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PROJECT MANAGEMENT SCOPE ,

TIME MANAGEMENT AND COST


MANAGEMENT.
GROUP MEMBERS:
MANSOOR AHMAD
IRFAN ABBAS
M. SHAHID
AQIB JABBAR
WHAT IS PROJECT MANAGEMENT SCOPE?

• Information about the project we are going to start.


DELIVERABLES

Is project delivered on time?


PROCESSES OF PROJECT SCOPE MANAGEMENT

• This process has three steps:


1. Planning
2. Controlling
3. Closing
WORK BREAKDOWN STRUCTURE (WBS)
CONTROLLING SCOPE

• Is project is being made properly?


TIME MANAGEMENT IN PROJECT MANAGEMENT

Division of time for making successful project.


1. ACTIVITY DEFINITION:

• Identifying and scheduling different components of the project management


sequence that are required for completion of project deliverables.
2. ACTIVITY SEQUENCING

• The process of project time management that defines the order in which
deliverables must be completed.
3. SCHEDULE

• the analysis of the order of activities, timelines, resources, and schedule


barriers to develop a project schedule.
PROJECT MANAGEMENT NETWORK DIAGRAM
• A network diagram in project management is useful for planning and tracking
the project from beginning to finish. It represents a project’s critical path as
well as the scope for the project.
• A good network diagram will be a clear and concise graphic representation
of a project.
CRITICAL PATH METHOD
(CPM)

• step-by-step project management technique for process planning that defines


critical and non-critical tasks with the goal of preventing time-frame problems.
TASKS OF CPM

• Define the required tasks and put them down in an ordered (sequenced) list.
• Create a flowchart or other diagram showing each task in relation to the
others.
• Identify the critical and non-critical relationships (paths) among tasks.
• Determine the expected completion or execution time for each task.
• Locate or devise alternatives (backups) for the most critical paths.
PERT

A PERT chart is a project management tool used to schedule, organize, and


coordinate tasks within a project.
A methodology developed by the U.S. Navy in the 1950s to manage the
Polaris submarine missile program.
EXAMPLE
ADM & PDM

• 1. Arrow diagramming method :Arrow diagramming method (ADM) is a


network diagramming technique in which activities are shown with arrows.
ADM is also known as the activity-on-arrow (AOA) method.
• 2. The precedence diagram method : . It is a method of constructing
a project schedule network diagram that uses boxes, referred to as nodes, to
represent activities and connects them with arrows that show the
dependencies.
TASK DEPENDENCY

• Relationships of the preceding tasks to the succeeding tasks.


PROJECT COST MANAGEMENT

• A method that uses technology to measure cost and productivity through the
full life-cycle of enterprise level projects.
DIRECT COST

• A direct cost is a price that can be completely attributed to the production of


specific goods or services.
INDIRECT COST

• Indirect costs include costs which are frequently referred to as overhead


expenses (for example, rent and utilities) and general and administrative
expenses (for example, officers' salaries, accounting department costs and
personnel department costs).
FIXED COST

• Fixed costs, indirect costs or overheads are business expenses that are not
dependent on the level of goods or services produced by the business.
VARIABLE COST

• Variable costs are costs that change as the quantity of the good or service
that a business produces changes.
EV

• Earned Value is the amount of the task that is actually completed.


• Earned Value (EV) Also known as Budgeted Cost of Work Performed (BCWP)
• Formula:
• Earned Value = % of completed work X BAC (Budget at Completion).
PV

• This is the first element of earned value management. Planned Value is the
approved value of the work to be completed in a given time. It is the value
that you should have earned as per the schedule.

• Planned Value = (Planned % Complete) X (BAC)


ACTUAL COST (AC)

• Actual Cost is the total cost incurred for the actual work completed to date.
• Finding Actual Cost is the simplest of all.
• No unique formula.
CV: COST VARIANCE (CV)

• Cost variance (CV), also known as budget variance, is the difference between
the actual cost and the budgeted cost, or what you expected to spend versus
what you actually spent.
• Difference between the actual cost and the budgeted cost
SV

• Cost and schedule variance data are part of earned value analysis, which is
a tool that small and large businesses use as an early-warning system to
identify and manage problems in ongoing projects. Cost and schedule
variances measure differences between actual and planned costs and
schedules, respectively.
BAC

• Earned Value Management. Budget at Completion (BAC) Budget at


Completion (BAC) are established early in the contract for every given level
of the Work Breakdown Structure (WBS).
CPI

• The cost performance index (CPI) is a measure of the financial effectiveness


and efficiency of a project. It represents the amount of completed work for
every unit of cost spent.
SPI

• The Schedule Performance Index indicates how efficiently you are actually
progressing compared to the planned project schedule.
• According to the PMBOK Guide, “The Schedule Performance Index (SPI) is a
measure of schedule efficiency, expressed as the ratio of earned value to
planned value.”
BASIC PRINCIPLES

• 1. Provide Clear, Consistent Performance Objectives


• 2. Provide Knowledge, Tools To Succeed
• 3. Understand True Costs
COST ESTIMATION

• Forecasting the required budget for project.


TOOLS FOR COST ESTIMATION

• Analogous Estimating. This technique is employed to estimate the project cost


when limited detail about the project is available.
• Parametric Estimating. Like analogous estimating, parametric estimation uses
historical data to calculate cost estimates; however, it also utilizes statistical
data. It takes variables from similar projects and applies them to the current
project.
COST CONTROL

• Identifying and reducing business expenses to increase profits, and it starts


with the budgeting process.
CONCLUSION?
THANK YOU 