Project Management 9-14

contingency reserve

adding extra money to a budget in case overruns occur this is a standard project management tactical used to mitigate unexpected cost overruns

total time

adding together the duration of tasks on the critical path

pessimistic estimate

allowances are made for may elements to go wrong, delaying or jeopardizing the activity

lag time

puts a hard constraint on a task and is built into the project schedule

dependency

a logical relationship between tasks or activities

calendar

dates and times for availability of every resource

fixed price or lump sum

let you know exactly how much you will pay for goods or services. more risk on seller part most vendors will not enter unless you provide them with a very clear and concise scope statement

form of a WBS

often tree diagram or outline hierarchical charts

detailed estimate

project planning phase bottom up estimate

float

the amount of time that an activity may be delayed from its earliest possible start date without delaying the project finish date

buying the job

vendors who are hoping to work with you long term basis on future jobs might bid the first job at a loss to blow away the competition and get the work

end of chapter wrap up (5)

1. WBS organizes tasks of a project into hierarchies and milestones 2. a cohesive work package contains a unique, measurable deliverable you can monitor and track 3. milestones divide the project into logical, measurable segments. when you complete all the milestones the project should be finished 4. after you create a complete activity list and WBS you can plan the schedule and resources for the project 5. make sure you identify the dependencies so you know what needs to be completed and when to keep a project on track

establish the scheduling assumptions (5)

1. are there a fixed number of resources you can use? 2. is there an absolute date by which the project must be complete or entire effort is lost? 3. can you negotiate the completion date if you have resource constraints that will hurt the quality of the final product 4. will people work standard workdays, or will overtime be allowed or expected 5. are all resources currently trained and available or will you project require hiring additional people and acquiring new equipment

basic rules for network diagrams (5)

1. boxes hold the description of each task. lines connect the activities to one another 2. groups of tasks that lead to deliverable are identified by parallelograms 3. tasks that can happen at the same time are shown in the same column but in different rows 4. the dependency between tasks is shown by drawing lines from tasks to task indicating that the task on the left side must be completed before the task on the right can begin 5. lines among tasks can cross rows to show how activities are related to each other.

5 steps to develop a WBS

1. break the work into independent work packages that you can sequence, assign, schedule, and monitor 2. define the work packages at a level of detail appropriate for the length and complexity of the project 3. integrate the work packages into a total system with a beginning and end 4. present the work packages in a format that can easily communicate to people assigned to complete them during the project 5. verify the completion of the work packages will result in attainment of all the project goals and objectives

refining the budget (5)

1. doing the first cut 2. doing a second cut 3. getting it right 4. wrapping it up 5. presenting it for approval

complex WBS considerations (5)

1. each activity (element) should be assigned to only one level of effort never repeat an activity in another part of the tree or outline 2. a narrative may accompany the WBS. you may want to label certain boxes or lines with a number the references a page in an overview narrative to provide more detail 3. clearly identify related work packages in the WBS 4. at all levels the WBS should provide measurable deliverables for each aspect of the project 5. assemble the WBS in a format that allows changes if and when the project shifts slightly in direcitons

create a schedule steps (5)

1. establish the scheduling assumptions 2. estimate the number of resources, the activity effort, and the work package duration based on the resources you have on hand or can afford 3. determine calander dates for each activity and create a master schedule 4. adjust the individual resource assignements as necessary to optimize the schedule 5. chart the final schedule

Estimating Time (4)

1. get an objective expert's opinion 2. Find a similar task in a completed project plan to see how long it took to get done 3. when you know the relationship between a certain activity and time 4. make your best educated guess

reallocation questions (7)

1. how many hours per day is each person or piece of equipment available 2. is an assigned piece of equipment allocated to multiple projects for multiple project managers 3. have you factored in time lost to anticipate interruptions 4. have you factored in sufficient time for administrative overhead 5. are you using people with specialized skill sets appropriately 6. are you scheduling people without appropriate skill sets 7. have you planned for the time required to acquire additional people

WBS should help you to do all of the following (6)

1. identify the major parts of the project so all the work needing to be done is clearly indicated 2. organize the work in the most logical sequence so the work packages can be efficiently scheduled 3. identify work packages you need to assign to various team members 4. identify the resources and equipment necessary to complete each work package so you can develop a budget 5. communicate the work to be done in a clear -cut so team members understand their assigned jobs and responsibilities for completing the project 6. organize related work packages using logical milestones

assigning people (4)

1. make sure you know the specific availability of all people 2. assign the best suited available people to each tasks 3. use equipment and people efficiently to ensure the smallest gaps in working schedules 4. redo the schedule until you get in balanced

develop budget estimates (4)

1. other project managers or experts 2. your management team 3. purchasing department staff 4. standard pricing guides

adjusting schedule (6)

1. reduce the scope or add people 2. give a work package more time or split in 3. outsource the work 4. negotiate for additional time 5. deliver components of the project in a phased approach 6. find more productive people

scheduling noncritical tasks (3)

1. schedule all noncritical tasks at the earliest date possible - offers a way to free up resources for other projects 2. schedule all noncritical tasks as late as possible - shows how much work you can delay without causing the critical tasks to slip 3. schedule a subset of noncritical tasks - as you meet milestones complete the rest of the schedule

plan for procurement (6)

1. scope statement in your project charter 2. deliverables you are responsible for 3. procurement policies within your company 4. market conditions for the equipment, supplies, and so on 5. constraints identified earlier In your planning process 6. assumptions you have made

what network diagram will do (5)

1. shows the sequences and relationships between activities necessary to complete a project 2. identify relationships among milestones in the project that can be used for monitoring progress and completion 3. show the interrelationships of activities in different parts of the work breakdown structure hierarchy 4. establish a vehicle for scheduling activities 5. help reduce uncertainty in the project by breaking it into many small phases that have been analyzed and sequenced in advance of staring to work

estimate components (4)

1. the basis of the estimate 2. all assumptions that were made 3. known constraints 4. confidence level

breaks down into the following levels (5)

1. total project 2. major deliverables 3. milestones that summarize completion of a smaller portion of the overall project 4. major activities also called summary tasks 5. work packages

where will people come from (4)

1. using your own staff and other people from your department 2. using staff from other departments 3. contracting with consultants, outside vendors, or temporary agencies 4. hiring and training new staff

first step in building your organization and human resource plan (5)

1. what kinds of experience do they have or need 2. what is their availability 3. what knowledge and skill will they need 4. do they have a personal interest in the outcome 5. will they work well in a team environment

using staff from other departments (5)

1. who do you have to deal with in other parts of the organization to get approval for a prospective team members participation 2. how much do outside services cost 3. how much training 4. will team members come willingly or are you imposing your agenda on workers who would prefer to have no part in the project 5. is another manager offering you a team member because he wants to get rid of the person

which is first schedule or budget

best managers establish the schedule before finalizing the budget

Just in time

depends on accurate scheduling and project coordination delivered exactly when you need it don't have extra materials or people on hand that are costing you extra money key communication

design requirements

detail what is to be done in terms of the physical characteristics of the product and the risk is on the buyer

budgeting mistake 2

develop a budget without completing the work breakdown structure

budget mistake 4

did not apply the proper experience and skill levels of the people available to work

interrelationships Gantt

do not show interrelationships among tasks need a network diagram

Milestone schedules

does not have enough information to help you manage a project, can be useful for communicating an overall schedule on a larger project to upper management or other people who need an overview without task details

establishing the critical path

easy to determine with a good network diagram add each parallel paths task together and the path requiring the most time to complete is the critical path

the additional resources you need (3)

equipment, facilities, materials and supplies

optimistic estimate

everything goes like clockwork without problems

formula PERT

expected duration = (optimistic + 4(most likely) + pessimistic) / 6

Indirect costs (3 )

facilities, site specific requirements, management and administrative overhead

budgeting mistake 3

fail to account for the risks in completing the project

analogous estimate

find a similar task in a completed project plan to see how long it took to get done

responsibility assignment matrix

helps math individuals to a group of tasks they might lead, you can use it to help figure out who you need to consult on a particular decision or issues

historical estimate

how much time it took them the last time

systems and subsystems

if there is a clear demarcation between several aspects of a project, assemble the WBS to reflect this

physical location

if you are working with separate facilities it might make sense to build the WBS based on geographical location

organizational structure

in a clearly divided organization or a cooperating set of separate divisions you can establish the WBS according to reporting structure

source of data for building the budget

internal labor, internal equipment, external labor and equipment, materials and travel

direct costs (6)

labor, supplies and raw materials, equipment, travel, legal fees, training, marketing/advertising

Float equation

latest possible finish date - earliest possible start - duration = total float

network diagram

logical representation of schedule project activities and defines the sequence of work in a project. it is always drawn from left to right and reflects the chronological order of the activities

work packages

lowest level of project activity estimate of both time and cost associated with it can be accurately estimated

performance requirements

measureable capabilities the end product must achieve and the risk is on the vendor

chart the final schedule

most cases a computer program makes all the schedule steps easier

finish to start

most common, must complete one task to start the next one

managing dependencies

must identify lead time and lag time

finish to finish

one task must finish before the other can finish

start to start

one task must start before the other task can start

ballpark estimate

only useful if you are experienced enough to have a true gut level feel

assigned time estimate and a cost

only work package everything else is simply an organizational tool

people to help estimate

outside vendors and service agencies, experienced project managers, management and other project stakeholders

rough order of magnitude

recognize aspects of the project that are similar to a project you worked on before

resource leveling

redistribute scheduled work from people with too much responsibility to those not fully booked

critical path

sequence of tasks that forms the longest duration of the project think of critical path as the activities within your project you have the least amount of flexibility to complete

estimate the number of resources, the activity effort, and the work package duration based on the resources you have on hand or can afford

sometimes duration and effort are the same thing

simple Gantt charts

sometimes referred to as project timelines, most commonly used scheduling charts because they are easy to produce and understand

budgeting mistake 1

speaking off the top of your head

noncritical

tasks not on the critical path

resource loading

the amount of work each team member or piece of equipment is assigned

duration

time usually in days that it takes to complete the activity within the WBS not including holiday or weekends

lead time

used to accelerate the project

WBS

used to break larger activities into smaller more manageable components

critical chain

used to describe a concept quite different from the schedule-based definition of tasks on the critical path

highest degree of confidence

usually those you've performed previously or those you'll do yourself

answer back process

vendor takes your specs and builds a simple model that allows your experts to ensure that a clear understading exists and that no significant parts or systems are neglected

start to finish

very rare but occasionally happens, one task bust start before the other can finish

Gantt chart

visual overview of project timelines, not substitute for a network diagram or master schedule. useful in initial schedule planning, for simple projects, or for individual timelines on a complex project involving many people

parametric estimate

when you know the relationship between a certain activity and time

WBS stands for

work breakdown structure

can it go through revisions

yes larger projects will likely undergo several revisions

negotiations (4)

1. determine the minimum and max amount of money you expect to pay 2. determine how you will evaluate the competing bids 3. want a single source or multiple vendors 4. review past performace on similar projects

estimate steps (9)

1. get written estimates 2. fully explain requirements 3. develop selection criteria 4. vendors know acceptance and performance clauses 5. formal proposal 6. description of current workload 7. check references 8. hold a bidder conference 9. reply to ever bidder

getting an estimate (3)

1. get written estimates 2. make sure all providers id competitively minimum of three bids 3. some companies hold e-auctions speeds up time frame

Matching skills to tasks (5)

1. is there a specific technical skill or combination of skills required to complete this task 2. how much experience should the person have to complete this activity 3. does this person have the knowledge or education required to complete this task effectively 4. in additional to technical skills are any specific interpersonal skills required to complete this task effectively 5. how many of these skilled people will you need for each task

the most likely estimate

a problems crop up, and normal delays compromise the optimistic estimate

project tick

accurate, realistic, and workable scheduling

effort

also called labor estimates, is the time it takes usually in hours or days to work on an activity or work package

calendar charts

annotated calendars can be useful for keeping track of schedules for many small projects good communication tool when displayed in central locations

TOC theory of constraints

any system as at least one constraint

8/80 rule

any work package that takes less than one day (8 hours) is probably too small and you should consider combining it with something else if a work package takes longer than two weeks (80 hours) it is probably too large

Revisions

assume that the schedule will require several revisions

three levels of accuracy for estimating

ballpark, rough order of magnitude, detailed

PERT program evaluation and review technique

best approach Is to establish a compromise between flawless execution and major disaster time

WBS purposes

budgeting, personnel-selection, and scheduling

adjust the individual resource assignments as necessary to optimize the schedule

called resource leveling process

bottom-up approach

can be employed if it is more practical for a given project

Time Value of Money (4)

cash flow analysis payback net present value internal rate of return

time and material

combination of fixed price and cost reimbursable contracts and are often used for consultants open ended since the full value will not be realized until the project is finished

determine calendar dates for each activity and create a master schedule

complex project network you will also need to determine how much flexibility you have to complete various activities called float or slack

progressive elaboration

continuously improving the plan as more information becomes available as a project progresses

phase of the project

decide what is required in each phase of the project

top down

easiest way to decompose the work

functional requirements

express the way the item will be used as a way to stimulate competition and lower the cost since most products don't exactly match the functions to the usage. this is often linked to performance specification, and the risk is on the vendor

cost plus fixed fee contracts

pay the vendor their costs both direct and indirect plus a fee over and above more risk on buyer and less on seller but enables you to offer incentives to the vendor if she meets or exceeds targets