PROJECT SCOPE, SCHEDULE, AND RESOURCE MANAGEMENT

PROJECT SCOPE, SCHEDULE, AND RESOURCE MANAGEMENT

TRIPLE CONSTRAINTS Project Management Triple Constraints or “Iron Triangle” is a model of constraints of project management

PROJECT SCOPE MANAGEMET

SCOPE MANAGEMENT PROCESSES
Collect Requirements: Determining and documenting stakeholder needs Define Scope: Developing of detailed description of project and product Create WBS: Subdividing project deliverables and project work into smaller, more manageable parts

WORK BREAKDOWN STRUCTURE (WBS)

WHAT IS WBS? Project Management Inctitute (PMI) defines WBS as:
“A hierarchical decomposition of the total scope of work to be carried out by the project team to accomplish the project objectives and create the required deliverables”

WHAT IS WBS? Wikipedia defines WBS as:
“A work breakdown structure (WBS), in project management and systems engineering, is a deliverable oriented decomposition of a project into smaller components. It defines and groups a project's discrete work elements in a way that helps organize and define the total work scope of the project.” “A work breakdown structure element may be a product, data, service, or any combination.”

WBS TYPES Approaches to break activities into detail by:
Product component approach Examples: Design documents, manuals, the running system Functional approach Analysis, design, implementation, integration, testing, delivery, reviews Geographical area Examples: TUM team, CMU team, off-shore team, ... Organizational approach Research, product development, marketing, sales

WBS LEVELS Each level of WBS represents an increasingly detailed definition of project WBS lays out the individual elements that will construct the project Each element must be numbered Lowest level elements are called “Work Packages”

WBS LEVELS AND NUMBERING
Major project deliverables or activities are identified Codes assigned to each WBS component Level 0 - project itself Level 1 - major deliverables Level 2 - individual components of each deliverable Etc. Final level – work package

WBS NUMBERING SYSTEM 1.0 1.2 1.3 1.4 1.2.1 1.2.2 1.2.3 1.3.1 1.3.2 The project is the overall project under development Deliverables are major project components Sub-deliverables are supporting deliverables Work Packages are individual project activities

PRODUCT WBS

PROCESS WBS

WBS PURPOSE Project Scope: Shows all project activities that will be necessary to do Project Chart: Project organization shows structural hierarchy of project team. WBS shows structural hierarchy of project work to be done Project Time & Cost Estimation: Work packages are used to estimate time & cost, and they are rolled-up (aggregated) upwards Project Measurement & Control: Each work package is assigned a cost account, and its status is tracked

WBS DESIGN Top-Down Bottom-Up Both Top-Down & Bottom-Up
Rolling Wave – greater decomposition occurs as project components becomes more defined over time Each level should contain around +/- 7 elements

WORK PACKAGE Work packages should contain activities that are short in duration (1 or 2 weeks) Work package activities can be completed by an individual or a small team All work packages should be similar in size or effort needed unless work package is being outsourced to another company

WBS REPRESENTATION Organization Chart (Tree-Structued like in previous examples) Indented List Bubble-Chart

PROJECT TIME MANAGEMENT

TIME MANAGEMENT PROCESSES
Define Activities: Identify specific actions to be performed to produce project deliverables Sequence Activities: Identifying relationships among project activities Estimate Activity Resources: Estimate type of quantities of material, human resources, equipment, or supplies to perform each activity Estimate Activity Durations: Estimate number of hours to complete each activity Develop Schedule: Analyze activity sequences, durations, resource requirements, and schedule constraints to create schedule model

DEFINE ACTIVITIES Break down work packages into activities that provide a basis for estimating, scheduling, executing, monitoring, and controlling Activity definitions include description, name, identifier, WBS (Work Package) ID, predessor & successor activities, leads & lags, resource requirements, imposed dates, constraints, and assumptions, person responsible, etc.

ACTIVITIES IN MS PROJECT

NETWORK DIAGRAM Provide a basis for planning and how to use the resources Identify the critical path and project completion time Identify where slacks (float) are Reveal interdependencies of activities Aid in risk analysis (what-if analysis)

NETWORK DIAGRAM Identify relationships among activities to obtain greatest efficiency given all constraints Project network diagram is a schematic display that illustrates the various activities (or tasks) in a project as well as their sequential relationships Activity sequences can be sequential or parallel

NETWORK DIAGRAM Precedence Diagramming Method (PDM) activities are represented by nodes and graphically linked by one or more logical relationships to show their sequences Activity-on-node (AON) is one method of representing PDM AON is used by most project management software tools

NETWORK DIAGRAM

MS PROJECT NETWORK DIAGRAM

Project Scheduling Terms
Successors Predecessors Network diagram Serial activities Concurrent activities Merge activities Burst activities Node Path Critical Path E D C B A F 5/2/2019

SEQUENCE ACTIVITIES All activities must be linked to each other
Network diagrams flow from left to right An activity cannot begin until all preceding connected activities have been completed Each activity should have a unique identifier (number, letter, code, etc.) Looping is not permitted It is common to start from a single beginning and finish on a single ending node

Activity TYPES Serial activities flow from one to the next
Concurrent activities are accomplished at the same time Merge activities have two or more immediate predecessor Burst activities have two or more successor activities 5/2/2019

Serial Activities 5/2/2019

Parallel Activities 5/2/2019

Merge Activities Activity A Activity B Activity D Activity C 5/2/2019

Burst Activities Activity B Activity A Activity C Activity D 5/2/2019

ACTIVITY SEQUENCING Define the project and all of its significant activities Develop the relationship among activities Decide which activities must precede others Draw the network connecting all of the activities Compute the longest path which is the critical path Calculate activity slacks (float) Use the network to help plan, schedule, and control the project

CRITICAL PATH Path through the project network with the longest duration The shortest time a project can be completed Path may change from time to time as activities are completed ahead or behind schedule Path activities have zero total slack and least amount of scheduling flexibility Any delay on the critical activities will delay the project A project manager should watch the critical path activities very carefully

Forward Pass Forward pass determines the earliest times (ES) each activity can begin and the earliest it can be completed (EF). There are three steps for applying the forward pass: Add all activity times along each path as we move through the network (ES + Duration = EF) Carry the EF time to the activity nodes immediately succeeding the recently completed node. That EF becomes the ES of the next node, unless the succeeding node is a merge point At a merge point, the largest preceding EF becomes the ES for that node (because the earliest the successor can begin is when all preceding activities have been completed) 5/2/2019

Backward Pass The goal of the backward pass is to determine each activity's Late Start (LS) and Late Finish (LF) times. There are three steps for applying the backward pass: Subtract activity times along each path through the network (LF – Duration = LS). Carry back the LS time to the activity nodes immediately preceding the successor node. That LS becomes the LF of the next node, unless the preceding node is a burst point. In the case of a burst point, the smallest succeeding LS becomes the LF for that node (because the latest the predecessor can finish is when any one of the successor activities should start) 5/2/2019

Slack Time (Float) Since there exists only one path through the network that is the longest, the other paths must either be equal or shorter Therefore, there are activities that can be completed before the time when they are actually needed The time between scheduled completion date and required date to meet critical path is referred as the slack time 5/2/2019

Slack Time (Float) The use of slack time provides better resource scheduling. It is also used as warning sign i.e. if available slack begins to decrease then activity is taking longer than anticipated. Slack time is equal to: LS – ES or LF – EF 5/2/2019

CRITICAL PATH EXAMPLE ACTIVITY DESCRIPTION IMMEDIATE PREDECESSORS A
Build internal components — B Modify roof and floor C Construct collection stack D Pour concrete and install frame E Build high-temperature burner F Install control system G Install air pollution device D, E H Inspect and test F, G

EXPECTED TIME, t = [(a + 4m + b)/6]
CRITICAL PATH EXAMPLE ACTIVITY OPTIMISTIC, a MOST PROBABLE, m PESSIMISTIC, b EXPECTED TIME, t = [(a + 4m + b)/6] VARIANCE, [(b – a)/6]2 A 1 2 3 4/36 B 4 C D 6 16/36 E 7 36/36 F 9 64/36 G 11 5 H 25

CRITICAL PATH EXAMPLE

CRITICAL PATH EXAMPLE To find the critical path, we need to determine the following quantities for each activity in the network. Earliest start time (ES): the earliest time an activity can begin without violation of immediate predecessor requirements. Earliest finish time (EF): the earliest time at which an activity can end. Latest start time (LS): the latest time an activity can begin without delaying the entire project. Latest finish time (LF): the latest time an activity can end without delaying the entire project.

CRITICAL PATH EXAMPLE A t = 2 ES = 0 EF = 0 + 2 = 2 Start B t = 3

CRITICAL PATH EXAMPLE A 2 Yes B 3 1 4 No C D 7 8 E F 10 13 6 G H 15
ACTIVITY EARLIEST START, ES EARLIEST FINISH, EF LATEST START, LS LATEST FINISH, LF SLACK, LS – ES ON CRITICAL PATH? A 2 Yes B 3 1 4 No C D 7 8 E F 10 13 6 G H 15

CRITICAL PATH EXAMPLE The critical path analysis helped to determine the expected project completion time of 15 weeks But variation in activities on the critical path can affect overall project completion, and this is a major concern PERT uses the variance of critical path activities to help determine the variance of the overall project

CRITICAL PATH EXAMPLE Optimistic Time: time an activity will take if everything goes well. There should be only a small probability, say 1/100 of this happening Pessimistic Time: time an activity will take if nothing goes well. There should be only a small probability, say 1/100 of this happening Most Likely: Most realistic time estimate to complete an activity

PERT TIME ESTIMATES ∑ variances of activities on the critical path
Project variance = ∑ variances of activities on the critical path

EXPECTED TIME, t = [(a + 4m + b)/6]
PERT TIME ESTIMATES ACTIVITY OPTIMISTIC, a MOST PROBABLE, m PESSIMISTIC, b EXPECTED TIME, t = [(a + 4m + b)/6] VARIANCE, [(b – a)/6]2 A 1 2 3 4/36 B 4 C D 6 16/36 E 7 36/36 F 9 64/36 G 11 5 H 25

PROJECT VARIANCE ACTIVITY VARIANCE A 4/36 C E 36/36 G 64/36 H Project variance = 4/36 + 4/ / /36 + 4/36 = 112/36 = 3.111

PROJECT VARIANCE We know the standard deviation is just the square root of the variance, so:

STANDARD DEVIATION

PROJECT COMPLETION PROBABILITY
From Areas Under the Standard Curve, we find the probability of associated with this Z value. That means the probability this project can be completed in 16 weeks or less is

The project’s expected completion date is 15 weeks. There is a 71.6% chance that the equipment will be in place within the 16-week deadline. Five activities (A, C, E, G, H) are on the critical path. Three activities (B, D, F) are not critical but have some slack time built in.

ACTIVITY RELATIONSHIPS
Precedence Diagramming Method (PDM) : includes four types of dependencies or logical relationships Finish-to-Start(FS): Successor activity cannot start until predecessor activity has finished Finish-to-Finish(FF): Successor activity cannot finish until predcessor activity has finished Start-to-Start(SS): Successor activity cannot start until predcessor activity has started Start-to-Finish(SF): Successor activity cannot finish until predcessor activity has started

ACTIVITY RELATIONSHIPS

Lag Lag is the time between Early Start or Early Finish of one activity and Early Start and Early Finish on another activity. For example, in a Finish-to-Start dependency with a 10-day lag, the successor activity cannot start until 10 days after the predecessor activity has finished. Lags are not the same as slacks. Lags are between activities whereas slacks are within activities. 5/2/2019

This lag is not the same as activity slack
Finish to Start Lag Most common type of sequencing Shown on the line joining the modes Added during forward pass Subtracted during backward pass This lag is not the same as activity slack A Spec Design 6 B Design Check 5 C Blueprinting 7 Lag 4 5/2/2019

Lead Lead allows an acceleration of the successor activity. We can expedite the schedule by not waiting a preceding activity to be completely finished before starting its successor. For example, in a Finish-to-Start dependency with a 10-day lead, the successor activity can start 10 days before the predecessor activity has finished. 5/2/2019

Laddering Activities ABC=18 days Laddered ABC=12 days
Project ABC can be completed more efficiently if subtasks are used (Fast Tracking) ABC=18 days A(3) B(6) C(9) A1(1) A2(1) A3(1) B1(2) B2(2) B3(2) C1(3) C2(3) C3(3) Laddered ABC=12 days 5/2/2019

Useful with a complex project or one that has a shared budget
Hammock Activities Used as summaries for subsets of activities 0 A 5 B 15 15 C 18 0 Hammock 18 Useful with a complex project or one that has a shared budget 5/2/2019

GANTT CHARTS Establish a time-phased network
Can be used as a tracking tool Benefits of Gantt charts Easy to create and comprehend Identify the schedule baseline network Allow for updating and control Identify resource needs

GANTT CHART EXAMPLE FIGURE 10.8
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

GANTT CHART – CRITICAL PATH
FIGURE 10.9 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

GANTT CHART – RESOURCES

GANTT CHART – LAG RELATIONSHIPS

PROJECT CRASHING

Project Crashing The process of accelerating a project is referred as crashing Crashing a project relates to resource commitment; the more resources expended, the faster the project will finish There are several reasons to crash a project: Initial schedule was too optimistic Market needs change and the project is in demand earlier than anticipated The project has slipped considerably behind schedule There are contractual late penalties

Project Crashing Principal methods for crashing are:
Improving existing resources’ productivity Changing work methods Increasing the quantity of resources Increasing the quantity of resources is the most commonly used method for project crashing. There are 2 approaches: Working current resources for longer hours (overtime, weekend work, etc.) Adding more personnel

Project Crashing Time-Cost Trade-Offs for Crashing Activities
Fully expedited (no expense is spared) Time-Cost Trade-Offs for Crashing Activities

Project Crashing In analyzing crash options, the goal is to find the point at which time and cost trade-offs are optimized. Various combinations of time-cost trade-offs for crash options can be determined by using the following formula: Slope = crash cost – normal cost normal time – crash time

ACTIVITY NORMAL VS CRASH COST
SUPPOSE: NORMAL ACTIVITY DURATION = 8 WEEKS NORMAL COST = $14,000 CRASHED ACTIVITY DURATION = 5 WEEKS CRASHED COST = $23,000 THE ACTIVITY COST SLOPE = 23,000 – 14, OR $9,000 = $3,000 per week 8 – Cease crashing when: target completion time is reached crash cost exceeds the penalty cost

Duration (days) Total Costs 27 $22,450 26 $22,700 25 $22,950 24 $24,700 23 $26,450 22 $28,200 21 $30,200 20 $32,200 19 $34,200 Table 10.1 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Project Crashing Example-2
Crashed Activity Cost Duration Extra Cost A 5,000 4 weeks 4,000 3 weeks B* 10,000 5 weeks 3,000 C 3,500 2 weeks 1 week D* 4,500 6 weeks E* 1,500 2,500 F 7,500 8 weeks 7 weeks G* H

Project Crashing Example-2
Duration Direct Costs Penalties Overhead Total 21 weeks 37,500 10,000 10,500 58,000 20 weeks 40,000 5,000 55,000 19 weeks 42,500 - 0 - 9,500 52,000 18 weeks 45,500 9,000 54,000 16 weeks 49,500 8,000 56,500

ESTIMATE ACTIVITY RESOURCES
Estimate the type and quantities of material, human resources, equipment, or supplies required to perform each activity Resource calendar which shows working days and shifts each specific resource available is used for input in estimating resource utilization Resource attributes include experience, skill, geographical locations, etc.

ESTIMATE ACTIVITY RESOURCES
Activity resource requirements i.e. Types and quantities of resources required for each activity in a work package is established Resource Breakdown Structure (RBS) which is a hierarchical representation of resources by category and type

ESTIMATE ACTIVITY DURATIONS
Estimation of amount of work effort required to complete an activity by taking into account available resources Estimated activity resource requirements will have an effect on duration of an activity For example, lower-skilled resources are available, there may be reduced efficiency or productivity due to training leading to a longer duration estimate

RESOURCE MANAGEMENT At any given time, a company may have a fixed level of various resources available for its projects Relationship between time and resource availability & usage is should be optimized Effective project scheduling is a multi-step process Project Activity Network should be created and then available resources for each activity should be considered Network can change depending on resource availability and skill levels

RESOURCE MANAGEMENT Project durations can be shortened if activities can be done in parallel; of course if there is personnel available to do the job Physical resources can also be a problem Challenge of optimally scheduling resources across project’s network activity diagram becomes highly complex

RESOURCE LOADING Resource loading describes amount of individual resources a schedule requires during specific time periods Loads (requirements) of each resource type listed as a function of time period They are called Resource Loading Table/Chart or Resource usage calendar Resource loading gives a general understanding of a project’s demands on a company’s resources They can also provide warning signs of resource over location problems

RESOURCE OVERALLOCATION

RESOURCE LOADING CHART

RESOURCE LEVELING Resource leveling also called resource smoothing
Has two objectives: To determine resource requirements so that they will be available at the right time To allow each activity to be scheduled with the smoothest possible transition across resource usage levels Large fluctuations in required loads for various resources are a normal occurrence – but they are undesirable – WHY?

RESOURCE LEVELING If a given resource is nearly constant over its period of use, it is easier to manage If resource is people it improves morale Cost of hiring and layoff are expensive There are 2 techniques to level resources: Activity Shifting Activity Splitting

RESOURCE ALLOCATION There are 2 approaches to constrained resource allocation problems: Optimization Methods: use mathematical programming such as linear programming Heuristic Methods: Simplified rules of thumb when making decisions among alternatives

Heuristic Methods with the smallest amount of slack
with the smallest duration that start earliest with the most successor tasks requiring the most resources

RESOURCE LEVELING STEPS
Create a project activity network diagram Create a table showing the resources required for each activity, durations, and the total float available Develop a time-phased resource loading table Identify any resource conflicts and begin to smooth the loading table using one or more heuristics

RESOURCE LEVELING EXAMPLE

Activity Duration Predecessors ES EF LS LF Slack A 5 None B 4 9 6 10 1 C D 11 8 14 3 E 15 16 F G 18 H 7 E,F 23 I 20 J K H,I,J 28

Activity Resource Hours/Week Days Total Resource Hours A 6 5 30 B 2 4 8 C 20 D 3 18 E F 12 G 16 H 7 21 I J K 25 Total= 194

On day 10 the required resource hours is 10 If project is budgetted for up to 10 resource units per day, then it is acceptable. C, D, and E are all scheduled on this day and have require 4, 3, and 3 hours respectively Which activity should be adjusted? C is on the critical path E has 1 day slack D has 3 days of slack (we can split the activity)

RESOURCE LOADING CHARTS
Another way to create a visual diagram of resource management problem is to use resource-loading charts. Resource conflicts can be seen in the resource-loading charts. They are used to display the amount of resources required as a function of time on a graph. Each activity’s resource requirements are represented as a block (resource requirement over time).

RESOURCE LOADING CHART EXAMPLE
Display the amount of resources required as a function of time. Resource Limit is set at 8 hourly units per day 0 A 4 Res = 6 4 B 5 Res = 2 5 D 9 Res = 7 9 E 11 Res = 3 4 C 7 Res = 2 11 F 12 Res = 6

Activity Resource Duration ES Slack LF A 6 4 B 2 1 5 C 3 11 D 7 9 E F 12

2 4 6 8 12 10 14 C B D E F Project Days Resources

PROJECT SCOPE, SCHEDULE, AND RESOURCE MANAGEMENT

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PROJECT SCOPE, SCHEDULE, AND RESOURCE MANAGEMENT

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