Draft - homepages.wmich.eduhomepages.wmich.edu/~baller/IME6140/kurstedt.pdfFigure 13: The Gantt chart for the house construction project shows ... Themilestone logfor the house construction

HAROLD KURSTEDT

PAMELA KURSTEDT

NEWPORT GROUP, LLC2005

Draft

Copyright © 2005

Newport Group, LLC105 N. Virginia Avenue, Suite 306

Falls Church, VA 22046Phone: (703) 531-1330

Fax: (703) 531-1320Website: www.newportgroupllc.com

All rights reserved.Printed in the United States of America.

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List of Figures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v

Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix

Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xi

Chapter 1: What is project management? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Chapter 2: A selected sequence of project managementtools supports planning, execution, and verification. . . . . . . . . . . . . . . . 5

Chapter 3: Ten project management process steps andassociated tools balance client and company needs. . . . . . . . . . . . . . . . . 9

Chapter 4: The scoping agreement (1a) captures broad projectexpectations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Chapter 5: The requirements statements (1b) specify what theproject will look like and will do. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Chapter 6: The task list (2) helps reduce gaps and overlaps inproject scope. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Chapter 7: The work breakdown structure (3) organizes projecttasks into related groups. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Chapter 8: The Gantt chart (4a) lays out task durations overthe time of the project. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Chapter 9: The network diagram (4b) shows dependence and precedence. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Chapter 10: The milestone log (5) highlights important eventsmarking deliverables and other task ends. . . . . . . . . . . . . . . . . . . . . . . . 43

Chapter 11: With the responsibility matrix (6), the project managerassigns human resources to tasks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

Table of contents

Chapter 12: The personpower loading chart (7) identifies whenproject needs exceed resource availability. . . . . . . . . . . . . . . . . . . . . . . . 51

Chapter 13: The project manager uses the personpower loading histogram (8) to level human resources. . . . . . . . . . . . . . . . . . . . . . . . . . . 55

Chapter 14: The expenditures chart (9) identifies the financialresources needed to accomplish project tasks. . . . . . . . . . . . . . . . . . . . . 59

Chapter 15: The project manager uses the cumulative budget (10)to plan and track total costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

Chapter 16: What does it take to be a project manager? . . . . . . . . . . . . . . . . . . . . . . . 67

Appendix A: Microsoft Project, Detailed Reports and Charts:Mary’s House . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

Appendix B: Plan Versus Actual: Mary’s House . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

Appendix C: Practical Exercise: Creating a Project Plan . . . . . . . . . . . . . . . . . . . . . . . . . 81

Appendix D: Monitoring the Project Qualitatively . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85

Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87

About the Authors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89

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Figure 1: The traditional project management triangle shows the interrelatedness of the project constraints. . . . . . . . . . . . . . . . . . . . . . . . . 1

Figure 2: The PDSA Cycle provides for continual improvementand learning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Figure 3: We add small amounts of information to each projectmanagement tool to provide for the next tool in the sequence. . . . . . . . . 13

Figure 4: The scoping agreement is a crisp statement of expectations and work used to initiate a project. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Figure 5: The 246-word scoping agreement establishes the expectationsof Mary and Taylor for Mary’s new house . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Figure 6: Requirements statements mandate what the project output will be and do. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Figure 7: Requirements statements define the content for Mary’s house. . . . . . . . . . 21

Figure 8: The task list is a simple listing of everything you need to complete to accomplish the project objectives. . . . . . . . . . . . . . . . . . . . . . . 26

Figure 9: The house construction example task list shows how to include all the tasks to accomplish the project objectives. . . . . . . . . . . . . 27

Figure 10: The work breakdown structure organizes tasks into related groups. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Figure 11: The work breakdown structure for the house construction project organizes tasks into related broad activities. . . . . . . . . . . . . . . . . . 32

Figure 12: The Gantt chart schedules tasks against time. . . . . . . . . . . . . . . . . . . . . . . . 35

Figure 13: The Gantt chart for the house construction project showshow the broad tasks are laid out over the time span ofthe entire project. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

Figure 14: We show dependence by drawing an arrow from the taskthe given task depends on. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

List of figures

Figure 15: The different dependencies give the project managera range of options. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Figure 16: The network diagram shows precedence. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

Figure 17: The network diagram for the house construction project shows project flow. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

Figure 18: The milestone log highlights important events you setexpectations for during the course of the project. . . . . . . . . . . . . . . . . . . . . 45

Figure 19: The milestone log for the house construction project ensures timely completion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

Figure 20: The responsibility matrix identifies the responsibilitiesfor each person/subcontractor working on a project. . . . . . . . . . . . . . . . . 49

Figure 21: The responsibility matrix for the house construction project designates the responsibilities for the people and the contractors working on the house. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

Figure 22: The personpower loading chart identifies human resource requirements by time period (e.g., month) for each task. . . . . . . . . . . . . . 53

Figure 23: The personpower loading chart for the house construction project shows personnel activity as a function of time. . . . . . . . . . . . . . . . . 54

Figure 24: The personpower loading histogram identifies unevenness indistributing human resources to tasks over the project lifetime. . . . . . . . 57

Figure 25: The personpower loading histogram for the house construction project highlights busy and down times. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

Figure 26: The expenditures chart identifies what it costs to accomplish the project’s tasks, sometimes categorizedby labor type, materials, and so on. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

Figure 27: The expenditures chart for the house construction project shows how much the tasks cost to execute. . . . . . . . . . . . . . . . . . . . . . . . . . 62

Figure 28: The cumulative budget shows the accumulating costs overtime during the project. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

Figure 29: The cumulative budget for the house construction projectwarns of overspending the budget. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

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List of figures

Figure A-1: Mary’s House — Gantt Detail, Framing Tasks. . . . . . . . . . . . . . . . . . . . . 72

Figure A-2: Mary’s House — Resource Sheet. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

Figure A-3: Mary’s House — Cash Flow as of Weeks 10-13. . . . . . . . . . . . . . . . . . . . 74

Figure B-1: Mary’s House — Gantt Chart with Milestone and Critical Path. . . . . . 76

Figure B-2: Mary’s House — Milestone Log. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77

Figure B-3: Mary’s House — Personpower Loading Chart. Plan Versus Actual. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78

Figure B-4: Mary’s House — Expenditures Chart.Plan Versus Actual. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

Figure C-1: Practical Example Layout. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82

Figure C-2: Example Sticky Note. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

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List of figures

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We deal with many projects in ourlives—at work and at home. For example,a family vacation is a project that oftengoes awry. The vacation project team isthe family. There’s a lot of planning andpreparation, which can make or break thevacation. When the family returns home,there’s lots of work to be done in cleaningup and closing down the vacation. Whenexecuting the family vacation, we don’talways get to where we wanted to go, wecan’t keep to our schedule so we misspart of our vacation, and we end upspending a whole lot more money thanwe intended. The problems come fromnot doing effective planning and notexecuting against the plan. Because wedon’t do these important behaviors, ournext vacation is as bad as the last. Inshort, we don’t learn from our mistakes(and successes).

How can we develop an effective andefficient project plan? Twelve fairlysimple tools for use in ten projectmanagement process steps will help uswith simple projects and also with fairlycomplex projects. The tools will help usensure we reach our objective, on time,and within a reasonable cost. This booklays out these ten process steps andassociated tools in a logical sequence.

This book includes an example projectof constructing a house to illustrate howthe tools work and how they’reconstructed. The example shows how theproject manager incrementally adds asmall amount of information to each toolto advance to the next tool in thesequence of tools.

The example tools aren’t intended tobe complete or accurate for building ahouse, but instead to be representativeand illustrative. The illustrations of theexample tools are confined to one page,which highly restricts completeness andaccuracy. The objective is for the readerto see how the form of the tool wouldlook in practice. This book highlights tensteps in the project management processand describes and illustrates the twelvefundamental project management tools aproject manager needs for the process.

The authoritative document for aproject manager to follow is A Guide to theProject Management Body of Knowledge,PMBOK Guide, Third Edition. Two usefuldefinitions from the PMBOK Guide are:1) “A project is a temporary endeavorundertaken to create a unique product,service, or result.” And 2) “Projectmanagement is the application ofknowledge, skills, tools and techniques toproject activities to meet projectrequirements. Project management isaccomplished through the applicationand integration of the projectmanagement processes of initiating,planning, executing, monitoring andcontrolling, and closing. The projectmanager is the person responsible foraccomplishing the project objectives.”

Some years ago, to support teachingproject management to collegeengineering students, we displayed thetools for ten project management processsteps as forms to be filled in to plan aproject. These tools and their forms werethen used in senior design and

Preface

international design courses. The formswere filled in for planning the project andthen used to incorporate data whenexecuting the project. The bottom line inthe project management process is tocompare the execution of the project(actuals) against the planning of theproject (plan) to recognize the difference(variance) so we can learn to managebetter in the future.

Teachers and students found that thetools were valuable in the future whenthey were responsible for projects in theworkplace. With the advent of thecomputer, many of these tools becameautomated. However, many students andeven experienced project managers don’tknow what’s behind the automatedtools—where they come from and whatthey mean. We intend for this book toexplain where the tools came from andwhat they mean. Computer packages forproject management build projectinformation from the first tool used in theproject management process to the last byadding input information supplied by thesoftware user—the project manager. Thisbook is based on and captures thisadding of information for building theproject management tools in sequence.

The text of this book emphasizes thepurpose and use of each tool and the dataneeded to produce the informationportrayed by the tool. The accompanyingfigures show a typical format for theinformation portrayal and the house

construction example according to thatformat. In producing the houseconstruction examples for the toolformats, we used Microsoft Project andExcel to help with calculations, to displaythe example tools, and to check ourselvesthat all tool examples are consistent. Mostproject managers don’t use a singlesoftware package, but draw on thesupport of any software that most easilyand effectively produces the neededproject management tools.

The book contains five appendices.The purposes of the appendices are: 1)to show several project management toolsin greater detail than is reasonable for thesingle-page figures in the text, 2) toemphasize and illustrate the absolutenecessity of including plan, actual, andvariance data in the tools, 3) to suggest ateaching technique for learning theproject management tools that has beenhighly successful for us – especially incorporate and government settings, 4) toprovide a tool for monitoring a projectqualitatively, and 5) to provide tear-outversions of the project-management-toolformats suitable for reproducing.

In this book, the tool formats and theexamples focus on the planning activityin project management. To be morecorrect, all data supplied in the tools,whether graphical or tabular, shouldinclude plan, actual, and variancecolumns (tables), lines, or bars (graphs).

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Preface

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First, the motivation for the substance ofthis book came from the need to supporta class taught both in the university andindustry on the tools of projectmanagement. Second, the idea ofdisplaying generic forms for the projectmanagement tools followed by anexample using these forms originatedfrom effective teaching methods.

The origin of the book started in themid-1980s for supporting a researchproject organization at Virginia Tech (TheManagement Systems Laboratories) andthe senior design classes and theinternational design classes at VirginiaTech. The example projects used in theoriginal version better fit the interests ofuniversity students. One of the projectsused came from Dr. Brian Kleiner, and heused the resulting document in his seniordesign classes. In so doing, he providedinput and improvements to the originalversion.

The example forms for the houseconstruction project and the appendixincluding the Microsoft Project output forthat example were developed andproduced by Michael Sallada. Much ofthe background for determining houseconstruction tasks came from the book byDave McGuerty and Kent Lester titledThe Complete Guide to Contracting YourHome. The point of using thisconstruction example is that being ageneral contractor is essentially being theproject manager in constructing a house.We wanted to use an example that almostany professional can relate to.

The writing of a book requires thewatchful eye and concerned focus ofsomeone who is knowledgeable in thesubject. Pedro Mendes provided manyhelpful changes and improvements to thebook.

Michelle Peña of Capitol Publishingprovided the desktop publishing topresent the professional appearance ofthe book.

Acknowledgements

What is project management?

A project ends.

In a project, we intend the work to befinished and we’re quite aware of thatfact. Success or failure of a project isdetermined when the project iscompleted—when the project ends. Theproject manager is responsible forunderstanding the definition of the end ofthe project and for reaching that end.Without an intent to finish, there is noproject. Projects are oriented toward agoal, a result, an objective, a milestone.The end of a project is a tangible outputthat can be measured.

A project changes a process.

A project always changes a process. Aprocess is different from a project in thata process continues over time doing thesame things. A process only ends withabandonment, usually due to failure orobsolescence because the process is nolonger needed. We don't start a processwith an intent to end. However, weintend to end a project.

A project is unique.

A project is a unique piece of work. Noproject is exactly like any other. A processtends to be repetitive; a project isn'trepetitive. A project is unique.

A project is constrained.

Because of the ending and uniqueness ofa project, the project manager facesconstraints around the output at that end.The classical constraints are time, cost, andperformance. The project manager mustschedule to work against the endaccording to the time constraint. Theproject manager must allocate andmanage resources against the end asconstrained by cost. The project managermust scope the work and ensure continualand competent performance to obtain aquality product or output at the end.

The constraints are interrelated.

If one constraint changes, at least one ofthe other constraints must change. For

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1

Figure 1. The traditional project management triangleshows the interrelatedness of the project constraints.

example, if the time constraint isincreased (less time), the cost willincrease and/or the scope will beadjusted. These interrelated constraintsform the traditional project managementtriangle shown in Figure 1.

A project manager makes decisionswhile playing many roles.

Management is decision making. Allworkers make decisions, and in this way,manage. However, project managers playa variety of roles in which they makecrucial decisions. These roles includetechnician, supervisor, leader, coach,problem solver, salesperson, politician,conflict resolver, negotiator, andcommunicator.

A project manager balances client andcompany needs.

The project manager is between “a rockand a hard place.” The project managermust balance delighting the client andmaking a profit for the company. Projectmanagement tools help the projectmanager achieve this balance. In a multi-project environment, the project managermust share corporate attention, priority,and resources with other projectmanagers. Without skills and tools, theproject manager will typically fail atmaintaining these delicate balances.

Also, there's the “other hard place.”That's the project team. The projectmanager delights the client, makes aprofit for the company, and motivates theteam. Project management isn't easy.

Project management tools make a difficult job easier.

In addition to the adage that “perfect isthe enemy of good,” the project managercan’t manage by the “seat of his pants”—especially with the intensity ofcompetition today. Competitive success ismeasured in very small increments.Nobody ever said project managementwas easy. But, project management toolssure make the job easier. In virtually anyproject, project management tools willuncover hidden opportunities for moretime, more funding or resources, andmore flexibility in acceptable results.

Tools address constraints.

The project manager must be flexible andresilient, yet disciplined. The projectmanager needs tools that supportdefining and reaching the end; and theproject manager must develop skill inapplying the tools. Each projectmanagement tool assists the projectmanager according to the constraints oftime, cost, and performance, taken two ata time. For example, a projectmanagement tool would assist inachieving performance against time oragainst cost.

Project management keeps a project ona defined path.

Project management tools are used forplanning, execution, and verification. Aproject will wander aimlessly withoutadequate planning. A project will get offa planned track and use unnecessaryresources if not executed well. A projectwill fail without good verification. Thedefined path the project manager mustfollow is the project management process.

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Chapter 1

While success or failure of a project ismeasured by others at the end, success orfailure is managed at the beginning andin the middle by the project manager. Theend, or even near the end, is too late toeffectively manage success. Therefore, the

project management tools are used toensure success by starting right andworking smart. In project management, aproject manager makes decisions forplanning, execution, and verification forthe project.

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Chapter 1

A selected sequence ofproject management tools

supports planning, execution,and verification.

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2

A project manager must plan the projectand figure out what he or she intends todo to bring the project in on schedule,within cost, and meet the needs of theclient. Then, the project manager mustexecute the project using the plan as aguide. Unfortunately, it’s impossible toexecute exactly against plan. Stuffhappens. A good plan comes from goodestimating. But, even a good estimate isstill an estimate. Therefore, to managewell, the project manager must verifyhow well the execution met the plan.Verification is accomplished throughmanaging the variance between actual(execution) and plan.

Verification helps the project manager1) know where the project execution isrelative to the plan so, if there’s animpending problem, he or she can dealwith the problem early and 2) learn theunpredictable nature of projectmanagement so he or she can plan andexecute better on the next project.

The plan-actual-variance rules forgood project management are exactlycorrelated to the famous Plan-Do-Study-Act Cycle (PDSA Cycle) for total qualitymanagement. (W. Edwards Deming, TheNew Economics for Industry, Government,Education. MIT CAES, 1993, p. 135.)Figure 2 shows this cycle. Thecorrelations are clear.

Figure 2. The PDSA Cycle provides for continualimprovement and learning.

In planning, the project managerfigures out what he or she intends to do.In doing, the project manager does whatwas intended to the best of his or herability. In studying, the project managercompares execution against plan (actualsagainst plan) to determine how well he orshe did what was intended. In acting, theproject manager uses what he or shelearned while studying so he or she canimprove the planning and doing for futureprojects. The PDSA Cycle is crucial forthe project manager’s professionaldevelopment.

Project management tools support theplanning, execution, and verificationparts of managing the project. The toolswill typically contain the ability and theformat for observing plan, actual, andvariance. The tools individually help theproject manager with verification. Thetools in total help the project managerwith validation. While verification isabout whether we do the project well,validation is about whether we do theright project. That is, in verification weensure we met the needs of the project; invalidation we ensure the project meetsthe needs of the client.

Project management tools haveevolved through experience. That is, wedetermine a helpful tool through theefforts of project managers trying tomanage their projects well. We don’tdevelop tools by theorizing what willwork. In large complex projects such asthe NASA space program projects andmilitary defense platform projects, projectmanagers have developed rathersophisticated tools. However, relativelystraight-forward tools do quite well forthe vast majority of projects. We’ll focuson these straight-forward tools here.

There are project managers who usetools to plan the project with the soleobjective of preparing a proposal for theproject. Then they neglect to capture theactual data during execution and to trackthe execution against the plan. Also, thecontract for a project often is differentfrom the proposal. A good projectmanager will 1) use the planninginformation for writing a responsiveproposal; 2) adjust the plan to match thecontract; 3) carefully incorporate the datarepresenting actual activity; 4) monitorand track the variance between the actualactivity and the planned activity; 5)adjust resources, schedule, and scope as aresult of recognizing the variance; 6)verify that the project was done well; and7) validate that the project does indeedmeet the need and expectations of theclient.

There are project managers whomanage their projects using only financialdata—and often only bottom-linefinancial data. By not tracking financialdata for individual tasks within theproject, the project manager misses thedetails that warn him or her of upcomingissues. By not assigning (planning) andtracking human, material, machine, andcomputer resources for individual tasks,the project manager loses the detailedinformation needed to reassign andcontrol resources during the conduct ofthe project. By not tracking schedule andperformance data for individual tasks, theproject manager isn’t aware of all theslack in schedule or performance. Thislack of awareness leads to missedmilestones and non-compliance withproject requirements.

The good news is that for almost allprojects other than the sophisticated


Chapter 2

NASA and military projects, a ratherbasic set of tools works quite well. Inaddition, no matter how simple orcomplex the project, this same set of basictools is needed. This basic set is neededfor sophisticated projects too, butextensions of or additions to this basic setare used.

This basic set of tools is used in a ten-step process for planning a new projectand monitoring progress against thatplan. Each step of the process requires aparticular tool. This process andassociated tools are presented here—insequence. The sequence is based on thefact that the first step in the processrequires fundamental initial information.Each subsequent step involves a tool thatrequires a small amount of additionalinformation to the tool of the previousstep.

In this document, each step isintroduced with a purpose anddiscussion of why and how we use thatstep’s tool. Following the discussion,we’ll include definitions you’ll need anda procedure to lead you through thedevelopment of the information requiredby the tool. The first figure in eachmodule contains forms for producing thetool. Then, we’ll use additional figures toshow a real-world example for using thetool. The example is for constructing ahouse. This generic project will help youunderstand the final form of each tool.

The project planning process isiterative. Later steps will identify gapsand overlaps in earlier steps. You’lliterate until you have your plan “tightenough” to satisfy your needs andobjectives as a manager. Project planningtakes time up front when you’re mosteager to get started on executing the

work. However, this is definitely a “payme now or pay me later” situation. Up-front planning will save you time, money,and improve quality throughout theproject.

Project Scenario

As you work through each of the processsteps and the associated tools, we’ll applythe steps and tools to an example project.We’ve chosen a project that shouldappeal to each of us and perhaps beuseful to some of us. We’ll consider aproject for managing the construction of ahouse. Here’s the story of the exampleproject.

Your sister, Mary, is seven years olderthan you. Not only have you alwayswanted to please her, but she has alwaysbeen a bit of a perfectionist. Over dinner,Mary has asked you to be the generalcontractor of the house of her dreams.She has been dreaming of her house formany years and believes she knowsexactly what she wants and what willmeet her needs for many years to come.

Mary has asked you to be the projectmanager for her house because of yourexperience as a civil engineer. As generalcontractor/project manager, you’ll needto meet her needs and expectations, selectthe housing site, select the layout or thedesign for the house, work through allpermits and site development, identifyand manage a range of subcontractors,schedule and integrate the efforts of allconstruction workers, and inspect allprogress to ensure the building inspectorswill be satisfied. You won’t participate inthe construction of the house. You’ll hirepeople and contract subcontractors to dothat.

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Chapter 2

You’ve met with Mary to capturewhat she wants. Here’s what youunderstand at the moment. She wants tobe out of her present house in eightmonths. She wants a view, but wants tobe as close as possible to the city of onemillion people. She likes large rooms,likes to entertain, and have family fromaround the country visit. She has threechildren aged 17 (a girl), 13 (a boy), and 8(a girl). She’s a gourmet cook and likes toserve large dinners. Her husband, Harry,loves to garden and is big on cook-outs.

Finally, she has a budget of $500,000.

While you’re eager to take on thisproject, you’ll have to schedule your timecarefully. You have a demanding day job;but you’re free on the weekends andmost evenings. You travel about 1-2nights a month.

In applying the project managementtools to this example, you’ll go by thename of Taylor. Therefore, Mary is theclient and Taylor is the project manager.


Chapter 2

Ten project managementprocess steps and associated

tools balance clientand company needs.

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#

The first part of the set of tools focuseson meeting the client’s needs.

The client wants his or her needs andexpectations met. The project manageruses seven of the twelve basic projectmanagement tools representing five ofthe ten project management process stepsto meet the client's desire. These tools are:1a) the scoping agreement and 1b)requirements statements, 2) the task list, 3)the work breakdown structure (WBS), 4a)the Gantt chart and 4b) network diagrams,and 5) the milestone log. Taken together,these tools help the project managerdetermine the client’s needs and thenstructures those needs against time,schedule, and performance.

The second part of the set of toolsfocuses on meeting the company’sneeds.

The company wants its needs met. Theseneeds are heavily oriented towardfinancial return. Another need isimproved expertise and continualprofessional development of thecompany’s project managers. Asuccessful project meets both the needs ofthe client and the needs of the company.The project manager uses five of thetwelve basic project management tools

representing five of the ten managementprocess steps to meet the company’sfinancial needs. These tools focus onresources—primarily the human resourceand the financial resource, which is thecommon denominator for all resources.These tools are: 6) the responsibility matrix,7) the personpower loading chart, 8) thepersonpower loading histogram, 9) theexpenditures chart, and 10) the cumulativebudget.

The tools build on each other insequence.

The ten sets of twelve tools to support theten project management process stepsimprove the professionalism of theproject manager and project team. Thesetools will increase communication, defineexpectations of team members, keep theproject on track, and serve as a reminderof both the details and big picture of theproject.

Figure 3 shows the sequencing of thetwelve project management toolsaccording to the ten project managementprocess steps. Preceding the sequence ofproject management process steps are theclient needs and expectations. The entireprocess proceeds from the needs andexpectations. In the end, the project

3

management process steps must supportthe project manager in meeting thoseneeds. By adding definition to the needsand expectations, the project managerbegins the project management planningprocess and provides the informationneeded to operationalize the first projectmanagement tools. As the projectmanager develops more and moreinformation about the project, he or sheoperationalizes more and more of thetools.

There are project managementsoftware packages on the market. Thesepackages automate the set of projectmanagement tools essentially in the samesequence as we’ll discuss them here. Anadvantage of the software packages isthat the project manager needs to input apiece of data one time and the packagepopulates any and all tools that use thatdatum. The disadvantage is that projectmanagers may not know where the toolscome from (information-wise) and whatthe tools do. If you understand the tensteps and associated tools discussed inthis document and how those tools worktogether, you should use projectmanagement software to assist you.Project management software is designedfor professionals who understand thebasic project management process. To useproject management software effectively,you must first understand the tools andprocess being automated through thesoftware.

Use the first seven tools within the firstfive process steps to manage meetingthe client's needs.

Once a need arises in the client’sresponsibilities that leads to a project, thefirst step of the project managementplanning process is the effort to capture

exactly what the client needs and expects.The first step is foundational. If this stepis neglected or not done correctly orcompletely, all other steps will magnifythe error or misconception. The first pairof tools is the scoping agreement (1a) andthe requirements statements (1b). Thescoping agreement (1a) captures the basicinformation about what the project is,what the client expects, what the projectmanager is to provide, and what theproject manager needs from the client tobe successful.

We can say that understanding theproject includes content and logistics orsupport. The technical requirementsrepresenting the content are captured inthe requirements statements (1b). While thescoping agreement is a general scope of theproject in terms of what is needed, wherethe project came from, and what theproject leads to, the requirementsstatements add to that information bygoing deeper into the content. Whatspecifically will the output of the projectlook like and do? What are theenvironmental and institutionalconstraints on the output?

Once we capture the information onclient needs and expectations in the firstpair of tools, we next add in the tasks oractivities that will produce the projectoutput and meet the needs andexpectations. This tool is the task list (2).Any project is accomplished throughpieces of work, or tasks. We can look atthe project as a number of broad tasks.Within each broad task, we can identifysmaller, specific tasks. When we get tothe smallest coherent piece of work, ortask, we can observe the task as anactivity and associated event. The task listcaptures all the tasks of the project,whether seen as broad or specific tasks.


Chapter 3

11Newport Group, llc

Chapter 3

Given the task list, we add in theinformation of associations or sequencesof tasks. To ensure each task getsconsidered and completed, we need tostructure the tasks so we can identifyhard-to-discern tasks and to monitor thecompletion of all the tasks. This tool is thework breakdown structure (3), or WBS.

When we know the tasks and theirassociations or structure, we can add inthe information of timing and sequence.During how long a period will wereasonably have to complete the task?This information is captured in the Ganttchart (4a). The timing information for theGantt chart is determined as duration, noteffort. Which tasks have to be done beforewe can do other tasks? This informationis captured in a network diagram (4b). Thenetwork diagram adds the information ofprecedence.

The Gantt chart tells us the duration ofthe activities of the tasks. For eachactivity with its duration, there’s an endor an event. That is, we do the activity toaccomplish an event. The totality of theevents add up to the project output. Someof the events are deliverables and aredelivered to the client. Those events thatare significant, including all deliverablesand more, are identified as milestones.The tool for designating and trackingmilestones is the milestone log (5).

Historically, these three tools, theGantt chart, the network diagram, and themilestone log, are three separate anddistinct tools. (They weren’tdiscovered/developed simultaneously.)Many popular project managementsoftware packages, such as MicrosoftProject, incorporate these three tools intoa single tool, usually called the Gantt

chart. This computer-generated chartshows each task with duration,sequenced with other tasks that must becompleted before, after, or concurrentlywith that task, as well as the milestonesderived from the sequence of tasks.

At this point, we’ve captured anddeduced the information we need tomake sure we know what the client needsand expects and that we’ve structured theproject to deliver on those needs on time.Now, we have to consider our companyby focusing on resources needed to dothe tasks and deliver the deliverables.

Use the last five tools within the last five process steps to manage theresource use and financial return for the company.

The primary resource for any projectmanager is people.A project managerneeds the right people, with the rightskills, doing the right tasks. Given the tasklist and the work breakdown structure, weadd in human resource information. Wedetermine what effort (different fromduration) is needed to accomplish thetask on time. The tool we use is theresponsibility matrix (6). The responsibilitymatrix assigns people to tasks accordingto the roles and responsibilities needed tocomplete the tasks.

When we know who is working onwhat task, we add in the information ofwhen those people will put in their effortduring the duration of the tasks shown inthe Gantt chart. We use the personpowerloading chart (7) to make sure we have allthe people we need when we need them.

One issue we have to face is notexpecting more effort out of a person or

people than is humanly possible. That is,we have to level the effort so we canefficiently and effectively use people onwhat may be several tasks during theproject or even for more than one project.The personpower loading histogram (8)helps us level the human resources.

In addition to people, we spendmoney on other resources to accomplish atask. We use the expenditures chart (9) toadd in the information relating toexpenditures and to translate all resourceexpenditures into the commondenominator of money.

Spending is a crucial issue when wefocus on satisfying the needs of ourcompany. The key to spending is thefinancial bottom line. Did we completethe project within the amount of moneyprovided by the client to cover all directcosts, indirect costs, general andadministrative costs, and a reasonable

profit? The cumulative budget tool (10)helps us plan and know where we arerelative to the bottom line.

By working sequentially through theten project management process stepsusing all twelve tools and iterating asneeded, we balance meeting client andcorporate needs. Typically, as youconsider resources, you'll want to re-evaluate schedule. This refinement of thetools through iteration helps ensure we'reboth efficient and effective in our work.

Look again at Figure 3. This timeconsider the totality of the informationcaptured and available for good decisionmaking (good management). Eventhough the process as shown in Figure 3is once-through, in reality we manageusing feedback from later process stepsand associated tools to improve the earlysteps and tools.


Chapter 3


Chapter 3

Figure 3. We add small amounts of information to each project management tool to provide fot the next tool in the sequence.

The scoping agreement (1a)captures broad project

expectations.


#

The purpose of the scoping agreement (1a)is to define expectations of the project’swork, responsibility, and accountability.The bottom line is that if we know what’sexpected, we’ll tend to meet theexpectation. But, first we must know. Theexpectations of the client and the projectmanager must be known and sharedamong the client, project manager, andthe project team members. We use thescoping agreement to succinctly captureand share these expectations.

In a scoping agreement, the doer andthe receiver agree on the scope of thedoer’s work. External to the project team,the doer is the project manager and thereceiver is the client. The doer providesthe project output and the receiverreceives the output that meets thereceiver’s expectations. Internal to theproject team, the doer is the task manageror the worker and the receiver is theproject manager or the task manager. Inthis way, scoping agreements can behierarchical, thereby distributingexpectations from the client to the projectteam members doing the work.

The scoping agreement can be a one-page statement that includes a broaddefinition of the scope of work (SOW),but it is not the same as the SOW.Contractually, the SOW is usuallydetailed and can require several pages ofstatement. The purpose of the scoping

agreement is to state the big pictureexpectations, not the details.

The agreement is a crisp 250-wordstatement (easily read in one minute). Thescoping agreement is the beginning ordefinition phase of the managementprocess and gives a firm point ofreference for project efforts. An importantpart of the scoping agreement is to transferor assign responsibility andaccountability of an effort to the persondoing the work.

The scoping agreement gives the projectmanager a defined agreement of what heor she is to do. The key is for both doerand receiver to agree on the time, cost,and scope of the effort.

We define the form of the scopingagreement by identifying four specificparagraphs and a total of ten specificpieces of information required for theparagraphs. By writing a sentence or sofor each of the required pieces ofinformation, you’ll end up with the rightinformation at the needed level of detail.

After doing one or two scopingagreements and using the outline, thepreparation of the agreement can be doneeasily in fifteen minutes. You need tothink through the content of theagreement anyway to effectively manage.You’ll probably choose not to do ascoping agreement for a piece of work

4


Chapter 4

taking less than an hour to perform—unless that piece of work is crucial to theproject output. Although doing a scopingagreement for a small piece of work mayseem a small return on investment oftime and effort, the importance of sharinga clear understanding of expectationsreaps huge return as the projectprogresses. It has been estimated that thetime and effort needed to correct amisunderstood expectation increasesexponentially with the time in the projectat which the misunderstood expectationis discovered.

Definitions:

Doer - Person managing project, task, ordoing the project work.

Receiver - Person receiving the projectresults.

Using the outline in Figure 4.,consider a scoping agreement to broadlydefine the work agreed on between thedoer and receiver for any project. Forreference, review the house constructionexample scoping agreement in Figure 5.You can use Figure 4 as a form fordeveloping a scoping agreement for anyproject.

When considering the outline inFigure 4, also consider the followingstatement definitions for each item in theoutline.

I. Identification of general information

1) Identify parties of agreementincluding doer and receiver.

2) Identify the task to be done or theresult of the agreement.

3) Identify what initiated the agreement(e.g., contract, management plan,update meeting, etc.).

4) State what tangible outcome is neededand/or expected by receiver.

5) Identify the funding vehicle or path.

II. Description of the task and what is tofollow the task

1) Describe what the task or result lookslike (be physical).

2) State what follows from completingthe task—what the task leads to.

III. Description of doer and receiverresponsibilities

1) Describe what is provided by doer.

2) Describe what is needed fromreceiver.

IV. Description of background andsupporting information

1) Describe how the project relates to thestrategic plan or direction.

Helpful Hints:

• Doer and receiver sign the scopingagreement.

• Keep the agreement visible.

• Use the agreement to audit youractual activities.

• Use supporting documentation; e.g.,schedule provided by receiver showingthe receiver’s completion expectations.

• Scoping agreements are especiallyuseful in task order contracts.

Figure 4. The scoping agreement is a crisp statement of expectations and work used to initiate a project.


Chapter 4

SCOPING AGREEMENT

Project Name:

Project Manager:

I. Identification of general information.

II. Description of the task and what is to follow the task.

III.Description of doer and receiver responsibilities.

IV.Description of background and supporting information.


Chapter 4

Figure 5. The 246-word scoping agreement establishes the expectations of Mary and Taylor for Mary’s new house.

SCOPING AGREEMENT

Project Name: Mary’s House

Project Manager: Taylor

I. Identification of general information.

During a Sunday family dinner in March, Taylor agreed to be the projectmanager and general contractor for designing and building Mary’s new house.The house for Mary and her family will be situated with a west-facing view andclose to the city. The house will have large rooms and indoor and outdoorfacilities for entertaining and cookouts. Taylor will provide effort as a gift to hisfavorite sister. The total project budget funded by Mary is $500,000. Mary willreimburse Taylor’s out-of-pocket expenses. [82 words]

II. Description of task and what is to follow the task.

The colonial-style house will be a family dwelling with room for entertaining.The two-car garage will be entered on the side of the house. The kitchen,breakfast area, and outdoor facilities will be on the east side of the house. Thehouse will be permitted for occupancy within eight months, provided Maryquickly approves the location and architectural design selected. [58 words]

III.Description of doer and receiver responsibilities.

Taylor will provide house plans for Mary’s review and approval. Taylor willsubcontract for an architect. Taylor will work through all permitting and sitedevelopment, identify and manage all needed subcontractors, schedule andintegrate the efforts of construction workers, inspect all progress to ensure thebuilding inspectors will be satisfied within eight months, and share projectprogress with Mary on a regular basis. Mary agrees to meet with Taylor. Marywill write down her preferences and meet with her family for agreement to beprovided to Taylor at the weekly meeting. [91 words]

IV.Description of background and supporting information.

Taylor is a civil engineer and has the professional experience to serve as projectmanager. [15 words]

The requirements statements(1b) specify what the project

will look like and will do.


#

The purpose of the requirements statements(1b) is to capture, clarify, communicate,confirm, and track WHAT the clientneeds and expects. The requirementsstatements focus on the output of theproject and the capability of the output.What will the output look like and whatwill the functionality of the output be?Requirements statements constrain thesolution space for the project manager.They include capabilities, characteristics,and constraints. If the requirementsstatements are wrong, so is everything elsein the project, including architecture,design, implementation, verification, andvalidation. Most mismatches betweenexpectations and project output resultfrom what the output won’t do asopposed to what the output will do.

The types of requirements statementswe need are 1) contractual ormanagement requirements, including thestatement of work, the required reports,the terms and conditions, etc.; 2)regulatory or environmentalrequirements, including standards,directives, regulations, etc.; 3) technical oroperational requirements, includingperformance, functional, design-to, build-to, etc.; 4) maintenance and support,including preventive and on-the-spotrepair and auxiliary needs that keep theproject output functioning as needed; and4) verification, which tells us when we’rereally finished.

The requirements statements take theform of lists of sentences that include theword “shall.” Use active rather thanpassive voice in the sentences. The word“shall” is more mandatory, whereaswords such as “should” or even “will”are more permissive.

The requirements statements must becorrect, complete, consistent, measurable,testable, clear, and unambiguous. Clarityis important for both legal and practicalreasons. We easily overlook details or arerepetitious. Missing an important detailor including repetitious, overlapping, orambiguous statements is dangerous. Bespecific and complete.

There are a huge number of ways toidentify and capture requirementsstatements. The ways focus on methodsfor eliciting needs and expectations fromthe client or to surface experience ofothers who have successfully completedsimilar projects. The ways includeinterviews, questionnaires, investigatingthe process to be improved, use cases,gap analysis, as-is analysis, examiningartifacts, brainstorming, prototyping, andmany more.

Figure 6 simply emphasizes theimportance of the word “shall.” Adheringto the other characteristics of goodrequirements statements is shown in Figure7 for the house construction example.

5


Chapter 5

Notice the difference between thewords and tone in Figure 5 for the scopingagreement and in Figure 7 for therequirements statements. The requirementsstatements are formal, specific, legalisticstatements. Requirements statements aremore useful for those doing the work.(The scoping agreement is more useful forthose interfacing with the client—eitherinternal or external.) Both the scopingagreement and the requirements statementstaken together help ensure that thosedoing the work produce results that meetthe client’s needs.

Figure 6. Requirements statements mandate what the project output will be and do.

REQUIREMENTS STATEMENTS

A requirements statement shall be correct.

A requirements statement shall be complete.

A requirements statement shall be measurable.

A requirements statement shall be testable.

A requirements statement shall be clear.

A requirements statement shall be unambiguous.

A set of requirements statement shall be consistent.

Definitions:

Requirement – a capability,characteristic, or constraint that must bedesigned and built into the projectoutput.

Helpful Hints:

• Make sure the requirement can bemeasured and verified.

• Make sure the requirements statementincludes only one requirement.

• Don’t get too detailed. Too muchdetail is called requirement creep.The project becomes too constrained.

• Use the word “shall.”


Chapter 5

Figure 7. Requirements statements define the content for Mary’s house.

REQUIREMENTS STATEMENTS

Project Name: Mary’s House


Requirements:

House layout

The house shall be situated on at minimum half-acre lot.

The lot shall have its view to the west (between west-southwest and westnorthwest).

The house shall front to the west (between west-southwest and west northwest).

The entrance, living room, and dining room shall be toward the front of thehouse (toward the west).

The kitchen, breakfast area, and outdoor facilities shall be toward the rear of thehouse (toward the east).

There shall be 3 1/2 bathrooms in the house.

The master bathroom shall be adjacent to the master bedroom.

There shall be two walk-in closets adjacent to the master bedroom.

House details

Each full bathroom shall have a shower capability.

Each shower head shall be between 6’ 6” to 7’ above the tub or shower floor.

Each bathroom shall have a ceramic tile floor.

Permitting

The house shall be constructed under a local housing permit.

The house and property shall meet all environmental and state and localpermitting requirements to receive the occupancy permit.

Etc.

The task list (2)helps reduce gaps and

overlaps in project scope.


#

The purpose of the task list (2) is toidentify the tasks required to completethe project, the needed level of effort, andthe important events (milestones) of someof the tasks.

The scoping agreement defined theexpectations of both the doer and thereceiver for the project. The requirementsstatements define expectations aroundproject content. The next step in projectplanning is brainstorming to create a listof all project tasks. (A task is a definedpiece of work with start and end datesand is assigned to a responsible person).All tasks include activity, and they end inan event. Whenever you have activity,you have an event, and vice versa.Milestones are events with the followingcharacteristics: 1) They’re events youwish to highlight and follow. 2) They’reevents that have clear results or endingpoints. 3) They’re events that aresignificant; they give you a feel forwhether or not you’re behind schedule. 4)They’re events that should not be morethan 10 days apart.

For example, a good milestone mightbe to complete an important weeklyreport. This milestone is a good onebecause it meets all four criteria. Amonthly report could be a poor milestonebecause it may not satisfy the last twocriteria. List project tasks as you think ofthem on the task list. Include all tasks,both big and small, necessary to complete

the project. Then record the effort neededfor each task using your best timeestimate. Complete the task list bydenoting all milestone events with acapital M. You’ll now have a checklist ofall the project’s tasks; and they can beorganized into activities (broad tasks).(Unfortunately, the word “activity” asused in project management can havetwo different meanings—both related totasks. First, a task has activity that leadsto an event. There's a one-to-onecorrelation between a task's activity and atask's event. Second, often we grouprelated tasks into broad activities. In thisbook, we'll tend to use the term “broadtasks” for this second meaning.

As you work through upcoming toolsin the project management process steps,you'll often uncover additionalinformation affecting your level of effortand milestones. In this way, the projectmanager will iterate through the projectmanagement tools a number of times toensure consistency and eliminate gapsand overlaps.

Using the outline in Figure 8, considera task list to outline the tasks you can findin or extrapolate from any project. Don’tforget to distinguish the more importantevents (task endings) by designatingthem as milestones. For reference, reviewthe completed task list for the houseconstruction project in Figure 9 andnotice which tasks constitute milestones.

6


Chapter 6

You can use Figure 8 as a form fordeveloping a task list for any project.

Note that at step 2 (the task list step)you’re constrained by the scopingagreement and the requirements statements(the project boundaries from step 1). Instep 2, you’ll define your tasks, level ofeffort for each task, and milestones fortasks as appropriate. A decision you’llneed to make is: How small should Idivide up the broad tasks?

Figures 8 and 9 illustrate a very earlystep in the planning of a project. The mostdifficult part of a project is the executionof the project (doing what it is youintended to do). Execution is constrainedby reality. In the task list and allsubsequent project management tools, thetool is used both for planning and forexecution purposes. Typically, for anyparameter the project manager uses (e.g.,due date, cost in dollars, effort in hours,duration in days, etc.), expect to see bothplanning estimates and executionactuals—usually as two separate columnsof numbers in a table or two bars or lineson a graph. In addition, expect to see theresults of comparing the planningestimates to the execution actuals,expressed as variance.

We don't show the actuals andvariance columns in the figures in thechapters for the tools because of limitedspace in these figures. Instead, weemphasize and illustrate the inclusion ofplan, actual, and variance tabularcolumns or graphical bars and lines inAppendix B of this book.

Also, because the task list is so early inthe sequential steps of the projectmanagement process, expect the planningestimates to be updated during the

planning process as the project managerdevelops more of the project plan throughsubsequent process steps and theassociated project management tools.That is, as with any effective planningprocess, the project management planningprocess is iterative. As the projectmanager understands his or her project atdeeper and deeper levels in steppingthrough the sequential process, he or sheis able to define the information in theearly steps better. The forms andexamples in this book highlight theplanning activity, not because planning ismore important than execution orcomparing planning to execution, butbecause looking mostly at planningmakes a simpler presentation andtherefore is easier to understand.

Definitions:

Task - A defined piece of work.

Follow these guidelines as youcomplete your task list:

1. What are the tasks for this project?List them randomly as you think ofthem in the task column of the task list.Remember, all tasks end with anevent.

2. What is the level of effort needed foreach task? Record this informationunder the effort column in the task list.

3. Are any events important enough tobe milestones? If yes, put an M in themilestone column.

Helpful Hints:

• Consider scoping agreement andrequirements statement boundaries andconstraints.

• Consider effort to be the number oftime units you estimate will berequired to complete the task.

• First list major milestones. Then, asyou develop additional project

management tools in the sequence,you'll iterate the process for moredetailed milestones.


Chapter 6


Chapter 6

Figure 8. The task list is a simple listing of everything you need to complete to accomplish the project objectives.

TASK LIST

Project Name:

Project Manager:

Task Effort Milestone


Chapter 6

Figure 9. The house construction example task list shows how to include all the tasks to accomplish the project objectives.

TASK LIST

Project Name and Number: Mary’s House; # 6


The work breakdownstructure (3) organizes

project tasks intorelated groups.


#

The purpose of the work breakdownstructure (3) is to logically designatebroad tasks that include and gather tasksfrom the task list, identify subtasks, sub-subtasks, etc., and develop identifiers forthe elements of the structure. The taskscan be grouped in any number of ways:by function, by process phase, bygeography, etc. The grouping is donehierarchically, and the levels of thehierarchy don’t have to be grouped in thesame way. For example, broad tasks canbe separated functionally, one of thebroad tasks can be divided into subtasksseparated by process phase, and a sub-subtask separated by function again.

The next planning step is to logicallygroup all those tasks you identified indoing the task list into broad tasks. Abroad task is a logical grouping of tasks.A structured grouping of tasks intocategories of broad tasks, subtasks, sub-subtasks, etc. is called a work breakdownstructure (WBS). The WBS is a treediagram of the task list and is displayedeither in an outline format or anorganizational-chart type format. TheWBS shows the relationships amongindividual tasks and gives structure tothe task list. After listing the tasks in abroad task, look for tasks you may havemissed. If a task can be divided in timeand responsibility, break it into subtasks.

Divide the tasks into as many subtasks asnecessary to reduce tasks to manageablesize. Each subtask or sub-subtask shouldbe small enough to control, but not sosmall it’s trivial. If you find more thannine subtasks under a task or nine sub-subtasks under a subtask, you have toogreat a span of control. Ten or moresubtasks should be logically divided intotwo or more tasks each containing someportion of the original number ofsubtasks.

The task list specifies the tasks, theestimate of the needed level of effort, andthose tasks ending in a milestone. In theWBS, we’re only interested in the tasksthemselves. We’ll use the level of effortand milestone information from the tasklist in other tools. The information we’readding at this step is the association orstructural logic of the tasks from the tasklist. If the project is simple, only a fewproject divisions are required. Forcomplex projects, construct a detailedWBS. Composing a good WBS is animportant planning step, because it’s thebasis of the performance, or scope,constraint for the rest of the steps andtheir associated tools. If in doing afollowing project management step, youdiscover a task you missed, come back tothis step and add it.

7


Chapter 7

Using the outline in Figure 10,consider a WBS for any project. Forreference, review the completed WBS forthe house construction project in Figure11. You can use Figure 10 as a form fordeveloping a WBS for any project.

Note that at the WBS step you usedthe tasks from your task list. In this step,you’ll add groupings to the tasks so youcan find gaps and overlaps. This stepruns a sanity check on your task list andsets up the next sets of tools. You’ll wantyour WBS to be as good as you can makeit at this point. In later tools, you’ll matchthe WBS against time, people, materialsand equipment, funding, andspecifications.

Definitions:

Broad task - Logical grouping of tasks.

Follow these guidelines as youcomplete your WBS.

1. What are the primary broad tasks youneed to accomplish?

2. What tasks, subtasks, sub-subtasks,etc. fall under each broad task? Listthese tasks in an outline format (ororganization-chart type format) toshow broad tasks, subtasks, sub-subtasks, etc.

3. Develop an identifying number foreach broad task, subtask, and sub-subtask by numbering the project 1.

and the broad tasks 1.1, 1.2, etc. Thetasks under broad task 1.1 arenumbered 1.1.1, 1.1.2, etc. Use thisscheme for numbering all entries inyour WBS. (Actually a project mayneed to start with a number like 2., 3.,etc. so several projects can bemonitored together.) Based on thespan-of-control managementprinciple, if you approach ten (doubledigit) subtasks under a broad task,sub-subtasks under a subtask, etc.;then you should set up another levelin your hierarchy.

Helpful Hints:

• List major categories of tasks first,then subtasks.

• Use short identifiers with tasknumbers.

• Modify the task list as needed.

• In other books, you may find the term“activity” used where we use the term“broad task.” We tend to reserve theterm “activity” to be that part of a taskthat corresponds one-to-one with thetask's event.

• Make sure you don't have more thannine subtasks in a task, nine sub-subtasks in a subtask, etc.


Chapter 7

Figure 10. The work breakdown structure organizes tasks into related groups.

WORK BREAKDOWN STRUCTURE

Project Name and Number:

Project Manager:

x.1 x.1.1 x.1.2 x.1.3 x.1.4

.

.x.1.n

x.2 x.2.1 x.2.2 x.2.3 x.2.4

.

.x.2.n

x.3 x.3.1 x.3.2 x.3.3 x.3.4

.

.x.3.n

x.4 x.4.1 x.4.2 x.4.3 x.4.4

.

.x.4.n


Chapter 7

WORK BREAKDOWN STRUCTURE



Figure 11. The work breakdown structure for the house construction project organizes tasks into related broad tasks.

The Gantt chart (4a)lays out task durations

over the time of the project.


#

The purpose of the Gantt chart (4a) is toplace tasks and activities (groups of tasksgathered into broad tasks) as horizontalbars against a time line to show start andend dates for the tasks. With thedurations laid out on a time line, theproject manager can look for conflictingneeds for resources and begin to considerthe problems with task overlaps.Sometimes milestones are superimposedon the horizontal bars. (Note: The Ganttchart historically doesn’t show milestonesor the precedence relationships amongthe tasks.) The Gantt chart shows thetiming of the big picture from the detailsof the work breakdown structure.

All projects must have a timeschedule. Scheduling forces us to figureout the sequence of tasks and the time tocomplete each task. Gantt charts are usefulin scheduling a project. They’re easy todevelop and use and give us a quickoverview of the project.

A Gantt chart is a horizontal bar chartto graphically portray WBS task duration.A Gantt chart might be called a graphicalWBS.

A Gantt chart shows whether theproject team is meeting the schedule ornot. The chart can be color coded to notewho is responsible for what task. You caninclude symbols to depict start and enddates, milestones, or other relevantinformation. The strength of the Ganttchart is its simplicity. Include only

information readily depicted on the chart.You’ve now sequenced and scheduled theproject’s tasks. (If you’re responsible for anumber of projects, you can do a multi-project Gantt chart by putting projects inthe stub (y-axis) of the chart. You can alsoadd vacation and training periods. Whatyou get is a master schedule.)

The Gantt chart is an important toolnot only in planning the project schedulebut in managing the execution of theproject so that the project result isdelivered on time. Even though theactuals aren’t shown in the example forthis chapter, remember the importance ofshowing actuals and thereby discerningvariance in important projectparameters—task start and end dates inthe case of the Gantt chart. The actuals areshown as bars above or below theplanned durations. The variance isdetermined by comparing the planneddurations to the actual durations. You cansee a more-detailed Gantt chart for Mary’shouse that includes plan and actual inAppendix B.

One of the great values of the Ganttchart is to look at today’s date for a chartcontaining both planned and actualdurations. That is, we can, either in ourimagination or on the chart, draw avertical line at today’s date. All tasks thathave planned end dates before today’sdate and actual end dates after today’sdate portend trouble in the project. If one

8


Chapter 8

of these tasks is instrumental for the startor completion of future tasks, the troublecan flow like cascading dominos throughthe rest of the project and result inmissing the due date for the projectresult.

Using the outline in Figure 12,consider a Gantt chart for any project. Forreference, review the completed Ganttchart for the house construction project inFigure 13. You can use Figure 12 as aform for developing a Gantt chart for anyproject.

Note that at the Gantt chart step youhave task name from your task list andtasks and groupings from your WBS. Thisinformation is shown in the “stub,” orleft-hand column in Figure 12. In thisstep, you’ll add start and end dates toyour tasks. There is some complexity tostart and end dates. For example, we canconsider the earliest or latest start date orthe earliest or latest end date. In any case,we show duration on the Gantt chart.

Follow these guidelines as youcomplete your Gantt chart.

1. What is the total length of the project?Let that time be the length of the timeaxis (x-axis).

2. How long is the shortest task? Letthat time help you set the divisions onthe x-axis. (Use your judgment if youhave a few tasks much shorter thanmost. They’ll show up as points intime—or vertical lines).

3. What are the tasks of the project? Listthem sequentially along the y-axis(either by short title or identifyingnumber). Also, you can choose to listyour tasks sequentially by startingdate or by number.

4. Estimate the duration for each task inyour task list. When does the taskbegin? When does the task end?Represent start date and end date byan empty bar horizontal to the x-axisfor each task. The time between startdate and end date is the duration ofthe task.

Note: When you use the Gantt chartduring the project to see how well you’redoing, you’ll include a solid bar above orbelow each empty bar. Draw in the solidbar to show the progress (percentcompleted) of each task. So the empty barshows plan and the solid bar showsactual. For a short-duration task, shownas a vertical line on the Gantt chart, drawa vertical line under the original line toshow the task was completed. You’ll readabout the use of triangles for milestonesin the milestone log.

The definitions of start date and enddate can be a bit complex. You’ll get a feelfor this complexity in the upcomingchapter. The bottom line is to choose howyou define start and end dates and beconsistent.

Helpful Hints:

• List short identifiers with numbers.

• Determine how you want to definestart and end date.

• Use weeks for first iteration.

• Add in non-project activity that affectsthe project; e.g., vacation or holidayperiods.


Chapter 8

Figure 12. The Gantt chart schedules tasks against time.

GANTT CHART


Project Manager:


Chapter 8

Figure 13. The Gantt chart for the house construction project shows how the broad tasks are laid out over the time span of the entire project.

GANTT CHART

Project Name and Number: Mary’s House, # 6


Note: This Gantt chart shows plan only. As the work is being done, actuals wouldbe included by placing horizontal bars beneath the plan bars. The actuals barswould look graphically different from the plan bars.

The shading in some of the horizontal bars is to identify the “critical path.”In simple terms, the critical path is those bars where the dependence is such thatwe find the smallest cumulative “slack time” on the path. Slack time is the timebetween the end of one task and the start of the next dependent task.

The network diagram (4b)shows dependence and

precedence.


#

The purpose of the network diagram (4b) isto capture and to show how the projecttasks influence one another. The WBSgives us all the tasks for the task list asthey are associated with each other inlogical groups. The Gantt chart showsthese associated tasks against a time lineso we get a sense of overlappingdemands for resources and some sense ofsequencing. Now, we must add in theinformation of dependence. For any giventask, what tasks must be underway orcomplete before this task can beundertaken and what tasks will dependon this task being underway orcompleted before they can beundertaken?

For example, the WBS in Figure 11tells us we must construct a footing as

part of the concrete (group of tasks) forthe house. To implement the constructionof the footing, we must layout on theground (survey) where the footing willgo, dig the trench for the footing, placesteel in the trench to reinforce the footing,and pour concrete into the trench to theproper level. You can’t begin to dig thetrench until the survey is complete. Youcan’t place steel until at least the trenchdigging has started and probablycompleted. You can’t pour concrete untilthe placing of the steel is at least startedand probably completed. You can’t dealwith the stub wall and the rest of thehouse until the footing is completed.Figure 14 shows the sequencing of tasksfor the footing part of the total houseconstruction.

9

Figure 14. We show dependence by drawing anarrow from the task the given task depends on.


Chapter 9

The ideas of dependence andprecedence are related. The precedingtask directs the precedence. Thesucceeding, or dependent, task receivesthe precedence. The project manager canchoose one of several meanings ofprecedence. The most commondependency is Finish-to-Start (FS)dependency. The start of the succeedingtask can’t occur until the finish of thepreceding task. We have three otherchoices. In Start-to-Start (SS) dependency,the start of the succeeding task can’t

occur until the start of the precedingtask—usually with a lag. In Finish-to-Finish (FF) dependency, the finish of thesucceeding task can’t occur until thefinish of the preceding task, often withlead time. Finally, in Start-to-Finish (SF)dependency, the start of the precedingtask depends on the finish of thesucceeding task. These four dependenciesare shown in Figure 15. Note that the SFdependency is shown here forcompleteness, is largely academic, and ishardly ever used.

Figure 15. The different dependencies give theproject manager a range of options.


Chapter 9

When we consider the dependenciesshown in the network diagram, wesometimes determine the amount of timethat can elapse between when we finishwith a preceding task and when we beginwork on a succeeding task. This time isn’tpart of the durations of either task. Wecall this time “slack time.” That is, wehave some slack in our schedule as wedeal with beginning work on one taskthat depends on the work of a precedingtask. Another more-sophisticated projectmanagement tool is the critical pathmethod, or CPM. The critical paththrough the dependencies shown in thenetwork diagram is the path that involvesthe minimum slack time. The critical pathfocuses the project manager on the tasksversus time where the project managerhas the least flexibility. (We can haveslack in funding availability as well; but,that’s another story.)

Often, the network diagram will includethe durations of the tasks as taken fromthe Gantt chart or the level of effort takenfrom the task list. The dependencies take abit of thought—well invested beforebeginning the project.

Using the outline in Figure 16,consider a network diagram for any project.For reference, review the completednetwork diagram for the houseconstruction project in Figure 17. You canuse Figure 16 as a form for developing anetwork diagram for any project.

Note that at the WBS step you havetasks from your task list. The Gantt chartand network diagram steps can beconducted in parallel. The projectmanager needs to look at the schedulingconstraints on the tasks. The individualtasks are related to the total time periodof the total project in the Gantt chart. Theprecedence relationships of an individual

task with any other task (perhaps withintermediate tasks) are captured in thenetwork diagram. You’ll want to iterateback and forth between the Gantt chartand the network diagram. In this step, yougain a broad view of the project overtime. In later tools, you’ll deal withresponsibilities and resources needed toconduct the tasks. For distributing andleveling resources, the scheduling of anddependencies among tasks are crucial.

In both the Gantt chart and the networkdiagram, we deal with start and end dates.The project manager can choose to definethese dates according to his or her ownneeds. This choice influences what ismeant by duration. The duration of a taskcan be from the earliest date the taskcould begin until the latest date the taskcould end. The various choices includeearliest and latest start and end dates. Thekey to durations is to be consistent inapplying the choice.

Definitions:

Precedence – Sequencing of tasks interms of dependence.

Dependence – One task is dependent onanother task such that for the dependenttask to be undertaken, the other taskmust be in process (underway orcomplete).

Earliest start date – The earliest date atask can be started based on dependenceand availability of resources.

Latest start date – The latest date a taskcan be started depending on dependenceand availability of resources.

Earliest end date – The earliest date atask can be finished depending ondependence and availability of resources.


Chapter 9

Latest end date – The latest date a taskcan be finished depending ondependence and availability of resources.

Follow these guidelines as youcomplete your network diagram.

1. Consider each task individually. Whattasks does this task depend on? Whattasks depend on this task?

2. Determine the dependencerelationship for each pair of tasksinvolving precedence. SF, SS, FF, FS?

3. Lay out all the tasks on a chartshowing the precedence relationshipsusing arrows but NO timeline.

4. You can choose to show the taskduration within the task boxes in thenetwork diagram.

5. In sophisticated projects, you can alsoinclude the earliest/latest start/enddates in the task boxes.

Helpful Hints:

• Consider tasks in pairs.

• Lay out the tasks with arrowsshowing dependence to see the entireproject.

• Keep your eye on your Gantt chart asyou do the network diagram.

• Dependencies can’t be worked outwithout iterating through the process.

• Notice in Figure 17, either duration oreffort is included with each task,depending on which is more useful.


Chapter 9

Figure 16. The network diagram shows precedence.

NETWORK DIAGRAM


Project Manager:


Chapter 9

Figure 17. The network diagram for the house construction project shows project flow.

NETWORK DIAGRAM



The milestone log (5)highlights important events

marking deliverablesand other task ends.


#

The purpose of the milestone log (5) is tolist the milestones with their due datesand identify the people responsible forachieving the milestone.

The activities of a project show effortand input to the system. The eventsrelated to the activities show physicalevidence and output from the system.Together, an activity and its associatedevent make up a task.

You want to monitor physicalevidence, not just effort. Events theproject manager wants to highlight andtrack are milestones. The characteristicsand some examples of milestones arerepeated here from the task listdescription for your convenience.Milestones are events with the followingcharacteristics: 1) They’re events youwish to highlight and follow. 2) They’reevents that have clear results or endingpoints. 3) They’re events that aresignificant; they give you a feel forwhether or not you’re on schedule. 4)They’re events that should not be morethan 10 days apart.

The milestone log contains moredetailed milestone information such asthe responsible people, eventdescriptions, and due dates. Allmilestones are characterized by physicalevidence. You want to monitor and trackresults at least as much as you monitor

and track effort (perhaps more so). Uponcompleting the milestone log, you’ll have aschedule to track regular and frequentindications of the project’s tangibleprogress.

Using the outline in Figure 18,consider a milestone log for any project.For reference, review the completedmilestone log for the house constructionproject in Figure 19. You can use Figure18 as a form for developing a milestone logfor any project.

Note that at the milestone log step youhave milestones from your task list andend dates from your Gantt chart. In thisstep, you’ll verify end dates as due datesand add the person responsible for eachmilestone.

When tracking the progress of aproject, the two broad indicators that aproject manager will monitor are theproject expenditures against budget andthe project milestones. The milestonescontain information on the scope of theproject and, through the due dates,information on the project schedule. Bymonitoring progress on expenditures andmilestones, the project manager isconsidering the cost (resources),performance (work scope), and time(schedule) constraints shown in Figure 1.When the project manager tracksexpenditures and milestones, he or she

10


Chapter 10

will be warned of project problems.However, the project manager wants tobe forewarned for project problems—withenough remaining resources and time tocompensate for the problems and keepthe project on time. To be forewarned, theproject manager must track plan, actual,and variance for the project parameters ata more detailed level.

Milestones include performance andschedule—those criteria of great interestfrom the client’s perspective. Later, we'llconsider expenditures—the criterion ofgreat interest from your company'sperspective.

A crucial part of monitoringmilestones is keeping track of themilestone due dates in terms of theplanned due date, the actual completiondate, and the difference between the two(variance). Usually, completion ofmilestones for preceding tasks will affectsucceeding tasks. This influence can beseen in the network diagram. If a projecthas a milestone for an early task in theproject slip by two weeks, that slippagemost likely will affect any tasks that aredependent on the task with the slippedmilestone. So, not only is the fact that themilestone due date slipped importantinformation, but exactly how much themilestone due date slipped (variance) isimportant. Therefore, a more complete(and therefore complex) milestone logwould include planned and actualcompletion dates (due dates) and thevariance. You can see a more-detailedmilestone log for Mary’s house thatincludes plan and actual in Appendix B.

Consider the slack time implied by theprecedence relationships in the networkdiagram. The less slack time we have, thegreater the probability that a slipping

preceding task will cause the dependenttask to slip in time. The greater slack timegives us time for adjustments to ensurethe project is completed on time. Addingresources (people) to prevent slippageusually makes things worse. Therefore,don’t fall into the trap of thinking youcan just throw resources at a project thatis significantly behind schedule.

Follow these guidelines as youcomplete your milestone log.

1. What are the milestones from yourtask list? Using the Gantt chart startdates, list them in sequential order.

2. What physical evidence shows themilestone is reached? Describe itunder event description.

3. Who’s responsible for the milestone?When is it due? Record theresponsible person and the due datein the corresponding columns.

4. Now go back to your Gantt chart andshow milestones as triangles. Thetriangles point-down along the topedge of the bars. Empty triangles areplanned milestones. Filled-in trianglesare completed milestones.

Helpful Hints:

• Project deliverables should be creativeand should meet customer needs andwants.

• Project deliverables should be visibleand should facilitate communication.

• Have the task list handy for reference.

• Check to see if the schedule containstime periods greater than ten dayswithout a milestone.


Chapter 10

Figure 18. The milestone log highlights important events you set expectations for during the course of the project.

MILESTONE LOG


Project Manager:


Chapter 10

Figure 19. The milestone log for the house construction project ensures timely completion.

MILESTONE LOG



Etc.

With the responsiblitymatrix (6), the projectmanager assigns human

resources to tasks.


#

The purpose of the responsibility matrix (6)is to identify task responsibility,participation, and approval. Theresponsibility matrix is crucial for settingexpectations for and among the projectteam members. An effective project teamunderstands the responsibility matrix andcan assist the project manager in makingit realistic and efficient.

People are the most importantresource you’ll manage. Coordinating theefforts of a large group of people can be amajor effort. Even for smaller projects, weoften have trouble assigning people tovarious tasks. Each individual may beworking on several tasks. Additionally,people may have a different level ofresponsibility on each task. The projectmanager must coordinate the duties of allthe people in these tasks.

An efficient way to link people tospecific tasks is the responsibility matrix.The matrix’s y-axis lists the project’stasks, the x-axis lists the people involvedin the project. By using the symbols

R: Person responsible for the task,P: Person participating on the task,A: Person who approves the task, andS: Person playing a key supportive role

in the matrix cells, you can show who’sworking on what task in what capacity.To construct a responsibility matrix, youmust first list all names of peopleinvolved with the project’s tasks acrossthe top of the form (including yourname). Then you must list the tasksinvolved in your project in the columntitled tasks. Finally you assign the letterR, P, A, or S to each person who isinvolved with each corresponding task.When the matrix is complete, you’ll haveallocated all human resources (projectteam members) to tasks. (If you’reresponsible for a number of projects youcan do a multi-project responsibility matrixby putting projects on the stub, or y-axis,of the matrix.)

Using the outline in Figure 20,consider a responsibility matrix for anyproject. For reference, review thecompleted responsibility matrix for thehouse construction project in Figure 21.You can use Figure 20 as a form fordeveloping a responsibility matrix for anyproject.

Note that at the responsibility matrixstep you have tasks and groupings fromyour WBS and the responsible person formilestones from your milestone log. In thisstep, you’ll verify responsible person andadd roles for other people.

11

Symbols:


Chapter 11

Earlier chapters of this book aredevoted to the first seven projectmanagement tools used in the first fivesteps of the project management process.(The tools and their sequence are shownin Figure 3.) These first seven tools focuson getting the content or scope of theproject right and focus on projectschedule. We’ve focused on the client andon capturing exactly what the clientexpects from us and from the result of theproject. We’ve identified project tasks andorganized those tasks logicallyconsidering precedence and time.

This chapter and those that follow aredevoted to the next five projectmanagement tools used in the next fivesteps of the project management process.Not only does the project manager needto focus on the client and making sure theproject scope will result in meeting theclient’s expectations, but the manageralso needs to focus on his or her companyand making sure the project resources areused wisely to the benefit of thecompany. These next five tools considerproject expenditures in terms of thehuman resource and in terms of budget.We start by developing a project teamand determining roles andresponsibilities. The project teammembers constitute our human resourceand will encumber most of the budget.The project manager is also responsible toensure that the project is profitable.Profitability is determined by thecompany guidelines and marketingstrategy.

One of the biggest complaints amongproject managers is the changes in projectteam members that may be inflicted onthem as broader corporate needs are met.Therefore, we’ll be concerned with plan,actual, and variance even as we considerteam members and their roles andresponsibilities.

Follow these guidelines as youcomplete your responsibility matrix.

1. What are the project’s tasks? List thetasks along the y-axis.

2. Who’ll be working on the projectteam? List team members along thex-axis.

3. Who’s responsible for each task?Who’ll participate in the tasks? Whoseapproval is needed for the tasks? Whoplays a key supportive role? Showthem in the matrix cells using theletters R, P, A, and S.

Helpful Hints:

• This tool helps empower others ifused correctly.

• Each task should have only one ‘R’.

• Don’t confuse ‘A’ and ‘R’.

• Use many ‘P’s’.


Chapter 11

Figure 20. The responsibility matrix identifies the responsibilities for each person/subcontractor working on a project.

RESPONSIBILITY MATRIX


Project Manager:


Chapter 11

Figure 21. The responsibility matrix for the house construction project designatesresponsibilities for the people and the contractors working on the house.

RESPONSIBILITY MATRIX



The personpower loadingchart (7) identifies when

project needs exceedresource availability.


#

The purpose of the personpower loadingchart (7) is to identify the amount of efforton each of the tasks at any given timeduring the project in units of either timeor full-time-equivalent people.

Once you assign your people to tasks(shown in the responsibility matrix), you’llwant to know how much total effort andthus how many workers are needed foreach task for each time unit (day, week,month). The personpower loading chartcombines information on task durationfrom the Gantt chart and on team memberparticipation from the responsibility matrixto determine daily (or any other timeunit) personpower requirements for eachtask. The average personpowerrequirement is the sum of the daily (orother) requirements divided by theproject’s length. You’ll now have aschedule for your human resources.

When you consider number of peopleon tasks, you won’t always have a personfull time on a task during the full periodof your time unit. For example, a persondoing a fifteen minute task on a certainday or week is neither full time nor totalduration for the time unit. You canchoose to count FTE (full timeequivalents).

Using the outline in Figure 22,consider a personpower loading chart forany project. For reference, review the

completed personpower loading chart forthe house construction project in Figure23. This example uses FTE in terms ofhours/week for a project week. You canuse Figure 22 as a form for developing apersonpower loading chart for any project.

Note that at the personpower loadingchart step you have people whoparticipate from your responsibility matrix,tasks and groupings from your WBS, andtime periods and start and end datesfrom your Gantt chart. In this step, you’lladd effort in some time unit: hours/weekor person-days (FTE) each week.

For the personpower loading chart, weconsider the level of effort contributed byall the people working on all the tasks fora given time period. For example, we candetermine the number of hours to becontributed by each person working on atask; and, if desired, convert the hours tofull-time-equivalents (FTE) by dividingby 40. The FTEs would then be full-time-equivalent weeks. We’ll total the full-time-equivalent weeks for each of theweeks of the project. The personpowerloading chart captures FTEs for each weekof the project.

From the responsibility matrix, youknow who is contributing to each task. Inthe personpower loading chart, you mustdetermine how much effort altogetherthese people are contributing to each task.

12


Chapter 12

We typically don’t total the effortacross the tasks for each project week atthis time. We save that for the nextproject management tool used in the nextstep of the project management process.An important addition to this tool is toadd up the effort across all the weeks ofthe project for each task. Then you have acomplete task loading. Since the humanresource is usually the biggest contributorto the project cost, you can estimate thecost of each task from the totals for efforton each task. You can see a more-detailedpersonpower loading chart for Mary’s housethat includes plan and actual inAppendix B.

You may want to keep FTEs in termsof skill level or type of expertise needed.That is, you might want to track FTEs ofprofessional time versus FTEs of stafftime. The reason for separating the FTEsis that the different types of expertiseusually cost different amounts; and fordetermining the budget later, you’ll wantto know the difference.

Follow these guidelines as youcomplete your personpower loading chart.

1. List tasks from the Gantt chart alongthe y-axis.

2. What is the time unit on the Ganttchart? Fill in the time on the x-axis.

3. What are the task start and end dates(from the Gantt chart)?

4. How many people are working oneach task (from the responsibilitymatrix)? Assume each person worksuniformly over the duration of thetask.

5. Fill in the personpower loading chartcells in the matrix.

6. Sum the labor requirements verticallyfor each time unit to get the total laborrequirements for that time unit. (Notewhether your labor requirements areFTE’s or body count).

7. Sum the totals for the columns to getthe total labor requirements for theentire time of the conduct of theproject.

8. Sum the labor requirementshorizontally for each task to get thetotal labor requirements for that task.You can sum the totals for the rows toverify the totals for the columnsalready determined.

Helpful Hints:

• Decide on unit of analysis—managers,staff, overall.

• For ongoing tasks, allocate weekly ormonthly.

• Decide on hours, weeks, or FTE.

PERSONPOWER LOADING CHART


Project Manager:

Total


Chapter 12

Figure 22. The personpower loading chart identifies human resourcerequirements by time period (e.g., month) for each task.


Chapter 12

Figure 23. The personpower loading chart for the house constructionproject shows personnel activity as a function of time.

PERSONPOWER LOADING CHART



The project manager usesthe personpower loading

histogram (8) to levelhuman resources.


#

The purpose of the personpower loadinghistogram (8) is to identify peak resourcerequirement periods so we can level theresource requirements.

The personpower loading histogram is agraphical version of the personpowerloading chart. However, whereas thepersonpower loading chart includes tasks,the personpower loading histogram does not.The detailed data by task is lost when theeffort is totaled for a given work period.Since the data are visually represented,you can easily see peaks and valleys inlabor requirements. You should attemptto reschedule tasks from peak timeperiods to those time periods with littlelabor demand. This is called leveling.When rescheduling tasks, be aware of thepotential effects on slipping tasks that aredependent on the rescheduled task asdetermined in the network diagram.

When we level the resourcerequirements, we represent the averagelabor requirement (rounding up tonearest whole number) by a dotted lineon the histogram. Select those tasks withfloat time (tasks with flexible start dates).Then level the labor requirements byrescheduling those tasks during the“valleys.” (If you want, redraw thehistogram to show this leveling.) You’llnow have efficiently allocated yourhuman resources to the individual tasks.

Note that you must remember torevise your Gantt chart and milestone log ifyou reschedule any tasks.

The personpower loading histogram is animportant tool especially for learning tomanage projects better. That means thevariance between how you level yourresources when you’re planning theproject (plan) and how you use yourresources in doing the project (actuals) iscrucial to learning how to plan your nextproject. Human resources aren’t justthings to shift here and there. Humanshave emotions, concerns, and hopes.When a person plans to work on a task ata particular time and is either shifted intime or from task to task or even fromproject to project, more than resourceleveling is involved. Intangibles such asmotivation and trust are involved.

Using the outline in Figure 24,consider a personpower loading histogramfor any project. For reference, review thecompleted personpower loading histogramfor the house construction project inFigure 25. This example uses hours. Forillustrative purposes, we assume Taylorhas a flexible schedule and can meet withsubcontractors any day of the week.However, Taylor must balance thedemands of professional career with thisgeneral contracting opportunity. You canuse Figure 24 as a form for developing a

13


Chapter 13

personpower loading histogram for anyproject.

Note that at the personpower loadinghistogram step you have time periods andstart and end dates from your Gantt chartand total labor requirements from yourpersonpower loading chart. In this step,you’ll add a week-by-week allocation ofeffort.

Follow these guidelines as youcomplete your personpower loadinghistogram.

1. Fill in time units from Gantt chart onhorizontal axis.

2. What are the total labor requirements foreach time unit? Plot them on thepersonpower loading histogram. Usethese labor points to draw a histogramof the labor requirements.

3. What are the labor requirements foreach task? Plot them on the chart.Draw horizontal lines to show theportion of labor needed for each taskand label each section of the graphwith its associated task number.

4. What is the average laborrequirement? Refer to the personpower

loading chart. Sum the total laborrequirements horizontally and divideby the project length (in time units).Draw a horizontal dotted line on thechart to reflect this and label itaccordingly.

5. Which tasks have float time?Reschedule them in time periodshaving less than average laborrequirements.

Helpful Hints:

• Compare project work load to yourother activities (non-project).

• Decide whether and when you mayneed people to fill in when projectteam members can’t keep up withpeak demands. Where will you getthose people?

• Consider the experience level of theperson assigned to the task. Typically,more skill means fewer hours. (Alsotypically, more skill means a higherhourly cost. We’ll deal with costs inthe coming chapter.)


Chapter 13

Figure 24. The personpower loading histogram identifies unevenness in distributing human resources to tasks over the project lifetime.

PERSONPOWER LOADING HISTOGRAM


Project Manager:


Chapter 13

Figure 25. The personpower loading histogram for the house construction project highlights busy and down times.

PERSONPOWER LOADING HISTOGRAM



The expenditures chart (9)identifies the financial

resources needed toaccomplish project tasks.


#

The purpose of the expenditures chart (9) isto describe each expenditure and estimateits dollar cost for each task.

This expenditure chart does notinclude overhead or profit but tracks onlythe raw costs. As the project manager,you must develop the project’s budget asaccurately as possible. Success or failureoften hinges on whether or not youadhere to your budget. The firstbudgeting step is to estimate task costs.Include materials costs, labor costs,overhead costs, and any auxiliaryexpenses in each task estimate. Also,describe each expenditure whencompleting the expenditures chart. Oftenproject managers build some “fat” intotheir cost estimates by multiplyingrealistic estimates by a “fudge factor”(doubling estimates is not uncommon).As Murphy’s Law states, “Anything thatcan go wrong will go wrong,” so take thisinto account in your cost estimates.

Using the outline in Figure 26,consider an expenditures chart for anyproject. For reference, review thecompleted expenditures chart for the houseconstruction project in Figure 27. You canuse Figure 26 as a form for developing anexpenditures chart for any project.

Note that at the responsibility matrixand personpower loading chart step you

have information for the personnelinvolved in terms of people, theirresponsibilities (perhaps organizationallevel), and their loading over time. Youcan convert numbers of people andorganizational or expertise level into costsor expenditures. At the expenditures chartstep, you have the total funding fromyour scoping agreement and the tasks andgroupings from your WBS. You’ll addmaterials, travel, and any other expensethe tasks require. In this step, you add thedivision of funding by task.

If there was ever a time or a tool totrack actuals, this is it. It’s important toknow in detail what costs you intend toincur and then to know in detail howmuch you actually spend. The detail isimportant because your corrections toany misjudgments on cost will occur atthe detail level. The total cost is importantand tracking where you are in cost overtime for the entire project is importantand is what most project managers focuson. The danger is in focusing on thebottom line because when the bottom lineshows trouble, it’s usually too late tomake an effective correction. You canusually make a correction but, in sodoing, will produce a problemsomewhere else—perhaps in someoneelse’s project (by using the other person’smost capable person to help bail yourself

14


Chapter 14

out, for example). Yes, the bottom line isthe bottom line. However, it’s thedetailed task numbers that are thesalvation for the project manager.

The expenditures chart is another toolwhere including plan, actual, andvariance is crucial. There are two ways toidentify financial problems as the projectprogresses. The first is to monitorexpenditures by type. It’s common tohave one type of expenditure get out ofhand. Often, it’s not the fault of theproject manager. A particular resourcemay suddenly have a big change in costdue to an unexpected shortage, forexample. The project manager needs todiscover this kind of problem and itsimpact as early as possible and to try tocut expenditures of another type to makeup for the unexpected problem.

The second way to identify problemsas the project progresses is to monitor theproject costs as a function of time, whichis the purpose of the next tool discussedin the upcoming chapter. You can see amore-detailed expenditures chart forMary’s house that includes plan andactual in Appendix B.

Follow these guidelines as youcomplete your expenditures chart.

1. What are the project tasks from yourGantt chart? List them (by identifyingnumbers) in the task column.

2. What are the personpowerrequirements for each task? Convertthose personpower requirements intopay.

3. What must you purchase (whatexpenses will you incur) for each task?Describe each expenditure underexpense description.

4. What is the cost (in dollars) for eachtask? Record each task’s cost undertask expenditures.

Helpful Hints:

• Budget conservatively.

• Consider annual salary increases thatmay affect your estimates.

• Review previous successful projectssimilar to the current one. Are yourestimates realistic?

Figure 26. The expenditures chart identifies what it costs to accomplish the project’s tasks,sometimes categorized by labor type, materials, and so on.

EXPENDITURES CHART


Project Manager:


Chapter 14


Chapter 14

Figure 27. The expenditures chart for the house construction project shows how much the tasks cost to execute.

EXPENDITURES CHART



The project manager usesthe cumulative budget (10) to

plan and track total costs.


#

The purpose of the cumulative budget (10)is to graph the forecasted expendituresover the project’s life.

Proactively plotting a cumulativebudget will help you (as the projectmanager) visualize project expendituresover the life of the project. A commonmethod of projecting expenses is to graphcumulative expenditures. To projectexpenses, add each time period’sexpenditures to the previous timeperiod’s expenditures, therebydeveloping a running total ofexpenditures, or a cumulative budget.

Plot these cost estimates for each timeperiod and connect the points with asolid line to generate a smooth increasingcurve. The result will be a curve startingat zero dollars at time zero and ending atthe total forecasted budget estimate at theproject’s conclusion.

You can now visualize the project’splanned expenditures for any timeperiod. Once the project is underway,you can represent actual budget expensesby a dotted line. Then you can easily seewhether or not you’re adhering to yourplanned budget.

The cumulative budget may be the mostcommonly used project management tooland is most used for both planning andexecuting the project. By carefullyplanning cumulative costs over the life ofthe project and observing where theactual costs are relative to plan, theproject manager gets a quick view of

impending financial difficulty. Inaccounting reports, the cumulative budgetis often referenced by costs-to-date orexpenditures-to-date.

Not only can the project managerdetermine whether cumulative costs arerunning ahead or behind plan, but he orshe can determine the rate of variancebetween plan and actual. That is, are webehind by a certain amount and stayingbehind by that amount or are thingsgetting increasingly worse?

Using the outline in Figure 28,consider a cumulative budget for anyproject. For reference, review thecompleted cumulative budget for the houseconstruction project in Figure 29. You canuse Figure 28 as a form for developing acumulative budget for any project.

You have division of funding by taskfrom your expenditures chart and timeperiods and start and end dates fromyour Gantt chart. For the cumulativebudget, you add a month-by-monthallocation of funds.

Follow these guidelines as youcomplete your cumulative budget.

1. What is the total forecasted budget?(Sum the task expenditures from theexpenditures chart). Let the totalforecasted budget (in dollars) be themaximum value of the y-axis.

2. What is the smallest expenditure(from expenditures chart)? Let thesmallest expenditure (in dollars) be

15

the units for the y-axis (Use yourjudgment for a few expendituresmuch smaller than most).

3. What is the project’s overall length intime (from Gantt chart)? Let that timebe the length of the x-axis.

4. When is each task expenditureincurred? (Use task starting datesfrom Gantt chart for reference points).Plot the cumulative budget by addingeach time period’s task expendituresto the previous time period’s taskexpenditures. Connect points with asmooth curve to complete the graphof the cumulative budget.

Helpful Hints:

• Track actual expenditures againstbudget projections.

• Use variance to check assumptions forthe future.


Chapter 15


Chapter 15

Figure 28. The cumulative budget shows the accumulating costs over time during the project.

CUMULATIVE BUDGET


Project Manager:

TOTALEXPENDITURE


Chapter 15

Figure 29. The cumulative budget for the house construction project warns of overspending the budget.

CUMULATIVE BUDGET



What does it taketo be a project manager?


#

Broad set of capabilities

To successfully manage a complexproject, the project manager must be the“Renaissance Person,” with talent inscience, art, and human relationships. Heor she must be excellent at the process ofmotivating a project team to bring aproject to fruition to delight the client andbring substantial return (primarilyfinancial) to the company. This processemploys a set of tools requiring skill andtechnique. While using the tools, theproject manager must make effective andtimely decisions. The project managermust see opportunities for improving theproject for both the client and thecompany. The project manager mustbuild and coach the project team. Theproject manager must lead throughrecognizing, encouraging, gathering, andfocusing the strengths of a wide range ofpeople toward the project goals andobjectives. The project manager must beeffective in all sets of communicationskills—especially oral communicationand especially listening. The projectmanager must be a good estimator and beof outstanding character.

The importance of management

Any manager at any level must be skilledat planning, executing, verifying, andlearning. We sometimes call this set ofskills baseline management. What you

want to do (the plan) is your baseline.Actuals and variance are differentials offof the baseline. At a given point in time,any manager should 1) check thebaseline, 2) determine the variance, and3) act accordingly. Recall Figure 2 and thePlan-Do-Study-Act Cycle. This cyclecaptures the process for managingquality. The project manager is a manager(decision maker) who is responsible toproduce a quality result for the client anda quality result for the company.

When you plan, anything is possiblewithin the broad constraints of the scopingagreement and the requirements statements.When you execute, your possibilitiesreduce more and more as your remainingtime and resources diminish. You havemore opportunity to make good decisionswhen you have more remaining time andresources. Therefore, track the project’sprogress carefully in detail to take actionearly on any potential problem. Allproject problems telegraph themselvesbefore they become of any consequence.The project manager must be tuned in tothe project to pick up the signals ofupcoming issues.

A systems view

Effective project management requires asystems view. The project manager mustsee the project beyond the here and now.The project manager must see beyond

16


Chapter 16

what’s directly in front of his or her face.You need to take a long time horizon—atleast for the entire duration of the project.You’ll be more effective if you include inyour project view the background of theproject. What’s the context of the projectin the client’s processes? What history ofthe client leading up to the project isimportant to truly understand the client’sexpectations? What will be the outcomeof the project? (The output of the projectis the product or service you deliver tothe client. The outcome of the project ishow the product or service serves theclient over the long haul.)

You need to take a wide view. Whatother projects have you experienced thatwill aid in the effective accomplishmentof this project? What other projects inyour company will affect your project?Within the project, what tasks are thecrucial ones in terms of success andfailure? A systems thinker has a long andwide view of the system underconsideration.

The tools of the trade

You can hardly call yourself a projectmanager without being proficient in thebasic tools of your trade. Other skills andattitudes, such as communication, teambuilding, and leadership, can be masteredat a reasonable range of proficiency. But,the total tool set is absolutely necessary.

Here’s an analogy. To call yourself acarpenter, you must be proficient with asaw, hammer, and chisel. You may not beexpert at the more-complicated tools.Beautiful furniture has been crafted withthe basic tools. If you can use a hammer

and chisel but not a saw, you wouldn’t beconsidered a carpenter. If you can use aschedule and a profitability report, butnot a work breakdown structure and aresponsibility matrix, you wouldn’t beconsidered a project manager.

Just as a carpenter must be able toestimate how hard to hit the hammer tothe chisel, the project manager must beable to estimate how many resourcesmust be applied a given task within theproject. Estimation is required to beproficient in project management tools.

Over the years, a set of projectmanagement tools has evolved. We cancall this set of tools a closed set. That is,the set meets the conditions of necessaryand sufficient. Each of the tools isnecessary to be an effective projectmanager and the all the tools together aresufficient. This book is about a set oftwelve tools that a project manager usesin ten steps of the project managementprocess. The twelve tools are basic andform a complete set. There are variationson these twelve tools; however thevariations are more about the level ofsophistication needed or the comfort witha particular form. For example, wediscuss the network diagram here. We canexpand the network diagram into a CriticalPath Method (CPM) tool by consideringminimum slack time. We can expand theCPM tool into the Program Evaluationand Review Technique (PERT) tool byincluding probabilities for the variouspath options as we considerdependencies among the tasks. The CPMtool is deterministic. The PERT tool isstochastic. CPM and PERT are bothnetwork diagrams.


Chapter 16

Standards

In all professions, we develop industrystandards. We use standards to setexpectations for what a professional doesand to develop consistency amongprofessionals in doing their work.Standards are usually establishedthrough a professional society. Just ascivil engineers have standards to meet fordesigning bridges and highways, projectmanagers have standards to meet forplanning and executing projects. Civilengineering standards are establishedand documented by the American Societyof Civil Engineers (ASCE) and projectmanagement standards are establishedand documented by the ProjectManagement Institute (PMI). The projectmanagement standards are documentedin Project Management Body of Knowledge(PMBOK). Certification for projectmanagers is based on knowing PMBOK.This book follows the standards set byPMBOK.

Leadership

The project manager is the leader. Projectwork is hard work and the projectmanager needs to be a leader to engagepeople and enroll them to work towardthe project objective. Often, the projectmanager must make very difficultdecisions on schedule and roles andresponsibilities. The decisions are

management, but getting buy-in fromteam members is leadership. Usually, theproject manager doesn’t choose his or herown project team. Then, the projectmanager must be superb at recognizingstrengths and capabilities of teammembers, encouraging those strengthsand moving all the strengths toward theproject objective.

Team development

The project manager is a coach. He or shemust instruct, facilitate, and encourageteam members. All projects encounterrough times. The project manager mustrally the team to stay disciplined andfocused on the goal.

Professional development

If you want to take on bigger or more-significant projects in your career asproject manager, you must be motivatedto do the discipline of the projectmanagement process. Discipline meansyou use the tools and you practice thePlan-Do-Study-Act Cycle.

An emergent property of projectmanagement is career developmentbecause the tools, perspective, anddiscipline of project management arewhat are needed for work unitmanagement and general management.

Appendix AMicrosoft Project,

detailed reports and charts:Mary’s house


We placed the project plan for Mary’sHouse into Microsoft Project. MicrosoftProject includes a database that canupdate all the templates whenever aquantity, date, or name is changed. Inusing this software, we found issues inour original plan: overbudget, someworkers overallocated, and somematerials estimated incorrectly. Theseissues were only visible to us once wehad the entire plan inputted. Thatvisibility is one of the advantages ofcomplete project planning.

The Gantt chart (Text Figure 13) andmilestone log (Text Figure 19) for Mary’sHouse in the Text Chapters 8 and 10,respectively, are snapshots of MicrosoftProject documents. This appendix showsmore detailed versions of these twoproject management tools from MicrosoftProject. The one-page detail is part of amuch larger tool. We are showing youthe level of detail you can get using asoftware package.


Appendix A

Figure A-1: Mary’s House — Gantt Detail, Framing Tasks


Appendix A

Figure A-2: Mary’s House — Resource Sheet


Appendix A

Week 10 Week 11 Week 12 Week 13 Total

Framing

Discuss aspects of framing with crew $1,644.16 $1,644.16

Order special materials $8,272.51 $8,272.51

Frame first floor $7,083.33 $7,083.33

Install sill felt

Attach sill plate with lag bolts

Install support columns

Frame first floor joists and sub floor

Frame basement stairs

Position all first floor large items

Frame exterior walls first floor

Plumb and line first floor

Frame second floor

Frame second floor joists and sub floor

TOTAL $1,644.16 $8,272.51 $7,083.33 $17,000.00

Figure A-3: Mary’s House — Cash Flow as of Weeks 10-13

Appendix BPlan versus actual:

Mary’s house


Recall Figure 2 in Text Chapter 2. Thepoint is: a successful project managerwill 1) plan the project using the projectmanagement tools (PLAN); 2) monitorand track the progress of the conduct ofthe project (DO); 3) study the result bycomparing progress against plan(STUDY); and 4) learn from thisexperience to plan and conduct a projectbetter in the future (ACT). In projectmanagement terms, we use each projectmanagement tool to capture, document,and track plan, (what we planned), actual(what we did), and variance (how well wedid against plan). Tracking plan, actual,and variance makes the projectmanagement tools more detailed than wedemonstrated in the book chapters. Inthis appendix, we show four of the toolsin enough detail to demonstrate plan,actual, and variance. Note that theexample tools we chose for this appendixinclude the three classical constraintsfrom Chapter 1: time, cost andperformance.

The project management plan is usedfor execution of the project. Carefultracking of actuals against plan gives theproject manager visibility of cost,schedule, and quality. Then the projectmanager can take care of correctiveaction.

In Appendix B, examples using theproject management tools to compareactuals against plan are:

Figure B-1: Gantt Chart with Milestones and Critical Path

Figure B-2: Milestone Log

Figure B-3: Personpower Loading Chart

Figure B-4: Expenditures Chart


Appendix B

Figu

re B

-1:

Mar

y’s

Hou

se —

Gan

tt Ch

art w

ith M

ilest

one

and

Criti

cal P

ath


Appendix B

Figure B-2: Mary’s House — Milestone Log


Appendix B

Figure B-3: Mary’s House — Personpower Loading Chart

Plan Versus Actual

TASKTIME

TASKTIME


Appendix B

Figure B-4: Mary’s House — Expenditures Chart

Plan Versus Actual

MaterialsSubcontractor

Appendix CPractical exercise:

creating a project plan


A practical exercise can support thepresentation of project management tools.The text covers the house constructionexample. However, a better example foran in-class exercise is suggested here. Theclass should separate into teams of three-to-four members.

Supplies needed for each team are:

• Banner paper at least 24 inches wide and 72 inches long.

• Sticky notes

• Fine point markers

• Project Management Tools book

The scenario can vary as the exerciseis adaptable. For illustration, a scenariorequiring a group trip with two differentobjectives is offered. The scenario isdescribed below.

Scenario:

Your company has had a banner year. Asan investment in the firm and in the top35 senior managers, your company plansto combine a strategic marketing tripwith a bonding adventure. The idea is toinvestigate the Northwest United Statesand Alaska as a potential region forgrowth. The trip will also take advantage

of the beautiful scenery and outdooradventures as a motivating backdrop forthe strategic marketing and the bonding.

You are asked to be part of the projectteam that will plan and execute this ten-day trip for 35 people. The trip will beginon May 1 after 6:00 a.m. and allparticipants will be in their offices by 8:00a.m. on May 11. Meetings withgovernment officials, industry leaders,and prospective clients will require atleast 5 days of the trip. The total projectbudget will not exceed $100,000. The costof labor should be calculated but is notpart of the project budget. The finaloutput of this project will be a report tothe CEO on opportunities for corporategrowth and the outcome will be anincreased level of trust and collaborationamong the senior managers.

Process:

Gather your team together and create theproject plan using banner paper andsticky notes to develop the requirementsstatements, task list, the work breakdownstructure, the Gantt chart, the networkdiagram, and the milestone log. Using thisbanner results in a visual tool. You’llfinish the project plan developing theresponsibility matrix, personpower loading


Appendix C

chart, personpower histogram, theexpenditures chart, and the cumulativebudget on the templates provided in thetext.

You’ll work on this project over timeso the banner paper and sticky notes will

be used each time you work as a team.

Figure C-1 illustrates the exerciselayout on the banner paper portion of theexercise.

Figure C-1:Practical Example Layout

Requirement 1 Requirement 2

Task 1.1 Task 1.2

Task 1.1.2 Task 1.2.1

Task 1.2.2 Task 1.3

Task 2.1

Task 2.2

Task 2.3

Task 2.4

Time Line

Week 1 Week 2 Week 3 Week 4


Appendix C

Step 1

Students are asked to work in teams ofthree-to-four members. Based on thescenario, students should write out ascoping agreement of approximately 250words (Text Figure 4).

Step 2

Students brainstorm a list ofrequirements (Text Figure 6), placingeach requirements statement on a stickynote. Use the same color sticky note foreach requirement. Use a different colorsticky note in Step 3.

Step 3

Students are asked to brainstorm the tasklist (Text Figure 8). Noting therequirements on the sticky notes in Step2, the team lists tasks that will fulfill therequirements. On each sticky note, a taskis listed in the middle. In the upper leftcorner of the sticky note, space is savedfor the WBS organization number (usedlater in Step 4). In the lower right corner,initials of responsible person or role arewritten (used later in Step 8). In the upperright corner, a capital M is written if thetask is a milestone. In the lower leftcorner, the team writes the estimate ofeffort for that task. The example tasksticky note is shown in Figure C-2.

Step 4

The task list is expanded into a workbreakdown structure (WBS) (Text Figure10) by moving the sticky notes around onthe banner paper until the team issatisfied they have a complete list of tasksto successfully meet the requirements ofthe project and that the tasks are groupedlogically. Then, the WBS numbering iswritten in the upper left corner of eachsticky note. (See Figure C-2.) When theteam is satisfied with the WBS layout,Text Figure 10 can be completed.

Step 5

The sticky notes can be arranged on thebanner paper with a time line along thebottom of the paper. Arranging the stickynotes along the time line will begin todevelop the Gantt chart and identify thecritical path.

By considering the start date and theend date for each task, we determine thetask duration to be used for the Ganttchart. Capture the start and end dates atthe lower left corner of the sticky note foreach task. (See Figure C-2.) Note that bothtask duration and task effort are capturedon the sticky note.

Reviewing the effort for each tasklisted in the lower left corner of the stickynotes. (See Figure C-2.) The team willadjust the task list, WBS, and effortestimates during the placement of thesticky notes against time as gaps andoverlaps will become apparent. Theinformation comprising the Gantt chartcan be input into Microsoft Project ordrawn in another software package. TextFigure 12 is a generic form for a Ganttchart and is produced in Microsoft Word.

Figure C-2:Example Sticky Note

WBS # Milestone

Start DateEnd Date Responsible PersonEffort Cost

Brief Task Description


Appendix C

Step 6

The network diagram (Text Figure 16)captures the relationship among thetasks. Once the sticky notes have the WBSnumber designated, place the sticky notesto illustrate the precedence of one task toanother and draw connecting lines.

Step 7

The milestone log (Text Figure 18) isderived by listing all the tasks indicatedwith an M in the upper right corner of thesticky note. (See Figure C-2.) Themilestone log will tighten up the quality ofthe project plan. Most gaps and overlapsin tasks and timing will be identified atthis point. Not all tasks are milestones.

Step 8

The responsibility matrix (Text Figure 20)can be drafted from the responsiblepeople or roles listed on the sticky notesin the lower right corner. As theresponsibility matrix is developed byadding data for each task, more gaps andoverlaps will become apparent andchanges may be made to the sticky noteorganization on the banner paper or theGantt chart time line.

Participants will refer to the bannerpaper and sticky notes for informing thedevelopment of the remaining tools.

Steps 9-10

The personpower loading chart andpersonpower histogram will likely use

Microsoft Project or another softwarepackage (Excel) to display results.However, the basic form is Text Figures22 and 24.

Step 11

The expenditures chart (Text Figure 26)should use the task sticky notearrangement to ensure all tasks have adefined effort and responsible person.Knowing effort and responsible personyields cost (labor) for each task. Addingin materials costs will define the total rawcost of the project. A software packagesuch as Excel or Microsoft Project candisplay and calculate the expenditureschart most efficiently. It’s wise to includethe cost of each task on its sticky note.The discipline of planning and trackingcost by task is important. The cost can becaptured in the lower right corner of thesticky note. (See Figure C-2.)

Step 12

The cumulative budget (Text Figure 28)shows the expenditures over time andrequires the combination of the tasks overtime with the expenditures for each task.Totaling expenditure costs in dollaramounts and planning the cash flow isanother important managementresponsibility. Will the revenues matchthe expenses on a month-by-month basis,or is there a time when cash reserves willneed to be called on?

Appendix D Monitoring the project

qualitatively


The scoping agreement (Text Chapter 4)and requirements statement (Text Chapter5) are in text or sentence form. Theyinitiate the project and help usunderstand what the client needs andwants. The other ten project managementtools are quantitative—albeit lists ofmilestones with their due dates (TextChapter 10), bars on a Gantt chart (TextChapter 8), or data for resources inpersonpower loading charts (Text Chapter12) or expenditure charts (Text Chapter 14).

There are many subtle issues that aremuch more qualitative and can make orbreak the project. The subtle issues maybe present at the beginning of the projector crop up during the conduct of theproject. How does the project managerkeep on top of these subtle and crucialissues?

First, the project manager knows moreabout the project than anyone in theorganization that is responsible formeeting the needs of the client. Theproject manager has a “gut feel” for whatthe client is most concerned about, whatthe potential pitfalls are in the conduct ofthe project, and where the corporatestrengths best apply to making the projectsuccessful. We need to be concernedabout the “run over by a bus” issue. Thatis, what about knowing and tracking

these subtle issues if the project managergets sick, transfers to another company,or anything else we could include assimilar to being “run over by a bus?”The project manager should document ina memo to file or some other way theseinformal qualitative notes.

Second, the project manager shoulddesign and require from task leads whoreport to the project manager a weeklymanagement summary. We find that abullet form (rather than text) for themanagement summary is easier toproduce and quicker to read.

The weekly management summaryshould include bullets under at leastthese headings:

• What I expected to accomplish this(preceding) week.

• What I wasn’t able to accomplish(from the list of expectations)

• What I did accomplish (afterincluding unexpectedaccomplishments not in the list ofexpectations)

• What I could use help with (includingissues, concerns, and comments)

• What I expect to accomplish nextweek


Appendix D

Usually, it takes people about half anhour to produce their first managementsummary because they’re unfamiliar withthe practice and the form and they haveto determine what they expect toaccomplish in the upcoming week. Afterthat, people take about 5-10 minutesweekly—a very small price to pay forknowing what’s going on and what isexpected to happen in the next week.

Note that the process of producingsubsequent management summaries issimplified after producing the first one.Get the first heading (What I expected toaccomplish this week) by cutting andpasting from last week’s final heading(What I expect to accomplish next week).Note that the second heading (What Iwasn’t able to accomplish) is the same asthe first heading with one or more itemsdeleted. Note also that the third heading

(What I did accomplish) comes from thefirst heading by deleting items notcompleted and adding unexpected itemsthat were accomplished. The bulk of theeffort is spent expressing any concerns orissues and planning what to do nextweek. It’s really very easy, but takes a bitof self discipline applied weekly.

Finally, note that the headings in themanagement summary follow the needfor plan, actual, and variance. The plan is:1) What I expect to accomplish next weekand 2) What I expected to accomplish thisweek. The actual is: What I didaccomplish. The variance is: What Iwasn’t able to accomplish. In fact the“act” part of the Plan-Do-Study-Act Cyclefrom Text Chapter 2 is: What I could usehelp with. We typically need help whenwhat we did (Do) isn’t what we expectedto do (Plan).

Glossary


Activity: The effort part of a task. Also,sometimes a grouping of related taskscontributing a coordinated effort.

Budget Plan: A chart listing expected costby task.

Critical Path Method: The path throughthe tasks of a project with the least slacktime between tasks.

Cumulative Budget: A graph showingexpenditures over time.

Duration: The time span over which atask is to be completed. Includes theeffort but may also include down time orwait time.

Earned Value: A mathematical approachto identify variance of plan versus actualsfor budget and schedule.

Effort: The work contributed to tasksexpressed as the number of time unitsrequired to complete a task (hours, days,weeks, months)

Event: The result of a task.

Gantt Chart: A bar graph identifying theduration of each task chronologically andoften including inverted triangles at theend of the task for those tasks ending inan event deemed to be a milestone.

Milestone: A task event that is importantto track for completion so the projectschedule does not slip.

Milestone Log: A list of major milestonesadding responsible person(responsibility) and due date(accountability) to the milestone.

Network Diagram: A form of the workbreakdown structure showing taskdependence.

Project Manager: The person responsibleto oversee the completion the project ontime, on budget, and withinspecifications.

Requirements Statement: A narrativedefining the client’s expectation of theproject output in specific statements. Thislist may be more specific than the scopeof work.

Responsibility Matrix: A chartidentifying the roles and responsibilitiesof project team members by task.

Resource Loading Chart: A chartshowing labor effort against time for alltasks.

Resource Histogram: A bar graphidentifying peaks and valleys of laboreffort.


Glossary

Scoping Agreement: A brief document(1-2 pages) defining the project for theclient, the project manager, and theproject team.

Scope of Work: The part of a proposaland a contract that establishes all thework to be done in accomplishing theproject.

Slack Time: The time between thecompletion of a predecessor task and adependent task.

Task: A defined piece of work. Thesmallest work element in a project thathas resources and time committed to it.

Task List: A collection of tasks requiredto complete the project including theidentification of those tasks whose eventsare considered milestones.

Work Breakdown Structure: A groupingof tasks from the task list that includesidentifiers (numbers) for each task in anorganized fashion.

About the authors


Harold A. Kurstedt, Jr.

Harold Kurstedt is the Hal G. PrillamanProfessor Emeritus of Industrial andSystems Engineering and a principal inNewport Group, LLC. Most recently hewas director of Virginia Tech’s systemsengineering program involving mostlyadult students. In the late 1990s, Haroldwas on the Virginia Tech Provost’s staff,responsible for Continuing Education, theCenter for Organizational andTechnological Advancement (COTA), andthe university’s two hotels and confer-ence centers.

As part of his COTA responsibilities,he developed the results-orientedsolution-focused leadership workshops.Solution-focused thinking is based on ablend of natural laws and basic principlesfrom systems engineering, personalchange, and marriage and family therapy.Harold developed the study of dyadicdynamics: the systemic interactionbetween two people with a focus onissues such as interpersonal cycles, trustbuilding, and communication.

Harold has been searching for thesecrets of good management for 35 years.Educated in civil, mechanical, andnuclear engineering, he started his searchby developing total plant process controlsystems in heavy raw material industries.Measurement and data were his passion,and his tools later became known as TQMtools.

After founding and building a 235-person multi-project organization at

Virginia Tech dedicated to helping peopledo good management, Harold discoveredthat achieving good management andhence quality were a matter of culturechange, ultimately based on personalchange. By guiding organizations likeDupont, Westinghouse, the Departmentof Energy, and Citibank in their changestoward a quality culture throughpersonal change and self-empowerment,Harold focused on building high-performing organizations.

Harold was first a project manager in1970, responsible for the development ofnew total plant process control systems.When he became Manager of theIndustrial Systems Division of IndustrialNucleonics, he was responsible for otherswho were project managers. At this time,he learned the importance of usingproject management tools and the balancebetween satisfying the client and makinga profit for the company.

Harold recognizes that allorganizations must improve theirrelationship competence to the level oftheir technical competence and allmanagers and leaders must do morecoaching than problem solving or thehuman resource will under-perform.Toward this end, he recognizes thatproject management integratescapabilities in tools and processes withteamwork, communication, andleadership.


About the authors

Pamela Kurstedt

Pamela Kurstedt is CEO and President ofNewport Group, LLC. The NewportGroup, LLC provides consulting, educa-tion, and training to professional serviceorganizations through applying systemsthinking to solutions. Newport Group isdedicated to helping organizations man-age from a systems perspective – to solvemanagement and leadership problemsand to help individuals with communica-tion and self-management through per-sonal development. Under her leadership,Newport Group enjoys long-term rela-tionships with industry such as LockheedMartin and Dewberry and governmentagencies such as NASA.

Recently retired from the College ofEngineering, Virginia Tech as AssistantDean for Enrichment and InternationalPrograms and Director of the College ofEngineering, Northern Virginia Center inFalls Church, VA, she continues to teachand consult with professionals such asengineers, architects, and scientists. Herdegrees in Mechanical Engineering andIndustrial Engineering and OperationsResearch are from Virginia Tech.

Pamela’s experience in projectmanagement and process and

productivity improvement began in the1970s and includes work with largecorporate banks, insurance companies,telecommunication companies, veterinaryhospitals, federal government agencies,and educational institutions.

The combination of academic researchand implementation in industry andbusiness has given her a broad view ofquality improvement methods. She hastaught engineering students theprinciples of project managementthrough a proven management process.Her interest is in improving workplacepractices that enhance the quality ofperformance for individuals and theorganization.

She and her husband of 32 years,Harold Kurstedt, have six children andseven grandchildren. As a family, theyoperated a 300-acre farm, a country inn,and an arts and crafts store in one ofseveral historical buildings theyrenovated in the village of Newport,Virginia. Newport is the site of three ofVirginia’s six covered bridges and onewas located on the land of the countryinn. The Kurstedts are a project-orientedfamily.

Documents

Draft - homepages.wmich.eduhomepages.wmich.edu/~baller/IME6140/kurstedt.pdfFigure 13: The Gantt chart for the house construction project shows ... Themilestone logfor the house construction