1. Cristina MîndruţăSoftware Project Management Slide 1 Software Project Management Course 5

2. Cristina MîndruţăSoftware Project Management Slide 2 COURSE TOPICS PLANNING PROCESS GROUP. Time management planning processes Activity definition Activity resource estimating Activity duration estimating Activity sequencing Schedule development PLANNING PROCESS GROUP. Management plan processes Time management planning processes. Cost management planning processes Quality planning HR planning Communications planning Risk management planning Procurement management planning

3. Cristina MîndruţăSoftware Project Management Slide 3 COURSE TOPICS PLANNING PROCESS GROUP. Time management planning processes Activity definition Activity resource estimating Activity duration estimating Activity sequencing Schedule development PLANNING PROCESS GROUP. Management plan processes Time management planning processes. Cost management planning processes Quality planning HR planning Communications planning Risk management planning Procurement management planning

4. Cristina MîndruţăSoftware Project Management Slide 4 SCHEDULE DEVELOPMENT process Def. Project schedule = set of planned dates for performing schedule activities and the planned dates for meeting schedule milestones. Def. Project schedule process = iterative process that determines planned start and finish dates for project activities.

5. Cristina MîndruţăSoftware Project Management Slide 5 SCHEDULE DEVELOPMENT process Schedule Development process: Analyzes: - schedule activities sequences - schedule activity durations - schedule resource requirements - schedule constraints Creates the project schedule. Result: Are established the preliminary start and finished dates for project activities, based on schedule-related assumptions and constraints identified within the PSS. Obs. As work progresses, the PMP will likely change, and new risks will be identified.

6. Cristina MîndruţăSoftware Project Management Slide 6 SCHEDULE DEVELOPMENT process Schedule Development – evolving process Main output: Schedule Baseline = approved project schedule against which project progress can be tracked. Presentation methods for the project’s schedule: - Milestone schedule - Summary schedule - Detailed schedule with logical relationships Additional outputs: Schedule Model Data – supporting details:  identified assumptions and constraints  alternative schedules  extra time available, if needed Requested Changes document Updated Resource Requirements Updated Activity Attributes Updated Project Calendar Updated PMP with its associated Schedule Management Plan

7. Cristina MîndruţăSoftware Project Management Slide 7 COURSE TOPICS TOOLS AND TECHNIQUES FOR SCHEDULING Methods Gantt chart characteristics Critical Path Method integrated with PERT PLANNING PROCESS GROUP. Management plan processes Time management planning processes. Cost management planning processes Quality planning HR planning Communications planning Risk management planning Procurement management planning

8. Cristina MîndruţăSoftware Project Management Slide 8 METHODS Gantt chart Activity – time diagram. Simple model. Limitation: for complex projects, models that integrate procurement, resources and costs are necessary. ACTIVITYACTIVITY TIME

9. Cristina MîndruţăSoftware Project Management Slide 9 METHODS PERT diagram (program evaluation and review technique) Is a network diagram. Activities are represented as boxes. Placed in sequence, to represent the project flow. Uses statistic instruments to compute the range of the possible values for activities durations. Used in cases where uncertain, multiple possible values exist for the estimated durations.

10. Cristina MîndruţăSoftware Project Management Slide 10 METHODS CPM (Critical Path Method) Network representation. Allows identifying a sequence of consecutive activities that represent the longest path along the project schedule. Used in cases where exact estimations can be realized about activities durations.

11. Cristina MîndruţăSoftware Project Management Slide 11 METHODS DISCUSSION In time, differences between PERT and CPM methods where dimished. In the same time with the evolution of milestone-based planification, some aspects of PERT are introduced with CPM. In software tools for planning, PERT and CPM are integrated. Def. Milestone = planned event in the project life cycle. Formal represented as an activity with the duration equal to 0. Marks the end of an activity or of a project phase. Helpful in controlling the fulfillment of the contractors’ responsibilities. Def. Time baseline = Initial schedule of the project. Used as the referece for comparing the current planification.

12. Cristina MîndruţăSoftware Project Management Slide 12 COURSE TOPICS TOOLS AND TECHNIQUES FOR SCHEDULING Methods Gantt chart characteristics Critical Path Method integrated with PERT PLANNING PROCESS GROUP. Management plan processes Time management planning processes. Cost management planning processes Quality planning HR planning Communications planning Risk management planning Procurement management planning

13. Cristina MîndruţăSoftware Project Management Slide 13 GANTT CHART CHARACTERISTICS activity activity duration activity float (lag) activity start date activity end date

14. Cristina MîndruţăSoftware Project Management Slide 14 GANTT CHART CHARACTERISTICS Tool for project planning. Project progress is clearly represented. Gantt diagram format facilitates planning information communication and decission making. Def. Float (slack) = the amount of time that a terminal element (in a (WBS) can be delayed by, without causing a delay to the rest of the project. Gantt chart allows float representation, but: - inter-task relations are not represented => not visible the effects that the delaying of an activity have on other activities - before placing an activity on the diagram, decissions about sequencing, duration and resources availability must be taken. Problem. Gantt charts are not appropriate for complex projects. Solution. Used in combination with CPM.

15. Cristina MîndruţăSoftware Project Management Slide 15 COURSE TOPICS TOOLS AND TECHNIQUES FOR SCHEDULING Methods Gantt chart characteristics Critical Path Method integrated with PERT PLANNING PROCESS GROUP. Management plan processes Time management planning processes. Cost management planning processes Quality planning HR planning Communications planning Risk management planning Procurement management planning

16. Cristina MîndruţăSoftware Project Management Slide 16 CRITICAL PATH METHOD integrated with PERT METHOD objectives: Activity sequencing (Create activity diagram (activity graph)) Realize PERT analysis for task duration Identifiy critical path Procedure steps: 1. Create project activity diagram (project network) 2. Estimate activity duration 3. Create activity plan 4. Critical path determination

17. Cristina MîndruţăSoftware Project Management Slide 17 CRITICAL PATH METHOD integrated with PERT A project network is a graph or flow chart (a schematic representation of an algorithm or a process) depicting the sequence in which a project's terminal elements are to be completed by showing terminal elements and their dependencies. The WBS show the "part-whole" relations. In contrast, the project network shows the "before-after" relations. The condition for a valid project network is that it doesn't contain any circular references. Procedure steps: Create project activity diagram (project network) Estimate activity duration Create activity plan Critical path determination

18. Cristina MîndruţăSoftware Project Management Slide 18 CRITICAL PATH METHOD integrated with PERT Activity flow. Each activity has allocated an identifier (number). Procedure steps: Create project activity diagram (project network) Estimate activity duration Create activity plan Critical path determination Float types: a). Free float = the amount of time that a terminal element can be delayed by, without causing a delay to the subsequent activities b). Total float = the amount of time that a graph branch can be delayed by, without causing a delay to the whole project. - sum of the floats of all activities on the branch - can be redistributed among all activities on the branch

19. Cristina MîndruţăSoftware Project Management Slide 19 CRITICAL PATH METHOD integrated with PERT Represent activity time attributes as: Procedure steps: Create project activity diagram (project network) Estimate activity duration Create activity plan Critical path determination Early start Early finish Late startLate finish ES, EF - governed by: - predecessor task EF - current task duration LS, LF - governed by: - successor task LF - current task duration

20. Cristina MîndruţăSoftware Project Management Slide 20 CRITICAL PATH METHOD integrated with PERT Represent activity network : Procedure steps: Create project activity diagram (project network) Estimate activity duration Create activity plan Critical path determination Assumptions: ES(0) = first activity start For each consecutive activities k, k+1: EF(k) = ES(k) + duration(k) –1 ES(k+1)=EF(k)+1 LS(k)=LF(k)-duration(k)+1 LF(k)=LS(k+1)-1 Forward pass: Cover the diagram from left to right and compute ES and EF for each task. EF(n) = project finish date. Backward pass: LF(n)=EF(n) = project finish date. Cover the diagram from right to left and compute LS and LF for each task.

21. Cristina MîndruţăSoftware Project Management Slide 21 CRITICAL PATH METHOD integrated with PERT RESULTS: Activity plan analysis => project duration. Float(k)=LF(k)-ES(k)-duration(k) If Float(k)=0 => activity k is on the critical path, meaning that its delay results in the delay of the project. Procedure steps: Create project activity diagram (project network) Estimate activity duration Create activity plan Critical path determination

22. Cristina MîndruţăSoftware Project Management Slide 22 CRITICAL PATH METHOD integrated with PERT CPM advantage: - discover new relations among activities - compute the probability to match project’s deadlines - establish how changes modify the project - presents complex data in an orderly manner. The most popular form of project network is activity on node (AoN), the other one is activity on arrow (AoA).

23. Cristina MîndruţăSoftware Project Management Slide 23 EXAMPLE (AoN representation) Simplified node representation

24. Cristina MîndruţăSoftware Project Management Slide 24 EXAMPLE (AoN representation) Simplified node representation Forward pass: Cover the diagram from left to right and compute ES for each task. duration(start)=0 ES(k+1) = ES(k) + duration(k).

25. Cristina MîndruţăSoftware Project Management Slide 25 EXAMPLE (AoN representation) Simplified node representation Backward pass: Cover the diagram from right to left and compute LS for each task. ES(finish)=LS(finish) LS(k)=LS(k+1)-duration(k)

26. Cristina MîndruţăSoftware Project Management Slide 26 EXAMPLE (AoN representation) Simplified node representation Compute float: Float(k)=LS(k)-ES(k)

27. Cristina MîndruţăSoftware Project Management Slide 27 EXAMPLE (AoN representation) Simplified node representation Critical path Project duration: 20 +15 +16 = 51 ANALYSIS If Float(k)=0 => activity k is on the critical path, meaning that its delay results in the delay of the project.

28. Cristina MîndruţăSoftware Project Management Slide 28 COURSE TOPICS PLANNING PROCESS GROUP. Cost management planning processes Cost estimating Cost budgeting PLANNING PROCESS GROUP. Management plan processes Time management planning processes. Cost management planning processes Quality planning HR planning Communications planning Risk management planning Procurement management planning

29. Cristina MîndruţăSoftware Project Management Slide 29 COST MANAGEMENT PLANNING PROCESSES Cost estimating process Cost budgeting process Closely interrelated. Cost estimating should be completed before a detailed budget is requested. Management is concerned in the cost  earn relation.

30. Cristina MîndruţăSoftware Project Management Slide 30 COURSE TOPICS PLANNING PROCESS GROUP. Cost management planning processes Cost estimating Cost budgeting PLANNING PROCESS GROUP. Management plan processes Time management planning processes. Cost management planning processes Quality planning HR planning Communications planning Risk management planning Procurement management planning

31. Cristina MîndruţăSoftware Project Management Slide 31 COST ESTIMATING process Def. Cost estimating process = process of developing an approximation of the cost of the resources needed to complete the project activities. Involves: fluctuations risk other variances consideration of cost alternatives Objective : to determine the most accurate and cost effective estimates. Main relations with other processes: closely related to Activity Resource Estimating Process. lays the groundwork for Cost Budgeting Process. Cost estimates are: as good as information available, refined as additional details become available.

32. Cristina MîndruţăSoftware Project Management Slide 32 COST ESTIMATING process 1. Adapt the costs of a previous project. Has low accuracy. Approach especially used in initial estimations. 3. Individual cost estimations for activities and work packages. Combine individual estimations  estimated cost of the project 4. Elaborate a mathematical model for the project. 5. Software tools used in combination with previous methods  significantly simplify the estimation process. BUT the project manager still must do the estimations.

33. Cristina MîndruţăSoftware Project Management Slide 33 COST ESTIMATING process Assessments of the probable costs of the resources necessary to complete project activities Description of the activity’s scope of work Documentation about how the estimate were developed Known constraints Explanations of assumptions made Range of possible results with desired and approved changes that are believed to have an impact on the project’s cost management.

34. Cristina MîndruţăSoftware Project Management Slide 34 COST ESTIMATING process Causes for incorect estimation: 1. Limited information (accepted in the first part of the PLC) 2. Sub-estimating 3. Lack of knowledge about technical problems 4. Estimated values motivated only by the wish to obtain funds (can be unrealistically low) Project manager’s responsibilities: - to realize realistic estimations - to support and to respect them

35. Cristina MîndruţăSoftware Project Management Slide 35 COURSE TOPICS PLANNING PROCESS GROUP. Cost management planning processes Cost estimating Cost budgeting PLANNING PROCESS GROUP. Management plan processes Time management planning processes. Cost management planning processes Quality planning HR planning Communications planning Risk management planning Procurement management planning

36. Cristina MîndruţăSoftware Project Management Slide 36 COST BUDGETING process Def. Cost budgeting process = process of aggregating the estimated costs of individual activities or work packages to establish a cost baseline. Cost budgeting vs. Cost estimating shows costs across timeshows costs by category (activity)

37. Cristina MîndruţăSoftware Project Management Slide 37 COST BUDGETING process Predict the costs for the project work. Dictate when project activities occur and when associated budget monies will be spent. Details purchasing requirements and associated cost. Reflects how project costs will be controlled. Time-phased budget, used to measure and monitor overall cost performance on the project. Usually displayed as an S-curve. Includes, along with the baseline, a management reserve amount to compensate for either early progress or cost overruns.

38. Cristina MîndruţăSoftware Project Management Slide 38 COST BUDGETING process Management reserve amount: – a provision in the PMP to mitigate cost and/or schedule risk – the difference between the maximum funding and the end of the Cost Baseline. Management Reserve (MR) budget is an amount of the total allocated budget for management control purposes. Its purpose is to provide an adequate budget for in-scope but unanticipated work on the contract. As a contract proceeds to completion, and unanticipated, in-scope work is identified, MR budget is allocated to that work. Once allocated, MR budget becomes part of the performance measurement baseline (PMB) used to measure and control cost and schedule performance on the contract.

39. Cristina MîndruţăSoftware Project Management Slide 39 LABORATORY: Study “Using Open Workbench” cap 1,3,4,5 and 6. //blue/cadre/cmindruta/PM_InfoEngl/lab3/ lab3_1 lab3_2 and associated files