Project Management PSGLE 122 Time and Resources
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Course Description Plan for success! When working on a project, the most important goal is to make sure that the project is successfully completed on time and within the allotted budget. Poor planning in early stages is often the reason why many projects are delayed and cost overruns occur. This presentation is going to outline the process of carefully planning your project for maximum efficiency.
Learning Objectives Participants will learn how to: Break down the project into its individual activities Sequence the activities using the various activity relationships Estimate the resources each activity will need, and how long each activity will last Develop a project schedule memorializing the results
The 80/20 Rule Vilfredo Pareto
Roadmap Define Activities Sequence Activities Develop Schedule Estimate Activity Resources Estimate Activity Durations
Learning Objective # 1 Defining Activities
Defining Activities Review Work Breakdown Structure For each deliverable, create a list of action items that need to be completed Turn nouns into verbs Use sufficient detail to be able to estimate the amount of time and resources needed for completion
Rolling Wave Planning Involves progressive elaboration Tasks in the near future are planned for at a low level of WBS Tasks that are more unclear are planned for at a high level Rolling wave planning is not a default planning method
Templates Taken from previous projects that are substantially similar Templates help fast track the defining activities process
Expert Judgment Can come from sources such as: key members, operational or functional managers, consultants, or subject matter experts
Learning Objective # 2 Sequencing Activities
Activity Relationships FS: Finish to Start SS: Start to Start FF: Finish to Finish SF: Start to Finish A A A A B B B B
Sequence Activities Look for logical relationships among the listed activities Create a project network diagram Organize activities into an efficient sequence of work
Sequence Activities Activities: purchase software, purchase hardware, install hardware, install software, project kickoff meeting, set training dates, attend training, configure software, test configuration Activity Predecessor Same Time Successor Purchase Software Purchase Hardware Install Hardware None None Purchase Software, Purchase Hardware Purchase Hardware, Project Kickoff Meeting Purchase Software, Project Kickoff meeting None Install Software Install Hardware None Project Kickoff Meeting None Purchase Software, Purchase Hardware Install Hardware Install Hardware Install Software Attend Training, Configure Software Set Training Dates Set Training Dates Project Kickoff Meeting None Attend Training Attend Training Set Training Dates, Install Software None Configure Software Configure Software Install Software, Attend Training None Test Configuration Test Configuration Configure Software None None
Precedence Diagramming Method Uses boxes or rectangles as nodes to represent activities Connects boxes with arrows which represent dependencies
Precedence Diagramming Method Purchase Software Install Hardware Install Software Start Purchase Hardware Configure Software Test Configuration Finish Project Kickoff Meeting Set Training Dates Attend Training
Learning Objective # 3 Estimate Resources & Durations
Estimate Activity Resources Bottom-Up Estimating: Work decomposed to more detail Estimate prepared from detailed pieces by project team Estimates are aggregated Most accurate & takes most time and money
Estimate Activity Resources Item Description Purchase Software Purchase Hardware Number of Units/Labor Hours Unit/Labor Cost Total Cost 12 units $456.50/unit $5,478 12 units $257.25/unit $3,087 Install Software 5 hours $50.50/hour $252.50 Install Hardware Configure Software Test Configuration 12 hours $37.82/hour $453.84 20 hours $80.10/hour $1,602 42 hours $112.20/hour $4,712.40
Estimate Activity Resources Top-Down Estimating: Using actual cost of previous, similar activity as the basis for estimating the cost of a future activity A type of expert judgment Used for ROM estimation Less accurate, takes less time and money
Estimate Activity Resources Item Description Previous Cost Estimated Cost Purchase Software $5,478 $5,861.25 Purchase Hardware $3,087 $3,303.09 Install Software $252.50 $270.18 Install Hardware $453.84 $485.61 Configure Software $1,602 $1,714.14 Test Configuration $4,712.40 $5,042.27
Estimate Activity Durations Three-Point (PERT) Estimate: Estimate uncertainty and risk through a standard average based on: Optimistic (O) activity duration estimation based on best case scenario Pessimistic (P) activity duration estimation based on worst case scenario Most likely (M) activity duration estimation based on normal case scenario Formulas: Beta Distribution Formula: (O + 4M + P) / 6 Triangular Distribution Formula: (O + M + P) / 3
Estimate Activity Durations Activity Optimistic (days) Pessimistic (days) Most Likely (days) Estimate (days) Purchase Software 10 20 40 22 Purchase Hardware 5 10 30 11 Install Hardware 1 1 7 2 Install Software 1 2 3 2 Project Kickoff Meeting 1 1 1 1 Set Training Dates 3 5 8 5 Attend Training 3 3 3 3 Configure Software 10 20 35 21 Test Configuration 20 30 60 33
Learning Objective # 4 Develop Schedule
Develop Schedule Objectives: Monitor and control project activities Determine how to best allocate resources to achieve the project goal Assess how time delays will impact the project Figure out where excess resources are available to allocate to other projects Provide a basis to help track project progress
Critical Path Steps: Translate tabular information to network diagram Identify all paths and their durations Longest path (duration) = critical path (duration) = project duration Float on all critical path activities = 0 (generally) Calculate float on activities not on non-critical path When delays occur recalculate critical path and determine if crashing (from other non-critical activities or fast tracking helps
Critical Path 22 Purchase Software 2 Install Hardware 2 Install Software Start 11 Purchase Hardware 21 33 Configure Software Test Configuration Finish 1 Project Kickoff Meeting 5 Set Training Dates 3 Attend Training
Critical Path 22 Purchase Software 2 Install Hardware 2 Install Software Start 11 Purchase Hardware 21 33 Configure Software Test Configuration Finish 1 Project Kickoff Meeting 5 Set Training Dates 3 Attend Training
Critical Path 22 Purchase Software 2 Install Hardware 2 Install Software Start 11 Purchase Hardware 21 33 Configure Software Test Configuration Finish 3 1 Project Kickoff Meeting 5 Set Training Dates Attend Training 22 + 2 + 2 + 21 + 33 = 80 days 11 + 2 + 2 + 21 + 33 = 69 days 1 + 5 + 3 + 21 + 33 = 63 days
Calculating Total Float Formula: (F(task) = CP-L(task)) (Critical Path duration length of longest path with the activity on it) Critical Path = Path 1; Project duration = 80 days Float on Critical Path activities: 0 Float on Purchase Hardware: Duration of Critical Path Duration of Path 3 = 80 days 69 days = 11 days Float on Project Kickoff Meeting: Duration of Critical Path Duration of Path 4 = 80 days 63 days = 17 days
Fast Tracking & Crashing Fast Tracking activities are re-planned to be performed in parallel Crashing adding additional resources to the activities to finish them early
Manage Time Wisely! Causes of Wasted Time Inadequate workforce supervision (31%) Poor management planning (30%) Poor communication (18%) IT problems, low morale, and lack or mismatch of skills (21%)
This concludes the Professional Services Group Learning Event Laurel Tenuto, Client Risk Management Coordinator Laurel.Tenuto@rlicorp.com Uche Okoroha, PMP, Senior Risk Management Consultant Uche.Okoroha@rlicorp.com
THANK YOU! Laurel Tenuto, Client Risk Management Coordinator Laurel.Tenuto@rlicorp.com Uche Okoroha, PMP, Senior Risk Management Consultant Uche.Okoroha@rlicorp.com