project management dr rovel shackleford v8 14072011

Project Management

Issued October 2010

Copyright Dr. Rovel Shackleford

Project Management

Dr Rovel Shackleford 14/07/11 Page ii

Table of Contents Page

Introduction

Module Overview ............................................................viii

Module Objectives ..........................................................viii

Module Timetable ............................................................ ix

Classic Organisational Forms................................................ 5

Functional or Decentralised Structure............................... 7

Matrix Structure................................................................. 9

Taskforce Structure......................................................... 11

Committee Task Force Structure .................................... 13

Project Plans.......................................................................... 14

Phases of Project Management...................................... 15

Project Definition............................................................. 16

Work Breakdown Structure ............................................. 17

Matching Resources and Activities ................................. 18

Using a Skill Inventory..................................................... 19

The Human Resource Matrix .......................................... 19

Basic Networks...................................................................... 20

Human Resource Interface ............................................. 21

Product/Service Interface................................................ 22

Change Responsibility Interface ..................................... 22

Management Interface .................................................... 22

Customer Interface ......................................................... 23

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Information Interface....................................................... 23

Material ........................................................................... 23

Network Graph................................................................ 23

Activity Lists .................................................................... 23

Critical Path..................................................................... 25

Forward Backward Planning ................................................ 27

Early-Late……………………………………………………..29

Pert Networks ........................................................................ 31

Estimates or Forecasts ................................................... 32

Underlying Assumptions ................................................. 33

Techniques ..................................................................... 34

Activity Time and Critical Path ........................................ 36

Variance.......................................................................... 36

Updating a Network ........................................................ 39

Analysing Baselines........................................................ 39

GANTT Charts........................................................................ 42

Creating GANTTS........................................................... 43

Validating the Schedule Baseline ................................... 44

Milestones....................................................................... 44

Human Resource Baseline ................................................... 45

Manpower Loading Chart................................................ 47

Updating a Chart............................................................. 49

Trade-Offs....................................................................... 50

Negotiating The Performance Contract .......................... 50

Time Commitments......................................................... 50

Reporting Formats and Schedules ................................. 50

Issues Management........................................................ 51

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Project Responsibilities................................................... 51

Compliance ..................................................................... 51

Equipment Resources..................................................... 52

Contingency and Risk ..................................................... 52

Development and Monitoring Cost ...................................... 53

Cost Evaluation............................................................... 54

One Time Development Costs........................................ 54

Intangible Benefits .......................................................... 55

Cost Spreadsheet ........................................................... 56

Cost Line/Bar Graph ....................................................... 57

Managing Projects With Multiple Baselines........................ 58

Control Prerequisites ...................................................... 59

Change In Scope ............................................................ 61

MOST……............................................................................... 63

Creating a MOST Diagram.............................................. 64

Troubleshooting Potential Issues........................................ 66

Variance Analysis ........................................................... 69

Multi-Project Planning and Control.................................. 70

Glossary……………………………………………………………..72

Bibliography and Further Reading………………………….....77

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Module Overview

This module will equip participants with the skills necessary to plan andmanage a project and or be an effective project team member.

Module Objectives

1. To explain the need for project management.

2. To explain the comprehensive nature of project management.

3. To describe the steps involved in project planning and management.

4. To identify the appropriate project management tools and theirapplication.

5. To identify how the planning information is applied to various resourcerequirements.

6. To use qualitative and quantitative approaches to project managementapproach given set of varying parameters.

7. To identify and manage variations to scope and resources.

8. To troubleshoot a project effectively.

9. To effectively monitor projects and initiate appropriate interventions tomaintain the project integrity.

10.To understand how and why project management may fail.

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Module Timetable: 3-Day Workshop

Day 1

Time Topic Subject

9:00 am Welcome and introduction

9:30 am 1 What is Project Management?

10:00 am Morning Coffee

10: 15 am 2 Organisational Structures/Planning

11:15 am 3 Outline of the Tools

12:30 pm Lunch

1: 15 pm 4 PERT Diagrams

3:15 pm Afternoon Tea

3:30 pm 4 Gantt Charts

4.30 pm Finish

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Day 2

Time Topic Subject

9:00 am 4 Exercises Using Gantt & PERT Tools

9:45 am 5 Planning Costs


10:30 am 5 Project Control Strategies

12:00 pm Lunch

1:00 pm 5 Troubleshooting


3:30 pm 6 Case Studies

4.30 pm Finish

Day 3

Time Topic Subject

9:00 am 4 Negotiating For Resources

9:45 am 5 Resolving Differences


10:30 am 5 Project Completion

12:00 pm Lunch

1:00 pm 5 Case Study Exercises


3:30 pm 6 Summary

4.30 pm Finish

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Dr Rovel Shackleford 14/07/11 Page 1

Classic OrganisationalForms

Classic Organisational Forms ................................................... 5

Functional or Decentralised Structure .............................. 7

Matrix Structure ................................................................ 9

Taskforce Structure ........................................................ 11

Committee Task Force Structure.................................... 13

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PROJECT MANAGEGMENT

ORGANISATIONAL STRUCTURES

Before we look at the classic forms of project management organisational

structures, let’s examine the following questions to consider a suitable

structure for your project:

What precent of the project is expected to be complete in the

near future (one to three years)?

What is the technical competence of the functional managers

who will be most closely involved in the project?

How well documented are similar projects that have been

done in the past? Can this historical information be relied on

as an accurate database?

Who will be responsible for the success or failure of the

project, the functional manager or the project manager?

How much input will the functional groups have in deciding

project priorities, completion dates, design concepts, and

methodologies?

Will the organisation support formal training programs (with

commitments of time and money) to develop strong project

leaders?

How interested is the organisation in enforcing standards of

design, definition, specification, and documentation for

projects?

How tolerant is the organisation of line executives who bend

policies and standard practices? In other words, does

creativity and initiative take a back seat to strict obedience?

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Does long-range planning have a high priority coupled with a

strong commitment to stick to it? Furthermore, are strategic

plans filtered down to project leaders so that they can

formulate objectives with organisation goals in mind?

Are organisation goals set with strong emphases on making

deadlines, staying within cost estimate, and/or producing a

product/service that exactly meets specifications?

The answers to questions will determine which of the following

organisational structures is appropriate for your project:

Centralised.

A team of individuals, with each member an expert in one

speciality, cooperates in projects that serve other areas of the

organisation, such as the procurement team, the legal team, the

data processing team, the strategic planning team, or the

research and development department.

Functional or Decentralised.

A special project leader reports to one division of the

organisation and does project work only for that area of

responsibility.

Matrix.

A project coordinator, who handles administrative concerns

such as scheduling, supports a project analyst. These can

include any number of requests, from different functional

areas, for specific, job-related requirement.

Task Force.

Representatives from functional areas make full-time

commitments to produce an end product/service that is

specifically requested by top management.

Let’s take a closer look at each of these classic forms of organisation and

detail their advantages and disadvantages.

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THE CLASSIC ORGANISATIONAL FORMS

Centralised Structure

The organisational chart of a centralised structure is a pyramid that place

the centralised project group on the same level as other line functions. In

other words, a project structure can sometimes be, for all intents and

purposes, an actual department in the organisation. The senior manager

of projects in his or her department is on the same level as other

operational senior managers. In some cases, the project area may

assume a lower level in the hierarchy. Examples of a centralised project

structure might be the procurement, engineering, strategic planning, or

data processing departments. Within the centralised structure (or

department) itself, project personnel report up through the hierarchical

tree (junior to intermediate to senior to leader to manager, and so forth) to

a single person who is responsible for the total departmental or divisional

effort.

Within this structure, it is possible to organise by type of work (planning,

feasibility, specification, design, development, or implementation), by

functional area (accounting, production, procurement or engineering), or

in some cases, by categories (maintenance and development). Of

course, some combination of these can also work effectively.

The key to the centralised alternative is that one person oversees

planning, controlling, managing, and progress reporting for all project

work.

The advantages of the centralised alternative are:

Standards exist through the project life cycle. These are

equally enforced for the entire work effort.

Project personnel are treated equally in all areas of personnel

administration, including performance appraisals, salary

increases, promotions, and training.

Organisation policies, rules, and regulations are applied in

like manner to all project work efforts.

Developing skilled individuals in specialised technical areas

and availing their knowledge to all is easier.

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Project personnel are kept better informed of project

progress.

When the project group has only one boss, adjusted

management priorities are accommodated more quickly.

All project control and status reporting to upper management

(or the client) is in one predetermined format.

Should a project fall behind schedule, it may be possible to

“pack” a team or group in order to get it back on track.

All members of the project team derive a higher sense of

cooperative loyalty by associating closely with similar

personnel. This is particularly true if career paths are clearly

defined. In other words, in this structure, the career path

ladder is often predefined.

The disadvantages of the centralised alternative are:

Standards and documentation may result in an abundance of

red tape.

It may be difficult to recruit leaders that have the technical

skills to train and guide and the administrative ability to follow

organisation policies and develop corporate loyalties.

Organisational independence may encourage project team

members to depart from proven administrative practices.

There is a high risk that the client might feel that the project

team is unresponsive to his or her needs - for example, if the

client resets priorities frequently, there may not be enough

manpower available to keep to the original schedule.

Total project costs may become over inflated because

specialists are in a state of waiting between assignments or

are on call for the next “hot potato”.

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Functional or Decentralised Structure

In this alternative project expertise and human resources are self-

contained within each functional area. Project personnel are, therefore,

on permanent assignment within the organisational units where their skills

and services are needed. In this type of structure, there is little doubt that

the functional manager assumes total authority for defining requirements,

scheduling work, setting project priorities, providing facilities, acquiring

and managing all resources, adhering to organisation policies, committing

to the completion dates, coordinating conversion and implementation, and

conducting a post installation review.

The advantages of the functional organisation alternative are:

Functional managers tend to take a broader look at the total

goal rather than restrict themselves to a specialised end

product/service/service.

There is greater likelihood that fewer changes and

adjustments will be required in the end

product/service/service because bugs are ironed out early.

Project personnel develop a strong sense of loyalty to their

functional area; they are highly responsive to assigned tasks.

Since the functional areas are accountable for their own

project work, the final result is completely of their own

making; they must accept and live with it, regardless of its

success or failure.

Project personnel become extremely knowledgeable of the

objective, flow, purposes, terminology, and operation of the

functional department/division. This enables them to reduce

learning time on successive assignments, challenge

specifications intelligently, complete projects more quickly,

contribute more to the definition and specifications phase,

and provide more practical product/services.

Issue situations are flushed out quickly and receive faster and

closer attention from functional managers.

Project personnel can concentrate on project work without

being bogged down with administrative details.

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The disadvantages of the functional organisation alternative are:

It is difficult to recruit project personnel with broad-based

organisation backgrounds.

Because organisation policies and administrative practices

may not be enforced uniformly, and adjustment period, while

project personnel move between functional departments or

divisions, might be necessary.

Career paths may be ill defined; individual growth and

development can easily be stifled.

It is very likely that project control and status reporting to

upper management will not be standardised between projects

from different functional areas, thus making it difficult for top

management to monitor progress.

Project cost accounting to upper management may be

unclear. (Project costs in this structure can be “swept under

the rug” - that is, costs can be assigned to other accounts.)

Highly specialised skills may not be available when needed.

For example, not every department in the organisation can

afford its own telecommunications expert.

Excessive costs might result from having to develop the

same specialised training and knowledge in each functional

area.

Common standards for project work are difficult to define and

almost impossible to enforce uniformly.

Matrix Structure

The matrix organisational structure is a combination of the two preceding

structures. In this structure, however, project personnel have a dual

reporting responsibility.

In the matrix system, project personnel report to their technical leader (the

project coordinator) for the following types of activities:

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Administrative details (vacations, training, performance review,

and so on), refining tasks and assignments, technical guidance,

planning and budgets, and standardising functional support and

assistance.

Other responsibilities require the functional manager to define

requirements, make feasibility and economic evaluations, and change

priorities, if necessary, assign and allocate work, and determine ultimate

success or failure in meeting their goals.

The team is comprised of personnel from the functional areas rather than

from a centralised area. The specific distribution of the responsibilities

described above may be based on the needs and objectives of any given

enterprise. However, the point here is that the project personnel can have

two bosses: one for the productive effort, another for the administrative.

The advantages of the matrix structure are:

In most cases, it is the least costly form of organisation for a

major project.

Project personnel can devote themselves to the complex issues

of the project and to coordinating its various tasks without being

distracted by details of execution.

The leadership and management prerogatives of top functional

managers are retained in the execution of project tasks.

Scarce expertise can be applied flexibly and efficiently to a

number of different projects.

Matrix project management is an attractive arrangement for

highly skilled professional people who want to work on a new and

challenging project but are reluctant to leave their organisational

home for one in which their professional skills and attitudes might

not be properly respected.

Changes in project manpower requirements are accommodated

more easily; thus a project can phase down from peak level more

efficiently.

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The entire management team unites to achieve project

objectives. Strong feelings of responsibility, interest, concern,

and pride are usually present.

General management may more readily perceive and resolve

conflicts between project requirements and organisational

policies.

The disadvantages of the matrix alternative are:

More effort and time are required to define and communicate

a set of policies that ensures successful matrix project

operations.

In general, for an organisation that is unaccustomed to

project management approaches, particularly matrix

management, the issues encountered in the initial phases

may be damaging or indeed fatal to the project.

Biases of functional division heads may subtly work against

the priorities desired by general management.

In fast-moving and fast-changing projects, the matrix

organisational approach may be ill suited to the quick reaction

times that are often necessary to meet project objectives.

Project personnel may have difficulty determining which boss

to consult regarding specific types of issues.

Conflicts of authority between project managers and

functional managers may become critical enough to damage

the project.

Task Force Structure

In the task force alternative project personnel are recruited from various

areas of the organisation. Though they are committed on a full-time

basis, the task force is expected to be of limited duration and has specific

completion dates. Upon completing the project, the group disbands and

members return to the organisational units from whence they came (or

perhaps, go on to new areas of responsibility).

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The task force leader has total control and authority for overseeing

scheduling, management, quality control, and completion of the project.

This leader may be someone selected from either the functional or project

management levels. The single criterion for selecting the project

manager may be his or her objectivity in solving issues. Committee

approaches have been applied to managing task forces. These have

their advantages and disadvantages, which will be discussed later.

The advantages of the task force alternative are:

The team can generally be assembled very rapidly.

The team can react very quickly to changing project

conditions or possible shifts in direction or priorities.

Esprit de corps is usually high because of the unique status

of the effort. Members of the task force often enjoy high

visibility and feel “special” since they have been hand picked

for an important organisation effort.

Although individuals are selected for the special skills and

knowledge they can contribute, they have ample opportunity

to work closely with other specialists. This broadens their

knowledge and increases their value for future assignments.

From the organisation standpoint, there is at least an ethical

commitment on the part of the members to see the project

through to a successful completion. This may help reduce

turnover and retraining.

All costs are carefully defined and reported.

Standards that are enforced throughout the project lead to a

uniformly documented final product/service.

Generally, top management is kept very well informed of the

status and progress of the task force.

The disadvantages of the task force alternative are:

Functional organisations may resent a special group

encroaching on their territories.

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Controlling the many activities and responsibilities of a very

large project may prove cumbersome and unwieldy.

Team members might be frightened by this temporary

assignment - that is, they may be concerned about its impact

on their careers.

Status reports to upper management may be formatted

differently than reports on other organisation projects. This

can make comparisons difficult.

Because of time pressures, the task force may waive

documentation and standards.

Urgency may cause overloading of the task force (with

personnel and other resources). this could result in cost

overruns if expenses aren’t closely watched.

Pressures to meet deadlines, plus crises and issues, may

mean little development of new state-of-the-art techniques.

Committee Task Force Structure

Committee task forces are formed when project personnel do not have

100 percent of their time to dedicate to any one assignment. Therefore,

on a committee task force, the project personnel are supposed to spend,

say, 60 percent of their time on their normal duties and 40 percent on task

force assignments. As we all know, the ration becomes 100-40.

Although task force time presumably is always budgeted in, day-to-day

pressures often countermand the plan. So where does the extra time

come from? From lunch hours missed, late nights worked, and weekend

catch-up. Other issues encountered with committee task forces are:

arranging for committee members to meet all at once so that joint

decisions can be made, and prodding completed assignments from

functional representatives who are burdened with other work.

Committee approaches have been attempted in managing task forces,

but they have not always been very successful. Making one executive

responsible is the key to efficient supervision of the committee task force.

However, a review committee that monitors progress, facilitates policy

decisions, provides resources, and so forth may be a very helpful tool.

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Nevertheless, supervising the day-to-day management of the task force

must be the responsibility of one person.

PROJECT PLANS

Project Plans........................................................................... 14

Phases of Project Management ..................................... 15

Project Definition ............................................................ 16

Work Breakdown Structure............................................. 17

Matching Resources and Activities................................. 18

Using a Skill Inventory .................................................... 19

The Human Resource Matrix.......................................... 19

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Phases of Project Management

The project management process has three phases: the planning phase,

the scheduling phase, and the controlling phase. If you had to determine

how much effort should go into each phase, what would you decide? On

the continuum below, put an X nearest the percent of your time and effort

that you feel should go into the planning phase.

0% 25% 50% 75% 100%

Surprisingly, there is no “correct” response to this issue. It can be said

that the planning phase should be emphasised strongly. If the plan is no

good, there will be nothing worth controlling. And the time and effort

usually will not be available during the controlling phase to correct plans

that have gone astray; you’ll be too embroiled in getting the job done.

Many people want to know when a project’s complexity demands formal

tools and techniques. They want cut off points that determine when this

level of complexity is reached. The management of your organisation

should set these cut off points. If management has not set criteria as

guidelines, then you must use the appropriate project management tools

at your disposal. It’s probable that you already use many of these project

management techniques, even for the smallest project.

Let’s discuss the project-planning phase in detail. In this phase you’ll

develop the plan baseline, schedule baseline, human resources baseline,

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and cost baseline. Throughout this course, the term baseline will be

synonymous with the term plan.

In the next few Modules, we’ll discuss each of the above activities. We’ll

examine the techniques that are used to develop each of these baselines

as well as the graphic tools that are used to document them. We’ll then

relate these same tools to monitoring and controlling the project.

Your first step as project leader will be to develop a task baseline, which

will be the foundation for all other project plans. The baseline includes the

project definition, or the specification of the end product/service, and the

work breakdown structure, or the checklist of the activities necessary to

complete the project.

Let’s now consider how to create a professional project definition and

work breakdown structure.

Project Definition

The job of the project leader is to ensure that the end

product/service/service meets the specifications determined by

management or the client. Therefore, the project leader must first define

those specifications and clarify project objectives - that is, translate them

in quantifiable terms. In other words, before you do something, make

sure you know exactly what the client wants.

In determining quantifiable terms, it is most important to agree on what

measures will be used to gauge the project’s success or failure. Above

all, try to avoid subjective judgements. The more agreed-upon-criteria for

measurement that you can establish up front, the better.

The accepted approach is to state cost, time, and quality in specific

terms.

There are many objectives used in defining an end product/service’s

relation to some projects. Think about some of the issues you might face

in preparing a good definition. Some of the issues that a project leader

might confront in developing a good project definition are:

Setting project goals that is agreeable to all parties

concerned.

Leaving enough space to accommodate changing priorities.

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Having enough time to define the objective well.

Adequately quantifying objectives.

Dealing with clients who only see the “tip of the iceberg”.

Documenting and reviewing objectives well enough.

Coordinating efforts of the client and project personnel.

A good project definition is really a contract. As such, it can be formal or

informal. This contract is very important. It will be referenced several

times during the evolution of the project:

At the onset, forcing participants to establish the boundaries

of the project team.

During the project, identifying the changes of scope that fall

outside the boundaries, thus requiring renegotiation of the

contract.

At the project’s conclusion, helping the project leader to

perform an objective post implementation review of the end

product/service.

The creation of a good project definition should follow these guidelines:

Concentrating on the end product/service/service

(output/outcome) only, not on benefits or cost evaluations.

These come later.

Realising that only the tip of the iceberg may be showing. It is

your job as project leader to get beneath it.

Understanding that this document is not static; it is dynamic

and it will change.

Wherever possible, converting objectives into quantifiable

terms.

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Work Breakdown Structure

Once a sufficient project objective is developed, the project leader can

move on to producing a work breakdown structure of the activities to be

performed. A work breakdown structure is nothing more than a checklist

of the work that must be accomplished to meet the objectives set in the

project definition. However, this checklist is not put together in a helter-

skelter fashion.

The work breakdown structure is prepared with a very structured

approach; general work is broken down into smaller, more specialised

work.

The work breakdown structure first splinters the project into work

assignments. These work assignments, or major phases, are then

broken down into the next level of detail, tasks. These tasks may be

broken down into sub-tasks, and so forth. All the parties that are involved

in the project generate the work breakdown structure. The benefits of a

work breakdown structure are:

It provides a checklist that prevents omitted tasks. Don’t be

naive enough to think that something won’t be forgotten.

With this checklist, you have a better chance of isolating all of

the planned efforts.

It requires commitment from project personnel. Those who

contribute to the project are involved from the onset.

As a project leader, you will be in control of developing a

basic plan for all of the work required and for all of the areas

involved. The work breakdown structure enables you to

monitor all of the work in progress.

Matching Resources and Activities

The task lists developed through your work breakdown structure are the

foundation of your project planning. Before we go further, however, we

need to discuss some of the tools that are used to help the project leader

assign appropriate personnel to each task. Some managers make

personnel assignments as soon as the work breakdown structure is

created; others wait until task relationships have been drafted; and still

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others wait until after the network has been drawn and analysed. The

skills inventory and the human resources matrix are useful tools that

facilitate specific personnel assignments.

Using a Skills Inventory

Every project requires a variety of skills that need to be matched to the

appropriate tasks. It is relatively easy to make these assignments in the

beginning. As the project progresses, it may be necessary to split

assignments, add people to existing assignments, or trade assignments.

To do this appropriately, the project manager needs something that lists

all the skills that are resident on the project team. This is a skills

inventory. The skills inventory can be set up in a number of ways; we

recommend the following:

1. Set up a matrix form, placing skills along the x axis team member

names along the y. Note that skills may be in degrees of

competency; for example, programmer 1, 2 or 3.

2. At the intersections where a team member has the matching skill,

place an X.

3. If the project requires skills that are not on the project team, the

project manager will note those skills on the skills inventory,

leaving them blank or filling them in with a consultant or

contractor, etc.

The Human Resources Matrix and Getting

Commitment

Once the tasks are enumerated, consider who on the project team is

most qualified to perform each task. As in the skills inventory, develop a

matrix that lists tasks along the left and names or job titles along the top.

Tasks are assigned either uniquely to one person each or in some

combination where one person has prime responsibility for its completion

and another person (or persons) has support responsibility. Indicate the

person having prime responsibility with a P and those having support

responsibility with an S. (Remember, each task requires at least one P

but only one P, while several team members may be assigned an S.)

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BASIC NETWORKS

Basic Networks ....................................................................... 20

Human Resource Interface............................................. 21

Product/Service Interface ............................................... 22

Change Responsibility Interface..................................... 22

Management Interface.................................................... 22

Customer Interface......................................................... 23

Information Interface ...................................................... 23

Material........................................................................... 23

Network Graph ............................................................... 23

Activity Lists.................................................................... 23

Critical Path .................................................................... 25

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Basic Networks

Networks involve more of an investment of time and money than many

people are willing to make. A clerical department or a complex computer

program often supports large projects. As you will see, this kind of

support isn’t always essential to the project’s success. For most projects

it’s possible to develop your own network manually; this will serve the

purpose quite well. Even if you do have computer support, and your

network can be computer generated, you still need to understand the

basics of the network construction so that you can properly analyse the

work with various network formats.

Human Resources Interfaces

Human resources interfaces concern the personnel who contribute to the

project. These interfaces consist of the following:

RESULT OF ACTION

Often, one activity cannot start until another is complete. For example, an

end product/service/service cannot be implemented until all testing is

finished.

COMMON UNIT OF RESOURCE

One person can do only so much work at a time. Today, some

organisations assign no more than three activities to each person at one

time. You might consider even this workload excessive. However, the

point here is that one person can tackle only so many assignments at the

same time and perform them well.

DRAIN ON ORGANISATION RESOURCES

If many tasks draw on the same resource pool, they become, to a certain

extent, interdependent. For example, the drafting department can

respond only to a limited number of projects at once, and even then they

have to set priorities.

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Product/service Interfaces

Human resources are not the only interdependencies to consider when

determining the relationships between the work breakdown structure

activities. You also need to allow for the effects of the following

product/service interfaces:

PERFORMANCE INTERFACES

Subassemblies and components have to be tested before they are

integrated into the final product/service. For example, if you are

establishing a teleprocessing network, the receiving station, the sending

station, and the telecommunications linkage all have to be installed and

operating before the network can be integrated.

PHYSICAL INTERFACES

These reduce the above consideration to the level of a single

subassembly or component. For example, if you are constructing a

telephone, the receiver, base and connecting wires all have to be

operating before the phone can be assembled.

You also should consider how project interfaces affect the

interdependence of activities. Some types of interfaces follow:

CHANGES RESPONSIBILITY INTERFACES

Oftentimes, major project responsibilities are transferred from one project

team to another. For example, after a prototype is completed and

approved, it usually becomes the responsibility of the production

department.

MANAGEMENT INTERFACES

As a result of periodic review meetings, the project’s trajectory can be

altered.

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CUSTOMER INTERFACES

Meetings with customers can also affect project progress. For example,

the client might not approve a request for more funds.

INFORMATION INTERFACES

For example, statistical analyses may be necessary before the design

stage can be complete. Of course, this information has to be

disseminated to the proper sources. However, the person responsible for

disseminating the information may not consider it a top priority.

Therefore, a time delay may result.

MATERIAL INTERFACES

The project cannot progress until the proper equipment and/or materials

is/are available.

Network Graphs

The network graph is a tool that illustrates the interfaces and

interdependencies of related activities. However, you cannot graph these

relationships until you have analysed them thoroughly. To do so, you

must (among other things) consider interface logic.

Simply put, you are attempting to demonstrate how each activity relates to

others in the project. Some activities must occur in sequence. For

example, you must make sure that the power source is compatible with

your equipment before you install and test it. Other activities can occur

simultaneously. You can prepare an implementation checklist while you

are still in the development stage.

Activity Lists

Isolate the first activities. Look down the immediate predecessor

column and find every activity that does not have an immediate

predecessor (indicated by a hyphen).

Plot first activities on the network. Draw one “start” node is the

vertical centre of the far left-hand side of a blank sheet of paper.

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(The network branches to the right top and bottom). From the

start node, “burst” solid activity arrows for every starting activity

(activities that have no predecessor).

Format the network in such a way as to show interdependencies.

In other words, indicate those activities that must be done

sequentially and those that must be done simultaneously.

Don’t worry about time estimates or drawing the network to scale.

Concentrate on the interrelationships.

Continue building the chain. Take each activity (or combination

of activities) that is now diagrammed on the network and search

for it in the immediate predecessor column of the activity list.

When you find it, expand the network accordingly. Let the

immediate predecessor column drive the interpretation on to the

network. You are developing a series of chains; each activity that

appears on the network is merely a link in that chain. Once the

link is attached to the chain, the immediate predecessor column

tells us which link or links must be attached next.

Draw one end nose to signify the end of the project. Make sure

there is only one start point/node and one end point/node.

Don’t allow any node to “dangle”. Every node must connect to an

activity and therefore to an end point. In other words, every

activity must be integrated into the framework.

Use a dummy arrow (a broken arrow line) to tie a dangling node

back into the network. Make sure the direction of the dummy

arrow correctly portrays the dependencies of the activities.

(Dummy arrows will be discussed in more detail later).

Remember that the network is a communication took; it must be

understandable to all who use it.

Critical Path

As you consider your plan, you can develop the actual task effort, or

manpower estimates. To develop manpower estimates, or the actual

amount of effort needed to complete this project, start at the lowest level

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in the work breakdown structure and work forward. This will give you a

total project estimate.

Each time estimate, referred to here as te, or activity time estimate, is

added up along each path that has been developed on the network. The

same activity time may be added up along each path that has been

developed on the network. The same activity times may be added more

than once because it may appear on more than one path. The longest

path is the longest time estimate and thus determines the target

completion date for the project.

Now take your activity work sheet. For simplicity’s sake, take your time

estimates from your activity work sheet and write them under the

appropriate activity arrows on your network. Now, develop your critical

path and time estimate for the project. Also, since you have just isolated

the critical path, mark it with a bold line.

This network indicates a project duration time estimate, TE, of 8.5 months.

The bold line shows the critical path.

Identifying the critical path can serve two purposes:

1. At the beginning of the project, top management may request

shorter deadlines than you have developed. To shorten

deadlines, you can tighten up the critical path by transferring

resources from the “slack” paths. Of course, the expertise you

are shifting from the slack paths must be compatible with the

“gap” in the critical path. And removing a resource from a slack

path will mean you’ll need more time to complete the slack path

activity. But the proper amount of transferred effort should

shorten the critical path - the goal you’re attempting to achieve.

(Be careful here - do not convert a slack path into a critical path).

2. If something slips on the critical path during the project then you’ll

know that the project will not meet its deadline unless you shorten

some activities later in the sequence. Again, reallocating

resources from a slack path to the critical path can do this.

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Forward and Backward Planning

Forward Backward Planning 27

Early-Late………………………………29

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Forward Backward Planning

In forward planning you take all the activities, determine their

interrelationships, and interpret them on a network. Then you develop

manpower estimates (to be extrapolates into elapsed time estimates).

These, in turn, are plotted on the network and used to create the critical

path, or the time target for the project in a forward planning mode. Once

this has been accomplished, you can determine what kind of slack, if any,

there is in the project.

Using the calculation

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Due Date – te = Slack

You can analyse what type of slack your time estimate allows as

compared to the due date required by management. For example, if

management said that you could have 1 year to complete the project we

just analysed as taking 8.5 months, what slack would your project have?

12 months - 8.5 months = +3.5 months

In this project you have positive slack, or extra time, not only on the non

critical paths but on the critical path as well.

What if management asked if you would accept 8.5 months as the target

date? What type of slack would you then have?

8.5 months - 8.5 months = 0 months

Zero slack would completely commit you to the critical path.

Finally, consider a more realistic possibility. Suppose that your

management has asked for the project to be completed in 6 months. Use

the project slack calculation to determine what type of slack you would

now have to contend with.

6.0 months - 8.5 months = -2.5 months

Not such a pretty picture. Negative slack forces you to use the critical

path in a backward planning mode. In other words, you must shorten the

critical path by reworking the sequence of the activities or by reallocating

resources from the slack paths to the critical path.

Early Start-Early Finish and Late Start - Late

Finish

Early start - early finish dates are developed by starting at the beginning

of the network and working forward. The early start-early finish times are

written above the activity arrow in brackets (Note: from this point on,

event numbers will reflect events in the customer index system).

Assume that the start day is 0. This is the earliest time that you could

start activity A. If activity A takes 1 months, then the earliest that activity

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could be completed would be 1 month from the start of the project. In this

case, activity B will have an early start if activity A can be completed in 1

month.

Therefore, activity B has an early start of 1 month. And since activity B

takes at least 2.5 months, the earliest time that activity B can be finished

is 1 month plus 2.5 months, which is 3.5 months from day 0. Keep in

mind that the critical path’s early finish always takes precedence over the

other paths.

Starting at the completion time estimate and working backward develop

late start-late finishes. The late start-late finishes are written below the

activity arrow in brackets.

The late finish for each of the final activities in the completion target time

is, 8.5 months. Therefore, the latest that each activity could be started is

the late finish minus the duration. For example, activity F has a late finish

of 8.5 months because that is the te of the project. Activity F has a late

start of 7 months, which was derived by subtracting the duration of the

activity (1.5 months) from the late finish (8.5 months). If you move

backward on the path, the late finish of the preceding activity, C, is the

late start of activity F, or 7 months. And the late start for activity, C, is the

late start of activity F, or 7 months. And the late start of activity C is 7

months minus the duration of activity C, which is 2 months. This means

that activity C will have a late start of 5 months. Remember, at any

crossroads, or when the paths converge, the critical path’s late start takes

precedence over the other path. It is the latest path going forward (early

start-early finish). It is the earliest path going backward (late start-late

finish).

Remember, when two or more paths converge, the critical path takes

precedence. Now that you have developed these numbers, let’s look at

how you will use them.

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PERT NETWORKS

Pert Networks ......................................................................... 31

Estimates or Forecasts................................................... 32

Underlying Assumptions................................................. 33

Techniques..................................................................... 34

Activity Time and Critical Path ........................................ 36

Variance ......................................................................... 36

Updating a Network ........................................................ 39

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Analysing Baselines ....................................................... 39

Estimates or Forecasts?

Whether you use estimates or forecasts to determine activity or project

duration depends on the kind of projects you will be responsible for.

Estimates are guesses - educated guesses, to be sure, but guesses

nevertheless. We estimate given little history or proven experience to go

by.

Forecasts, on the other hand, are predictions. We forecast as the result

of careful data analysis using extensive experience and valid data.

An estimate is a perfectly reasonable thing to be doing if your project is in

one of the following categories:

Never been done before by anyone.

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Never been done before in your organisation.

Never been done on this scale.

Completion date is not critical.

If your project is not in one of these categories, then it might be more

reasonable for you, your client, your management, and your team to work

with forecasts. However, in order to forecast, you need to analyse

available pertinent data.

If you do not have an estimating guidebook (such as that used in

construction or auto repair), you must consider each activity individually

and determine what will have an impact on its completion both the actual

effort to be expended by a resource and the calendar time.

A good base can be established by using prior project history, provided

you tracked the deliverable and who performed the work (with what

experience and support) for what effort over what period of time. If there

are other variables that may have an impact, they should be tracked in

order to have good data.

Only experienced project managers should forecast as forecasts can

quickly become set in concrete. Estimates, on the other hand, are

approximations. They are “best guesses”, probabilities, or “gut feelings”,

and therefore are offered as guidelines as best as they are highly subject

to change.

Underlying Assumptions of Time Estimates

Never assume that a special mix of labour and equipment will be

available use only the level most common to similar projects. Also, use

straight time estimates only unless overtime is a normal, daily practice.

Each activity time’s estimate must be discrete; that is, it should not be

influenced or adjusted because of some expected outcome in a previous

or succeeding activity. (Furthermore, “acts of God” are not included in

time estimates).

Since estimates are guesses of ”likely” task duration, they have a 51

percent chance of being right. Therefore, an unpadded estimate has

approximately a 50-50 chance of achievement. The calculation of

standard deviation and variance (explained later in this Module) are two

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ways that PERT attempts to come up with more accurate but not overly

inflated estimates.

Estimating and Forecasting Techniques

Projects are as varied as people, and each type of project - whether it is

constructing a building, implementing a computer system, introducing a

new product/service, or building a road, lends itself to specific methods of

task estimating or forecasting. Four of these methods are described

here.

Experience Method

Develop an outline of the existing requirements. This outline should

represent the functional capabilities of the system or product/service.

After collecting data from similar previous projects, select basic relevant

data to develop the estimates by using the following steps:

1. Compare the project to previous similar projects.

2. Divide the project into units, and compare each unit with previous

similar units.

3. Schedule work and estimate resources by month. Pay particular

attention to resource loadings. In order to utilise available

personnel effectively, staff size should not fluctuate greatly from

month to month. Also, staff size cannot increase more than 30

percent per year and maintain effective managerial control over

the development of the project without significant waste of

resources.

4. Develop standards that can be applied to the work.

Quantitative Method

This is a mathematical formula that produces resource estimates base on

attributes of the finished product/service. For example, lines of code

multiplied by average cost per line gives a relative indication of computer

programming costs, assuming that every line of code costs approximately

the same. This method is not as accurate as the experience method

because the system complexity or methodology is generally ignored.

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Constraint Method

In this method the resource constraints and duration are fixed at project

conception; then the specifications are adjusted to fit reality. In practice,

the experience and quantitative methods will always deliver a complete

project, though it may be late and cost more than expected. If used

faithfully, the constraint method will always be on time, but the

product/service may be less than was originally desired.

As a general rule, this technique should not be used. The project

manager must be aware that less than what was desired will actually be

delivered. However, if the specifications are truly flexible, this method

may be appropriate. This method is used more often than it should be.

Units of Work Method

The project is divided into small units, and each unit is independently

estimated. This differs from the experience method since the increased

complexity due to interaction between different units is ignored. It is not a

recommended method, but is mentioned because of its prevalent usage.

The only direct correlation between effort estimates and calendar time is

that calendar time for an activity cannot be less than the single largest

effort by one resource. For example, if person A estimates one week of

effort and person B estimates two weeks of effort, the least amount of

calendar time for that activity is two weeks.

PERT Networks

The PERT approach uses three time estimates rather than the one time

estimate developed for the basic network. These three time estimates

are: the most optimistic time (that is, if everything goes perfectly), the

most likely time (probably the one you developed for the basic network),

and the most pessimistic time (that is, if everything that could possibly go

wrong did). These three estimates are to, tm, and tp, respectively.

The three time estimates are used in a number of calculations to

determine such statistics as the time estimate for each activity (te), the

critical path and time estimate for the entire project te, the factor of

uncertainty for each activity (s2), the path of most uncertainty (Vt), and the

contingency factor.

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We will discuss how each of these statistics is calculated in later sections

of this Module. However, it must be said here that PERT, which uses

three time estimates, is a more conservative approach and builds in some

contingency factors as a result of the mere relationship of the three times.

The three time estimates (to, tm, and tp) are written underneath the

activity arrows. The time estimate for each activity (te) is calculated by

using the following equation:

to + 4 tm + tp

te =6

Activity Time and Critical Path

The above equation is an industry-standard calculation for estimating

activity times based on the assumption that the optimistic time and the

pessimistic time have an equal chance of occurring. However, in this

instance, the most likely time is weighted by a factor of 4. (The divisor of

6 is the averaging factor for the 6 weighting’s in the numerator). Some

organisations work with weighting factors that they have found, in the light

of experience, to work best for them. However, almost everyone in the

industry uses this basis equation.

You’ll develop a critical path for PERT in the same way that you did for the

basic network. Once you have ascertained the activity time estimates,

add up the te’s along every path. This will tell you which path is the

longest. The longest path will be the critical path and the total estimates

elapsed time that it will take to complete the project. This path should be

designated te. The activities along this path will be the critical path

activities. The arrows representing the critical path activities should be

drawn with bold lines. These bold arrows will clearly indicate the critical

path’s direction.

Variance

For each set of time estimates, the variance, or uncertainty factor, should

be calculated. Generally, the larger the gap between the most optimistic

time and the most pessimistic time, the less certain the estimate, and

therefore, the higher the variance.

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You would use the following equation to precisely calculate how certain

each estimate is:

tp - to2

s2 = 6

In this equation the variance is designated S, or sigma.

Activities of Most Uncertainty and Path of Most Uncertainty

In your project you should closely examine all of the variances and re-

evaluate the larger ones with the person who made the estimates.

Keep in mind that there are no bad or good variances; you are only

considering how each variance factor relates to the others. Now you’re

probably thinking that you don’t need to make a complex calculation to tell

you that if the optimistic time was .5 months, the most likely time was 1

month, and the most pessimistic time was 10 months, then you definitely

would have uncertain estimates. (These particular estimates may be

accurate. Perhaps the person supplying the estimates knows something

that you don’t. For example, these estimates could be a construction

activity in the North Country that, if not completed in 1 month, would have

to be postponed until after the wet season weather subsides. Therefore,

the project might take 10 months to complete). However, when your

project has hundreds of activities, it’s not as easy. A computer could

analyse all the variances for you and single out activities that you, as

project leader, might want to question.

Once you have determined the validity of the estimates, you’ll have

another “management by exception” routine for tracking the project. But

be careful the more uncertain activities should be tracked cautiously to be

sure that they do not tend toward the more pessimistic estimate. When

developing your schedules, you should work in ample float time around

the uncertain activities.

Another warning: Watch out for project personnel who consistently

provide highly certain estimates. If someone knows the formula, they can

take their most likely estimate and skew out the optimistic and pessimistic

time in order to make all their estimates meet a reasonable certainty

factor.

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No real project will fall in line correctly. Therefore, you might ask these

people need to rework their numbers, maybe with a little more honesty the

second time around.

You’ll determine the path of most uncertainty in the same way that you

determined the critical path. Add up all the uncertainty factors along each

path. The path with the highest variance is the path of most uncertainty.

No matter what direction the path of most uncertainty takes, it will provide

you with another management by exception path to monitor. These

activities will become another focal point during the controlling process.

You may become concerned that you have not worked enough “fudge”, or

what is professionally called a contingency factor, into your project

estimates. To remedy this issue, many project leaders take a scientific

approach, for example, doubling their te time estimate or multiplying it by

2.5.

A more conservative approach to determining workable estimates

involves using the standard deviation calculation. First assume that the

three time estimates will follow the normal (bell) curve, with the optimistic

and pessimistic estimates at each end and the most likely falling at the

midpoint of the curve.

According to probability theory, there is a 50-50 chance of exactly hitting

the most likely estimate. If we calculate standard deviation, the chances

of hitting anywhere within one standard deviation from the midpoint are 68

percent.

For example, let’s say our estimates are:

3 weeks - optimistic

9 weeks - pessimistic

6 weeks - most likely

There is a 50 percent change that we will complete the task in 6 weeks. If

we calculate standard deviation as

tp - to

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ST =6

we get 9 - 3 = 6/6 = 1, a standard deviation of 1 week. Since

standard deviation is applied on both sides of the midpoint, we can say

that there is a chance of finishing between 5 and 7 weeks. If we extend

our estimate to include 2 standard deviations, we increase our chances to

95 percent, and there is a 99 percent chance - or virtual assurance - of

finishing within 3 standard deviations. Out chances look like this:

50 percent 6 weeks

68 percent 5-7 weeks



Each activity on the path of most uncertainty has a corresponding

deviation. The standard deviations are added up to arrive at a standard

deviation for the project, which in this case is 2.66 months.

Accordingly, we have a 68 percent chance of finishing within one

standard deviation (12.94 months), a 95 percent chance of finishing

within 2 standard deviations (15.63 months), and a 99 percent chance of

finishing within 3 standard deviations (18.26 months) of the current time

estimate.

In order to assure ourselves of a 99.9 percent chance of coming in on

target, we should add three standard deviations, or 7.98 months, to our

time estimates of 10.28 months, or present a time estimate of 18.26

months to management.

Updating a Network

Many project managers feel that developing a network isn’t worth the time

and effort if it can’t be used to control and monitor the project. If the

entire sequence of the project is altered, then the network will have to be

re-drawn. However, if you are revising dates or trying to show when an

activity is actually complete, there are certain conventions that will allow

you to do so without having to complete redraw the network.

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Analysing Baselines

A network used as a status should be uncluttered and readily

comprehensible. Separate segments of the project will been isolated.

Furthermore, the simplistic “flag” technique will clearly indicate completed

activities as well as revised completion dates for upcoming activities.

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GANTT CHARTS

GANTT Charts ........................................................................ 42

Creating GANTTS .......................................................... 43

Validating the Schedule Baseline ................................... 44

Milestones ...................................................................... 44

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GANTT Charts

Networks can be translated onto calendar charts and be used for

monitoring and controlling the project. However, another format is more

frequently used for monitoring and controlling. This is called the Gantt

chart, or the bar chart or schedule chart.

In this Module we’ll look at this approach in more detail. Gantt charts look

very different from network charts, and you need to be familiar with how

they are created. We will examine how many different formats and

notation systems there are, what a Gantt chart can tell you, and how it

can help to control complex work efforts.

Creating Gantt Charts

Using the Gantt chart method, plot the start and end times of all activities

on a calendar chart. Then analyse when an activity is to begin, how long

it will last, and when it will be complete. Finally, graph how each

succeeding activity relates to its immediate predecessor.

If the network was broken down to the lowest possible level of detail, the

Gantt chart could be drawn directly from it.

Gantt charts are plotted on a matrix; the duration (days, weeks, or

months) lies along the horizontal axis, the activities along the vertical

axis. The start and end may be indicated by an X, or the start with a and

the end by a . The Gantt chart can also incorporate milestones, or

mandatory completion dates. These are usually indicated by a.

In many cases you’ll be able to translate the network directly onto a Gantt

calendar chart. However, in some instances, the network will be

incomplete for this purpose because networks don’t allow for all possible

overlapping situations. In fact, networks commonly assume that

preceding activities are 100 percent complete before succeeding activities

can begin. The Gantt chart, however, is not restricted in this way. In a

sense, it is more refined because it allows for overlapping start times.

Because of this limitation of networks, it might be necessary to perform

one more analysis before translating activities onto a schedule chart - that

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is, you might have to determine percentage of overlap. Remember, the

time estimate that has the latest start always takes precedence.

Validating the Schedule Baseline

To avoid erroneous estimates, it’s wise to create an individual Gantt chart

for each person or area of responsibility. After creating each chart, you

should validate it.

The individual Gantt chart only indicates where issues may exist; it does

not identify or solve them. It is your job to return to your work sheet and

make sure that your analysis was correct in the first place, and then, if

your analysis was correct, to talk to the person responsible to determine

if, in fact, the input was accurate.

You can also validate a Gantt chart by using a consolidated program

chart. The consolidated program chart graphs every project activity to the

lowest level of detail, in chronological order. This allows you to check for

sequence errors, overloading, under loading, and gaps.

Milestones

A more simplified method to schedule charts is to show only the milestone

dates. A milestone is a marker of a major event a significant point in

development. Every completion date for the project won’t be a milestone.

Milestones should be specific dates, or mandatory delivery dates. For

example, milestones could be equipment deliveries, material deliveries,

review meetings, approval checkpoints, and so on. Before milestones

can be met, a series of smaller markers must be passed. These might be

“metre lines” or “centimetre pebbles”, depending upon the overall size of

your project. The important point is to have a series of small deliverable’s

that will result in a milestone.

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HUMAN RESOURCES BASELINE

Human Resource Baseline ..................................................... 45

Manpower Loading Chart ............................................... 47

Updating a Chart ............................................................ 49

Trade-Offs ...................................................................... 50

Negotiating The Performance Contract .......................... 50

Time Commitments ........................................................ 50

Reporting Formats and Schedules ................................. 50

Issues Management ....................................................... 51

Project Responsibilities .................................................. 51

Compliance..................................................................... 51

Equipment Resources .................................................... 52

Contingency and Risk..................................................... 52

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What the Project Manager Manages

On a project team of three or four people, you will probably be well

acquainted with each person’s skills and expertise. We have already

discussed assigning resources to tasks. With a limited project team, this

is quite easy to do. However, on a project with a larger team (and

probably a larger and more complex objective), it might be more difficult

to recall each person’s skills in your head. In addition, some team

members may have skills that are not being used in their present

assignments but that might be applicable to the project. Refer to your

skills inventory. There are at least two places where this inventory will be

useful: during planning to resolve overloading issues, and later (during the

progress of the project) to respond to slippage in task completions. On a

large project, you will probably be referring to the skills inventory

throughout the project control phase.

The next most controllable factor - on several levels - for the project

manager is time. How many hours per day will a resource work? When

is the task scheduled? Is there float (time) for the task? Must a task wait

for its predecessor to be completely finished, or could it start after x

amount of progress?

Time can be made to work for you by looking at each task - the

relationship of one task to its predecessor - to determine if a task’s

predecessor must be 100 percent complete in order to begin. In order to

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utilise a partial dependency, it is imperative that there be a specific

completion criterion to mark the time when the succeeding task may

begin. Generally, duration is not an acceptable measure. Duration might

be acceptable for a task that could start three days after the cement had

been poured (allowing the cement to dry), but it is unacceptable for a

task, such as research or program coding, where time alone does not

guarantee progress. In order to manage, the project manager needs

specific deliverable’s at specific stages of completion, and as we know,

deliverable’s must be objective and measurable.

All of the foregoing options are feasible only if the resources are available.

Float can be used to adjust start and end times when resources may not

be available at the earliest start date. However, just because a task has

float does not mean it is reasonable to change its dates. Float is a

function of the dependency analysis; availability of the resource may be

dependent on the organisational structure and its priorities, as well as on

the project plans.

Manpower Loading Chart

Determining Full-Time Equivalents

As we have already discussed, much of project management is human

resources management. Before the resources can be properly managed,

the number of full-time equivalents, where we need them, and when they

will be required in the project’s life must be determined. It is also

important that the project manager determines how resources will be

allocated over the duration of a project and verifies that these resources

are being allocated correctly. In other words, a project manager must

determine if the project staff is building up and phasing out of the project

at a reasonable rate while ensuring that no team members are

overloaded at any given time. During this phase of resources allocation,

we will rely heavily on the human resources matrix. However, we will use

on that includes manpower estimates for each person. In addition to

individual manpower estimates, this chart also includes three extra

columns:

Total manpower estimate for each task

Elapsed time estimate for each task

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Individual manpower allocation for each task

After we validate each person’s commitment (we want to be certain that

no one has committed more than 100 percent of their time in any given

time period), we will calculate these columns to get a picture of the total

project commitment.

Creating A Manpower Loading Chart

The human resources matrix is merely a work sheet. From this analysis

of who will be responsible for what, you can develop a graphic

presentation called the manpower-loading chart. Comparing the human

resources matrix, which indicates human resources allocation, with the

Gantt chart, which specifies scheduling of assignments, creates this

chart. This comparison will give you an idea of who will be working on the

project at any time. The number of people who will be working on the

project is plotted, on a month-by-month basis, by drawing a bold line

along the manpower limits.

In some projects the entire project team may not be totally committed to

one particular assignment. Therefore, the manpower-loading chart may

indicate that only 1.5 persons are committed, since certain persons may

have dedicated only part of their time to this assignment.

After individual manpower loading charts have been developed to cover

all areas of responsibility, a consolidated manpower-loading chart should

be developed for the entire project

Now take your own human resources matrix work sheet and compare it

with your own Gantt chart.

On the blank manpower-loading plot the number of people who will be

working on the project on a month-by-month basis. (In a real situation,

this operation would be quite difficult to perform at such a high level of

detail).

Updating A Chart

You can update a manpower-loading chart by shading in manpower as it

is used. However, the chart must be updated in such a way that the

unused manpower is still visible. Each area of responsibility updates its

own manpower-loading chart at the project leader’s request. Upon

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receipt of this chart, the project leader will update the consolidated

manpower-loading chart. The manpower-loading chart can be an

excellent tool for tracing human resources and for reporting the project’s

status to upper management.

Here are some possible solutions to the kinds of issues posed in

manpower-loading:

If you are using more manpower than you actually planned for,

the issue may be that the plan was wrong in the first place and

that additional manpower had to be called in to maintain the

schedule. Some solutions to this issue are:

1. Own up to management that more manpower may be

required to keep on schedule, and then obtain authorisation

to alter the human resources plan.

2. Secure a postponement of the completion date so that you

can stay within the original manpower plan.

If less manpower is being used than was estimated, the issue

may be that the plan contained excess fat or that planned-for

manpower has not been available. Some solutions to this issue

are:

1. Rework the plan to trim the excess fat.

2. Determine why planned-for staff has not been available, and

rectify the situation.

If you are using precisely the manpower that was planned for, you

do have an issue. It’s almost impossible to use the exact amount

of planned-for manpower. It may be that someone is just not

telling the truth. You should speak immediately to those who are

supplying the data.

If sometimes more - sometimes less manpower is being used,

you are probably on track. Be sure that these variations do not

adversely affect anyone’s schedule.

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Trade-Offs

Once you have exhausted all planning alternatives, you should consider

changes to the baselines. This will mean you must negotiate for

additional resources or overtime, more time, and/or a decrease in project

scope/specifications. At this point, however, you know exactly how many

resources you’ll require, how much more time, or which specifications will

not be met.

Negotiating The Performance Contract

The project manager requires an informal contract from each team

member for his or her performance in the project. The manager needs a

clear commitment from the team, and the team needs clear objectives

and reasonable requires from the project manager. These needs fall into

the following categories: time commitments, reporting formats and

schedules, issue isolation and resolution, project responsibility, ensuring

compliance, and identifying equipment resources.

Time Commitments

The project manager has to commit to the following time requirements:

Allow enough time for each team member to properly investigate,

estimate, and execute each task.

Reporting Formats and Schedules

Before any project work begins, identify what reporting formats are

required and how they will be used. Determine - with the team - what the

reporting schedule will be (once-a-week reports, monthly team meetings).

Also determine who will be responsible for consolidating information into

reports, for example, supporting personnel report to the task leader, the

task leader reports to the project manager, and so on.

Issue Isolation and Resolution

Determine which issues need the project manager’s attention and which

should go to the functional manager. Then set up a procedure for solving

the issue:

What is the issue?

What is it not?

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Does it look like any previous issues?

What is needed to resolve it?

How does the resolution get implemented?

Project Responsibilities

It is the project manager’s responsibility to clearly define task

assignments, including specific deliverable’s, and assign primary and

supporting personnel. Communication and coordination requirements

must be clearly defined:

Who will disseminate information?

Who will handle change?

Who will handle enquires?

Who will negotiate with functional managers for resources, time,

and so forth?

The project manager and the team members will continue to define the

performance contract as they develop more detail on the project.

Remember, it is useless to define a task if no one takes responsibility for

it. The human resources matrix is an important mechanism for

graphically depicting that responsibility.

Ensuring Compliance

In all designated areas of responsibility, an actual commitment of

personnel should be made. A promise to accomplish an assignment is

always nice to hear, but this promise is worthless if the staff isn’t available

to perform the work. Each commitment, therefore, should spell out

exactly who will be performing what duties and when. Supporting

personnel must spell out their commitments as well. These commitments

will be modified as the project is planned to greater detail.

Identifying Equipment Resources

Equipment resources need to be identified and scheduled along with the

human resources. For example, if a particular piece of equipment will be

necessary for testing, it is better to start negotiating early. Waiting may

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put you and the project in a very precarious position if you need the

equipment at the same time it is being used for year-end closing.

Contingency Plans and Risk Analysis

If your project is resources constrained - that is, you have a limited

number of resources that may be applied to this project then you are now

in a position to evaluate the usage of those resources. You do not have

the option of additional resources, although overtime may still be

considered. Therefore, you have only two choices regarding trade-offs:

more time or less scope. Before making a recommendation to

management, be sure you have considered all possible methods for

smoothing resource workloads to complete the current scope.

In addition to the risk factors already identified and considered, determine

if any of the following exists: A resource may be lost to another project

due to a break in assignments; a resource is scheduled through a

vacation or holidays; all paths are critical; or testing has been scheduled

during fiscal/calendar/end-of-year festivities.

DEVELOPING AND MONITORING THE

COST BASELINE

Development and Monitoring Cost.......................................... 53

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Cost Evaluation .............................................................. 54

One Time Development Costs ....................................... 54

Intangible Benefits .......................................................... 55

Cost Spreadsheet........................................................... 56

Cost Line/Bar Graph....................................................... 57

The Cost Evaluation

Two categories of costs are analysed at this time: recurring costs/savings

and one-time development costs. Recurring costs/savings affect the

annual operating expenses of the organisation after the end

product/service is completed. In fact, they will affect bottom-line profit and

loss statements for months and years after the project is finished. One-

time development costs, or initial outlays, allow the project to evolve to its

conclusion. In other words, they make up the project’s budget.

In many cost evaluations, a third category - intangible benefits - becomes

very important. Intangibles are items that cannot be measured in dollars

(customer goodwill, for example). Don’t discount these intangible items.

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They can have quite an influence on whether or not management allows

the projects to proceed.

One-Time Development Costs

One-time development costs include those expenditures that make up the

budget of the project. They include such items as labour, temporary

space, supplies, training (pre-project and prior to installation), travel and

expenses, conversion or one-time tooling costs, equipment (purchase or

lease), contracted services, and research (new technology). These items

should be considered very carefully. Labour is usually the most

substantial project cost and the most difficult to determine.

One way to calculate the labour cost factor is to use the human resources

matrix. First, you should develop manpower estimates with the person

responsible from each area. Then take the work breakdown structure

and assign time estimates to each task.

The manpower estimates should be the actual time to be spent on the

work, not the elapsed calendar time or task duration. And use a

consistent measure of time - hours, days, or months. Start at the lowest

level of detail and work up to the summary level.

With the base manpower figure, you can multiply the charge-out rate for

any job category to determine the base labour cost. In many industries

this base labour factor may be weighted with:

An economic factor, which indicates proposed raises and

increased fringe benefits.

Overhead, which includes the salaries of supervisory and

support staff within each department.

Operational burden, or maintenance of the plant, which

includes pro-rating figures for utilities, space and so forth.

Intangible Benefits

Intangibles are those items that cannot be measured in dollars. Although

they are important to the project’s progress, they do not really lead

themselves to quantification. They can be, for example, better service,

improved image, better competitive position, reduced risk, increased

customer service, and improved growth potential. Many more items could

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be added to this list, and in fact, a monetary value could be affixed to

almost any of these intangible benefits. Just use a little creative

accounting. Increased customer service could be quantified by the

following reasoning: Fewer complaints mean less adjustment time, and

therefore, manpower might be reduced.

Some project managers see the intangible section of their cost evaluation

proposal as issue/opportunity identification. In other words, finding a

solution for each small issue presents an opportunity for additional

unrelated benefits.

Cost Spreadsheet

A cost spreadsheet is merely a sheet on which the project leader

analyses how the project’s budget will be spent. At the beginning of the

project, the cost spreadsheet forces the project leader to spread each of

the categories of one-time development costs over the project’s entire life

span.

The spreadsheet will then be translated into visual form as a line graph or

a bar graph. These graphs will better communicate the information to

members of the project team and to top management.

During work in progress, the spreadsheet becomes the work sheet on

which actual expenses and times are entered. These figures will be

translated onto line or bar graphs later on.

Creating a Cost Spreadsheet

Cost categories are written along the vertical axis of the matrix. These

categories may be such items as labour, equipment, supplies, and

training. Number along the horizontal axis designates months. Under

each month should appear the planned figure, p, which you are

developing now. As the project evolves, the actual figures, a, will be filled

in either following a schedule or as you require them. Budget figures are

spread across the months. Notice that the figures are for period to date -

in other words, cumulative as of that month. This permits an area of

responsibility that has exceeded its budget in one month to stabilise itself

for the next month. Totals are accumulated from all the categories for

each month. The total of the last month will be budget for the entire

project.

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Validating a Cost Spreadsheet

A cost spreadsheet is validated by making sure that:

Every figure is the same or larger than that for the previous

month in that category. This ensures that figures are

cumulative and for period to date.

Once a figure is entered, it is carried through subsequent

months even if no additional expense is incurred in that

category. Again, this procedure ensures that figures are

cumulative and for period to date.

The budget is reasonable. For example, if the entire budget

for any one category is spent in the first month, were the

estimates reasonable?

The math is correct.

Cost Line/Bar Graph

The accumulated figures from each month of all the cost spreadsheet

categories should then be plotted onto a line graph chart. Use the

guidelines:

Use the vertical axis for costs.

Use the horizontal axis for duration, designated in months.

Write the total cost of the project ($) appropriate horizontal

line.

Divide that total cost by the number of lines between 0 and

the total cost.

Using these increments proceed from the 0 up to the total

cost of the project.

Place a dot at the end of each month that represents the

period-to-date cost of the project to that point.

Connect all the dots.

The chart that you just created should represent the budget for the entire

project. However, you should not only create an individual chart for each

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area of responsibility, you should also consider a chart for each category -

if you think it will help you control the cost factors of your project.

MANAGING THE PROJECT WITH

MULTIPLE BASELINES

Managing Projects With Multiple Baselines ............................ 58

Control Prerequisites ...................................................... 59

Change In Scope............................................................ 61

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Control Prerequisites

There are several prerequisites to controlling a project.

First, the status report format must be flexible and easy to update. After

the project is under way, there won’t be time to rewrite, retype, proofread,

and correct your status documents. So, during the monitoring and

controlling phase, you’ll need a graphic format on which you can indicate

work in progress with an extended line or a solid box. Your approach, in

short, should be as easy as possible.

Second, you should realise that you’ll need status reports for many

different audiences: one for the project team (a detailed picture), one for

you and the operation managers (a consolidated picture of the entire

project), and one for management (a graphic overview). If you are not

going to use a computer, make each “tailored” format a variation on a

basic form. For example, adapt the Gantt chart approach for each

audience. If you have computer support, you can probably develop as

many varied formats as you have audiences. In general, provide more

detail and provide it frequently for the lower levels. For the higher levels

(upper management), a less detailed and less frequent (usually a graphic

presentation) approach will do.

Third, you should predefine checkpoints. This means that you should

designate milestone dates for approvals, review meetings, capital

expenditure orders, and so forth. These milestones should be set at the

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beginning so that participants can plan to accomplish each activity or

attend each meeting.

Fourth, there should be a commitment to project management. As

project leader you should make the first commitment. If you don’t believe

in project management, how can you expect other members of the project

team to be enthusiastic and disciplined about it? And beware: When the

going gets rough, you’ll tend to ignore the controlling process. Don’t let

the charts gather dust in your drawer. This is the most important time to

be sure that these reports are accurate and can be used to help make

decisions.

Fifth, management should also make a commitment to project

management methods. If management does not support your project

management approach, you’ll have to convince it to do so. This might

mean that you have some extra paperwork ahead of you.

As management perceives the control that this approach gives you, it will

certainly be swayed in your behalf.

Sixth, don’t forget costs. Review the cost baseline periodically. Don’t

wait for a post evaluation audit to reveal that you are substantially over

your budget. No one likes those kinds of surprises. Remember that your

baselines were valid only at the time they were approved. Even changes

that are occurring at this very moment can make these baselines

inaccurate. Therefore, baseline plans should not be set in concrete.

Baselines are flexible and volatile tools - their main purpose is to warn you

when you are off track and give you an opportunity to get back.

The monitoring and controlling phase occurs during the lower loop of the

project management cycle. Once progress reports have been created,

they should be reviewed for variances.

Before choosing the correct status-reporting document, you should

answer the following questions:

Are the reports to be used merely for communication? If so,

it isn’t necessary to make them particularly flexible for

updating and re-planning.

Are the reports to form the basis for progress reporting

meetings? If so, organise them either by area of

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responsibility or by due date so they will be easily translated

into a workable agenda.

Are the reports to be action tools that will be revised as

required? If so, the reports must be in graphic form and as

flexible as possible.

Your choice for a status reporting document will then depend on the:

Audience to whom these reports will be distributed.

Purpose for which they are intended (as discussed above).

Image you are trying to portray. In other words, how

sophisticated do you want to appear? The more

sophisticated, the more mathematical the approach.

Difficulty of updating the document. If you have very few

other assignments outside of managing this project, then you

can spare the time to update detailed reports. But if you are

managing multiple projects or are also supposed to contribute

to the technical side of completing the end product/service,

updating the status reports should be as easy as possible.

Element(s) you want to focus on (schedule, dollars,

specifications, human resources, exception reporting, and so

on).

Change in Scope

One very important topic that concerns all planning is changes in the

scope of the project. Try as we may, it is impossible to work any project

through to completion without intermittent changes that must be

incorporated into the plan and the workload. Changes occur for any

number of reasons, including:

Unearthing the Iceberg: As work proceeds, more is

learned, and the requirements shift and expand.

Mistakes: People make errors, which can be unintentional

and uncontrollable.

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State-of-the-Art Changes: These are either perpetuated by

the force of the project itself (asking a vendor to create

needed technology) or by finding out that there is something

else on the market that would satisfy the design more

efficiently.

Players on Wheels: Team members may be transferred or

promoted (unintelligible).

Creeping Commitments: Changes in design scope can

occur as either the design team or the client has a better

idea.

External Forces: Government/legal requirements changes,

changes in competitive marketplace, and “acts of God” can

alter the scope of a project.

These changes are inevitable and will have to be tracked.

An effect change control procedure might incorporate:

1. A change control law for all changes, whether or not they are

approved or have an impact on the schedule.

2. Change control forms that provide for approval.

3. One person designated as the approving authority for changes.

(Generally, this should be someone from the client area).

Before leaving the subject of changes in scope, consider a few

suggestions. Every new baseline change should not necessitate updating

and redistributing new status reports unless the changes are major.

Moreover, don’t leave your changes of scope undocumented. This

documentation may become an important factor during the post

evaluation review. Changes to the original scope may be the reason why

the project was not completed on schedule or overran its planned budget.

Don’t overreact to changes in scope. Be sure you know your facts and

study all the alternatives thoroughly. Remember that there is a

substantial delay between the time you implement a change and when it

takes effect. Be patient. Wait for results. But don’t wait too long. Things

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will not miraculously straighten themselves out. You are the one in

control.

MOST (Management Operations

System Technique)

MOST……. ............................................................................. 63

Creating a MOST Diagram ............................................. 64

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MOST

MOST is a graphic illustration that presents time, costs, and human

resources on one document. In many cases a PERT network is

translated into a MOST diagram. MOST, contrary to Gantt, is built from

the right (completion date) toward the left (start date) by using a bar chart

technique. MOST has one time estimate instead of three and can

illustrate both critical and slack paths.

Creating a MOST diagram

You’ll construct a MOST diagram as follows:

Prepare a work breakdown structure for the project and

assign time estimates. If the relationships of the activities are

complex, you might construct a PERT network before you

continue.

Draw a bar, closed with flags at right angles (as in the

exhibits), to note start and finished points.

If several tasks are to be shown in one activity, draw a flag

ending at the upper line of the bar.

Write the time estimate above the bar, to the right of the start

flag.

Using these standards, plot the bar on a calendar chart.

Work from completion to start date (right to left).

To indicate slack - that is, indicating an activity that could start

earlier but must start later than the flagged start time - use a

dotted (dummy) arrow before the bar, plus a solid arrow at

the end of the first task, to show the required

interdependency with the second task (as in Exhibit 9-11).

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Identify the person or areas of responsibility by writing their

initials in parentheses under the activity name.

As it relates to human resources manpower loading, MOST is constructed

by:

Soliciting input from everyone involved;

Considering the actual manpower for the project; and

Indicating the manpower above each bar in parentheses. (If no

chargeable manpower is required, place a 0 in parentheses

above the bar).

If you use this approach, MOST can verify the availability of the staff who

have been assigned to the project. Revising the schedule to fit available

manpower is called manpower leveling, or manpower smoothing.

As it relates to cost, MOST is best prepared at lower levels of the work

breakdown structure. It may be influenced by the length of each job,

number of personnel (and their expertise), man hours available per week,

equipment, supplies, forms, overhead rates, and indirect charges. The

cost factor is calculated by adding up all the expenses for each activity in

each time period. The cost factor is then written above the bar, in the box

to the right of the flag. It may also be spread out, by month, over the bar.

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Troubleshooting Potential Issues

Troubleshooting Potential Issues............................................ 66

Variance Analysis ........................................................... 69

Multi-Project Planning and Control ................................. 70

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Troubleshooting

On the following pages are exercises to sharpen you analytical skills as a

project leader. Exhibited is a copy of the original plan.

What is wrong with the project in the Exhibits as of the seventh month?

What do you recommend as solutions?

Remember, status reporting indicates only potential issues; that is, it

merely shows symptoms. You must decide the solutions.

In the Exhibit the schedule seems right on target. However, human

resources are used in excess and the project is substantially over budget.

If we had looked at the schedule by itself, we would have not seen the

complete picture. The truth is that the excess personnel are causing the

project to go over budget.

The situation in the Exhibit indicates that the plan was probably faulty

from the beginning. The correct number of staff wasn’t planned for, or the

expertise of the present staff was overestimated. In any case, the end of

the seventh month is too late to be discovering this issue. It should have

been taken care of at the end of the second or third month.

In the Exhibit the schedule is slipping more and more each month, yet the

human resources and costs are staying within budget. It seems that

deadlines are slipping because the correct human resources weren’t

allocated. Again, the plan should have been reworked.

In the Exhibit the original schedule and revisions have been consistently

behind. The project is also under budget. It looks as if the promised

staffing didn’t materialise. If this is true, this graph will prove to

management why the project is so dramatically behind schedule.

In the Exhibit the schedule is substantially behind; the staff is over utilised

and budget is dramatically over plan. Some would say that this is a

typical project. Not true! A farsighted project manager would have

completely reworked the plan early in the project; these issues could have

been avoided.

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In the Exhibit the schedule is on target. Budget is a little under. Human

resources are brought into the project and mustered out as required.

Although projects occasionally run this smoothly, a schedule as accurate

as this is enough to make anyone nervous.

In general, once you see an issue, you should:

1. Follow the audit trails and isolate the true cause of the issue.

2. Determine the issue’s overall impact.

3. Decide on corrective action.

4. Implement corrective action.

5. Follow up to see that it works.

Remember don’t overreact. But don’t wait too long to decide what

solution you’re going to implement. And once you have implemented a

course of action, give it an opportunity to work.

Again, as you consider potential solutions:

Determine if the plan was valid in the first place. If not,

rework it.

Decide if there have been so many changes that the original

plan is no longer valid. If so, stop and rework the project

definition.

The last resort is to trade off additional manpower, additional

money, delayed schedule, a cut down version of the end

product/service, or a phasing in of commitments over a long

period of time.

Each baseline (cost, schedule, human resources) has now been

developed, validated, and interpreted onto a graphic format. Let’s now

look at why unifying these baselines on one format is better than

presenting them singly.

The Exhibit is an example of a Gantt chart illustrating planned versus

actual progress as of the end of the seventh month. This project seems

in good shape.

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Now take a look at the other two pieces of the puzzle - the manpower-

loading chart and the cost line graph. This project is over utilising its

human resources and is substantially over budget.

Be warned! Using just one of these pieces will usually not give you the

full picture. One element by itself will give you a distorted picture at best

and may lull you into a false sense of optimism or make you overreact to

a issue without first understanding its cause. You should review all

baselines (cost, schedule, and human resources) and then backtrack the

issue to the area of responsibility where it is rooted.

Variance Analysis

The cost variance measures the combined cost of human resources,

equipment, services, and materials. These are often called labour,

material, other direct charges, and overhead. The schedule variance is

the measurement of work produced in a given calendar period. The cost

variance measures deviations from the budget, but it does not measure

the difference between work scheduled and work performed. The

schedule variance compares planned performance to actual

performance, but it does not measure cost. The manager needs a format

that includes both schedule and cost variances.

The most common project control approach uses three significant

elements in determining variance:

The Budgeted Cost of Work Scheduled (BCWS) - the amount

we planned to spend on work we planned to accomplish up to

the point where we took the measurement.

The Budgeted Cost of Work Performed (BCWP) - the amount

we planned to spend for the amount of work we have

accomplished up to this point.

The Actual Cost of Work Performed (ACWP) - the amount

we have actually spent on the work we have accomplished up

to this point.

Variances are calculated as follows:

Cost Variance = BCWP ACWP

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Schedule Variance = BCWP BCWS

ACWP

Estimate at Completion (EAC) = x Total Budget

BCWP

As data are collected for reporting purposes, the project manager needs

to spot trends as soon as possible. For that reason EAC calculations

should be done frequently on both budget and schedule figures. In order

to see both budget and schedule status, we need to perform calculations

on both dollars and hours.

Variances are translated as follows: If cost variance is positive, reflect an

over budget condition; if negative, reflect an under budget condition. If

schedule variance is positive, reflect more work completed than planned;

if negative, reflect less work completed than planned.

Multi-project Planning and Controlling

Multi-project planning and controlling is one of a manager’s first concerns

because he or she may be handling many projects at a time. Juggling

several projects simultaneously invariably leads to conflicting demands for

human resources. Questions such as the following should be considered:

Are more personnel needed to get all the projects completed

according to plan?

If more personnel aren’t available, how can the available

personnel be allocated intelligently?

Is adequate documentation available to help set (or modify)

project priorities?

Every one of the techniques that we have discussed could easily be

applied to multiple projects. For example, several projects are presented

on a network format. Analysing issues and determining solutions in this

manner is often the only way to track a project that has hundreds of tasks.

This can mean updating all tasks while monitoring only those that are

considered exceptions, or it can mean concentrating on the critical path,

the uncertainty path(s), milestone dates, tasks with high risks, tasks with

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no float time, tasks that have gone beyond their late start or late finish

dates, areas over or under utilising human resources, and/or cost

categories significantly over or under budget.

Another way to examine how time has been allocated is exemplified by

the consolidated Budget and or Gantt. The MOST chart could be another

alternative because it:

Allows available manpower to be compared with required manpower.

Compares actual against budgeted costs.

Determines the re-allocation of resources and manpower before the

schedule slips and/or funds exceed budget.

Compels you to answer the following questions:

1. What available resources can be utilised in one project?

2. What available resources can be shared?

3. What manpower and resources can be leveled without

jeopardising the schedule?

GLOSSARY

ACTIVITY A grouping of related tasks within a phase.

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ACTIVITY LIST Work sheet on which the interrelationships of

tasks are analysed.

BAR CHART Similar to the Gantt chart except bar symbols are

used instead of carets connected by lines.

BREAK-EVEN

ANALYSIS The relationship of the one-time development

costs to the recurring savings. In other words,

the number of months that must elapse before

the organisation’s initial outlay is “paid off.”

CENTRALISED

ORGANISATIONAL

STRUCTURE A team of individuals, specialising in managing

projects, banded together to serve the rest of the

organisation.

COST LINE GRAPH A translation of the data on the cost spreadsheet

onto a graph.

COST SPREADSHEET Work sheet on which categories of costs are

spread, period to date, by month. The

spreadsheet sets up the plan but also allows for

“actual” data.

CRITICAL PATH The longest path on any network. A

“management by exception” tool used to track a

project.

DUMMY ARROW A graphic technique, used in diagramming

networks, that indicates relationships between

activities.

FLOAT TIME The allocation of slack depicted on a calendar

chart. Calculated by subtracting early finish from

late finish.

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FUNCTIONAL

ORGANISATION

STRUCTURE `A special project leader reporting to one division

of the organisation does work only for that area

of responsibility.

GANTT CHARTGraph depicting the relationships of activities that appear

on the calendar (also shows interfaces).

HUMAN RESOURCES

MATRIX Chart that states which individual or area of

responsibility should perform which activity. The

matrix lists job responsibilities along the

horizontal axis and activities along the vertical

axis.

MANPOWER

LOADING CHART A translation of the human resources matrix onto

a schedule chart.

MATRIX

ORGANISATIONAL

STRUCTURE A project analyst is supported by a project

coordinator, who handles such administrative

concerns as scheduling. Any number of

representatives, from different functional areas,

request specific job-related requirements.

MILESTONE Completion of a project, phase, activity, or task.

MOST Managing Operations System Technique is an

approach to basic bar schedule charts that

includes human resources and costs.

NETWORK Graphic tool to help the project leader consider

relationships of activities.

ONE-TIME

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DEVELOPMENT

COSTS Initial outlay for the project. This is the figure that

will be tracked as the project evolves.

PERT NETWORKS Program Evaluation Review Technique is

developed in the same way as a network

diagram but three time estimates are considered:

optimistic, most likely, and pessimistic.

PHASE Largest logical grouping of related tasks within a

project.

PLAN Sequenced set of tasks aimed at producing a

desired result.

PLANNET Schedule chart combining the Gantt technique

with the PERT method of graphically depicting

interrelationships. Also allows for computation of

slack.

POLICY A broad guideline established by top

management. Policies have long lives and

require constant reinterpretation as to how they

apply to specific projects.

PROJECT

MANAGEMENT A set of principles, methods, and techniques for

effective planning and control.

PROJECT MANAGER Person responsible for planning, directing, and

controlling the project team’s efforts through the

completion of the project. The project manager

is accountable for accomplishing objectives

within budget and making sure they are

acceptable to the client.

PROJECT OBJECTIVE Quantified translation of project’s goals.

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RECURRING

COSTS/SAVINGS Will affect the annual operating expenses of the

organisation after the end product/service is

complete.

SLACK Extra time available for an activity at either

beginning or end.

TASK Smallest measurable unit of work resulting in a

predefined output.

TASK DURATION Number of calendar days scheduled for a person

to perform a task. Factors that must be

considered in determining task duration are time

for education, vacation, illness, and so forth.

TASK EFFORT Actual time planned for a person to perform a

task. Factors that must be considered in

determining the task effort are: experience of the

person who will perform the task, complexity of

the task, and so on.

TASK FORCE Representatives from functional areas dedicated

full time to providing an end product/service

specifically requested by top management.

UNCERTAINTY

OR VARIANCE PERT calculation determining activities of

greatest risk, calculated as follows:

tp - to2

O2 = O2 =uncertainty

WORK BREAKDOWN

Project Management


STRUCTURE (WBS) Dissection of a project into various levels - for

example, phases, activities, and tasks.

Developed on a checklist.

BIBLIOGRAPHY - Further Reading

BERGEN, S.A. PROJECT MANAGEMENT: An Introduction To Issues In

Industrial Research and Development.

BLELEND AND KING. PROJECT MANAGEMENT HANDBOOK.

DAVIS, EDWARD W., ED. PROJECT MANAGEMENT: Techniques,

Applications and Managerial Issues.

EINSIEDEL, ALBERT A., JR. IMPROVING PROJECT MANAGER: A

Self-Instructional Manager

GILBREATH, ROBERT D. WINNING AT PROJECT MANAGER: What

Works, What Fails and Why.

Project Management


GOODMAN, LOUIS J., AND RALPH N. LOVE, EDS. PROJECT

PLANNING AND MANAGEMENT: An Integrated Approach.

GRAHAM, ROBERT J. PROJECT MANAGEMENT: Combining

Technical and Behavioral Approaches for Effective Implementation.

HARRISON, F.L. ADVANCED PROJECT MANAGEMENT.

KERZNER, HAROLD. PROJECT MANAGEMENT: A Systems Approach

to Planning, Scheduling and Controlling .

LOCK, DENNIS. PROJECT MANAGEMENT

LUDWIG, ERNEST E. APPLIED PROJECT ENGINEERING AND

MANAGEMENT FOR THE PROCESS INDUSTRIES.

MORRIS, W.G., AND GEORGE H. HOUGH. THE ANATOMY OF

MAJOR PROJECTS: A study of the Reality of Project Management.

THUMANN, ALBERT. PROJECT MANAGEMENT FOR ENGINEERING

AND CONSTRUCTION.

VRIETHOFF, W., AND C. VISSER, EDS. PROJECT MANAGEMENT IN

PROGRESS: Tools and Strategies for the Nineties.

MARION HAYNES Project Management Crisp

MARTIN, TATE Project Management Goal/QPC

project management dr rovel shackleford v8 14072011

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