Atec 2340 lecture7

ATECARTS & TECHNOLOGY

ATEC 2340 Project Management for Arts & Technology - I


Agenda• Project Time

Management

• Project Cost Management

• Mid Term


Project Management Body of Knowledge (PMBOK)



Project Time Management



Before we begin…

Project Time Management = Project Scheduling

Because, 95 % of the time when people think about project management, they think about schedule.



Importance of Project Schedules…

• Managers often cite delivering projects on time as one of their biggest challenges.

• Schedule issues are the main reason for conflicts on projects, especially during the second half of projects.

• Time has the least amount of flexibility; it passes no matter what happens on a project.

*The Standish Group, “Latest Standish Group CHAOS Report Shows Project Success Rates Have Improved by 50%,” (www.standishgroup.com) (March 25, 2003



Project Time Management: The Big Picture



Project Time Management Processes

• Activity definition: Identifying the specific activities that the project team members and stakeholders must perform to produce the project deliverables.

• Activity sequencing: Identifying and documenting the relationships between project activities.

• Activity resource estimating: Estimating how many resources a project team should use to perform project activities.

• Activity duration estimating: Estimating the number of work periods that are needed to complete individual activities.

• Schedule development: Analyzing activity sequences, activity resource estimates, and activity duration estimates to create the project schedule.

• Schedule control: Controlling and managing changes to the project schedule.



Activity Definition• Activity List:

– An activity list is a tabulation of activities to be included on a project schedule.– All activities necessary and sufficient to produce the product deliverables– Defined in sufficient detail to promote understanding by project team

• Activity Attributes:Activity attributes provide more information about each activity, such as predecessors, successors, logical relationships, leads and lags, resource requirements, constraints, imposed dates, and assumptions related to the activity.

– Activity identifier and code– Activity description– Assumption and constraints– Predecessor and Successor Activities– Resource Requirements– Team Member Responsible for Performing the Work



Milestones

• A milestone is a significant event that normally has no duration.

• It often takes several activities and a lot of work to complete a milestone.

• Milestones are useful tools for setting schedule goals and monitoring progress.

• Examples include completion and customer sign-off on key documents and completion of specific products.




Activity Sequencing• Identifies the dependencies among the schedule activities and orders the

activities accordingly – A task has a dependency if it involves an activity, resource or work

product which is subsequently required by another task

• Tasks may have dependencies because they require the same resource

A BActivity A is a predecessor

of activity BActivity B is a successor of

activity A



Precedence Relationships• Finish to Start

– Initiation of the successor activity depends upon completion of the predecessor activity

• Finish to Finish– The completion of the successor activity depends upon the completion of

the predecessor activity• Start to start

– The initiation of the successor activity depends upon the initiation of the predecessor activity

• Start to finish– The completion of the successor activity depends upon the initiation of

the predecessor activity


Precedence Relationships

ATEC 2340.001.F16 Sagar Wadhwani http://www.stellman-greene.com



Three types of Dependencies

• Mandatory Dependencies– Inherent to the schedule activities (e.g. software must be developed

before it can be tested)• Discretionary Dependencies

– Dependencies at the discretion of the project team (e.g. acceptance test with marketing before accounting)

• External Dependencies– Involves a relationship between a project activity and a non-project

activity (e.g. Windows Vista Delivered)



Network Diagram

• Network diagrams are the preferred technique for showing activity sequencing.

• A network diagram is a schematic display of the logical relationships among, or sequencing of, project activities.

• Two main formats are the arrow and precedence diagramming methods.



A Sample Network Diagram





Activity Resource Estimating

• Before estimating activity durations, you must have a good idea of the quantity and type of resources that will be assigned to each activity.

• Consider important issues in estimating resources:– How difficult will it be to complete specific activities on this project?– What is the organization’s history in doing similar activities?– Are the required resources available?





Activity Duration Estimating

• Duration includes the actual amount of time worked on an activity plus the elapsed time.

• Effort is the number of workdays or work hours required to complete a task.

• Effort does not normally equal duration.

• People doing the work should help create estimates, and an expert should review them.



Developing the Schedule



Schedule Development

• Uses results of the other time management processes to determine the start and end dates of the project.

• Ultimate goal is to create a realistic project schedule that provides a basis for monitoring project progress for the time dimension of the project.

• Important tools and techniques include Gantt charts, critical path analysis, critical chain scheduling, and PERT analysis.



Gantt Charts

Gantt charts provide a standard format for displaying project schedule information by listing project activities and their corresponding start and finish dates in a calendar format.



A Sample Gantt Chart



Adding Milestones to Gantt Charts

• Many people like to focus on meeting milestones, especially for large projects.

• Milestones emphasize important events or accomplishments in projects.

• You typically create milestone by entering tasks that have a zero duration, or you can mark any task as a milestone.



Schedule Control

• Perform reality checks on schedules.

• Allow for contingencies.

• Don’t plan for everyone to work at 100 percent capacity all the time.

• Hold progress meetings with stakeholders and be clear and honest in communicating schedule issues.



Reality Checks on Scheduling

• Review the draft schedule or estimated completion date in the project charter.

• Prepare a more detailed schedule with the project team.

• Make sure the schedule is realistic and followed.

• Alert top management well in advance if there are schedule problems.



Using Software to assist in Time Management

• Software for facilitating communication helps people exchange schedule-related information.

• Decision support models help analyze trade-offs that can be made.

• Project management software can help in various time management areas.



Project Cost Management


Project Management Body of Knowledge (PMBOK)



Project Cost Management

• Cost is a resource sacrificed or foregone to achieve a specific objective or something given up in exchange

– Costs are usually measured in monetary units like dollars

• Project cost management includes the processes required to ensure that the project is completed within an approved budget

– Project managers must make sure their projects are well defined, have accurate time and cost estimates and have a realistic budget that they were involved in approving



Project Cost Management Process

1. Plan Cost Management

• Establish the policies and procedures for planning and managing project costs.




1. Plan Cost Management2. Estimate Costs

• Develop an estimate or approximation of the monetary resources needed to complete project activities.




1. Plan Cost Management2. Estimate Costs3. Determine Budget

• Combining the total estimated costs of individual activities – plus contingency – to develop a cost baseline, also known as approved budget.




1. Plan Cost Management2. Estimate Costs3. Determine Budget4. Control Costs

• Monitor and manage costs, as based on status of activities.



Plan Cost Management

Inputs:• Project Management Documents to date• Enterprise & Environmental Factors• Organizational Process & Policies

Tools and Techniques:• Expert Judgement • Financial Strategies such as Purchasing, renting, leasing, Internal or

external funding or investments



Estimate CostsInputs:• Cost Management Plan• Scope baseline• Project schedule

Tools and Techniques:• Expert judgement• Analogous estimating - Similar project• Bottom-up or Rolled-up - Estimate individual activities and roll up• Three point estimating - Most likely, Optimistic, Pessimistic/worst case



Determine Budget

Inputs:• Cost management plan• Scope• Schedule• Activity cost estimates• Resource calendars• Agreements• Organizational rules and tools



Determine Budget

Tools and Techniques:

• Expert Judgement• Cost Aggregation – take details and roll up• Reserve analysis – estimates of contingency• Analogous estimates – similar projects• Funding limits and estimated costs