PROJECT MANAGEMENT (PM) WITH MICROSOFT PROJECT

What is it and Why should I care?

ABCS OF PM
If you need to organize a company holiday party, its a project. If you were handed a three-year Earth exploration initiative to find oil in Iowa, coordinate subcontractors and government permits, and work with a team of 300 people, thats definitely a project. Even that speech you have to present is a project because it has certain characteristics.

CHARACTERISTICS OF PM
1. 2. 3. 4. 5.

6. 7.

An overall goal A project manager Individual tasks to be performed Timing for those tasks to be completed (such as three hours, three days, or three months) Timing relationships between those tasks (For example, you cant put a new manufacturing process in place until you train people in how to use the process.) Resources (people, equipment, facilities, and supplies, for example) to accomplish the work A budget (the costs associated with those people, equipment, facilities, and supplies)

Project management is simply the process of managing all the elements of a project, whether that project is large or small.

PM 2TS AND A D
Task Timing Dependencies If you dont know where youre going, any road will get you there. Lewis Caroll

TASK
Simply one of those items you used to scribble on your handwritten to-do lists, such as Write final report or Apply for permits. Typically organized into phases (appropriate stages) in Project, arranged in an outline like structure. Timing is essential in any project, Project helps you set up and view the timing relationships among tasks.

A task can be as broad or as detailed as you like. For example, you can create a single task to research your competition, or you can create a project phase that consists of a summary task and subtasks below it. For example, the summary task might be Competitive Research, with the subtasks Researching Online Business Databases, Assembling Company Annual Reports, and Reviewing Competitive Product Lines. Adding tasks to a Project file doesnt cost you a thing (except a Nano bit of memory), so a project can have as many tasks and as many phases as you like. You simply use the outlining structure in Project to indent various levels of tasks. The more deeply indented in an outline a task is, the more detailed the task.

ITS ALL IN THE TIMING: TIMING IS EVERYTHING

Rome wasnt built in a day, a stitch in time saves nine, and dont even ask about choosing exactly when to sell your high-tech stocks. Duration which is the amount of time needed to complete the task. Milestone is a task of zero duration; in essence, it simply marks a moment in time that must be reflected in your Project outline.

DEPENDENCIES
Timing relationships among tasks After you define and implement timing relationships among tasks, your schedule can stretch over time like a long rubber band. For example, one task might begin only after another is finished. Another task can start halfway through the preceding task. The second task cannot start until a week after the first task is finished. Only after you start to assign these relationships can you begin to see a projects timing as related to not just each tasks duration but also the specific ways in which the tasks relate to each other.

EXAMPLE OF DEPENDECIES
You cant begin to use a new piece of equipment until you install it. You must wait for a freshly poured concrete foundation to dry before you can begin to build on it. You cant start to ship a new drug product until the FDA approves it.

CONSTRAINTS FOR DEPENDENCIES

For example, say that you dont want to start shipping your new cake flavor until you get the ad for it in your Christmas catalog, so you set a dependency between those two events. You can also set a constraint which says that you must start producing the cakes no later than November 3. In this case, if you dont make the catalog deadline, the product will still ship on November 3; that task will not be allowed to slip its constraint because of this dependency relationship.

LINING UP RESOURCES
Resources arent just people: A resource can be
a piece of equipment you rent, a meeting room that you have to pay an hourly fee to use, a box of nails or a software program you have to buy.

KINDS OF RESOURCES
A work resource is charged by how many hours or days the resource (often human) works on a task. A material resource, such as sewing supplies or steel, is charged by a per-use cost or by a unit of measurement (such as square yards or linear feet or tons). A cost resource has a set cost, such as a conference fee of $250; this cost doesnt vary by how much time you spend at the conference or how many people attend.

CONSIDERATIONS
Variations in work force Rate differences

NOTE: Read Chapter 7:Using your Natural Resources page 129 of the MS Project 2007 for Dummies by Nancy Muir Read also the tutorial that I have uploaded in our yahoo groups (punpse) located in the resources folder

COST BENEFIT ANALYSIS

Developmental Cost (DC) Existing Operating Cost (EOC) Proposed Operating Cost (POC) Savings(SN)
SN= EOC-POC

Interest
I=(1+i)n

Wherein: 1 is constant i is the actual interest rate (Phil. Rate is 20%) n is the number of years

Present Value (PV) PV=SN/i Payback Period (PBP)

PBP=[DC-CPV of the last x mark/PV of the / mark] +number of x mark

Net Present Value (NPV) NPV=CPV of the last / mark-DC Return of Investment (ROI) ROI=(NPV/DC)100%

I. Developmental Cost Name New Computer New Printer TOTAL Price 25000 4000 Quantity 1 3 Amount 25000 12000 37000

I. Existing System A. Salaries Personnel

Monthly

Annually

Number of Personnel 1 2 330 5 1

Amount

Administrative Officer Record Section Faculty Department Heads Principal TOTAL B. Supplies Name Envelope Folders Grading Sheet Attendance Sheet Form 137 Bond Papers Record Book Report Card TOTAL C. Utilities Electric Bill Internet TOTAL D. Other Fees Miscellaneous

10,000 10,000 16,000 21,000 25,000

120,000 120,000 192,000 252,000 300,000

120,000 240,000 63,360,000 1,260,000 300,000 65,280,000 Price 3 7 5 2 2 250 50 2 Amount 1500 3500 6000 2400 24114 500 16500 24114 78628 Amount 5,287,733.04 48000 5,335,733.04 10000

Quarterly Quantity (pieces) 125 125 300 300 0 0 0 0

Annually Quantity (pieces) 500 500 1200 1200 12057 2 rims 330 12057

Monthly 440,644.42 4000

Yearly 5,287,733.04 48000

I. Proposed System A. Salaries Personnel Administrative Officer Record Section Faculty Department Heads Principal TOTAL B. Supplies Name

Monthly 10,000 10,000 16,000 21,000 25,000

Annually 120,000 120,000 192,000 252,000 300,000

Number of Personnel 1 2 330 5 1

Amount 120,000 240,000 63,360,000 1,260,000 300,000 65,280,000

Quarterly Quantity

Annually Quantity

Price

Amount

Ink Refill Bond Papers Report Card TOTAL C. Utilities Electric Bill Internet TOTAL D. Other Fees Miscellaneous

6 refills 0

24 refills 5 rims 12057

500 250 2

12000 1250 24114 37,364

Monthly 442,644.42 4000

Yearly 5,311,733.04 48000

Amount 5,311,733.04 48000 5,359,733.04

10000

COMPUTATIONS:
Total Developmental Cost- 26200 Total Existing Operating Cost- 70,704,361.04 Total Proposed Operating Cost70,687,097.04 Savings(SN) SN= EOC-POC SN= 70,704,361.04-70,687,097.04 = 17264

Interest I=(1+i)n =(1+0.20)n =1.20n 1st year I=(1+i)n =(1+0.20)1 =1.20

2nd year I=(1+i)n =(1+0.20)2 =1.44

COMPARATIVE TABLE

Year 1 2

Savings 17264 17264

Interest 1.20 1.44

Present Value 14,386.67 11,988.89

Cumulative Mark Present Value 14,386.67 26,375.56 X

Present Value PV=SN/i 1st year PV=17264/1.20 =14,386.67 2nd year PV=17264/1.44 =11,988.89

Pay Back Period PBP=[DC-CPV of the last x mark/PV of the / mark] +number of x mark =[26,200-14,386.67/11,988.89]+1 = 1.99 = 1 Year, 11 Months, 29 Days Note: PBP result must always be converted to number of years, months and days. Number of years may not be included if not applicable. Number of months should be computed in its standard basis (12 months) and number of days should be computed in 30 days (for 31 daysexcess day should be considered rest day/ extra effort income

Net Present Value NPV=CPV of the last / mark-DC =26375.56-26,200 =175.56 Return of Investment ROI=(NPV/DC)100% =(175.56/26200)100% =0.67%

PROJECT COST
The cost will be based on COCOMO Note: COCOMO Calculator is available over the internet. For your documentation please be guided with the example.

archive = 23 lines banner = 6 lines login = 273 lines profile = 100 lines profile online = 93 lines footer = 5 lines newsflash = 20 lines poll = 20 lines breadcrumbs = 10 lines feed = 30 lines main menu = 40 lines tabs = 10 lines wrapper = 20 lines style = 200 lines template = 100 lines typography = 50 lines

The following are based on the number of lines for each modules

Total = 1000 lines The cost according to COCOMO is 20,000

Development Delivered Source Instructions (thousands) (KDSI) Development Mode Average Cost Rate ($/PM) Maintenance KDSI added (annual) KDSI modified (annual) Average Cost Rate ($/PM) 0 0 10000 1 Organic 10000

Effort Schedule Development Cost Productivity Average Staffing

2 person-months (PM) 3 months 20000 500 instructions per person-month full-time-equivalent software 0.7 personnel person-months

Annual Maintenance 0 Effort Annual Maintenance 0 Cost

Phase Distribution Effort (PM) Schedule (mo.) Plans and requirements * Product Design Programming Detailed Design Code and unit test Integration and test 0.1 0.3 1.4 0.5 0.8 0.3 0.5 0.6 0.3 0.6 1.9 Staff (avg.) 0.3 0.5 0.7 1000 3000 14000 5000 8000 3000 Cost

Activity Distribution (Staff) by Phase Phase Activity Requirements Analysis Plans and Product Programming Requirements Design 0.2 0.1 0.2 0.1 0 0 0.1 0 0 0.5 0 0.1 0.4 0 0 0 0 0 0.5 0 0 0.2 0 0.2 0 0 0 0.4 Integration and Test 0 0 0 0 0 0 0 0 Maintenance

Product Design 0.1 Programming Test Planning 0 0

Verification 0 and Validation Project Office CM/QA Manuals TOTAL 0.1 0 0 0.4

PROJECT STAFFING
Project staffing is the part of the project management wherein staff are being allocated to different roles and responsibilities. Steps
Identify your staff and their capability As the PM or team lead, based your role allocation in terms of their field of expertise Provide a role for each staff and give them their duties and responsibilities.

Names

Role

Duties and Responsibilities As a project manager: It is the manger's duty to supervise and coordinate all the activities. He has to see to it, that the task is performed to the fullest of the efficiency. A manager has to plan out an organizational structure to bring out ease and flow in the task. As a programmer: To develop the whole functionality of the system Perform monitoring tasks to ensure that the programs which they develop work as they are supposed to. This is done by reviewing programs on a frequent basis and making adjustments as are necessary to ensure the proper working of a computer program.

Juan Dela Cruz Project Manager, Programmer

PROJECT SCHEDULING
The procedural plan of a project that indicates the time and sequence of each operation involve. 2 important diagrams
PERT Gantt

GANTT CHART: BASIC CONCEPT

A popular type of bar chart. It illustrates the tasks that must be done to complete the project, the time frame they must be completed in, and the team members who are assigned to each task. Each task takes up one of the rows. Dates run along the top in increments of days, weeks or months. Rows of bars in the Gantt chart show the start and finish dates of each task in the project. Tasks may run sequentially, in parallel or overlapping. Gantt is not all capitalized- it is not written as GANTT

Gantt charts indicate the exact duration of specific tasks, but they can also be used to indicate: 1 The relationship between tasks 2 Planned and actual completion dates 3 Cost of each task 4 The person or persons responsible for each task 5 The milestones in a project's development Gantt charts are also used by supervisors and team leaders to schedule team members for various time dependent tasks such as visiting clients, making sales calls, being on medical call, being on guard duty, and more. There are two types of Gantt Charts: Load Charts and Project Planning Charts.

HISTORY
The first known tool of this type was reportedly developed in 1896 by Karol Adamiecki, who called it a harmonogram. Adamiecki only published his chart in 1931. Gantt chart was developed by Henry L. Gantt (1861-1919), an American engineer, in 1917. He created the first Gantt chart for planning building ships in the times of First World War. The chart proved to be a powerful analytical instrument that it had not undergone any changes for many years. It was only in 90s of the last century when link lines between tasks were added to the Gantt chart.

One of the first major applications of Gantt charts was during the First World War. In the 1980s, personal computers allowed for widespread creation of complex and elaborate Gantt charts.

NOTE: For further information about Henry Gantt, read further his biography over the internet. This might be included in the exam

VARIANTS
Milestones: important checkpoints or interim goals for a project. Resources: for team projects, it often helps to have an additional column containing numbers or initials which identify who on the team is responsible for the task. Status: the projects progress, the chart is updated by filling in the task's bar to a length proportional to the amount of work finished. Dependencies: an essential concept that some activities are dependent on other activities being completed first.

COMPONENTS
Activity ID (for easy reference) Activity/Task The operation in the project Predecessor An indicator for the task to which another has succeeded Time Estimates Optimistic Time Estimates (commonly denoted by O)
The earliest time that the task will be accomplished

Normal Time Estimates (commonly denoted by M)

Actual allocated time for a certain task to be accomplished

Pessimistic Time Estimates (commonly denoted by P)

The latest time that the task will be accomplished

Expected Time Formula (O+4M+P)+6 Task Duration (Start Date and Finish Date) Milestone/ Deliverables
Goal of a certain task

HOW TO CREATE A GANTT CHART?

Step 1 list the tasks with a corresponding task ID in the project Step 2 add task durations Step 3 add dependencies/ predecessor (which tasks cannot start before another task finishes) Step 4 provide the O and P based on the N Step 5- Calculate their expected time

NOTE OTES

The arrows indicate dependencies. Task 1 is a predecessor of task 2 i.e. task 2 cannot start before task 1 ends. Task 3 is dependent on task 2. Task 7 is dependent on two other tasks Electrics, plumbing and landscaping are concurrent tasks and can happen at the same time, so they overlap on the chart. All 3 can start after task 4 ends. Painting must wait for both electrics and plumbing to be finished. Task 9 has zero duration, and is a milestone
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EXAMPLE
Time estimates Activity ID Activity Predec essor Opt. (O) Normal (M) Pess. (P) Expected time Task Duration Start Time Jan. 10 Jan. 15 Jan. 20 Jan. 25 Feb. 1 Feb.6 Feb. 10 Finish Time Jan. 14 Jan. 20 Jan. 25 Jan. 31 Feb. 6 Feb. 10 Feb. 15 Mileston e/Deliver ables Project Plan Data gathered Findings Modules Findings Findings Documen tation

A B C D E

Planning Requirements Gathering Data Analysis Coding Component Testing System and Integration Testing Deployment

A B C C,D

2 3 4 4 4 3 3

4 5 5 6 5 4 5

6 9 7 10 7 8 8

4.00 5.33 5.17 6.33 5.17 4.50 5.17

For the Gantt chart Lets do it on the board.

PERT CHART
Program Evaluation and Review Technique

PERT BASICS
PERT is an acronym so its in capital letters Gantt is a name, so only has an initial capital In Gantt chart, the length of a tasks bar is proportional to the length of the task. This rarely applies to PERT charts. There are a few different flavours of PERT and Gantt charts

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PERT CHARTS

This PERT chart follows the Activity on Arrow style. The tasks are shown by arrows. Task name are shown by letters, in this case. The circles are called nodes. The nodes indicate the start or end of tasks. Task durations are the shown by the numbers.

ACTIVITY ON NODE STYLE PERT

Activity on Node is a different flavour of PERT: this time the nodes are tasks, and the arrows are merely connectors. The examiners prefer very simple PERT charts sometimes hybrid beasts that defy categorisation.

PERT PROBLEMS
A PERT PROBLEM

1: Which tasks are on the critical path? 2: What is the slack time for tasks C, D and G? 3: Task C is delayed by one day. What impact would this have on the completion date of the project? Why? 4: Task A will be delayed by 2 days because some equipment has arrived late. If the project manager wants to finish the project on time he will need to shorten the duration of one or more of the tasks. How can he achieve this? 5: The project manager reduces the durations of tasks D and F by one day each. How will this affect the finishing date of the project?

1: Which tasks are on the critical path?

Possible paths: A,B,C,E,I = 2+3+1+4+3 = 13 days A,B,D,F,I = 2+3+3+3+3 = 14 days A,G,H,I = 2+2+5+3 = 12 days

ANSWER: A,B,D,F,I

2: What is the slack time for tasks C, D and G?

TASKS C and D Path C,E = 5 days, Path D,F = 6 days Difference (slack) = 1 day for tasks C or E compared to D,F

TASK G Path B,C,E = 8 days. Path B, D, F = 9 days Path G, H = 7 days. So G & H have 2 days slack between them. B,C or E have 1 days slack. B,D,F have no slack.

3: Task C starts one day late. What impact would this have on the completion date of the project? Why?

No impact, because task C has one days slack (as discovered in previous question!)

4: Task A will be delayed by 2 days because some equipment has arrived late. If the project manager still wants to finish the project within the original time frame, he will need to shorten the time for one or more of the tasks. What steps can he take to reduce the number of days allocated to a task?

The answer has NOTHING to do with the chart! Just say how jobs can be finished more quickly, e.g. bringing in extra workers from slack tasks, working longer hours, working weekend, streamlining work practices, automating tasks etc.

5: The project manager decides to reduce the time needed for tasks D and F by one day each. How effective will this reduction be in achieving his aim of maintaining the original finish time for the project?

It is only partially effective. Reducing tasks D and F by one day each means the path A,B,D,F,I is now 12 days long. However, path A,B,C,E,I is still 13 days so it becomes the longest path, and therefore becomes the new critical path. The project is now 13 days long instead of 14, a saving of only one day.

SOME GANTT / PERT TERMS

Lead time
Occurs when a task should theoretically wait for its predecessor to finish, but can actually start a little early. The time that the tasks overlap is lead time. E.g. when replacing computers in a computer lab, you could actually start bringing in the new computers while the old ones were being packed up and moved out.

SOME GANTT / PERT TERMS

Lag time

The minimum amount of time that must pass between the finish of one activity and the start of its successor(s). For example, if task A is laying a houses concrete slab, and dependent task B is putting up the house walls, there would need to be some lag time between the end of task A and the start of task B to let the concrete set. Lag time is shown in a PERT chart as an arrow with a duration but no task assigned to it.

SOME GANTT / PERT TERMS

Dummy Task
Shown by a dotted arrow on a PERT chart, it shows a dependency but no task. The next example shows this

A FAMILY ROUTINE

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QUESTIONS

Q1. What tasks are on the critical path? Q2. What is the minimum time it would take for the family to reach the footy game after the alarm goes off? Q3. How much more time could dad walk the dog before eating breakfast got delayed? (Note: Mum insists the entire family eats together) Q4. What is this time called? Q5. If mum skipped her 40 minute shower, how much earlier would they get to the game?

Q1

What is the critical path? Path 1 = 5+5+40+15+15+5+25 = 110 min Path 2 = 5+5+30+15+5+25 = 85 Path 3 = 5+5+10+15+15+5+25 = 80 The critical path is the longest path : path 1

Q2

What is the minimum time it would take for the family to reach the footy game after the alarm starts ringing?

The duration of the critical tasks 110 minutes

Q3 & 4

How much more time could dad walk the dog before eating breakfast got delayed? 30 minutes Shower + Prep Brekky = 55 min vs Walk Dog + Dad Shower = 25 min 30 min What is this time called? diff Slack time (or float)

Q5

If mum skipped her 40 minute shower, how much earlier would they get to the game?
When the critical path is reduced by 40 minutes, it stops being the critical path. Path 2, at 85 min, becomes the critical path. Since it is 25 min shorter than the original 110 minute critical path, there is a 25 minute saving.

Better understanding to PM may yield to higher revenue of a project and more fulfilling feelings.