Larson8e CH06 PowerPoint-merged

Because learning changes everything.
Chapter Six
Developing a Project
Schedule
© 2021 McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom.
No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.
Where We Are Now
© McGraw-Hill Education 2
Learning Objectives
06-01 Understand the linkage between WBS and the project network.
06-02 Diagram a project network using AON methods.
06-03 Calculate early, late, and slack activity times.
06-04 Identify and understand the importance of managing the critical
path.
06-05 Distinguish free slack from total slack.
06-06 Demonstrate understanding and application of lags in
compressing projects or constraining the start or finish of an
activity.
Chapter Outline
6.1 Developing the Project Network

6.2 From Work Package to Network
6.3 Constructing a Project Network
6.4 Activity-on-Node (AON) Fundamentals
6.5 Network Computation Process
6.6 Using the Forward and Backward Pass Information
6.7 Level of Detail for Activities
6.8 Practical Considerations
6.9 Extended Network Techniques to Come Closer to Reality
6.1 Developing the Project Network
The Project Network Defined

- Is a graphic flow chart depicting the project activities that must be
completed, the logical sequences, the interdependencies of the activities
to be completed, and the times for the activities to start and finish along
with the longest path(s) through the network—the critical path.
- Provides the basis for scheduling labor and equipment.
- Enhances communication among project stakeholders.
- Provides an estimate of project duration.
- Provides the basis for budgeting the cash flow.
- Identifies which activities are “critical” and should not be delayed.
- Highlights which activities to consider for compressing the project duration.
- Helps managers get and stay on the project plan.
6.2 From Work Package to Network
© McGraw-Hill Education FIGURE 6.1 6

6.3 Constructing a Project Network
Terminology
- Activity: an element of the project that requires time but may not require
resources
- Parallel activities: activities that can take place at the same time, if
desired.
- Burst activity: an activity that has more than one activity immediately
following it (more that one dependency arrow flowing from it)
- Merge activity: an activity that has more than one activity immediately
preceding it (more than one dependency arrow flowing to it)
- Path: a sequence of connected, dependent activities
- Critical path: the path with the longest duration through the network
Two approaches
- Activity-on-Node (AON) uses a node to depict an activity.
- Activity-on-Arrow (AOA) uses an arrow to depict an activity.
Basic Rules to Follow in Developing Project Networks
1. Networks flow typically from left to right.

2. An activity cannot begin until all preceding connected activities have
been completed.
3. Arrows on networks indicate precedent and flow and can cross over
each other.
4. Each activity should have a unique identification number.
5. An activity identification number must be greater than that of any
activities that precede it.
6. Looping is not allowed.
7. Conditional statements are not allowed.
8. Where there are multiple starts, a common start node can be used to
indicate a clear project beginning on the network. Similarly, a single
project end node can be used to indicate a clear ending.
6.4 Activity-on-Node (AON) Fundamentals

Network Information (Automated Warehouse)
© McGraw-Hill Education TABLE 6.1 10

Automated Warehouse—Partial Network

Automated Warehouse—Completed Network

6.5 Network Computation Process
Forward Pass—Earliest Times

• How soon can the activity start? (early start—ES)
• How soon can the activity finish? (early finish—EF)
• How soon can the project finish? (expected time—TE)
Backward Pass—Latest Times
• How late can the activity start? (late start—LS)
• How late can the activity finish? (late finish—LF)
• Which activities represent the critical path? (critical path—CP)
• How long can the activity be delayed? (slack or float—SL)
Network Information (Automated Warehouse)

Activity-on-Node Network

Activity-on-Node Network Forward Pass

Forward Pass Computation
• Add activity times along each path in the network (ES + Duration =
EF).
• Carry the early finish (EF) to the next activity where it becomes its
early start (ES) unless…
• The next succeeding activity is a merge activity, in which case the
largest early finish (EF) number of all its immediate predecessor
activities is selected.
Activity-on-Node Network Backward Pass

Backward Pass Computation
• Subtract activity times along each path starting with the project end
activity (LF – Duration = LS).
• Carry the late start (LS) to the next preceding activity where it
becomes its late finish (LF) unless…
• The next succeeding activity is a burst activity, in which case the
smallest late start (LS) number of all its immediate successor activities
is selected.
Forward and Backward Pass Completed with Slack Times

Determining Slack (or Float) Times
Total Slack
• Tells us the amount of time an activity can be delayed and not delayed the project.
• Is how long an activity can exceed its early finish date without affecting the project
end date or an imposed completion date.
• Is simply the difference between the LS and ES (LS – ES = SL) or between LF and
EF (LF – EF = SL).
Free Slack
• Is the amount of time an activity can be delayed without delaying any immediately
following (successor) activity.
• Is how long an activity can exceed its early finish date without affecting the early
start dates of any successor(s).
• Allows flexibility in scheduling scarce resources.
• Occurs only activity at the end of a chain of activities, where you have a merge
activity.
The Critical Path
• Is the network path(s) that has (have) the least slack in common.
• Is the longest path through the activity network.
• Is the shortest expected time in which the entire project can be
completed.
• Is important because it impacts completion time.
• Is where you put best people on.
• Is where you pay extra attention when doing risk assessment.
• Is where you don’t look when other managers are asking to ‘borrow’
people or equipment.
• Is where you look when you don’t have time to monitor all activities.
Sensitivity
• Network sensitivity is the likelihood the original critical path(s) will

change once the project is initiated.
• A network schedule that has only one critical path and noncritical
activities that enjoy significant slack would be labeled ‘insensitive’.
6.8 Practical Considerations
• Network Logic Errors

• Activity Numbering
• Use of Computers to Develop Networks (and Gantt Chart)
• Calendar Dates
• Multiple Starts and Multiple Projects
Network Logic Errors—Illogical Loop

Automated Warehouse Picking System Network

Automated Warehouse Picking System Gantt Chart

6.9 Extended Network Techniques to Come Closer to Reality
Laddering
• Activities are broken into segments so the following activity can begin
sooner and not delay the work.
Use of Lags to Reduce Schedule Detail and Project Duration
• A lag is the minimum amount of time a dependent activity must be
delayed to begin or end.
• Lengthy activities are broken down to reduce the delay in the start of
successor activities.
• Lags can be used to constrain finish-to-start, start-to-start, finish-to-
finish, start-to-finish, or combination relationships.
Example of Laddering Using Finish-to-Start Relationship

Use of Lags
Finish-to-Start Relationship
Start-to-Start Relationship
© McGraw-Hill Education FIGURE 6.13 and Figure 6.14 30

Use of Lags to Reduce Project Duration

New Product Development Process

Use of Lags (Continued)
Finish-to-Finish
Relationship
Start-to-Finish
Relationship
Combination
Relationships
© McGraw-Hill Education FIGURE 6.17, Figure 6.18 and Figure 6.19 33

Network Using Lags

Hammock Activity
• Spans over a segment of a project.

• Has a duration that is determined after the network plan is drawn.
• Is very useful in assigning and controlling indirect project costs.
• Is used to aggregate sections of the project to facilitate getting the
right level of detail for specific sections of a project.
Hammock Activity Example

Key Terms
Activity Hammock activity

Activity-on-arrow (AOA) Lag relationship
Activity-on-node (AON) Late time
Burst activity Merge activity
Concurrent engineering Parallel activities
Critical path Path
Early time Sensitivity
Free slack (FS) Total slack
Gantt chart
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Because learning changes everything.®
Chapter Eight
Scheduling Resources
and Costs
Where We Are Now
Learning Objectives
08-01 Understand the differences between time-constrained and resource-

constrained schedules.
08-02 Identify different types of resource constraints.
08-03 Describe how the smoothing approach is used on time-constrained projects.
08-04 Describe how the leveling approach is used for resource-constrained
projects.
08-05 Understand how project management software creates resource-constrained
schedules.
08-06 Understand when and why splitting tasks should be avoided.
08-07 Identify general guidelines for assigning people to specific tasks.
08-08 Identify common problems with multiproject resource scheduling.
08-09 Explain why a time-phased budget baseline is needed.
08-10 Create a time-phased project budget baseline.
Chapter Outline
8.1 Overview of the Resource Scheduling Problem

8.2 Types of Resource Constraints
8.3 Classification of a Scheduling Problem
8.4 Resource Allocation Methods
8.5 Computer Demonstration of Resource-Constrained Scheduling
8.6 Splitting Activities
8.7 Benefits of Scheduling Resources
8.8 Assigning Project Work
8.9 Multiproject Resource Schedules
8.10 Using the Resource Schedule to Develop a Project Cost Baseline
Project Planning Process

8.1 Overview of the Resource Scheduling Problem
Resources and Priorities

- Project network times are not a schedule until resources have been
assigned.
• There are always more project proposals than there are available
resources.
• The project priority team will add a new project only if resources
are available.
- Cost estimates are not a budget until they have been time-phased.
• Once resource assignments have been finalized, you are able to
develop a baseline budget schedule for the project.
The Resource Scheduling Problem
Resource Smoothing
- Involves attempting to even out varying demands on resources by
delaying non-critical activities (using slack) to lower peak resource
demand and, thus, increase resource utilization when resources are
adequate over the life of the project.
Resource-Constrained Scheduling
- Occurs when resources are not adequate to meet peak demands.
The late start of some activities must be delayed, and the duration of
the project may be increased.
Types of Project Constraints
Technical or Logical Constraints

- Are related to the networked sequence in which project activities must
occur.
Resource Constraints
- Occur when the absence, shortage, or unique interrelationship and
interaction characteristics of resources require a particular sequencing of
project activities.
- Note that the resource dependency takes priority over the technological
dependency but does not violate the technological dependency.
Types of Resources Constraints
- People
- Materials
- Equipment
Constraint Examples

8.3 Classification of a Scheduling Problem
Time-Constrained Project
- Must be completed by an imposed date.
- Time (project duration) is fixed and resources are flexible. If required,
resources can be added to ensure the project is completed by a specific
date.
Resource-Constrained Project
- Assumes the level of resources available cannot be exceeded.
- Resources are fixed and time is flexible. If the resources are inadequate,
it will be acceptable to delay the project.
▪ Consult a project priority matrix to determine if the project is time- or

resource- constrained.
8.4 Resource Allocation Methods
Limiting Assumptions
- Splitting activities will not be allowed.
• Splitting refers to interrupting work on one task and assigning the
resources to work on a different task for a period of time, then
reassigning them to work on the original task.
- Level of resources used for an activity cannot be changed.
Risk Assumptions
- Activities with the most slack pose the least risk.
- Reduction of flexibility does not increase risk.
- The nature of an activity (easy, complex) doesn’t increase risk.
Time-Constrained Projects
- Must be completed by an imposed date.

- Focus on resource utilization.
- Require use of resource smoothing techniques that balance demand for a resource.
Leveling (Smoothing) Techniques
- Delay noncritical activities by using positive slack to reduce peak demand and fill in the
valleys for the resources without delaying the entire project.
Goals of Smoothing Resource Demand
- Reduce the peak of demand for the resource
- Reduce the number of resources over the life of the project
- Minimize the fluctuation in resource demand
Downside of Smoothing Resource Demand
- Loss of flexibility that occurs from reducing slack
- Creates more critical activities and/or near-critical activities because of slack reduction
Botanical Garden

Resource-Constrained Projects
- Resources are limited in quantity or availability.

- Activities are scheduled using heuristics (rules of thumb) by following
the priority rules:
1. Minimum slack
2. Smallest (least) duration
3. Lowest activity identification number
- The parallel method is used to apply heuristics.
• The parallel method is an iterative process that starts from the
beginning of project time and, when the resources needed exceed
the resources available, retains activities first by the priority rules.
Resource-Constrained Schedule through Period 2-3

Resource-Constrained Schedule through Period 5-6

8.5 Computer Demonstration of Resource-Constrained
Scheduling
EMR Project
- The development of a hand-held electronic medical reference guide to
be used by emergency medical technicians and paramedics
Resource Problem
- Only eight design engineers can be assigned to the project due to the
shortage of design engineers and commitments to other projects.
- The peak demand is 21 design engineers.
EMR Project Network View Schedule before Resources Leveled

EMR Project before Resources Added

EMR Project—Time-Constrained Resource Usage View,
January 15-23
© McGraw-Hill Education FIGURE 8.8A 20

Resource Loading Chart for EMR Project, January 15-23
© McGraw-Hill Education FIGURE 8.8B 21

EMR Project Network View Schedule after Resources Leveled

EMR Project Resources Leveled

The Impacts of Resource-Constrained Scheduling
- Reduces slack; reduce flexibility

- Increases the number of critical and near-critical activities
- Increases scheduling complexity because resource constraints are
added to technical constraints
- May make the traditional critical path no longer meaningful
- Can break the sequence and leave the network with a set of disjointed
critical activities
- May cause parallel activities to become sequential
- Can change activities from critical to noncritical
8.6 Splitting Activities
Splitting Tasks
- Is a scheduling technique used to get a better project schedule and/or

to increase resource utilization.
- Involves interrupting the work and sending the resource to another

activity for a period of time and then having the resource resume work
on the original activity.
- Can be useful if the work involved does not include large start-up or
shut-down costs.
- Is considered a major reason why projects fail to meet schedule.
Splitting Activities

8.7 Benefits of Scheduling Resources
- Leaves time for considering reasonable alternatives

• Cost-time tradeoffs
• Changes in priorities
- Provides the information needed to prepare time-phased work
package budgets with dates
• To gauge the impact of unforeseen events
• To assess how much flexibility over certain resources
8.8 Assigning Project Work
Reasons why we should not always assign the best people the most
difficult tasks
• Best people: resent to the fact that they are always given the toughest
assignments
• Less experienced participants: resent to the fact that they are never
given the opportunity to expand their skill/knowledge base
Factors to be considered in deciding who should work together
• Minimize unnecessary tension; complement each other
• Experience: veterans team up with new hires
• Future needs: have people work together early on so that they can
become familiar with each other
8.9 Multiproject Resource Schedules
Problems in a multiproject environment

1. Overall schedule slippage
• Shared resources causes a ripple effect—delays in one project
create delays for other projects.
2. Inefficient resource utilization
• Different schedules and requirements by multiple projects create
the peaks and valleys in overall resource demands.
3. Resource bottlenecks
• Shortages of critical resources required by multiple projects cause
delays and schedule extensions.
Managing Multiproject Scheduling
- Create project offices or departments to oversee the scheduling of

resources across multiple projects
- Use a project priority queuing system—first come, first served for
resources
- Treat individual projects as part of one big project and adapt the
scheduling heuristics to this “mega project”
- Utilize project management software to prioritize resource allocation
- Outsource projects to reduce the number of projects managing internally
- Hire temporary workers to expedite certain activities that are falling
behind schedule
- Contract project work during peak periods when there are insufficient
internal resources to meet the demands of all project
8.10 Using the Resource Schedule to Develop a Project Cost Baseline
Why a Time-Phased Budget Baseline Is Needed

- To determine if the project is on, ahead, or behind schedule and over
or under its budgeted costs
- To assess how much work has been accomplished for the allocated
money spent—the project cost baseline (planned value, PV)
Creating a Time-Phased Budget
- Assign each work package to one responsible person or department
and deliverable
- Compare planned schedule and costs using an integrative system
called earned value
- Generate cash flow statements and resource usage schedules
Direct Labor Budget Rollup ($000)

Time-Phased Work Package Budget (labor cost only)

Two Time-Phased Work Packages (labor cost only)

Patient Entry Project Network

Patient Entry Time-Phased Work Packages Assigned

Project Monthly Cash Flow Statement

Project Weekly Resource Usage Schedule

Key Terms
Heuristics
Leveling
Planned value (PV)
Resource-constrained project
Resource-constrained scheduling
Resource smoothing
Splitting
Time-constrained project
Time-phased budget baseline
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COMMMGT 9330A
Session 5
Project Schedule Management
COMMMGT 9330A
Project Schedule
Management
“The processes required to accomplish timely

completion of the project”
PMI, PMBOK, PMP, and CAPM are registered marks of Project Management Institute,
Inc.
COMMMGT 9330A
Learning Objectiv
es
o Apply effective scheduling tools and techniques to
sequence and accurately estimate activity duration.
o Outline the benefits of using scheduling tools such as
Gantt chart and network diagrams.
o Create a draft schedule
o Optimize the schedule
o Examine the significance of the critical path.
Inc.
COMMMGT 9330A
Introduction to Schedule
Planning
• Once project scope is defined,
next step create a schedule.
• A schedule is a list of activities,

arranged in logical order and
containing timeline on when to
start and end.
• Schedules may also contain

information such as Cost and
required Resources for each
activity.
Inc.
COMMMGT 9330A
Benefits to Schedule Planning
• The development of a schedule is beneficial for the following
reasons:
o Commitment: It allows the project team to make
commitments to its stakeholders about the final delivery
date as well as interim deliverables.
o Transparency: Everyone involved in the project can see
their efforts within the context of the whole project and
understand the connections and inter-dependencies that
may exist.
o Measure & Track: It provides an established project
timeline that may be used to track the progress of the
project. This established timeline is known as a baseline.
Inc.
COMMMGT 9330A
Project Schedule
Planning
• Project Schedule Management includes the processes

required to manage the timely completion of the project.
• Process of establishing the policies, procedures, and
documentation for planning, developing, managing, executing,
and controlling the project schedule.
Inc.
COMMMGT 9330A
The triple
constraint
• The “iron triangle” is a very popular metaphor pointing out that
the project manager is asked to reach a reasonable trade-off
among various concurrent, heterogeneous, and visible
constraints.
Inc.
COMMMGT 9330A
Plan Schedule
Management
• Process of establishing the policies, procedures, and
documentation for planning, developing, managing, executing,
and controlling the project schedule.
o The processes:
o Define Activities
o Sequence Activities
o Estimate Activity Durations
o Develop Schedule
o Control Schedule
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Sixth Edition, Project Management Institute, Inc., 2017. Page 173-230
Inc.
COMMMGT 9330A
KEY CONCEPTS | PROJECT SCHEDULE MANAGEMENT
• The project management team selects a scheduling method, such as critical path or
an agile approach.
o The project-specific data namely activities, planned dates, durations,
resources, dependencies, and constraints, are entered into a scheduling tool
to create a schedule model for the project.
o The result is a project schedule.
o The schedule management plan establishes the criteria and the activities for
developing, monitoring, and controlling the schedule.
o Part of the Project Management Plan
o Formal or Informal
o Scheduling Methodology and Software
o Schedule Baseline
o Performance Measures
o Schedule Variances
o Schedule Change Control Procedures
Inc.
COMMMGT 9330A
TRENDS & PRACTICES IN PROJECT SCHEDULE
MANAGEMENT
• Iterative scheduling with a backlog:
o Rolling wave planning based on adaptive life cycles,
such as the agile approach for product development.
o Requirements are documented in user stories that are
then prioritized and refined just prior to construction, and
the product features are developed using time-boxed
periods
• On-demand scheduling:
o Kanban system, is based on the Theory-of-constraints
and pull-based scheduling concepts from lean
manufacturing to limit a team’s work in progress to
balance demand against the team’s delivery throughput.
Inc.
COMMMGT 9330A
PLAN SCHEDULE MANAGEMENT ITTO
Tools & Techniques
•Project charter
•Project management plan
Inputs Outputs Schedule management plan
•Scope management plan ❑ Expert judgment
•Development approach ❑ Data analysis
•Organizational process assets ❑ Meetings
•Enterprise environmental factors
Estimate
Plan Schedule Define Sequence Develop Control
Activity
Management Activities Activities Schedule Schedule
Durations
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Sixth Edition, Project Management Institute, Inc., 2017. Page 179
Inc.
COMMMGT 9330A
DEFINE
ACTIVITIES Tools & Techniques
• Activity list
•Project management plan • Activity attributes
•Schedule management plan ❑ Expert judgment
Inputs Outputs • Milestone list
❑ Decomposition
•Scope baseline • Change requests
❑ Rolling wave planning • Project management plan updates
•Enterprise environmental factors
❑ Meetings • Schedule baseline
•Organizational process assets • Cost baseline
Estimate
Activity
Durations
Inc.
COMMMGT 9330A
• Process of identifying the specific and
documenting actions to be performed to produce
the project deliverables
• The key benefit of this process is that it
decomposes work packages into schedule
DEFINE activities that provide a basis for estimating,
scheduling, executing, monitoring, and controlling
ACTIVITIES the project work.
• This process is performed throughout the project.
• Work packages are decomposed into activities
• Provides a basis for estimating, scheduling,
executing, and monitoring and controlling the
project work
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SEQUENCE
ACTIVITIES
Tools & Techniques
• Project management plan
• Schedule management plan
• Scope baseline ❑ Precedence diagramming • Project schedule network diagrams
• Project documents
method
• Project documents updates
❑ Dependency determination and
• Activity attributes Inputs
integration
Outputs • Activity attributes
• Activity list ❑ Leads and lags • Activity list
• Assumption log ❑ Project management • Assumption log
• Milestone list information system
• Milestone list
• Enterprise environmental factors
• Organizational process assets
Estimate
Activity
Durations
Project Management, the Managerial Process 7E, by Erik W. Larson and Clifford F. Gray – Chapter 5 & 6
Inc.
COMMMGT 9330A
• Sequence Activities is the process of
SEQUENC identifying and documenting relationships
E among the project activities. The key
benefit of this process is that it defines the
ACTIVITIE logical sequence of work to obtain the
S greatest efficiency given all project
constraints.
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PRECEDENCE DIAGRAMMING METHOD
• PDM is a method used(PDM)
in Critical Path Methodology (CPM)
• Commonly called Activity on Node (AON), most used sequencing
method
• Boxes represent tasks with arrows used for dependencies
• Arrows show the logical relationships that exist between them
• 4 types of dependencies:
oFinish to Start (FS) – Task must finish before next one can start
oFinish to Finish (FF) – One task must finish before other can finish
oStart to Start (SS) – One task must start before the other can start
oStart to Finish (SF) – One task must start before the other can finish
Activity Activity
A B
Dependency Node
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COMMMGT 9330A
PRECEDENCE DIAGRAMMING METHOD
(PDM)
Finish
Start Finish Start
Finish Start
Start Finish
Finish Start
Start Finish
Finish
Start Start Finish
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LEADS &
LAGS
Leads (-) FS-10:
•Allows an acceleration of the successor activity
•Added to start (begin early) an activity before the predecessor activity is
completed
•Landscaping can be started earlier
•Develop test plans ten days before all the programming is done (FS-10D)
Start Finish Start Finish
Dela
y
Start Finish Start Finish
Early
LAGS (+)
•Waiting time between activities
•Directs a delay (late start) in the successor activity
•Curing of concrete takes time
•Curing of binder course on a road must happen before a surface course is paved
•Start editing ten days after you start writing (SS+10D)
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ARROW DIAGRAMMING METHOD (ADM)
• Commonly called Activity on Arrow (AOA)
• Boxes represent dependencies with arrows used for tasks
o Only Finish to Start (FS) relationships
o Can use “dummy” activities
• Used for CPM and PERT estimating methods
Task
Activity A
Dependency
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METHOD
COMPARISON
PDM Build Build Build
(AON) Start Foundation Walls Finish
Roof
Method
Install
Grass
Build Build Build

ADM Foundation Walls Roof
(AOA) Start Finish
Method
Install
Grass
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ESTIMATE ACTIVITY DURATIONS
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COMMMGT 9330A
ESTIMATE ACTIVITY DURATIONS
• Project management plan Tools & Techniques
• Scope baseline ❑ Expert judgment
• Project documents ❑Analogous estimating
• Duration estimates
• Activity attributes ❑ Parametric estimating
• Activity list
• Basis of estimates
Inputs ❑ Three-point estimating Outputs
• Assumption log • Project documents updates
• Lessons learned register ❑ Bottom-up estimating – Activity attributes
• Milestone list ❑ Data analysis – Assumption log
• Project team assignments ❑ Alternatives analysis
• Resource breakdown structure ❑ Reserve analysis
– Lessons learned register
• Resource calendars ❑ Decision making
• Resource requirements
❑ Meetings
• Risk register
• Enterprise environmental factors
Estimate
Activity
Durations
Inc.
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TECHNIQUES FOR ESTIMATING
DURATIONS • One estimate per activity
• Expert Judgment or Guessing
ONE POINT • Chance of padding
ESTIMATING • Difficult to get buy-in
• Project Manager must provide the estimator as much information as possible
• Should not be used for a highly probable schedule
• Top down
ANALOGOUS • Gross Value Estimating Approach
ESTIMATING • Expert Judgment or Historical Information
• Less costly and time consuming but less accurate
• Calculates projected times for an activity based on historical records

PARAMETRIC • Parametric Estimating Guides can be used
ESTIMATING • Time per linear meter; Time per installation; labour hours per unit of work
• Regression Analysis (Scatter Diagram)
• Learning Curve
• Estimating project duration or cost by aggregating estimates of lower-level components of

BOTTOM-UP WBS.
ESTIMATING • When an activity’s duration cannot be estimated with a reasonable degree of confidence, the
work within the activity is decomposed into more detail. The detail durations are estimated.
• These estimates are then aggregated into a total quantity for each of the activity’s durations.
Inc.
COMMMGT 9330A
DATA ANALYSIS
• Alternative analysis:
o Used to compare various levels of resource capability or skills;
scheduling compression techniques; different tools {manual versus
automated); and make, rent, or buy decisions regarding the resources.
This allows the team to weigh resource, cost, and duration variables to
determine an optimal approach for accomplish project work.
• Reserve analysis:
o Determine amount of contingency and management reserve needed
for the project.
o Duration estimates may include contingency reserves, sometimes
referred to as schedule reserves, to account for schedule
uncertainty.
o Contingency reserves are the estimated duration within the schedule
baseline, which is allocated tor identified risks that are accepted.
Inc.
COMMMGT 9330A
DATA ANALYSIS
• Contingency reserves
o Associated with the known-unknowns, which may be
estimated to account for this unknown amount of rework. The
contingency reserve may be a percentage of the estimated
activity duration or a fixed number of work periods.
oContingency reserves may be separated from the
individual activities and aggregated. As more precise
information about the project becomes available, the
contingency reserve may be used, reduced, or eliminated.
Contingency should be clearly identified in the schedule
documentation.
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COMMMGT 9330A
RESERVE
ANALYSIS
• Duration estimates may include reserves:
o Contingency Reserves:
•Time reserves or buffers
•These are for risks remained after Plan Risk Responses Process
o Management Reserve:
•These are for unforeseen risks
o Heuristic:
o Rule of Thumb | Duration for design work | 20% of total project duration
o 80/20 Rule
o Results of parametric estimates can become heuristics
Inc.
COMMMGT 9330A
THREE POINT
ESTIMATES
• PERT (Program Evaluation and Review Technique)
o tE = Expected Duration
o tP = Pessimistically estimated duration
o tO = Optimistically estimated duration
o tM = Most Likely Estimate
o tE = (tO + 4tM + tP) /6 (Beta)
o tE = (tO + tM + tP) /3 (Triangular)
o SD: Ϭ = (P-O)/6
Inc.
COMMMGT 9330A
IMPORTANT FACTORS WHEN
ESTIMATING
• Law of diminishing returns
o When one factor (e.g.,
resource) used to determine
the effort required to produce a
unit of work is increased while
all other factors remain fixed, a
point will eventually be reached
at which additions of that one
factor start to yield
progressively smaller or
diminishing increases in
output. PMI, PMBOK, PMP, and CAPM are registered marks of Project Management Institute,
Inc.
COMMMGT 9330A
IMPORTANT FACTORS WHEN
ESTIMATING
• Number of resources:
o Increasing the number of resources to twice the original
number of the resources does not always reduce the time
by half, as it may increase extra duration due to risk, and at
some point, adding too many resources to the activity may
increase duration due to knowledge transfer, learning curve,
additional coordination, and other factors involved.
Inc.
COMMMGT 9330A
DEVELOP
SCHEDULE
• Develop Schedule is the process of analyzing activity
sequences, durations, resource requirements, and schedule
constraints to create a schedule model for project execution
and monitoring and controlling.
o This process is performed throughout the project.
o Process of analyzing activity sequences, durations, resource
requirements, and schedule constraints to create the project
schedule
o Process is iterative and can occur many times over the life
cycle of the project
o Project Manager performs calculations and What-If analysis
o Schedule is calendar based
Inc.
COMMMGT 9330A
DEVELOP
SCHEDULE
• Project management plan Tools & Techniques
• Schedule management plan • Schedule baseline
• Scope baseline ❑ Schedule network analysis • Project schedule
• Project documents • Schedule data
❑ Critical path method
• Activity attributes • Project calendars
• Activity list ❑Resource optimization
• Change requests
• Assumption log Inputs ❑ Data analysis Outputs • Project management plan updates
• Basis of estimates
• Duration estimates ❑ What-if scenario analysis • Schedule management plan
• Lessons learned register • Cost baseline
❑ Simulation
• Milestone list • Project documents updates
• Project schedule network diagrams ❑ Leads and lags • Activity attributes
• Project team assignments • Assumption log
❑ Schedule compression
• Resource calendars
❑ Project management • Duration estimates
• Resource requirements information system
• Risk register
• Lessons learned register
❑ Agile release planning • Resource requirements
• Agreements
• Enterprise environmental factors • Risk register
Estimate
Activity
Durations
Inc.
COMMMGT 9330A
EARLY START/FINISH, LATE START/FINISH
ES DR EF
ES DR EF
ES DR EF
LS TF LF
ES DR EF
LS TF LF
LS TF LF
ES DR EF
LS TF LF
EF = ES + DR - 1
LS = LF - DR + 1
Slack = LF – EF or LS -
ES
LS TF LF
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Sixth Edition, Project Management Institute, Inc., 2017. Page 211. Figure 6-16: Example of Critical Path method.
Inc.
COMMMGT 9330A
EARLY START/FINISH, LATE START/FINISH
• EF=ES+DUR-1
ES DUR EF
• LS=LF-DUR+1 Task Name
• Slack=LF-EF or LS- LS Slack LF
ES
3 2 4
Task B
1 2 2 7 4 8 9 2 10
Task A Task D
1 0 2 3 6 8 9 0 10
Task C
3 0 8
Inc.
COMMMGT 9330A
SCHEDULE NETWORK ANALYSIS
A technique that generates the project schedule
Uses these techniques:

o Critical Path Method
o Critical Chain Method
o Resource Levelling
o Resource Smoothing
o What-if Scenario
o Schedule Compression
Inc.
COMMMGT 9330A
CRITICAL PATH
METHOD
o Determines the longest path in the
network diagram which is critical
path
o A critical path is normally
characterized by zero total float on
the critical path
o Schedule activities on a critical path
are called “critical activities”
o Near-critical path is close in
duration to the critical path
Inc.
COMMMGT 9330A
CRITICAL CHAIN
METHOD
o Derived from Theory of

Constraints
o Resource focussed
o Adapted to uncertainty
related to change and
human behaviors
o Divides work into natural
work streams
Credits: Caravel Group
Inc.
COMMMGT 9330A
SCHEDULING FROM ESTIMATES
• Critical Path
o Longest time through the network
diagram, the shortest time the project
is expected to take
• Slack (or Float)

o The amount of time a task can be
delayed without impacting the project
o Calculated using:
o Late Start – Early Start (LS-ES) or
Late Finish – Early Finish (LF-EF)
Inc.
COMMMGT 9330A
CRITICAL PATH DETERMINATION EXAMPLE
Inc.
COMMMGT 9330A
FLOAT
(SLACK)
• Total Float/Slack
o Amount of time an activity can be delayed without delaying the
planned project end date
• Free Float/Slack
o Amount of time an activity can be delayed without delaying the early
start date of its successor(s)
• Project Float
o Amount of time a project can be delayed without delaying the
externally imposed project completion date
• Forward pass
o Determines the early start and finish dates
• Backward pass
o Determines the late start and finish dates
Inc.
COMMMGT 9330A
FLOAT (SLACK)
CALCULATION
• Float = Late Start – Early Start

or
• Float = Late Finish – Early
Finish
Inc.
COMMMGT 9330A
CALCULATING FLOAT
ES DR EF ES DR EF ES DR EF
Start “A” “F” “B” End

LS TF LF LS TF LF LS TF LF
ES DR EF ES DR EF ES DR EF ES DR EF ES DR EF
“D” “E” “G” “H” “C”

LS TF LF LS TF LF LS TF LF LS TF LF LS TF LF
1. Precedence Diagram
2. Durations
ES D EF
3. Forward Pass (ES -> EF)
“X”
LS F LF 4. Critical Path
5. Float of Critical Path Activities
6. Backward Pass (LF -> LS)
Inc.
COMMMGT 9330A
CALCULATING FLOAT ES DR EF ES DR EF ES DR EF
6 7 5
LS TF LF LS TF LF LS TF LF
4 8 5 7 8
“D” “E” “G” “H” “C”
2. Durations
ES DR EF
3. Forward Pass (ES -> EF)
“X”
Inc.
COMMMGT 9330A
CALCULATING FLOAT
0+6=6
ES DR EF ES DR EF ES DR EF
0 6 6 6 7 13 13 5 18
LS TF LF
ES DR EF ES DR EF ES DR EF ES DR EF
0 4 4 4 8 12 13 5 18 18 7 25 25 8 33
“D” “E” “G” “H” “C”
The latest Late Finish of the preceding activities determines Early Start
2. Durations
ES DR
D EF 3. Forward Pass (ES -> EF)
“X” 4. Critical Path
LS F LF
Inc.
COMMMGT 9330A
CALCULATING FLOAT ES DR EF ES DR EF ES DR EF
0 6 6 6 7 13 13 5 18
A–F–G–H–C
0 4 4 4 8 12 13 5 18 18 7 25 25 8 33
“D” “E” “G” “H” “C”
The latest Early Finish of the preceding activities determines Critical Path
2. Durations
ES DR EF 3. Forward Pass (ES -> EF)
LS F LF 5. Float of Critical Path Activities
Inc.
COMMMGT 9330A
CALCULATING FLOAT
0 6 6 6 7 13 13 5 18
0 0
0 4 4 4 8 12 13 5 18 18 7 25 25 8 33
“D” “E” “G” “H” “C”
0 0 0
Activities on the Critical Path have Zero Float
2. Durations
ES DR EF 3. Forward Pass (ES EF)
LS F LF
6. Backward Pass (LF LS)
Inc.
COMMMGT 9330A
CALCULATING FLOAT
ES DR EF Latest
ES DR EF Total
Start Float
0 6 6 6 7 13 13 5 18
LF – DR = LS
0 0 6 6 0 13 28 15 33 33 – 5 = 28
LS TF LF LS TF LF
LS TF LF
LS – ES = LF - EF
28 – 13 =
4 8 5 15 7 8
0 4 4 12 13 18 18 25 25 33
“D” “E” “G” “H” “C”
1 1 5 5 1 13 13 0 18 18 0 25 25 0 33
The earliest Late Start of the following activities determines Late Finish
2. Durations
ES DR EF 3. Forward Pass (ES -> EF)
LS F LF 5. Float of Critical Path Activities
Inc.
COMMMGT 9330A
CALCULATING FLOAT
0 6 6 6 7 13 13 5 18
0 0 6 6 0 13 28 15 33
0 4 4 4 8 12 13 5 18 18 7 25 25 8 33
“D” “E” “G” “H” “C”
1 1 5 5 1 13 13 0 18 18 0 25 25 0 33
What else can we learn from this example?
ES D EF 2. Durations
“X” 3. Forward Pass (ES EF)
Inc.
COMMMGT 9330A
CALCULATING FLOAT
0 6 6 6 7 13 13 5 18
0 0 6 6 0 13 28 15 33
0 4 4 4 8 12 13 5 18 18 7 25 25 8 33
“D” “E” “G” “H” “C”
1 1 5 5 1 13 13 0 18 18 0 25 25 0 33
Project has increased RISK because of a Near-Critical Path
2. Durations
ES D EF 3. Forward Pass (ES EF)
4. Critical Path
“X”
LS F LF
Inc.
COMMMGT 9330A
RESOURCE OPTIMIZATION
• Resource optimization
o Used to adjust the start and finish
dates of activities to adjust
planned resource use to be equal
to or less than resource
availability.
• Examples of resource
optimization techniques
o Resource leveling
o Resource Smoothing
Inc.
COMMMGT 9330A
RESOURCE LEVELING
• Resource leveling is
necessary when resources
have been over-allocated
• Produces a resource-
limited schedule
• Resource re-allocation
from non-critical to critical
activities
• Resource leveling can
often cause the original
critical path to change
Inc.
COMMMGT 9330A
RESOURCE SMOOTHING
• A technique that adjusts the activities of
a schedule model such that the
requirements for resources on the
project do not exceed certain
predefined resource limits.
o In resource smoothing, as opposed to
resource leveling, the projects critical
path is not changed, and the
completion date may not be delayed.
o Activities may only be delayed within
their tree and total float.
o Resource smoothing may not be able
to optimize all resources.
Inc.
COMMMGT 9330A
WHAT-IF SCENARIO
• Can be used to assess the
feasibility of the project schedule
under adverse conditions
• For preparing contingency and
response plans
• Monte Carlo Analysis simulates the
outcomes and uses three-point
estimate
• What-if it happens?
o Can help in dealing with path
convergence
o Activity durations may change
Inc.
COMMMGT 9330A
SIMULATION
• Simulation models the combined effects of individual project
risks and other sources of uncertainty to evaluate their
potential impact on achieving project objectives.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Sixth Edition, Project Management Institute, Inc., 2017. Figure 6-18: Example of Probability Distribution of a Target Milestone. Page 213
Inc.
COMMMGT 9330A
SCHEDULE COMPRESSION
• Schedule compression techniques are
used to shorten or accelerate the
schedule duration without reducing
the project scope to meet schedule
constraints, imposed dates, or other
schedule objectives.
• A helpful technique is the negative

float analysis. The critical path is
the one with the least float. Due to
violating a constraint or imposed date,
the total float can become negative.
Inc.
COMMMGT 9330A
POSTIVE & NEGATIVE FLOAT
• FLOAT (SLACK) is extra time that a
project task, a branch of project tasks,
or the entire project can be extended
by. Less Float equals more urgent
• POSITIVE Float means there is

excess or additional time available for
an activity to start.
• NEGATIVE Float means there is no

excess or additional time available for
an activity to start.
Inc.
COMMMGT 9330A
FAST TRACKING Vs CRASHING
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Sixth Edition, Project Management Institute, Inc., 2017. Figure 6-19: Schedule Compression comparison. Page
215
Inc.
COMMMGT 9330A
PROJECT SCHEDULE PRESENTATIONS
• Result of schedule network analysis
• The iterated and realistic schedule is called
the Schedule Baseline
• Schedule can be in the form:
o Network Diagram
o Milestone Chart
o Milestone Schedule
o Summary Schedule
o Detailed Schedule
o Bar Chart (Gantt Chart)
Inc.
COMMMGT 9330A
EXAMPLE PROJECT SCHEDULE
Inc.
COMMMGT 9330A
CONTROL SCHEDULE
• Control Schedule is the process of monitoring the status of
the project to update the project schedule and managing
changes to the schedule baseline.
• The key benefit of this process is that the schedule baseline
is maintained and performed throughout the project.
o Control means measure, against the plan
o Project Managers are measuring, measuring, and measuring
against the plan and controlling the project
o Project Manager will be considered a failure if the end date
agreed to in planning is not met
Inc.
COMMMGT 9330A
CONTROL SCHEDULE
Tools & Techniques
• Project management plan ❑Data analysis • Work performance information
❑ Earned value analysis • Schedule forecasts
❑ Iteration burndown chart • Change requests
• Schedule baseline
❑ Performance reviews
• Scope baseline • Project management plan updates
❑ Trend analysis
–Schedule management plan
• Performance measurement baseline Inputs ❑ Variance analysis Outputs –Schedule baseline
• Project documents ❑ What-it scenario analysis –Cost baseline
• Lessons learned register –Performance measurement baseline
❑Critical path method
• Project calendars • Project documents updates
• Project schedule ❑ Project management –Assumption log
information system –Basis of estimates
• Resource calendars –Lessons learned register
• Schedule data ❑ Resource optimization –Project schedule
–Resource calendars
• Work performance data ❑ Leads and lags –Risk register
• Organizational process assets ❑Schedule compression –Schedule data
Estimate
Activity
Durations
Inc.
COMMMGT 9330A
REFERENCES
• Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK®
Guide)–Sixth Edition, Project Management Institute, Inc., 2017.
• Project Management: The Managerial Process by Erik W. Larson & Clifford F. Gray 8th Edition
• Managing Project Quality by Kloppenborg & Petrick, 2002 edition.
• Principles of Project Management by John R. Adams
• Project Management Processes, Methodologies, and Economics, 3E by Avraham Shtub & Moshe
Rosenwein
• Successful Project Management seventh Edition by Jack Gido, James P. Clements & Rose M. Baker
• Understanding the Project Environment, A Practical Guide, Second Edition by Dave C. Barrett
• Project Management by Adrienne Watt
COMMMGT 9330A
COMMMGT 9330A
Session 4
Project Scope Management
COMMMGT 9330A
WHAT IS PROJECT SCOPE MANAGEMENT?
• Scope refers to all the work involved in creating the
products of the project and the processes used to
create them
• A deliverable is a product produced as part of a
project, such as hardware or software, planning
documents, or meeting minutes
• Project scope management includes the processes
involved in defining and controlling what is or is not
included in a project
How is project scope defined?
COMMMGT 9330A
7
PROJECT SCOPE PLANNING
Project Scope
o While the Project Charter defines the project’s goals and objectives, it does
not provide detailed information about what will be produced during the
project. Therefore, additional planning should be performed in order to
provide a clear definition of the requirements and details of the project’s
scope.
Two main steps when planning the project scope;

o determine the list of items needed for the project
–These items are documented in the Project Requirements Document
o determine what the project will produce

o The output of this step consists of two documents:
–the Project Scope Statement and the Work Breakdown Structure.
8
9
SCOPE PLANNING AND THE SCOPE

MANAGEMENT PLAN
• The scope management plan is a document that

includes descriptions of how the team will prepare the
project scope statement, create the WBS, verify
completion of the project deliverables, and control
requests for changes to the project scope
• Key inputs include the project charter, preliminary scope
statement, and project management plan
• It should be reviewed with the project sponsor to make
sure the approach meets expectations
PROJECT MANAGEMENT PLAN
Project
management
plan
components
include but
are not
limited to:
Define Project Scope
Project Scope Project Scope Statement
▪Defines what needs done ▪Usually contains
▪Includes ▪ Customer requirements
▪ Items contained in project ▪ Statement of Work
charter, RFP, proposal ▪ Deliverables
▪ More detail ▪ Acceptance Criteria
▪ Work Breakdown Structure
▪Establishes common
understanding of scope with ▪Establishes baseline
stakeholders ▪Change control system to avoid
scope creep
1
2
DEFINING THE PROJECT SCOPE
Project Scope
o definition of the end result or mission of the project—a
product or service for the client/customer
Purposes of the Project Scope Statement

o clearly define the deliverable(s) for the end user
o Also called statements of work (SOW)
o focus the project on successful completion
of its goals
o used by the project owner and participants
as a planning tool and for measuring project success
1
3
Project Requirements
o The PM needs to document all the

requirements of the project.
o Describe the characteristics of the
final deliverable, whether it is a
product or a service
o Once the requirements are
known, the scope of the project
may be defined.
BEST PRACTICES FOR AVOIDING
SCOPE PROBLEMS
1. Keep the scope realistic: Don’t make projects so
large that they can’t be completed; break large projects
down into a series of smaller ones
2. Involve users in project scope management:
Assign key users to the project team and give them
ownership of requirements definition and scope
verification
3. Follow good project management processes: As
described in this chapter and others, there are well-
defined processes for managing project scope and others
aspects of projects
1
5
SUGGESTIONS FOR IMPROVING
USER INPUT
• Develop a good project selection process and insist that
sponsors are from the user organization
• Have users on the project team in important roles
• Have regular meetings with defined agendas, and have
users sign off on key deliverables presented at meetings
• Deliver something to users and sponsors on a regular
basis
• Don’t promise to deliver when you know you can’t
• Co-locate users with developers
1
6
USING SOFTWARE TO ASSIST IN PROJECT
SCOPE MANAGEMENT
• Word-processing software helps create several scope-related
documents
• Spreadsheets help to perform financial calculations and weighed
scoring models, and develop charts and graphs
• Communication software like e-mail and the Web help clarify and
communicate scope information
• Project management software helps in creating a WBS, the basis
for tasks on a Gantt chart
• Specialized software is available to assist in project scope
management
1
7 Scope Inputs/Tools+Techniques/Outputs
Figure 8.1: Scope input-output by Flaming Sevens (http://en.wikibooks.org/wiki/File:ScopeIO.JPG) in the Public Domain
(http://en.wikipedia.org/wiki/Public_domain).
• The project manager gathers initial project facts from the project charter.
• In addition, background information on the stakeholder’s, project sponsor,
customers, competitors, suppliers, regulators, users, management strategic
plan, existing business model and rules, etc. assist in creating the vision of
the final product/service, and consequently, the project scope
1
8 Scope Management Policy
How will we define scope for this project?

How will strategic alignment be ensured?
How will business need be monitored and
addressed?
How will requirements (and associated
stakeholders reaction to them) be traced and
managed?
How will requirement priorities and stakeholder
conflicts be managed and resolved?
How will change to scope be processed and
managed?
KEY CONCEPTS OF SCOPE
• PRODUCT SCOPE:
o What features and functions are
wanted in a product
• PROJECT SCOPE:
o The work that needs to be
accomplished to deliver a product,
service, or result
2
0
PROJECT SCOPE MANAGEMENT PROCESSES

Plan Scope Management:
o Deciding how the scope will be defined, verified, and
controlled
Collect Requirements
o The process of determining, documenting, and managing
stakeholder needs and requirements to meet objectives.
Scope definition:
o Reviewing the project charter and preliminary scope
statement and adding more information as requirements
are developed and change requests are approved
2
1

Creating the WBS:
o Subdividing the major project deliverables into smaller,
more manageable components
Scope Verification:
o Normalizing acceptance of the project scope by key
project stakeholders
Scope Control:
o Controlling changes to project scope which impact
project cost and time
2
2
WORK
BREAKDOWN STRUCTURE
2
3
CREATE WBS
• Process of subdividing project deliverables and project

work into smaller, more manageable components.
• A hierarchical outline (map) that identifies the
products and work elements involved in a project
• Defines the relationship of the final deliverable
(the project) to its sub-deliverables, and in turn,
their relationships to work packages.
• Provides a framework of what has to be delivered.
Performed once/at predetermined points.
Create Work Breakdown Structure
• Deliverable-oriented hierarchical decomposition
• Organize project work/deliverables - logical groupings
• Subdivide into more manageable components
• Deliverable is output of work package
• Resource requirements and durations can be assigned
• Accountability can be assigned, PM can monitor and control
• Decomposition is subdividing project deliverables into
smaller pieces
– A work package is a task at the lowest level of the WBS
– Tasks on a WBS represent work that needs to be done to complete the
project, not specifications (e.g., type of server)
WBS
• Graphic Chart
• Indentured List
2
6
THE WBS
oViewing a project as a series of deliverables.

oDO NOT include activities in the WBS;
othis will come later - during the project
schedule
2
7
CREATING THE WBS

o The WBS defines the scope of the project and
breaks the work down into components that can
be scheduled, estimated, and easily monitored
and controlled.
o Subdivide a complicated task into smaller tasks,
until you reach a level that cannot be further
subdivided.
o Stop breaking down the work when you reach a
low enough level to perform an estimate of the
desired accuracy.
2
8
EXAMPLE WBS
HIERARCHICAL BREAKDOWN OF THE WBS
* This breakdown groups work

packages by type of work within a
deliverable and allows assignment of
responsibility to an organizational
unit. This extra step facilitates a
system for monitoring project
progress (discussed in Chapter 13).
PROJECT SCOPE STATEMENT
o The Project Scope Statement, WBS, and WBS Dictionary
make the Scope Baseline
o Project Scope Statement includes:
• Constraints and Assumptions
• Product Scope
• Deliverables
• Exclusions
• Acceptance Criteria
• Risks
PROJECT SCOPE STATEMENT
The detailed project scope statement, either directly or by reference to other
documents, includes the following:
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Sixth Edition, Project Management Institute, Inc., 2017. Page 154.
PMI, PMBOK, PMP, and CAPM are registered marks of

Project Management Institute, Inc.
WBS DICTIONARY
Provides a detailed descriptions of the components in
the WBS, including work packages, and control accounts
It includes:
o Account Codes
o Description of Work
o Responsible Entity

3
3
THE WBS DICTIONARY

AND SCOPE BASELINE
• Many WBS tasks are vague and must be explained
more so people know what to do and can estimate
how long it will take and what it will cost to do the
work
• A WBS dictionary is a document that describes
detailed information about each WBS item
• The approved project scope statement + its
WBS + WBS dictionary = scope baseline, which is
used to measure performance in meeting project
scope goals

CREATING A WBS & WBS DICTIONARY
• Project team members should be involved in developing

the WBS to ensure consistency and buy-in
• Each WBS item must be documented in a WBS
dictionary to ensure accurate understanding of the
scope of work included and not included in that item
• The WBS must be a flexible tool to accommodate
inevitable changes while properly maintaining control of
the work content in the project according to the scope
statement
Project Management, the Managerial Process 7E, by Erik W. Larson and Clifford F. Gray – Chapter 4 Page 115-116

3
5
APPROACHES TO DEVELOPING A WBSs

• Using guidelines: some organizations, provide
guidelines for preparing WBSs
• The analogy approach: review WBSs of similar
projects and tailor to your project
• The top-down approach: start with the largest
items of the project and break them down
• The bottom-up approach: start with the specific
tasks and roll them up
• Mind-mapping approach: mind mapping is a
technique that uses branches radiating out from a core
idea to structure thoughts and ideas
3
6
SCOPE VERIFICATION
It is very difficult to create a good scope statement and WBS
for a project
It is even more difficult to verify project scope and minimize
scope changes
Scope verification involves formal acceptance of the
completed project scope by the stakeholders
Acceptance is often achieved by a customer inspection and
then sign-off on key deliverables

SCOPE CONTROL
Scope control involves controlling changes to the
project scope
Goals of scope control are to:
o Influence the factors that cause scope changes
o Assure changes are processed according to procedures
developed as part of integrated change control
o Manage changes when they occur
o Tools for performing scope control include a change
control system and configuration management
Variance is the difference between planned and actual
performance

8
VALIDATE SCOPE
Validate Scope is the process of formalizing

acceptance of the completed project deliverables.
Key Benefit: brings objectivity to the

acceptance process and increases the probability
of final product, service, or result acceptance by
validating each deliverable.
This process is performed periodically

throughout the project as needed.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Sixth Edition, Project
Management Institute, Inc., 2017. Page 163

9
DIFFERENCE BETWEEN QUALITY CONTROL

AND VALIDATE SCOPE
In Quality Control (GC), the In Validate Scope, the

quality control department customer checks and
checks to see if the quality hopefully accepts the
requirements specified for deliverables
the deliverables are met and
make sure the work is
correct.
0
CONTROL SCOPE
Control Scope is the process of monitoring
the status of the project and product scope
and managing changes to the scope baseline.
Key Benefit of this process is that the scope

baseline is maintained throughout the
project. This process is performed throughout
the project.
Involves measuring project and product

scope performance and managing scope
baseline changes
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Sixth Edition, Project Management
Institute, Inc., 2017. Page 167-171

1
SCOPE CREEP
• The uncontrolled expansion to product or project scope
without adjustments to time, cost, and resources is
referred to as scope creep.
• This can occur when the scope of a project is not properly
defined, documented, or controlled.
• It is generally considered harmful.
• If budget, resources, and schedule are increased along with
the scope, the change is usually considered an acceptable
addition to the project, and the term “scope creep” is not
used.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Sixth Edition, Project Management
Institute, Inc., 2017. Page 722
2
GOLD PLATING
• Refers to continuing to work on a project or task well past the
point where the extra effort is worth the value it adds (if any).
• Act of giving the customer more than what he originally
asked for; something that wasn’t scoped, and often
something that the he may not want. So why do it?
• Mostly without the knowledge of the Project Manager
• Gold Plating is unethical and not allowed as per the Project
Management Code of Conduct.

3
WHICH PROCESS COMES FIRST?
• There is no “right order” for the control scope and

scope verification
• Control Scope can occur either before and after the scope
verification/validation
• The goal of Control Scope is updating the scope, plan,
baseline, and WBS info

REFERENCES
• Project Management Institute, A Guide to the Project Management
Body of Knowledge, (PMBOK® Guide)–Sixth Edition, Project
Management Institute, Inc., 2017.
• Project Management: The Managerial Process by Erik W. Larson &
Clifford F. Gray 8th Edition
• Project Management Processes, Methodologies, and Economics, 3E by
Avraham Shtub & Moshe Rosenwein
• Successful Project Management seventh Edition by Jack Gido, James P.
Clements & Rose M. Baker
• Understanding the Project Environment, A Practical Guide, Second
Edition by Dave C. Barrett
Chapter Four
Defining the Project
Where We Are Now
Learning Objectives
04-01 Identify key elements of a project scope statement and understand

why a complete scope statement is critical to project success.
04-02 Describe the causes of scope creep and ways to manage it.
04-03 Understand why it is important to establish project priorities in terms
of cost, time, and performance.
04-04 Demonstrate the importance of a work breakdown structure (WBS)
to the management of projects and how it serves as a database for
planning and control.
04-05 Demonstrate how the organization breakdown structure (OBS)
establishes accountability to organization units.
04-06 Describe a process breakdown structure (PBS) and when to use it.
04-07 Create responsibility matrices for small projects.
04-08 Create a communication plan for a project.
Chapter Outline
4.1 Step 1: Defining the Project Scope

4.2 Step 2: Establishing Project Priorities
4.3 Step 3: Creating the Work Breakdown Structure
4.4 Step 4: Integrating the WBS with the Organization
4.5 Step 5: Coding the WBS for the Information System
4.6 Process Breakdown Structure
4.7 Responsibility Matrices
4.8 Project Communication Plan
Five General Steps for Collecting Project Information
Step 1: Defining the Project Scope

Step 2: Establishing Project Priorities
Step 3: Creating the Work Breakdown Structure
Step 4: Integrating the WBS with the Organization
Step 5: Coding the WBS for the Information System
4.1 Step 1: Defining the Project Scope
Project Scope Defined

• Is a definition of the end result or mission of your project—a product or
service for your client/customer.
• Defines the results to be achieved in specific, tangible, and
measurable terms.
• To clearly define the deliverable(s) for the end user
• To direct focus on the project purpose throughout the life of the project
for the customer and project participants
• To be published and used by the project owner and project
participants for planning and measuring project success
Project Scope Checklist
1. Project objective
2. Product scope description
3. Justification
4. Deliverables
5. Milestones
6. Technical requirements
7. Limits and exclusions
8. Acceptance criteria
Project Scope: Terms and Definitions
Scope Statements
• Is a short, one- to two-page summary of key elements of the scope,
followed by extended documentation of each element.
• Is also referred to as “statements of work (SOWs)”
Project Charter
• Is a documentation that authorizes the project manager to initiate and
lead the project.
• Often includes a brief scope description as well as such items as risk
limits, business case, spending limits, and even team composition.
Scope Creep
• Is the tendency for the project scope to expand over time—usually by
changing requirements, specifications, and priorities.
Five of the Most Common Causes of Scope Creep
• Poor requirement analysis

• Not involving users early enough
• Underestimating project complexity
• Lack of change control
• Gold plating
4.2 Step 2: Establishing Project Priorities
Three major criteria (trade-offs) that a project manager has to manage

are:
• Cost (budget)
• Time (schedule)
• Performance (scope)
A project manager can manage the project trade-offs by completing a
priority matrix for the project and identifying which criterion is:
• Constrain—original parameter is fixed.
• Enhance—a criterion should be optimized.
• Accept—a criterion is tolerable not to meet the original parameter.
Project Management Trade-offs

Project Priority Matrix for the Development of a New Wireless Router

4.3 Step 3: Creating the Work Breakdown Structure
Work Breakdown Structure (WBS)

• Is a hierarchical outline of the project with different levels of detail.
• Identifies the products and work elements involved in a project.
• Defines the relationship of the final deliverable (the project) to its sub-
deliverables, and, in turn, their relationships to work packages.
• Serves as a framework for tracking cost and work performance.
• Is best suited for design and build projects that have tangible
outcomes rather than process-oriented projects.
Hierarchical Breakdown of the WBS
* This breakdown groups work packages by type of work within a deliverable and
allows assignment of responsibility to an organizational unit. This extra step
facilitates a system for monitoring project progress (discussed in Chapter 13).
How WBS Helps the Project Manager
• Assures project managers that all products and work elements are identified, to
integrate the project with the current organization, and to establish a basis for
control.
• Facilitates the evaluation of cost, time, and technical performance at all levels in
the organization over the life of the project.
• Provides management with information appropriate to each organizational level.
• Helps project managers to plan, schedule, and budget the project.
• Helps in the development of the organization breakdown structure (OBS), which
assigns project responsibilities to organization units and individuals.
• Provides the opportunity to “roll up” (sum) the budget and actual costs of the
smaller work packages into larger work elements.
• Defines communication channels and assists in understanding and coordinating
many parts of the project.
Work Breakdown Structure

A Work Package
• Is the lowest level of the WBS.

• Is a short-duration task that has a definite start and stop point,
consumes resources, and represents cost.
• Should not exceed 10 workdays or one reporting period.
• Should be as independent of other work packages of the project as
possible.
• Is the basic unit used for planning, scheduling, and controlling the
project.
Each Work Package in the WBS
• Defines work (what).

• Identifies time to complete a work package (how long).
• Identifies a time-phased budget to complete a work package (cost).
• Identifies resources needed to complete a work package (how much).
• Identifies a single person responsible for units of work (who).
• Identifies monitoring points for measuring progress (how well).
4.4 Step 4: Integrating the WBS with the Organization
Organization Breakdown Structure (OBS)

• Depicts how the firm has organized to discharge work responsibility.
• Provides a framework to summarize organization unit work
performance.
• Identifies the organization units responsible for work packages.
• Ties the organizational unit to cost control accounts.
The intersection of work packages and the organization unit creates a

project cost point or cost account that integrates work and responsibility.
Integration of WBS and OBS

4.5 Step 5: Coding the WBS for the Information System
WBS Coding System

• Defines
• Levels and elements in the WBS
• Organization elements
• Work packages
• Budget and cost information
• Allows reports to be consolidated at any level in the structure.
WBS Dictionary
• Provides detailed information about each element in the WBS.
Coding the WBS
© McGraw-Hill Education EXHIBIT 4.1 22

4.6 Process Breakdown Structure
Process Breakdown Structure (PBS)

• Is used for process-oriented projects.
• Is often referred to as the “waterfall method” in the software industry.
Process-oriented project
• Is a project that the final outcome is a product of a series of steps and
phases.
• Is a project that evolves over time with each phase affecting the next
phase.
• Is a project that is driven by performance requirements, not by
plans/blueprints.
PBS for Software Development Project

4.7 Responsibility Matrices
Responsibility Matrix (RM)

• Is also called a linear responsibility chart.
• Summarizes the tasks to be accomplished and who is responsible for
what on the project.
• Lists all the project activities and the participants responsible for each
activity.
• Clarifies interfaces between units and individuals that require
coordination.
• Provides a mean for all participants in a project to view their
responsibilities and agree on their assignments.
• Clarifies the extent or type of authority exercised by each participant.
Responsibility Matrix for a Market Research Project

Responsibility Matrix for the Conveyor Belt Project

4.8 Project Communication Plan
Project communication plans address the following questions:

• What information needs to be collected and when?
• Who will receive the information?
• What methods will be used to gather and store information?
• What are the limits, if any, on who has access to certain kinds of
information?
• When will the information be communicated?
• How will it be communicated?
Steps for Developing a Communication Plan
1. Stakeholder analysis—identify the target groups.

2. Information needs—project status reports, deliverable issues,
changes in scope, team status meetings, gating decisions, accepted
request changes, action items, milestone reports, etc.
3. Sources of information—where does the information reside?
4. Dissemination modes—hardcopy, e-mail, teleconferencing,
SharePoint, and a variety of database sharing programs.
5. Responsibility and timing—determine who will send out the formation
and when.
Stakeholder Communications

Shale Oil Research Project Communication Plan

Key Terms
Acceptance criteria Product scope description

Cost account Project charter
Gold plating Responsibility matrix
Milestone Scope creep
Organization breakdown structure (OBS) Scope statement
Priority matrix WBS dictionary
Process breakdown structure (PBS) Work breakdown structure (WBS)
Work package
www.mheducation.com
COMMMGT 9330A
Session 5
Project Cost Management
4th October 2023 COMMMGT 9330A

PROJECT COST MANAGEMENT
COMMMGT 9330A
Project Cost Management includes the

processes involved in planning, estimating,
budgeting, financing, funding, managing,
and controlling costs so that the project can
be completed within the approved budget.
COMMMGT 9330A
The Project Cost Management processes are:
1
PLAN COST • process of defining how the project costs will be estimated,
budgeted, managed, monitored, and controlled.
MANAGEMENT
2
ESTIMATE • process of developing the approximation of the monetary
resources needed to complete project work.
COSTS
DETERMINE • process of aggregating the estimated costs of individual
3 activities or work packages to establish an authorized cost
BUDGET baseline.
4
CONTROL • process of monitoring the status of the project to update the
project costs and manage changes to the cost baseline.
COSTS
COMMMGT 9330A
• Project cost is one of the constraints to planning a project
• Project Sponsors and other key stakeholders tend to focus on project

costs because of the impact of cost overruns.
• Higher project costs may have one or more of the following impacts:
o A change to the project’s Business Case justification, leading to the potential
cancellation of the project
o Deferral of other projects due to reduced availability of funding
o Fewer funds available for expenditure within the organization
o Reduction of the company’s profit (in for-profit organizations) or increased
deficits and/or tax increases (in government or not-for-profit organizations)
COMMMGT 9330A
There are two main steps when planning for project cost:
@ Dave C. Barrett
COMMMGT 9330A
KEY CONCEPTS FOR COST MANAGEMENT
• Primarily concerned with the cost of the resources

needed to complete project activities
• Should consider the effect of project decisions on the
subsequent recurring cost of using, maintaining, and
supporting the product, service, or result of the project.
COMMMGT 9330A
TAILORING
CONSIDERATIONS
Each project is unique, and the project manager needs to tailor the way Cost
Management processes are applied.
Considerations for tailoring include but are not limited to:
KNOWLEDGE • does the organization have a formal knowledge management and
financial database repository that a project manager is required to use and
MANAGEMENT that is readily accessible?
ESTIMATING AND • does the organization have existing formal or informal cost
estimating and budgeting-related policies, procedures, and
BUDGETING guidelines?
EARNED VALUE • does the organization use earned value management in managing
MANAGEMENT projects?
USE OF AGILE • does the organization use agile methodologies in managing projects?
APPROACH How does this impact cost estimating?
• does the organization have formal or informal audit and governance

GOVERNANCE policies, procedures, and guidelines?
COMMMGT 9330A
PLAN COST
MANAGEMENT
Tools & Techniques
• Project charter
❑ Expert judgment
• Project management plan
Inputs Outputs • Cost Management Plan
• Schedule management plan ❑ Data analysis
• Risk management plan
• Enterprise environmental factors ❑ Meetings
Plan Cost Estimate Determine Control

Management Budget Costs
Costs
PLAN
• Created as part of the Develop Project Management
Plan process in Integration Management
• Sets out the format, establishes the criteria for;
• Planning
• Structuring
• Estimating
• Budgeting
• Controlling project costs
• Based upon the needs, the plan can be;
• Formal or informal
• Highly detailed, or broadly framed
COMMMGT 9330A
CONTROL
THRESHOLDS
• Thinking ahead how costs will
be controlled
• Control Thresholds are the
amount of variation allowed
before taking action
• Determined in planning while
creating the Cost
Management Plan
• Thresholds are normally
expressed as percentage
deviations (%∑) from the
baseline plan
COMMMGT 9330A
ESTIMATE COSTS
Quantitative assessment of the likely costs for resources
required to complete the activity.
@ Dave C. Barrett
COMMMGT 9330A
ESTIMATE COSTS Direct Cost
Indirect
Fixed Cost
Variable
Sunk Cost
Cost Cost
Everything that is a Already incurred,

Not specifically
Directly linked to one-off charge and Charges that any of the
linked but are the
doing the work of is not linked to how change with the previously
cost of doing
the project long your project length of the project discussed costs.
business overall
goes for. Money is gone!
Project Management Workflow, Dan Epstein and Rich Maltzman
Examples: Heating, Examples: Having

Examples: Hiring Cooling, Lighting, spent $1M,
specialized Office space rental, Examples: One-time spending another
Examples: Staff
contractors, buying stocking the advertisement cost $250K to deliver
salaries, Machine
software licenses, communal coffee to bring in subject something not of
rentals, etc.
commissioning new machine, etc. matter experts, etc. value to the
building company is wasting
that $250K
Other Examples:
Other Examples: Other Examples: Other Examples: Other Examples: Marketing /
Project resources, Management fees, Salaries, Rentals, Work, Material, Advertising cost,
Licenses, Software HR, General fees Machinery, Tooling Consultant, Energy R&D cost, Training
cost, Hiring cost
COMMMGT 9330A
ESTIMATE COSTS
Tools & Techniques
❑ Expert Judgment
• Project management plan ❑ Analogous estimating
• Cost management plan
• Quality management plan ❑ Parametric estimating • Cost estimates
• Scope baseline • Basis of estimates
❑ Bottom-up estimating
• Project documents Inputs Outputs • Project documents
• Lessons learned register ❑ Three-point estimating updates
• Project schedule
❑ Data analysis – Assumption log
• Resources requirements
• Risk register ❑ Alternatives analysis
– Risk register
• Enterprise environmental factors ❑ Reserve analysis
• Organizational process assets ❑ Cost of quality
❑ Project management
information system
❑ Decision making
❑ Voting

Costs
COMMMGT 9330A
ENTERPRISE ENVIRONMENTAL FACTORS
MARKET • Products, Services, Results

CONDITIONS • Supply and Demand
PUBLISHED • Sellers’ lists of Costs / Rates / Prices

COMMERCIAL • Human Resource Costs
• Costs of Materials and Equipment
INFORMATION
EXCHANGE • For large-scale projects that extend multiple years with

multiple currencies, the fluctuations of currencies and
RATES AND inflation need to be understood and built into the
INFLATION Estimate Cost process.
Inc.
COMMMGT 9330A
TOOLS AND
TECHNIQUES
COMMMGT 9330A
BUILD BUDGET AND CONTROL COSTS
COMMMGT 9330A
DETERMINE
BUDGET
Determine Budget is the process of aggregating the estimated
costs of individual activities or work packages to establish an
authorized cost baseline.
The key benefit of this process is that it BUDGET
determines the cost baseline against which
project performance can be monitored
and controlled.
COMMMGT 9330A
DETERMINE
BUDGET
Tools & Techniques
❑ Expert Judgment
• Project management plan ❑ Analogous estimating
• Cost management plan
• Quality management plan ❑ Parametric estimating • Cost estimates
• Scope baseline
❑ Bottom-up estimating • Basis of estimates
• Project documents Inputs Outputs • Project documents
• Lessons learned register ❑ Three-point estimating updates
• Project schedule
❑ Data analysis – Assumption log
• Resources requirements
• Risk register ❑ Alternatives analysis
– Risk register
• Enterprise environmental factors ❑ Reserve analysis
• Organizational process assets ❑ Cost of quality
information system
❑ Decision making
❑ Voting

Costs
COMMMGT 9330A
COST AGGREGATION
Contingency Reserves are
kept aside for “known
unknowns” risks captured in the
risk register and controlled by
project manager
Management Reserves are kept

aside for “unknown unknowns”
risks not captured in the risk
register and controlled by
management as a buffer against
unknown risks
COMMMGT 9330A
PROJECT FUNDING
COMMMGT 9330A
BAC – Budget at Completion
COMMMGT 9330A
CONTROL
COSTS
Control means measure
• You measure and measure and measure
• Follow the cost management plan
• You need to have an “attitude” of
control
• It is your project and your career
• Be assertive and make sure the project
goes according to the plan
• This process is performed throughout the
project.
COMMMGT 9330A
INCREMENTAL
MILESTONE
COMMMGT 9330A
CONTROL
COSTS
Tools & Techniques
• Project management plan • Work performance information

• Performance measurement baseline ❑ Expert judgment
Outputs • Cost forecasts
• Cost management plan Inputs ❑ Data analysis • Change requests
• Cost baseline ❑ Earned value analysis
• PM plan updates
• Project documents ❑ Variance analysis
–Cost management plan
❑ Trend analysis
• Lessons learned register
–Cost baseline
❑ Reserve analysis
• Work performance data –Performance measurement baseline
❑ To-complete performance
• Project funding requirements
index •Project documents updates
• Organizational process assets –Assumption log
information system –Basis of estimates
• Cost estimates
–Lessons learned register
–Risk register
Management Costs Budget Costs
COMMMGT 9330A
EARNED VALUE
MEASUREMENT
• EVM integrates cost, time, and the work done
• Scope, Schedule, and Cost baselines constitute Performance
Measurement Baseline
• Earned Value will lead to budget forecasts, change requests,
and other items that will need to be communicated
• EV is an effective tool for measuring performance and
determining the need to request changes
COMMMGT 9330A
EARNED VALUE
TERMS
Earned Value (EV):

o As of today, what is the estimated value of the work actually
accomplished?
EV = BAC* x Actual % Complete
Planned Value (PV):

o As of today, what is the estimated value of the work planned to be
done?
PV = BAC* X Planned % Complete
*BAC – Budget At
Completion
COMMMGT 9330A
EARNED VALUE TERMS
(Cont.)
Actual Cost (Total Cost) (AC):

• As of today, what is the actual cost incurred for the
work accomplished
Budget at Completion (The Budget) (BAC):

• How much did we budget for the total project effort?
COMMMGT 9330A
EARNED VALUE
TERMS
Estimate At Completion
Project Budget Base
Performance Measurement Base Budget At Completion
Estimate To Completion
Management Reserve (MR) is a portion of the Project Budget Base (PBB) withheld for
management control purposes rather than being identified and distributed to
accomplish specific tasks.
Performance Measurement Baseline (PMB) - PMB equals the total allocated budget
less MR
COMMMGT 9330A
EARNED VALUE
TERMS
Estimate at Completion (EAC):
• What do we currently expect the total project to cost (a forecast)
Estimate to Complete (ETC):

• From this point on, how much more do we expect it to cost to finish the
project (a forecast)
ETC = EAC-AC
Variance at Completion (VAC):
• As of today, how much over or under budget do we expect to be at the end of
the project?
VAC = BAC-EAC
COMMMGT 9330A
EARNED VALUE
TERMS
COST VARIANCE (CV)
CV = EV – AC
• Negative is over budget
• Positive is under budget
SCHEDULE VARIANCE (SV)

SV = EV – PV
• Negative is behind schedule
• Positive is ahead of schedule
COMMMGT 9330A
EARNED VALUE
TERMS
COST PERFORMANCE INDEX (CPI)
CPI = EV / AC
• We are getting $ ------ worth of work out of every $ 1 spent
• Funds are or are not being used efficiently
SCHEDULE PERFORMANCE INDEX (SPI)

SPI = EV / PV
• We are (only) progressing at ----- percent of the rate originally planned
COMMMGT 9330A
EARNED VALUE
TERMS
ESTIMATE AT COMPLETION (EAC)
• As of now, how much do we expect the total project to
cost? i.e., $ ----------
• There are many ways to calculate EAC, depending on
the assumptions made
• The purpose of the formulas really is to create forecasts
based on past performance of the project
COMMMGT 9330A
EARNED VALUE
TERMS
ESTIMATE AT COMPLETION (EAC):
o AC + Bottom up ETC:
• Actual + New estimate for the remaining work.
• Used when the original estimate was fundamentally flawed
o BAC/Cumulative CPI:
• Used if no variances from the BAC have occurred or you will continue
at the same rate of spending
COMMMGT 9330A
EARNED VALUE
TERMS
o AC+(BAC-EV):
• Calculates actual to date plus remaining budget.
• Used when current variances are thought to be atypical of
the future
• AC plus the remaining value of work to perform
COMMMGT 9330A
EARNED VALUE
TERMS
o AC + [(BAC-EV) / (Cumulative CPI x Cumulative SPI)]:
• Calculates actual to date plus the remaining budget modified
by performance
• Used when current variances are thought to be typical of the
future
• Assumes poor cost performance and a need to hit a firm
completion date
COMMMGT 9330A
EARNED VALUE
TERMS
FORECASTING
• Using the information, you have about the project at a given time
and predict how close it will come to its goals if it keeps going
the way it has been
• Forecasting uses earned value numbers to help you come up
with preventive and corrective actions that can keep your
project on the right track
COMMMGT 9330A
EARNED VALUE
TERMS
TO-COMPLETE PERFORMANCE INDEX
• TCPI is a calculation that you can use to help you figure out how
well your project needs to perform in the future in order to stay
on budget
• If the cumulative CPI falls below the baseline plan, all future work
of the project will need to immediately be performed in the range
of the TCPI (BAC)
COMMMGT 9330A
TO-COMPLETE PERFORMANCE INDEX (TCPI)
COMMMGT 9330A
PERFORMANCE
REVIEWS
• Reviews are meetings where the project team reviews performance
data to examine the variance between actual performance and
the baseline
• Earned value management (EVM) is used to calculate and track
the variance
• Over time, these meetings are a good place to look into trends in
the data
COMMMGT 9330A
VARIANCE
ANALYSIS
Throughout your project, you are looking at how you are doing
as compared to your plan
The variance between planned and actual performance needs
to be carefully analyzed so you can head off problems before
they make your project go over budget
The percentage range of acceptable variances will tend to
decrease as more work is accomplished
The larger percentage variances allowed at the start of the
project can decrease as the project nears completion
Project Management, the Managerial Process 7E, by Erik W. Larson and Clifford F. Gray – Chapter 13, Page 468-469
PMI, PMBOK, PMP, and CAPM are registered marks of Project Management Institute, Inc. COMMMGT 9330A
PROJECT MANAGEMENT SOFTWARE
• Software packages can be used to track your budget and
make it easier to know where you might run into trouble
• Monitors the three EVM dimensions (PV, EV, AC)
• Displays graphical trends
• Forecasts a range of possible final project results
COMMMGT 9330A
REFERENCES
Rosenwein
• Successful Project Management seventh Edition by Jack Gido, James P. Clements & Rose M.
Baker
COMMMGT 9330A
COMMMGT 9330A
Session 4
Project Scope Management
4th October 2023 COMMMGT 9330A

COMMMGT 9330A
WHAT IS PROJECT SCOPE MANAGEMENT?
• Scope refers to all the work involved in creating the
products of the project and the processes used to
create them
• A deliverable is a product produced as part of a
project, such as hardware or software, planning
documents, or meeting minutes
• Project scope management includes the processes
involved in defining and controlling what is or is not
included in a project
COMMMGT 9330A
How is project scope defined?
COMMMGT 9330A
7
Project Scope
o While the Project Charter defines the project’s goals and objectives, it does not
provide detailed information about what will be produced during the project. Therefore,
additional planning should be performed to provide a clear definition of the
requirements and details of the project’s scope.
Two main steps when planning the project scope;

o Determine the list of items needed for the project
– These items are documented in the Project Requirements Document
o Determine what the project will produce

o The output of this step consists of two documents:
– Project Scope Statement
– Work Breakdown Structure.
COMMMGT 9330A
8
COMMMGT 9330A
9
SCOPE PLANNING AND THE SCOPE MANAGEMENT
PLAN
• The scope management plan is a document that includes
descriptions of how the team will prepare the project scope
statement, create the WBS, verify the completion of the project
deliverables, and control requests for changes to the project
scope
• Key inputs include the project charter, preliminary scope
statement, and project management plan
• It should be reviewed with the project sponsor to make sure the
approach meets expectations
COMMMGT 9330A
PROJECT MANAGEMENT PLAN
Project
management plan
components
include but are not
limited to:
COMMMGT 9330A
Define Project Scope
Project Scope Project Scope Statement
▪Defines what needs done ▪Usually contains

▪ Customer requirements
▪Includes ▪ Statement of Work (SOW)
▪ Items contained in project charter, ▪ Deliverables
RFP, proposal
▪ Acceptance Criteria
▪ More detail
▪ Work Breakdown Structure
▪Establishes a common
understanding of scope with ▪Establishes baseline
stakeholders ▪Change control system to avoid
scope creep
COMMMGT 9330A
DEFINING THE PROJECT
SCOPE
Project Scope
o Define the (end) result or mission of the project—a product or service for the
client/customer

o Clearly define the deliverable(s) for the end user
o Also called statements of work (SOW)
o Focusses on the project for successful completion of its goals/objectives
o Used by project owner and participants as a planning tool and for measuring
project success
COMMMGT 9330A
Project Requirements
oThe PM needs to document all the

requirements of the project.
oDescribe the characteristics of the
final deliverable, whether it is a
product or a service
oOnce the requirements are known,
the scope of the project may be
defined.
Techniques for gathering requirements
COMMMGT 9330A
BEST PRACTICES FOR AVOIDING SCOPE PROBLEMS
1. Keep the scope realistic: Don’t make projects so large that they can’t be
completed; break large projects down into a series of smaller ones
2. Involve users in project scope management: Assign key users to
the project team and give them ownership of requirements definition and scope
verification
3. Follow good project management processes: As described in this
chapter and others, there are well-defined processes for managing project
scope and other aspects of projects
COMMMGT 9330A
SUGGESTIONS FOR IMPROVING USER INPUT
• Develop a good project selection process and insist that sponsors are
from the user organization
• Have users on the project team in important roles
• Have regular meetings with defined agendas, and have users sign off
on key deliverables presented at meetings
• Deliver something to users and sponsors on a regular basis
• Don’t promise to deliver when you know you can’t
• Co-locate users with developers
COMMMGT 9330A
USING SOFTWARE TO ASSIST IN PROJECT SCOPE
MANAGEMENT
• Word-processing software helps create several scope-related
documents
• Spreadsheets help to perform financial calculations and weigh
scoring models, and develop charts and graphs
• Communication software like e-mail and the Web help clarify
and communicate scope information
• Project management software helps in creating a WBS, the
basis for tasks on a Gantt chart
• Specialized software is available to assist in project scope
management
COMMMGT 9330A
Scope Inputs / Tools + Techniques / Outputs
TOOLS/TECHNIQUE
OUTPUTS
INPUTS S
Calls on past project

experience
Scope Management Templates

Project Charter (SOS, WBS, Scope Mgmt.,
Plan) Scope Management Plan
Organizational Memory
Project Plan
Uses communication skills
Project Manager
(for negotiation/educating
clients)
• The project manager gathers initial project facts from the project
charter.
• In addition, background information on the stakeholders, project
sponsor, customers, competitors, suppliers, regulators, users,
management strategic plan, existing business model and rules,
etc. assist in creating the vision of the final product/service, and
consequently, the project scope
COMMMGT 9330A
Scope Management Policy
How will we define scope for this project?

How will strategic alignment be ensured?
How will business need be monitored and
addressed?
How will requirements (and associated
stakeholders' reaction to them) be traced and
managed?
How will requirement priorities and stakeholder
conflicts be managed and resolved?
How will change to scope be processed and

managed?
COMMMGT 9330A
KEY CONCEPTS OF
SCOPE
• PRODUCT SCOPE:
o What features and functions are wanted in a product
• PROJECT SCOPE:
o The work that needs to be accomplished to deliver a
product, service, or result
COMMMGT 9330A
PROJECT SCOPE MANAGEMENT
PROCESSES
Plan Scope Management:
o Deciding how the scope will be defined, verified, and controlled
Collect Requirements
o The process of determining, documenting, and managing stakeholder
needs and requirements to meet objectives.
Scope definition:
o Reviewing the project charter and preliminary scope statement and adding
more information as requirements are developed and change requests are
approved
COMMMGT 9330A
Creating the WBS:

o Subdividing the major project deliverables into smaller, more manageable
components
Scope Verification:
o Normalizing acceptance of the project scope by key project stakeholders
Scope Control:
o Controlling changes to project scope which impact project cost and time
COMMMGT 9330A
2
2
WORK
BREAKDOWN STRUCTURE
COMMMGT 9330A
CREATE WBS
• Process of subdividing project deliverables and project work into
smaller, more manageable components.
• A hierarchical outline (map) that identifies the products and work
elements involved in a project
• Defines the relationship of the final deliverable (the project) to its
sub-deliverables, and in turn, their relationships to work packages.
• Provides a framework of what has to be delivered. Performed
once/at predetermined points.
COMMMGT 9330A
Create Work Breakdown Structure
• Deliverable-oriented hierarchical decomposition
• Organize project work/deliverables - logical groupings
• Subdivide into more manageable components
• Deliverable is the output of the work package
• Resource requirements and durations can be assigned
• Accountability can be assigned; PM can monitor and control
• Decomposition is subdividing project deliverables into smaller
pieces
• A work package is a task at the lowest level of the WBS
• Tasks on a WBS represent work that needs to be done to
complete the project, not specifications (e.g., type of server)
COMMMGT 9330A
WBS
• Graphic Chart
• Indentured List
COMMMGT 9330A
THE
WBS
• Viewing a project as a series of

deliverables.
• DO NOT include activities in the WBS;
• this will come later - during the
project schedule
COMMMGT 9330A
CREATING THE
WBS
• The WBS defines the scope of the project and breaks the
work down into components that can be scheduled,
estimated, and easily monitored and controlled.
• Decompose a complicated task into smaller tasks, until you
reach a level that cannot be further subdivided.
• Stop breaking down the work when you reach a low enough
level to perform an estimate of the desired accuracy.
COMMMGT 9330A
EXAMPLE
WBS
COMMMGT 9330A
HIERARCHICAL BREAKDOWN OF THE WBS
* This breakdown groups work packages by type of

work within a deliverable and allows the assignment
of responsibility to an organizational unit. This extra
step facilitates a system for monitoring project
progress (discussed in Chapter 13).
COMMMGT 9330A
PROJECT SCOPE
STATEMENT
• The Project Scope Statement, WBS, and WBS Dictionary make the
Scope Baseline
• Project Scope Statement includes:
• Constraints and Assumptions
• Product Scope
• Deliverables
• Exclusions
• Acceptance Criteria
• Risks
COMMMGT 9330A
PROJECT SCOPE
STATEMENT
The detailed project scope statement, either directly or by reference to other documents, includes the
following:
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Sixth Edition, Project Management Institute, Inc., 2017. Page 154.
PMI, PMBOK, PMP, and CAPM are registered marks of Project Management Institute, Inc.
COMMMGT 9330A
WBS DICTIONARY
Provides a detailed description of the components in the
WBS, including work packages, and control accounts
It includes:
o Account Codes
o Description of Work
o Responsible Entity
PMI, PMBOK, PMP, and CAPM are registered marks of Project Management Institute, Inc.
COMMMGT 9330A
THE WBS DICTIONARY AND SCOPE BASELINE
• Many WBS tasks are vague and must be explained more so
people know what to do and can estimate how long it will
take and what it will cost to do the work
• A WBS dictionary is a document that describes detailed
information about each WBS item
• The approved project scope statement + its WBS + WBS
dictionary = scope baseline, which is used to measure
performance in meeting project scope goals
CREATING A WBS & WBS
DICTIONARY
• Project team members should be involved in developing the
WBS to ensure consistency and buy-in
• Each WBS item must be documented in a WBS dictionary to
ensure an accurate understanding of the scope of work
included and not included in that item
• The WBS must be a flexible tool to accommodate inevitable
changes while properly maintaining control of the work content
in the project according to the scope statement
APPROACHES TO DEVELOPING A
WBS’s
• Using guidelines: some organizations, provide guidelines for
preparing WBSs
• The analogy approach: review WBSs of similar projects and tailor
them to your project
• The top-down approach: start with the largest items of the project
and break them down
• The bottom-up approach: start with the specific tasks and roll
them up
• Mind-mapping approach: mind mapping is a technique that uses
branches radiating out from a core idea to structure thoughts and
ideas
COMMMGT 9330A
SCOPE VERIFICATION
It is very difficult to create a good scope statement and WBS for a project
It is even more difficult to verify project scope and minimize scope changes
Scope verification involves formal acceptance of the completed project scope
by the stakeholders
Acceptance is often achieved by a customer inspection and then sign-off on key
deliverables
SCOPE
CONTROL
Scope control involves controlling changes to the project scope
The goals of scope control are to:
o Influence the factors that cause scope changes
o Assure changes are processed according to procedures developed as part of
integrated change control
o Manage changes when they occur
o Tools for performing scope control include a change control system and
configuration management
Variance is the difference between planned and actual performance
VALIDATE
8
SCOPE
Validate Scope is the process of formalizing acceptance of
the completed project deliverables.
Key Benefit: brings objectivity to the acceptance process

and increases the probability of final product, service, or
result acceptance by validating each deliverable.
This process is performed periodically throughout

the project as needed.
9
DIFFERENCE BETWEEN QUALITY CONTROL AND
VALIDATE SCOPE
In Quality Control (GC), the quality In Validate Scope, the customer

control department checks to see if checks and hopefully accepts
the quality requirements specified the deliverables
for the deliverables are met and
make sure the work is correct.
CONTROL
0
SCOPE
Control Scope is the process of monitoring the status

of the project and product scope and managing
changes to the scope baseline.
Key Benefit of this process is that the scope baseline

is maintained throughout the project. This process is
performed throughout the project.
Involvesmeasuring project and product scope

performance and managing scope baseline
changes
Inc. COMMMGT 9330A
SCOPE1
CREEP
• The uncontrolled expansion of
product or project scope without
adjustments to time, cost, and
resources is referred to as scope
creep.
• This can occur when the scope of a
project is not properly defined,
documented, or controlled.
• It is generally considered harmful.
• If budget, resources, and schedule
are increased along with the scope,
the change is usually considered an
acceptable addition to the project,
and the term “scope creep” is not
used.
COMMMGT 9330A
GOLD 2
PLATING
• Refers to continuing to work on a project or task well past the point where
the extra effort is worth the value it adds (if any).
• Act of giving the customer more than what he originally asked for;
something that wasn’t scoped, and often something that he/she may not
want. So why do it?
• Mostly without the knowledge of the Project Manager
• Gold Plating is unethical and not allowed as per the Project
Management Code of Conduct.
WHICH 3PROCESS COMES FIRST?
• There is no “right order” for the control scope and scope verification
• Control Scope can occur either before and after the scope
verification/validation
• The goal of Control Scope is updating the scope, plan, baseline,
and WBS info
REFERENCES
Rosenwein
• Successful Project Management seventh Edition by Jack Gido, James P. Clements & Rose M.
Baker
COMMMGT 9330A
Chapter Three
Organization: Structure
and Culture
Where We Are Now
Learning Objectives
03-01 Identify different project management structures and understand

their strengths and weaknesses.
03-02 Distinguish three different types of matrix structures and
understand their strengths and weaknesses.
03-03 Describe how project management offices (PMOs) can support
and improve project execution.
03-04 Understand organizational and project considerations that should
be considered in choosing an appropriate project management
structure.
03-05 Appreciate the significant role that organizational culture plays in
managing projects.
03-06 Interpret the culture of an organization.
03-07 Understand the interaction between project management
structure and the culture of an organization.
Chapter Outline
3.1 Project Management Structures

3.2 Project Management Office (PMO)
3.3 What Is the Right Project Management Structure?
3.4 Organizational Culture
3.5 Implications of Organizational Culture for Organizing Projects
3.1 Project Management Structures
Three different project management structures are:

1. Functional organization
2. Dedicated project teams
3. Matrix structure
• Weak matrix
• Balanced matrix
• Strong matrix
Organizing Projects within the Functional Organization
• Top management decides to implement the project, and different

segments of the project are distributed to appropriate areas.
• Coordination is maintained through normal management channels.
• It is commonly used when one functional area plays a dominant role in
completing the project or has a dominant interest in the success of the
project.
Functional Organizations

Advantages and Disadvantages of using Functional
Organization to Administer and Complete projects
Advantages Disadvantages
1. No change 1. Lack of focus
2. Flexibility 2. Poor integration
3. In-depth expertise 3. Slow
4. Easy post-project transition 4. Lack of ownership
Organizing Projects as Dedicated Teams
• Dedicated project teams operate as units separate from the rest of the
parent organization.
• A full-time project manager is designated to pull together a core group
of specialists who work full time on the project.
• The project manager recruits necessary personnel from both within
and outside the parent company.
• In a projectized organization where projects are the dominant form of
business, the entire organization is designed to support project teams.
• “Projectitis” is referred to as a negative dimension to dedicated project
teams. A we-they attitude can emerge between project team
members and the rest of the organization.
Dedicated Project Team

Projectized Organization Structure

Strengths and Weaknesses of the Dedicated Project Team Approach
Strengths Weaknesses
1. Simple 1. Expensive
2. Fast 2. Internal strife
3. Cohesive 3. Limited technological expertise
4. Cross-functional integration 4. Difficult post-project transition
Organizing Projects within a Matrix Arrangement
• Matrix management is a hybrid organizational form in which horizontal project

management structure is overlaid on the normal functional hierarchy.
• There are usually two chains of command, one along functional lines and the
other along project lines.
• Project participants report simultaneously to both functional and project

managers.
• The matrix structure is designed to utilize resources optimally.
• Individuals work on multiple projects as well as being capable of performing

normal functional duties.
• It attempts to achieve greater integration by creating and legitimizing the

authority of a project manager.
• It provides dual focus between functional/technical expertise and project

requirements.
Matrix Organization Structure

Division of Project Manager and Functional Manager
Responsibilities in a Matrix Structure

Different Matrix Forms
Weak matrix
• This form is very similar to a functional approach with the exception
that there is a formally designed project manager responsible for
coordinating project activities.
• Functional managers are responsible for managing their segment of
the project.
• The project manager acts as a staff assistant who draws the
schedules and checklists, collects information on the status of the
work, and facilitates project completion.
Different Matrix Forms (Continued)
Balanced matrix
• The project manager is responsible for defining what needs to be
accomplished. The project manager establishes the overall plan for
completing the project, integrates the contribution of the different
disciplines, set schedules, and monitors progress.
• The functional managers are concerned with how it will be
accomplished. The functional managers are responsible for assigning
personnel and executing their segment of the project according to the
standards and schedules set by the project manager.
Different Matrix Forms (Continued)
Strong matrix
• The project manager controls most aspects of the project, including
scope trade-offs and assignment of functional personnel. The project
manager controls when and what specialists do and has final say on
major project decisions.
• The functional managers have title over their people and are consulted
on a need basis. The functional managers serve as subcontractors for
the project.
Advantages and Disadvantages of Matrix Management
Advantages Disadvantages
1. Efficient 1. Dysfunctional conflict
2. Strong project focus 2. Infighting
3. Easier post-project transition 3. Stressful
4. Flexible 4. Slow
3.2 Project Management Office (PMO)
• Is a centralized unit within an organization or a department that

oversees and supports the execution of projects.
• Plays a critical role in helping matrix systems mature into more
effective project delivery platforms.
• Can be characterized in different kinds:
• Weather station—tracks and monitors project performance.
• Control tower—improves project execution.
• Resource pool—provides the organization with a cadre of trained
project managers and professionals.
• Command and control center—has direct authority over the project.
3.3 What Is the Right Project Management Structure?
Organization Considerations
• How important is the project management to the success of the firm?
• What percentage of core work involves projects?
• What level of resources are available?
Project Considerations
• Size of project
• Strategic importance
• Novelty and need for innovation
• Need for integration (number of departments involved)
• Environmental complexity (number of external interfaces)
• Budget and time constraints
• Stability of resource requirements
3.4 Organizational Culture
Organizational Culture Defined

• Is a system of shared norms, beliefs, values, and assumptions that
blinds people together, thereby creating shared meanings.
• Reflects the “personality” of the organization.
• Performs several important functions in organizations.
• Provides a sense of identity for its members
• Helps legitimize the management system
• Clarifies and reinforces standards of behavior
• Helps create social order
Key Dimensions Defining an Organization’s Culture

Identifying Cultural Characteristics
• Study the physical characteristics of an organization.

• Read about the organization.
• Observe how people interact within the organization.
• Interpret stories and folklore surrounding the organization.
Organizational Culture Diagnosis Worksheet

3.5 Implications of Organizational Culture for Organizing Projects
• Project managers interact with:

• The culture of their parent organizations as well as the subcultures
of various departments.
• The project’s clients or customer organizations.
• Other organizations connected to the project such as suppliers and
vendors, subcontractors, consulting firms, government and
regulatory agencies, and community groups.
• “A riverboat trip” is a metaphor describing the relationship between
organizational culture and project management. Culture is the river
and the project is the boat.
Cultural Dimensions of an Organization Supportive of Project Management

Key Terms
Balanced matrix
Dedicated project team
Matrix
Organizational culture
Projectitis
Projectized organization
Project management office (PMO)
Strong matrix
Weak matrix
www.mheducation.com
COMMMGT 9330A
Session 3
Organization Structure & Culture
27th September 2023

COMMMGT 9330A
COMMMGT 9330A
Learning Objectives
• Identify different project management structures and understand their
strengths and weaknesses.
• Three different types of matrix structures and understand their strengths and
weaknesses.
• Describe how project management offices (PMOs) can support and improve
project execution.
• Understand organizational and project considerations that should be considered
in choosing an appropriate project management structure.
• Appreciate the significant role that organizational culture plays in managing
projects.
• Interpret the culture of an organization
• Project Manager Importance
• Project Initiating Process Group
COMMMGT 9330A
Chapter Outline
• Project Management Structures
• Project Management Office (PMO)
• What Is the Right Project Management Structure?
• Organizational Culture
• Implications of Organizational Culture for Organizing Projects
• Project Manager
COMMMGT 9330A
Project Management
Structures
Project Management Structures
Functional
organization
Dedicated
project
teams
Matrix
• Weak matrix
structure • Balanced matrix
• Strong matrix
Organizing Projects within the Functional Organization
• Top management decides to implement the project, and
different segments of the project are distributed to
appropriate areas.
• Coordination is maintained through normal management
channels.
• It is commonly used when one functional area plays a
dominant role in completing the project or has a dominant
interest in the success of the project.
Project Management by Adrienne Watt
COMMMGT 9330A
Projects and Organization Structure
COMMMGT 9330A
Project Organization Chart:
Who Are The Team Members?
COMMMGT 9330A
COMMMGT 9330A
Functional Organizations
• FIGURE 3.1
• Access the text alternative for slide images.
COMMMGT 9330A
Advantages and Disadvantages of Using Functional
Organization to Administer and Complete Projects
• Advantages • Disadvantages
1. No change 1. Lack of focus
2. Flexibility 2. Poor integration
3. In-depth expertise 3. Slow
4. Easy post-project transition 4. Lack of ownership
COMMMGT 9330A
Dedicated Project Team
• FIGURE 3.2 • Access the text alternative for slide images.
COMMMGT 9330A
Organizing Projects as Dedicated Teams
• Dedicated project teams operate as units separate from the rest of the parent
organization.
• A full-time project manager is designated to pull together a core group of specialists
who work full-time on the project.
• The project manager recruits necessary personnel from both within and outside the
parent company.
• In a projectized organization where projects are the dominant form of business, the
entire organization is designed to support project teams.
• “Projectitis” is referred to as a negative dimension to dedicated project teams. A we-
they attitude can emerge between project team members and the rest of the
organization.
COMMMGT 9330A
Strengths and Weaknesses of the Dedicated Project Team
Approach
• Strengths • Weaknesses
1. Simple 1. Expensive
2. Fast 2. Internal strife
3. Cohesive 3. Limited technological
expertise
4. Cross-functional integration
4. Difficult post-project transition
COMMMGT 9330A
Projectized Organization Structure
• FIGURE 3.3
COMMMGT 9330A
Organizing Projects within a Matrix Arrangement
Matrix management is a hybrid organizational form in which a horizontal project
management structure is overlaid on the normal functional hierarchy.
• There are usually two chains of command, one along functional lines and the other along project
lines.
• Project participants report simultaneously to both functional and project managers.
The matrix structure is designed to utilize resources optimally.
• Individuals work on multiple projects as well as being capable of performing normal functional
duties.
• It attempts to achieve greater integration by creating and legitimizing the authority of a project
manager.
• It provides a dual focus between functional/technical expertise and project requirements.
COMMMGT 9330A
Matrix Organization Structure

Division of Project Manager and Functional Manager
Responsibilities in a Matrix Structure
Project Manager Negotiated Issues Functional Manager
What has to be done? Who will do the task? How will it be done?
When should the task be

Where will the task be done?
done?
How much money is Why will the task be done? How will the project involvement
available to do the task? impact normal functional
activities?
How well has the total project Is the task satisfactorily How well has the functional input
been done? completed? been integrated?
• TABLE 3.1
COMMMGT 9330A
• Weak matrix
• This form is very similar to a functional approach with the exception that there is a formally
designed project manager responsible for coordinating project activities.
• Functional managers are responsible for managing their segment of the project.
• The project manager acts as a staff assistant who draws the schedules and checklists, collects
information on the status of the work, and facilitates project completion.
COMMMGT 9330A
• Balanced matrix
• The project manager is responsible for defining what needs to be accomplished.
• The project manager establishes the overall plan for completing the project, integrates the contribution of the
different disciplines, set schedules, and monitors progress.
• The functional managers are concerned with how it will be accomplished.

• The functional managers are responsible for assigning personnel and executing their segment of the project
according to the standards and schedules set by the project manager.
COMMMGT 9330A
• Strong matrix
• The project manager controls most aspects of the project, including scope trade-offs and
assignment of functional personnel.
• The project manager controls when and what specialists do and has final say on major project decisions.
• The functional managers have title over their people and are consulted on a need basis.
• The functional managers serve as subcontractors for the project.
COMMMGT 9330A
Advantages and Disadvantages of Matrix Management
• Advantages • Disadvantages
1. Efficient 1. Dysfunctional conflict
2. Strong project focus 2. Infighting
3. Easier post-project 3. Stressful
transition
4. Slow
4. Flexible
COMMMGT 9330A
Project Management Office (PMO)
• Is a centralized unit within an organization or a department that oversees and
supports the execution of projects.
• Plays a critical role in helping matrix systems mature into more effective project
delivery platforms.
• Can be characterized in different kinds:
• Weather station—tracks and monitors project performance.
• Control tower—improves project execution.
• Resource pool—provides the organization with a cadre of trained project managers and
professionals.
• Command and control center—has direct authority over the project.
COMMMGT 9330A
Project Management Office (PMO)
• Supportive | Degree of control: LOW
• Consultative role to projects
• Providing templates, best practices, training, lessons learned
• Serves as project repository
• Controlling | Degree of control: MODERATE
• Support to projects
• Require compliance namely adoption of frameworks or methodologies
• Use of prescriptive templates, forms, tools, etc.
• Conformance to governance frameworks
• Directive | Degree of control: HIGH
• Take control of the projects directly
• Project Managers directly report to PMO
COMMMGT 9330A
Project Manager
• PMBOK Definition | Person assigned by the performing organization to lead the
team that is responsible for achieving the project objectives
• Mainly involved from initiation to closing
• May be involved in evaluation and analysis activities prior to initiation
• May consult with executives and business unit leaders to advance strategic
objectives, improve organizational performance, or meet customer needs
• May assist in business analysis, business case development, and portfolio
management
• Performs communication between stakeholders, team, and sponsors
• Apt in using soft skills to defuse conflicts and build consensus
COMMMGT 9330A
Project Manager Influence
COMMMGT 9330A
• Technical Project Management | Knowledge, Skills, and • Ways of Working | Apply the right techniques (predictive, agile,
Behaviors related to specific domains of project, program, design thinking, etc.) at the right time, delivering winning results
and portfolio management • Power Skills | Communication, Collaborative leadership, innovative
• Leadership | Knowledge, Skills, and Behaviors needed to mindset, for-purpose orientation, and empathy. A critical component
guide, motivate, and direct a team, to help an organization for making change – maintaining influence with a variety of
achieve its business goals stakeholders
• Strategic & Business Management | Knowledge and • Business Acumen | Understand micro and macro influences in the
expertise in industry and organization that enhance organization and industry, function-specific or domain-specific
performance and better deliver business outcomes knowledge to make good decisions
COMMMGT 9330A
What Is the Right Project Management Structure?
• Organization Considerations
• How important is project management to the success of the firm?
• What percentage of core work involves projects?
• What level of resources are available?

• Project Considerations
• Size of project
• Strategic importance
• Novelty and need for innovation
• Need for integration (number of departments involved)
• Environmental complexity (number of external interfaces)
• Budget and time constraints
• Stability of resource requirements
COMMMGT 9330A
Organizational Culture
• Organizational Culture Defined
• Is a system of shared norms, beliefs, values, and assumptions that blinds people
together, thereby creating shared meanings.
• Reflects the “personality” of the organization.
• Performs several important functions in organizations.
• Provides a sense of identity for its members
• Helps legitimize the management system
• Clarifies and reinforces standards of behavior
• Helps create social order
COMMMGT 9330A
Key Dimensions Defining an Organization’s Culture
COMMMGT 9330A
Identifying Cultural Characteristics
• Study the physical characteristics of an organization.

• Read about the organization.
• Observe how people interact within the organization.
• Interpret stories and folklore surrounding the organization.
COMMMGT 9330A
Organizational Culture Diagnosis Worksheet
• Power Corp.
• I. Physical Characteristics:
• Architecture, office layout, décor, attire
• Corporate HQ is a 20-story modern building—president on top floor. Offices are bigger in the top floors than lower floors. Formal business attire (white shirts, ties, power suits, . .
.). Power appears to increase the higher up you are.
• II. Public Documents:
• Annual reports, internal newsletters, vision statements
• At the heart of the Power Corp. way is our vision . . . to be the global energy company most admired for its people, partnership, and performance.
• Integrity. We are honest with others and ourselves. We meet the highest ethical standards in all business dealings. We do what we say we will do.
• III. Behavior:
• Pace, language, meetings, issues discussed, decision-making style, communication patterns, rituals
• Hierarchical decision making, pace brisk but orderly, meetings start on time and end on time, subordinates choose their words very carefully when talking to superiors, people
rarely work past 6:00 p.m., president takes top-performing unit on a boat cruise each year. . . .
• IV. Folklore:
• Stories, anecdotes, heroines, heroes, villains
• Young project manager was fired after going over his boss’s head to ask for additional funds.
• Stephanie C. was considered a hero for taking complete responsibility for a technical error.
• Jack S. was labeled a traitor for joining chief competitor after working for Power Corp. for 15 years.
• FIGURE 3.6
COMMMGT 9330A
Implications of Organizational Culture for Organizing
Projects
• Project managers interact with:
• The culture of their parent organizations as well as the subcultures of various departments.
• The project’s clients or customer organizations.
• Other organizations connected to the project such as suppliers and vendors, subcontractors,
consulting firms, government and regulatory agencies, and community groups.
• A “riverboat trip” is a metaphor describing the relationship between organizational

culture and project management. Culture is the river, and the project is the boat.
COMMMGT 9330A
Cultural Dimensions of an Organization Supportive of Project
Management
COMMMGT 9330A
Project Initiating Process Group
Processes performed to define a new project or a new phase of an existing project by obtaining authorization
to start the project or phase
COMMMGT 9330A
Project Initiating Process Group | Charter
• Formal authorization of the existence of a project

• Allows Project Manager to apply organizational resources to project activities
• The direct link between strategic objectives and the project
COMMMGT 9330A
Project Initiating Process Group | Identify Stakeholders
• Process of identifying stakeholders

• Documenting 5i’s such as their interests, involvement, interdependencies, influence, impact
• Enables project team necessary information to identify an appropriate focus for stakeholder engagement
• Performed periodically throughout the lifecycle of the project as needed
COMMMGT 9330A
Project Initiating Process Group | Identify Stakeholders
• Examples of Project Management Plan Components | Inputs
• Communication management plan
• Stakeholder engagement plan
• Examples of Project Documents | Inputs

• Change log
• Issue log
• Requirements documentation
• Examples of Project Management Plan Updates | Outputs

• Requirements management plan
• Communications management plan
• Risk management plan
• Stakeholder management plan
• Examples of Project Documents Updates | Outputs

• Assumption log
• Issue log
• Risk register
COMMMGT 9330A
REFERENCES
• Project Management Institute, A Guide to the Project Management Body of
Knowledge, (PMBOK® Guide)–Sixth Edition, Project Management Institute, Inc.,
2017.
• Project Management: The Managerial Process by Erik W. Larson & Clifford F. Gray
8th Edition
• Project Management Processes, Methodologies, and Economics, 3E by Avraham
Shtub & Moshe Rosenwein
• Successful Project Management seventh Edition by Jack Gido, James P. Clements
& Rose M. Baker
• Understanding the Project Environment, A Practical Guide, Second Edition by
Dave C. Barrett
COMMMGT 9330A
COMMMGT 9330A
Session 2
Organization Strategy &
Project Selection
COMMMGT 9330A
Learning Objectives
1. Explain why it is important for project managers to understand their
organization’s strategy
2. Identify the significant role projects contribute to the strategic direction of the
organization
3. Understand the need for a project priority system
4. Distinguish among three kinds of projects
5. Describe how the phase gate model applies to project management
6. Apply financial and nonfinancial criteria to assess the value of projects
7. Understand how multi-criteria models can be used to select projects
8. Apply an objective priority system to project selection
9. Understand the need to manage the project portfolio
COMMMGT 9330A
Why do project
managers need to
understand strategy?
COMMMGT 9330A
1. So they can make appropriate
decisions and adjustments.
• How a project manager would respond to a suggestion to modify the
design of a product or to delays may vary depending upon strategic
concerns.
2. So they can be effective project

advocates. They have to be able to:
• demonstrate to senior management how their project contributes to
the firm’s mission in order to garner their continued support.
• explain to stakeholders why certain project objectives and priorities

are critical in order to secure buy-in on contentious trade-off decisions.
• explain why the project is important to motivate and empower the

project team (Brown, Hyer, and Ettenson, 2013).
COMMMGT 9330A
The Strategic Management Process: An Overview
• Strategic Management Defined

• Is the process of assessing “what we are” and deciding and implementing
“what we intend to be and how we are going to get there.”
• Is a continuous, iterative process aimed at developing an integrated and
coordinated long-term plan of action.
• Requires strong links among mission, goals, objectives, strategy, and
implementation.
• Two Major Dimensions of Strategic Management:

• Responds to changes in the external environment and allocates the firm’s
scarce resources to improve its competitive position.
• Internal responses to new action programs aimed at enhancing the
competitive position of the firm.
COMMMGT 9330A
Four Activities of the Strategic Management Process
The sequence of activities of the strategic management process is:
1. Review and define the organizational mission
• The mission identifies “what we want to become.” Mission statements identify
the scope of the organization in terms of its product and service.
2. Analyze and formulate strategies
• Formulating strategy answers the question of what needs to be done to reach
objectives. Strategy formulation includes determining and evaluating alternatives
that support the organization’s objectives and selecting the best alternative.
3. Set objectives to achieve strategies
• Objectives translate the organization’s strategy into specific, concrete,
measurable terms. Objectives answer in detain where a firm is headed and when
it is going to get there.
4. Implement strategies through projects
• Implementation answers the question of how strategies will be realized, given
available resources.
COMMMGT 9330A
4 ACTIVITES OF THE STRATEGIC MANAGEMENT PROCESS
Review and Set long-range Analyze and Implement

define the goals and formulate strategies
organizational objectives strategies to through projects
mission reach objectives
COMMMGT 9330A
STRATEGIC MANAGEMENT PROCESS
FIGURE 2.1 © McGraw Hill

CHARACTERISTICS OF OBJECTIVES
COMMMGT 9330A
The Need for a Project Priority System
Implementation of projects without a strong priority system linked to
strategy create problems.
Problem 1: The
Implementation Gap
The implementation gap is the lack of understanding and consensus of
organization strategy among top and middle-level managers.
Problem 2: Project selection may be based not so much on facts and sound reasoning
Organization Politics as on the persuasiveness and power of people advocating projects.
The term sacred cow is often used to denote a project that a powerful, high-
ranking official is advocating.
Problem 3: Resource
Conflicts and A multi-project environment creates the problems of project
Multitasking interdependency and the need to share resources. Resource sharing leads
to multitasking—involves starting and stopping work on one task to go and
work on another project, then returning to the work on the original task.
COMMMGT 9330A
Benefits of Project Portfolio Management
• Builds discipline into project selection process.

• Links project selection to strategic metrics.
• Prioritizes project proposals across a common set of criteria, rather than on politics or
emotion.
• Allocates resources to projects that align with strategic direction.
• Balances risk across all projects.
• Justifies killing projects that do not support organization strategy.
• Improves communication and supports agreement on project goals.
COMMMGT 9330A
2.4 Project Classification
COMMMGT 9330A
Phase Gate Model
Phase Gate Model

• Is a series of gates that a project must pass through in order to
be completed.
• Its purpose is to ensure that the organization is investing time
and resources on worthwhile projects that contribute to its
mission and strategy.
• Each gate is associated with a project phase and represents a
decision point.
• A gate can lead to three possible outcomes: go (proceed), kill
(cancel), or recycle (revise and resubmit).
COMMMGT 9330A
Phase Gate Process Diagram
FIGURE 2.3 © McGraw Hill Access the text alternative for slide images.
COMMMGT 9330A
DEVELOP PROJECT CHARTER
© mudassiriqbal
INITIATING PROCESS GROUP
COMMMGT 9330A
• issued by the Sponsor
• authorizes the Project Manager to spend money and
commit resources
• high-level document
• Summarizes key conditions and parameters
• Establishes the framework to develop baseline plan
• does not need to change as the project progresses
• project does not exist without a charter
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Sixth Edition, Project Management Institute, Inc., 2017 Page 75-81
COMMMGT 9330A
THE BUSINESS CASE AND
THE PROJECT CHARTER
COMMMGT 9330A
Tools & Techniques
❑ Expert Judgment: Available
from many sources,
including:
₋ Other units within the
organization. Consultants,
Stakeholders, Professional
and technical associations,
Industry groups, Subject
Inputs matter experts, PMO Outputs • Project Charter
• Assumption Log
❑ Data gathering
₋ Brainstorming
₋ Focus Groups
₋ Interviews
❑ Meetings
❑ Interpersonal & Team Skills
₋ Conflict Management
₋ Facilitation
₋ Meeting Management
Develop Perform
Develop Direct & Manage Monitor &
Project Integrated Close Project
Project Manage Project Control
Management change or Phase
Charter Project Work Knowledge Project Work
Plan control
COMMMGT 9330A
COMMMGT 9330A
BUSINESS CASE (cont’d)
Market
Demand
Organizational
Social Needs Need
Business
Case is
created as
Ecological Customer
Impacts
a result of: Request
Legal Technological
Requirements Advance
COMMMGT 9330A
BUSINESS CASE (cont’d)
Part of Explains the Justifies the

Project business project
Charter need
COMMMGT 9330A
Selection Criteria
• Financial Criteria
• Payback
• Net present value (NPV)
• Nonfinancial Criteria
• Projects of strategic importance to the firm
• Two Multi-Criteria Selection Models
• Checklist Models
• Multi-Weighted Scoring Models
COMMMGT 9330A
Financial Criteria: The Payback Model
• The Payback Model

• Measures the time the project will take to recover the project investment.
• Desires shorter paybacks.
• Is the simplest and most widely used model.
• Emphasizes cash flows, a key factor in business.
• Limitations of the Payback Method

• Ignores the time value of money.
• Assumes cash inflows for the investment period (and not beyond).
• Does not consider profitability.
• The Payback formula is

Estimated project cost
Payback period (yrs) =
Annual Savings
COMMMGT 9330A
PRESENT VALUE
• The “today” value of future cash flows
Pv = Fv / (1+r)n
Fv = future Value,
r = interest rate,
n = number of time
periods
COMMMGT 9330A
PRESENT VALUE
Example:
Suppose FV = $10,000, r = 5% and n = 10 years
Using the formula: Pv = Fv / (1+r)n

PV = $10,000/ (1 + .05)10 = $6,139.13
Thus, $6,139.13 will be worth $10,000 in 10 years if you can

earn 5% each year.
In other words, the present value of $10,000 in this scenario is
$6,139.13.
*The concept of present value is one of the most fundamental
and pervasive in the world of finance.
COMMMGT 9330A
Financial Criteria: Net Present Value (NPV)
• Net Present Value (NPV)
• Uses management’s minimum desired rate of return (discount rate) to compute the
present value of all net cash inflows.
• Prefers positive NPV to negative NPV.
• Desires higher positive NPVs.
• Is more realistic because it considers the time value of money, cash flows, and
profitability.
• The NPV formula using Microsoft Excel is

n
Ft
Project NPV = I 0 + 
t =1 (1 + k )
t
• where
• I0 = Initial investment (since it is an outflow, the number will be negative)
• Ft = Net cash inflow for period t
• k = Required rate of return
• n = Number of years
COMMMGT 9330A
NET PRESENT VALUE
NPV = Σ{Ct/(1+r)t} – C0
• Where
• Ct = net cash inflow during the period t
• Co = total initial investment costs
• r = discount rate
• t = number of time periods
• Σ = From t=1 to T
COMMMGT 9330A
COMMMGT 9330A
CALCULATING FUTURE VALUE
• FV with compounded interest is calculated in the following
manner:
Future Value = Present Value x [(1 + Interest Rate) Number of Years]
For example, John invests $1,000 for five years with an interest
rate of 10%, compounded annually. What is the future value of
John's investment?
• FV = $1,000 x [(1 + 0.1)5]

FV = $1,000 x 1.61051
Future Value = $1,610.51
COMMMGT 9330A
CALCULATING FUTURE VALUE (cont’d)
• Another Example:
A friend mentions that in four years they would like to buy a home
in one of London’s fastest-growing communities. You research the
area and learn that home prices are expected to rise 7% per year.
Today, your ideal house costs $125,000. What can you reasonably
expect a similar home to cost in four years?
Fv = Pv * (1 + r)^n Does not include adjustments for inflation
fluctuating interest rates or
Fv = $125,000 * (1+ 0.07)^4
fluctuating currency values likely to affect
=$125,000*1.31079 the true value of money or assets in the
=$163,849.50125 future.
COMMMGT 9330A
NET PRESENT VALUE
COMMMGT 9330A
Example Comparing Two Projects Using Net Present Value Method
FIGURE 2.3B © McGraw Hill

COMMMGT 9330A
Nonfinancial Criteria
• Examples of strategic objectives are:

• To capture larger market share.
• To make it difficult for competitors to enter the market.
• To develop an enabler product, which by its introduction will
increase sales in more profitable products.
• To develop core technology that will be used in next-generation
products.
• To reduce dependency on unreliable suppliers.
• To prevent government intervention and regulation.
COMMMGT 9330A
Two Multi-Criteria Selection Models
• Checklist Models
• Use a list of questions to review potential projects and to determine their
acceptance or rejection.
• Allow greater flexibility in selecting among many different types of projects
and are easily used across different divisions and locations.
• Fail to answer the relative importance or value of a potential project to the
organization and does not allow for comparison with other potential projects.
• Multi-Weighted Scoring Models

• Use several weighted selection criteria to evaluate project proposals.
• Include qualitative and/or quantitative criteria.
• Allow for comparison with other potential projects.
COMMMGT 9330A
Checklist Models: Sample Selection Questions Used in Practice
Topic Question
Strategy/alignment What specific organization strategy does this project align with?
Driver What business problem does the project solve?
Sponsorship Who is the project sponsor?
Risk What is the impact of not doing this project?
Risk How risky is the project?
Benefits, value, ROI What is the value of the project to this organization?
Benefits, value, ROI When will the project show results?
Objectives What are the project objectives?
Organization culture Is our organizational culture right for this type of project?
Resources Will internal resources be available for this project?
Schedule How long will this project take?
Finance/portfolio What is the estimated cost of the project?
Portfolio How does this project interact with current projects?
• EXHIBIT
2.4
COMMMGT 9330A
Multi-Weighted Scoring Models: Project Screening Matrix
COMMMGT 9330A
2.7 Applying a Selection Model 1
• Project Classification
• Deciding whether the project fits with the organization strategy.
• Selecting a Model
• Weighted scoring criteria seem the best alternative because:
• They reduce the number of wasteful projects using resources.
• They help to identify project goals that can be communicated using the
selection criteria as corroboration.
• They help project managers understand how their project was selected,
how their project contributes to organization goals, and how it compares
with other projects.
COMMMGT 9330A
Applying a Selection Model 2
• Sources and Solicitation of Project Proposals

• Within the organization
• Request for Proposal (RFP) from external sources
(contractors/vendors)
• Ranking Proposal and Selection of Projects
• Evaluating each proposal in terms of feasibility, potential
contribution to strategic objectives, and fit within a portfolio of
current projects.
• Rejecting or accepting the projects based on given selection
criteria and current portfolio.
• Prioritizing projects by senior management.
COMMMGT 9330A
A Proposal Form for an Automatic Vehicular Tracking (AVL) Public
Transportation Project
•
• FIGURE 2.5A Access the text alternative for slide images.
COMMMGT 9330A
Risk Analysis for a 500-Acre Wind Farm
• FIGURE 2.5B
COMMMGT 9330A
Project Screening Process
• FIGURE 2.6
COMMMGT 9330A
Priority Screening Analysis
• FIGURE 2.7
COMMMGT 9330A
2.8 Managing the Portfolio System
• Senior Management Input
• Provides guidance in establishing selection criteria that strongly align
with the current organization strategies.
• Annually decides how to balance the available organizational resources
(people and capital) among the different types of projects.
• Governance Team Responsibilities
• Publish the priority of every project.
• Ensure the selection process is open and free of power politics.
• Evaluate the progress of current projects.
• Constantly scan the external environment to determine if organization
focus and/or selection criteria need to be changed.
Balancing the Portfolio for Risks and Types of Projects
• David and Jim Matheson studied R&D organizations and developed a

classification scheme that could be used for assessing a project
portfolio. They separated projects in terms of degrees of difficulty and
commercial value. The four basic types of projects are:
• Bread-and-butter projects involve evolutionary improvements to
current products and services.
• Pearls represent revolutionary commercial advances using proven
technology.
• Oysters involve technological breakthroughs with tremendous
commercial potential.
• White elephants showed promise at one time but are no longer viable.
COMMMGT 9330A
BALANCING THE PORTFOLIO FOR RISKS AND TYPES OF
PROJECTS
Bread-and-Butter Projects Oysters
Involve evolutionary Involve technological

improvements to current breakthroughs with high
products and services. commercial payoffs
Pearls White Elephants
Represent revolutionary Showed promise at one

commercial opportunities time but are no longer
using proven technical viable
advances
COMMMGT 9330A
BALANCING THE PORTFOLIO FOR RISKS AND TYPES OF
PROJECTS
COMMMGT 9330A
REFERENCES
• Project Management Institute, A Guide to the Project Management Body of
Knowledge, (PMBOK® Guide)–Sixth Edition, Project Management Institute, Inc.,
2017.
• Project Management: The Managerial Process by Erik W. Larson & Clifford F.
Gray 7th Edition
• Project Management Processes, Methodologies, and Economics, 3E by Avraham
Shtub & Moshe Rosenwein
• Successful Project Management seventh Edition by Jack Gido, James P. Clements
& Rose M. Baker
• Understanding the Project Environment, A Practical Guide, Second Edition by
Dave C. Barrett
COMMMGT 9330A

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Because learning changes everything.

6.1 Developing the Project Network

The Project Network Defined

© McGraw-Hill Education FIGURE 6.1 6

1. Networks flow typically from left to right.

© McGraw-Hill Education FIGURE 6.2 9

© McGraw-Hill Education TABLE 6.1 10

© McGraw-Hill Education FIGURE 6.3 11

© McGraw-Hill Education FIGURE 6.4 12

Forward Pass—Earliest Times

© McGraw-Hill Education TABLE 6.2 14

© McGraw-Hill Education FIGURE 6.5 15

© McGraw-Hill Education FIGURE 6.6 16

© McGraw-Hill Education FIGURE 6.7 18

© McGraw-Hill Education FIGURE 6.8 20

• Network sensitivity is the likelihood the original critical path(s) will

• Network Logic Errors

© McGraw-Hill Education FIGURE 6.9 25

© McGraw-Hill Education FIGURE 6.10 26

© McGraw-Hill Education FIGURE 6.11 27

© McGraw-Hill Education FIGURE 6.12 29

© McGraw-Hill Education FIGURE 6.13 and Figure 6.14 30

© McGraw-Hill Education FIGURE 6.15 31

© McGraw-Hill Education FIGURE 6.16 32

© McGraw-Hill Education FIGURE 6.17, Figure 6.18 and Figure 6.19 33

© McGraw-Hill Education FIGURE 6.20 34

• Spans over a segment of a project.

© McGraw-Hill Education FIGURE 6.21 36

Activity Hammock activity

08-01 Understand the differences between time-constrained and resource-

8.1 Overview of the Resource Scheduling Problem

© McGraw-Hill Education FIGURE 8.1 5

Resources and Priorities

Technical or Logical Constraints

© McGraw-Hill Education FIGURE 8.2 9

▪ Consult a project priority matrix to determine if the project is time- or

- Must be completed by an imposed date.

© McGraw-Hill Education FIGURE 8.3 13

- Resources are limited in quantity or availability.

© McGraw-Hill Education FIGURE 8.4 15

© McGraw-Hill Education FIGURE 8.5 16

© McGraw-Hill Education FIGURE 8.6 18

© McGraw-Hill Education FIGURE 8.7 19

© McGraw-Hill Education FIGURE 8.8A 20

© McGraw-Hill Education FIGURE 8.8B 21

© McGraw-Hill Education FIGURE 8.9 22

© McGraw-Hill Education FIGURE 8.10 23

- Reduces slack; reduce flexibility

- Is a scheduling technique used to get a better project schedule and/or

- Involves interrupting the work and sending the resource to another

- Is considered a major reason why projects fail to meet schedule.

© McGraw-Hill Education FIGURE 8.11 26

- Leaves time for considering reasonable alternatives

Problems in a multiproject environment

- Create project offices or departments to oversee the scheduling of

Why a Time-Phased Budget Baseline Is Needed

© McGraw-Hill Education FIGURE 8.12 32

© McGraw-Hill Education FIGURE 8.13 33

© McGraw-Hill Education FIGURE 8.14 34

© McGraw-Hill Education FIGURE 8.15 35

© McGraw-Hill Education FIGURE 8.16 36

© McGraw-Hill Education FIGURE 8.17 37

© McGraw-Hill Education FIGURE 8.18 38

“The processes required to accomplish timely