Building Professional in Project Management.

TM

MENA Chapter

PMI MENA CHAPTER

Chairman PMI MENA Chapter:
Dr. Gamal Nassar
gamal_nassar_cec @yahoo.com
Education & Certification : Eng. Suzanne Bedier
Tech. Manager (Mterial Development, Evaluation & Exams):
Eng. Amal Ismail

•Contact Adminstration :
7 Lebanon St, El-Mohandseen Giza
•zeinabmena@yahoo.com
TeleFax: +3461062 & 3461046
•Hamed_mena2000@yahoo.com Mob: +0127448007 & 0106986614

PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP

Time & Cost Planning

PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP

Slide
Slide No.2 No.2
 Scope
Scope Activity
Develop Definitio
Planning Definition
Project n
Managemen 5.1 6.1
5.2
t Plan
4.3 Activity
Create WBS Resources
5.3 Estimating
Risk 6.3
Develop
Project Manageme
nt Planning Activity
Charter Cost
11.1 Duration Acquire Perform
Estimating
4.1 Estimating Quality
7.1 Project
6.4 Team 9.2 Assurance
Risk 8.2
Identificatio
n11.2 Cost Direct and
Develop Activity
Preliminary budgeting Sequencing Manage Develop Information
Project 6.2 Project Project Distribution
Qualitative 7.2
Scope Execution Team 9.3 10.2
Statement Risk
Analysis Human 4.4
4.2 Schedule
11.3 Resource
Planning Developme Request Select
nt 6.5 Seller Sellers 12.4
9.1 Responses
Quantitativ
e Risk 12.3
Analysis Quality
11.4 Planning
8.1
Risk
Response Communicatio
Planning ns Planning
11.5
10.1

Plan Plan
Purchases Contracting Close
and 12.2 Project
Acquisitions
4.7
12.1

Monitoring and Controlling Integrated Change Contract

Project Work Control Closure
4.5 4.6 12.6

Scope Scope Schedule Perform Manage Performanc Mange Risk Contract

Control Control Cost Quality Project e Reporting Stakeholder Monitoring Administratio
Verification
Control 7.3 Control 8.3 Team 9.4 10.3 s 10.4 and Control n 12.5
5.4 5.5 6.6
11.6

PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
Time
PMP
PMP
PMP
PMP
PMP
Planning
PMP
PMP
PMP
PMP
PMP
PMP

Slide No.4
PMP
PMP
PMP
PMP
PMP
PMP
Activity Definition
PMP
PMP
PMP
PMP Activity Definition involves identifying
PMP
PMP
and documenting the specific activities
PMP
PMP
that must be performed to produce the
PMP deliverables and sub- deliverables
PMP
PMP identified in the Work Breakdown
PMP
PMP
Structure (WBS)
PMP
PMP
PMP
PMP
PMP

Slide No.5

PMP
PMP
PMP
PMP
PMP
PMP
Activity Sequencing
PMP
PMP
PMP Activity Sequencing involves
PMP
PMP identifying and documenting
PMP
PMP
interactivity logical relationships
PMP
PMP Activities must be sequenced
PMP
PMP accurately to support later
PMP
PMP development of a realistic and
PMP
PMP
achievable schedule.
PMP
PMP
PMP

Slide No.6
PMP
PMP
PMP
PMP
PMP
PMP
Activity Sequencing
PMP
PMP
PMP
z Mandatory dependencies (Hard logic) : are those that
PMP are inherent in the nature of the work begin done. They
PMP often involve physical limitations
PMP
PMP z Discretionary dependencies (Soft logic) : are defined
PMP
PMP
by the project management team. They should be used
PMP with care (and fully documented), since they may limit
PMP later scheduling options
PMP
PMP z External dependencies : are those that involve a
PMP
PMP
relationship between project activities and non- project
PMP activities
PMP
PMP

Slide No.7

PMP
PMP
PMP
PMP
PMP Arrow Diagramming Method (ADM)
PMP
PMP
PMP Arrow Diagramming Method (ADM) :
PMP
PMP This method of constructing a project
PMP network diagram is also called Activity-on-
PMP
PMP
Arrow (AOA) and, although less prevalent
PMP
than PDM, is still the technique of choice in
PMP some application areas
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP

Slide No.8
PMP
PMP
PMP
PMP
PMP
Precedence Diagramming Method
PMP (PDM)
PMP
PMP
z Precedence
PMP
PMP
Diagramming Method
PMP (PDM) : This is a
PMP
method of
PMP
PMP
constructing a project
PMP network diagram. This
PMP
technique is also
PMP
PMP
called activity-on-node
PMP (AON) and is the
PMP method used by most
PMP
PMP
project management
PMP software packages
PMP

Slide No.9

PMP
PMP
PMP
PMP
PMP
PMP
Dependencies Relationships
PMP
PMP Predecessor Successor
PMP FS12
Activity Activity
PMP (A) Finish-To-Start
(1) (2)
PMP
PMP
PMP Activity
(B) Start-To-Start (1)
PMP SS12 Activity
PMP (2)
PMP
PMP Activity FF12
(C) Finish-To-Finish
PMP (1)
PMP Activity
PMP
(2)

PMP
Activity
PMP (1)
(D) Start-To-Finish SF12
PMP
PMP Activity
(2)
Slide No.10
PMP
PMP
PMP
PMP
PMP
PMP
Activity Resource Estimating
PMP
PMP
PMP
PMP
Activity resource estimating involves
PMP
PMP determining what resources (persons,
PMP
PMP equipment, or material) and what
PMP
PMP
quantities of each resource will be used,
PMP
and when each resource will be available to
PMP
PMP perform project activities
PMP
PMP
PMP
PMP
PMP

Slide No.11

PMP
PMP
PMP
PMP
PMP
PMP
Organizational Process Assets
PMP
PMP
PMP
PMP
PMP Provide the polices of the performing
PMP
PMP organization regarding staffing and the rental
PMP
PMP
or purchase of supplies and equipment that
PMP are considered during activity resource
PMP
PMP estimating
PMP
PMP
PMP
PMP
PMP
PMP

Slide No.12
PMP
PMP
PMP
PMP
PMP
PMP
Activity Duration Estimating
PMP
PMP
PMP Activity Duration Estimating is the
PMP
PMP process of taking information on
PMP
PMP
project scope and resource and then
PMP
PMP
developing durations for input to
PMP schedules
PMP
PMP
PMP Estimating the number of work periods
PMP
PMP
required to complete an activity will
PMP
PMP
often require consideration of elapsed
PMP time
Slide No.13

PMP
PMP
PMP
PMP
PMP
PMP
Historical Information
PMP
PMP
PMP
Historical Information:
PMP
PMP Both the results of previous project, selection
PMP
PMP
decisions and previous project performance
PMP
PMP
Sources of historical information :
PMP
PMP z Project Files
PMP
PMP
PMP
z Commercial Duration estimating databases
PMP
PMP z Project team knowledge
PMP
PMP

Slide No.14
PMP
PMP
PMP
PMP
PMP
PMP
Analogous Estimating
PMP
PMP
PMP
Analogous Estimating : (Top- Down
PMP
PMP
estimating ) means using the actual
PMP duration of a previous, similar activity as
PMP
PMP the basis for estimating the duration of a
PMP
PMP future activity.
PMP
PMP
PMP
It is used when there is a limited amount of
PMP detailed information
PMP
PMP
PMP
PMP

Slide No.15

PMP
PMP
PMP
PMP
PMP
PMP
Quantitatively Based Durations
PMP
PMP
PMP The quantities to be performed for each
PMP
PMP specific work category
PMP
PMP
PMP
PMP
PMP
PMP
Expected Qty. for Activity A: 10 units
PMP
PMP Productivity unit rate: 2 day /
PMP
PMP unit
PMP
PMP
PMP
Total duration : 20 days
Slide No.16
PMP
PMP
PMP
PMP
PMP
PMP
Schedule Development
PMP
PMP
PMP Determining start and finish dates for
PMP
PMP
project activities.
PMP
PMP Analyzing activity sequences, activity
PMP
PMP durations, and resource requirements to
PMP
PMP
create the project schedule
PMP
PMP Must often be iterated prior to
PMP
PMP
determination of the project schedule.
PMP
PMP
PMP

Slide No.17

PMP
PMP
PMP
PMP
PMP
PMP
Constraints
PMP
PMP
PMP Constraints are factors that will limit the
PMP
PMP project management team’s options.
PMP
PMP
PMP
There are two major categories of time
PMP
PMP
constraints:
PMP
PMP zImposed dates
PMP

zKey events or major milestones

PMP
PMP
PMP
PMP
PMP

Slide No.18
PMP
PMP
PMP
PMP
PMP
PMP
Activity Attributes
PMP
PMP
PMP zResponsibility
PMP
PMP
PMP
zGeographic location
PMP
PMP
PMP
zActivity type (i.e., summary or
PMP detailed)
PMP
PMP
PMP Important for further selection and
PMP
PMP
sorting of the planned activities in a
PMP
PMP
convenient way for the users.
PMP

Slide No.19

PMP
PMP
PMP
PMP
PMP
PMP
GANTT CHARTS
PMP
PMP
PMP zACTIVITIES
PMP
PMP
PMP
zDURATION
PMP
PMP
PMP
zSTART
PMP
PMP zFINISH
PMP
PMP
PMP
PMP
PMP
PMP
PMP

Slide No.20
PMP
PMP
PMP
PMP
PMP TYPES OF GANTT (BAR) CHARTS
PMP
PMP
PMP
PMP
PMP • TYPE I
PMP
PMP
PMP
• TYPE II
PMP
PMP • TYPE III
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP

Slide No.21

PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP

Slide No.22
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP

Slide No.23

PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP

Slide No.24
PMP
PMP
PMP
PMP
PMP ADVANTAGES OF BAR CHARTS
PMP
PMP
PMP
PMP z Simple Graph
PMP
PMP
PMP
z Common Acceptance
PMP
PMP
PMP
z Broad Scheduling Tool
PMP
PMP z Less Revision And Updating
PMP
PMP
PMP
z Helpful In The Early Stages
PMP
PMP
PMP
PMP

Slide No.25

PMP
PMP
PMP
PMP
PMP DISADVANTAGES OF BAR CHARTS
PMP
PMP
PMP
PMP z Very Cumbersome As The Number
PMP
PMP Of Activities Increases
PMP
PMP
PMP
z Logic Is Not Expressed
PMP
PMP z Difficult To Forecast Changes
PMP
PMP Aftermath
PMP
PMP
PMP
PMP
PMP
PMP

Slide No.26
PMP
PMP
PMP
PMP
PMP
PMP
NETWORKS & CPM
PMP
PMP
PMP z Networks
PMP
PMP
PMP
z Activity On Arrow – AOA
PMP
PMP
PMP
z Activity On Node – AON
PMP (Precedence – Diagram – PDM)
PMP

z Logic
PMP
PMP
PMP
PMP
PMP
z Critical Path
PMP
PMP

Slide No.27

PMP
PMP
PMP
PMP
PMP LOGICAL RELATIONSHIPS (1)
PMP
PMP
PMP
PMP z Mandatory Dependency
PMP
PMP
PMP
z Discretionary Dependency
PMP
PMP
PMP
z External Dependencies
PMP
PMP z Assumptions & Constraints
PMP
PMP
PMP
PMP
PMP
PMP
PMP

Slide No.28
PMP
PMP
PMP
PMP
PMP LOGICAL RELATIONSHIPS (2)
PMP
PMP
PMP
PMP zSTART – TO- START
PMP
PMP
PMP
zSTART- TO – FINISH
PMP
PMP
PMP
zFINISH- TO- FINISH
PMP
PMP zLEAD
PMP
PMP
PMP
zLAG
PMP
PMP
PMP
PMP

Slide No.29

PMP
PMP
PMP
PMP
PMP FORWARD PASS
PMP
PMP
PMP
PMP
z ES (X) = FOR BEGINNING ACTIVITIES, OR
PMP
PMP z ES (X) = MAX (EF (ALL PREDECESSORS OF
PMP
PMP
ACTIVITY X))
PMP
PMP
z EF (X) = ES (X) + D (X)
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP

Slide No.30
PMP
PMP
PMP
PMP
PMP
PMP
BACKWARD PASS
PMP
PMP
PMP z LF (X) = T FOR ENDING ACTIVITIES, OR
PMP
PMP z LF (X) = Min (LS (ALL FOLLOWERS OF
PMP
PMP
ACTIVITY X))
PMP
PMP z LS (X) = LF(X) – D(X)
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP

Slide No.31

PMP
PMP
PMP

FLOATS
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
z TF (X) = LS(X) -ES (X) = LF (X) – EF (X)
PMP
PMP z FF (X) = MIN (ES (ALL IMMEDIATE
PMP
FOLLOWERS OF ACTIVITY X))- EF (X)
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP

Slide No.32
PMP
PMP
PMP
PMP
PMP
PMP
Critical Path Method (CPM)
PMP
PMP
PMP
z Critical Path Method
PMP (CPM) : calculates a
PMP
single, deterministic
PMP
PMP early and late start A
2
C
3
4
F
PMP and finish date for 1 3
E
6
PMP
PMP
each activity based 2
7 6

PMP on specified, B
5
5 G
PMP
PMP
sequential network 3 5
D
PMP logic and a single
PMP
PMP
duration estimate.
PMP
PMP

Slide No.33

PMP
PMP
PMP
PMP CPM Exercise – Making
PMP
PMP
Wheelbarrows
PMP
Establish and
PMP Establish
monitor vendor
PMP vendor specs
contracts
PMP du=2
du=5
PMP
PMP Perform
Secure
PMP SS Final
Hardware
PMP start Assembly
du=1
PMP du=2
PMP
PMP Prepare
PMP detail shop Fabricate
PMP drawings Wheel
PMP du=3 Components
PMP du=2
PMP Assemble
PMP
ES EF
Handles and
PMP Legs
SS Key
Slide No.34 du=2
PMP
PMP
PMP
PMP
PMP
The Forward Pass
PMP
0 2 2 7
PMP
PMP Establish and
Establish
PMP monitor vendor
vendor specs
PMP
contracts
du=2
du=5
PMP 3 4 7 9
PMP
Perform
PMP Secure
SS Final
PMP
Hardware
start Assembly
du=1
PMP du=2
PMP
0 3
PMP
Prepare
3 5
PMP
detail shop Fabricate
PMP drawings Wheel
PMP du=3 Components ES EF
PMP du=2
PMP
3 5 Key
Assemble
PMP
Handles and
PMP
SS Legs
Slide No.35 du=2

PMP
PMP
PMP
PMP
PMP
The Backward Pass
PMP 0 2 2 7
PMP
Establish and
PMP Establish
monitor vendor
PMP vendor specs
contracts
PMP du=2
du=5
PMP
3 4 7 9
0 2 2 7
PMP Perform
Secure
PMP SS Final
Hardware
PMP start Assembly
du=1
PMP
du=2
PMP 0 3 6 7 7 9
PMP Prepare
3 5
PMP detail shop Fabricate
PMP drawings Wheel
PMP du=3 Components ES EF
du=2 3 5
PMP 5 Assemble
PMP 5 7 Key
Handles and
PMP Legs LS LF
PMP du=2
SS
Slide No.36 5 7
PMP
PMP
PMP
PMP
PMP
Total Float Calculations
PMP 0 2 2 7
PMP Establish and
PMP
Establish
monitor vendor
vendor specs
PMP contracts
du=2
PMP du=5
3 4 7 9
PMP 0 2 2 0 7
PMP
0 Secure Perform
SS Hardware Final
PMP
start du=1 Assembly
PMP
du=2
PMP
0 3 6 7 7 9
PMP 3 0
Prepare 3 5
PMP
detail shop Fabricate
PMP
drawings Wheel
PMP
du=3 Components ES EF
PMP 3 5
du=2
PMP 2 5 Assemble Key
2 5 2 7 Handles and
PMP
PMP
Legs LS LF
SS du=2 TF
PMP

Slide No.37 5 2 7

PMP
PMP
PMP
PMP
PMP
The Critical Path
PMP
PMP Establish and
PMP
Establish
monitor vendor
vendor specs
PMP contracts
du=2
PMP du=5
3 4 7
PMP 0 2 2 0 7
PMP
0 Secure Perform
SS Hardware Final
PMP
start du=1 Assembly
PMP
du=2
PMP
0 3 6 7 7 9
PMP 3 0
Prepare 3 5
PMP
detail shop Fabricate
PMP
drawings Wheel
PMP
du=3 Components ES EF
PMP 3 5
du=2
PMP 2 5 Assemble Key
2 5 2 7 Handles and
PMP
PMP
Legs
SS du=2
PMP

Slide No.38 5 2 7
PMP
PMP
PMP
PMP
PMP
Critical Path Exercise
PMP
PMP
PMP B,4
PMP
PMP
A, 3 G,2
PMP
PMP
C,8 D,1
PMP
PMP
E,4 F,3
PMP
PMP
PMP
PMP 1. What is the critical path?
PMP
PMP
PMP
PMP
2. How many days can activity ‘F’ slip
PMP
PMP
without extending the project end date?
Slide No.39

PMP
PMP
PMP
PMP
PMP
Critical Path Exercise
PMP
PMP B,4
PMP
PMP A, 3 G,2
PMP
PMP
C,8 D,1
PMP
PMP
E,4 F,3
PMP
PMP
PMP
PMP 1. What is the critical path? C-G
PMP
PMP
PMP
PMP
2. How many days can activity ‘F’ slip
PMP
PMP
without extending the project end date?
PMP

Slide No.40
PMP
PMP
PMP
PMP Program Evaluation and Review
PMP
PMP Technique (PERT)
PMP
PMP
PMP z Program Evaluation and Review
PMP
PMP Technique (PERT) : uses a weighted
PMP
PMP average duration estimate to calculate activity
PMP
PMP durations.
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP

Slide No.41

PMP
PMP
PMP
PMP
PMP
PERT Calculations
PMP
PMP
PMP z The Optimistic Time (a) :
PMP
PMP Expected
(t e) Pessimistic
PMP
z The Most Likely Time (m): Optimistic
(a)
(b)

PMP
Probability of time

PMP Most
Likely
(m)
PMP Beta

PMP z The Pessimistic Time (b): Distribution

PMP
PMP
PMP
Activity duration time
PMP
PMP
PMP Expected Time = (a + 4*m + b) / 6
PMP
PMP Standard Deviation = (b – a) / 6
PMP

Slide No.42
PMP
PMP
PMP
PMP
PMP
Calculations of PERT PROABILITIES
PMP
PMP
PMP
PMP
z TIME ESTIMATE
PMP
PMP
PMP Te= a + 4m + b
PMP
PMP 6
PMP
PMP
PMP
PMP
PMP
– a = OPTIMISTIC
PMP
PMP
– m= MOST LIKEY
PMP
PMP
– b = PESSIMISTIC
PMP

Slide No.43

PMP
PMP
PMP
PMP
Calculations of PERT PROABILITIES
PMP cont.
PMP
PMP
PMP
PMP z TIME VARIANCE
PMP
PMP
σ=b–a
PMP
PMP
V = σ2
PMP
6
PMP
PMP
PMP
PMP
ƒ a = OPTIMISTIC
PMP ƒ b = PESSIMISTIC
PMP
PMP
PMP
PMP
PMP

Slide No.44
PMP
PMP
PMP
PMP
PMP Normal Distribution
PMP
PMP Statistically measures variability - commonly used in
PMP
quality control
-1σ +1 σ
PMP
PMP
PMP
PMP
PMP -2 σ +2 σ
PMP
PMP -3σ Te, Project +3 σ
PMP
Duration
PMP
PMP
PMP 68.26%
PMP 95.46%
PMP
99.73%
PMP
PMP LCL UCL
PMP

Slide No.45

PMP
PMP
PMP
PMP
PERT Calculations
-1σ +1 σ
PMP
PMP
PMP
PMP
PMP -2 σ +2 σ
PMP
PMP -3σ Te, Project +3 σ
PMP Duration
PMP
PMP
PMP 50%
PMP
84.13%
97.73%
PMP 99.86%
PMP
PMP
Project Start Date
PMP
PMP • Normal Distribution:
PMP
PMP ¾ 50% chance - using expected time durations (Te, )
¾ 84% chance - (Te, ) + 1 σ , etc
PMP

Slide No.46
PMP
PMP
PMP
PMP PERT Example
PMP
PMP Expected Project Duration: 12.33 days
PMP
A B
PMP Standard Deviation of Critical Path: .8988
PMP
PMP
PMP
C D
PMP
PMP
Time, Days PERT Task
Activity
PMP OptimisticMost Likely Pessimistic Expected Variance
PMP
PMP A 2 4 6 4 .45
PMP
PMP
PMP
B 2 3 5 3.33 .25
PMP
PMP C 4 7 10 7 1
PMP
PMP D 4 5 6 5 .11
PMP

Slide No.47

PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP

Slide
Slide No.48 No.48
PMP
PMP
PMP
PMP
PMP Duration Compression
PMP
PMP
PMP
PMP Duration Compression includes techniques
PMP
PMP Such as:
PMP
PMP – Crashing: Cost and schedule tradeoffs are analyzed
PMP to determine how to obtain the greatest amount of
PMP
PMP
compression for the least incremental cost
PMP
PMP
– Fast tracking: doing activities in parallel that would
PMP normally be done in sequence. Fast tracking often
PMP results in rework and usually increases risk.
PMP
PMP
PMP
PMP

Slide No.49

PMP
PMP
PMP
PMP
PMP
Crashing Activities
PMP
PMP
PMP
PMP
– Multiple-shift work
PMP
PMP
– Extended workdays
PMP
PMP
– Using more productive equipment
PMP
PMP
– Increasing the number of craftspeople
PMP
PMP
– Using materials with faster installation
PMP
PMP
– Using alternate methods
PMP
PMP
PMP
PMP
PMP

Slide No.50
PMP
PMP
PMP
PMP
PMP
LINEAR DURATION-COST RELATION
PMP
PMP
PMP
PMP S = CC – NC
PMP
PMP
PMP
ND - CD
PMP
PMP
– CC = Crash Cost
PMP
PMP
– NC = Normal Cost
PMP
PMP
– ND = Normal Duration
PMP
PMP
– CD = Crash Duration
PMP
PMP
–S = Slope
PMP
PMP

Slide No.51

PMP
PMP
PMP
PMP
PMP
RESOURCE ALLOCATION
PMP
PMP
PMP
PMP – RESOURCE ESTIMATE
PMP
PMP
PMP
– RESOURCE LEVELING
PMP
PMP
PMP
– RESOURCE- RESTRAINED
PMP SCHEDULING
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP

Slide No.52
PMP
PMP
PMP
PMP
PMP RESOURCE LOADING
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP

Slide No.53

PMP
PMP
PMP
PMP
PMP
TIME SCALED RESOURCE LOADING
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP

Slide No.54
PMP
PMP
PMP
PMP
PMP TRIAL & ERROR METHOD
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP

Slide No.55

PMP
PMP
PMP
PMP
PMP EXAMPLE (2)
PMP
PMP
PMP Activity Earliest start Total Float Duration Resources
PMP
PMP 1-2 0 0 2 2
PMP
PMP 2-3 2 0 6 4
PMP
PMP
PMP
2-4 2 6 3 3
PMP
PMP
3-5 8 0 6 3
PMP
PMP
3-4 8 2 1 1
PMP
PMP
4-5 9 2 3 3
PMP
PMP
5-6 14 0 2 2
PMP

Slide No.56
PMP
PMP
PMP
PMP
PMP
PMP
EXAMPLE (2) cont.
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP

Slide No.57

PMP
PMP
PMP
PMP
PMP
EXAMPLE (2) cont.
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP

Slide No.58
PMP
PMP
PMP
PMP
PMP
PMP
EXAMPLE (2) cont.
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP

Slide No.59

PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
Schedule
PMP Develop
PMP
PMP
ment
PMP Output
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP

Slide No.60
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP

Cost
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP

Slide No.61

PMP
PMP
PMP
PMP
PMP
TOTAL PROJECT COST
PMP
PMP
PMP A cost can be either variable or fixed:
PMP
– Variable Cost – Any cost that changes with the amount of
PMP
PMP
production or the amount of work. Examples include the cost
PMP of material, supplier and wages.
PMP
– Fixed Cost – Costs that do not change as production
PMP
changes. Examples include setup, rental, etc.
PMP
PMP – Direct Cost – Costs that are directly attributable to the work
PMP
on the project. Examples are team travel, team wages,
PMP
recognition and costs of material used on the project.
PMP
PMP – Indirect Costs – Overhead items or costs incurred for the
PMP benefit of more then one project. Examples include taxes,
PMP fringe benefits and janitorial services.
PMP
PMP

Slide No.62
PMP
PMP
PMP
PMP
PMP
TOTAL PROJECT COST
PMP
PMP z Life Cycle Costing: This is an interesting concept that slips the
PMP
exam every once in a while. The project we are working on has a life
PMP
after is completed. The project manager and the company want the
PMP
PMP
project costs to be as low as possible. However, if the project manager
PMP
does not consider the life cycle costs, project costs may be low at the
PMP expenses of greater overall costs for the rest of the life of the project –
PMP the operations and maintenance phase. By including this concept on the
PMP exam, PMI ® is effectively warning us that we should look at manage life
PMP cycle costs instead of just project costs.
PMP
PMP z Value Analysis: (Sometimes referred to as value engineering in the
PMP real world.) find a less costly way to do the some scope of work. It
PMP
requires the systematic use of techniques to identify the required project
PMP
functions, assign values to these functions and provide functions at the
PMP
PMP
lowest overall cost without loss of performance. If a team or someone
PMP
else is looking st decreasing project cost but maintaining the same
scope of work, they are performing value analysis.
Slide No.63

PMP
PMP
PMP
PMP
PMP TOTAL PROJECT COST
PMP
PMP
PMP
PMP
PMP
PMP
PMP
– DIRECT COST
PMP
PMP
PMP
– INDIRECT COST
PMP
PMP – TOTAL = DIRECT + INDIRECT
PMP
PMP
PMP
PMP
PMP
PMP
PMP

Slide No.64
PMP
PMP
PMP
PMP
PMP Cost Estimating
PMP
PMP
PMP z Process of developing an estimate for the cost
PMP
PMP
of the resources necessary to complete the
PMP project activities
PMP
PMP – Difference between cost estimating and pricing:
PMP
PMP • Cost Estimating: Assessing how much it will cost
PMP the organization to provide the product or
PMP
service.
PMP
PMP
• Pricing: Assessing how much the organization
PMP
PMP
will charge for the product or service.
PMP
PMP
– Cost estimating also includes identifying and
PMP considering cost alternatives.
Slide No.65

PMP
PMP
PMP
PMP
PMP Cost Estimating
PMP
PMP
PMP
z Analogous estimating (Expert judgment) – used to
PMP
estimate total project costs if there is a limited
PMP amount of detailed information.
PMP
PMP z Parametric modeling – Using project characteristics
PMP (or parameters) in a mathematical model to predict
PMP costs (e.g., price per square foot)
PMP
PMP z Bottom-up estimating – Estimating the cost of
PMP individual work items and then rolling up the costs to
PMP
arrive at a project total.
PMP
PMP z Computerized tools – PM software and Spreadsheets
PMP
PMP
PMP
PMP

Slide No.66
PMP
PMP
PMP
PMP
PMP
Cost Budgeting
PMP
PMP
PMP
PMP zAllocating the overall cost estimate to
PMP
PMP individual activities or work packages,
PMP
PMP
in order to establish a cost baseline
PMP
PMP
for measuring project performance
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP

Slide No.67

PMP
PMP
PMP
PMP
PMP
PMP
Cost Baseline
PMP
PMP
zCost baseline – Time phased budget
PMP
PMP
that will be used to measure and
PMP monitor the cost performance of the
PMP
PMP project 140
PMP
PMP 120
PMP 100
BCW S ($K)

PMP 80
PMP
60
PMP
40
PMP
20
PMP
PMP 0
PMP Jan Feb Mar Apr May Jun
PMP Reporting Period
Slide No.68
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP Thank You & Good Luck
PMP
PMP
PMI MENA Chapter
PMP
2008
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP
PMP

Slide No.69