Dr. Cornel Collins, MBA, CHt, BCSH, FAAPM, CIPM, MPM, CPM, CEC, CLC 1 Copyright@Lignum Institute of Technology, 2009 2 The PMBOK® states that Project Time Management is the Knowledge Area that “includes the processes required to accomplish timely completion of the project.” Copyright@Lignum Institute of Technology, 2009 3 Monitoring & Controlling Processes Planning Processes Enter phase/ Start project Initiating Processes Closing Processes Exit phase/ End project Executing Processes Knowledge Area Time Management Process Initiating Planning Define Activity Sequence Activity Activity Resource Estimating Activity Duration Estimating Schedule Development Executing Monitoring & Control Schedule Control Closing Urgent Not Urgent Quadrant I Activities • Crisis • Pressing Problems • Deadline Driven Deliverables Quadrant II Activities • • • • Quadrant III Activities • • • • • Interruptions, some calls Some mail, some reports Some meetings Proximate, pressing matters Popular Activities Dr. Stephen Covey, 7 Habits of Highly Effective People Prevention Relationship building Recognizing new opportunities Planning Quadrant IV Activities • • • • Trivia, busy work Some mail, some calls Time wasters Pleasant Activities 5 • Activity definition: Identifying the specific activities that the project team members and stakeholders must perform to produce the project deliverables. • Activity sequencing: Identifying and documenting the relationships between project activities. • Activity resource estimating: Estimating how many resources a project team should use to perform project activities. • Activity duration estimating: Estimating the number of work periods that are needed to complete individual activities. • Schedule development: Analyzing activity sequences, activity resource estimates, and activity duration estimates to create the project schedule. • Schedule control: Controlling and managing changes to the project schedule. Copyright@Lignum Institute of Technology, 2009 6 Involves identifying and documenting the work that is planned to be performed This process identifies the deliverables at the lowest level of the work breakdown structure (WBS), called the work package The work package is then broken down into smaller components called schedule activities *These provide a basis for estimating, scheduling, executing, and monitoring and controlling the project work Copyright@Lignum Institute of Technology, 2009 7 INPUT Tools & Techniques OUTPUT Activity List Project Management Plan Expert Judgement Activity Attributes Enterprise Environmental Factors Decomposition Milestone Lists Organizational Process Assets Rolling Wave Planning Change Requests Meetings Projects Documents Updates Change Requests Copyright@Lignum Institute of Technology, 2009 8 An activity or task is an element of work normally found on the WBS that has an expected duration, a cost, and resource requirements. Project schedules grow out of the basic documents that initiate a project. The project charter includes start and end dates and budget information. The scope statement and WBS help define what will be done. Activity definition involves developing a more detailed WBS and supporting explanations to understand all the work to be done, so you can develop realistic cost and duration estimates. Copyright@Lignum Institute of Technology, 2009 9 The Project Management Plan contains the schedule management plan, which provides guidance on the development and planning of schedule activities. Decomposition: The process of subdividing the project work packages into smaller, more manageable components called schedule activities. Copyright@Lignum Institute of Technology, 2009 10 Rolling Wave Planning • A form of progressive elaboration planning where the work to be accomplished at the near term is planned in detail at a low level of the WBS, while the work far in the future is planned at relatively high levels of the WBS. Templates • A standard activity list or a portion of an activity list from a previous project can often be used as a template. Copyright@Lignum Institute of Technology, 2009 11 • An activity list is a tabulation of activities to be included on a project schedule. The list should include: – The activity name – An activity identifier or number – A brief description of the activity • Activity attributes provide more information about each activity, such as predecessors, successors, logical relationships, leads and lags, resource requirements, constraints, imposed dates, and assumptions related to the activity. Copyright@Lignum Institute of Technology, 2009 12 • A milestone is a significant event that normally has no duration. • Milestones are typically major accomplishments of the project and mark the completion of major deliverables or some other key event in the project. • It often takes several activities and a lot of work to complete a milestone. • Milestones are useful tools for setting schedule goals and monitoring progress. • Examples include completion and customer sign-off on key documents and completion of specific products. Copyright@Lignum Institute of Technology, 2009 13 INPUT Tools & Techniques OUTPUT Project Management Plan Precedence Diagram Methods Project schedule network diagrams Enterprise Environmental Factors Dependency Determination and integration Projects Documents Updates Organizational Process Assets Leads and lags Project Documents Project Information Systems Copyright@Lignum Institute of Technology, 2009 14 • Involves reviewing activities and determining dependencies or relationship between activities . • A dependency or relationship relates to the sequencing of project activities or tasks. • You must determine dependencies in order to use critical path analysis. • Can be performed by using manual or automated techniques or project management software Copyright@Lignum Institute of Technology, 2009 15 Three types of dependencies: • Mandatory dependencies • Discretionary dependencies • External dependencies Copyright@Lignum Institute of Technology, 2009 16 • Mandatory dependencies: Also referred to as hard logic Required as per contract or inherent in the nature of the work. Usually involve physical limitations (e.g., you cannot build the ceiling until walls are constructed) Are determined by the project management team during the activity sequencing process. • Discretionary dependencies: Also referred to as preferred logic, preferential logic, or soft logic Are determined by the project management team during the activity sequencing process Should be used with care and well documented, since they may limit later scheduling options. Copyright@Lignum Institute of Technology, 2009 17 • External dependencies: Are determined by the project management team during the activity sequencing process. Involve a relationship between project and non-project activities such as activities outside the project team’s control (e.g., dependence on external sources for deliveries, environmental factors governed by statutes, etc Copyright@Lignum Institute of Technology, 2009 18 • Network diagrams are the preferred technique for showing activity sequencing. • A network diagram is a schematic display of the logical relationships among, or sequencing of, project activities. • Two main formats are the Arrow and Precedence diagramming methods. • • • • Uses arrows to represent activities Connects activities with nodes Uses only finish-to-start dependencies May require dummy activities to define relationships Note: The network diagram in it’s pure sense just shows logical relationship between activities. 20 • • • • • Activities are represented by boxes/ rectangles. Arrows show relationships between activities More popular than ADM method as used by PM software Better at showing different types of dependencies In PDM, finish-to-start is the most common relationship 21 Includes four types of dependencies or logical relationships: – Finish-to-start (FS) – Finish-to-finish (FF) – Start-to-start (SS) – Start-to-finish (SF) The PDM is also called Activity–On-Node (AON) and it does not use dummy activities nor does it allow for loops or conditional branches. 22 A Lead may be added to start an activity before the predecessor activity is finished. e.g. Furniture may be installed 2 weeks prior to completion of painting (Finish to start relationship with 2 weeks lead) Lag introduces waiting period between activities. Lag introduces a delay in the successor activity. e.g. Needing to wait three days after pouring concrete before constructing the frame for a house. Copyright@Lignum Institute of Technology, 2009 24 1. Project Schedule Network Diagrams : • It can be produced manually or by using a project management software • Project Schedule Network Diagrams are not final schedule For the exam, know that, in its pure form, the network diagram shows just dependencies. 2. Project Document Updates Copyright@Lignum Institute of Technology, 2009 25 • Before estimating activity durations, you must have a good idea of the quantity and type of resources that will be assigned to each activity. • Consider important issues in estimating resources: – How difficult will it be to complete specific activities on this project? – What is the organization’s history in doing similar activities? – Are the required resources available? Copyright@Lignum Institute of Technology, 2009 26 • All projects, from the smallest to the largest, require resources. Before estimating activity durations, you must have a good idea of the quantity and type of resources that will be assigned to each activity • The term resources in this case does not mean just people; it means all the physical resources required to complete the project. • People • Equipment • Materials Copyright@Lignum Institute of Technology, 2009 27 Resource Calendars( Input)- is a calendar that is used to reflect specific working hours, vacations, leaves of absence, and planned personal time for individual resources. Resource calendars can be used for human resources as well as equipment. Alternative Analysis (Tool & Technique)-is used when thinking about the methods you might use to accomplish the activities your resources have been assigned. Many times, you can accomplish an activity in more than one way, and alternatives analysis helps decide among the possibilities. Copyright@Lignum Institute of Technology, 2009 28 Published Estimating data- Estimating data may include organizational guidelines, industry rates or estimates, production rates, and so on. Bottom Up Estimating-Bottom-up estimating is A process of estimating individual schedule activities or costs and then adding these together to come up with a total estimate for the work package. Copyright@Lignum Institute of Technology, 2009 29 Activity Resource Requirements – Activity resource requirements provide an estimate of the type and quantity of resources needed to complete activities. The Schedule Development process considers when the required Resources will be used. Resource Breakdown Structure (RBS) - The Resource Breakdown Structure (RBS) displays the hierarchical structure of the categories and types of resources needed. Copyright@Lignum Institute of Technology, 2009 30 The RBS Chart shows you the hierarchy of your resource pool in a hierarchical tree. An important feature of this view is that the Cost and Budget (baseline cost) values roll up into parent resources. Copyright@Lignum Institute of Technology, 2009 31 • You use the inputs and tools and techniques to establish these estimates. Activity duration estimates are an estimate of the required work periods needed to complete the activity. This is a quantitative measure usually expressed in hours, weeks, days, or months. Copyright@Lignum Institute of Technology, 2009 32 • Here the network diagram is updated by estimating duration for each activities. • The Activity Duration Estimating process attempts to estimate the work effort and number of work periods needed to complete each schedule activity. • A person or team most familiar with work of the project shall estimate duration to make it more accurate. • All data and assumptions used for estimation shall be documented for future analysis (remember this, we need this information during the risk management process) Copyright@Lignum Institute of Technology, 2009 33 • Duration includes the actual amount of time worked on an activity plus the elapsed time. • Effort is the number of workdays or work hours required to complete a task. • Effort does not normally equal duration. • People doing the work should help create estimates, and an expert should review them. Copyright@Lignum Institute of Technology, 2009 34 INPUT Tools & Techniques OUTPUT Expert Judgement Duration Estimation Project Management Plan Analogous Estimating Basis of Estimation Enterprise Environmental Factors Parametric Estimating Projects Documents Updates Organizational Process Assets Three-point Estimation Project Documents Bottom-up estimation Data Analysis Decision Making Meetings 35 Analogous Estimating, is a form of expert judgment and is also known as Top-down Estimating. Analogous estimates are typically less time consuming and less costly than other estimating techniques, but it’s also less accurate. Copyright@Lignum Institute of Technology, 2009 36 Parametric Estimating • Parametric estimate uses a statistical relationship between historical data and other variables. • More accurate than analogous estimate • Example : A resource will take 20hrs per module and hence 1000 modules will take 50hrs (50X20 = 1000hrs) • Estimation is done by multiplying quantity of work by labor hours per unit of work. Copyright@Lignum Institute of Technology, 2009 37 • Three-point estimates, as you can probably guess, use three estimates that when averaged come up with a final estimate. The three estimates you’ll use in this technique are the most likely estimate, an optimistic estimate, and a pessimistic estimate. • Three-point estimates are needed for PERT estimates and Monte Carlo simulations Copyright@Lignum Institute of Technology, 2009 38 • Program Evaluation and Review Technique (PERT) has the following characteristics. • It uses three estimates per activity - optimistic, pessimistic and most likely • It can be drawn only using AOA diagrams • It can have dummy events • PERT utilizes more information than CPM as it considers the "Pessimistic" and "Optimistic" values in addition to the "Most Likely" value in its calculations. The following are formula used by PERT Mean = (P + 4M + O)/6 Standard Deviation = (P-O)/6 Variance = ((P-O)/6)2 • GERT is another type of network diagram. It can support looping. Copyright@Lignum Institute of Technology, 2009 39 Reserve time, also called buffers, time reserves, or contingency reserve in the PMBOK Guide, means a portion of time that is added to the activity to account for schedule risk or uncertainty. You might choose to add a percentage of time or a set number of work periods to the activity or the overall schedule. For example, you know it will take 100 hours to run new cable, you also know that sometimes you hit problem areas when running the cable. To make sure you don’t impact the project schedule, you build in a reserve time of 10 percent of your original estimate to account for the problems you might encounter. Copyright@Lignum Institute of Technology, 2009 40 • A buffer is additional time to complete a task. • Murphy’s Law states that if something can go wrong, it will. • Parkinson’s Law states that work expands to fill the time allowed. • In traditional estimates, people often add a buffer to each task and use the additional time whether it’s needed or not. • Critical chain scheduling removes buffers from individual tasks and instead creates: – A project buffer or additional time added before the project’s due date. – Feeding buffers or additional time added before tasks on the critical path. Copyright@Lignum Institute of Technology, 2009 41 You use the inputs and tools and techniques to establish these estimates. Activity duration estimates are an estimate of the required work periods needed to complete the activity. This is a quantitative measure usually expressed in hours, weeks, days, or months. Copyright@Lignum Institute of Technology, 2009 42 • Uses results of the other time management processes to determine the start and end dates of the project. • Ultimate goal is to create a realistic project schedule that provides a basis for monitoring project progress for the time dimension of the project. Copyright@Lignum Institute of Technology, 2009 1/2 43 Schedule Management Plan • A Guide to the PMBOK® notes that the schedule management plan (a subsidiary of the project management plan) is produced as part of the Develop Project Management Plan process and contains the criteria for formatting, developing, and controlling the project schedule. 44 45 Schedule Network Analysis Schedule network analysis is a technique that generates the project schedule. It employs a schedule model and various analytical techniques, such as critical path method, critical chain method, what-if analysis, and resource leveling to develop the schedule. Copyright@Lignum Institute of Technology, 2009 46 Develop Schedule (Tools & Techniques) Critical path method (CPM) is a schedule network analysis technique. It determines the amount of float, or schedule flexibility, for each of the network paths by calculating the earliest start date, earliest finish date, latest start date, and latest finish date for each activity. The critical path (CP) is generally the longest full path on the project. Any project activity with a float time that equals zero is considered a critical path task. Slack or float is the amount of time an activity can be delayed without delaying a succeeding activity or the project finish date. 47 • Activity-on-Node (AON): – Uses nodes to represent the activity – Uses arrows to represent precedence relationships 48 Step 1-Define the Project: XYZ Products is bringing a new product on line to be manufactured in their current facility in some existing space. The owners have identified 11 activities and their precedence relationships. Develop an AON for the project. 49 50 • The longest path (ABDEGIJK) limits the project’s duration (project cannot finish in less time than its longest path) • ABDEGIJK is the project’s critical path 52 • The critical path does not necessarily contain all the critical activities; it only accounts for time. • There can be more than one critical path if the lengths of two or more paths are the same. • The critical path can change as the project progresses. Copyright@Lignum Institute of Technology, 2009 54 • • Floats are not the same as lead or lag. Lead or lags are introduced (manually) to correct the sequence while float is calculated in CPM. • Float for all activities on critical path will be zero value. • A forward pass through the network diagram determines the early start and finish dates. • A backward pass determines the late start and finish dates. Copyright@Lignum Institute of Technology, 2009 55 ES EF LS LF Copyright@Lignum Institute of Technology, 2009 56 58 LS, LF Network 59 Calculating Expected Task Times optimistic 4most likely pessimistic Expected time 6 60 Estimating the Probability of Completion Dates • Using probabilistic time estimates offers the advantage of predicting the probability of project completion dates • We have already calculated the expected time for each activity by making three time estimates • Now we need to calculate the variance for each activity • The variance of the beta probability distribution is: po σ 6 2 2 – where p=pessimistic activity time estimate o=optimistic activity time estimate 61 Variances of Each Path through the Network Path Number 1 Activities on Path A,B,D,E,G,H,J,K Path Variance (weeks) 4.82 2 A,B,D,E,G,I,J,K 4.96 3 A,C,F,G,H,J,K 2.24 4 A,C,F,G,I,J,K 2.38 62 Calculating the Probability of Completing the Project in Less Than a Specified Time • When you know: – The expected completion time – Its variance • You can calculate the probability of completing the project in “X” weeks with the following formula: specified time path expected time DT EFP z 2 path standard time σP Where DT = the specified completion date EFPath = the expected completion time of the path σPath 2 variance of path Example: Calculating the probability of finishing the project in 48 weeks • Establish the z values to determine probabilities • e.g. probability for path 1 is Path Number Activities on Path Path Variance z-value (weeks) Probability of Completion 1 A,B,D,E,G,H,J,K 4.82 1.5216 0.9357 2 A,B,D,E,G,I,J,K 4.96 1.4215 0.9222 3 A,C,F,G,H,J,K 2.24 16.5898 1.000 4 A,C,F,G,I,J,K 2.38 15.9847 1.000 64 Float time is also called slack time and there are three types of float: • Total Float – The amount of time an activity can be delayed without delaying the planned project end date or milestone. • Free Float – The amount of time an activity can be delayed without delaying the early start date of successor activity or without delaying the early start of any immediately following activities. • Project Float – The amount of time a project can be delayed without delaying an externally imposed project completion date (other than calculated by CPM) by customer. Copyright@Lignum Institute of Technology, 2009 65 Critical chain method is a schedule network analysis technique that will modify the project schedule by accounting for limited or restricted resources. After the project schedule network diagram is constructed using duration estimates, dependencies, and constraints, resource availability is entered into the scheduling tool. The modified schedule is calculated and you’ll find that it often changes the critical path. The new critical path showing the resource restrictions is called the critical chain. Copyright@Lignum Institute of Technology, 2009 66 Schedule compression is the method of shortening the project schedule without changing the scope. Need for compression occurs if a customer needs a date prior to the end date shown in original schedule or to bring back a project schedule back to baseline. • Crashing – This approach adds more resources to activities on the critical path to complete the project earlier. Crashing almost always result in increased cost. Many options are considered and the option with maximum compression with minimum cost impact is selected. Copyright@Lignum Institute of Technology, 2009 67 • Fast Tracking –Critical activities that would normally be done in sequence are allowed to be done in parallel or with some overlap. Fast track may result in rework and increases risk. Communication requirements increases during fast tracking. Copyright@Lignum Institute of Technology, 2009 68 • What-If Scenario Analysis: In creating a finalized, realistic schedule, ask what if a particular thing changed on the project? Would it shorten the schedule? • Can calculate the effect of these changes through a Monte Carlo Analysis – a method of estimating using computer software to simulate the outcome of a project, making use of three-point estimates for each activity and network diagram. • Can tell the probability of completing on a specific day, with a specific amount of cost, overall project risk etc. Copyright@Lignum Institute of Technology, 2009 69 • Allows one to level peaks and valleys of resource use from one month to another, resulting in a more stable number of resources used on the project. • Produces a resource-limited schedule – may result in lengthen the project, instead of hiring more resources. • This method let’s schedule slip and cost increase in order to deal with a limited amount of resources, resource availability and other resource constraints. Copyright@Lignum Institute of Technology, 2009 70 INPUT Tools & Techniques OUTPUT Schedule Network Analysis Schedule Baseline Project Management Plan Critical Path Method (CPM) Project Schedule Enterprise Environmental Factors Resource Estimation Projects Documents Updates Organizational Process Assets Data Analysis Schedule Data Project Documents Leads and Lags Project Calendars Agreements Schedule Compression Change Request PMIS Project Management Plan Updates Agile release planning 72 The schedule can be displayed in a variety of ways: • Project Schedule Network Diagram • Gantt Charts/ Bar Charts • Milestone Charts The purpose of the Schedule Development process is to determine the start and finish date for the each of the project activity. The project schedule should be approved and signed off by stakeholders and functional managers. This assures that they have read the schedule, understand the dates and resource commitments, and will likely cooperate Copyright@Lignum Institute of Technology, 2009 73 • Gantt charts provide a standard format for displaying project schedule information by listing project activities and their corresponding start and finish dates in a calendar format. • Symbols include: – Black diamonds: Milestones – Thick black bars: Summary tasks – Lighter horizontal bars: Durations of tasks – Arrows: Dependencies between tasks Copyright@Lignum Institute of Technology, 2009 74 75 Summary Tasks Duration of Tasks Copyright@Lignum Institute of Technology, 2009 • Many people like to focus on meeting milestones, especially for large projects. • Milestones emphasize important events or accomplishments in projects. • You typically create milestone by entering tasks that have a zero duration, or you can mark any task as a milestone. Copyright@Lignum Institute of Technology, 2009 76 INPUT Tools & Techniques OUTPUT Critical Path Method Work Performance Info Project Management Plan PMIS Schedule Forecasts Working Performance Data Resource Optimization Change Requests Organizational Process Assets Leads and Lags Project Management Plan Updates Project Documents Schedule Compression Project Documents Updates Data Analysis Control Schedule 77 Schedule Control is concerned with: 1. Determining the current status of the project schedule 2. Influencing the factors that create schedule changes. 3. Determining that the project schedule has changed, and 4. Managing the actual changes as they occur. Copyright@Lignum Institute of Technology, 2009 78 Performance Reviews- Performance reviews measure, compare, and analyze schedule performance such as actual start and finish dates, percent complete, and the remaining duration for the work in progress . Variance Analysis- Variance analysis is a key factor in monitoring and controlling project time because this technique helps determine variances in schedule start and end dates. Copyright@Lignum Institute of Technology, 2009 79 • Software for facilitating communication helps people exchange schedule-related information. • Decision support models help analyze trade-offs that can be made. • Project management software can help in various time management areas. Copyright@Lignum Institute of Technology, 2009 80 The Schedule Control process has the following outputs: 1. Work Performance Measurements- Calculated Schedule Variance (SV) and Schedule Performance Index (SPI) are documented and communicated with Stakeholders. 2. Organizational process asset updates (lessons learned) 3. Change Requests – Approved schedule baselines shall be only updated through integrative change control. SV & SPI may result in change requests for baseline updates. 4. Project Management Plan Update 5. Project Document updates – Schedule data Copyright@Lignum Institute of Technology, 2009 81 Schedule Variance % indicates how much ahead or behind schedule the project is in terms of percentage. Schedule Variance % can be calculated as using the following formula SV % = Schedule Variance (SV) / Planned Value (PV) or SV % = SV / BCWS The formula mentioned above gives the variance in terms of percentage which will indicate how much percentage of work is yet to be completed as per schedule or how much percentage of work has been completed over and above the scheduled cost Positive Variance % indicates % ahead of schedule. Negative Variance % indicates % behind of schedule. Copyright@Lignum Institute of Technology, 2009 82 • Perform reality checks on schedules. • Allow for contingencies. • Don’t plan for everyone to work at 100 percent capacity all the time. • Hold progress meetings with stakeholders and be clear and honest in communicating schedule issues. Copyright@Lignum Institute of Technology, 2009 83 Copyright@Lignum Institute of Technology, 2009 84