This document provides an overview of project management concepts including the project lifecycle, knowledge areas, and processes. It focuses on defining project scope and creating a work breakdown structure (WBS). Key points covered include defining the project scope through a scope statement, breaking the project into deliverable-oriented work packages in the WBS, and ensuring the WBS includes all project scope. The document emphasizes that properly defining scope and creating a WBS are critical early steps to help manage expectations and plan the remaining project work.
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Project Management
1. Project Management
Application and Concentration
BUS XXX - 3 Units
Fall 2012
Weekend 2 - Day 2
Project Management Certification – A Professional Commitment – A Responsibility
2. Reflecting on Last Class
• Foundations
o What is a project?
o What is Project Management?
o Process Groups / Knowledge Areas / Processes
o Project Lifecycle and its characteristics
o Organizational Structure
• Initiating
o Project Charter – Why is it important; ITTO?
o Identify Stakeholders – Why is this step important? ITTO?
• Planning
o Project Management Plan - Incorporates outputs from
all other planning processes
o Collect Requirements
• Knowing the right questions
• Knowing the right people
• ITTO?
Project Management Certification – A Professional Commitment – A Responsibility
3. Learning Objectives for Today
• Scope
o Recognize how to Define Scope, so we know what we are delivering
o Explain what is involved in Creating a WBS for project deliverables
• Time
o Explain the processes leading up to Develop Schedule
o Breakdown all tasks to determine what the team should work on
o Determine the dependencies and what can be worked on concurrently
o Determine what / who / how many to use by Estimating activity resources
o Assess how long activities will take by Estimating activity durations
o Compile analysis into a schedule to determine a “target date”
• Cost
o Estimate how much each activity will costs
• labor, service, equipment, and other items
o Aggregate all costs to determine funding requirements and determine if
scope needs adjustment when budget is a constraint
Project Management Certification – A Professional Commitment – A Responsibility
4. Weekend 2, Day 2 – Overview
Process Groups
Monitoring &
Initiating Planning Executing Closing
Controlling
Knowledge Areas
Develop Project Direct and Manage Monitor & Control Project Work, Close Project or
Integration Charter
Develop Project Management Plan
Project Execution Perform Integrated Change Control Phase
F o u n d a t i o n s o f Pr o j e c t M a n a g e m e n t
Collect Requirements,
Verify Scope,
Scope Define Scope,
Control Scope
Create WBS
Define Activities,
Sequence Activities,
Time Estimate Activity Resources, Control Schedule
Estimate Activity Durations,
Develop Schedule
Estimate Cost,
Cost Determine Budget
Control Cost
Perform Quality
Quality Plan Quality
Assurance
Perform Quality Control
Acquire Project Team,
Human Resource Develop Human Resources Plan Develop Project Team,
Manage Project Team
Distribute Information,
Identify
Communications Stakeholders
Plan Communications Manage Stakeholder Report Performance
Expectations
Plan Risk Management,
Identify Risks,
Risk Perform Qualitative Risk Analysis, Monitor and Control Risks
Perform Quantitative Risk Analysis,
Plan Risk Responses
Procurement Plan Procurements Conduct Procurements Administer Procurements Close Procurement
Project Management Certification – A Professional Commitment – A Responsibility
5. Five Questions - Class Exercise
Project Management Certification – A Professional Commitment – A Responsibility
7. Define Scope
- Overview
• What is Project Scope?
• Why is it important to Define Scope?
o Make sure everyone is on the right page
o Baseline for changes
• Who says what is in and what is out?
• What about open ended projects?
Project Management Certification – A Professional Commitment – A Responsibility
8. Define Scope
- PMBOK Process 5.2
Process Groups
Monitoring &
Initiating Planning Executing Closing
Controlling
Knowledge Areas
Develop Project Direct and Manage Monitor & Control Project Work, Close Project or
Integration Charter
Develop Project Management Plan
Project Execution Perform Integrated Change Control Phase
F o u n d a t i o n s o f Pr o j e c t M a n a g e m e n t
Collect Requirements,
Verify Scope,
Scope Define Scope,
Control Scope
Create WBS
Define Activities,
Sequence Activities,
Time Estimate Activity Resources, Control Schedule
Estimate Activity Durations,
Develop Schedule
Estimate Cost,
Cost Determine Budget
Control Cost
Perform Quality
Quality Plan Quality
Assurance
Perform Quality Control
Acquire Project Team,
Human Resource Develop Human Resources Plan Develop Project Team,
Manage Project Team
Distribute Information,
Identify
Communications Stakeholders
Plan Communications Manage Stakeholder Report Performance
Expectations
Plan Risk Management,
Identify Risks,
Risk Perform Qualitative Risk Analysis, Monitor and Control Risks
Perform Quantitative Risk Analysis,
Plan Risk Responses
Procurement Plan Procurements Conduct Procurements Administer Procurements Close Procurement
Project Management Certification – A Professional Commitment – A Responsibility
9. Define Scope
- Project vs. Product Scope
• Project Scope: measured against
project management plan
• Product Scope: measured against
product requirements
Project Management Certification – A Professional Commitment – A Responsibility
10. Define Scope
- Definition
1 2 3 1 2 3 4 1 2
• The process of developing a
detailed description of the project
and the product
• Defines what the project includes
and excludes
Project Management Certification – A Professional Commitment – A Responsibility
11. Define Scope
- Inputs
1 2 3
1) Project Charter
o High-Level project description and requirements
2) Requirements Documentation
o Primary document used for scope definition
3) Organizational Process Assets
Examples:
o Templates for a project scope statement
o Files from previous projects
o Lessons learned from previous projects
Project Management Certification – A Professional Commitment – A Responsibility
12. Define Scope
- Tools & Techniques
1 2 3 4
1) Expert Judgment
2) Product Analysis
o Product breakdown, system analysis, requirement analysis, systems
engineering, value engineering, and value analysis
o Only for projects that have a product as a deliverable
3) Alternative Identification
o A technique used to generate different approaches to execute the
project
o Brainstorming, Lateral Thinking, Pair wise comparison
4) Facilitated Workshops
o Cross-functional
Project Management Certification – A Professional Commitment – A Responsibility
13. Define Scope
- Outputs
1 2
1) Project Scope Statement
o Describes, in detail, project deliverables and work required to create
these deliverables
o Helps to create a common understanding among stakeholders (avoid
scope creep)
o Project team can perform detailed planning now
o Components
• Product Scope Description
• Product Acceptance Criteria
• Project Objectives
• Project Deliverables
• Project Exclusions
• Project Constraints
• Project Assumptions
Project Management Certification – A Professional Commitment – A Responsibility
14. Define Scope
- Moe’ Outputs
1 2
2) Project Document Updates
o Stakeholder Register
o Requirements documentation
o Requirements Traceability Matrix
o Etc.
Project Management Certification – A Professional Commitment – A Responsibility
15. Define Scope
- Top Reasons Why Projects Fail
• Unclear Project Objectives and Requirements
• Lack of Planning
• Scope Creep
• Lack of Stakeholder Involvement
• Gaps in Communication
• Resource Overload
• Etc.
Project Management Certification – A Professional Commitment – A Responsibility
16. Define Scope
- Data Flow Diagram
Project Management Certification – A Professional Commitment – A Responsibility
17. Define Scope
- Key Points
• Scope definition is a joint effort between Project
Manager , Project team, and business stakeholders
(though the Project Manager may be the one writing the Scope Statement)
• Scope Statement sets clear expectation and
establish the basis for future change requests
• Define Scope is a progressively elaborated process;
may be adjusted as more details become known
• A good idea to have Scope Statement approved
and published
• Scope Statement will later be used to measured
against to determine if the project has been
completed successfully
Project Management Certification – A Professional Commitment – A Responsibility
18. Define Scope
- Key Points
• Project constraints limit the options and restrict
project team’s actions: Time, Budget, Scope,
Quality, Schedule, Resource, Technology,
Management Directives
• Poorly written Scope Statement may lead to
increased cost, longer duration, deliverables that
do not meet business expectation, and ultimately
unsatisfied stakeholders.
• Meeting or exceeding stakeholder expectation
doesn’t mean gold-plating
Project Management Certification – A Professional Commitment – A Responsibility
20. Create Work Breakdown Structure
- Overview
• What is the purpose?
o More manageable components
• Key is to break it down
o Should include entire project scope
• Multiple approaches
o By Project Phases
o By Deliverables
o By Sub-projects
Project Management Certification – A Professional Commitment – A Responsibility
21. Create Work Breakdown Structure
- PMBOK Process 5.3
Process Groups
Monitoring &
Initiating Planning Executing Closing
Controlling
Knowledge Areas
Develop Project Direct and Manage Monitor & Control Project Work, Close Project or
Integration Charter
Develop Project Management Plan
Project Execution Perform Integrated Change Control Phase
F o u n d a t i o n s o f Pr o j e c t M a n a g e m e n t
Collect Requirements,
Verify Scope,
Scope Define Scope,
Control Scope
Create WBS
Define Activities,
Sequence Activities,
Time Estimate Activity Resources, Control Schedule
Estimate Activity Durations,
Develop Schedule
Estimate Cost,
Cost Determine Budget
Control Cost
Perform Quality
Quality Plan Quality
Assurance
Perform Quality Control
Acquire Project Team,
Human Resource Develop Human Resources Plan Develop Project Team,
Manage Project Team
Distribute Information,
Identify
Communications Stakeholders
Plan Communications Manage Stakeholder Report Performance
Expectations
Plan Risk Management,
Identify Risks,
Risk Perform Qualitative Risk Analysis, Monitor and Control Risks
Perform Quantitative Risk Analysis,
Plan Risk Responses
Procurement Plan Procurements Conduct Procurements Administer Procurements Close Procurement
Project Management Certification – A Professional Commitment – A Responsibility
22. Create Work Breakdown Structure
- Definition
• Definition: Deliverable – oriented hierarchical
decomposition of the work to accomplish the
project objectives and create required deliverables
• Includes total scope of the project
• Top down effort
• Lowest Level = Work package, which can be
scheduled, cost estimated, monitored, and
controlled
• Shall be revised if a major scope change occurs
Project Management Certification – A Professional Commitment – A Responsibility
23. Create Work Breakdown Structure
- Definition
1 2 3 1 1 2 3 4
Project Management Certification – A Professional Commitment – A Responsibility
24. Create Work Breakdown Structure
- Inputs
1 2 3
1) Project Scope Statement
o All the deliverables and work to create them
o What type of work is not included
2) Requirements Documentation
3) Organization Process Assets
o Policies, procedures, and templates for the WBS
o Project files from previous projects
o Lessons learned from previous projects
Project Management Certification – A Professional Commitment – A Responsibility
25. Create Work Breakdown Structure
- Tools & Techniques
1
1) Decomposition – Sample 5-step process
a) Identify the deliverables and work
b) Organize the WBS; structure can be organized by
- Phases
- Major deliverables
- Subprojects (e.g. contracted work)
c) Decompose the WBS into low-level components
d) Assign identification codes
e) Verify WBS
Project Management Certification – A Professional Commitment – A Responsibility
26. Create Work Breakdown Structure
- Decomposition Guidelines
1
• Not a task list; excessive decomposition can have a
detrimental effect by making WBS overly complex,
confusing to view, and difficult to maintain
• Rule of thumb for how far to break it down is to get
to 8-80 hours of work per package
• 100% Rule: Total of lowest levels must represents the
total work of the project to ensure no work is left out
or no extra work is added
Project Management Certification – A Professional Commitment – A Responsibility
27. Create Work Breakdown Structure
- Outputs
1 2 3 4
1) The Work Breakdown Structure (WBS) itself
• WBS is finalized by establishing control accounts for
the work packages and a unique identifier from a
code of accounts
• Control Account - a management control point
where scope, cost, and schedule are integrated
and compared to the earned value
• Each control account may have more than one
work package but one work package shall only be
linked to one control account
Project Management Certification – A Professional Commitment – A Responsibility
28. Create Work Breakdown Structure
- Outputs
1 2 3 4
2) WBS Dictionary
o Code of account identifier
o Description of work
o Responsible person(s) or organization
o List of schedule milestones
o Resource and quality requirements
o Cost estimates
o Acceptance criteria
o Contract info and technical references
3) Scope Baseline
o Part of Project Management Plan
o Consists of
• Scope Statement
• WBS
• WBS Dictionary
4) Project Document Updates
o Requirements documentation, etc.
Project Management Certification – A Professional Commitment – A Responsibility
29. Create Work Breakdown Structure
- Sample Diagram
Project Management Certification – A Professional Commitment – A Responsibility
30. Create Work Breakdown Structure
- by Project Phases
Project Management Certification – A Professional Commitment – A Responsibility
31. Create Work Breakdown Structure
- by Major Deliverables
Project Management Certification – A Professional Commitment – A Responsibility
32. Create Work Breakdown Structure
- Data Flows
Project Management Certification – A Professional Commitment – A Responsibility
33. Create Work Breakdown Structure
- Key Points
• WBS is a deliverable-oriented structure
• Work Package is the lowest level on WBS. Activities
and tasks are not included in the WBS.
• WBS should include 100% of the project scope
• WBS Levels: Project Name = Level 1, Deliverables =
Level 2
• Scope Baseline includes Scope Statement, WBS,
and WBS Dictionary
Project Management Certification – A Professional Commitment – A Responsibility
35. Define Activities
- Overview
• What’s the Purpose?
o Further decompose the Work Packages into schedule activities as basis
for estimating, scheduling, and monitoring
o Working towards creating a project schedule
• In what order should it be done – next steps
o Define Activity
o Sequence Activity
o Estimate Activity Resource
o Estimate Activity Duration
o Develop Schedule
Project Management Certification – A Professional Commitment – A Responsibility
36. Define Activities
- PMBOK Process 6.1
Process Groups
Monitoring &
Initiating Planning Executing Closing
Controlling
Knowledge Areas
Develop Project Direct and Manage Monitor & Control Project Work, Close Project or
Integration Charter
Develop Project Management Plan
Project Execution Perform Integrated Change Control Phase
F o u n d a t i o n s o f Pr o j e c t M a n a g e m e n t
Collect Requirements,
Verify Scope,
Scope Define Scope,
Control Scope
Create WBS
Define Activities,
Activities
Sequence Activities,
Time Estimate Activity Resources, Control Schedule
Estimate Activity Durations,
Develop Schedule
Estimate Cost,
Cost Determine Budget
Control Cost
Perform Quality
Quality Plan Quality
Assurance
Perform Quality Control
Acquire Project Team,
Human Resource Develop Human Resources Plan Develop Project Team,
Manage Project Team
Distribute Information,
Identify
Communications Stakeholders
Plan Communications Manage Stakeholder Report Performance
Expectations
Plan Risk Management,
Identify Risks,
Risk Perform Qualitative Risk Analysis, Monitor and Control Risks
Perform Quantitative Risk Analysis,
Plan Risk Responses
Procurement Plan Procurements Conduct Procurements Administer Procurements Close Procurement
Project Management Certification – A Professional Commitment – A Responsibility
37. Define Activities
- Definition
1 2 3 1 2 3 4 1 2 3
• The process of identifying the specific actions to be
performed
• Project Deliverables Work Packages (WBS)
Activities
Project Management Certification – A Professional Commitment – A Responsibility
38. Define Activities
- Inputs
1 2 3
1) Scope Baseline
o Deliverables, constraints, and assumptions
2) Enterprise Environmental Factors
o Project Management Information System used will affect the definition
3) Organizational Process Assets
o Existing formal and informal policies, procedures, and guidelines (e.g.
Scheduling methodology)
o Lessons learned/knowledge base from historical information
Project Management Certification – A Professional Commitment – A Responsibility
39. Define Activities
- Tools & Techniques
1 2 3 4
1) Decomposition
o Involving teams in decomposition can lead to more accurate results
2) Rolling Wave Planning
o A progressive elaboration process where near-term activities are in great
detail and longer-term activities are at a high level
3) Templates
o Organizational standard Activity List or Activity List from previous projects
o Can also be used to identify typical schedule milestones
4) Expert Judgment
Project Management Certification – A Professional Commitment – A Responsibility
40. Define Activities
- Outputs
1 2 3
1) Activity List (or Task List)
o Detailed list of all activities required to complete the project
2) Activity Attributes
o Further defines the activity, such as Activity ID, WBS ID, activity name and
description, predecessor, successor, leads and lags, person responsible,
resource requirements, constraints, assumptions, level of effort, etc.
o Activity attributes are used for schedule development and for selecting,
ordering, and sorting the planned schedule activities in various ways
within reports
3) Milestone List
o A list of significant points in a project
Project Management Certification – A Professional Commitment – A Responsibility
41. Create Work Breakdown Structure
- Sample Milestone List
August September October
Activity Aug 13 - 17 Aug 20 - 24 Aug 27 - 31 Sep 3 - 7 Sep 10 - 14 Sep 17 - 21 Sep 24 - 28 Oct 1 - 5 Oct 8 - 12
Offer Code Setup and BOM 8/24
Forecast Mix 8/24
Packaging Design/Approval
Packaging Arrived at FFC 9/10
Collateral Arrived at FFC 9/10
Assembly Specs 8/31
Call Routing and Training 9/14
IBTM and Testing Setup 9/14
Web Creative 9/5
Web Development 9/12
Web Dependency Project 9/12
Complete
Web QA Ready 9/14
Web Brand Setup
Web End to End Testing 9/20
Merchant ID Setup 9/5
9/10
FFC Brand Setup
Planning Release 9/10
Filled Intermediate Arrived at
FFC 9/21
Kit Assembly
9/7
QA Audit and Compliance
QA Quality Agreement 9/14
Launch 9/24
Project Management Certification – A Professional Commitment – A Responsibility
42. Define Activities
- Data Flows
Project Management Certification – A Professional Commitment – A Responsibility
43. Define Activities
- Key Points
• Define Activity process uses Scope Baseline as the
primary input
• WBS is further decomposed
• Activity Lists, Activity Attributes and Milestone Lists
are the outputs
• May be progressive elaboration process
• Rolling Wave Planning = define near-term work in
greater detail than future work
Project Management Certification – A Professional Commitment – A Responsibility
45. Sequence Activities
- Overview
• Determine logical dependencies
• Determine what can be done concurrently
Project Management Certification – A Professional Commitment – A Responsibility
46. Sequence Activities
- PMBOK Process 6.2
Process Groups
Monitoring &
Initiating Planning Executing Closing
Controlling
Knowledge Areas
Develop Project Direct and Manage Monitor & Control Project Work, Close Project or
Integration Charter
Develop Project Management Plan
Project Execution Perform Integrated Change Control Phase
F o u n d a t i o n s o f Pr o j e c t M a n a g e m e n t
Collect Requirements,
Verify Scope,
Scope Define Scope,
Control Scope
Create WBS
Define Activities,
Sequence Activities,
Time Estimate Activity Resources, Control Schedule
Estimate Activity Durations,
Develop Schedule
Estimate Cost,
Cost Determine Budget
Control Cost
Perform Quality
Quality Plan Quality
Assurance
Perform Quality Control
Acquire Project Team,
Human Resource Develop Human Resources Plan Develop Project Team,
Manage Project Team
Distribute Information,
Identify
Communications Stakeholders
Plan Communications Manage Stakeholder Report Performance
Expectations
Plan Risk Management,
Identify Risks,
Risk Perform Qualitative Risk Analysis, Monitor and Control Risks
Perform Quantitative Risk Analysis,
Plan Risk Responses
Procurement Plan Procurements Conduct Procurements Administer Procurements Close Procurement
Project Management Certification – A Professional Commitment – A Responsibility
47. Sequence Activities
- Definition
1 2 3 4 5 1 2 3 4 1 2
• Process of identifying and documenting
relationships among project activities
Project Management Certification – A Professional Commitment – A Responsibility
48. Sequence Activities
- Inputs
1 2 3 4 5
1) Activity List
2) Activity Attributes
3) Milestone List
4) Project Scope Statement
o As double-check
5) Organizational Process Assets
o Example: Previous Project File
Project Management Certification – A Professional Commitment – A Responsibility
49. Sequence Activities
- Tools & Techniques
1 2 3 4
1) Precedence Diagramming Method (PDM)
o A method used in Critical Path Methodology (CPM) to build a
network diagram showing activity dependencies
o Also known as activity on node (AON)
• FYI - Arrow Diagramming Method (ADM)
o A.K.A. Activity on Arrow (AOA) Network Diagram
o Activities are represented by arrows; Nodes or circles are the starting and
ending points of activities.
o Only use Finish to Start dependency
o Sometimes dummy activities must be inserted to accurately reflect
dependency
o Rarely used now
Project Management Certification – A Professional Commitment – A Responsibility
50. Sequence Activities
- Tools & Techniques
1 2 3 4
• Four types of PDM relationships
o Finish-to-start (FS): A must finish before B can start;
sequential, most common
o Finish-to-finish (FF): A must finish before B can finish
o Start-to-start (SS): A must start before B can start
o Start-to-finish (SF): A must start before B can finish; rarely used
Project Management Certification – A Professional Commitment – A Responsibility
51. Sequence Activities
- Tools & Techniques
1 2 3 4
2) Dependency Determination
o Mandatory (hard): Contractually required, physical limitations, etc.
o Discretionary (soft): Preferred logic; only type PM has control over
o External: outside the project team’s control
Project Management Certification – A Professional Commitment – A Responsibility
52. Sequence Activities
- Tools & Techniques
1 2 3 4
3a) Lead
o Starting work before the preceding activity finishes
o allows acceleration of the schedule (fast-track)
• ex 1: Start loading moving truck one day before packing finishes
• Although possible to use lead with SS, difficult to understand
Project Management Certification – A Professional Commitment – A Responsibility
53. Sequence Activities
- Tools & Techniques
1 2 3 4
3b) Lag: Delay
o Example 1. Start honeymoon one day after the ceremony; wait one day
for concrete to gain strength before putting on patio furniture
o Example 2. QA team can start testing two days after Dev team starts dev
o Leads and Lags can be applied to all four types of PDM relationships,
although Leads are not common with SS, FF, and SF
4) Schedule Network Templates
Project Management Certification – A Professional Commitment – A Responsibility
54. Sequence Activities
- Outputs
1 2
1) Schedule Network Diagram
A C D
B
2) Project Document Updates may include
o Activity List
o Activity Attributes
o Risk Register
Project Management Certification – A Professional Commitment – A Responsibility
55. Sequence Activities
- Data Flows
Project Management Certification – A Professional Commitment – A Responsibility
56. Sequence Activities
- Key Points
• Sequence Activity: Tools and Techniques include
Dependency Determination, PDM, Apply Leads and
Lags, and Schedule Network Templates
• Precedence Diagram Method (PDM or AON) has
four types of logical relationships: FS, FF, SS, SF
• Three types of PDM dependencies: Hard, Soft,
External. Soft dependency is the only type Project
Manager has control over.
• Key output is Schedule Network Diagrams
Project Management Certification – A Professional Commitment – A Responsibility
57. Estimate Activity
Resources
Project Management Certification – A Professional Commitment – A Responsibility
58. Estimate Activity Resources
- Overview
• What’s the purpose
o Determine the type and quantity of resource needed
o Resources include people, equipment, material, hardware, software, etc.
• What they don’t teach you in Kindergarten
o Anything!
Project Management Certification – A Professional Commitment – A Responsibility
59. Estimate Activity Resources
- PMBOK Process 6.3
Process Groups
Monitoring &
Initiating Planning Executing Closing
Controlling
Knowledge Areas
Develop Project Direct and Manage Monitor & Control Project Work, Close Project or
Integration Charter
Develop Project Management Plan
Project Execution Perform Integrated Change Control Phase
F o u n d a t i o n s o f Pr o j e c t M a n a g e m e n t
Collect Requirements,
Verify Scope,
Scope Define Scope,
Control Scope
Create WBS
Define Activities,
Sequence Activities,
Time Estimate Activity Resources, Control Schedule
Estimate Activity Durations,
Develop Schedule
Estimate Cost,
Cost Determine Budget
Control Cost
Perform Quality
Quality Plan Quality
Assurance
Perform Quality Control
Acquire Project Team,
Human Resource Develop Human Resources Plan Develop Project Team,
Manage Project Team
Distribute Information,
Identify
Communications Stakeholders
Plan Communications Manage Stakeholder Report Performance
Expectations
Plan Risk Management,
Identify Risks,
Risk Perform Qualitative Risk Analysis, Monitor and Control Risks
Perform Quantitative Risk Analysis,
Plan Risk Responses
Procurement Plan Procurements Conduct Procurements Administer Procurements Close Procurement
Project Management Certification – A Professional Commitment – A Responsibility
60. Estimate Activity Resources
- Definition
1 2 3 4 5 1 2 3 4 5 1 2 3
• The process of estimating the type and quantity of
material, people, equipment, or supplies required to
perform each activity
• Closely coordinated with Estimate Costs process
Project Management Certification – A Professional Commitment – A Responsibility
61. Estimate Activity Resources
- Inputs
1 2 3 4 5
1) Activity List
2) Activity Attributes
3) Resource Calendars
o Output of “Acquire Team” in Executing progress group
4) Enterprise Environmental Factors
5) Organizational Process Assets
Project Management Certification – A Professional Commitment – A Responsibility
62. Estimate Activity Resources
- Tools and Techniques
1 2 3 4 5
1) Expert Judgment
2) Alternatives Analysis
o Examples: resource skill levels, size and type of machinery,
different tools and make-or-buy decisions
3) Published Estimating Data
o Examples: labor trades, material and equipment within the country and in
other countries
Project Management Certification – A Professional Commitment – A Responsibility
63. Estimate Activity Resources
- Tools and Techniques
1 2 3 4 5
4) Bottom-up Estimating
o If an activity cannot be confidently estimated, it is broken down
to smaller parts for estimation; the estimates are then aggregated
up to the activity level (PMBOK preferred method)
5) PM Software
o Examples: Primavera, MS Project, Clarity, etc.
o Number of Resources usually influence activity duration; in some
cases, having two resources will cut duration in half, in other
cases it will not
Project Management Certification – A Professional Commitment – A Responsibility
64. Estimate Activity Resources
- Outputs
1 2 3
1) Activity Resource Requirements
o Identifies the types and quantities of resources required for each activity
in a work package
2) Resource Breakdown Structure
o Hierarchical structure of the identified resources by resource category
and resource type
o Includes labor, materials, equipment, supplies, etc.
Software Project A
Server Developers Business Analyst Testers Trainer
Database UI
Technical Business
Developer Developer
Tester Users
3) Project Document Updates
o May include: Activity List, Activity Attributes, Resource Calendars
Project Management Certification – A Professional Commitment – A Responsibility
65. Sequence Activities
- Data Flows
Project Management Certification – A Professional Commitment – A Responsibility
66. Estimate Activity Resources
- Key Points
• You should have paid attention in Kindergarten!
• The two processes that consider alternatives are
Define Scope and Estimate Activity Resources
• Bottom-up estimating performs estimates for each
activity and rolls them up to higher levels
Project Management Certification – A Professional Commitment – A Responsibility
67. Estimate Activity
Durations
Project Management Certification – A Professional Commitment – A Responsibility
68. Estimate Activity Durations
- Overview
• “How long will it take?”
Project Management Certification – A Professional Commitment – A Responsibility
69. Estimate Activity Durations
- PMBOK Process 6.4
Process Groups
Monitoring &
Initiating Planning Executing Closing
Controlling
Knowledge Areas
Develop Project Direct and Manage Monitor & Control Project Work, Close Project or
Integration Charter
Develop Project Management Plan
Project Execution Perform Integrated Change Control Phase
F o u n d a t i o n s o f Pr o j e c t M a n a g e m e n t
Collect Requirements,
Verify Scope,
Scope Define Scope,
Control Scope
Create WBS
Define Activities,
Sequence Activities,
Time Estimate Activity Resources, Control Schedule
Estimate Activity Durations,
Develop Schedule
Estimate Cost,
Cost Determine Budget
Control Cost
Perform Quality
Quality Plan Quality
Assurance
Perform Quality Control
Acquire Project Team,
Human Resource Develop Human Resources Plan Develop Project Team,
Manage Project Team
Distribute Information,
Identify
Communications Stakeholders
Plan Communications Manage Stakeholder Report Performance
Expectations
Plan Risk Management,
Identify Risks,
Risk Perform Qualitative Risk Analysis, Monitor and Control Risks
Perform Quantitative Risk Analysis,
Plan Risk Responses
Procurement Plan Procurements Conduct Procurements Administer Procurements Close Procurement
Project Management Certification – A Professional Commitment – A Responsibility
70. Estimate Activity Durations
- Definition
• The process of estimating the number of work
periods needed to complete each activity with
estimated resources
• The duration estimate is progressively elaborated
• In the real world, level of efforts (LOE) are estimated
first and are used to calculate duration based on
resource availability(80 hours / 0.5 head count = 160
hours or 4 weeks of duration)
Project Management Certification – A Professional Commitment – A Responsibility
71. Estimate Activity Durations
- Definition
1 2 3 4 5 6 7 1 2 3 4 5 1 2
Project Management Certification – A Professional Commitment – A Responsibility
72. Estimate Activity Durations
- Inputs
1 2 3 4 5 6 7
1) Activity List
o Comprehensive List of all Scheduled Activities
2) Activity Attributes
o Identifies multiple components associated with each activity
3) Activity Resource Requirements
o Resources assigned and availability of those resources have a
significant effect on an activity’s duration
4) Resource Calendars
o Type, Availability, & Capability of Human Resources (Sr. versus Jr.)
o Type, Availability, & Capability of Equipment & Material Resources
also affect duration
Project Management Certification – A Professional Commitment – A Responsibility
73. Estimate Activity Durations
- Inputs
1 2 3 4 5 6 7
5) Project Scope Statement
o Assumptions regarding Existing Conditions, Information availability, and
Length of Reporting periods
o Constraints of available resources and Contract Terms & Requirements
6) Enterprise Environmental Factors
o Duration Estimating databases
o Productivity Metrics
o Published Commercial Information
7) Organizational Process Assets
o Historical Duration Information
o Product Calendars
o Scheduling Methodology
o Lessons Learned
Project Management Certification – A Professional Commitment – A Responsibility
74. Estimate Activity Durations
- Tools and Techniques
1 2 3 4 5
1) Expert Judgment
o Team members who will perform activities will most
accurately estimate them
2) Analogous Estimating – lower accuracy
o Use a similar previous project as a reference and adjust for known
differences; Top-down approach relying on historical information
and expert judgment
o Can be used on activity duration or total project duration
o Less costly, less time-consuming less accurate;
useful at early project stage
3) Parametric Estimating – higher accuracy
o Uses statistical relationship between historical data and other
variables to quantitatively determine duration (= total units of
work * labor hours per unit)
Project Management Certification – A Professional Commitment – A Responsibility
75. Estimate Activity Durations
- Tools and Techniques
1 2 3 4 5
4) Three-Point Estimates (PERT) – higher accuracy
o Expected Duration = [Optimistic + (4 x Most Likely) +
Pessimistic] / 6
o Weighted Average
5) Reserve Analysis
o Contingency reserves / time reserves / buffers to account
for schedule uncertainty
o A % or a fixed number of work periods
Project Management Certification – A Professional Commitment – A Responsibility
76. Estimate Activity Durations
- Calculations
• Class Exercise
o Best case = 18 days, Most Likely = 25 days, Worse Case = 38 days
o Assume 1 Sigma unless specified otherwise
• Calculate the following
o PERT or Expected Duration
o Activity Standard Deviation = (Pessimistic – Optimistic) / 6
o Range of Estimates = Expected Duration +/- Standard Deviation
• Range needs to be widened if 2 Sigma (range = Expected Duration
+/- Standard Deviation x 2)
• FYI:
o 1 Sigma = 68.3% confidence
o 2 Sigma = 95.4% confidence
o 3 Sigma = 99.7% confidence
On this chart of a 'normal' distribution, showing the classic 'bell curve' shape,
the mean (or average) is the vertical line at the center, and the vertical lines to
either side represent intervals of one, two and three sigma. The percentage of
data points that would lie within each segment of that distribution are shown.
Project Management Certification – A Professional Commitment – A Responsibility
77. Estimate Activity Durations
- Results
• Class Exercise
o Best case = 18 days, Most Likely = 25 days, Worse Case = 38 days
o Assume 1 Sigma unless specified otherwise
• Calculate the following
o PERT or Expected Duration
= [Optimistic + (4 x Most Likely) + Pessimistic] / 6
= (18 + 25x4 + 38)/6 = 26
o Activity Standard Deviation
= (Pessimistic – Optimistic) / 6
= (38-18)/6 =3.33
o Range of Estimates
= Expected Duration +/- Standard Deviation
= 26 +/- 3.33 = between 22.67 days and 29.33 days
• if 2 Sigma (range = Expected Duration +/- Standard Deviation x 2)
= 26 +/- 3.33x2 = between 19.34 to 32.66
Project Management Certification – A Professional Commitment – A Responsibility
78. Estimate Activity Durations
- Outputs
1 2
1) Activity Duration Estimates
o Estimated time to complete each activity
o Duration = Effort / Resources
o This can be a range
2) Project Document Updates
o Activity attributes, Assumptions Log (e.g. skill level and availability)
Project Management Certification – A Professional Commitment – A Responsibility
79. Estimate Activity Durations
- Data Flows
Project Management Certification – A Professional Commitment – A Responsibility
80. Estimate Activity Durations
- Key Points
• Analogous estimating is top-down approach and
less accurate
• Parametric estimating calculates duration/cost
based on duration/cost per unit x total units.
Duration/cost per unit can be from historical data.
• PERT calculates a weighted average estimate by
using optimistic, mostly likely, and pessimistic
estimates.
• Activity duration estimates include number of work
periods including elapsed time.
Project Management Certification – A Professional Commitment – A Responsibility
82. Develop Schedule
- Overview
• Why is it important?
• Which time-related processes have been
completed so far before building the schedule?
Project Management Certification – A Professional Commitment – A Responsibility
83. Develop Schedule
- PMBOK Process 6.5
Process Groups
Monitoring &
Initiating Planning Executing Closing
Controlling
Knowledge Areas
Develop Project Direct and Manage Monitor & Control Project Work, Close Project or
Integration Charter
Develop Project Management Plan
Project Execution Perform Integrated Change Control Phase
F o u n d a t i o n s o f Pr o j e c t M a n a g e m e n t
Collect Requirements,
Verify Scope,
Scope Define Scope,
Control Scope
Create WBS
Define Activities,
Sequence Activities,
Time Estimate Activity Resources, Control Schedule
Estimate Activity Durations,
Develop Schedule
Estimate Cost,
Cost Determine Budget
Control Cost
Perform Quality
Quality Plan Quality
Assurance
Perform Quality Control
Acquire Project Team,
Human Resource Develop Human Resources Plan Develop Project Team,
Manage Project Team
Distribute Information,
Identify
Communications Stakeholders
Plan Communications Manage Stakeholder Report Performance
Expectations
Plan Risk Management,
Identify Risks,
Risk Perform Qualitative Risk Analysis, Monitor and Control Risks
Perform Quantitative Risk Analysis,
Plan Risk Responses
Procurement Plan Procurements Conduct Procurements Administer Procurements Close Procurement
Project Management Certification – A Professional Commitment – A Responsibility
84. Develop Schedule
- Definition
1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 1 2 3 4
• Process of analyzing sequences,
durations, resources requirements,
and schedule constraints to create
the project schedule
• Iterative process (schedule
baseline vs. schedule revision)
Project Management Certification – A Professional Commitment – A Responsibility
86. Develop Schedule
- Tools and Techniques
1 2 3 4 5 6 7 8
1) Schedule Network Analysis
o Employs various analytical techniques, such as critical path
method, critical chain method, what-if analysis, and resource
leveling
2) Critical Path Method (CPM)
o A Schedule Network Analysis technique used to determine the
schedule flexibility and determine the minimum project duration
o Calculates the theoretical start and finish dates by using a
forward pass and backward pass analysis;
o No consideration of resource limitations
3) Critical Chain Method
o Critical Path Method + Resource constraints + Schedule Buffers
Project Management Certification – A Professional Commitment – A Responsibility
87. Develop Schedule
- Tools and Techniques
1 2 3 4 5 6 7 8
4) Resource Leveling
o A schedule network analysis technique applied to a schedule
after critical path method
o Necessary when required resources are over-allocated; often
lets the schedule slip to smooth out resources
o Can cause original Critical Path to change
5) What-if Scenario Analysis
o Change conditions to simulate different possible scenarios
o A schedule network analysis is performed
o Monte Carlo Analysis: Random and iterative computer model
showing probability distributions
Project Management Certification – A Professional Commitment – A Responsibility
88. Develop Schedule
- Tools and Techniques
1 2 3 4 5 6 7 8
6) Apply Leads and Lags
o Leads – head start
o Lags – delay, time elapses
7) Schedule Compression
o Shortens schedule with no change to project scope
o Crashing: exchange higher costs for shorter schedule duration
(eg. Add resources)
o Fast tracking: converts sequential activities to parallel
8) Scheduling Tool
o Example: MS Project, Primavera P6
Project Management Certification – A Professional Commitment – A Responsibility
89. Develop Schedule
- Critical Path Method (ES, EF, LF, LS)
1 2 3 4 5 6 7 8
Forward Pass Forward Pass
1. EF = ES + Duration
2. ES of successor tasks = latest EF of predecessor tasks
ES = 0 EF = 3
Backward Pass
Task A 1. LS = LF – Duration
Duration = 3 days 2. LF of predecessor tasks = earliest LS of successor tasks
LS = 2 LF = 5 ES = 5 EF = 20
Task D
ES = 0 EF = 5 Duration = 15 days
Task B LS = 5 LF = 20 ES = 20 EF = 26
Duration = 5 days
Task F
LS = 0 LF = 5 Duration = 6 days
EF = 10 LS = 20 LF = 26
ES = 0 ES = 10 EF = 15
Task C Task E
Backward Pass
Duration = 10 days Duration = 5 days
LS = 5 LF = 15 LS = 15 LF = 20
Note: Critical Path represents the path of the activities with the longest duration
throughout the network diagram.
Project Management Certification – A Professional Commitment – A Responsibility
90. Develop Schedule
- Critical Path Method (ES, EF, LF, LS)
1 2 3 4 5 6 7 8
• ES / EF (Forward-Pass)
o Estimated Start / Estimated Finish
• EF = ES + Activity Duration
• ES of Successor tasks = latest EF of Predecessor tasks
• LF / LS (Backward-Pass)
o Latest Finish / Latest Start
• LS = LF - Activity Duration
• LF of Predecessor tasks = earliest LS of Successor tasks
Project Management Certification – A Professional Commitment – A Responsibility
91. Develop Schedule
- Critical Path Method (Float)
1 2 3 4 5 6 7 8
1. Float (AKA free float, slack) = LF – EF. The amount of
Forward Pass time a task can be delayed without affecting
successor’s earliest start.
2. Total Float = The total amount of time that a schedule
ES = 0 EF = 3 activity may be delayed from its early start date
without the project finish date or violating a schedule
Task A Float = 2 constraint
Duration = 3 days 3. The critical path is the path that has Total Float = 0
4. Any delays along the critical path will delay the entire
LS = 2 LF = 5 ES = 5 EF = 20 project
5. The tasks that have float > 0 can be delayed maximum
Task D Float = 0 by the amount of the float without delaying the project
ES = 0 EF = 5 Duration = 15 days
Task B LS = 5 LF = 20 ES = 20 EF = 26
Duration = 5 days Float = 0
Task F
LS = 0 LF = 5 Float = 0
Duration = 6 days
EF = 10 LS = 20 LF = 26
ES = 0 ES = 10 EF = 15
Task C Float = 5 Task E
Float = 5 Backward Pass
Duration = 10 days Duration = 5 days
LS = 5 LF = 15 LS = 15 LF = 20
What’s the total float of C-E-F?
Project Management Certification – A Professional Commitment – A Responsibility
92. Develop Schedule
- Critical Path Method (Float)
1 2 3 4 5 6 7 8
• Float (AKA free float, slack) = LF – EF. Amount of time a
task can be delayed without affecting successor’s
earliest start.
• Total Float = Total amount of time that a schedule
activity may be delayed from its early start date without
the project finish date or violating a schedule constraint
• The critical path is the path that has Total Float = 0
• Any delays along the critical path will delay the entire
project
• The tasks that have float > 0 can, at the most, be
delayed by the amount of the float without delaying the
project
Project Management Certification – A Professional Commitment – A Responsibility
93. Develop Schedule
- Class Activity 1 – CPM
1 2 3 4 5 6 7 8
Forward Pass
ES = 0 EF = 5
Task A Float = 8
Duration = 5 days
LS = 8 LF = 13 ES = 10 EF = 13
Task D Float = 3
ES = 0 EF = 10 Duration = 3 days
Task B LS = 13 LF = 16 ES = 16 EF = 31
Duration = 10 days Float = 3
Task F
LS = 3 LF = 13 Float = 0
Duration = 15 days
EF = 8 LS = 16 LF = 31
ES = 0 ES = 8 EF = 16
Task C Float = 0 Task E
Float = 0 Backward Pass
Duration = 8 days Duration = 8 days
LS = 0 LF = 8 LS = 8 LF = 16
- Calculate the ES, EF, LS, and LF
- Calculate Floats
- Identify the Critical Path
Project Management Certification – A Professional Commitment – A Responsibility
Notes de l'éditeur
Project LifecycleInitiation – Starting the projectPlanning – Organizing and PreparingExecution – Carrying out the workClosure – Deliverables accepted and project is archivedCharacteristics: As time passes… stakeholder influence, risk and uncertainly goes down; cost of changes goes upOrg StructureFunctional, Weak Matrix, Balanced Matrix, Strong Matrix, Project-ized
Emphasize the order of the 5 processes within “Time”
When you are on a good project team, a word you will hear a lot is “Scope”. I have also see a lot of projects being executed with no clear scope definition. There are a lot of undocumented assumptions, leaving a lot of things up for individual’s interpretations. Example: you are being asked to deliver a website for a product. Do we know what the end-result should look like?Is it just a website for information display? Need to have a shopping cart? Any reports needed to track how many people visited the site but did not order?Open-ended “projects”: it never ends! And people don’t even know what we are supposed to do, and why we are working on it any more.
You are bring a new cell phone to the market:Product scope: example, a cell phone needs to have the case, the buttons, the electronic system, the antena, the ability to make and receive phone calls.Project scope: the cell phone, marketing campaigns, initial setup of distribution channel, etc.
Lateral Thinking: Thinking outside the boxPuzzle 1: A man marries twenty women in his neighborhoodbut isn't charged with polygamy.Puzzle 2: A man is alone on an island with no food and no water, yet he does not fear for his life.Puzzle 3: A horse jumps over a tower and lands on a man, who disappears.Pairwise comparison generally refers to any process of comparing entities in pairs to judge which of each entity is preferred based on pre-determind criteria.Making decisions requires comparing alternatives using a set of criteria. If there are more than two criteria, you need to rank the criteria by importanceExample:Planning a Vacation: to determine your vacation destination (vegas or Hawaii?). Your criteria might be cost, family-friendliness, quality of the locations, travel time. Which one of these is most important? How can you plan your vacation to optimize your enjoyment?
scope statement - Progressive elaboration process. Still early in the planning process. Scope will be refined later on.Exclusion: same Website example, “this website will not provide email subscription functionality”Constraints: Time, Budget, Scope, Quality, Schedule, Resource, Technology, Directive Need to differentiate whether it’s real time constraint. *Example of Time Constraint: deadline of 1/28/2013 for new USPS barcode system; not a time constraint “we need to launch the product on 9/9 because we are planning to advertise on that day” *Example of Technology Constraint: want to store 10 years of transaction history, but don’t have enough storage space; wanted to target 25 year old who have a pet, but not having the data;Deliverables and Requirements that must be completed are referred to as Critical Success Factors
What is scope creep? Uncontrolled expansion of project scope outside of the planned objectives, in other words, adding features and functionality (project scope) without addressing the effects on time, costs, and resources, or without customer approval.Example of scope creep: planned scope: build a website that takes customer orders and forward the order to fulfillment center for processing; expand scope to also build a login page where customers can log in to their account.But be flexible when the request is small and doesn’t have impact to schedule and cost.what can we do to address scope creep - Will discuss during “Control Scope” process
Now we know what we talked about, lets see how it flows, and how the ITTO data is grouped.
Purposes of creating WBS:To help more accurately and specifically define and organize the scope of the total project. to help theproject team to know exactly what has to be accomplished within each deliverable. This also allows for better estimating of cost, risk, and time because you can work from the smaller tasks back up to the level of the entire project. allows you double check all the deliverables' specifics with the stakeholders and make sure there is nothing missing or overlapping.
Ask class: Project Management summary task – why is it on WBS?Time-consuming; team participating
In practice, Define Activity and Sequence Activity are often done at the same time.
Real life example. PMBOK milestone list doesn’t include timeline but we eventually need to have timeline to make milestones more meaningful (this can be done after the “develop schedule” process)
Putting the puzzles together
Arrow Diagramming Method (ADM) With the use of computer-supported scheduling, the Arrow Diagramming Method (ADM) and its Activity on Arrow (AOA) is rarely used.1) an activity can't be represented by more than one arrow in the network diagram. Suppose activity A precedes two activities in a network. To avoid duplicating activity A on the diagram, you would need to follow one arrow representing activity A by an end node. Then follow this end node for A by the two successor activities, B and C.2) no two activities can have the same begin and end nodes. Instead, if two activities are related or dependent, you can use a "dummy" activity to show the relationship. A dummy uses no resources and is represented by a dashed arrow.3) ADM shows the early and late schedules for the project. Both the early time (TE) and the late time (TL) for an event appear on the event node.
Start-to-Finish:Example: the night shift must start before day shift can end. We will be better off using Finish-to-Start and build in Leads if needed (line 2 = line1 FS-1 for example)Just in case: PMBOK definition: the completion of the successor activity depends upon the initiation of the predecessor activity.
"discretionary dependencies" - aka. preferred logic, preferential logic, or soft logic. good candidates for fast tracking. external dependency: EX: hardware must arrive before the upgrade can be completed.
PMBOK Page 140Leads and Lags: if on MS Project, it is reflected in the “Predecessor” field as minus or plus from the predecessor.
PMBOK Page 140Leads and Lags: if on MS Project, it is reflected in the “Predecessor” field as minus or plus from the predecessor.
Only the Type and Quantity of resources. Resource assignment actually occurs during Executing processes “Acquire Project Team” and “Conduct Procurement”, when Resource Calendars for the project are generated.Resource CalendarsYou may find it confusing that Resource Calendars are used as an input to “Estimate Activity Resources” process. Look at it this way, there may be some preliminary information available on existing resources before you assemble the actual project team. It will help you identify the gaps, and may need to acquire additional resources externally or negotiate resources from another team. In real world, the team may be assembled toward the later stages of the Planning process, sometimes it could even be determined by upper management upfront before any detailed planning activities take place (still requiring the high-level assessment of which resource type / qty is required)
In real life, an activity duration by using a junior staff may be longer. The project schedule should reflect this. The level of the resource may also play a role in estimating the cost in the next chapter.
In real life, an activity duration by using a junior staff may be longer. The project schedule should reflect this. The level of the resource may also play a role in estimating the cost in the next chapter.
In real life, an activity duration by using a junior staff may be longer. The project schedule should reflect this. The level of the resource may also play a role in estimating the cost in the next chapter.
[Aimee’s Note] research why bottom-up estimating is not a technique for “Estimate Activity Duration” process
Organizational Process Assets: Duration of past similar projects, lessons learned, etc.
Organizational Process Assets: Duration of past similar projects, lessons learned, etc.
Analogous EstimatingSimilar project – “Analogy”Example: If it took 4 weeks to remodel a 4-bedroom house, you estimate that it will take 4 weeks to remodel another similar 4-bedroom house, plus 1 more day because the owner of the 2nd house also ask for interior painting.Parametric Estimating“of parameter”Example: Duration - it took 2 hours to print 500 marketing flyers last month. This time, you need to print 1000 flyers, so you estimate that it will take 4 hours to print them. Cost – it costs $0.20/flyer last month, so you estimate that it will cost you $200 to print the 1000 flyers.
Reserve AnalysisExample: Perform system testing is estimated to take 10 days. Due to the uncertainty of how many issues you may run into, you can build in 15% buffer in the schedule (total of 11.5 days)
Bell Curve: For example, if you flip a coin 100 times and count how many times it comes up heads, the average result will be 50. But if you do this test 100 times, most of the results will be close to 50, but not exactly. You’ll get almost as many cases with 49, or 51. You’ll get quite a few 45s or 55s, but almost no 20s or 80s.Optional:Activity Variance = Standard Deviation2
Why is it important? Heart of planning process determines project start date and end date give team member target dates to hit (small wins along the way). A roadmapTime-related processes that have been completed are: define activities, sequence activities, estimate activity resources, estimate activity duration
Tools and TechniquesNoticebottom-up is not a technique for develop schedule, because sum of activity duration <> project duration due to (1) not all activities are done in sequence (2) resource leveling(3) applying leads and lags etc. In real life, can be used to get a sense of project duration.
Why is scope statement necessary as an input? Scope baseline was already used as an input to create the activity list; however, the project scope statement contains assumptions and constraints that can impact the development of the project schedule.Enterprise environmental factors can include the scheduling software (such as MS Project)Organizational process assets can include project calendar and scheduling methodology. Example: release schedule - company A does weekly releases on Wednesdays only.
MS Project has “Resource Leveling” functionality (“Tools” -> “Level Resources”)[Aimee’s Notes] ask Bill’s opinion… example of schedule buffers – to account for non-work activities like waiting for legal approval for paperwork, waiting for decisions from executive, etc.
MS Project has “Resource Leveling” functionality. menu “Resource” tab “Level Resource” Top 5 Scheduling software programs: http://www.brighthubpm.com/software-reviews-tips/2492-the-top-five-project-scheduling-software-programs/
Crashing – may not always effective to shorten the scheduleFast trackingask class if it's a good idea to fast track mandatory or external dependencies. No. for "discretionary dependencies“ are good candidates for fast tracking EX: coding for an application, user testing is usually after coding is done, but some user testing can be done when some functionalities have been developed, and while developers continue to code for other functionalities-------------------------Top 5 Scheduling software programs: http://www.brighthubpm.com/software-reviews-tips/2492-the-top-five-project-scheduling-software-programs/
Note that total float for the C-E-F path = 5 not 10
Note that total float for the C-E-F path = 5 not 10
If Project Managers are not responsible for budget, the project performance evaluation should not include budget or cost measurement.
Build vs. Buy – e.g., product lifecycle management tool; Cost estimating = cost to complete the projectPricing = the price to sell the product or service. Vendor’s price becomes part of our project cost.
Expert Judgment, (2) Analogous estimating, (3) Parametric estimating, (5) Three-Point estimating, and (6) Reserve Analysis are also techniques for “Estimate Activity Durations”(4) Bottom-up estimating is also a technique for “Estimate Resources”
Question for class: How does Scope Baseline help to estimate Cost?Triple Constraints: Time, Cost, Scope. One side of the triangle cannot be changed without affecting the others. A further refinement of the constraints separates product "quality" or "performance" from scope, and turns quality into a fourth constraint.“Fast, Cheap, Good” (or “pick any two”)
Question for class: How does Scope Baseline help to estimate costs?
Example of Analogous estimating – launching a new product – the costs involved could be similar
(4) Bottom-up estimating is also a technique for “Estimate Resources” (5) Three-Point estimating, and (6) Reserve Analysis are also techniques for “Estimate Activity Durations”Bottom-up estimating is not a tools and technique for duration estimating in PMBOK but it is used to get general sense in real lifeContingency Reserve may be a percentage of the estimated cost, a fixed number, or may be developed by using quantitative analysis methods.
* Contingency reserves are allowances for unplanned but potentially required changes that can result from realized risks identified in the risk register. * Management reserves are budgets reserved for unplanned changes to project scope and cost. * Contingency reserve is a part of the project cost baseline* Management reserve is NOT part of the cost baseline, but may be included in the total budget for the project. * Reserves are not a part of the earned value measurement (EVM) calculations
Does cost baseline include contingency reserves? PMBOK page 174 and 177 have conflicting information. 174 – 7.2 (This baseline includes all authorized budgets, but excludes management reserves.); page 177, 7.2.2.2 Reserves Analysis, “Reserves are not a part of the project cost baseline, but may be included in the total budget for the project.”Based on my research, Cost Baseline does include contingency reserve.
Costs shown on the cost baseline are cumulative costs.
In-class activity: Discuss and calculate funding requirement for a certain period on the S-curve on previous slideReserves are released as project progresses & risk goes down, unless it’s a fixed fee contract. Reserves are released by adjusting total budget amount.
Ask class: What are other components of Performance Measurement Baseline? Cost baselinePMBOK p.174 - cost baseline includes all authorized budgets, but excludes management reserves. p.177 under reserve analysis - "reserves are not a part of the project cost baseline, but may be included in the total budget of the project”