longest total duration, thus it defines the shortest
period of time in which the project may be completed.
Float Calculation Example
FT = 15
FF = 5
21 V 30
35 10 45
FT = 10 FT = 10 FT = 0
FF = 0 FF = 0 FF = 0
29 W 35 36 X 40 51 Z 60
39 7 45 46 5 50 51 10 60
FT = 0
FF = 0
44 Y 50
44 1 50
CPM Example Exercise
A B C H
1d 6d 6d 7d 11d 17d 18d 20d 37d 63d 20d 82d
4d 9d 10d 20d 43d 62d 63d 82d
J D E F
1d 20d 20d 21d 13d 33d 34d 9d 42d 43d 20d 62d
1d 20d 21d 33d 34d 42d 43d 62d
G I
34d 6d 39d 40d 13d 52d
44d 49d 50d 62d
CPM Example Exercise
Float Results
A B C H
1d 6d 6d 7d 11d 17d 18d 20d 37d 63d 20d 82d
4d 3d 9d 10d 3d 20d 43d 25d 62d 63d 0d 82d
J D E F
1d 20d 20d 21d 13d 33d 34d 9d 42d 43d 20d 62d
1d 0d 20d 21d 0d 33d 34d 0d 42d 43d 0d 62d
G I
34d 6d 39d 40d 13d 52d
44d 10d 49d 50d 10d 62d
CPM Example Exercise
A B C H
1d 6d 6d 7d 11d 17d 18d 20d 37d 63d 20d 82d
4d 3d 9d 10d 3d 20d 43d 25d 62d 63d 0d 82d
J D E F
1d 20d 20d 21d 13d 33d 34d 9d 42d 43d 20d 62d
1d 0d 20d 21d 0d 33d 34d 0d 42d 43d 0d 62d
G I
34d 6d 39d 40d 13d 52d
44d 10d 49d 50d 10d 62d
Scheduling Basics Review
• Can:
– Provide early (Difficult to ignore) performance
problem identification
– Improve financial Reporting
• Does not:
– Recognize Critical Paths
• Will not:
– Take management action
Measurement Terminology
• Budget at Completion (BAC)
– The sum of the total budget for a work package, major task, or project.
• Planned Value (PV)
– The scheduled cost based on the allocation cost items such resources and material
during the timeline of an activity
– Also called Budgeted Cost for Work Scheduled (BCWS)
• Earned Value (EV)
– The value of the work performed to-date using any reasonably accurate, mutually
acceptable methodology for determining value (i.e.; 0/100%, 50/50%, 30/40/40, ratio
of units completed versus total units, manager estimate, level of effort, being some
examples).
– Also called Budgeted Cost for Work Performed (BCWP)
• Actual Valve (AV)
– Total incurred costs charged to a work package by the company’s accounting
system, which can include labor costs, direct costs (overhead), and indirect costs
(material, travel, and etc.)
– Also called Actual Cost for Work Performed (ACWP)
• Will
– Describe a simple project and its progress
– Define earned value and related terms
– Show how earned value defines project
performance
Note: Sample tables and graphics shown in following slides are from PMPlan
Schedule
• This project is
on schedule
and should be
completed
under budget.
• With the project
all of the earned
bars line up with
the green status
line.
Why 50% Complete may not be half the schedule bar!
• In the above sample, all three activities have earned values of 50% of BAC, but the black earned
bars are not the same length even though the planned bars are the same.
• Task A is behind schedule, because 75% of the budget was to be spent by end of December.
• Task B is ahead of schedule, because only 25% of the budget was to be spent by end of
December.
In Summary – an Earned Value System
• Can:
– Provide early (Difficult to ignore) performance
problem identification
– Improve financial Reporting
• Does not:
– Recognize Critical Paths
• Will not:
– Take management action
Project Management Methods Summary