Identifying Project Participants
1. Who are the project participants?
2. How do stakeholders influence a project?
Identifying Goals and Objectives
1. What is project planning?
2. What is the project objective, and why should I clearly define it?
Determining Project Constraints
1. What constraints affect a project?
§
Performance
standards Time Budget
2. How should I prioritize project constraints?
Identifying Project Activities
1. Why and how should I identify project activities?
2. What is a WBS and how can it help me plan a project?
3. How do I create a WBS?
Sequencing Activities
1. What is the purpose of sequencing activities?
2. What types of activities exist in a project?
· Predecessor and successor activities Concurrent activities Dummy activities
· Lag activities Milestones
3. How do I begin sequencing my project activities?
Identifying Dependencies
1. How do dependencies affect activity sequencing?
· Mandatory dependencies Discretionary dependencies External dependencies
2. What other sequencing dependencies should I understand?
·
Finish-to-start
dependency Finish-to-finish Start-to-start Start-to-finish dependency
3. How do leads affect activity sequencing?
4. How do lags affect activity sequencing?
Managing Risk and Resources
1. How do dependencies affect risk?
2. What is slack, and how does it affect risk management?
3. How can I manage resources when sequencing dependencies?
Understanding Activity Analysis
1. What is activity analysis?
2. How can I determine the appropriate level of detail needed in my
activity analysis?
3. How does activity analysis affect activity sequencing?
Performing Activity Analysis
1. How can I complete an activity analysis?
2. What items can I include on an activity analysis form?
3. What items must I include on an activity analysis form?
4. How should I assign work?
5. What is the purpose of estimating time duration and cost for
activities?
6. How can I estimate the time duration and cost of an activity?
· Top-down estimating Bottom-up Parametric
Phased estimating
7. What assumptions about activity completion time may be involved in
estimating duration?
8. How can I identify the results an activity should produce?
9. What is the importance of identifying potential problems and
opportunities?
10. What should be done in the planning phase about potential problems
and opportunities?
Fundamentals of Schedule Development
1. What is schedule development?
2. What are the benefits of schedule development?
3. What are two major constraints to consider during schedule
development?
Mathematical Analysis Techniques
1. What are the two most widely known mathematical analysis techniques
for schedule development?
Critical Path Method Program Evaluation and Review Technique
Project Network Diagrams
1. What are project network diagrams?
2. Why are networks used during schedule development?
3. What types of arrow charting can I use to create project network
diagrams?
Activity-on-node method Activity-on-arrow method
4. Which method of arrow charting is more common?
Gantt Charts
1. What are Gantt charts?
2. What are some advantages and disadvantages of using Gantt charts?
3. How can I create a Gantt chart?
4. What can I do if the resources and schedule do not coincide?
Understanding CPM and PERT
1. What are CPM and PERT?
2. What are the benefits of scheduling projects using CPM or PERT?
3. What are the critical path and critical activities?
4. How can I calculate project duration using a project's critical path?
5. What are float and free float?
6. How do resources affect CPM and PERT schedules?
Scheduling with CPM
1. What are the steps for Critical Path Method scheduling?
2. What terms and calculations are important when discussing the
Critical Path Method?
· Earliest start time Earliest finish time Latest
finish time Latest start time
3. How is float calculated?
Compressing Activity Duration
1. What are methods of duration compression used during schedule
development?
· Crashing Fast
tracking Assigning limited overtime Implementing shortcuts
Fundamentals of Cost Estimating
1. Why is it important to know the resource rates when estimating costs?
2. How is historical information used when estimating costs?
3. How do activity duration estimates affect cost estimates?
4. What types of supporting details are necessary when creating cost
estimates?
5. How are labor estimates used to complete cost estimates?
6. What are some project estimating pitfalls?
7. What problems can produce errors when I complete cost estimates?
8. How can I estimate costs for projects that are R&D oriented?
Organizational Financial Systems
1. What types of costs will a project incur?
2. What organizational financial issues can affect a project?
3. Why should I be aware of company financial cycles?
Project Budget Optimization
1. What factors should I be aware of when negotiating for a larger
budget?
2. What actions can help me make the most of available funds?
Change Control Systems
1. What is project control?
2. What is project change control?
3. What is a change control system?
4. What are the objectives of a change control system?
5. What are some characteristics of a good change control system?
· An emphasis on project success A focus on what is important
· A system for taking corrective action An emphasis on timely response
Methods of Controlling Change
1. What items do I need to control changes to a project?
2. What role do status meetings play in controlling a project?
3. What process can I use to accommodate change?
1. Assess the potential change
2. Modify the project plan
3. Examine alternatives
4. Navigate project procedures
5. Deliver sufficient information
4. What is a change control board?
5. What are some results of project change control?
Methods for Measuring Performance
1. Why is it important to measure project performance?
2. How can I determine whether a project is meeting its quality
standards?
3. How can I determine the level of morale of the project team?
4. What methods can I use to measure project performance?
· Variance analysis Trend analysis Earned
value analysis
5. What calculations are used during earned value analysis?
· Cost variance Schedule variance
· Cost performance index Schedule performance index
Schedule and Cost Control
1. What is project control?
2. What items are used to control project performance?
3. Why is it important to control the project schedule, and how can I do
so?
4. What items are used to control a project's schedule?
5. Why is it important to control the project cost, and how can I do so?
6. What items are used to control a project's budget?
Fundamentals of Performance Reporting
1. What is performance reporting, and why is it important?
2. How does performance reporting facilitate project control?
3. What is a reporting period?
4. How often should performance reports be produced?
5. How can performance reports be classified?
· Routine Exception Special analysis
6. What is a progress report?
7. What is a status report?
8. How can I determine which performance reports are necessary for a
project?
9. What are some frequent problems with progress reporting?
10. How does performance reporting affect project costs?
Reporting the Project Close
1. What steps should I follow to close a project?
1. Create a task list 2.
Communicate about the close
3. Celebrate accomplishments 4.
Release the resources
2. What are close-out reports?
3. What information should be included in a project's final report?
4. Why is close-out reporting often neglected?
Who are the
project participants?
In a given project,
the participants will include at least the project manager and the project
originator. In rare instances, these roles may be filled by one individual, but
usually the project manager is someone who manages the project for the
originator. The project originator may be the manager's boss or a customer.
Other individuals or groups that can be considered project participants include
people assigned to work on the project; the public, if they are affected by the
outcome of the project; the parent organization, who staffs the project; and
customers, if they use a product created by the project.
Any individual,
group, or organization involved in a project or whose interests may be
influenced as a result of project achievement can be considered project
stakeholders. As a project manager, it is important for you to identify all the
stakeholders for your project and determine their expectations for it. Managing
stakeholders' expectations reduces conflict and leads to project success.
How do
stakeholders influence a project?
Stakeholders have
various levels of influence on a project:
· Some stakeholders simply need to feel
appreciated throughout the project process.
· Some stakeholders outline specific
requirements they want the project to meet. You should advise the stakeholders
if their requirements for a project are not going to be completely fulfilled.
· Some stakeholders have specific requirements
they want the project to meet, and their stake in the project is large enough
that you should strive to meet their needs under most circumstances.
You should adjust
the effort you put into meeting stakeholders' needs based on the level of
influence they have on the project.
What is project
planning?
Project planning is
often considered the most important step of the project management process.
During project planning, the project manager and stakeholders define the
project's goals, then determine how to meet those goals. Planning helps you
avoid costly changes during the process of completing the project by ensuring
that the work is done correctly the first time.
What is the
project objective, and why should I clearly define it?
A project's
objective is a written statement that details what goals the project should
accomplish. Clearly defining the project's objective enables you to know
exactly what you need to accomplish. Regardless of how hard you work at project
management, if the project does not accomplish the correct goal, the project
fails. Therefore, you must have a clear objective you can work toward to ensure
that you accomplish all that is expected of the project.
What constraints
affect a project?
There are three
constraints that affect a project:
Performance standards Time Budget
· Performance standards
Performance
standards are the goals set forth for a project. Since a project cannot be successful
if it does not accomplish the goals the stakeholders set for it, performance
standards are vital to a project. Performance standards are constraints because
they can dictate how project work must be completed. When considering the
performance standards of a project, you should always look deeper than the
initial goals the project originator or other stakeholders set.
Frequently,
stakeholders do not explicitly state every goal they want a project to achieve.
Nevertheless, you should understand that stakeholders will judge the success of
the project based on their expectations, even if those expectations were not
clearly defined. Therefore, while planning a project, you should discover as
much information as you can about stakeholders' expectations.
· Time
The amount of time
you are given to complete a project will affect every aspect of it. Time can
greatly affect the amount of resources needed to complete a project, as well as
the order in which you complete tasks and activities. As you plan your project,
you should keep in mind any organizational or political issues that could arise
and affect your ability to complete the project on time.
· Budget
Budget allocations
will influence your ability to accomplish a project by determining what
resources you can use to achieve your project's objective. Your project budget
will also influence whether you can achieve the specified performance standards
within the allotted time.
Often, before
taking responsibility for a project, project managers act as consultants for
project originators. The consultation is a valuable opportunity that can
increase your chances for success as a project manager. If you are given an
opportunity to work as a consultant before a project begins, be sure to
research the project thoroughly before making a budget proposal. You should
examine any organizational or political influences that could affect the
project completion.
How should I
prioritize project constraints?
Before you can
effectively plan a project, you must prioritize the performance standard,
budget, and time constraints. Prioritizing constraints is essential. You will
make strategic decisions based on the constraints so that you can make the best
use of the project resources.
As a project
manager, you will have to make trade-offs based on one or more of the
constraints. How well you compromise and make those trade-offs affects the
success of the project.
Therefore, you
should determine the most important constraint, or the driver, since it will
drive the activities needed to complete the project. If you, as the project
manager, fail to adjust for this constraint, the project will fail even if you
adjust to the other constraints. The least important constraint, or the weak
constraint, is not as important to the success of your project. The remaining
constraint is the middle constraint.
As you prioritize
project constraints, remember that you do not decide which constraint is most
important; rather, you identify the relative importance of each constraint
based upon the expectations the project originator has for the project. You
must determine these expectations and how they influence the constraints, so
you can manage the project appropriately.
Once you have
identified the driver, middle, and weak constraints for your project, you will
be prepared to begin planning your project. Understanding the level of
importance of each constraint will provide you with a strategic tool for
managing your project. For example, since the weak constraint is not as
critical for project success as the driver and middle constraints, it often
provides a source of flexibility for the project.
Imagine you are
working on a project in which time is the driver and performance standards are
the middle constraint. If your project falls behind schedule, you could make
use of the flexibility in the weak constraint by using your budget to add
resources that can move the project back on schedule.
Why and how
should I identify project activities?
It is essential to
the success of your project to identify all the activities, or elements of
work, that must occur in order to complete the project. As you plan a project,
it is important to identify every activity, so you can budget the time and
resources needed to complete them. Failing to identify all of the activities
can cause unexpected problems. One way to ensure that you identify all of a
project's activities is to use a work breakdown structure.
What is a WBS
and how can it help me plan a project?
A WBS is the
foundation for project planning and is vital to project management. A WBS helps
you identify complex project activities and divide those activities into
smaller activities. Focusing on smaller activities simplifies estimating the
duration, cost, and resource consumption for the project.
How do I create
a WBS?
To create a WBS,
the first step you should take is to brainstorm the different project
activities. If other people will be working on the project with you, include
them in the brainstorming process. Write down every possible activity that will
need to be completed to achieve the project's goals. A helpful way to record
the activities is to write individual activities on sticky notes. This method
will facilitate grouping and arranging the activities later.
The second step you
should take to create a WBS is to refine your activity list. It is possible
that you will create multiple strategies for accomplishing a project's goals.
Each strategy may consist of a different set of activities. If this is true for
your project, you should choose the best approach for achieving the goals and
make any necessary adjustments to the set of activities. In addition, you may
discover that some activities need to be broken down into smaller ones, while
others may need to be combined. Use your best judgement to determine a final
set of activities.
After you have
identified and recorded the project activities, group the sticky notes into
logical categories, such as ''Purchasing,'' ''Installing,'' or ''Testing.'' As
you do so, look for any places where you may have forgotten activities. Once
you have completely organized the categories, review the entire set again to
ensure that you have not forgotten any activities.
What is the
purpose of sequencing activities?
The purpose of
sequencing project activities is to arrange them in a logical order for
completion. Since activity sequencing enables you to determine the order of
activity completion that best manages the time and resources available for
completing the project, it is an important part of scheduling.
What types of
activities exist in a project?
Part of activity
sequencing is recognizing that there are different kinds of activities and
understanding the relationships among them. There are several types of
activities that may be part of your project:
· Predecessor and successor activities
· Concurrent activities
· Dummy activities
· Lag activities
· Milestones
· Predecessor and successor activities
Predecessor
activities must be finished before other activities can begin. The activities
that follow predecessor activities are known as successor, or dependent,
activities. Successor activities are ''links'' in the chain of activity flow
from a project's start through its completion. Once a successor activity is
completed, it can either be a predecessor for other activities, or it can be
the final activity of a project. Some successor activities can be completed
concurrently.
Since a dependency
exists between predecessor and successor activities, they are said to produce
sequence constraints. Since sequence constraints dictate a specific order in
which some activities must be completed, they limit the flexibility you have in
scheduling.
· Concurrent activities
Concurrent, or
parallel, activities are another type of activity that may be part of your
project. Since concurrent activities can be completed simultaneously, they can
shorten the duration of a project. When scheduling concurrent activities, be
sure there are enough resources available to execute them at the same time.
· Dummy activities
Another type of
activity you may include in your project schedule is a dummy activity. Dummy
activities are used to demonstrate how concurrent activities relate to one
another, and they can be used to improve the layout of your project schedule.
Dummy activities neither expend resources nor require time to complete.
· Lag activities
Another type of
activity you may encounter in your project is a lag activity. Lag activities do
not require the use of any resources since they occur when there is a waiting
period, or ''lag'' time, between the time that one activity is completed and
the next one begins. Although there is no work associated with lag activities,
it is helpful to include them in your project schedule so that you do not
forget that the lag time exists.
· Milestones
Milestones are another
type of activity commonly used in project scheduling. Milestones do not require
work, use time, or expend resources. They are used in project scheduling to
indicate that a series of activities is complete, to represent progress points,
or to denote when a meeting should be held. Although milestones appear along
the project schedule, it is important to note that they do not affect work
flow.
How do I begin
sequencing my project activities?
You can begin
sequencing your project's activities by creating a Program Evaluation and
Review Technique (PERT) chart. A PERT chart will help you determine the best
sequence for your project's activities. You can create a PERT chart by using
the set of activities you identified in the work breakdown structure (WBS). The
sticky notes you used for the WBS will facilitate the process of developing a
PERT chart.
Begin by
determining which of the activities have or do not have successors or
predecessors. Activities that have successors but no predecessors are starting
points for your PERT chart. Activities that have successors and predecessors
comprise the pathways from the starting points to the end points of your chart.
Activities that have predecessors but no successors are ending points for your
PERT chart.
A good way to
convert your WBS sticky notes into a PERT chart is to arrange them on a wall in
the sequence in which the activities must occur. Using sticky notes allows you
to arrange the activities in various ways to determine the best order of
completion for a project.
When scheduling the
activities in a project, you can make strategic choices about how you sequence
the dependencies among activities. Therefore, you should try as many
combinations as possible and analyze the benefits and drawbacks of each
combination. Doing so will enable you to develop the best possible sequence for
the activities in your project.
How do
dependencies affect activity sequencing?
Dependencies
dictate when an activity can be performed, which affects activity sequencing.
There are three categories of dependencies you should understand:
Mandatory dependencies Discretionary
dependencies External
dependencies
· Mandatory dependencies
Mandatory
dependencies, or hard logic, are restrictions specific to an activity. They
require that one activity be completed before another can begin. For example,
when building a house, the foundation must be finished before raising the
walls. Mandatory dependencies are static, which means that they never change.
· Discretionary dependencies
Discretionary dependencies,
or soft logic, are restrictions outlined by the project manager based on two
factors. First, if there are multiple methods of doing an activity, the project
manager should choose the best method. For example, if you have the option to
use one of two software programs, you can use the program you think best suits
your needs for activity completion. Secondly, if there are many activity
sequences, you can pick the one most desirable for achieving the project's
objective.
As a project
manager, you should use discretionary dependencies only after careful
consideration since they can affect the activity sequence throughout an entire
project.
· External dependencies
External
dependencies are restrictions that result from activities outside the project
itself. This type of dependency creates restrictions that are beyond your
control. External dependencies include such things as unfavorable weather
conditions at a construction site or an important package delayed in the mail.
What other
sequencing dependencies should I understand?
There are specific
relationships that occur between certain project activities. These
relationships create dependencies between the activities and affect how you
schedule activities. There are four dependency relationships that affect
activity sequencing, and they may fall under the categories of mandatory or
discretionary dependencies:
· Finish-to-start dependency
· Finish-to-finish dependency
· Start-to-start dependency
· Start-to-finish dependency
· Finish-to-start dependency
The finish-to-start
dependency is the most common activity relationship you will encounter when
creating a project schedule. In the finish-to-start dependency, Activity X must
finish before Activity Y can start. For example, if you were installing a LAN
at your office, you would need to purchase cables before you could install
them.
· Finish-to-finish dependency
Another dependency
you will encounter while creating a project schedule is the finish-to-finish
dependency. In the finish-to-finish dependency, Activity X must finish before
Activity Y can finish. This dependency can increase the efficiency of a
project. For example, for a LAN installation project, you could begin
connecting computers to the network before all of the offices are wired. By
making the office wiring finish-to-finish dependent on connecting computers to
the network, you allow work to begin sooner than if the activities were
finish-to-start dependent.
· Start-to-start dependency
The start-to-start
dependency is another activity relationship that will affect how you schedule
activities. In the start-to-start dependency, Activity X must start before
Activity Y can start. In the LAN project, you could make developing training
sessions start-to-start dependent on creating manuals since you could begin
setting times for training sessions before all the training materials have been
produced.
· Start-to-finish dependency
A start-to-finish
dependency can also occur between activities in a project. However, this
relationship is usually less common than the finish-to-start, finish-to-finish,
and start-to-start dependencies. In the start-to-finish dependency, Activity X
must start before Activity Y can finish.
How do leads
affect activity sequencing?
When two activities
are controlled by a finish-to-start dependency, a lead represents an
accelerated time-span between the completion of a predecessor activity and the
start of its successor. For example, if Activity A is a predecessor to Activity
B, and there is a five-day lead, then Activity B can start five days before
Activity A is finished.
How do lags
affect activity sequencing?
In a
finish-to-start dependency, a lag is the time between the finish of a
predecessor activity and the start of its successor. Suppose that Activity C is
a predecessor for Activity D, and once Activity C has been completed, Activity
D cannot begin until two days later. The two days between the completion of
Activity C and the start of Activity D is a lag.
How do
dependencies affect risk?
Activity
dependencies can increase or decrease a project's risk of failure since they
can influence whether a project remains on schedule, on budget, and within the
performance standards. Therefore, as you sequence the activities, you need to
determine how the activity dependencies will affect the outcome of the project.
What is slack,
and how does it affect risk management?
Slack is the
difference in time required to complete concurrent activities. Frequently, you
may not need the same amount of time to complete two concurrent activities. As
a general rule, you should remember that slack decreases risk since the extra
time can often be used to enhance the quality of work being completed or to
reduce costs by completing an activity more slowly and using fewer resources.
How can I manage
resources when sequencing dependencies?
As you schedule the
activities in your project and establish dependencies, you must keep in mind
the amount of resources needed and available for each activity. For example, if
you want to make two tasks concurrent to shorten the amount of time needed to
complete them, you must first determine whether you have the necessary
resources at your disposal to complete the activities at the same time.
Resource
availability can also affect the time needed to perform an individual activity.
If the ideal resource for an activity is unavailable, you may need to consider
an alternate resource. The alternate resource may or may not affect the
activity's duration.
What is activity
analysis?
Activity analysis
is the process of studying activities in your project so that you fully
understand all aspects of the project. Activity analysis will help you gather
data, write specifications, and develop estimates for activities. In addition,
analysis will help you assign tasks appropriately and identify potential
problems that could disrupt progress. Collecting extensive information about
each activity will not only help you understand all the elements of your
project but also help you manage the project and control its performance.
How can I
determine the appropriate level of detail needed in my activity analysis?
The appropriate
level of detail needed in your activity analysis is often determined by the
complexity and expense of your project. Complex and expensive projects usually
require more in-depth analysis than smaller, less sophisticated projects. A
mistake in a costly project could have more serious consequences than a mistake
in an inexpensive project.
There are two
issues you should consider when determining the level of analysis to complete
for your project. The first issue is how closely involved you will be with the
project as it is completed. If you have a high level of involvement in the
project work as it is completed, your activity analysis will not need to be as
detailed as it would need to be if you have little involvement as the work is
performed.
The second issue
that can help you determine the level of activity analysis needed is the
abilities of the people working on the project. If your project team is
talented and motivated to achieve the project's goals, they will need less
activity detail listed on the activity analysis forms in order to perform the
work correctly.
How does
activity analysis affect activity sequencing?
As you analyze the
activities in your project, you may discover information that influences how
you should schedule them. Therefore, as you perform activity analysis, you may
need to return to your PERT chart and make changes to the dependency sequences.
As a result, activity analysis helps you finalize the project schedule.
How can I
complete an activity analysis?
The best way to
analyze project activities is to create an activity analysis form and complete
one for every activity. How you design an activity analysis form depends on the
level of analysis you plan to do.
What items can I
include on an activity analysis form?
Since the level of
detail you need in your activity analysis will vary by project, there are many
items you should consider adding to an activity analysis form:
· An activity name. It is helpful to assign specific names to
each activity. The activity name is usually the name it was given in the WBS.
For example, some activity names might include ''Train employees'' or ''Install
software.''
· An activity number. Numbering each activity can help you
organize the work for a project. Base your activity numbers on the WBS for the
project. Start by numbering each of the categories into which you divided the
WBS activities. Then, number the activities under each category. For example,
imagine category two on your WBS is ''Purchasing'' and under this category the
third activity is to ''Purchase printer.'' The number for this activity would
be 2-3.
· Predecessor and successor activities. Including an activity's predecessor and
successor on the activity analysis form can be helpful since these activities
are dependent on each other. You can simply list the predecessor and successor
activities' names and numbers, which will help you locate them on the WBS.
· Equipment and supplies. In order for each activity to be completed
smoothly, it is helpful to list all the equipment and supplies needed.
Forgetting equipment and supplies can cause problems or delays in the project.
In addition, you may want to note on your activity analysis form where the
equipment and supplies can be obtained.
· ''Must finish'' or ''must start'' dates. Occasionally, activities may have dates
upon which they must start or finish. These dates often depend on the
scheduling of the surrounding activities. For example, if you want to train
employees on a new task, and you intend to give them a handbook, you might
assign a ''must finish'' date for printing the handbooks. A late activity
completion time could disrupt the project schedule. Since you can only estimate
how long most projects will take to complete, only use ''must finish'' and
''must start'' dates when necessary.
· Milestones. Since a project manager must determine whether work is being completed
on time, on budget, and within the performance standards, you should assign
checkpoints, or milestones, at which progress can be monitored. The number of
milestones needed will vary among activities based on activity duration and
complexity.
What items must
I include on an activity analysis form?
Regardless of the
level of analysis you intend to complete, the activity analysis form should
include four specific details:
· Who is responsible for completing the
activity
· An estimate of activity duration
· An estimate of activity cost
· The results the activity will produce
How should I
assign work?
Assigning who will
complete each activity is a critical planning step. The person responsible for
an activity has a great deal of influence on the outcome of the activity. As
you assign work, you should ask yourself several questions to determine whether
an individual is the right person to complete an activity:
· Does the person have the skills needed to
complete the activity within the specifications?
· Does the person have time to work on the
activity at the time specified in your schedule?
· What factors, such as other responsibilities
and commitments, will affect the person's ability to complete the activity?
If you do not have
enough information about an activity to assign it, or if you cannot find the
right individual, you should record as much information as possible about the
skills an individual would need to complete the activity. Doing so will help
you assign the activity at a later time.
What is the
purpose of estimating time duration and cost for activities?
Estimating the time
duration and cost of activities are important steps for successfully planning a
project. The purpose of assessing activity duration is to determine how long a
project will take to complete, as well as the number of work shifts needed for
a project. Since they will be able to make the most reasonable estimates based
on their experience, project team members should be involved in assessing
activity duration.
Estimating cost
involves identifying the cost of the resources needed to complete a project.
When completing a cost estimate, you will always have a degree of uncertainty.
The level of uncertainty depends on your experience, as well as the type of
project. Generally, throughout the life of a project, more details become
available and the cost estimate can be refined.
How can I
estimate the time duration and cost of an activity?
There are several
types of estimating you can use to determine the time duration and cost of
project activities:
Top-down estimating Bottom-up
estimating Parametric estimating Phased estimating
· Top-down estimating
Top-down estimating
utilizes a previous project's work breakdown structure (WBS) to compute the
duration of a similar new project. When using top-down estimating, you assume
that estimates for the past project accurately apply to the new one. It is
important that the degree of similarity between the projects is very close, or
estimates for the new project will be inaccurate.
Top-down estimating
is generally useful when you do not have a finely detailed WBS for a new
project. Another name for top-down estimating is ''analogous estimating.''
· Bottom-up estimating
Bottom-up
estimating involves both duration and cost estimates. For bottom-up estimating,
duration and cost estimates start at the lowest level of activity on the WBS,
then work up toward the highest level of activity. Once duration and cost
estimates are completed for each activity, they are combined into a single time
and cost forecast for the entire project.
The benefit of this
technique is that it yields accurate total time and cost estimates for a project.
Accurate estimates allow for realistic project scheduling and budget planning.
· Parametric estimating
The parametric
estimating technique uses historical data and other variables to calculate
statistical relationships, resulting in a cost estimate. This technique takes a
basic variable and uses it as a multiplier to figure the cost for an entire
project. For example, if homes in a specific subdivision generally cost $85 per
square foot, and the home you are building is 1200 square feet, the total project
cost estimate can be found by multiplying the two. The cost estimate for your
home is $102,000.
When using
parametric estimating, it is important to understand that the cost estimates
are not always accurate. The estimates can range from less than 25 percent
accurate to better than 75 percent accurate, depending on the statistical data
used to make the calculations. Project stakeholders must understand that
parametric estimates are susceptible to change; otherwise, they run the risk of
finalizing project goals based on unrealistic estimates.
· Phased estimating
Project managers
may have difficulty estimating a project's entire cost at the outset of the
project if there is not enough information available to understand all of the
project details. The phased estimating technique allows a project to be broken
into phases, with separate cost estimates for each phase, rather than
completing an estimate for an entire project.
As each phase of a
project is finished, estimates for the next phase are completed. This estimating
method is generally easier to use than other methods and results in a more
accurate cost estimate. In addition, phased estimating protects you from the
risks involved with committing to cost estimates for the entire project before
you have enough information to estimate the overall costs accurately.
What assumptions
about activity completion time may be involved in estimating duration?
Estimating activity
duration may involve three assumptions that are combined to determine the
expected duration of an activity:
· Optimistic completion time assumes that an activity will proceed from
start to finish without interruptions or obstacles.
· Pessimistic completion time assumes that every possible
activity-related problem will occur prior to activity completion.
· Most likely completion time assumes that some difficulties will arise
during the course of an activity.
How can I
identify the results an activity should produce?
Two types of
results an activity may produce include specifications and deliverables. Specifications
are detailed performance standards that must be achieved when an activity is
completed. Deliverables are end products that are produced by an activity. On
the activity analysis form, you should identify the most important
specifications or the ones that will have the greatest influence on how the
activity must be completed.
What is the
importance of identifying potential problems and opportunities?
Within every
activity exists the potential for problems and opportunities. Since potential
problems can endanger the success of your project and potential opportunities
can increase the chance of success, you must plan for both of these situations.
What should be
done in the planning phase about potential problems and opportunities?
The more action you
take during the planning phase to manage potential problems, the more likely
problems can be resolved effectively or avoided completely. Similarly, you need
to plan for opportunities in order to take advantage of them when they arise.
Some project managers create a document called a Control Point Identification
Chart, which helps them manage potential problems and opportunities for each
activity.
The Control Point
Identification Chart helps you identify what could go wrong or right, when
something might go wrong or right, and how to overcome the problem or take
advantage of the opportunity. To create a Control Point Identification Chart,
brainstorm what problems or opportunities could occur while an activity is
performed. Then, identify warning signals that can alert you if the problem or
opportunity occurs during the activity. Finally, list strategies for managing
the problem or opportunity.
What is schedule
development?
Schedule
development is the process by which a project manager arranges a project's main
activities into a schedule. Project scheduling ensures effective time
management during the project and ensures that a project is completed within a
reasonable time frame.
During schedule
development, you should assign a start and end date to each activity. When
doing so, you must consider activity relationships, activity duration, and
resource availability.
What are the
benefits of schedule development?
Schedule
development provides several benefits for a project:
· A schedule establishes activity and project
start and end dates. A
project's life cycle begins with the first activity on the schedule, and ends
with the final activity on the schedule. The end date for the final activity
should reflect the end date for the entire project. Since the project end date
is based on the time estimates for each activity, it should represent a
practical goal for the project manager and team.
· A schedule facilitates monitoring activity
completion. A schedule can
be used to monitor activity completion, which ensures that the project will be
completed within a practical amount of time. Using the schedule as a monitoring
tool is beneficial since incomplete activities can disrupt the timing of the
rest of the project.
· A schedule illustrates activity
interdependence. Related
activities are grouped together on a schedule enabling you to discover
potential conflicts between activities. Recognizing conflicts before the
project begins helps identify and avoid problems during the project life cycle.
· A schedule dictates when project team
members work. Since all
project team members do not need to be present for each project activity, a
schedule is beneficial because it establishes the dates and times when team
members need to complete work.
What are two
major constraints to consider during schedule development?
When developing a
project schedule, you should consider two major constraints. First, a
project completion date may be imposed by an outside entity. For example,
if your company wants to redesign one of its products, management may dictate
the design completion date.
A second constraint
to consider during schedule development is the time frame expectations of
project stakeholders. Since stakeholders expect to see progress, you should
include milestones on project schedules. The milestones enable stakeholders to
verify what progress has been made.
What are the two
most widely known mathematical analysis techniques for schedule development?
The following are
the two most widely known mathematical analysis techniques for schedule
development:
Critical Path Method Program
Evaluation and Review Technique
· Critical Path Method
The Critical Path
Method (CPM) is a schedule development technique used to identify the least
flexible activities in a project based on float calculations. Float is the
length of time that the start of an activity can be deferred without affecting
the completion date for the entire project.
Float calculations
are used to determine the longest sequence of activities that cannot be
completed concurrently, which yields the earliest time of project completion.
This long sequence of activities is the critical path. Any activity delays on
the critical path affect the duration of the whole project.
Project managers
use CPM to find a logical flow for project activities, identify where the
critical path can be shortened, and determine where resources can be added to
improve the project. In addition, CPM can be used to develop a crash plan for a
schedule. Crash refers to the process of accelerating activity completion by
adding resources. A crash plan illustrates the effects of crashing on
individual activity duration and overall project cost.
· Program Evaluation and Review Technique
The Program Evaluation
and Review Technique (PERT) for schedule development is used to determine
project duration based on three time estimates: optimistic, pessimistic, and
most likely. PERT is used mainly for large-scale projects, since it can display
considerable amounts of complex data in an orderly form. Project managers use
PERT charts to determine which areas of a project require the most effort to
stay on schedule.
What are project
network diagrams?
Nodes and arrows on
a project network diagram illustrate the activity relationships and completion
sequences from the beginning of a project to the end. A network starts with an
activity that does not have any predecessors and ends with an activity that
does not have any successors. Network diagrams are generally constructed so
that workflow starts on the left and proceeds to the right.
Why are networks
used during schedule development?
Networks are used
when planning a project's schedule for a variety of reasons:
· Networks highlight dependencies among
project activities
· Networks identify the critical path
· Networks indicate the time needed for each
activity
· Networks illustrate float and free float
What types of
arrow charting can I use to create project network diagrams?
There are two
methods of arrow charting used to create project network diagrams:
· Activity-on-node method Activity-on-arrow
method
· Activity-on-node method
One way to create a
project network diagram is to use the activity-on-node method. On an
activity-on-node diagram, nodes, or boxes, represent activities, while arrows
drawn between the nodes represent activity relationships.
· Activity-on-arrow method
Another way to
create a project network diagram is to use the activity-on-arrow method. This
method uses arrows to represent activities, while the nodes represent events
and demonstrate how activities relate to one another.
Which method of
arrow charting is more common?
Activity-on-node is
more commonly used than activity-on-arrow since many project management
software programs use activity-on-node diagrams. In addition, activity-on-node
diagrams can be created easily from a work breakdown structure created with
sticky notes since the notes can become the nodes. Neither method is better than
the other, and both allow you to schedule project activities and analyze
dependencies among activities.
Gantt Charts
What are Gantt
charts?
A Gantt chart is a
bar chart that displays activity duration. The horizontal axis of a Gantt chart
indicates the project schedule, while the vertical axis indicates the
activities from the work breakdown structure. Symbols on Gantt charts denote
such things as milestones and project concerns.
What are some
advantages and disadvantages of using Gantt charts?
Using Gantt charts
can be advantageous since they:
· Incorporate the work breakdown structure to
illustrate a project's activity sequence from start to finish
· Show individual activity start and end dates
· Summarize activity descriptions, which makes
the charts easy to understand
· Can be updated simply by adding or deleting
lines and columns from the chart
· Can be read easily by team members
Using Gantt charts
also has some disadvantages, which include the inability to:
· Illustrate activity dependencies
· Exhibit the effects of early or late
activity start times
· Show variations in activity duration
How can I create
a Gantt chart?
The information you
need to create a Gantt chart is readily available in your activity analysis
forms, which you should have created while planning the project. Use the
following process to create a Gantt chart:
1. On the
horizontal axis, create the headings Activity Name, Number, and Duration.
2. Add a fourth
heading that includes time increments for the project schedule.
3. On the vertical
axis, you should list all of the project activities.
4. Then, create
bars that reflect the duration for each activity by matching the activities'
start and finish times to the time increments on the horizontal axis.
You may find it
helpful to differentiate the bars for critical activities from the bars for
non-critical activities. You can do this by coloring or shading the bars. In
addition, if an activity's duration is not as long as the time available for
completing it, you can note the extra time, or float, with a line extending
from the duration bar.
What can I do if
the resources and schedule do not coincide?
After creating your
Gantt chart, you may discover that there are certain periods of time in which
you do not have enough resources available, such as project team members, to
complete all of the activities. This is a common situation and can be remedied
in one of two ways.
One way you can
match your resources and schedule is to increase the number of resources. This
practice is called resource loading. For example, if you do not have enough
team members at certain times during the project, you may be able to use
additional staff for a limited amount of time to complete all of the activities
as scheduled.
The second way you
can match your resources and schedule is to move the schedule so it
accommodates the resources. This practice is called resource leveling. For the
periods of time in which you do not have enough resources to complete the
scheduled activities, you may be able to shift some of the work ahead or behind
so that it can be completed when there are sufficient resources available.
What are CPM and
PERT?
The Critical Path
Method (CPM) and the Program Evaluation and Review Technique (PERT) are both
techniques for network planning. Each shows a project as a sequence of
activities, and each helps a project manager analyze an entire project or
individual activities. In addition, CPM and PERT charts allow a project manager
to analyze the relationships and dependencies among activities.
In the strictest
sense, CPM is charted using activity-on-node diagrams, and PERT is charted
using activity-on-arrow diagrams. However, in actual use, most project managers
generally use a combination of features from PERT and CPM. In addition, most
project management software programs combine aspects of the techniques as well.
What are the
benefits of scheduling projects using CPM or PERT?
Using CPM, PERT, or
a combination of the two provides several benefits. For example, both systems
allow you to determine whether a project can be completed by a designated time.
Another benefit is that CPM and PERT can show when individual activities need
to be completed to achieve the overall project deadline. In addition, both
systems can show which activities have leeway for when they need to start or
end, and both systems can help you determine the critical path for a project.
What are the
critical path and critical activities?
The critical path
on a CPM or PERT chart is the longest chain of activities that cannot be
completed concurrently. This path determines the minimum duration of the entire
project. The activities on the critical path are called critical activities
since missing a deadline on even one affects all subsequent activities and the
overall project deadline. Identifying the critical path and critical activities
on a project schedule can help you determine how priority changes affect a
project and which activities are most affected by the changes. In addition,
identifying the critical path and critical activities can help you determine
where you can adjust the schedule to make up for lost time.
How can I
calculate project duration using a project's critical path?
To calculate the
project duration from an activity-on-node diagram, begin by adding the duration
for each activity, represented by a node, from start to finish through the
network. If there is more than one possible path to follow, determine the
duration times for each path. The path that takes the longest amount of time to
complete is the critical path, and it represents the earliest possible
completion date of the project.
What are float
and free float?
The term float
refers to the length of time that the start of an activity can be deferred
without affecting the completion date for the entire project. Free float, or
slack, differs from float in that it refers to the length of time that an
activity can be deferred without affecting the earliest start time of any
immediate successor activities. Any activity that cannot be deferred without
affecting the project completion date or another activity's start date is said
to have zero float. Calculations of float and free float are completed for each
activity in a network. These calculations are useful if a project manager has
to change the project schedule.
It is important to
understand that on a project network diagram, the critical path is the longest
path with the least amount of float. Therefore, most of the activities along
the critical path have little float time, but they do not necessarily have zero
float.
How do resources
affect CPM and PERT schedules?
You should keep in
mind that resources are not shown on CPM and PERT charts. Your CPM or PERT
schedule might look good on paper, but it also may be unrealistic. As you
create a CPM or PERT chart, you should assume that the necessary resources are
available so that you can develop the schedule without continuously checking on
resource availability. However, once you have drafted the project schedule, you
must take resource availability into consideration. The number and type of
resources you use will affect whether activities can be completed within the
specified durations.
What are the
steps for Critical Path Method scheduling?
There are nine
steps for CPM scheduling:
1. Develop an
activity list that includes all main project activities.
2. Use the activity
list to construct an arrow diagram.
3. Estimate
activity durations for each activity on the network diagram.
4. Examine the
activity sequence represented on the network diagram to ensure that it is
realistic.
5. List the
respective duration times and costs next to each activity.
6. Determine the
critical path of the project.
7. Assign calendar
dates to each activity on the diagram.
8. Compare the
critical path of the CPM chart to the mandatory project dates to make sure you
will complete the project on time according to stakeholder expectations.
9. When necessary,
apply methods to reduce activity duration so that the project can be completed
on time.
What terms and
calculations are important when discussing the Critical Path Method?
When discussing
CPM, it is imperative that you understand four terms and their respective
calculations:
Earliest start time Earliest
finish time Latest
finish time Latest start time
· Earliest start time
The earliest start
time (EST) of an activity is the soonest an actiivyt can start after the
project start. Finding EST involves making a forward pass through a
network diagram along the longest path toward the activity for which you are
estimating EST. Making a forward pass means starting at the beginning of the
diagram and calculating the duration of each activity preceding the activity
for which you are estimating EST. The EST of an activity is equal to the sum of
all predecessor activity durations.
Suppose Activity A
is the first activity of a project, so it does not have predecessor activities.
Since Activity A must begin on Day One of the project, it has an EST of zero.
Suppose Activity C is the third activity of a project, and its predecessors are
Activities A and B. If Activity A has a two-day duration and Activity B has a
one-day duration, then the EST for Activity C is three days. This means three
days must pass after the project start date before Activity C can begin.
· Earliest finish time
The earliest finish
time (EFT) of an activity is the soonest an activity can end after the project
start date. Like EST, finding EFT involves making a forward pass through a
network diagram. The EFT of an activity is equal to the sum of its EST and its
own duration:
EFT = EST +
activity duration
Suppose the EST for
Activity D is four days into the project, and it has a six-day duration. This
means the EFT for Activity D is 10 days from the first day of the project.
· Latest finish time
The latest finish
time (LFT) of an activity is the latest time an activity can finish after the
project start without affecting the end date of the entire project. The latest
finish time is calculated by making a backward pass through the network.
In other words, LFT calculation starts at the end of a project and works
backward to the beginning.
Suppose a project
must be completed by the end of Day 50. The final two project activities are
Activities Y and Z. The latest that Activity Z can finish without disrupting
timely project completion is Day 50. If Activity Z cannot begin until Activity
Y ends, and if Activity Z takes exactly 10 days to complete, then the LFT for
Activity Y is no later than the end of Day 40.
· Latest start time
The latest start
time (LST) is the latest time that an activity can start after the project
start date without affecting the end date of the entire project. The latest
start time of an activity is equal to the difference between its latest finish
time and its duration:
LST = LFT -
activity duration
Suppose Activity Y
has an eight-day duration and an LFT of Day 40 of the project. The LST for
Activity Y is Day 32. If Activity Y does not begin on or before Day 32, then
the project will not finish on time.
How is float
calculated?
To calculate float
for an activity, subtract the earliest finish time from the latest finish time:
Float = LFT - EFT
Suppose Activity D
has an LFT of 25 days and an EFT of 11 days. Using the equation, the float for
Activity D is 14 days. There are 14 days of float in scheduling the start for
Activity D.
What are methods
of duration compression used during schedule development?
Once you have
created and analyzed your schedule, you may need to reduce activity duration to
ensure that the project can be completed on time. Duration compression is the
process of reducing a project's completion time without altering the project
scope, or what the project is expected to accomplish. While the project scope
should not change, duration compression often affects quality and cost and
leads to additional risk. There are several methods of duration compression
that project managers can consider during scheduling:
Crashing Fast
tracking Assigning limited overtime Implementing
shortcuts
· Crashing
One method is
crashing, which accelerates activity completion by using more resources to
complete activities on the critical path. Crashing alters the duration of
activities on the original critical path and can lead to the creation of a new
critical path. Since crashing uses more resources, it often results in a higher
cost for activity completion. For that reason, crash plans should compare crash
cost to the original cost, as well as changes in activity duration. Project
managers can use a crash plan to determine whether crashing is compatible with
the project's budget and goals.
Critical path
activities are the only activities eligible for crashing, since crashing other
activities will not affect the project completion date. Before crashing a
project, always make sure that it is a feasible option for schedule
compression.
· Fast tracking
Another method of
compressing activity duration is fast tracking. Activities that are put on a
fast track are rearranged based on precedence relationships so that the
activities are performed at the same time rather than in sequence. Performing
activities simultaneously reduces project duration.
It is important to
understand that fast tracking involves a high level of risk. A project's major
stakeholders must know the risks before agreeing to fast tracking. Due to the
risk involved, it should be used only when other schedule compression methods
are inadequate for project completion purposes.
· Assigning limited overtime
Assigning limited
overtime to project team members for certain activities can also shorten
overall project duration. It is important to carefully consider which project
team members to include when assigning overtime. Too many hours of overtime
leads to burnout. In addition, overtime should be carefully considered since it
can increase overall project cost.
· Implementing shortcuts
Shortcuts may
include using a specialized computer program to design a construction model,
acquiring resources based on availability rather than the project plan's
original specifications, or reducing the amount of time allotted for product
testing. It is important to note that there is risk involved when using
shortcuts. When implementing shortcuts, you must ensure that they do not
adversely affect the final project results.
Why is it
important to know the resource rates when estimating costs?
Effective cost
estimations require knowing what resources are needed and what rates are
charged for each resource. For example, if it takes 12 team members 10 days to
complete an activity, their wage-rate must be known in order to estimate the
cost of that activity. Or, if the project goal is to produce a new software
program and have 10,000 CD-ROM copies on the market, the cost per CD-ROM must
be known in order to estimate the cost of reaching that goal.
How is
historical information used when estimating costs?
When estimating
costs for a project, you need to analyze historical information. Previous cost
approximations are often available for the resources you plan to use in your
current project. However, if you use historical information to estimate costs,
remember to adjust for inflation. In addition, be sure that a previous project
and your current project are similar enough that a realistic comparison can be
made.
When looking for
historical information on which to base cost estimates, you can use the
following sources:
· The knowledge of experts or team members
with similar experience
· A project database with your company's
records from previous projects
· Industry-wide cost estimate databases
How do activity
duration estimates affect cost estimates?
It is important to
understand that when you assign resources to a project, the activity duration
can affect the cost estimates. For example, suppose you have leased a resource,
such as several extra desktop computers, for three weeks. The computers are
actually needed only during the first and third weeks, so the activity duration
for this example is two weeks. However, since you will have the computers for
three weeks, you must base your cost estimate on three weeks, which increases
project costs.
What types of
supporting details are necessary when creating cost estimates?
When you submit
cost estimates for a project, they should be accompanied by supporting details.
These details will give the estimates credibility and enable the project stakeholders
to better understand them.
Some types of
supporting details include the following:
· A description of the scope of the work for
which cost estimates were completed
· A description of how estimates were made for
each activity
· A reference to any historical data used to
make estimates
· A list of assumptions made when estimating
How are labor
estimates used to complete cost estimates?
When completing a
cost estimate for a project, you have to consider labor estimates. To develop
reasonable cost estimates for labor, identify the necessary man-hours for each
activity on the work breakdown structure (WBS). Next, multiply the man-hours by
the appropriate labor rates. You can determine the appropriate labor rates by
basing them on historical costs for the most recent month or quarter.
Since the labor
rates can fluctuate over time, be aware that they can be difficult to predict
for projects that will take longer than one year to complete.
What are some
project estimating pitfalls?
The following are
several pitfalls you should avoid when completing project cost estimates:
· Poorly defined project scope
· Inadequately defined schedule
· Incorrect work breakdown structure
· Failure to account for inflation
· Failure to account for overhead costs
What problems
can produce errors when I complete cost estimates?
Some project
managers prepare for the possibility of project cost errors by increasing all
estimates by 5 to 10 percent. Although this is a fairly common practice, you
may be able to avoid errors if you are aware of some cost estimating problems
that occur on a regular basis.
One cost estimating
problem is that the price of resources can change over the course of a project.
Make sure you are aware of this possibility and, if at all possible, account
for it in your estimate. In addition, some project resources can spoil or be
wasted, so you should include a cost allowance for these problems and have more
resources available than necessary.
Another cost
estimating problem is that costs are frequently understated in order to make
the project seem more attractive to stakeholders. Never understate project
costs since doing so will have a negative affect on the project's end goal and
on your credibility with the stakeholders.
And finally,
sometimes problems occur without any warning. Always make sure the project has
an allowance for contingencies.
How can I
estimate costs for projects that are R&D oriented?
Occasionally, you
may manage a project that relies heavily on research and development. In this
case, you may have difficulty estimating the project cost because there are so
many unknown variables. You can choose from three methods to help you estimate
cost for an R&D project.
One method is to
examine previous projects that are similar to the current project. After examining
a previous project, you can estimate how much more difficult the current
project is than the previous one. Suppose the current project seems to be three
times more difficult than the previous project. Multiply the number you
estimated by the budget for the previous project. For example, if the budget
was $50,000, you would multiply that by your estimated number of three and
arrive at a budget of $150,000 for you new project. Keep in mind that the more
similar the previous and current projects, the more accurate your cost
estimate.
A second method you
can use to estimate the cost for an R&D project is to make your best guess.
The accuracy of this estimate depends solely on your experience and judgement.
A third method is
to estimate the cost for each activity in the project and add the estimates to
find the cost of the entire project. Although time consuming, this method
yields the most accurate cost estimate.
What types of
costs will a project incur?
Projects can incur
a variety of costs. First, a project may have fixed or variable costs. Fixed
costs do not change and include the price of supplies needed to complete a
project. Variable costs can change based on external factors. For example labor
expenses are variable costs because they can change depending on the duration
of the activities. For this reason, you should always estimate duration before
cost.
What
organizational financial issues can affect a project?
A number of
organizational financial issues can affect a project. Overhead expenses, general
and administrative expenses, and profit goals can be passed on to a project.
Overhead expenses include items such as employee benefits. General and
administrative expenses include items such as rent and utilities. Profit goals
are built in to project costs to ensure that the company earns the desired
amount on the project. You should determine whether these expenses must be
included in your project's budget since they will affect how you manage the
project. In addition, you should find out whether your project budget will be
charged for all labor costs.
Why should I be
aware of company financial cycles?
Since a company's
financial cycles can affect how you manage a project budget, you need to be
aware of them. The amount of operating cash in most organizations is seasonal
to some degree, so the amount of available funds may fluctuate throughout the
year. You should understand these financial cycles, so you can determine
whether funds will be available for your project when they are needed.
What factors
should I be aware of when negotiating for a larger budget?
If someone else has
set your project budget, you may be able to negotiate for more funds. If you
want to negotiate for a larger budget, you should do so as soon as possible.
When you negotiate early in the project or before the project begins, there are
usually more options available for adjusting the budget.
You should also
keep in mind that if the final decision comes down to your estimate versus your
manager's estimate, you will need data to make your case. If you do not have
this information, you will have to settle for your manager's estimate. Before
you negotiate for more funds, it is essential for you to prepare thoroughly.
What actions can
help me make the most of available funds?
If your project
budget is tight, you can use the following actions to make the most of the
available funds:
· Eliminate activities that are nonessential
for project completion.
· Shorten activity duration.
· Use lower-priced resources when possible.
· Spend from other budgets when acceptable.
· Use activity slack.
Reduce the scope of
the project as a last resort
What is project
control?
Control involves
measuring, monitoring, and adjusting aspects of a project to produce a desired
outcome and achieve the project's goals. Since control requires knowledge of
the project status, the project manager and team must continually monitor the
project. Comparing the project's progress to the original plan enables a
project manager to identify deviations from the plan and take corrective
actions to put the project back on the plan. Project managers control projects
by using change control systems, measuring performance, and analyzing reports.
What is project
change control?
Project change
control involves managing changes so they benefit the project and verifying
that performance standards for the project are met. If tools are used to
measure the performance of the project, change control verifies that the tools
are properly configured to ensure accurate measurements.
In addition,
project change control requires recording all changes to the scope of a project
or the work that is required to complete a project. Since changes can have an
impact on more than one area of a project, the project manager must ensure that
all affected individuals are aware of the changes and how the changes affect
them.
What is a change
control system?
The processes used
to control a project are defined and compiled by the project manager and team
into an overall change control system. During project execution, the control
processes are used to track progress and make changes when problems arise. A
change control system should have specific guidelines for processing and
executing changes to a project or project-related documents. This system should
designate what forms should be filled out to request or make changes and to
whom the forms should be given for approval and implementation.
A change control
system should also indicate how and where changes should be documented. In
addition, a change control system should provide a method for evaluating the
benefits and drawbacks of potential changes, how to communicate changes to the
necessary people, and how to monitor the implementation of changes.
What are the
objectives of a change control system?
Change control
systems have three basic objectives. The objectives are to screen project
change requests, document the accepted changes, and update the project plan and
other documents affected by changes.
What are some
characteristics of a good change control system?
Good change control
systems have several characteristics in common:
· An emphasis on project success
· A focus on what is important
· A system for taking corrective action
· An emphasis on timely response
· An emphasis on project success
A change control
system should emphasize the overall success of a project, so it does not
inhibit progress. A project change control system should be flexible so the
project manager can incorporate specific measurement techniques needed during
each phase of the project. Therefore, a change control system should include
provisions for changing performance measurement techniques as necessary. In
addition, the performance measurement techniques, such as measuring cost and
schedule variance, should be reasonably accurate and appropriate for the type
of performance measured.
A change control
system should also operate ethically and efficiently. It should not conceal
actual performance results, and it should not waste resources or strain the
project budget while measuring performance.
· A focus on what is important
Since the goal of
any project is to accomplish the project objectives, a change control system
should focus on elements that can affect whether the objectives are met. Keep
in mind that the elements you control in a project frequently become the most
important elements to the team because more emphasis has been put on them. Be
sure that the elements you control are the most important ones. Otherwise, you
may unintentionally de-emphasize important project elements. For example, if
you control cost and schedule, team members may accomplish the schedule and
budget goals at the expense of quality.
Several questions
can help you determine what elements should be controlled:
· What is the project supposed to accomplish?
· What elements are important to the
organization?
· Which activities are critical for project
success?
· Where should controls be placed in the
process to ensure success?
· A system for taking corrective action
Perhaps the most
important function of a change control system is to give the project manger and
team members rules for taking corrective action. A change control system that
identifies problems without providing guidance to correct the problems will not
ensure the success of the project. When data shows that the project is
deviating from plan, the project manager needs to help put it back on plan.
This does not mean that the project manager has to actually make the corrective
actions, only that he or she needs to ensure that team members are taking steps
to correct the problems.
· An emphasis on timely response
Corrective action
must be made in a timely manner. If corrections are made too late, they may be
ineffective or even make the problems worse. For these reasons, a project
manager always needs to know the current status of the project and, he or she
needs to collect control data on a regular basis. For many projects, weekly
status reports may be sufficient, but a control system should be based on the
needs of each particular project.
What items do I
need to control changes to a project?
You need the
following items to control changes to a project:
· The project plan and scope statement
· A list of project factors that are necessary
to control, such as performance, cost, and time constraints
· Current and accurate performance reports
· Documentation of changes or potential
changes
· Equipment to measure such things as performance
and cost
What role do
status meetings play in controlling a project?
Status meetings are
used during project implementation to discuss status and find solutions to any
problems. For example, if the project is behind schedule, a status meeting
should be held to determine what can be done to put the project back on track.
Or, if the project is going over budget, a status meeting can help identify
ways to lower operating costs.
What process can
I use to accommodate change?
Use the steps in
the AMEND acronym to accommodate changes in a project:
1. Assess the
potential change
2. Modify the
project plan
3. Examine
alternatives
4. Navigate project
procedures
5. Deliver
sufficient information
1. Assess the
potential change
Before making any
changes to a project, you should assess exactly what they should accomplish.
Since changes should be implemented only when necessary to ensure project
success, you need to determine the desired results they should produce. In
addition, you should determine how to measure whether or not the changes create
the desired results.
2. Modify the
project plan
After you have
determined the expected results of a change, modify the project schedule and
budget to see how the change will affect them. In addition, determine whether
the change will affect the project performance standards. If a change is
imposed by an outside source, you should determine the effects before agreeing
to making the change. Since project team members may be able to identify
effects that you have overlooked, reviewing potential changes with them can be
beneficial.
3. Examine
alternatives
Before choosing a
solution, you should examine alternatives. Usually, there is more than one way
to achieve a goal. Re-examine your budget and schedule and decide whether the
potential change is the best possible choice considering the available
resources.
4. Navigate
project procedures
When you have
determined the best course of action, you should thoroughly document the change
by adding it to the original project plan, and if necessary, submit the change
for approval. For significant changes, you should provide all stakeholders with
written notification of the change.
5. Deliver
sufficient information
When you implement
a change, you must notify everyone affected by it. Project team members need to
understand how the change will affect the project and how expectations may have
changed. You should also tell team members how the results of the change will
be measured. Doing so will help them communicate with you as the change is
implemented.
What is a change
control board?
In addition to the
process for accommodating change, you may need to seek approval for changes
with a change control board. Some projects have a group of people, approved by
major project stakeholders, who have the authority to approve or deny change
requests. It is important that the members' roles are clearly defined, so they
know the extent of their authority.
Generally, changes
can be made on an emergency basis without prior approval from the change control
board. Emergencies should be specified somewhere in a project's change control
system. It is important to understand that changes made in response to
emergencies require the same documentation and follow-up as other changes.
What are some
results of project change control?
Results of project
change control include updates to the project's plan, scope statement, and
budget. Another result of change control is that all corrective actions taken
during the project should be documented, as well as any lessons learned while
implementing changes.
Why is it
important to measure project performance?
Measuring the
performance of a project is critical for its successful execution. You should
gauge project performance based on the answers to the following questions:
· Is the project meeting the quality
standards?
· Is the team's morale satisfactory?
· Are activities completed as scheduled?
· Is the project operating within its budget?
How can I
determine whether a project is meeting its quality standards?
You can determine
whether a project is meeting its quality standards by comparing performance
reports to the objectives set for the project. If the performance reports
indicate that the project is not accomplishing its objectives, you should try
to determine when, where, and why actual results do not conform to the quality
standards. When you identify the answers to these questions, you can take
action to improve quality.
How can I
determine the level of morale of the project team?
You can determine
the level of morale of the project team by talking to its members. Pay
attention to whether they put quality effort into fulfilling their
responsibilities and take notice of any conflicts that arise.
What methods can
I use to measure project performance?
There are several methods
you can use to measure project performance:
Variance analysis Trend
analysis Earned
value analysis
· Variance analysis
Variance analysis
is used to gauge how closely a project adheres to its schedule, resource use,
and budget provisions. Variance analysis can also be used to determine whether
or not a project's quality standards are met.
· Trend analysis
Trend analysis is
used to evaluate the progress of a project over time. For example, trend
analysis can be used to establish whether a solution to a problem is effective
by determining if the problem still exists once a solution has been
implemented. Trend analysis can also be used to show patterns of project
resource consumption.
· Earned value analysis
Earned value
analysis measures overall project performance by calculating a dollar amount
for every project activity. These dollar amounts are calculated using the
following values:
· Budgeted Cost of Work Scheduled (BCWS) is a portion of the project budget expected
to be spent during a specific time period. For example, $6,000 is assigned to
Activity A, which takes six days to complete.
· Budgeted Cost of Work Performed (BCWP) is the total budgeted cost of all work
completed to date on a project. For example, imagine that Activity B is
allotted $1,000. Activity B is only 40 percent complete at the time that BCWP
is calculated. As a result, of the $1,000 allotted for Activity B, only $400 is
included in the BCWP.
· Actual Cost of Work Performed (ACWP) is the amount of money actually spent
completing a specific activity within a given time period. For example, if the
six days worth of work completed on Activity A actually cost $5,000 instead of
$6,000, then $5,000 is your ACWP.
Earned value
analysis is important to performance reporting because it can give the project
manager and team members the most accurate measure of whether or not a
project's activities are being completed as planned.
What
calculations are used during earned value analysis?
The following
calculations are used during earned value analysis:
· Cost variance Schedule
variance Cost
performance index Schedule performance index
· Cost variance
Cost variance (CV)
occurs when the actual cost of an activity differs from the estimated cost. You
can calculate cost variance by subtracting the Actual Cost of Work Performed
from the Budgeted Cost of Work Performed, which is represented by the following
equation:
CV = BCWP - ACWP
If the cost
variance is a negative number, the activity is using more money than planned.
If it is a positive number, the activity is using less money than planned. If
the cost variance is zero, the activity is on track.
· Schedule variance
Schedule variance
(SV) occurs when the actual completion time of an activity differs from the
scheduled completion time. You can calculate schedule variance by subtracting
the Budgeted Cost of Work Scheduled from the Budgeted Cost of Work Performed,
which is represented by the following equation:
SV = BCWP - BCWS
If the schedule
variance is a positive number, then more work than originally planned has been
completed up to that point. If it is a negative number, then less work than
originally planned has been completed up to that point.
· Cost performance index
The cost
performance index (CPI) of a project is the ratio of the budgeted cost of a
project to the actual cost, or the Budgeted Cost of Work Performed divided by
the Actual Cost of Work Performed, which is represented by the following
equation:
CPI = BCWP/ACWP
If the CPI is
greater than one, then the cost performance of the project is efficient. If the
CPI is less than one, then the cost performance is inefficient.
· Schedule performance index
The schedule
performance index (SPI) of a project is the ratio of the actual work performed
to the scheduled work, or the Budgeted Cost of Work Performed divided by the
Budgeted Cost of Work Scheduled, which is represented by the following
equation:
SPI = BCWP/BCWS
If the SPI is
greater than one, then the schedule performance of the project is efficient. If
the SPI is less than one, then the schedule performance is inefficient.
Schedule and
Cost Control
What is project
control?
Project control
involves measuring, monitoring, and adjusting aspects of a project to achieve
specific goals. Comparing the project's progress to the original plan enables a
project manager to identify deviations from the plan and take corrective
action. Project managers control projects by using project change control
systems, measuring project performance, and analyzing project reports.
What items are
used to control project performance?
Some items used to
control a project include change requests, test results, quality assurance
measures, and rework. Additional items include resource consumption reports and
maintenance reports.
Why is it
important to control the project schedule, and how can I do so?
Through schedule
control, project managers can ensure that schedule changes are in line with
project objectives and are favorable to project completion. To control a project
schedule, project managers should identify variances from the original project
schedule. Then they should determine where, when, and why the project has
fallen behind and take corrective action. The project schedule should be
updated since corrective action can affect the execution of remaining project
activities.
What items are
used to control a project's schedule?
When controlling a
project's schedule, it is important to always refer to the project's master
schedule. To show schedule variances, it may be helpful to display additional
schedules on Gantt charts or use graphs and process control charts. Project
status reports can also be useful when controlling a project's schedule.
Why is it
important to control the project cost, and how can I do so?
To control project
costs, you should identify variances from the project's budget. You can follow
these steps to control project costs:
1. Monitor spending
by examining status reports.
2. Identify
variances from the original project plan.
3. Determine when and
why each cost variance occurred.
4. Obtain
authorization from stakeholders before making any budgetary changes.
5. Record any
budgetary changes you make.
6. Inform project
stakeholders that the approved changes have been made.
What items are
used to control a project's budget?
Some of the items
used to control the budget of a project include receipts from contractors or
vendors, income and account statements, and cost reports. In addition, records
of wages paid, overtime hours worked, and absences from work are also helpful
when controlling a project's budget.
What is
performance reporting, and why is it important?
Part of a project's
communication system includes performance reporting. The purpose of performance
reporting is to collect and distribute information to project stakeholders
about how effectively resources are being used. In addition, when combined with
change control systems and project performance measurements, performance
reporting helps a project manager control a project.
How does performance
reporting facilitate project control?
Project control
involves measuring, monitoring, and adjusting aspects of a project to
accomplish specific objectives. A project manager cannot adequately control a
project unless he or she knows the project's status at any given point, so
project performance must be continually measured and reported.
Performance reports
should record any variation between actual project results and expected project
results. If variations exist, the project manager can take corrective action to
return the project to its original plan.
What is a
reporting period?
The time between
one performance report and the next is called a reporting period. Frequently, a
reporting period coincides with the beginning and end of a project phase.
When reporting
periods do not coincide with project phases, it may help to include reporting
period dates on the project schedule. Doing so helps team members know when
they need to write performance reports.
How often should
performance reports be produced?
The intervals at
which performance reports are produced depend on the project. Lengthy projects
may need formal status reports only once per month. Shorter projects may need a
status report once every week or even more frequently.
Consider how often
a report should be produced to provide stakeholders with information when they
need it. A project manager's ability to control a project depends on timely
information.
How can
performance reports be classified?
Performance reports
can be classified by frequency, purpose, or both. The following are common
classifications of performance reports:
Routine Exception Special
analysis
· Routine
Routine, or
regular, performance reports are not necessarily scheduled, but may be distributed
at intervals that coincide with project phases or milestones. The frequency of
performance reports depends on how smoothly a project functions.
· Exception
Exception
performance reports provide information project team members need to make
decisions or they notify team members of changes that affect their work.
Exception performance reports are also distributed to stakeholders to inform
them that a decision has been made about some aspect of a project.
· Special analysis
Special analysis
performance reports contain information about the results of a study. Special
studies may be conducted as part of a project or to determine a solution to a
problem encountered during a project. Special analysis reports are useful to a
current project and provide valuable documentation of lessons learned that can
be applied to future projects.
What is a
progress report?
One specific type
of performance report is a progress report, which provides a detailed summary
of what project team members have accomplished up to a given point and how they
did it. Progress reports also should include the number of people who actually
worked on an activity compared to the number of people who were scheduled to
work on it.
What is a status
report?
Another type of
performance report is the status report. It covers a wider range of information
than a progress report and provides a detailed account of a project's status up
to a given point. The status report should include items such as activity
completion for the current reporting period, resource consumption, budget
expenditure, forecasted completion dates for activities in progress, problems
encountered, and suggestions for improvement.
Status reports must
include the current status of all activities completed during a given reporting
period, so the project manager can determine whether problems exist and what
corrective action to take.
How can I
determine which performance reports are necessary for a project?
When trying to
determine whether a report is necessary for a project, consider whether the
report serves a purpose by answering the following questions:
· What information will the report contain?
· What is the reason for producing the report?
· Who will write the report?
· Who is the audience for the report?
· How often will the report need to be
produced?
· Is the information in the report necessary
for project control?
· Is the information in the report valuable to
you or other stakeholders?
When you determine
which reports are necessary for a project, keep in mind that none of them will
be beneficial if the information in them is inaccurate. You should stress the
importance of accurate information to team members who will complete the
reports.
What are some
frequent problems with progress reporting?
Some frequent
problems with progress reporting include the following:
· Too much information
· The wrong kinds of information
· Not enough information
· Out of date information
To avoid these
problems when reporting progress, you can take the following actions:
· Keep progress reports concise and accurate
· Make sure information is current and
relevant
· Create reminders for yourself as to when
progress reports are due
How does
performance reporting affect project costs?
Performance
reporting can affect project costs when time for writing the reports is not allocated
in a project's schedule. If the time is not recorded, then the project's total
cost will be inaccurate. Be sure to include the time spent for writing reports
in the project budget.
What steps
should I follow to close a project?
There are four
steps you should follow to close a project:
1. Create a task
list
2. Communicate
about the close
3. Celebrate
accomplishments
4. Release the
resources
1. Create a task
list
As a project nears
completion, you should create a list of all the tasks that must be done to end
the project. In addition to wrapping up the final project activities, there are
a number of other tasks that need to be completed to close a project, such as
writing the final report. Creating a task list can help you manage all the
extra tasks.
In addition, task
lists tailored specifically for your team members can help them focus on
completing their activities. This is important, especially for any team members
who may be apprehensive about the end of the project. These team members will
frequently work on insignificant tasks in an attempt to prolong the project.
2. Communicate
about the close
Communication is
essential to the successful close of a project. As a project manager, you need
to communicate several messages at the end of a project. First, you need to
communicate to all stakeholders when the project will officially end. Second,
you need to close out all contracts and communicate the project end date to
suppliers and vendors to ensure that all bills will be sent as soon as
possible. Third, if project team members have been borrowed from other teams or
departments, you should notify the respective managers that the end of the
project is near. The fourth and final message you need to communicate is to the
finance department to ensure that the project books are closed.
3. Celebrate
accomplishments
When a project has
been successfully completed, it is important to take time to appreciate all
that has been accomplished and thank team members for their work. A celebration
is a fun way to wrap up a project, and it marks the official end of the project
for all involved. Consider giving awards to team members whose contributions to
the project were exceptional. In addition, acknowledge all team members' hard work
to help them feel good about what they have accomplished and ease their
transition back to their previous work or to their next project.
4. Release the
resources
After a project is
completed, any number of resources maybe left over. Leased equipment should be
returned, unused supplies should be returned for credit, if possible, and
supplies that have been used may need to be sold or incorporated into the
organization.
What are
close-out reports?
During the close of
a project, a project manager and team members should write detailed reports, or
close-out reports, about the processes used for phase and overall project
completion, including any lessons learned. Writing these reports helps the team
and the project manager evaluate how successfully they met the project's
objectives. The reports are then archived for use as references for future
projects.
What information
should be included in a project's final report?
A project's final
report, or ''project history,'' consists of the information recorded in performance,
status, and close-out reports, as well as other project documents. A project's
final report should include the following:
· What organizational structure was used for
the project
· What project management techniques were used
· Who was involved in the project and in what
capacity
· What went right and wrong during the project
and why
· What corrective action was taken to bring
problems back in line with project goals
· What activity completion processes were used
The information in
the project's final report supplements a project's historical database, so the
information can be used to help plan future projects.
Why is close-out
reporting often neglected?
Close-out reporting
is often neglected because concluding a project is not as exciting or
interesting as beginning a project. The project manager or team members may not
recognize the value of writing close-out reports, and they may become
preoccupied with other tasks. Also, team members are frequently eager to start
a new project, so they start looking ahead instead of focusing on the present.
It is important to
complete close-out reports for every project since they assure stakeholders
that the project is actually complete. As part of close-out reporting, a
project manager should obtain signed confirmation from key stakeholders to
ensure their awareness of the project status.