Principles of Project Management

Presented By: Hisham Rafik, MBA, PMP

Course Outline
1. Project Management Framework
2. Project Initiation
3. Project Planning - Scope Definition
4. Project Planning - Schedule Development
5. Project Planning - Risk Management
6. Project Planning - Budgeting

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 Section Four

Project Planning
Schedule Development

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Project Planning Process

Scope Definition

Schedule Development

Risk Management Plan

Budgeting

Plan Compilation and Approvals

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Project Planning Process
Schedule development

1. Activity Definition
Convert work packages to manageable tasks Æ project activities
2. Activity Sequencing
Sequence and link the tasks and milestones Æ PERT chart (Network
Diagram)
3. Activity Resource Estimating:
Identify the resources available and Assign Responsibility for each
task (or group of tasks) Æ Responsibility Assignment Matrix
4. Activity Duration Estimating:
Estimate the Duration for each activity Æ Activity Duration
Estimates
5. Schedule Development:
Calculate the Critical Path and Develop project schedule Æ GANTT
Chart

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 Project Time Management
1. Activity Definition

… Identifying and documenting the work that is planned to be

performed.

… Identifying the deliverables at the lowest level in the WBS

(work package)

… Project work packages are decomposed into smaller

component called schedule activity to provide a basis for
estimating, scheduling, executing, monitoring and controlling
the project works.

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 Project Time Management
Activity Definition

Inputs Tools Outputs

1. Enterprise &Techniques 1. Activity List
environmental
1. Decomposition 2. Activity
factors
attributes
2. Templates
2. Organizational 3. Milestone list
process assets 3. Rolling wave
planning 4. Requested
3. Project scope changes
4. Expert judgment
statement
5. Planning
4. WBS component
5. WBS dictionary
6. Project
management plan
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 Project Time Management
Activity Definition, Tools & Tech

1. Decomposition
Subdividing project work package into smaller, more
manageable components called schedule activities.
2. Templates
A standard activity list or a portion of an activity list from a
previous project. It can also contain a list of resource
skills and their required hours of effort, identification of
risks, expected deliverables, and other descriptive
information.

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Project Time Management
Activity Definition, Tools & Tech
3. Rolling wave planning
Rolling wave planning is a form of progressive
elaboration planning, where the work to be
accomplished in the near term is planned in detail at
the low level of the WBS, while work far in the
future is planned for WBS component that are at a
relatively high level of the WBS.

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Milestones
… Milestones are zero duration activities that show key events
in the project:
† Project/Phase Start and Completion points
† Financial payments due date
† Key approval points
„ Design submitted/approved
† Completion of project deliverables
„ Ready for Acceptance (RFA)
„ Provisional Acceptance Certificate (PAC)
„ Final Acceptance Certificate (FAC)
† Equipment/Sites handover points
„ Site Ready For Installation (RFI)
„ Equipment shipped/delivered to handover point
„ Equipment custom cleared

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Project Time Management
Activity Definition, Outputs
1. Activity List
2. Activity attributes
Includes the activity identifier, codes, description,
predecessor, successor, logical relationship, .leads & lags,
resource requirements, imposed dates, constraints and
assumptions.
3. Milestone list
Identifies all milestones and indicates whether the
milestones is mandatory or optional.
4. Requested changes

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Project Time Management
2. Activity Sequencing
… Activity sequencing involves identifying and
documenting the logical relationships among
schedule activities.

… Sequencing can be performed by using project

management software or by using manual

technique.

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 Project Time Management
Activity Sequencing

Inputs Tools &Techniques Outputs

1. Precedence 1. Project
1. Project scope
Diagramming schedule
statement network
Method (PDM)
2. Activity List diagrams
2. Arrow
3. Activity Diagramming 2. Activity List
Method (ADM) (Updates)
attributes
3. Schedule network 3. Activity
4. Milestone list attributes
templates
5. Approved (Updates)
4. Dependency
change requests determination 4. Requested
changes
5. Applying leads
and lags

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The Network Diagram (PERT Chart)

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Guidelines for Developing
a Network Diagram
… Don’t worry about time estimates or drawing the
network diagram to scale. Concentrate on the
relationships.
… Make sure there is only one Start box and one End
box.
… Every task must connect to another task or to the
start or end of the project
† Avoid Dangling activities
… Indicate key milestones in this network diagram
… Remember that this is a communication tool; it
must be clear to all who use it.

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 Dependency determination

1. Mandatory dependencies (Hard Logic)

„ Are those that are inherent in the nature of the work being
done. They often involve physical limitations.

2. Discretionary dependencies (Soft Logic)

„ Are defined by the project management team. They should be
used with care (and fully documented), since they may limit
later scheduling options.

3. External dependencies
„ Are those that involve a relationship between project
activities and non-project activities.
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 Dependencies Relationships

Predecessor Successor
… (A) Finish-To-Start
Activity A Activity B
… (B) Start-To Start
Activity A
Activity B

… (C) Finish-To-Finish
Activity A
Activity B
… (D) Start-To-Finish
Activity A

Activity B
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 Applying leads and lags
Finished to start
- Activity (A) must finish
1 2 3 4 5 6 7 8 9 10
before (B) can start

A (du = 4) FS 0
Finished to start (FS + 3wks lag)
- Activity (A) Must be finished for
3 weeks before (B) can start B (du=3)
- The start of activity (B) lags
the finish of (A) by 3 week A (du = 4)
- The finish of A leads the start FS+3
of B by 3 weeks
B (du=3)
Finished to start (FS - 3wks lag)
- Activity (B) can start three weeks prior to
A (du = 4)
the finish of (A) .
FS-3
- The start of activity (B) leads the
projected finish of (A) by 3 weeks B (du=3)
- The finish of (A) lags the start
of (B) by 3 weeks
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 Project Time Management
3. Activity Resource Estimating
… Estimating schedule activity resource involves determining
what resources (persons, equipment, or material) and what
quantities of each resource will be used, and when each
resource will be available to perform project activities.

… The activity resource estimating process is closely

coordinated with the cost estimating process.

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Project Time Management
Activity Resource Estimating
Inputs Tools Outputs
1. Enterprise
&Techniques 1. Activity resource
environmental 1. Expert requirements
factors judgment 2. Activity
2. Organizationa 2. Alternatives attributes
l process analysis (Updates)
assets
3. Published 3. Resource
3. Activity list estimating breakdown
data structure
4. Activity
attributes 4. Project 4. Resource
management calendar
5. Resource software (updates)
availability
5. Bottom-up 5. Requested
6. Project estimating changes
management
plan

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Activity Resource Planning
1. Identify all needed/available resources for
the project:
† Manpower
† Machines
† Material
† Money

2. Resource Allocation
† Assign the resources needed to each activity
† We can use the Responsibility Assignment Matrix
to document this allocation

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Responsibility Assignment Matrix

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Project Time Management
4. Activity Duration Estimating
… The process of estimating schedule activity
durations uses information on schedule activity
scope of work, required resource types, estimate
resource quantities, and resource calendars with
resource availabilities.
… Estimating the number of work periods required
to complete an activity.

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Project Time Management
Activity Duration Estimating
Inputs Tools Outputs
1. Enterprise environmental
&Techniques 1. Activity
factors
2. Organizational process 1. Expert Judgment duration
assets Estimates
2. Analogous
3. Project Scope Statement 2. Activity
Estimating
4. Activity list attributes
5. Activity attributes 3. Parametric (Updates)
6. Activity Resource Estimating
Requirements
4. Three point
7. Resource Calendar
Estimating
8. Project management plan
• Risk Register 5. Reserve Analysis
• Activity Cost
Estimates

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Activity Duration Estimation
… Activity duration estimation depends on:
† Number of resources assigned
† Capability of those resources to do the work

… The person responsible for the activity should provide its

duration estimate

… Techniques for Estimation

† Expert judgment
† Analogous Estimating: Top-Down
† Parametric Estimating: Quantitatively based duration
† 3 point Estimating

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 Project Time Management
Activity Duration Estimating, Tools & Tech
1. Analogous Estimating (Top-Down estimating)
† Means using the actual duration of a previous, similar
activity as the basis for estimating the duration of a
future activity. It is frequently used to estimate
project duration when there is a limited amount of
detailed information about the project (e.g., in the early
phases)

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Project Time Management
Activity Duration Estimating, Tools & Tech
2. Parametric Estimating
… Determined by multiplying the quantity of work to be
performed by the productivity rate. (i.e., meter of cables,
tons of steel, number of drawings, etc.)

Expected Qty. for Activity A: 10 units

Productivity unit rate: 2 day / unit

Total duration: 20 days

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Project Time Management
Activity Duration Estimating, Tools & Tech
3. Three point Estimating
† Most Likely
† Optimistic:- Based on a best scenario
† Pessimistic:- Based on a worst scenario

4. Reserve Analysis
Additional time frame, called reserve, buffer, or
contingency, that can be added to the activity duration
or elsewhere in the schedule as recognition of schedule
risk.

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Activity Duration Estimates
Three point estimating

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Activity Duration Estimates
Three point estimating
… The Optimistic Time (O)
Is the minimum time an activity could take (the situation, where every
thing goes well)
… The Most Likely Time (M)
Is the normal time to complete the job. It is the time would occur
most frequently if the activity could be repeated.
… The Pessimistic Time (P)
Is the maximum time an activity could take (the situation, where bad
luck is encountered at every step)
… Expected Time = (O+ 4*M +P) /6
… Standard Deviation = (P – O) / 6

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Project Time Management
5. Schedule Development
… Schedule development means determining planned
start and finish dates for project activities.
… Schedule Development analyzing activity
sequences, activity durations, and resource
requirements to create the project schedule.
… The schedule development process must often be
iterated prior to determination of the project
schedule.

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 Project Time Management
Schedule Development
Inputs Tools &Techniques Outputs
1. Organizational process 1. Schedule Network 1. Project Schedule
assets Analysis
2. Project Scope 2. Critical Path 2. Schedule Model data
Methods
Statement
3. Schedule
3. Activity list Compression 3. Schedule Baseline
4. Activity attributes 4. What-if Scenario
5. Project Schedule Analysis 4. Resource Requirements
5. Resource Leveling (updates)
• Network
diagram 6. Critical Chain
Method 5. Activity attributes
6. Activity Resource (updates)
Requirements 7. Project
Management 6. Project Calendars
7. Resource Calendar Software (updates)
8. Activity duration 8. Applying Calendars 7. Requested Changes
Estimates 9. Adjusting Leads and
Lags 8. Project Management Plan
9. Project management (updates)
plan 10. Schedule Model
- Schedule Management
• Risk Register plan

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Critical Path Analysis (CPA)
… Forward path Æ Project Duration
… Backward path Æ Critical path and
activity Float

… Critical path = the longest continuous

sequence of tasks in a network
… Float (Slack) = the maximum allowance
for delay in an activity

… Failures on the critical path are very

serious, and will impact the delivery date
… As the project progresses, the critical
path may change as a function of actual
task performance; delays in non-critical
path activities might make them critical
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Project Time Management
Schedule Development, Outputs
1. Project Schedule
• Project network diagram
• Bar chart (Gantt chart)

Activity A

Activity B

Activity C

Activity D

Jun Jul Aug Sep Oct Nov

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Project Schedule (GANTT Chart)
… Activity GANTT chart is used to:
† Show project plan (all activities and milestones) on a time
scale
„ What we are supposed to be doing at any moment of time
† Report detailed project progress/status to project manager
and project team
„ Where do we exactly stand now on all activities and milestones

… Milestones Chart/Table
† Similar to bar chart, but only identify the scheduled start or
completion of major deliverables.
„ Financials, Approvals, Deliverables, handover points
† Report progress to Management and Customer

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Project Time Management
Schedule Development, Outputs
2. Schedule Model Data
† Supporting data for the project schedule includes at
least the schedule milestones, schedule activities,
activity attributes and documentation of all identified
assumptions and constraints.

3. Schedule Baseline
† Is the accepted and approved version of the project
schedule.

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Schedule Compression
… Shortens the project schedule without changing the project
scope, to meet schedule constraints, imposed dates, or other
schedule objectives.

… Focus on tasks on the critical (and near critical) path and

seek ways to shorten

… Methods for schedule Compression

† Crashing
† Fast tracking

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Schedule Compression
… Crashing:
† Cost and schedule tradeoffs are analyzed
to determine how to obtain the greatest
amount of compression for the least
incremental cost.
† Focus on shortening the duration of critical
path tasks
† Normally involves More cost
† Examples:
„ Increase number of work days/hours
„ Shorten tasks
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for ofwhich
Principles you have available
Project Management 38

resources
Schedule Compression
… Fast Tracking:

† Doing activities in parallel that would normally

be done in sequence.
„ Re-plan serial paths to be in parallel
„ Overlap sequential tasks

† Fast tracking often results in rework and

usually increases risk.
„ Fast-tracking Æ More risk

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 Project Time Management
Schedule Development
B
A
C D
Activity Optimistic Most Pessimistic Expected Standard Variance
likely duration Deviation
(O+ 4*M +P) (P – O)

6 6

A 2 4 6 4 0.67 0.44
B 3 5 7 5 0.67 0.44
C 4 7 10 7 1 1
D 4 5 6 5 0.33 0.11

Expected Project duration = 14

Project duration, standard deviation = 0.44 + 0.44 + 0.11 = 1.00

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 Project Time Management
Schedule Development

Crashing Cost B
A
C D

Activity Normal Crash Normal cost $ Crash cost $ Crash cost /

duration duration day

A 4 2 6000 8000 1000

B 5 4 5000 5750 750

C 7 6 8000 8500 500

D 5 4 6000 8000 2000

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Activity Resource Planning
1. Identify all needed/available resources for the project:

2. Resource Allocation

3. Resource Utilization
† Draw the resource Histogram that shows the total
number of resources needed during each time period of
the project
4. Resource leveling
† Smoothen the use resources across the project total
duration to ensure that resources needed (shown on the
histogram) do not exceed resources available (as per list
of identified resources)

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 Resource Leveling

300 Resource Histogram

275
250
225
Resource Usage

200
175
Senior Designers
150
125
100
75
50
25
0
9 16 23 30 6 13 20 27 6 13 20 27 3 10 17 24 1 8 15 22
Jan Feb Mar Apr May

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Resource Leveling (Over-allocation)
… Tasks can be shifted or extended within their
float.
… Use overtime to meet the demand
… Use of temporary help
… Contract out a portion of the workload
… Increase the size of the resource pool
permanently.
… Select a portion of the workload to be delayed
beyond its approved completion date (Nice-to-
have).

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Resource Leveling
(Under-allocation)
… Tasks can be moved within their float to take
advantage of the resource pool’s available time.
… Overtime can be eliminated
… Management can consider reducing the size of the
resource pool
… Low-priority work can be moved up in the
organization’s schedule
… Use these periods to develop new methods for the
cost-effective performance of the work of the
resource pool.
… Cross-train staff during these periods.

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Schedule Development Outputs
Schedule Baseline
† Is the accepted and approved version of
the project schedule.
„ GANTT Chart
„ Milestone Chart (or table)
„ Network Diagram
„ Resource Histograms

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Project Planning Process
Schedule development

1. Activity Definition
Convert work packages to manageable tasks Æ project activities
2. Activity Sequencing
Sequence and link the tasks and milestones Æ PERT chart (Network
Diagram)
3. Activity Resource Estimating:
Identify the resources available and Assign Responsibility for each
task (or group of tasks) Æ Responsibility Assignment Matrix
4. Activity Duration Estimating:
Estimate the Duration for each activity Æ Activity Duration
Estimates
5. Schedule Development:
Calculate the Critical Path and Develop project schedule Æ GANTT
Chart

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