PROJECT MANAGEMENT

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PROJECT

 Projects have been taken up since earliest civilization

to fulfill them.

Needs / Aspirations / visions / strategies

PROJECTS

Products / services / results

2
PROJECT

 PROJECT is a temporary endeavor

undertaken to create a unique
product, service or result.
 TEMPORARY:
 Doesn’t mean necessarily short in duration
 Definitive beginning
 Definitive end
 Finite, not ongoing
 With defined project objectives (scope,
time, cost, quality)
3
PROJECT

 Project ends when

 Objectives are met
 Project objectives cant be met
 Need for the project no longer exists

4
PROJECT
CHARACTERISITICS
 Progressive Elaboration:
 Scope is high level & broadly defined in beginning
 It becomes more explicit & detailed as project progresses
and develops better understanding of project objectives
and deliverables
 Critical to project success

5
PROJECTS Vs OPERATIONS

 What do organizations do?

 Perform work to accomplish a set of defined objectives
 Work:
 Operations
 Projects
 Sometimes they overlap..!!

6
PROJECTS Vs OPERATIONS

 Commonality:
 Performed by people
 Limited by resource constraints
 Planned, executed, monitored and controlled
 Performed to achieve organizational objectives / strategic
plans

7
PROJECTS Vs OPERATIONS

PROJECTS OPERATIONS
 Temporary & unique  Ongoing & repetitive
 Purpose is to attain  Purposeis to sustain
its objectives & then the business
terminate
 Concludes when its  Adoptsnew set of
specified objectives objectives and the
have been achieved work continues

8
PROJECTS Vs OPERATIONS

 Projects can intersect with operations at

various points:
 During improving productivity of a process
 During improving overall operational efficiency
 Expanding outputs
 Knowledge and resources are transferred
between projects and operations
 Transfer of operational resources to the
project at the start
 Transfer of project resources to operations
towards the end of the projects
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PROJECT EXAMPLES

 ???

10
WHY PROJECTS ??

 Projects are a mean of achieving goals and objectives

within the context of strategic plan of an organization.
 Strategic business need
 Market demand / opportunity
 Customer request
 Technological advance
 Legal requirement
 Quality consciousness

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PROJECTS

 Taken up at all organizational levels

 May require few persons to thousands
 May be undertaken within an organization or involve
many outside organization.

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PROJECTS

 Worldwide concern:
 Only 34% of all projects undertaken globally succeed.
Because of poor and inefficient project management.
 Project management training can address the concern.

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PROJECT MANAGEMENT
(PM)
 Application of knowledge, skills, tools
and techniques to project activities to
meet the project requirements.
 Application and integration of 47
logically grouped PM processes,
comprising 5 process groups:
 Initiation
 Planning
 Execution
 Monitoring and control
 closing

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GIST OF PM

 Identifying requirements.
 Addressing the various needs, concerns & expectations
of the stakeholders – as the project is planned and
executed.
 Balancing of competing constraints:
 Scope -- Schedule
 Budget -- Quality
 Resources-- Risk

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TRIPLE CONSTRAINTS

TIME COST

SCOPE

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PM DIMENSIONS

TIME

SCOPE COST

RISK QUALITY

CUSTOMER
SATISFACTION
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PM CONTEXT
Strategic Plan
↓
Portfolio
↓
Program
↓
Project
↓
Sub-projects

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ORGANIZATIONAL
STRUCTURE
 Functional organization
 Matrix organization
 Weak matrix
 Balanced matrix
 Strong matrix
 Projectized organization

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PROJECT MANAGER
(OWNER)
 Person assigned by performing organization to
achieve project objectives.
 Report to functional manager or PMO/CEO
depending on the organizational structure.
 Effective project manager:
 Area specific skills & knowledge
 General management proficiencies
 Trained
 Perform by applying PM skills
 Personal effectiveness, attitude, core personality
traits

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PROJECT MANAGEMENT
OFFICE
 An organizational unit to centralize
and coordinate management of
projects under its domain.
 Functions:
 Identify & allocating resources for various
projects
 Standardized policies, procedures,
templates and other shared documents
 Identify & deploy PM methodology, best
practices and standards
 Training & mentoring
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PROJECT MANAGEMENT
OFFICE
 Functions (cont’d):
 Central coordination of communication across
all projects
 Central monitoring of all projects, time lines
and budget
 Maintaining organizational projects board &
library
 Authority to recommend or terminate projects
 Involved in selection, management and re-
deployment of shared/dedicated project staff
 Finds out opportunities to better achieve
business objectives
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PROJECT MANAGER Vs PMO
 Focuses on specified  Manages objectives
project objectives for all projects in its
domain
 Controls  Optimizes use of
assigned
project resources shared resources
across all projects
 Manages constraints  Manages constraints
of the assigned of all projects at
project. organizational level.
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ENTERPRISE ENVIRONMENTAL
FACTORS

 EEF
 All external and internal factors that surrounds the
project.
 Enhance or constraint PM options.
 Positive or negative influence on the outcome.
 Org culture, structure & processes, market conditions,
govt / industry standards etc.

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ENTERPRISE ENVIRONMENTAL
FACTORS

 Stakeholder risk tolerance, infrastructure, HR & their

special skills, personnel admin, work authorization
system
 Organizational communication channels
 Political climate
 PM information system

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ORGANIZATIONAL PROCESS
ASSETS
 Helps throughout the project
 Project management policy
 Standards, policies, procedures, processes
 Quality consciousness
 Organizational culture
 Organizational ethics
 Corporate knowledgebase
 Historic information from previous projects
 Lessons learned from previous projects
 Project files, reports, library
 Corporate branding
 Patents, licenses, copy rights etc.
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PM Basics

 EEF
 OPA (Organizational Process Assets)
 ICC (CCB, CAB)
 Gold Plating: giving something extra than
scope.

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PROJECT LIFE CYCLE (PLC)

 Collection of generally sequential and some times

overlapping project phases.
 Project divided into several phases (and into
subphases)
 For better management control
 To ascertain proper completion of intended objective
of the project
 Output of preceding phase is input to the
succeeding phase.
 Each phase is marked by completion of one or
more deliverables.
 Phase end review (phase exit, milestones, phase
gates, decision gates, kill points etc)
 Deliverable: a tangible, verifiable work product.
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SEQUENTIAL RELATIONSHIP

 Fast-tracking: starting activities of next

phase without closing the current phase.
 Increase risk and re-work
 Used for schedule compression
 Iterative relationship:
 Only one phase is planned
 Next phase is planned as work progresses on
the current phase & deliverables.
 Useful in undefined, uncertain and in dynamic
environments, research projects.
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PLC CHARACTERISTICS

Uncertainty of success and risk

High

Amount at stake
Low

Time
Project Life Cycle

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PLC CHARACTERISTICS

Opportunity to add value

High

Cost of change
Low

Time
Project Life Cycle

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PM LIFE CYCLE (PMLC)

 What one needs to do to manage the project.

 Phases: initiation, planning, execution, monitoring &
control, closing.

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PROJECT STAKEHOLDERS

 Individuals and/or organization (s)

 Those who are actively involved in the project
 Those whose interests may be positively or negatively
affected by performance or completion of the project.
 They exert influence over the project, its deliverables
and team members.

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PROJECT STAKEHOLDERS

 Project manager must

 Identify all internal & external stakeholders.
 Determine their requirements & expectations.
 Manage the influence of various stakeholders in relation to
project requirements to ensure successful outcome.
 Ignore → project outcomes “DAMAGING”
 Take care → project outcomes HIGHLY
POSITIVE

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STAKEHOLDER
MANAGEMENT
 Concurrent Engineering: provides
solution to the problem of differing
stakeholder needs, perspectives and
expectations.
 Get and keep them involved through
assigning them work, using them as
experts, reporting to them, involving
them in changes and the creation of
lesson learned.
 Get them to sign off and obtain their
formal acceptance.
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PM PROCESS GROUPS

1. Initiation: authorizes/starts the

project, defines purpose, identifies
objectives, empower project
manager to start the project.
2. Planning: establish the scope, refine
the objectives, define the course of
action for attaining the result
3. Execution: complete the work
defined in the PM plan to satisfy the
project specifications, creates
project deliverables, coordinates
people & resources
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PM PROCESS GROUPS

4. Monitoring & Control: track, review & regulate the

progress and performance of the project, manage
changes to the PM plan.
5. Closing: finalizes all activities across all process
groups to formally close the project, brings it to an
orderly end.

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PM KNOWLEDGE AREAS

 Pieces in Gigso Puzzle.

1. Scope
2. Time
3. Cost
4. Quality
5. HR
6. Communication
7. Risk
8. Procurement
9. Integration
10. Stakeholder Management
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SCOPE MANAGEMENT

 To ensure project includes all the work required and

only the work needed to complete the project
successfully
 Collect requirements
 Define scope
 Create WBS
 verify scope
 Control scope

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TIME MANAGEMENT

 To ensure timely completion of the project

 Define activities
 Sequence activities
 Estimate activity resources
 Estimate activity durations
 Develop schedule
 Control schedule

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COST MANAGEMENT

 Planning, controlling and managing costs so that project

is completed within approved budget
 Estimate costs
 Determine budget
 Control costs

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QUALITY MANAGEMENT

 To ensure project will satisfy needs for which it was

undertaken.
 Plan quality
 Perform quality assurance
 Perform quality control

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HR MANAGEMENT

 To make most effective use of people involved with the

project.
 Develop human resource plan
 Acquire project team
 Develop project team
 Manage project team

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COMMUNICATION
MANAGEMENT
 To ensure timely and appropriate generation,
collection, dissemination, storage and disposition of the
project information
 Identify stakeholders
 Plan communication
 Distribute information
 Manage stakeholders expectations
 Report performance

44
RISK MANAGEMENT

 Concerned with identifying, analyzing and responding to

project risks
 Plan risk management
 Identify risks
 Perform qualitative risk analysis
 Perform quantitative risk analysis
 Plan risk responses
 Monitor & control risks

45
PROCUREMENT
MANAGEMENT
 To acquire material, goods and services from outside to
meet project scope.
 Plan procurement
 Conduct procurement
 Administer procurement
 Close procurement

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INTEGRATION MANAGEMENT

 Supports various elements of PM which are identified,

defined, combined and coordinated.
 Develop project charter
 Develop PM plan
 Direct and manage project execution
 Monitor and control project work
 Perform integrate change control
 Close project or phase

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STAKEHOLDER MANAGEMENT

 Identify Stakeholders
 Plan Stakeholder Management
 Management Stakeholder Engagement
 Control Stakeholder Engagement

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MAPPING
Initiating Planning Executing Controlling Closing

Project • Develop • Develop PM Plan • Direct and • Monitor & •Close

Integration Project manage project control project
Management Charter execution project work
• Perform
integrated
change
control

Project •Plan Scope • Validate

Scope Management scope
Management • Collect • Control
requirements scope
• Define Scope
• Create WBS
Project Time •Plan Schedule •Control
Management Management schedule
• Define Activities
• Sequence
activities
• Estimate activity
resources
• Estimate activity
49
durations
• Develop schedule
MAPPING
Initiating Planning Executing Controlling Closing
Project Cost • Plan Cost • Cost control
Management Management
•Estimate costs
• Determine
budget
Project • Plan quality • Perform quality •Control
Quality Management assurance Quality
Management

Project HR • Plan Human • Acquire project

Management Resource team
Management • Develop project
team
• Manage project
team

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MAPPING
Initiating Planning Executing Controlling Closing
Project • Plan •Manage • Control
Communication communications Communications Communicat
Management Management ions

Project Risk • Plan risk • Control

Management management risks
• Identify risks
• Perform qualitative
risk analysis
• Perform quantitative
risk analysis
• Plan risk response
Project • Plan procurement • Conduct • Control • Close
Procurement Management procurement procurement procurem
Management ent

Project •Identify • Plan Stakeholder •Manage • Control

Stakeholder stakehold Management Stakeholder Stakeholder
Management ers Engagement Engagement
51
INTEGRATION MANAGEMENT

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SCOPE MANAGEMENT

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64
65
TIME MANAGEMENT

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75
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COST MANAGEMENT

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QUALITY MANAGEMENT

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HUMAN RESOURCE MANAGEMENT

85
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COMMUNICATIONS MANAGEMENT

87
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RISK MANAGEMENT

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93
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PROCUREMENT MANAGEMENT

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STAKEHOLDER MANAGEMENT

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98
Earned Value Management

 Earned value management (EVM) is a methodology that

combines scope, schedule, and resource measurements
to assess project performance and progress.
 It is a commonly used method of performance
measurement for projects.
 It integrates the scope baseline with the cost baseline,
along with the schedule baseline, to form the
performance baseline, which helps the project
management team assess and measure project
performance and progress.

99
Planned Value
Planned value. Planned value (PV) is the authorized budget assigned to
scheduled work. It is the authorized budget planned for the work to be
accomplished for an activity or work breakdown structure
component, not including management reserve.

This budget is allocated by phase over the life of the project, but at a given
moment, planned value defines the physical work that should have been
accomplished. The total of the PV is sometimes referred to as the
performance measurement baseline
(PMB).

The total planned value for the project is also known as budget at completion
(BAC).

100
Earned Value

 Earned value. Earned value (EV) is a measure of work

performed expressed in terms of the budget authorized
for that work. It is the budget associated with the
authorized work that has been completed.
 The EV being measured needs to be related to the PMB,
and the EV measured cannot be greater than the
authorized PV budget for a component. The EV is often
used to calculate the percent complete of a project.
 Progress measurement criteria should be established for
each WBS component to measure work in progress.

101
Actual Cost

 Actual cost. Actual cost (AC) is the realized cost

incurred for the work performed on an activity during a
specific time period. It is the total cost incurred in
accomplishing the work that the EV measured.
 The AC needs to correspond in definition to what was
budgeted in the PV and measured in the EV (e.g. Direct
hours only, direct costs only, or all costs including
indirect costs). The AC will have no upper limit;
 whatever is spent to achieve the EV will be measured.

102
Schedule Variance:

 Schedule variance. Schedule variance (SV) is a measure of

schedule performance expressed as the
 difference between the earned value and the planned
value. It is the amount by which the project is ahead
 or behind the planned delivery date, at a given point in
time. It is a measure of schedule performance on a
project.
 It is equal to the earned value (EV) minus the planned
value (PV).

SV = EV – PV
103
Cost Variance:

 Cost variance (CV) is the amount of budget deficit or

surplus at a given point in time, expressed as the
difference between earned value and the actual cost. It
is a measure of cost performance on a project.
 It is equal to the earned value (EV) minus the actual
cost (AC).

CV= EV − AC

104
Schedule performance index:
 The schedule performance index (SPI) is a measure of
schedule efficiency expressed as the ratio of earned value to
planned value. It measures how efficiently the project team is
using its time.
 It is sometimes used in conjunction with the cost performance
index (CPI) to forecast the final project completion estimates.
 An SPI value less than 1.0 indicates less work was completed
than was planned. An SPI greater than 1.0 indicates that more
work was completed than was planned.

SPI = EV/PV

105
Cost performance index:
 The cost performance index (CPI) is a measure of the
cost efficiency of budgeted
 resources, expressed as a ratio of earned value to
actual cost. It is considered the most critical EVM
 metric and measures the cost efficiency for the work
completed. A CPI value of less than 1.0 indicates a
 cost overrun for work completed.

CPI = EV/AC

106
 Schedule Variance & Cost Variance

Schedule Variance = EV-PV

$49,000
- 55,000
SV = - $ 6,000

Cost Variance = EV-AC

$49,000
56,000
CV = - $7,000

107
 Some More Derived Metrics


SPI: Schedule Performance Index SPI=EV/PV
 If SPI<1 means project is behind schedule

CPI: Cost Performance Index CPI= EV/AC
If CPI<1 means project is over budget


CSI: Cost Schedule Index (CSI=CPI x SPI)
The further CSI is from 1.0, the less likely project
recovery becomes.

108
PROJECT CHARTER

 A HIGH LEVEL DOCUMENT that formally authorizes a

project.
 It formally initiates the project.
 Establishing a partnership between performing and
requesting parties.

109
PROJECT CHARTER

 Project manager should be identified and involved while

developing project charter.
 Projects are authorized by someone external to the
project. (Sponsor, Initiator, PMO, Steering Committee
etc, having funding authority)

110
PROJECT CHARTER

 In some cases, assessment & feasibility study is needed

before initiation.
 Main areas to be addressed:
 Who needs this change?
 Which solution is recommended?
 What are the benefits?
 What are estimated project costs & assumptions?
 What are significant risks?

111
 PROJECT CHARTER

 Process overview:
INPUTS TOOLS & OUTPUTS
TECHNIQUES
• Project Statement of work • Project Charter
• Business case •Expert judgment
•Agreements •Facilitation
• EEF techniques
• OPA

112
113
PROJECT STATEMENT OF
WORK
 Describes product/services to be provided by the
project.
 For internal projects, it is given by project sponsor.
 For external projects, it is given by customer.
 It indicates business need, service scope description &
strategic plan.

114
BUSINESS CASE

 Describes justification for investment from business

standpoint.
 May contain business need and cost-benefit analysis.
 Requesting organization/customer write the business
case.
 Reviewed periodically.

115
EXPERT JUDGMENT

 Help assess inputs required to develop the charter.

 Applied to any technical and management details.
 Sources:
 Other units within performing organization
 Technical consultants/associations
 Stakeholders
 Industry groups etc.

116
PROJECT CHARTER

 Project purpose & justification

 Measurable project objectives and related
success criteria
 High level requirements
 Assigned project manager & empowerment
 High level project description
 High level assumptions
 High level risks
 Summary level milestone schedule
 Summary level budget
 Project approval requirements
 Name and authority of the project sponsor.
117
 PROJECT CHARTER

 Process overview:
INPUTS TOOLS & OUTPUTS
TECHNIQUES
• Project Statement of work • Project Charter
• Business case • Expert judgment
• Contract (if applicable)
• EEF
• OPA

118
IDENTIFY STAKEHOLDERS

 Identifying all people/organizations impacted by the

project ASAP.
 To maximize positive influences and minimize potential
negative impacts.
 Classify & documenting their interests, expectations,
importance, influence, involvement and impact on
project success.

119
 IDENTIFY STAKEHOLDERS

 Process overview:

INPUTS TOOLS & OUTPUTS

TECHNIQUES
• Project charter •Stakeholder register
• Stakeholder analysis •Stakeholder management
• EEF • expert judgment strategy
• OPA

120
STAKEHOLDER ANALYSIS

 The process of systematically gathering & analyzing

quantitative and qualitative information to determine
whose interests should be taken into account
throughout the project.
1. Identify all potential stakeholders
2. Identify potential impact/support each of them could
generate & make an approach strategy
3. Assess how key stakeholders are likely to react

121
STAKEHOLDER ANALYSIS

 Classify them according to “Power – Interest Grid”.

High Keep satisfied

Manage closely

Power
Monitor
(minimum Keep informed
Low effort)

Low Interest High

122
STAKEHOLDER MANAGEMENT
STRATEGY

 Assess how key stakeholders are likely to react or

respond in various situations.
 Plan how to influence them to enhance their support
and minimize potential negative impacts.
 Make stakeholder register and write down all the
information.

123
 IDENTIFY STAKEHOLDERS

 Process overview:

INPUTS TOOLS & OUTPUTS

TECHNIQUES
• Project charter •Stakeholder register
• Stakeholder analysis •Stakeholder management
• EEF • expert judgment strategy
• OPA

124
PLANNING

125
PLANNING

 Establish total scope of the effort

 Define and refine the objectives
 Develop the course of action required
to attain those objectives.
 PM plan and project documents are
developed to carry out the project.
 Significant changes during the project
may trigger a need to revisit one or
more planning processes.
 Iterations & progressive detailing of
PM plan – Rolling Wave Planning
126
PLANNING

 To ensure the project includes ALL THE WORK REQUIRED

and ONLY THE WORK REQUIRED to complete the project
successfully.
 Primarily concerned with defining and controlling WHAT
IS and WHAT IS NOT included in the project.

127
COLLECT REQUIREMENTS

 Define and record stakeholders’ needs for meeting

project objectives.
 Project success is directly influenced by the care taken
in capturing project requirements.
 Requirements become foundation of WBS.

128
 COLLECT REQUIREMENTS

 Process overview: TOOLS &

TECHNIQUES OUTPUTS
INPUTS
• Interviews
• Focused groups &
• Project charter facilitated workshops • Requirement
• Group creativity
• Stakeholder register documentation
techniques (brain • Requirement management
storming, delphi) plan
• Group decision making
• Requirement traceability
techniques (unanimity,
majority, plurality, matrix (RTM)
dictatorship)
• Questionnaires &
surveys
• Observations
• Prototypes (working
model)
129
DEFINE SCOPE

 Describes in details project deliverables and

the work needed to produce these
deliverables.
 Critical to project success.
 Develops common understanding among all
stakeholders.
 Contains explicit scope exclusions that can
help in managing stakeholder expectations.
 Enables team to perform more detailed
planning.
 Guides the project team during execution.

130
 DEFINE SCOPE

 Process overview:

INPUTS TOOLS & OUTPUTS

TECHNIQUES
• Project charter
• Project scope
• Analysis (tangible • Project document updates
• Requirement
deliverables of project)
documentation • Alternative
• OPA
identification (lateral
thinking)
• Expert judgment
• Facilitated workshop

131
WBS

 Work Breakdown Structure.

 Foundation upon which project is built. All planning and
controlling depends on WBS.
 Process of subdividing project deliverables and project
work into more manageable components upto work
package level.
 Deliverable oriented hierarchical decomposition of
project work.

132
WBS

Project

1 2 3 4 5

1.1 1.2 1.3

1.1.1 1.2.1

1.1.1.1 1.2.1.1

1.2.2

1.2.3

1.2.3.1

1.2.3.2

133
WBS

 Control account level:

 First level breakdown
 For broader idea
 Serves as milestones
 Planning package level:
 Only 3-4 level breakdown
 For planning purpose
 Work package level:
 lowest level of WBS which can be scheduled, cost
estimated, monitored and controlled
 Assign identification codes to each WBS
components (code of accounts/chart of accounts)

134
WBS

 Correctness for decomposition:

 Whether each work package can be accurately budgeted,
scheduled and assigned to the concerned person, team or
department responsible for its successful completion?
 Whether decomposition of each deliverable is sufficient for
its successful completion?
 If no, make necessary changes to ensure proper
management control.

135
WBS

 Improves accuracy of time, cost and resource

estimation.
 Defines a baseline for measuring and controlling
performance.
 Facilitates unambiguous responsibility assignment.
 Poor WBS:
 Causes rework
 Lowers productivity
 Increases project time
 Lowers morale of workforce
 Increase final project cost
 Spoils project rhythm

136
WBS DICTIONARY

 Companion document to WBS.

 Detailed contents of WBS components.
 For each component:
 Unique identifier
 Statement of work (SOW)
 Responsibility
 Quality requirement
 Technical references
 Needed resources
 Time and cost estimation

137
SCOPE BASELINE

 Consists of three documents:

 Scope statement
 WBS
 WBS dictionary
 Used to measure scope performance.

138
 CREATE WBS

 Process overview:

INPUTS TOOLS & OUTPUTS

TECHNIQUES
•OPA • WBS
• Decomposition • WBS dictionary
•Scope statement
•Requirement • Scope baseline
documentation • Project documents update

139
DEFINE ACTIVITIES

 Process of decomposing work packages into activities

needed to complete them.
 Provides a basis for estimating, scheduling, executing,
monitoring and controlling the project work.
 Profound impact of activities on project objectives
because activities consume resources, time, cost and
determine quality.

140
 DEFINE ACTIVITIES

 Process overview:

INPUTS TOOLS & OUTPUTS

TECHNIQUES
• Scope baseline • Activity list
• Decomposition • Activity attributes (codes,
• EEF
• Templates description, logical
• OPA
• Rolling wave relationship, leads & lags,
planning resource requirement,
• Expert judgment
imposed date, constraints,
assumptions)
• Milestone list

141
SEQUENCE ACTIVITIES

 Identifying and documenting interactivity & logical

relationships among activities for development of a
realistic and attainable schedule.

142
 SEQUENCE ACTIVITIES

 Process overview:

INPUTS TOOLS & OUTPUTS

TECHNIQUES
• Scope baseline • Project network diagram
• Precedence
• Activity list • Project document updates
diagramming method
• Activity attributes (PDM)
• Milestone list • Schedule network
• OPA templates (past
projects)
• Dependency
determination
• Applying leads and
lags

143
PRECEDENCE
DIAGRAMMING
 Shows activities in rectangle boxes linked by arrows
showing dependencies.
 Boxes are called nodes.
 Hence, it is known as activity-on-node (AON)

144
 PRECEDENCE
DIAGRAMMING
Activity Dependency G
E H
D Start
A Start D
C
F D,A
Start
E D End

G F,E
A B
B F F
H G
C H
End C,B 145
PRECEDENCE
DIAGRAMMING
 Four types of dependencies/precedence relationships:
 Finish to start (FS) {tiles fitting & carpet laying)
 Finish to finish (FF) {wiring & inspection}
 Start to finish (SF) {commissioning new IT system}
 Start to start (SS) {furniture making & shifting house}

146
DEPENDENCY
DETERMINATION
 Mandatory dependency (hard logic):
 Discretionary dependency (soft logic):
 Determined by project team
 It allows the activity to happen in a preferred order
 External dependency:
 External to the project like govt, vendors, external
resources etc.

147
LEAD

 Lead: an overlap in the relationship allowing successor

activity to be scheduled earlier than the predecessor
will generally allow.
 It generally subtracts time.
 Example: in a FS relationship with 5 day lead, the
successor activity begins 5 days before the predecessor
has finished.

148
LAG

 A gap in the relationship causes the successor activity to

be scheduled later than the predecessor will generally
allow.
 Delay or waiting time

149
PROJECT NETWORK
DIAGRAM
 Summary description of sequencing approach
 Schematically show project activities along with their
dependencies.
 Drawn manually or on computer using PDM.
 Unusual sequences, if any are properly narrated.
 Traditionally known as PERT chart.

150
ESTIMATE ACTIVITY
RESOURCES
 Process of determining:
 what physical resources (people, equipment, material)
 what quantity of each resource
 When they would be required to complete project
activities.
 Resources – most imp assets of a project.

151
 ESTIMATE ACTIVITY
RESOURCES
 Process overview:

INPUTS TOOLS & OUTPUTS

TECHNIQUES
• EEF & OPA • Activity resource
• Resource calendars
• Scope baseline requirement
•Expert judgment
• Activity list • Project document update
• Alternative analysis
• Activity attributes • Resource breakdown
• Published estimating
• Network diagram structure (RBS)
data
• PM software
• Bottom up estimating

152
RESOURCE CALENDARS

 Helps us know what resources are potentially available

during planned activity period.
 It details availability, capability, skills of HR resources,
type, quantity, availability and capability of material
and equipment resources.

153
ALTERNATIVE ANALYSIS

 To identify alternative methods of accomplishing

activities.
 Different levels of resource capability/skills
 Different size/types of machines
 Different tools (manual or automated)
 Make or buy decisions

154
BOTTOM UP ESTIMATING

 Resource needs of each smaller piece are estimated and

then added up to find total resource need for the
particular activity as a whole.

155
RBS

 Resource breakdown structure

 Hierarchical structure of the identified resources by
resource category and resource type.

156
 ESTIMATE ACTIVITY
DURATIONS
 Process overview:

INPUTS TOOLS & OUTPUTS

TECHNIQUES
•EEF & OPA • Activity duration estimate
• Expert judgment • Project document estimate
•Scope baseline • Analogous estimating
•Activity list • Parametric estimation
•Activity attributes • Three point estimation
•Activity resource • Reserve analysis
requirements

157
ANALOGOUS ESTIMATION

 Order of magnitude
 Gross value estimation approach.
 Actual duration of a similar activity
completed on a previous project to
determine the duration of same type of
activity on the current project.
 Used only in early phases of the project
when there is no detailed information.
 Less costly and time consuming, less
accurate

158
DEFINITIVE ESTIMATION

 Bottom up approach
 Accurate

159
PARAMATRIC ESTIMATION

 Based on some parameters

 Uses a statistical relationship between historical data
and other variables to calculate an estimate for activity
parameters like cost, budget and duration.
 Higher level of accuracy

160
THREE POINT ESTIMATION
 Most likely estimate (tM)
 Optimistic estimate (tO)
 Pessimistic estimate (tP)
 Expected activity duration:
tO + 4 tM + tP
tE = -------------------
6
 Concept originated with PERT

161
RESERVE ANALYSIS

 Additional time (buffer, reserve, contingency) added to

the activity duration or elsewhere in the schedule.
 It can be used partially or completely, or later reduced
or eliminated during the course project progress.
 Student’s syndrome.

162
RESERVE ANALYSIS

 Using reserve too freely and too early and you have
nothing left for later when reserves might be critical.
 Set hard limits as to how much to release in each period
of the project.

163
DEVELOP SCHEDULE

 One of the most crucial areas.

 It is basis for:
 Allocating resources
 Estimating costs
 Tracking project performance
 Shows the timing (start and finish) for
work elements, denotes when event &
milestones would take place.
 Iterative process.
 Has to be realistic.

164
 DEVELOP SCHEDULE

 Process overview:

INPUTS TOOLS & OUTPUTS

TECHNIQUES
• EEF & OPA • Project schedule
• Schedule network
• Scope baseline • Schedule baseline
analysis (Critical path
• Activity list • Project document estimate
method, Critical chain
• Activity attributes method)
• Activity resource • Schedule compression
requirements • What if scenario
• Activity duration
analysis
estimate • Resource leveling
• Network diagram •Adjusting leads & lags
• Scheduling tool

165
SCHEDULE NETWORK
ANALYSIS
 A technique to generate project schedule.
 Various analytical techniques like CPM, CCM, what if
analysis, resource leveling etc.

166
CRITICAL PATH METHOD

 Calculating theoretical early and late start and finish

dates for project activities.
 Indicates the time periods within which the activity
could be scheduled.
 Forward pass & backward pass
 Float/slack: amount of time that a schedule activity can
be delayed from its ES date without delaying the
project finish date or violating a schedule constraint.

167
SCHEDULE COMPRESSION

 Shorten project schedule without changing the project

scope.
 Crashing
 Leads to adding more resources to critical path activities
while maintaining the scope.
 Results in increased cost.

168
SCHEDULE COMPRESSION

 Fast tracking:
 Performing critical path activities in parallel.
 More risky
 Rework, needs more attention to communication

169
WHAT IF SCENARIO
ANALYSIS
 Calculating multiple project durations with different set
of activity assumptions with the use of simulation
techniques.
 Monte Carlo Analysis
 Used primarily to understand the feasibility of schedule
under unfavorable conditions.
 Helps in making contingency or response plans to tackle
or lessen the effect of adverse situations.

170
RESOURCE LEVELING

 Process of adjusting resource utilization on project to

match with real resource availability.
 Allocate scarce resources to critical path activities first.
 Moving activity to take advantage of resources
elsewhere in the project.
 Reverse resource allocation

171
 DEVELOP SCHEDULE

 Process overview:

INPUTS TOOLS & OUTPUTS

TECHNIQUES
• EEF & OPA • Project schedule
• Schedule network
• Scope baseline • Schedule baseline
analysis (Critical path
• Activity list • Project document estimate
method, Critical chain
• Activity attributes method)
• Activity resource • Schedule compression
requirements • What if scenario
• Activity duration
analysis
estimate • Resource leveling
• Network diagram •Adjusting leads & lags
• Scheduling tool

172
PLAN QUALITY

 Process of identifying quality requirements and

standards for the project and its deliverables,
documenting how the project will demonstrate
compliance.

173
 PLAN QUALITY

 Process overview:

INPUTS TOOLS & OUTPUTS

TECHNIQUES
• EEF & OPA • Quality management plan
•Cost benefit analysis • Quality metrics
• Scope baseline •Benchmarking • Quality checklists
• Schedule baseline •Design of experiments • Project document estimate
•Cost of quality (COQ)
•Quality planning tools
•Control charts
•Statistical sampling
•Flow charting
•Quality Management
methodologies
174
COST BENEFIT ANALYSIS

 Costs:
 Training
 Surveys
 Studies
 Appraisal
 Design review
 Benefits:
 Less rework
 Higher productivity
 Lower costs
 Increased stakeholder satisfaction
175
BENCHMARKING

 Comparing actual/planned project’s practices to those

of other projects (internal or external).

176
DESIGN OF EXPERIEMENTS

 DOE
 Analytical technique that identifies the elements or
variables that will have impact on overall project
outcomes.
 Designs and sets up experiments to determine the ideal
solution for a problem utilizing a limited number of
sample cases.

177
COST OF QUALITY

 Consists of all costs on efforts to:

 Achieve product/service quality
 Ensure conformance to requirements
 Work resulting from nonconformance to
requirements
 Costs incurred:
 Preventive costs (quality planning, training)
 Appraisal costs (inspection, testing)
 Failure costs (cost of poor quality)
 Internal failure costs (corrective action, rework,
scraping, downtime)
 External costs: (inspection at customer’s site, returns,
recalls)
178
FLOW CHARTING

 Diagram that shows logical steps that must be

performed to accomplish an objective.
 Interrelation of system elements
 Cause & effect diagrams (ishikawa, fishbone)
 Process flow diagram (mapping) to assess the type and
area where quality problems may appear.

179
CONTROL CHARTS

 To determine process stability or predictable

performance.
 Upper & lower specifications are set based on the
requirements.
 A process is out of control when data point cross the
limits or seven consecutive points are above or below
the mean, although inside the control limits (rule of
seven)

180
STATISTICAL SAMPLING

 Involves choosing part of a population of interest for

inspection

181
QUALITY PLANNING TOOLS

 Brain storming
 Force field analysis
 Matrix diagram
 Nominal group techniques
 Affinity diagrams
 Prioritization techniques

182
QUALITY MANAGEMENT
METHODOLOGIES

 Six sigma
 Lean six sigma
 Quality function deployment
 CMMI (capability maturity model integration)
 TQM
 FMEA
 Kaizen

183
 PLAN QUALITY

 Process overview:

INPUTS TOOLS & OUTPUTS

TECHNIQUES
• EEF & OPA • Quality management plan
•Cost benefit analysis • Quality metrics
• Scope baseline •Benchmarking • Quality checklists
• Schedule baseline •Design of experiments • Project document estimate
•Cost of quality (COQ)
•Quality planning tools
•Control charts
•Statistical sampling
•Flow charting
•Quality Management
methodologies
184
QUALITY MANAGEMENT
PLAN
 Describes how the PM team will implement its quality
policy.
 Addresses QC, QA and continuous improvement for the
project.

185
QUALITY METRICS

 Examples:
 On time performance
 Budget control
 Defect frequency
 Failure rate

186
QUALITY CHECKLISTS

 Component specific, structured tool to verify a set of

required steps has been performed.

187
DEVELOP HR PLAN

 Process of :
 Defining project roles and responsibilities
 Required skills
 Project organization chart
 Reporting relationships
 Staffing management plan (time table for staff
acquisition & release, training needs, team
building strategies, rewards & recognition,
compliance, safety issues etc).
 OBS
 Responsibility assignment matrix (RAM): RACI
 Networking
188
PLAN COMMUNICATION

 What, how, when, whom to be communicated?

 To ensure smooth working and project success.
 Generation, collection, distribution, storage, retrieval
and ultimate disposition of project information.
 Project managers spend about 90% time in
communication.

189
COMMUNICATION

 Customer
 Sponsor
 Senior management
 Functional managers
 Team members
 Other project managers
 Regulatory authorities
 Media
 Society
 Interest specific groups/organization
 Stakeholders
190
COMMUNICATION

 Status
 Performance baselines
 Achievements & major milestones
 Problems
 Changes to scope, schedule, cost etc
 Adherence to standards & regulations
 New risk uncovered
 Team members performance
 Project phase deliverable’s acceptance

191
COMMUNICATION

 Status report
 Progress report
 Trend report
 Forecasting report
 Variance report
 EV analysis report

192
COMMUNICATION

 Methods:
 Interactive communication
 Push communication
 Pull communication

193
SENDER RECEIVER MODEL

 Develop idea Sender End

 Encode
 Transmit
 Receive
 Decode
 Accept
 Use
Receiver End
 Provide feedback

194
COMMUNICATION BARRIERS

 Personal:
 Human emotions
 Values
 Poor listening habits
 Difference in education, culture, sex,
socioeconomic status
 Physical:
 Distance
 Noise
 Walls
 Static that interferes with electronic messages

195