04 Project Planning - Schedule

Principles of Project Management

Hisham Rafik, MBA, PMPPresented By:

Principles of Project Management 2© Knowledge 2008

Course Outline

1. Project Management Framework

2. Project Initiation

3. Project Planning - Scope Definition

4. Project Planning - Schedule Development

5. Project Planning - Risk Management

6. Project Planning - Budgeting


Section Four

Project PlanningSchedule Development


Project Planning Process

Scope Definition

Schedule Development

Risk Management Plan

Budgeting

Plan Compilation and Approvals


Project Planning ProcessSchedule development

1. Activity DefinitionConvert work packages to manageable tasks project activities

2. Activity SequencingSequence and link the tasks and milestones PERT chart (Network Diagram)

3. Activity Resource Estimating: Identify the resources available and Assign Responsibility for each task (or group of tasks) Responsibility Assignment Matrix

4. Activity Duration Estimating:Estimate the Duration for each activity Activity Duration Estimates

5. Schedule Development:Calculate the Critical Path and Develop project schedule GANTT Chart


Project Time Management1. Activity Definition

Identifying and documenting the work that is planned to be

performed.

Identifying the deliverables at the lowest level in the WBS

(work package)

Project work packages are decomposed into smaller

component called schedule activity to provide a basis for

estimating, scheduling, executing, monitoring and controlling

the project works.


Inputs1. Enterprise

environmental factors

2. Organizational process assets

3. Project scope statement

4. WBS

5. WBS dictionary

6. Project management plan

Tools &Techniques

1. Decomposition2. Templates3. Rolling wave

planning4. Expert judgment5. Planning

component

Outputs1. Activity List2. Activity

attributes3. Milestone list4. Requested

changes

Project Time ManagementActivity Definition


1. DecompositionSubdividing project work package into smaller, more

manageable components called schedule activities.

2. TemplatesA standard activity list or a portion of an activity list from a

previous project. It can also contain a list of resource skills and their required hours of effort, identification of risks, expected deliverables, and other descriptive information.

Project Time ManagementActivity Definition, Tools & Tech


3. Rolling wave planningRolling wave planning is a form of progressive elaboration planning, where the work to be accomplished in the near term is planned in detail at the low level of the WBS, while work far in the future is planned for WBS component that are at a relatively high level of the WBS.

Project Time ManagementActivity Definition, Tools & Tech


MilestonesMilestones are zero duration activities that show key events in the project:

Project/Phase Start and Completion pointsFinancial payments due dateKey approval points

Design submitted/approved Completion of project deliverables

Ready for Acceptance (RFA)Provisional Acceptance Certificate (PAC)Final Acceptance Certificate (FAC)

Equipment/Sites handover pointsSite Ready For Installation (RFI)Equipment shipped/delivered to handover pointEquipment custom cleared


Project Time ManagementActivity Definition, Outputs1. Activity List2. Activity attributes

Includes the activity identifier, codes, description, predecessor, successor, logical relationship, .leads & lags, resource requirements, imposed dates, constraints and assumptions.

3. Milestone listIdentifies all milestones and indicates whether the milestones is mandatory or optional.

4. Requested changes


Project Time Management2. Activity Sequencing

Activity sequencing involves identifying and

documenting the logical relationships among

schedule activities.

Sequencing can be performed by using project

management software or by using manual

technique.


Project Time ManagementActivity Sequencing

Inputs

1. Project scope statement

2. Activity List

3. Activity attributes

4. Milestone list

5. Approved change requests

Tools &Techniques1. Precedence

Diagramming Method (PDM)

2. Arrow Diagramming Method (ADM)

3. Schedule network templates

4. Dependency determination

5. Applying leads and lags

Outputs1. Project

schedule network diagrams

2. Activity List (Updates)

3. Activity attributes (Updates)



The Network Diagram (PERT Chart)


Guidelines for Developing a Network Diagram

Don’t worry about time estimates or drawing the network diagram to scale. Concentrate on the relationships. Make sure there is only one Start box and one End box.Every task must connect to another task or to the start or end of the project

Avoid Dangling activities Indicate key milestones in this network diagramRemember that this is a communication tool; it must be clear to all who use it.


Dependency determination

1. Mandatory dependencies (Hard Logic)Are those that are inherent in the nature of the work being

done. They often involve physical limitations.

2. Discretionary dependencies (Soft Logic)Are defined by the project management team. They should be used with care (and fully documented), since they may limit later scheduling options.

3. External dependenciesAre those that involve a relationship between project activities and non-project activities.


Dependencies Relationships

(A) Finish-To-Start

(B) Start-To Start

(C) Finish-To-Finish

(D) Start-To-Finish

Predecessor Successor

Activity A

Activity A

Activity B

Activity B

Activity A Activity B

Activity AActivity B


Applying leads and lagsFinished to start- Activity (A) must finish before (B) can start

Finished to start (FS + 3wks lag)- Activity (A) Must be finished for 3 weeks before (B) can start- The start of activity (B) lags the finish of (A) by 3 week- The finish of A leads the start of B by 3 weeks

Finished to start (FS - 3wks lag) - Activity (B) can start three weeks prior to the finish of (A) .- The start of activity (B) leads the projected finish of (A) by 3 weeks- The finish of (A) lags the start of (B) by 3 weeks

1 3 4 5 6 7 10982

A (du = 4)

B (du=3)

A (du = 4)

B (du=3)

FS 0

FS+3

A (du = 4)

B (du=3)

FS-3


Project Time Management3. Activity Resource Estimating

Estimating schedule activity resource involves determining

what resources (persons, equipment, or material) and what

quantities of each resource will be used, and when each

resource will be available to perform project activities.

The activity resource estimating process is closely

coordinated with the cost estimating process.


Project Time ManagementActivity Resource Estimating

Inputs1. Enterprise

environmental factors

2. Organizational process assets

3. Activity list4. Activity

attributes5. Resource

availability6. Project

management plan

Tools &Techniques

1. Expert judgment

2. Alternatives analysis

3. Published estimating data

4. Project management software

5. Bottom-up estimating

Outputs1. Activity resource

requirements2. Activity

attributes (Updates)

3. Resource breakdown structure

4. Resource calendar (updates)



Activity Resource Planning1. Identify all needed/available resources for

the project:ManpowerMachinesMaterialMoney

2. Resource AllocationAssign the resources needed to each activityWe can use the Responsibility Assignment Matrix to document this allocation


Responsibility Assignment Matrix


Project Time Management4. Activity Duration Estimating

The process of estimating schedule activity durations uses information on schedule activity scope of work, required resource types, estimate resource quantities, and resource calendars with resource availabilities.Estimating the number of work periods required to complete an activity.


Project Time ManagementActivity Duration Estimating

Inputs1. Enterprise environmental

factors2. Organizational process

assets3. Project Scope Statement4. Activity list5. Activity attributes6. Activity Resource

Requirements7. Resource Calendar8. Project management plan

• Risk Register• Activity Cost Estimates

Tools &Techniques

1. Expert Judgment

2. Analogous Estimating

3. Parametric Estimating

4. Three point Estimating

5. Reserve Analysis

Outputs1. Activity

duration Estimates

2. Activity attributes (Updates)


Activity Duration Estimation Activity duration estimation depends on:

Number of resources assignedCapability of those resources to do the work

The person responsible for the activity should provide its duration estimate

Techniques for EstimationExpert judgmentAnalogous Estimating: Top-DownParametric Estimating: Quantitatively based duration3 point Estimating


Project Time ManagementActivity Duration Estimating, Tools & Tech

1. Analogous Estimating (Top-Down estimating)

Means using the actual duration of a previous, similar

activity as the basis for estimating the duration of a

future activity. It is frequently used to estimate

project duration when there is a limited amount of

detailed information about the project (e.g., in the early

phases)



2. Parametric EstimatingDetermined by multiplying the quantity of work to be

performed by the productivity rate. (i.e., meter of cables,

tons of steel, number of drawings, etc.)

Expected Qty. for Activity A: 10 units

Productivity unit rate: 2 day / unit

Total duration: 20 days



3. Three point EstimatingMost LikelyOptimistic:- Based on a best scenarioPessimistic:- Based on a worst scenario

4. Reserve AnalysisAdditional time frame, called reserve, buffer, or contingency, that can be added to the activity duration or elsewhere in the schedule as recognition of schedule risk.


Activity Duration EstimatesThree point estimating


Activity Duration EstimatesThree point estimating

The Optimistic Time (O)

Is the minimum time an activity could take (the situation, where every thing goes well)

The Most Likely Time (M)

Is the normal time to complete the job. It is the time would occur most frequently if the activity could be repeated.

The Pessimistic Time (P)

Is the maximum time an activity could take (the situation, where bad luck is encountered at every step)

Expected Time = (O+ 4*M +P) /6

Standard Deviation = (P – O) / 6


Project Time Management5. Schedule Development

Schedule development means determining planned start and finish dates for project activities.Schedule Development analyzing activity sequences, activity durations, and resource requirements to create the project schedule.The schedule development process must often be iterated prior to determination of the project schedule.


Project Time ManagementSchedule Development

Inputs1. Organizational process

assets2. Project Scope

Statement3. Activity list4. Activity attributes5. Project Schedule

• Network diagram

6. Activity Resource Requirements

7. Resource Calendar8. Activity duration

Estimates9. Project management

plan• Risk Register

Tools &Techniques1. Schedule Network

Analysis2. Critical Path

Methods3. Schedule

Compression4. What-if Scenario

Analysis 5. Resource Leveling6. Critical Chain

Method7. Project

Management Software

8. Applying Calendars9. Adjusting Leads and

Lags10. Schedule Model

Outputs1. Project Schedule

2. Schedule Model data

3. Schedule Baseline

4. Resource Requirements (updates)

5. Activity attributes (updates)

6. Project Calendars (updates)

7. Requested Changes 8. Project Management Plan

(updates) - Schedule Management plan


Critical Path Analysis (CPA)Forward path Project DurationBackward path Critical path and activity Float

Critical path = the longest continuous sequence of tasks in a networkFloat (Slack) = the maximum allowance for delay in an activity

Failures on the critical path are very serious, and will impact the delivery dateAs the project progresses, the critical path may change as a function of actual task performance; delays in non-critical path activities might make them critical


1. Project Schedule• Project network diagram• Bar chart (Gantt chart)

Project Time ManagementSchedule Development, Outputs

Activity A

Activity B

Activity C

Activity D

Jun Jul Aug Sep Oct Nov


Project Schedule (GANTT Chart)Activity GANTT chart is used to:

Show project plan (all activities and milestones) on a time scale

What we are supposed to be doing at any moment of timeReport detailed project progress/status to project manager and project team

Where do we exactly stand now on all activities and milestones

Milestones Chart/Table Similar to bar chart, but only identify the scheduled start or completion of major deliverables.

Financials, Approvals, Deliverables, handover points Report progress to Management and Customer


2. Schedule Model Data

Supporting data for the project schedule includes at least the schedule milestones, schedule activities, activity attributes and documentation of all identified assumptions and constraints.

3. Schedule Baseline

Is the accepted and approved version of the project schedule.

Project Time ManagementSchedule Development, Outputs


Schedule CompressionShortens the project schedule without changing the project scope, to meet schedule constraints, imposed dates, or other schedule objectives.

Focus on tasks on the critical (and near critical) path and seek ways to shorten

Methods for schedule CompressionCrashing Fast tracking


Schedule Compression

Crashing:Cost and schedule tradeoffs are analyzed to determine how to obtain the greatest amount of compression for the least incremental cost.Focus on shortening the duration of critical path tasks Normally involves More costExamples:

Increase number of work days/hours Shorten tasks for which you have available resources


Schedule CompressionFast Tracking:

Doing activities in parallel that would normally be done in sequence.

Re-plan serial paths to be in parallelOverlap sequential tasks

Fast tracking often results in rework and usually increases risk.Fast-tracking More risk


Expected Project duration = 14Project duration, standard deviation = 0.44 + 0.44 + 0.11 = 1.00

B

DCA

Variance Standard Deviation

(P – O)6

Expected duration

(O+ 4*M +P)6

PessimisticMost likely

OptimisticActivity

0.440.674642A

0.440.675753B

1171074C

0.110.335654D



Crashing Cost B

DCA

Crash cost / day

Crash cost $Normal cost $Crash duration

Normal duration

Activity

10008000600024A

7505750500045B

5008500800067C

20008000600045D



Activity Resource Planning1. Identify all needed/available resources for the project:

2. Resource Allocation

3. Resource UtilizationDraw the resource Histogram that shows the total number of resources needed during each time period of the project

4. Resource levelingSmoothen the use resources across the project total duration to ensure that resources needed (shown on the histogram) do not exceed resources available (as per list of identified resources)


0255075

100125150175200225250275300

9 16 23 30 6 13 20 27 6 13 20 27 3 10 17 24 1 8 15 22Jan Feb Mar Apr May

Senior Designers

Reso

urce

Usa

ge

Resource Histogram

Resource Leveling


Resource Leveling (Over-allocation)Tasks can be shifted or extended within their float. Use overtime to meet the demandUse of temporary helpContract out a portion of the workloadIncrease the size of the resource pool permanently. Select a portion of the workload to be delayed beyond its approved completion date (Nice-to-have).


Resource Leveling (Under-allocation)

Tasks can be moved within their float to take advantage of the resource pool’s available time.Overtime can be eliminatedManagement can consider reducing the size of the resource poolLow-priority work can be moved up in the organization’s scheduleUse these periods to develop new methods for the cost-effective performance of the work of the resource pool.Cross-train staff during these periods.


Schedule Baseline

Is the accepted and approved version of the project schedule.

GANTT Chart

Milestone Chart (or table)

Network Diagram

Resource Histograms

Schedule Development Outputs


Project Planning ProcessSchedule development

1. Activity DefinitionConvert work packages to manageable tasks project activities

2. Activity SequencingSequence and link the tasks and milestones PERT chart (Network Diagram)

3. Activity Resource Estimating: Identify the resources available and Assign Responsibility for each task (or group of tasks) Responsibility Assignment Matrix

4. Activity Duration Estimating:Estimate the Duration for each activity Activity Duration Estimates

5. Schedule Development:Calculate the Critical Path and Develop project schedule GANTT Chart

Documents

04 Project Planning - Schedule