Project Management Professional (Pmp) - Certification Study

Project Management

Professional (PMP)

PMI Certification Materials

• To assist PMI candidates for completing

the PMI certification exam administered by

the Project Management Institute

• Content is from “A Guide To The Project

Management Body Of Knowledge”

(PMBOK)

Recurring Themes

• Historical Records – need to collect and use for planning, estimating and risk

• Kickoff meetings are important • Work Breakdown Structures

• Do not introduce benefits that are not stated in requirements

• Needs of all stakeholders should be taken into account during all projects

• Team Members must be involved in project planning • Project Mangers must be pro-active

Chapter 1 – Introduction

• Project – temporary endeavor undertaken to

create a unique product or service

• Has a definite beginning and end and

interrelated activities

• Programs adopt new set of objectives and

continue to work; projects cease when declared

Chapter 1 – Introduction

• Projects are unique – characteristics are

progressively elaborated

– Progressively: proceeding in steps

– Elaborated: worked with care and detail

• Scope of project should remain constant

even as characteristics are “progressively

elaborated”

Chapter 1 - Introduction

• Project Management: the application of

knowledge, skills, tools and techniques to project

activities in order to meet or exceed stakeholder

needs and expectations from a defined project –

balancing the following:

– Scope, time, cost, and quality – Stakeholders‟ expectations

– Requirements (needs) vs. unidentified requirements (expectations)

Chapter 1 - Introduction

• Programs are groups of projects managed in a

coordinated way to obtain benefits not available

from managing the projects individually

• Most programs have elements of ongoing

operations

– Series of repetitive or cyclical undertakings

• Projects are often divided into “subprojects” for

more manageability

Chapter 2 – Project Management

Context

• Project Phases are marked by the

completion of a deliverable

– Tangible, verifiable work product

– Review of deliverables and approval/denial

are “phase exits, stage gates, or kill points”

• Phases are collected into the Project Life

Cycle

– Set of defined work procedures to establish

management control

Chapter 2 – Project Management

Context

• Project Life Cycle defines:

– Technical work performed in each phase – Who is involved in each phase

• Project Phases can overlap – “Fast Tracking” • Common Characteristics of Project Life Cycles:

– Cost and Staffing levels are low at start and move higher towards the end

– Probability of successfully completing project is low at beginning, higher towards the end as project continues

– Stakeholder influence is high at the beginning and progressively lowers as project continues

Chapter 2 – Project Management

Context

• Stakeholders: individuals and organizations who

are actively involved in the project

– Often have conflicting expectations and objectives – In general, differences should be resolved in favor of

the customer – individual(s) or organization(s) that will use the outcome of the project

– Stakeholder management is a proactive task

• Project Mangers must determine all stakeholders and incorporate their needs into the project

Chapter 2 – Project Management

Context

• Stakeholders are:

– Project Managers – Customers

– Performing Organizations, owners – Sponsor

– Team

– Internal/External – End User

– Society, citizens

Chapter 2 – Project Management

Context

• Organizational Systems: Project based vs.

Non-Project Based

– Project Based – derive revenues from performing projects for others (consultants,

contractors),”management by projects”

– Non-Project Based – seldom have management systems designed to support project needs

Chapter 2 – Project Management

Context

• Organizational Cultures and Styles:

– Entrepreneurial firms more likely to adopt

highly participative Project Manager – accept

higher risk/reward

– Hierarchical firms less likely to adopt

participative Project Manager – take fewer

risks

Chapter 2 – Project Management

Context

• Organizational Structures

– Functional (classical) marked by identifiable

superiors. Staff grouped by specialty .

Perceived scope of project limited by function

(Engineering, HR). Typically have part-time

Project Manager

– Projectized Organization –blend functional

and projectized characteristics. Mix

cross-department personnel with full-time Project

Manger

Chapter 2 – Project Management

Context

• Project Management Skills

– General Business Management (consistently producing results expected by stakeholders)

– Leading (establishing direction, aligning resources, motivating) – Communicating (clear, unambiguous, and complete)

– Negotiating (conferring with others to reach an agreement) – Problem Solving (definition and decision making)

• Distinguish causes and symptoms • Identify viable solutions

Chapter 2 – Project Management

Context

• Socioeconomic Influences

– Standards – document approved that provides common, repeated use, rules and guidelines

• Compliance is not mandatory

– Regulations – document that identifies products, services or characteristics

• Compliance is mandatory

– Standards often become “de facto” regulations – Internationalization

Chapter 2 – Project Management

Context

• Organization Structure Pro‟s and Con‟s

– Projectized

• Efficient Organization – No “home” • Loyalty – Lack of Professionalism

• Effective Communication – Duplication of functions, less efficient resource usage

– Matrix

• Visible Objectives – not cost effective • PM Control – More than 1 boss

• More support – More complex to control

• Utilize scarce resources – Tough resource allocation • Information distribution – Competition of priorities • Coordination – Policies & Procedures

Chapter 2 – Project Management

Context

• Functional Organization

– Specialists – More emphasis on functions – 1 supervisor – No career path in PM

Chapter 3 – Project Management

Processes

• Project Management requires active

management of Project Processes

– Series of actions that achieve a result

– Project Management Processes

• Describing and organizing the work

– Product-Oriented Processes

Chapter 3 – Project Management

Processes

• Process Groups:

– Initiating processes: recognizing a project or phase should begin

– Planning processes: devising and maintaining a workable plan

– Executing processes: coordinating resources to execute the plan

– Controlling processes: ensuring project objectives are met; monitoring, correcting and measuring progress – Closing processes: formalized acceptance

Chapter 3 – Project Management

Processes

• Process Groups are linked by the results each

produces

• Process Groups are overlapping activities with

various levels of intensity

• Process Group interactions cross phases –

“rolling wave planning”

– Provides details of work to complete current phase and provide preliminary description of work for

subsequent phases

• Individual processes have inputs, tools and

techniques, and outputs (deliverables)

Chapter 3 – Project Management

Processes

• Initiating and Planning Processes

• Committing the organization to begin

– Initiation, High-level planning, Charter

• Amount of planning proportional to the scope of

the project – Core Planning

– Scope Planning – written statement

– Scope Definition – subdividing major deliverables into more manageable units

– Activity Definition – determine specific tasks needed to produce project deliverables

Chapter 3 – Project Management

Processes

• Core Planning (continued)

– Activity Duration Estimating – determine amount of work needed to complete the activities

– Schedule Development – analyze activity sequences, duration, and resource requirements

– Resource Planning – identify what and how many resources are needed to perform the activities

– Cost Estimating – develop resource and total project costs

– Cost Budgeting – allocating project estimates to individual work items

– Project Plan Development – taking results from other planning processes into a collective document

Chapter 3 – Project Management

Processes

• Planning/Facilitating Processes – manage the

interaction among the planning processes

– Quality Planning – standards that are relevant to the project and determining how to meet standards

– Organizational Planning – identify, document, and assigning project roles and responsibilities

– Staff Acquisition – obtaining the human resources – Communications Planning – determining rules and

Chapter 3 – Project Management

Processes

• Planning/Facilitating Processes (continued)

– Risk Identification – determining what is likely to affect the project and documenting these risks

– Risk Quantification – evaluating risks and interactions to access the possible project outcomes

– Risk Response Development – defining enhancement steps and change control measures

– Procurement Planning – determining what to buy and when

– Solicitation Planning – documenting product requirements and identifying possible sources

Chapter 3 – Project Management

Processes

• Planning/Facilitating Processes (continued)

– Order of events:

• Scope Statement • Create Project Team

• Work Breakdown Structure • WBS dictionary

• Finalize the team • Network Diagram

• Estimate Time and Cost • Critical Path

• Schedule • Budget

• Procurement Plan • Quality Plan

• Risk Identification, quantification and response development • Change Control Plan

• Communication Plan • Management Plan • Final Project Plan • Project Plan Approval • Kick off

Chapter 3 – Project Management

Processes

• Executing Processes

– Project Plan Execution – performing the activities – Complete Tasks/Work Packages

– Information Distribution

– Scope Verification – acceptance of project scope – Quality Assurance – evaluating overall project

performance on a regular basis; meeting standards – Team Development – developing team and individual

skill sets to enhance the project – Progress Meetings

Chapter 3 – Project Management

Processes

• Executing Processes (continued)

– Information Distribution – making project

information available in a timely manner

– Solicitation – obtaining quotes, bids,

proposals as appropriate

– Source Selection – deciding on appropriate

suppliers

– Contract Administration – managing vendor

relationships

Chapter 3 – Project Management

Processes

• Controlling Processes – needed to regularly

measure project performance and to adjust

project plan

• Take preventive actions in anticipation of

possible problems

– Change Control – coordinating changes across the entire project plan

– Scope Change Control – controlling “scope creep” – Schedule Control – adjusting time and project

Chapter 3 – Project Management

Processes

• Controlling Processes (continued)

– Cost Control – managing project budget

– Quality Control – monitoring standards and

specific project results; eliminating causes of

unsatisfactory performance

– Performance Reporting – status, forecasting,

and progress reporting schedule

– Risk Response Control – responding to

changes in risk during the duration of the

project

Chapter 3 – Project Management

Processes

• Closing Processes

– Administrative Closure – generating necessary information to formally recognize phase or project completion

– Contract Close-out – completion and delivery of project deliverables and resolving open issues

• Procurement Audits • Product Verification • Formal Acceptance • Lessons Learned • Update Records • Archive Records • Release Team

Chapter 3 – Project Management

Processes

• Overall Processes

– Influencing the organization

– Leading

– Problem Solving

– Negotiating

– Communicating

– Meetings

Chapter 3 – Project Management

Processes

• Project Selection Techniques

– Comparative Approach (similar projects)

• Benefit measurement method

– Constrained Optimization (mathematical

approach)

• Key aspect of scope verification is

customer acceptance

Chapter 4 – Project Integration

Management

• Project Integration Management

– Ensures that the project processes are properly coordinated

– Tradeoffs between competing objectives and alternatives in order to meet stakeholder approval

• Project Plan Development • Project Plan Execution • Overall Change Control

– These processes may occur repeatedly over the project duration

– Historical Records are needed to perform project management well, they are inputs to continuous improvement

• Files • Lessons Learned • Actual Costs • Time Estimates • WBS • Benchmarks • Risks

Chapter 4 – Project Integration

Management

• Project Plan Development

– Uses outputs from other planning processes to create consistent document to guide project execution and control

– Iterated several times

– Documents planning assumptions

– Documents planning decisions that are chosen – Facilitates communication

– Defines key management reviews

– Provides a baseline to track progress measurement and project control

Chapter 4 – Project Integration

Management

• Project Plan Development Inputs

– Other planning outputs: primarily the planning

process outputs (WBS, base documents, application area inputs)

– Historical information – verify assumptions, records of past project performance

– Organizational policies – quality management, personnel administration, Financial controls – Constraints – factors that limit performance,

contractual provisions, budget – Assumptions – risk factors

Chapter 4 – Project Integration

Management

• Tools & Techniques for Plan Development

– Project Planning Methodology – any structured approach (software, templates, forms, start-up meetings

– Stakeholder Skills & Knowledge – tap into plan development; use expertise for reasonableness

– PMIS – Out of the box approach to support all project aspects through closure

Chapter 4 – Project Integration

Management

• Project Plan Development Outputs

– Project Plan is a collection that changes over time as more information about the project becomes available

– Baseline will change only in response to approved scope change – Project Plan includes some or all of the following:

• Project Charter

• Project Management approach or strategy • Scope statement

• Work Breakdown Structure (WBS) • Budget, schedule, risks

• Key Staff, Major Milestones

Chapter 4 – Project Integration

Management

• Project Plan Components (continued)

• Cost Estimates, scheduled start dates and responsibility assignments

• Performance measurement baselines • Major milestones and target dates • Required Staff

• Risks, constraints and assumptions

• Subsidiary management plans (scope, schedule) • Open Issues

Chapter 4 – Project Integration

Management

• Supporting Details to the Project Plan

– Outputs from planning processes

– Technical documentation

– Business requirements, specifications, and

designs

– Relevant standards

Chapter 4 – Project Integration

Management

• Project Plan Execution

– Primary process for carrying out the project

plan

– Most costly aspect of project management

– Direction of organizational resources and

Chapter 4 – Project Integration

Management

• Project Plan Execution Inputs:

– Project Plan

– Supporting Detail

– Organizational Policies

– Corrective Action – anything to bring expected

performance in line with the project plan

Chapter 4 – Project Integration

Management

• Tools & Techniques for Plan Execution

– General Management Skills

– Product Skills and Knowledge – defined as part of planning, provided by staffing

– Work Authorization System – formal procedure for sanctioning work to ensure completion – written or verbal authorization

– Status review meetings – regular exchanges of information

– Project Management Information System – Organizational Procedures

Chapter 4 – Project Integration

Management

• Project Plan Execution Outputs

– Work results – the outcome of activities

performed is fed into the performance

reporting process

– Change Requests – expand/shrink project

scope, modify costs and schedule estimates

Chapter 4 – Project Integration

Management

• Overall Change Control

– Influencing factors that create change to ensure beneficial results; ensure that change is beneficial

– Determining that change has occurred – Managing actual changes as they occur

• Evaluate impact of change

• Meet with team to discuss alternatives

• Meet with management to present decision

• Change control requires

– Maintaining integrity of performance measurement baselines (project plan)

– Ensuring changes to scope are accurately recorded

– Coordinating changes across knowledge areas (scheduling, risk, cost, quality, etc.)

– Determine all factors that control change and pro-actively preventing the occurrence; evaluate the impact of change

Chapter 4 – Project Integration

Management

• Inputs to Change Control

– Project Plan – baseline performance

– Performance Reports – issue tracking, risk

management

– Change Requests – orally or written,

externally or internally initiates, legally

mandated or optional

Chapter 4 – Project Integration

Management

• Change Control Tools & Techniques

– All Changes must be evaluated before a decision can be reached

– Change Control System – collection of formal

procedures, paperwork, tracking systems, approval levels

– Change Control Board – decision making authority – Configuration Management – documented procedure

to apply technical and administrative direction

• ID and document functional and physical characteristics • Control changes to these characteristics

• Record and report change and implementation status • Audit items and system to verify requirements

Chapter 4 – Project Integration

Management

• Change Control Tools & Techniques

– Performance Measurement – earned value, plan variance analysis

– Additional Planning – revised cost estimates, modify activity sequences, plan adjustments

– Project Management Information System – Change Control System may have

• Change Control Plan • Change Control Board

• Change Control Procedures, Corrective Action plans • Performance Statistics, Reports, Change forms

• Specification reviews, Demonstrations, Testing, Meetings

Chapter 4 – Project Integration

Management

• Change Control Outputs

– Project Plan Updates

– Corrective Actions

– Lessons Learned – variance causes and

Chapter 4 – Project Integration

Management

• Configuration Management

– Rigorous Change Management as it relates to scope

• Subset of the change control system

• Work Authorization System

– Controls “gold plating”; defines what task is/is not

• Meetings

– Most are inefficient; keep minutes

Chapter 4 – Project Integration

Management

• Lessons Learned

– Project is not complete until a Lessons Learned is completed

– What have we done, how can we do it better

• Technical Aspects of the project

• Project Management (WBS, plans, etc.)

• Overall Management (communications, leadership)

• Best to have whole team complete and made available • Also called “Post – Mortem”

Chapter 4 – Project Integration

Management

• Integration is a result of need for

communication within a project

• Primary responsibility to decide what

changes are necessary is Management

• Project Managers must pro-actively define

and solve problems before reporting to

Chapter 5 – Project Scope

Management

• Project Scope Management

– Processes required to ensure that the project includes all, and only, work required

– Defining what “is/is not” included in the project

– Project scope – work that must be done – measured against project plan

– Product scope – features and functions included in the product or service – measured against

Chapter 5 – Project Scope

Management

• Initiation – process of formally recognizing that a

new project exists, or an existing project

continue to next phase

• Involves feasibility study, preliminary plan, or

equivalent analysis

• Authorized as a result of:

– Market Demand – Business Need

– Customer Request

– Technological Advance – Legal Requirement

Chapter 5 – Project Scope

Management

• Initiation Inputs:

– Product Description – characteristics of the product/service that the project was to create

• Less detail in early phases, more comprehensive in latter • Relationship between product/service and business need • Should support later project planning

• Initial product description is usually provided by the buyer

Chapter 5 – Project Scope

Management

• Initiation Inputs (continued)

– Project Selection Criteria – defined in terms of

the product and covers range of management

concerns (finance, market)

– Historical Information – results of previous

project decisions and performance should be

considered

Chapter 5 – Project Scope

Management

• Tools & Techniques for Initiation

– Project Selection Methods:

• Benefit measurement models – comparative approaches, scoring models, economic models

– Murder Boards – Peer Review – Scoring Models – Economic Models

– Benefits compared to costs

• Constrained operation models – programming mathematical

– Linear Programming – Integer Programming – Dynamic Programming

Chapter 5 – Project Scope

Management

• Tools & Techniques for Initiation

– Project Selection Methods:

• Decision models – generalized and sophisticated techniques

– Expert judgment

• Business Units with specialized skills • Consultant

• Professional and Technical Associations • Industry Groups

• Delphi Technique – obtain expert opinions on technical issues, scope of work and risks

– Keep expert‟s identities anonymous – Build consensus

Chapter 5 – Project Scope

Management

• Outputs from Initiation:

– Project Charter – formally recognizes project, created by senior manager, includes:

• Business need/Business Case • Product description & title

• Signed contract

• Project Manager Identification & Authority level • Senior Management approval

• Project‟s Goals and Objectives -

• Constraints – factors that limit project management team‟s options

• Assumptions – factors that are considered true for planning purposes. Involve a degree of risk

Chapter 5 – Project Scope

Management

• Scope Planning – process of developing a

written statement as basis for future decisions

– Criteria to determine if the project or phase is successful

• Scope Planning Inputs:

– Product description – Project Charter

– Constraints – Assumptions

Chapter 5 – Project Scope

Management

• Scope Planning Tools & Techniques

– Product Analysis - - developing a better understanding of the product of the project

– Cost/Benefit Analysis – estimating tangible/intangible costs and returns of various project alternatives and using financial measures (R.O.I.) to assess

desirability

– Alternatives Identification – generate different approaches to the project; “brainstorming” – Expert Judgment

Chapter 5 – Project Scope

Management

• Scope Planning Outputs

– Scope Statement – documented basis for making project decisions and confirming understanding among stakeholders. Includes:

• Project justification – business need, evaluating future trade-offs

• Project Product – summary of project description

• Project Deliverables – list of summary of delivery items marking completion of the project

• Project Objectives – quantifiable criteria met for success. Addresses cost, schedule and metrics – unqualified

Chapter 5 – Project Scope

Management

• Scope Planning Outputs (continued)

– Supporting detail – includes documentation of

all assumptions and constraints

– Scope Management Plan – how project scope

is managed, change control procedure,

expected stability, change identification and

classification

• Control what is/is not in the project; prevents delivering “extra” benefits to the customer that were not specified/required

Chapter 5 – Project Scope

Management

• Scope Definition – subdividing major

deliverables into smaller, manageable

components

– Improve accuracy of cost, time, and resource estimates

– Define a baseline for performance measurement – Clear responsibility assignments

– Critical to project success – reduces risk of higher cost, redundancy, time delays, and poor productivity – Defines “what” you are doing; WBS is the tool

Chapter 5 – Project Scope

Management

• Scope Definition Inputs:

– Scope Statement

– Constraints – consider contractual provisions

– Assumptions

– Other Planning Outputs

– Historical Information

Chapter 5 – Project Scope

Management

• Scope Definition Tools & Techniques

– Work Breakdown Structure – templates from previous projects

– Decomposition – subdividing major deliverables into manageable components:

• Major elements – project deliverables and project management approach

• Decide cost and duration estimates are appropriate at level of detail

• Constituent elements – tangible verifiable results to enable performance management, how the work will be

accomplished

• Verify correctness of decomposition

– All items necessary and sufficient? – Clearly and completely defined?

Chapter 5 – Project Scope

Management

• Scope Definition Outputs

– Work Breakdown Structure (WBS) – a deliverable-oriented grouping of project assignments that

organizes and defines the scope of the project

• Each descending level represents further detail; smaller and more manageable pieces

• Each item is assigned a unique identifier collectively known as “code of accounts”

• Work element descriptions included in a WBS dictionary (work, schedule and planning information)

• Other formats:

– Contractual WBS – seller provides the buyer

– Organizational (OBS) – work elements to specific org. units – Resource (RBS) – work elements to individuals

– Bill of Materials (BOM) – hierarchical view of physical resources – Project (PBS) – similar to WBS

Chapter 5 – Project Scope

Management

• Scope Definition Outputs

– Work Breakdown Structure (WBS)

• First Level is commonly the same at the Project Life Cycle

(requirements, design, coding, testing, conversion and operation) • First level is completed before the project is broken down further • Each level of the WBS is a smaller segment of level above

• Work toward the project deliverables • Break down project into tasks that

– Are realistically and confidently estimable – Cannot be logically divided further

– Can be completed quickly (under 80 hours rule of thumb) – Have a meaningful conclusion and deliverable

– Can be completed without interruption

Chapter 5 – Project Scope

Management

• Scope Definition Outputs

– Work Breakdown Structure (WBS) - Benefits

• Prevent work slippage

• Project team understands how their tasks fit into the overall project and their impact upon the project

• Facilitates communication and cooperation between project team and stakeholders

• Helps prevent changes

• Focuses team experience into what needs to be done – results in higher quality

• Basis and proof for estimating staff, cost and time • Gets team buy-in, role identification

• Graphical picture of the project hierarchy • Identifies all tasks, project foundation

Chapter 5 – Project Scope

Management

• WBS phrases

– Graphical hierarchy of the project – Identifies all tasks

– Foundation of the project – Very important

– Forces thought of all aspects of the project – Can be re-used for other projects

Chapter 5 – Project Scope

Management

• Scope Definition Outputs

– Work Breakdown Structure (WBS) – Dictionary

• Designed to control what work is done and when • Also known as a task description

• Puts boundary on what is included in a task and what is not included

Chapter 5 – Project Scope

Management

• Scope Verification Inputs

– Work results – partially/completed deliverables, costs to date

– Product documentation – description available for review (requirements)

• Scope Verification Tools & Techniques

– Inspection – measuring, examining, testing to determine if results conform to requirements

• Scope Verification Outputs

– Formal acceptance – documentation identifying client and stakeholder approval, customer acceptance of efforts

Chapter 5 – Project Scope

Management

• Scope Change Control:

– Influencing factors to ensure that changes are

beneficial

– Determining scope change has occurred

– Managing changes when they occur

– Thoroughly integrated with other control

processes

Chapter 5 – Project Scope

Management

• Scope Change Control Inputs:

– Work Breakdown Structure

– Performance Reports- issues reported

– Change Requests – expansion/shrink of

scope derived from :

• External events (government regulations) • Scope definition errors of product or project • Value adding change – new technology

Chapter 5 – Project Scope

Management

• Scope Change Control Tools & Techniques

– Scope Change Control System – defines procedures how scope change can occur

• All paperwork, tracking systems, approval levels • Integrated with overall change control procedures

– Performance Measurement – determine what is causing variances and corrective actions

Chapter 5 – Project Scope

Management

• Scope Change Control Outputs:

– Scope Changes – fed back through planning

processes, revised WBS

– Corrective Actions

– Lessons Learned – cause and reasoning for

variances documented for historical purposes

Chapter 5 – Project Scope

Management

• Management By Objectives (MBO)

– Philosophy that has 3 steps:

• Establish unambiguous and realistic objectives • Periodically evaluate if objectives are being met • Take corrective action

– Project Manager must know that if project is not aligned or support corporate objectives, the project is likely to lose resources, assistance and attention.

Chapter 6 – Project Time

Management

• Project Time Management

– Processes required to ensure timely

completion of the project

– No consensus concerning differences

between activities and tasks

– Activities seen as composed of tasks –most

common usage

– Other disciplines have tasks composed of

activities

Chapter 6 – Project Time

Management

• Activity Definition: identifying and

documenting specific activities to produce

project deliverables identified in the WBS

Chapter 6 – Project Time

Management

• Activity Definition Inputs

– WBS – primary input

– Scope Statement – project justification &

project objectives

– Historical Information

– Constraints

Chapter 6 – Project Time

Management

• Activity Definition Tools & Techniques

– Decomposition – outputs are expressed as

activities rather than deliverables

Chapter 6 – Project Time

Management

• Activity Definition Outputs

– Activity List – all to be performed; extension to the WBS and includes description to ensure team

members understand work to be performed

– Supporting Detail – organized as needed and include all assumptions and constraints

– WBS Updates – identify missing deliverables and clarify deliverable descriptions. WBS updates often called refinements; more likely using new

Chapter 6 – Project Time

Management

• Activity Sequencing – identifying and

documenting interactive dependencies

among activities. Support later

development of a realistic schedule

Chapter 6 – Project Time

Management

• Activity Sequencing Inputs:

– Activity List

– Product Description – product characteristics often affect activity sequencing

– Mandatory Sequencing – physical limitations, hard logic, prototypes needed; inherent in nature of work being done

– Discretionary Dependencies – defined by project management team; “best practices” or unusual aspects of project – soft logic, preferred logic, preferential logic

– External Dependencies – relationship between project activities and non-project activities (company policies, procurement, etc.) – Constraints

Chapter 6 – Project Time

Management

• Network Diagrams

– Shows how the project tasks will flow from beginning to end – Proves how long the project will take to complete

– Takes project tasks from low levels of WBS and placing them into their order of completion (beginning to end)

Chapter 6 – Project Time

Management

• Activity Sequencing Tools & Techniques

– Precedence Diagramming Method (PDM) – constructing network diagram using nodes to represent activities and arrows to indicate

dependencies; also called Activity On Node (AON) – Most project management software uses

– Includes 4 types of dependencies:

• Finish to Start – “from” activity must finish before “to” activity can begin; most commonly used

• Finish to Finish – “from” activity must finish before the next may finish • Start to Start – “from” activity must start before next “to” activity can start • Start to Finish – task must start before next activity can finish

– Use caution with last 3 techniques - logical relationships often not consistently implemented with project management software

Chapter 6 – Project Time

Management

• Activity Sequencing Tools & Techniques

(continued)

– Arrow Diagramming Method (ADM) – uses

arrows to represent activities and connecting

at nodes to illustrate dependencies

• Also called Activity On Arrow (AOA) • Only uses finish to start dependencies

Chapter 6 – Project Time

Management

• Activity Sequencing Tools & Techniques

(continued)

– Conditional diagramming methods

• GERT (Graphical Evaluation and Review Technique)

• System Dynamic Models

• Allow for non-sequential activities (loops) or

conditional branches – not provided by PDM or ADM methods

Chapter 6 – Project Time

Management

• Activity Sequencing Tools & Techniques

(continued)

– Network Templates – standardized networks

can be used. Composed of subnets, or

fragnets

• Subnets are several nearly identical portions of a network (floors on a building, clinical trials,

program modules)

• Useful for several identical processes (clinical trials, programming modules).

Chapter 6 – Project Time

Management

• Activity Sequencing Outputs:

– Project Network Diagram – schematic display

of project activities and relationships

(dependencies). Should be accompanied by a

summary narrative that describes the diagram

approach

Chapter 6 – Project Time

Management

• Activity Duration Estimating

– Involves assessing number of work periods

needed to complete identified activities

– Requires consideration of elapsed time,

calendars, weekends, and day of week work

starts

Chapter 6 – Project Time

Management

• Activity Duration Estimating Inputs:

– Activity Lists – Constraints – Assumptions

– Resource Requirements – amount of labor assigned to activity

– Resource Capabilities – human and material resources, expertise

– Historical Information

• Project Files, or records of previous project results

• Commercial Duration Estimates – useful when durations are not driven by actual work (approval periods, material

resources)

Chapter 6 – Project Time

Management

• Activity Duration Estimating Tools & Techniques

– Expert Judgment – guided by historical information should be used whenever possible; high risk without expertise avail.

– Simulation – using different sets of assumptions (Monte Carlo Analysis) to drive multiple durations – Analogous Estimating – “top down estimating” – use

actual, similar, previous known durations as basis for future activity duration. Used when limited knowledge is available. Form of expert judgment

Chapter 6 – Project Time

Management

• Activity Duration Outputs:

– Activity Duration Estimates – quantitative

assessments of work periods to complete an

activity. Should indicate a range +/- of

possible results

– Basis of Estimates – all assumptions should

be documented

Chapter 6 – Project Time

Management

• Schedule Development

– Determining start and finish dates for project

activities

– Without realistic dates, project unlikely to be

finished as scheduled

– Schedule development process often iterates

as more information becomes available

Chapter 6 – Project Time

Management

• Schedule Development Inputs:

– Project Network Diagram – Activity Duration Estimates – Resource Requirements

– Resource Pool Description – availability patterns; shared resources are highly variable

– Calendars – define eligible work periods

• Project Calendars affect all resources

• Resource Calendars – affect specific resource pools or individuals

Chapter 6 – Project Time

Management

• Schedule Development Inputs (continued):

– Constraints

• Imposed Dates – may be required

• Key events or milestones – are initially requested and become expected during project

– Assumptions

– Lead and Lag Time – dependencies may specify time in order to satisfy relationship (example – 2 weeks to receive order)

Chapter 6 – Project Time

Management

• Schedule Development Tools & Techniques

– Mathematical Analysis – calculating theoretical early/late finish and start dates without regard for

resource pool limitations; indicate time periods which activity should be scheduled given resource limits and other constraints:

• Critical Path Method (CPM) – single early/late start and finish date for all activities. Based on specified, sequential network and single duration estimate. Calculates float to determine flexibility

• Graphical Evaluation and Review Technique (GERT) – probabilistic treatment of network and activity duration estimates

• Program Evaluation and Review Technique (PERT)- sequential network and weighted average duration to calculate project duration – differs from CPM by using mean (expected value) instead of most-likely estimate in CPM

Chapter 6 – Project Time

Management

• Schedule Development Tools & Techniques

– Critical Path Method: refers to estimating based on one time estimate per activity

• One time estimate per task (Most Likely)

• Emphasis on controlling cost and leaving schedule flexible • Drawn using AOA diagrams

• Can have dummy task

– PERT (Program Review and Estimating Technique)

• 3 Time estimates per activity

– Optimistic – Pessimistic – Most Likely

• Emphasis on meeting schedule, flexibility with costs • Drawn on AOA diagrams

Chapter 6 – Project Time

Management

• Schedule Development Tools & Techniques

– Monte Carlo Analysis

• Uses a computer with PERT values and network diagram • Tells

– Probability of completing a project on any specific day

– Probability of completing a project for any specific amount of cost

– Probability of any task actually being on the critical path – Overall Project Risk

• Suggests that Monte Carlo simulation will create a project duration that is closer to reality than CPM or PERT

Chapter 6 – Project Time

Management

• Schedule Development Tools & Techniques

(continued)

– Duration Compression – look to shorten project schedule without affecting scope

• Crashing – cost and schedule trade-offs to determine

greatest amount of compression for least incremental cost – often results in higher costs

• Fast Tracking – performing activities in parallel that normally would be sequenced – often results in re-work and usually increases risk

Chapter 6 – Project Time

Management

• Schedule Development Tools & Techniques

(continued)

– Resource Leveling Heuristics – leveling resources that apply to critical path activities a.k.a. “resource constrained scheduling” – when limitation on quantity of available resources; sometimes called “Resource Based Method” – often increases project duration – Project Management Software

Chapter 6 – Project Time

Management

• Schedule Development Tools & Techniques (continued)

– Project Manger‟s role

• Provide the team with the necessary information to properly estimate the task

• Complete a sanity check of the estimate • Formulate a reserve

– Project Team should be involved; determine task estimates

• Historical Records • Guesses

• Actual Costs • Benchmarks • CPM and PERT

Chapter 6 – Project Time

Management

• Schedule Development Tools &

Techniques

– Critical Path Method: longest path through a

network diagram and determines the earliest

completion of the project

– Proves how long the project will take

– Indicates tasks that need most monitoring

– Almost always have no slack

Chapter 6 – Project Time

Management

• Schedule Development Outputs:

– Project Schedule – includes planned start and finish dates for each activity; remains preliminary until

resources assignments are approved. Usually in following formats:

• Project Network Diagrams (with date information added) – show logical and critical path activities

• Bar or Gantt charts – activity start and end dates, expected durations

• Milestone Charts – identifies key deliverables and interfaces • Time-scaled network diagrams – blend of project network

Chapter 6 – Project Time

Management

• Schedule Development Outputs (continued):

– Supporting Detail – all assumptions and constraints. May also include:

• Resource requirement by time period (resource histogram) • Alternative schedules (best/worst case)

• Schedule reserve/risk assessments

– Schedule Management Plan – how updates are managed

– Resource requirement updates – leveling and activity impact

Chapter 6 – Project Time

Management

• Schedule Control:

– Influencing factors which create schedule changes to ensure changes are beneficial

– Determining that schedule has changed – Managing actual changes as they occur

• Inputs to Schedule Control

– Project Schedule – baseline approved, measure against project performance

– Performance Reports – planned dates met, issues – Change Requests

Chapter 6 – Project Time

Management

• Schedule Control Tools & Techniques

– Schedule Change Control System – defines

procedures for schedule changes, paperwork,

approval, tracking systems

– Performance Measurement – assess

magnitude of variations to baseline; determine

if corrective action is needed

– Additional Planning

Chapter 6 – Project Time

Management

• Schedule Control Outputs:

– Schedule Updates – any modifications,

stakeholder notification

• Revisions change scheduled start and finish dates – generally in response to scope changes. “Re-baselining” may be needed in drastic situations

– Corrective Action – re-align performance with

project plan

Chapter 6 – Project Time

Management

• Key knowledge points not in PMBOK

– Need to know manual calculations of network

diagrams

• Created after project charter and WBS (task estimates and dependencies are determined)

– Mandatory dependencies (Hard Logic) – inherent in nature of work

– Discretionary dependencies (Soft Logic) – based on experience, desire or results

– External dependencies – based on needs and desires of organizations outside the project

Chapter 6 – Project Time

Management

• Methods to draw network diagrams

– Activity on Node (AON) or Precedence Diagramming Method (PDM)

• Boxes represent tasks

• Arrows show task dependencies • 4 types of task relationships

– Finish to Start (task must finish before next can start) – Finish to Finish (task must finish before next can finish) – Start to Start (task must start before next can start)

– Start to Finish (task must start before the next can finish)

Chapter 6 – Project Time

Management

• Methods to draw network diagrams

– Activity on Arrow (AOA or Arrow Diagramming Method (ADM)

• Arrows used to represent tasks

• Only Finish to Start relationships are used • May use dummy tasks (show dependencies)

• PERT and CPM estimating techniques can only be drawn using AOA

– CPM (Critical Path Method) – estimating based on one time estimate per activity (the most likely time estimate)

» Emphasizes controlling cost and allowing schedule flexibility

Chapter 6 – Project Time

Management

• Methods to draw network diagrams

– Activity on Arrow (AOA or Arrow Diagramming

Method (ADM) continued:

• PERT (Program Evaluation and Review technique)

– 3 time estimates per activity: Optimistic (O), Most Likely (M), Pessimistic (P)

– Emphasizes meeting schedule, flexibility with cost – Can have dummy tasks

Chapter 6 – Project Time

Management

• Methods to draw network diagrams

– PERT (Program Evaluation and Review technique) – Estimating based on 3 formulas:

• PERT Duration: (P + 4M + O)/6 • Standard Task Deviation: (P – O)/6 • Task Variance:

• Total project estimate:

– Add up all Optimistic, Most Likely and Pessimistic values of the critical path tasks and apply P + 4M + O/6

• Total project variance (+/-):

– Add up the individual task variances and take the square root of the value. Use the value as a +/- figure to compute the Optimistic and Pessimistic values. The total project estimate will serve as the basis.

[

]

Chapter 6 – Project Time

Management

• Monte Carlo Simulation:

– Uses a computer with PERT values (P, M, O) and a network diagram but does not use the PERT formula – Indicates

• Probability of completing project on a specific day

• Probability of completing project for any specific amount of cost

• Probability of any task actually being on critical path • Overall project risk

Chapter 6 – Project Time

Management

• Estimating techniques in general:

– Should be performed by entire project team

• Project manager needs to provide information to allow team to create estimates; sanity check; formulate reserve

– Estimates are:

• Guesses, Historical Records, Actual Costs, Benchmarks, CPM, PERT

– Critical paths determines the earliest completion date and identifies tasks that need monitoring

– Can be obtained by CPM, PERT and Monte Carlo estimating techniques

Chapter 6 – Project Time

Management

• Key Definitions:

– Slack (Float): the amount of time a task can be

delayed without delaying the entire project. Tasks on critical path have no slack.

• Slack is calculated by the difference between Early Start and Late Start of a task

– Free Slack (Float): the amount of time a task can be delayed without delaying the early start date of its successor

– Total Slack (Float): the amount of time a task can be delayed without delaying the project completion date

Chapter 6 – Project Time

Management

• General Comments:

– Projects can have more than 1 critical path (increases risk) and can involve dummy tasks

– Negative float indicates that you are behind

– Resource Leveling involves possibly letting schedule and cost slip

– Heuristics – just means “rule of thumb” e.g. 80/20 rule

– Schedules are calendar based – makes this different than a time estimate

• Bar Chart a.k.a. Gantt chart (track progress, report to entire team including stakeholders, control tool)

• Network Diagram (to show task inter-dependencies, show project organization, basis for project control)

Chapter 6 – Project Time

Management

• General Comments:

– To shorten project schedule examine the

critical path

• Crashing – add more resources to the critical path tasks

– Usually results in increased cost

• Fast Tracking – performing tasks in parallel

– Can result in re-work and increased risk

– Best to select method that has least impact on

the project (is the importance on cost, risk or

schedule?)

Chapter 6 – Project Time

Management

• General Comments:

– Bar (Gantt) Charts

• Weak Planning Tool, effective progress and reporting tool • Does not show interdependencies of tasks

• Does not help organize the project more effectively

– Network Diagrams (PERT, CPM, PDM)

• Shows task interdependencies

• Aids in effectively planning and organizing work • Provides a basis for project control

– Milestone Charts

• Only shows major events

• Good for reporting to management and customer

– Flow Charts

Chapter 6 – Project Time

Management

• General Comments:

– Free Slack (Float) – amount of time a task can be delayed without delaying the early start date of its successor

– Total Slack (Float) – amount of time a task can be delayed without delaying the project completion date

• Lag – inserted waiting time between tasks

• Resource Leveling – level peaks of resource usage; stable number of resources – allows schedule and cost slip in favor of leveling resources • Heuristic – rule of thumb (80/20 rule)

Chapter 7 – Project Cost

Management

• Project Cost Management

– Ensure that the project is completed within budget

– Concerned with cost of resources needed to complete activities; consider effect of project decisions on cost of using product “life-cycle costing”

– Most prospective financial impact of using the product is outside the project scope

– Consider information needs of stakeholders, controllable and uncontrollable costs (budget separately for reward and recognition systems)

Chapter 7 – Project Cost

Management

• Project Cost Management

– Estimating should be based on WBS to improve accuracy

– Estimating should be done by the person performing the work – Having historical records is key to improving estimates

– Costs (schedule, scope, resources) should be managed to estimates

– A cost (schedule, scope, baseline) should be kept and not changed

– Plans should be revised as necessary during completion of work – Corrective action should be taken when cost problems

Chapter 7 – Project Cost

Management

• Resource Planning:

– Determining what physical resources and quantities are needed to perform work

• Inputs to Resource Planning:

– Work Breakdown Structure – Historical Information

– Scope Statement – justification & objectives

– Resource Pool Description – what resources are potentially available for resource planning

Chapter 7 – Project Cost

Management

• Inputs to Resource Planning:

– Work Breakdown Structure – Network Diagram

– Schedule – Risks

– Historical Information

– Scope Statement – justification & objectives

– Resource Pool Description – what resources are potentially available for resource planning

Chapter 7 – Project Cost

Management

• Resource Planning Tools & Techniques

– Expert Judgment

– Alternatives Identification

• Resource Planning Outputs:

– Resource Requirements – what type & how

many resources are needed for each activity

in the Work Breakdown Structure

Chapter 7 – Project Cost

Management

• Cost Estimating:

– Develop approximate costs of resources

– Distinguish estimating from pricing

• Estimating – likely amount • Pricing – business decision

– Identify alternatives and consider realigning

costs in phases to their expected savings

Chapter 7 – Project Cost

Management

• Cost Estimating Inputs:

– Work Breakdown Structure – Resource Requirements – Resource Rates (if known) – Activity Duration Estimates

– Historical Information – (project files, commercial cost databases, team knowledge

– Chart Of Accounts – coding structure for accounting; general ledger reporting

Chapter 7 – Project Cost

Management

• Cost Estimating Tools & Techniques

– Analogous Estimating – “top down”; using actual costs from previous project as basis for estimate

• Reliable when previous projects are similar and individuals have expertise – form of expert judgment

– Parametric Modeling – uses project characteristics in mathematical models to predict costs (e.g.building houses)

• Reliable when historical information is accurate, parameters are quantifiable, and model is scalable

– 2 types: Regression analysis, Learning Curve

– Bottom Up Estimating – rolling up individual activities into project total – smaller work activities have more accuracy -

Chapter 7 – Project Cost

Management

• Cost Estimating Tools & Techniques

– Pro‟s and Con‟s

– Analogous Estimating

• Quick - Less Accurate

• Tasks don‟t need to be identified – Estimates prepared with little detail and understanding of project

• Less costly – Requires considerable experience to do well • Gives PM idea of management expectations – Infighting at

high levels of organization

• Overall project costs are capped – Difficult for projects with uncertainty