1. Chapter 7 Schedule Control1 1 1 1 1 1 1 1 1

2. Learning Objectives Perform the steps in the project control process
Determine the effects of actual schedule performance on the project schedule
Incorporate project changes into the schedule
Calculate an updated project schedule
Control the project schedule 2 2 2 2 2 2 2 2 2 2 2

3. Real World Example Vignette: Internal Revenue Service
The US IRS has been upgrading its IT infrastructure and business applications. The $8 billion project includes the new Customer Account Data Engine (CADE)
5 years into project, CADE was almost three years behind schedule and 40% over budget. Reasons for delay: poor communication, lack of accountability, managers and system users were not consulted, IRS gave contractors little direction, and they gave approval to protocols without testing them
Requirements were not met with new system designs
Improvements made by the IRS: accountability established, employees are given specific tasks, and managers and system users are providing more input
Through better project management, the IRS hopes the system upgrade will be completed as soon as possible 3 3 3 3 3 3 3 3 3 3 3

4. Real World Example Vignette: Nike Rebounds
In 2000, Nike implement a new demand-planning supply chain system, called “i2.” It didn’t work because of a glitch, and Nike lost $100 million in sales
“i2” was built in a hurry. It resulted in too many or too few orders for many products. This fragmented Nike’s supply chain, instead of centralizing it
Nike fixed their failed project by: increasing efforts to fix the software problems with i2, implementing a test plan, and requiring extensive employee training
The company decided to continue using the i2 for its clothing sales. They applied the mistakes they made with i2 to their new project, an enterprise resource planning system for sneaker orders 4 5 5 4 5 4 4 4 4 4

5. Project Control Process
The key to effective project control is to
measure actual progress
and compare it to planned progress
on a timely and regular basis
and to take required corrective action immediately.
Establish a regular reporting period.
During each reporting period, collect:
data on actual performance
information on any changes to project scope, schedule and budget.
Changes mean a new plan must be established. 5 7 7 5 7 5 5 5 5 5

7. Effects of Actual Schedule Performance
Actual finish times (AFT) of completed activities will determine the earliest start and earliest finish times for the remaining activities. 6 8 8 6 8 6 6 6 6 6

9. Incorporating Project Changes into the Schedule
Changes might be initiated by the customer or the project team, or they might be the result of an unanticipated occurrence.
The degree of impact may depend on when the changes are requested.
When the customer requests a change, additional costs might need to be charged. 7 10 10 7 10 7 7 7 7 7

10. Updating the Project Schedule
An updated project schedule can be calculated based on actual finish times of completed activities 8

11. Approaches to Schedule Control Four Steps
Analyze the schedule
Decide what corrective actions should be taken, if any
Revise the plan
Recalculate the schedule 9 11 11 8 11 8 9 8 8 8

12. Approaches to Schedule Control (Cont.)
A change in the estimated duration of any activity will cause a corresponding change in the slack for that path.
When a path of activities has negative slack, focus on:
Activities that are near term.
Activities that have long estimated durations. 10 14 14 9 14 9 10 9 9 9

13. Reducing the Estimated Durations
Apply more resources.
Assign a person with greater expertise to perform or help with the activity.
Reduce the scope or requirements for an activity.
Totally eliminate some activities.
Increase productivity through improved methods or technology. 11

14. Approaches to Schedule Control (Cont.)
Reducing durations of activities usually results in an increase in costs or a reduction in scope.
The key is to effectively address paths with negative or deteriorating slack values as soon as they are identified. 12

15. Schedule Control for Information Systems Development
Common necessary changes during IS development projects:
Changes to input screens
Changes to reports
Changes to on-line queries
Changes to database structures
Changes to software processing routines
Changes to processing speeds 13 16 16 10 16 10 13 10 10 10

16. Project Management Software
The software allows you to perform various control functions.
The percent complete for each task can be entered.
Changes to the duration estimates can be entered.
The software will automatically revise the project schedule and the corresponding network diagrams. 14 17 17 11 17 11 14 11 11 11

17. Appendix
Time-Cost Trade-Off
Each activity can have two pairs of duration and cost estimates
Normal time and cost
Time to complete under normal conditions
Cost if done in normal time
Crash time and cost
Shortest possible length to complete the activity
Cost if done in crash time

18. Time-Cost Trade-Off (cont.)
Assumptions
Activity duration can be shortened by applying more resources with an associated cost
Crash time is the shortest possible duration
Resources for acceleration are available
Relationship between time and cost is linear
Crash cost – Normal Cost
cost per time period
Normal time – Crash time

19. A: Max accel: C: Max accel:
Cost/wk: Cost/wk:
B: Max accel: D: Max accel:
Cost/wk Cost/wk:

20. Time-Cost Trade-Off (cont.)
Objective of time-cost trade-off
Determine shortest completion time
By crashing activities with smallest cost increase
Method:
Shorten project duration one period at a time
Crash only activities on critical path(s) with lowest cost per period increase
Until get shortest possible project completion time

21. Project duration: 18 weeks Project cost: $200,000
$6k/period
$10k/period
$5k/period
$6k/period
Reduce by 1 wk
CP:
Which activity to accelerate:
New duration: New cost:

22. Project duration: Project cost:
$6k/period
$10k/period
N = 9
$5k/period
$6k/period
Reduce by 1 wk
CP:
Which activity to accelerate:
New duration: New cost:

23. Project duration: Project cost:
$6k/period
$10k/period
N = 9
N = 7
$5k/period
$6k/period
Reduce by 1 wk
CP:
Which activity to accelerate:
New duration: New cost:

24. Project duration: Project cost:
$6k/period
$10k/period
N = 9
N = 6
$5k/period
$6k/period
Reduce by 1 wk
CP:
Which activity to accelerate:
New duration: New cost: