4. ADDING VALUE VS COST OF CHANGE
Burke (2007):-
PROJECT MANAGERS HAVE GREATEST CHANCE OF ADDING
VALUE AT THE BEGINNING OF A PROJECT
- Cost of change minimised at planning phase because it is a
“paper” exercise
- Changes later in project involve additional work, wasted
time and resources
CLASS EXERCISE
Read case study page 83 of manual
6. USE “SMART” TO DEFINE GOALS
Specific – goals should be clearly defined, when, where
Measurable – quantifiable
Achievable – All parties must agree it is achievable
Realistic – must be physically possible to attain
Time Bound – must be driven by deadlines
8. INDIVIDUAL EXERCISE
Think of a goal you wish to achieve personally
Write it down
Take the goal and write it the smart way
10 minutes
Do individually please!
9. DELIVERABLES
• Specific, measurable outcomes
• Must be completed for goals to be
achieved
• SMART criterion can be used to write
deliverable
• Tangible results are outcome of
deliverables
• When all deliverables complete project is
complete
10. EXAMPLES OF DELIVERABLES
• Obtain result of feasibility study by
01/08/2011
• Create charter by 02/12/2011
• Finalise construction drawings by
01/01/2012
11. ASSUMPTIONS
“……..the act or an instance of accepting without
proof. Arrogance”
• Negative connotations
• Avoidance of responsibilities
12. PROJECT SCOPE
P87 of manual
• Detailed document
• Contains list of all goals and deliverables
• Used to generate resource and cost
estimates
• Essential tool for guiding and controlling
project
• List of exclusions is KEY
13. COMMUNICATION PLAN
• Usually constructed in table form
• Type of communication and person
responsible listed
• Type of communication includes: status
reports, progress reports, forecasts etc.
• Recipients , method and frequency of
delivery listed
See p88 in manual
14. WORK BREAKDOWN STRUCTURE
“ …. a tool used to graphically
display the deliverables of the
project in a hierarchical fashion. It
organises the work of the project in
logical groupings and displays the
information in a tree form or an
outline form”
20. NETWORK DIAGRAMS AND CPA
Network diagrams illustrate graphically the
relationships between tasks
Number of different methods:-
• Precedence Diagramming Method
• Activity on Arrow Method
• Activity on Node Method
21. NETWORK DIAGRAM METHOD
• Identify all tasks in a project
• Sequence them
• Present tasks, predecessors and durations in a
table
• Draw a network
22. TASKS, PREDECESSORS AND DURATIONS
Identify tasks with TASK PREDECESSOR DURATION
no predecessor
A - 2
B A 3
Identify bursts – C A 2
tasks sharing a D B 1
common
predecessor E C 5
F C 4
G E,F 7
Identify merges –
tasks with more H D,G 2
than one
I H 4
predecessor
NO PREDECESSOR THEN MUST BE FIRST TASK
25. INDIVIDUAL EXERCISE
1. Identify the Bursts and Merges in the example below
2. Draw a network for the situation using the Precedence Diagramming Method
TASK PREDECESSOR
A -
B A
C A
D B,C
E D
F E
28. TASK BOX
Precedence Diagramming Method uses task boxes to represent tasks and connectors
ES EF
Early Start Early Finish
FLOAT TASK DURATION
LS LF
Late Start Late Finish
YOU NEED TO MEMORISE THIS – IT WILL NOT BE GIVEN YOU IN EXAM
29. TASKS, PREDECESSORS AND DURATIONS
TASK PREDECESSOR DURATION
A - 2
B A 3
C A 2
D B 1
E C 5
F C 4
G E,F 7
H D,G 2
I H 4
Draw a network diagram for this example
Double-check the tasks against their predecessors
to make sure it is correct
30. TASKS
Put task name into diagram
ES EF
Early Start Early Finish
FLOAT TASK DURATION
LS LF
Late Start Late Finish
31. DURATION
An activities duration will run from the start to
the finish of the activity.. Time units can be
expressed in hours, days, weeks, months, shifts
– whatever is appropriate for the project.
For simplicity we will always use days as our
time unit.
PUT DURATIONS ONTO YOUR DIAGRAM
32. DURATIONS
Add durations to your network as per the task box convention
ES EF
Early Start Early Finish
FLOAT TASK DURATION
LS LF
Late Start Late Finish
33. CRITICAL PATH
Calculate the critical path by adding up the durations on each path
The longest time is the critical path
Mark the critical path in a different colour on your diagram
34. FLOAT
Float is a measure of flexibility or surplus time in an
activity’s schedule. It indicates how many days an activity
can be delayed before if affects the project completion
date
All activities on the critical path have a float of 0
Put this onto your diagram
35. FLOAT
Add floats to your network as per the task box convention
ES EF
Early Start Early Finish
FLOAT TASK DURATION
LS LF
Late Start Late Finish
36. FLOAT – NON CRITICAL PATH
SECOND LONGEST PATH
Total critical path duration – 2nd longest path duration = 2nd longest path float
PUT THIS ONTO YOUR DIAGRAM
THIRD LONGEST PATH
Total critical path duration – 3rdlongest path duration = 3rd longest path float
PUT THIS ONTO YOUR DIAGRAM
When a task is part of more than 1 path the smallest number is always selected for
the float
37. EARLY START
Early start is the earliest date by which an
activity can start assuming all of the preceding
activities are completed as planned
ES = ES preceding task + duration preceding task
PUT THIS ONTO YOUR DIAGRAM
38. EARLY START
Add EARLY STARTS to your network as per the task box convention
ES EF
Early Start Early Finish
FLOAT TASK DURATION
LS LF
Late Start Late Finish
39. EARLY FINISH
Early finish is the earliest date by which an
activity can be completed assuming all of the
preceding activities are completed as planned
EF = ES + Duration -1
PUT THIS ONTO YOUR DIAGRAM
40. EARLY FINISH
Add EARLY STARTS to your network as per the task box convention
ES EF
Early Start Early Finish
FLOAT TASK DURATION
LS LF
Late Start Late Finish
Make sure that the last tasks EF = critical path duration. If not you have made an
error
41. LATE START
Late start is the latest date an activity can finish
to meet the planned completion date
LS = ES + FLOAT
PUT THIS ON YOUR DIAGRAM
42. LATE START
Add LATE STARTS to your network as per the task box convention
ES EF
Early Start Early Finish
FLOAT TASK DURATION
LS LF
Late Start Late Finish
43. LATE FINISH
Late finish is the latest date an activity can finish to
meet the planned completion date
LF = EF + FLOAT
PUT THIS ON YOUR DIAGRAM
44. LATE FINISH
Add LATE FINISHES to your network as per the task box convention
ES EF
Early Start Early Finish
FLOAT TASK DURATION
LS LF
Late Start Late Finish
Check the late finishes at merges. The merging tasks should have same
LF otherwise there is an error
45. SUMMARY CPA
ES EF
F T D EF = ES + D – 1
LS LF LS = ES + F
ES = ES PRECEDING TASK + D PRECEDING TASK
LF = EF + F
F = LS –ES OR LF-EF
ES 1ST TASK =1
F CRITICAL PATH = 0
F ON MORE THAN 1 PATH SMALLEST SELECTED
ES FROM MERGED TASKS SELECT HIGHEST ONE
46. CPA EXERCISES
PREPARE CPA FOR EACH OF THE EXAMPLES ON THE
NETWORK EXAMPLE SHEET
WORK INDIVIDUALLY
47. IMPLICATION TO THE CRITICAL PATH
• When float is used up critical path may change
• Tasks on critical path have zero float, therefore a
task with no float left will fall on critical path
• This tells us that there may be more than one
critical path AND the critical path is subject to
change
• Float in a task box represents float for entire path. If
a task is delayed, all the succeeding tasks will also
be delayed and their float days will be reduced
49. BUDGETING TECHNIQUES
• Carefully controlled budget good
indication of projects financial state
• Senior management VERY unhappy with
poor budget control
50. RESPONSIBILITY ASSIGNMENT MATRIX
- ENSURES EVERYONE KNOWS WHO IS
RESPONSIBLE
- ENABLES PROJECT MANAGER TO
KEEP TRACK OF DUTIES AND
LIABILITIES EVERYONE KNOWS WHO IS
RESPONSIBLE
- Page 114 of manual
52. SOURCES OF RISK
Can come from internal or external sources
External – risks originate from macro –
environment, includes political and legal issues
Internal - risks come from the project or from
within the organisation, workforce problems,
inadequate resources and outdated
technologies
53. RISK ELEMENTS
Risks are analysed according to two variables:
PROBABILITY – measured by a %
100% - sure thing
0% - impossible to happen
70% - likely to happen
30% - unlikely to happen
After assessing probability need to asses the impact it will have if it happens
IMPACT