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SW Project Management Project Schedule and Budget. INFO 420 Glenn Booker. Grand finale. Developing the project schedule and budget is the grand finale of the project planning process – our ultimate goal We just defined the tasks and estimated their duration (effort)

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grand finale
Grand finale
  • Developing the project schedule and budget is the grand finale of the project planning process – our ultimate goal
    • We just defined the tasks and estimated their duration (effort)
    • Now identify the sequence of tasks, interdependencies, and staffing needs

Chapter 7

project cost management
Project cost management
  • The budget is determined from the project schedule, the cost assigned to tasks, and other indirect costs or resources
  • Project cost management includes
    • Cost estimating for tasks and their resources
    • Cost budgeting for the whole project
    • Cost control – define processes

Chapter 7

rolling up costs
Rolling up costs
  • Since our tasks were organized into phases and deliverables, we can roll up (summarize) costs to any level desired
    • Cost per deliverable
    • Cost per phase
    • Cost of the whole project
  • The sponsor needs to approve these costs

Chapter 7

developing project schedule
Developing project schedule
  • A key sanity check is that each of the estimates for each task is really reasonable according to the experts in that activity
    • GIGO applies here, not just to programming!

Chapter 7

project schedule tools
Project schedule tools
  • Tools to show a project schedule include
    • Gantt chart
    • Project network diagram
      • Activity On the Node (AON) diagram
      • Critical path analysis
      • PERT charts
      • Precedence diagramming method (PDM)
    • Critical chain project management (CCPM)

Chapter 7

gantt chart
Gantt chart
  • The Gantt chart is probably the most widely used project management tool
    • Time is the X axis, from days to years
      • The current date is readily visible
    • Tasks are on the Y axis
      • Bars represent WBS tasks
      • Milestones are diamond shapes
      • An inset bar can show actual work progress

Chapter 7

project network diagram
Project network diagram
  • Project network diagrams are also based on the WBS, but also show more info on task sequence or dependencies
    • Many also show when tasks must start or stop in order not to affect project completion date
    • This can help decide resource assignments needed for critical tasks

Chapter 7

activity on the node
Activity On the Node
  • Activity On the Node (AON) diagrams represent the flow of tasks needed to complete the project
    • Tasks are nodes (boxes)
    • Arrows show the order in which they occur
  • The duration of tasks isn’t directly visible under AON, only time order

Chapter 7

activity on the node11
Activity On the Node
  • Tasks can be predecessors, successors, or in parallel
    • Predecessor tasks must occur before another task
    • Successor tasks must occur after another task
    • Parallel tasks may occur at the same time as another task

Chapter 7

critical path analysis
Critical path analysis
  • Given an AON, critical path analysis determines which activities are directly connected to achieving the project schedule
    • They are the critical path, which can change
  • Analytically, find the duration of each path through the AON diagram

Chapter 7

critical path analysis13
Critical path analysis
  • The path with the longest duration is the critical path (and the project duration)
    • If any tasks on the critical path are delayed, the overall project completion will be delayed
    • Tasks not on the critical path may have a non-zero amount of slack or float, which is the amount of duration they can slip without affecting the project

Chapter 7

critical path analysis14
Critical path analysis
  • A manager might add resources to tasks on the critical path, if that will actually help finish them sooner
    • This technique can be called expediting or crashing the project
  • Fast tracking the project is done by making tasks parallel that weren’t

Chapter 7

pert charts
PERT charts
  • PERT is the program evaluation and review technique, developed in the 50’s
    • Often seen with CPM, or critical path method
  • A PERT chart also uses the AON graphic notation, but uses a different approach for estimation

Chapter 7

pert charts17
PERT charts
  • For each task, estimate the lowest (optimistic), most likely, and highest (pessimistic) durations, then use
    • estimate = (low + high + 4*likely)/6
  • The critical path analysis can be done based on these estimates

Chapter 7

precedence diagramming method
Precedence diagramming method
  • The precedence diagramming method (PDM) adds to AON by showing the key sequence relationships
    • Finish to start (most common, sequential)
    • Start to start
    • Finish to finish
    • Start to finish

Chapter 7

pdm node relationships
PDM node relationships

From Fig. 7.5

Chapter 7

slide20
PDM
  • PDM can also show lead and lag times for activities
    • Lead time is an amount of time a task can start before the end of its predecessor
    • Lag time is the amount of time a task must start after the end of its predecessor
      • Hence lag time = negative lead time

Chapter 7

critical chain project management
Critical chain project management
  • Critical chain project management (CCPM) is a newcomer (Goldratt, 1997)
  • It assumes that all estimates are inflated
  • We still finish projects late because
    • We wait until the last minute (student syndrome)
    • Projects fill the time available (Parkinson’s law)
    • Resource contention

Chapter 7

slide22
CCPM
  • CCPM takes that buffer from each task, and puts in in larger blocks where needed
    • How? Estimate tasks so that you only have a 50% chance of completing them on time
    • Then take half of the difference in task time, and put that into a buffer at the end of the project

Chapter 7

slide23
CCPM
  • Yes, you have to estimate each task twice
    • Once normally, and once for 50% chance completion
  • CCPM also accounts for resource limits, by identifying the resources for each task and buffers for each type of resource

Chapter 7

pm software tools
PM software tools
  • There are several project management software tools for developing and managing schedules
    • Microsoft Project is the de facto standard
    • Planner and OpenWorkBench are open source tools
  • Ok, so Project doesn’t have much competition…

Chapter 7

pm software tools25
PM software tools
  • Often projects are planned in detail only a few months in the future, a rolling wave approach
  • There’s an outline of the rest of the project, particularly for planning long lead time items

Chapter 7

project budget
Project budget
  • The budget is straightforward to develop, once the schedule has been determined
    • Determine the type of resource(s) needed for each task, and how many of them are needed for its duration (0.1, 2.5, whatever)
    • Find the cost of each resource type ($/hr), and multiply that by how many and the duration = cost per task

Chapter 7

project budget27
Project budget
  • Check for overuse of resources – often not recommended to use 155% of a person’s time
  • To find the cost of each resource*, assess their typical annual salary**, divide by 2000 (hours per work year), and multiply by 2.5 (to account for overhead expenses)

* This is a heuristic. ** You could look for salary surveys.

Chapter 7

project budget28
Project budget
  • So if a software engineer averages $60k/year, their hourly rate is about $30/hr
    • Actually, a normal work year is 40*52 = 2080 hours, but we’re just getting a rough estimate
  • Multiply by 2.5 to get a labor rate of $75/hr
    • This is the ‘true cost’ in the text

Chapter 7

other costs
Other costs
  • Labor is the biggest cost on most projects, but other costs should be considered
    • Indirect costs – are admin assistants, facilities, insurance, etc. paid by the project, or from overhead?
    • Sunk costs – from previous bad projects
    • Learning curve – might be covered by prototypes

Chapter 7

other costs30
Other costs
  • Reserves – most projects keep back a 10-15% reserve from the total actual budget, in anticipation of some cost overruns
  • Project-specific hardware and software – plan for infrastructure costs (servers, network equipment, software) which aren’t part of normal office & facility environment
  • Travel, e.g. to the customer?

Chapter 7

resource allocation
Resource allocation
  • Again, make sure that individuals aren’t scheduled for over 100% of their time
  • Also consider resource leveling
    • Are there times when people are needed, then not, then needed again?
    • What will those people do in the middle?

Chapter 7

baseline plan
Baseline plan
  • Once all these issues have been identified and agreed upon, you have the baseline project schedule, which feeds the project plan
  • All measurements of ‘planned versus actuals’ hinge upon this plan!

Chapter 7

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