Preparing A Project

Timeline
A Seven Step Process
Some Basic Definitions
Time management and scheduling involve certain terms that need to
be understand.
Here are some basic definitions:
Critical Activity
An activity that has no latitude in start time and finish time. In other
words, if a critical activity does not finish by the prescribed time, the
overall project timeline will be impacted.
Critical Path
The longest path through the network (logic) diagram.
All activities on the critical path are critical activities.
Duration
The window of time within which an activity is expected to be completed.
Effort
The number of labor hours to be spent on an activity.
Float (or Slack)
Flexibility, or latitude, with regard to when a specific activity can
(or must) be worked on.
Forward Pass/Backward Pass
Techniques for analyzing the amount of float in the execution of
individual activities.
Activities with no float are referred to as critical activities.
Milestone
A point in time, typically marking an important event, usually the
completion of a project phase, a decision point, or the completion
of a major project deliverable.
Milestones are not activities; they don’t take time or consume
resources.
Network (or Logic) Diagram
The model of the proper sequence of activities.
It graphically depicts which activities must be completed
before others can begin.
Parallel Activities
Activities that can be done during the same period of
time.
Predecessor Activity
An activity that must be completed before the activity
under consideration can begin.
Series Relationship
Two activities that must be done in a particular order, that
is, one must be done before the other.
Preparing a Project Timeline: A Seven-Step
Process
There are countless ways to prepare a project schedule.
A very systematic approach is outlined in this seven-step process.
Step 1: Prepare for scheduling by identifying schedule
activities on the WBS.
Step 2. Develop the network diagram.
Step 3. Estimate preliminary activity durations.
Step 4. Calculate specific calendar dates and times.
Step 5. Identify resources, accommodate resource
limitations, and estimate final durations.
Step 6. Identify and accommodate any external constraints.
Step 7. Compare the estimated end date and the required
end date.
Creating A Network Diagram
The network diagramming process begins by defining the
relationships that exist among activities.
Some people try to skip this step and attempt to execute their
project directly from an activity list.
This is the “To do list approach.”
Although this may work for extremely small projects (20-30
activities with one or two people), it will not work on projects that
involve dozens of tasks with multiple players.
In most projects, several people are working on different activities
at the same time and many activities are dependent upon one
another, so it’s virtually impossible to manage a project from a list.
A network diagram is required.
Creating A Network Diagram
The most common graphical convention for drawing
network diagrams is the Precedence Diagramming
Method (PDM).
PDM diagrams consist of boxes that represent
activities.
The relationship between activities is indicated with
arrows.
PDM Series Relationship
Finish-to-Start relationship indicates
an activity must be completed before
another activity can begin.

Parallel relationship in network

diagram indicates two or more
activities can be accomplished
parallel, and should be finished
before the start of another activity.
Note that no relationship is implied
between Activity C and Activity D, as
there’s no arrow connecting them.
PDM Series Relationship
In some cases, however, a
relationship may exist between
two activities that are to be done
in parallel.
This type of relationship will link
either the start or the finish of two
activities.
Figure illustrates these kinds of
relationships:
Start-to-Start relationship (a) and
Finish-to-Finish relationship (b).
Creating A Network Diagram
For each activity, ask the following questions:
What activities must be completed before this activity
can start?
What activities cannot start until this one is complete?
What activities could be worked on at the same time as
this one?
Prepare an ordered list chart containing the
activities from WBS and the dependency of each
activity. Activity Number Activity Name Depends on
Activity
Sample Ordered List of Activities
Activities and interrelationships for the ski trip project
Network diagram for the ski trip
project
Estimating Activity Duration
After constructing the network diagram the next step
is scheduling.
The first way to characterize the length of an activity is
effort.
Effort is defined as the number of labor hours that
task performers will be working on a given activity.
The second way to characterize the length of an
activity is duration. Duration is the window of time
within which the activity is to be completed.
Converting the Network Diagram to
a Project Control Schedule
Begin by creating a calendar-based timeline that assumes
unlimited resources and the full-time commitment of all
task performers.
Real-world experience tells us that it’s very unlikely that
these assumptions will hold true.
However, preparing a version of your project schedule
using these assumptions will provide you with a very
useful piece of information—the optimum schedule, that
is, the shortest possible overall project duration,
assuming no use of overtime or other extraordinary
tactics.
Control schedule for the ski trip project
Resource Leveling
A situation can be there in the project plan where a specific task
performer may be expected to work on several tasks during the same
period of time.
This difficulty must be alleviated through a technique called
resource leveling.
This technique addresses the problem of over-committed resources
by adjusting the project schedule (typically by extending it) when
the schedule logic places demands on a resources that exceed their
availability.
For example, if Activity X and Activity Y were two parallel activities
that identify Person A as the required task performer, resource
leveling would probably place the two activities in series, thus
allowing Person A to work on both.
Calculating The Critical Path
After preparing final schedule, the next step is to maintain
control and keep the project on schedule.
Set of activities that are continuously tied together with no
breaks between them depicts the critical path.
It’s much more difficult to spot critical path on larger projects.
The critical path is derived by performing two manipulations
of the schedule— a forward pass and a backward pass.
The forward pass calculates the earliest times (or dates) that
activities can start and finish.
The backward pass calculates the latest times (or dates) that
activities can start and finish.
Network Diagram
Calculating The Critical Path
 Four dates are calculated for each activity: early start, early finish, late
start, and late finish.
 In the example above, these calculations are expressed in terms of the
number of days from project startup.
 On your project, they would most likely be specific calendar dates.
 On large projects, you can spot the critical path by examining the
difference between the early dates and the late dates.
 In the example above, the difference between the early start and late
start of Activity C is six days.
 This means that Activity C could start anytime within this window of
time and not impact the overall project schedule.
 However, notice the difference between the early start and late start of
Activity E: zero. This means that Activity E has no flexibility (float)
with regard to when it can start. Activity E is on the critical path.
Critical path activities need most attention to be
completed on time to keep the project on schedule.
One day of slippage in a critical path activity means
one day of slippage in the overall project.
Cost Management
Identifying how much it costs to get things done.
Cost management, however, is more than just calculating the cost
of the overall project.
It also consists of creating a budget (identifying the cost of
individual elements of work) and the time-scaling of the overall
project expenditure.
It is not an easy task to do, because there are so many types of costs
that should be included in the estimate.
Another reason is there’s the overriding issue of direct vs. indirect
costs. This is an important distinction.
In the case of organizations or companies that earn their money
through project work, profit would be another necessary
component of the project estimate, although not expected to be
spent!
Types of Cost
Direct Cost
A direct cost is an expenditure specifically and directly incurred by
the execution of project.
These are typically the most obvious categories of costs, and
include the following:
• Labor • Materials • Supplies and Equipment
• Facilities • Training
• Travel and Other Miscellaneous Costs
Indirect Cost
An indirect cost is a cost related to supporting the facilities, general
services, and organizational environment within which the project
team functions. It may include the following:
• Fringe Benefits • Facilities • General and Administrative
Direct Cost
Labor:
The cost of the people carrying out the activities on the
project. This could include contract labor. This is often the
largest component of the project budget.
Materials:
The cost of items purchased for use in executing the
project.
Supplies and Equipment:
The cost of items consumed by the project and specifically
required to execute the project. This item could include
items that are purchased, leased, or rented.
Direct Cost
Facilities:
This would be included only if the facilities are built or
purchased solely for the use of the project (in other
words, when it’s part of what the project delivers).
Training:
Training specifically required to achieve project success.
This cost is often associated with customer training
during installation or startup.
Travel and Other Miscellaneous Costs:
 Again, the only rule is that the cost must be required to
execute the project.
Indirect Cost
Fringe Benefits:
This is the non-payroll component of workers’ salaries for the project.
They’re often calculated as a simple percentage of direct labor costs and
include Social Security costs, health insurance contributions by the
organization, and profit-sharing plans, to name a few.
Facilities:
The cost incurred to maintain the environment within which the
project team functions during the project. This might include building
rent, utility costs, building maintenance, communications networks,
office supplies, etc.
General and Administrative:
The costs of management and support services, such as secretarial, and
the purchasing, accounting, and human resources departments, as
examples.
Estimating Cost
The WBS can be used as an estimating worksheet and
as your primary structure for displaying the
breakdown or allocation of costs within the overall
project budget.
Using WBS For Cost Estimation