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Successful Project Management CPM Scheduling Concepts and Practices PMI KC Mid-America Chapter Professional Development Days 2012 Overland Park Convention Center 10 September 2012 10:00 a.m. – 11:15 a.m. © 2012 Phillip L. Thatcher Where Are We Going? 1

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Page 1: Successful Project Management - PMI KC Mid-America Chapter …kcpmichapter.org/downloads/PDD12_Preso/thatcherpre… ·  · 2012-09-27Successful Project Management ... PMI KC Mid-America

Successful Project Management

CPM Scheduling Concepts and Practices PMI KC Mid-America Chapter Professional Development Days 2012

Overland Park Convention Center 10 September 2012 10:00 a.m. – 11:15 a.m. © 2012 Phillip L. Thatcher

Where Are We Going?

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Successful Project Management Agenda Project Management Proverbs Project Scope Checklist Importance of Project Schedules Project Network Diagrams Task Dependencies Critical Path Method (CPM) Project Network Methodology

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Successful Project Management Agenda (cont.) How to Shorten a Project Schedule Resource Allocation and Leveling Program Evaluation Review

Technique (PERT) – Time Estimating How to Control your Project “Golden Rule of Planning” ???Questions???

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Project Management Proverbs When things are going well,

something will go wrong. When things appear to be getting

better, you’ve simply overlooked something.

Projects progress quickly until they become 90% complete, then stay at 90% complete forever.

Murphy and Parkinson are both alive and well in your project.

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Project Management Proverbs (cont.) The most valuable and least word used by

Project Manager’s is “NO.” What you don’t know hurts you. No major project is ever installed on time,

within budget and with the same staff that started it.

A user will tell you anything you ask about - nothing more.

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Project Management Proverbs (cont.) If project content is allowed to change

freely, the rate of change will exceed the rate of progress.

You cannot produce a baby in one month by impregnating nine women.

The more ridiculous the deadline, the more it will cost to try to meet it.

If it’s not written down, it never happened !!!

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Project Scope Checklist 1. Project Objective(s)/Goal 2. Deliverables 3. Milestones 4. Technical Requirements 5. Limits and Exclusions 6. Reviews w/ customer

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1. Project Objectives Specific Measureable Assignable Realistic Time Related

Example: “Design and publish an Operations

Manual for the newly installed X-Ray equipment in the Radiology Department in 8-months at a cost not to exceed $1,200.”

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2. Deliverables Expected outputs after each phase of

the project. Examples:

Defining – List of Specifications Planning – Software Coding and a Technical Manual Executing – Test Prototypes Delivering – Final Tests and Approved Software

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3. Milestones Significant event that occurs at a

specific point in time. Must be easy for all project

participants to recognize.

Example: “Final testing complete by Oct 31.”

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4. Technical Requirements Specifications that describe the

technological aspects of the project. Example: “The equipment must be designed to

operate between 47-63 Hz.”

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5. Limits and exclusions Defined limits of scope. Define the boundaries of the project.

Example: “System maintenance and repair shall be

done only up to one month after final inspection of the equipment.”

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6. Reviews with the Customer Must include internal and external

customers. The understanding and agreement of

expectations. Example: “Does the project identify key

accomplishments, budgets, schedule, and performance requirements?”

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Importance of Project Schedules Delivering projects on time is the biggest challenge

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Project Network Diagrams • Shows a logical flow of how activities are

sequenced Constructing a Network Diagram

• Terminology • Activity – an element that requires time.

It may or may not require resources. • Merge Activity – an activity with more

than one activities preceding it.

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Terminology (cont) • Burst Activity – an activity with more than one

activity following it. • Event – a point in time when an activity is

started or completed. • Parallel Activities – activities that can take

place at the same time. • Path – a sequence of connected, dependant

activities. • Critical Path – the path with the longest

duration through the network.

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Activity-on-Arrow (AOA) Network Diagram

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Task Dependencies Tasks must be defined and linked based upon their start and finish dates

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Critical Path Method (PERT/CPM)

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Critical Path • Can there be more than one critical path? • Can the critical path change?

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Project Network Methodology • Define Activities - specify what

activities must be done • Sequence Activities - show how

activities are related • Estimate Activity Duration - how long

an activity takes to complete • Develop a Project Schedule • Control the Schedule - manage

changes promptly

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How to shorten a Project Schedule • “Crashing” - Schedule Compression

Advantage - shortens completion Disadvantage - often more cost

• “Fast Tracking” - parallel tasking

Doing sequential activities at the same time • What-If Scenario Analysis

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Successful Project Management “Crashing” Example

Project Data Task A: 8-days, $1,000 Predecessor: None Task B: 6-days, $150 Predecessor: None Task C: 4-days, $400 Predecessor: Task A Task D: 5-days, $500 Predecessor: Task B Task E: 7-days, $800 Predecessor: Task C Task F: 4-days, $250 Predecessor: Task D Task G: 10-days, $1,500 Predecessor: Task E, F

Total Budget: $4,600 Goal Calculate the most effective way to reduce this project to 22-days.

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Successful Project Management

Solution 1. Draw the project network diagram.

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2. Calculate the critical path. Paths and durations for this project are:

Path 1: Start, A, C, E, G, Finish = 8 + 4 + 7 + 10 = 29 days Path 2: Start, B, D, F, G, Finish = 6 + 5 + 4 + 10 = 25 days

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3. Calculate the crash cost per day for each critical task. Normal time - crash time = days available for crashing Crash cost - normal cost = cost of crashing Cost of crashing/days available = crash cost per day

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Successful Project Management 4. Look for the activity on the Critical Path with the lowest

cost per unit. Crash it as required to reduce the project duration.

5. Continually crash activities until desired combination of time/cost for project is achieved.

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6. Be aware that if dual critical paths are created, multiple tasks must be crashed to continue to reduce the project duration.

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After six crash iterations, the project duration was reduced from the normal time of 29 days to the desired crashed duration goal of 22 days.

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Final Solution In this project, the lowest cost crashing solution is to crash E, C, G, A, and D. This will reduce the schedule to the desired 22 days. There are many ways to crash a task and here we added resources, at a cost. This allows the tasks on the critical path to get finished quicker.

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Our demonstration resulted in $5,800 crash cost and 22 days. At this point we have met our goal and do not need to crash any further.

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Resource Allocation and Leveling

“How do you have just the right amount of resource available at just the right time?”

1. Resource needs will vary as the project progresses.

2. Correct resources must be available at the right time.

3. Resources must be scheduled evenly.

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Resource Leveling ... shifting tasks within their slack time to even out demands on resources which are common to different tasks.

Advantages: • Less management is required when

resource use is constant. • If the resource is people, leveling improves

morale.

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Task Duration (days)

Predecessor (units)

Number of Programmers

Required

A 10 n/a 5

B 5 n/a 5

C 10 B 10

D 10 A 5

E 15 D 5

F 5 D 5

Resource Leveling Example

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1. Determine the critical and other paths. Path 1: A - D - E = 35 days Path 2: B - C - F = 15 days Path 3: A - D - F = 25 days

2. Plot resource loading against time for each activity. Start with the CP: • Task A uses 5 Programmers and takes days

1 through 10. • Task D uses 5 Programmers and takes days

10 through 20, after its predecessor, A. • Task E uses 5 Programmers and takes days

20 through 35, after its predecessor, D.

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2. (cont.) Path 2 and Path 3: • Task B uses 5 Programmers and takes days

1 through 5, concurrently with A. • Task C uses 10 Programmers and takes days

5 through 15, concurrently with A and D, and after its predecessor, B.

• Task F uses 5 Programmers and takes days 20 through 25, concurrently with E.

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Total Resource Demand:

Days Unleveled Leveled

1...5 10 10

5...10 15 10

10...15 15 10

15...20 5 10

20...25 10 10

25...30 5 10

30...35 5 5

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Gantt Chart Per Initial Project Plan

Task Duration Day

5 Day 10

Day 15

Day 20

Day 25

Day 30

Day 35

Day 40

Day 45

A 10 R = 5 R = 5

B 5 R = 5

C 10 R =10 R = 10

D 10 R = 5 R = 5

E 15 R = 5 R = 5 R = 5

F 5 R = 5

Resource Diagram - Before Leveling:

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Resource Diagram – After Leveling:

Gantt Chart After Resources are Leveled

Task Duration Day

5 Day 10

Day 15

Day 20

Day 25

Day 30

Day 35

Day 40

Day 45

A 10 R = 5 R = 5

B 5 R = 5

C 10 R =5 R = 5 R = 5 R =5

D 10 R = 5 R = 5

E 15 R = 5 R = 5 R = 5

F 5 R = 5

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Program Evaluation and Review Technique (PERT)

• Way of estimating duration times • Uses “weighted average”

• Advantage - addresses risk • Disadvantages - there are better ways,

confusion with PERT/CPM method

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PERT (3-point Estimate) = Best time + 4X Average time +Worst time

6 Example: Travel time to work each day Best time = 17 minutes Average time = 22 minutes Worst time = 35 minutes PERT = 17 +4(22) + 35 6 PERT = 23 minutes

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How to control your Project • Reality Checks - “death march” projects • Have regular meetings • Waiting for meetings to start consumes 18-min

each day. • Communicate revisions • Know who has copies • Let others know that you take your project

seriously

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“Golden Rule of Planning” • Get the persons who will do the

work, plan the work • They know more about the job

than anyone • Remember - it’s their task, not

yours • Even though Project Managers are

responsible for developing the Project Schedule, they must have inputs from Team Members and the Customer/Client.

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Project success depends upon: • Top Management support • Clear Mission • Good Project Schedule/Plan • Good Client Support • Adequate Resources • Choosing the right team

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Project Managers must: • Have good leadership skills • Lead my example • Help facilitate actions • Coordinate Activities • Communicate Effectively

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Successful Project Management

???QUESTIONS???

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