A PROJECT MANAGEMENT PRIMERBefore you can master the art project management, you’ll have to learn its lingua franca, concepts, and techniques. Here’s a short course that will get you started.

Project management is a way of imposing structure on a complex intertwining of time, resources, and activities. It requires a panoramic eye, logical thinking, a measure of statistical dexterity, a feel for detail, and a willingness to bow to circumstance. Using a PC will help, but only if you understand the methodology of project management.

Planning is the first phase of project management, yet it starts with the project’s end-its objective. You have to know what you want to achieve before you can figure out how to do it and what it will cost. With the objective is to move your company to another location, you might have jotted down “site selection,” “renovation,” and “move,” As you add activities to the list, you also add detail, so site selection may be composed of “conduct needs analysis” and “survey buildings”, and these tasks will in turn be composed of others. Before long you start to have a sense of the

project flow. Logic will dictate which activities must follow each other and which ones can occur simultaneously.

Outlining, which has recently become part of the best low-end programs, is a very good way to do the list-making part of planning. You can also use other, more-traditional project management techniques in conjunction with outlining; each will yield additional understanding of your project.

One of these traditional approaches is the network diagram. It is something like a graphic representation of an outline turned on its side so that its progression is horizontal. There are actually two ways of drawing it: the arrow diagramming method (ADM) and the precedence diagramming method (PDM). In an arrow diagram, activities are represented by arrows placed between a start circle and an end circle. The circles are points in time. Micro Planner is the only program reviewed here that uses

this method. In a precedence diagram, tasks are represented by boxes, which are connected by arrows showing the project flow. PDM is the more popular of the two methods and is used by all the other packages.

While network diagrams illustrate the general movement of a project, they are missing a crucial element: time. The Gantt chart takes this element into account. The Gantt is a horizontal bar chart laid down under a date line scaled in minutes, hours, days, and so on. Activities are listed down the rows on the left side of the chart, and the bars representing them are sized to show their expected duration. The order of the bars from top to bottom gives you some of the same sequential information as the network diagram. The Gantt chart shows you the start and end dates for every activity and for the project as a whole.

The Gantt chart is often used as the central view of project because it can display a

lot of information at once. In addition to time and sequence, you can see which tasks are crucial to the on-time completion of the project. These linch pin tasks are determined by a process known as the critical path method (CPM). The algorithm used to determine the critical path revolves around task durations, their sequence, and constraints.

DEPENDENCY CONSTRAINTSConstraints ordain the relationships between tasks. For example, some tasks can’t begin until others are completed, as a function of physical or logical laws. If you’re erecting new walls in an office space, then the framing must be done before the wallboard can be put up. This is a physical constraint. Task relationships with this pattern are said to have a finish-to-start dependency. There are several other dependency types: finish-to-finish, start-to-start, and start-to-finish.

An example of a start-to-start dependency would be planting shrubs and spreading bark mulch. You can’t

put the the mulch down until you’ve started to put in the shrubs. This illustrates another type of dependency: lead and lag time. Mulching should start only after planting is under way, because mulching takes less time. If you were charting these activities, you would assign a lead time to the task of mulching. If a task must begin some time after another one has finished, you would use lag time.

Each task can have a number of dependencies at once, making the relationships in a project schedule very complex. To figure out the critical path, a PC based project-management program determines the earliest and latest possible start and finish dates of tasks, factoring in their dependencies, durations, and the start date of the project. The critical path tasks are those whose early and late dates are exactly the same-in other words, they must start and finish precisely on time, because a delay in any one of them will delay the whole project.

The critical path is displayed on the Gantt chart by coloring the bars red, by making them solid, or by using

some other visual cue. Noncritical tasks are displayed differently and can also be distinguished by a trailing or leading line. This line represents float, which is the amount of time a task can slip without affecting the end date of the project. All of the programs reviewed here use CPM as the basis for planning.

Another planning technique, the Program Evaluation and Review Technique (PERT), is often used as a synonym for CPM or for network diagramming. But it is a very distinct and specialized technique for dealing with uncertainty in task duration. When one used PERT, (although they may call their network diagrams PERT charts), but Super Project Expert, the more fully featured sister of Super Project Plus, does offer it.

COMMITTING RESOURCES

After the critical path has been determined, you are ready to assign people, equipment, and materials to each activity. These are the project resources. Information about their quantity, daily

availability, and cost are entered on task and/or resource screens. Resources can have a tremendous impact on the schedule. If, for example, a task would normally take 3 days to complete, but your resources can be applied for only 4 hours a day, the task will take 6 days. Resources may also control the start date of a task. If a task could begin on October 1, but the needed materials won’t arrive until October 15 or a key person isn’t available until that date, then that’s the real start date for the task.

Typically, once you’ve assigned resources to specific tasks, you will discover that some are overallocated. You can see this most clearly by looking at resource histograms. A histogram is a vertical bar chart of resource capacity. If a resource is assigned full time to two tasks during the same period, the bar will top the maximum line on the chart, and it may be shown in red or flash at you.

There are two approaches to correcting resource conflicts-adjust the resource availability or delay tasks and

probably, the project. Most programs will automatically reschedule tasks with conflicts through an approach known as automatic resource leveling. In one type of resource leveling, only available float time is used to change task dates. But this is often an insufficient answer to the problem. The other kind of resource leveling will delay even critical tasks, thereby delaying the whole project. But neither of the automatic techniques may give you an optimum schedule. You may have to manually readjust resource availability, move tasks around, or even rethink the way an activity is accomplished.

But when the resources are finally assigned, the critical path set, and the costs entered, you have a complete project plan. This plan is often referred to as the baseline. It is saved and used as a standard against which to measure the progress of the project as it unfolds.

TRACKING PROGRESSAfter the baseline is created, you enter the second phase of project

management: tracking. Now you will be entering actual start dates, resource time spent, percentage of task completion, and costs. This data might be entered weekly, or, for critical or very short projects, daily.

The tools for this part of a project are the actual-versus-baseline Gantt chart and a battery of progress reports. One of the most important reports is called earned value. It can actually be calculated in a variety of ways, but it is essentially a measure of the impact of cost on a task in progress when it is compared with the baseline. For example, if you have achieved 50 percent of task’s objectives halfway through it, and the baseline cost estimate for the task was $25,000, then you have an earned value of $12,500. Earned-value reporting is required in government-contracted projects.

The other reports you generate during the tracking phase will serve as summaries of progress for upper management or detailed blueprints of tasks and resources for line managers. The reports

will also indicate problems that are the results of unforeseen circumstances. This will send you back to planning activities like resource leveling.

Project management is difficult and time-consuming. It forces you to think through a complex process and then record detailed, actual data. But if you follow through on the method and use a PC based project manager for all the computational, graphic, and reporting support it can supply, your skill at project management will continue to grow. And this will most certainly have a payoff on the bottom line. Henry Fersko-Weiss

RESOURCE MANAGEMENT:AN IMPERFECT SCIENCE

Resource distribution histograms are measuring tools that graphically indicate no only where resource overloads and underloads occur in project planning, but also what their magnitudes are. Unfortunately, most histograms are restricted to displaying no more than two or three resources at a time.

With tabular resource-distribution reports, resource requirements over time periods are presented numerically. This provides accurate information for a greater number of resources at once, but the results may be more difficult to analyze, since resources fluctuations and their magnitudes are not that easy to catch with the eye.

As planning tools, resource distribution histograms and tables provide users with the best mechanism for manual adjustments of resource allocations, especially if they can be changed interactively on-screen. Manual changes made this way are equivalent to desktop publishing’s WYSIWYG idea: any change made to the project’s resources is reflected immediately and accurately, not only on the screen but throughout the entire on the screen but throughout the entire project. Activity and assignment changes are made on a Gantt chart ( or any activity-oriented chart or table) and reflected on a resource distribution histogram (or table).

Only a few users take full advantage of resource management. Why? The fact is that even with the most-sophisticated resource-planning techniques, the results of automatic planning are far from satisfying. Schedules must always be revised and

carefully analyzed so that necessary changes are made before the actual project implementation begins. The fine-tuning and analysis of the schedules require more time and effort than most users are willing to invest.

It’s disappointing that 30 years’ experience with the critical-path method-and continued development efforts spurred by the microcomputer revolution-have not brought us better resource-planning tools. Is there any way to automate resources planning fully and produce schedules that need no further adjustments?

The resource-planning process requires specific judgments, many of them relevant only to individual situations. Only a few situations can be anticipated in advance, so very few rules have been developed that successfully resolve planning problems. You could developed that successfully resolve planning problems. You could develop specific rules for a large number of anticipated situations, but it wouldn’t pay to develop then if they could not be used repeatedly. Programming algorithms can be effective only if one rule applies to all problems of the same sort. It may be impossible to find rules that will completely refine the automatic resource-leveling procedure.

Rather than attempting to develop more rules, several software developers have provided users with additional tools for manual adjustments of resource allocations after leveling has been processed. A resource distribution histogram or table, integrated and synchronized with a Gantt chart, may be the most powerful tool for this job. But if a program is not extremely quick (and

high-end programs are generally slow), calculations involving hundreds or thousands of tasks can take too long to warrant developing interactive Gantt charts. Still, such charts can be useful if you want to resolve planning problems with high-end programs, because you can you move an activity within a margin of slack time without rescheduling the whole project. This sort of live, interactive “what if” planning should be the software developer’s goal.-Daniel Yahdav Daniel Yahdav is the president of San Rafael, California-based 1 Soft Decision. The company publishes PM Solutions, an analytical report on project management software.

RESOURCE ALLOCATION Resource allocation or leveling (l.e., the distribution of resources over a given time span) attracted attention beginning in the early 1960s. By using positives float available on non critical paths through the project, the project planner can arrange a schedule of work that accomplishes the same result in the same time while smoothing or leveling the peaks and valleys in the resources to be consumed. This process is not new, but it is much more easily accomplished from a framework of a PERT or CPM project network.

RESOURCE ALLOCATION

Resource allocation focuses on the allocation of physical resources. (P249)Relative to the individual, multiple & simultaneous uses. The altering of schedule can also alter the need for resources.

A system may have a fixed level on resources at any given point. (man-hours, technical services, machine hours, computing time other scarce resources.

If a need for some resource varies from 60 to 130 percent of resource capacity, that resource will be wasted at one point & insufficient at another point.

Resource allocation problem if the project schedule can be ironed out relative to resource use, it is possible to avoid project delay & avoid high cost for excess resources. (P. 249) Meredith

Extreme points of the Relationships Between Time use and Resource use

Time Limited Resource Limited

Project must be finished by a specific time, using as few resources as possible. It’s time not resource usage, that is crucial.

The project must be finished as soon as possible but without exceeding some specific level of resource usage or some general resource limit.

(Requirements) Resource Loading:

Describes the amounts of individual resources are required for an exiting schedule during specific time intervals. The loads (requirements) of each resource type are listed as a function of time periods.

Resource loading gives a general understanding of the demands a product will make on a firm’s resources.

Resource loading is an excellent guide for early project planning. Because it’s the first step in working to reduce excessive demands on certain resources.

The PERT/CPM technical is suited for the job of:-generation time phased resource requirements (loading) A Gantt chart could be

adopted for the same purpose but it’s not as efficient.

Again, resource loading is the process of:(1) calculating the total load (requirement)(2) from project tasks on each resource(3) for each time period(4) of a projects duration

Resource Leveling:Large changes in the required loads for various resources as normal. It is between,

a bad phenomena for PMS. Resource leveling aims to minimize the period-by-period variations in resource loading by shifting tasks within their slack allowances. The objective, then, is to create a smoother distribution of resource usage.

The advantages of smooth resource usage:(1) less hands on management is needed(2) PM’s may be able to use a just-in-time inventory policy without worry of

error in delivery.(a) People resource leveling improves morale & reduces problems in payroll &

personnel

Again resource leveling is concerned with(1) evening out the demand(2) for various required resources in a product (3) by shifting tasks(4) within slack allowances.The use of a computer is required here.

Correcting Resource Conflicts

Approaches

IV Committing ResourcesA. Once the critical path has been identified the user can assign personnel(2)assign equipmentto each activity(3)assign materials

(4)Information about the (a) quantity(b) daily availability(c) cost’s are entered on task and a resource screens

(5) Resources: can have excellent a far reaching impact upon a schedule.(6) One resources are allocated for specific tasks some of the tasks are

overallocated. (see resource histograms for example.(7) Resource Histogram: (RH)

(1) RH is a vertical bar chart of resource capacity(2) Over allocation can be adjusted by:(3) Adjusting the resource availabity(4) Delay tasks and project(C) Automatic Resource leveling:

this procedure automictically reschedules tasks with that are in conflict(1) Types of resource leveling

-available float time (used to change task dates) It’s not sufficient.-delay of critical tasks (this delays the entire project)

(2) Neither automatic technique, however with create an optimum Schedule you may need to manually-readjust resource availability-move tasks around-rethink the way an activity is achieved

(D) Baseline (standard)When resource are;

1. permanently assigned2. critical path set3. costs entered you will have a complete project plan called a

baseline. It is saved on the PC and used as a is the name given to a project plan that has its resources allocated its critical path set and costs assigned to its specified program/project.

Standard

The baseline can also be used as a standard from which to determine a program’s/project’s level of achievement at various stages.

3

The Operating Values of PERT

The planning and operating values of PERT may be inseparable in reality since they are mutually dependent and both have the common objective of improved project management. However, many executives point to the specific values of PERT for managing a project in process. Three major operating yields stand out-improved management control, improved management of resources, and improved management action or decision making. Improved Management Control. One of the more useful management yields of PERT is its progress reporting. Most progress reporting techniques provide management with historical information. The better are separated from the poorer by having less information lag. PERT lays the basis for anticipatory management action against trouble spots likely to appear. It thus is clearly differentiated from more conventional control techniques.

The mode of accomplishing this is PERT’s dynamic reporting process. As speedily as activities are completed, the actual time and costs are substituted for the previous estimates. The system is then processed to determine the effects of these performances on the total project (Chart 7). It should be accented here that

PERT looks at the total project or program and its progress.

Operating Values of PERTmanaging a program/project in process

There major operating values1) Improved Management control of Resources ACTON or decision-making2)

Improved Management Control

Dynamic Progress Reporting provide management with historical data & information. A program/project & success is based on the degree of its Information leg.

Practical OperationsImproved Management Control(Dynamic Progress Reporting Anticipating Management action

-Quality-Timelines-Frequency-Relationships-Anticipatory -Character

Improved Management of ResourcesContinues refocusing of management’s attention to the greatest action pay off points

Improved Management ActionSimulation of decision before they are implemented

With a history of information from which to select, PERT is able to identify likely problem areas, This is indeed management by anticipation. It’s concept is clearly different from conventional management by control. The key to this difference is PERT’s Dynamic Reporting process.

-activities are completed-actual time & costs are substituted for previous estimates.-determination of effects of time & cost acturing combinations on the total program/project and its progress are established.

Dynamic Progress Reporting

Progress to Date Future Status-By Event-By Activity-Total System

-By Event-By Activity-Total System

Progress CorrectiveTo Date Action

AnticipatoryAction Future

Status

As accomplishments occur, they are assessed in terms of the total project. This also makes possible evaluation of the effect upon the critical path. The process or lack of progress of the project can thus be analyzed. This will indicate certain corrective actions which should be taken to avoid delay or minimize costs.

Network processing to provide a basis for action can be done as frequently as management desires, in accord with the characteristics of the project and the performance being accrued. This sets up a cyclic problem definition and solution which follows the best attributes of “management by exception.”

The point of accent that distinguishes PERT is the elimination of “lag” reporting and the institution of “anticipatory” reporting. Management can move against possible trouble spots without waiting for their actual effects to show –thus conserving both time and money.

This attribute of PERT has brought a distinct change in traditional management thinking about control. The static quality of other reporting systems, contrasted with the dynamics of the PERT approach (the historical decision base versus the “looking ahead” decision base, the “lag” versus “no lag” information), changes the pattern of both management thought and control action.

Another improved management yield from PERT is progress control by management level. PERT reporting can be tailored to the requirements of the management level involved. Lower operating management, for example, might receive a detailed report showing all events and activities-both accomplished and forecast-as well as a picture of the total project. This kind of information is required to formulate recommended actions. On the other hand, top management might be provided only over-all summary report – briefly analyzed with the proposed changes recommended.

While providing information tailored to the management level has been an accepted approach for years, the quality, timeliness, frequency, relationships, and anticipatory characteristic of PERT distinguish it from conventional reporting practices.

In addition to written reports, graphic presentations may, of course, be used to summarize program status. Again, the graphic reporting techniques can be tailored to accommodate the management requirements involved. While the graphic arts may appear in a form identical to that usually employed, new reliance can be placed on their meaning due to the integrity of PERT’s progress reporting.

PERT thus significantly improves managements information and thereby assists in improved decision making and management action.

Improved Management of Resources. Business efficiency is largely measured by how well company resources are utilized. PERT can be a major contribution to improved resource management. This is largely accomplished through trade-offs. Paths through the network are made up of accumulations of resources of the activities on each path. Paths shorter in time than the critical path – surplus paths – may have resources which can possibly be applied to the critical path to shorten it. This is termed “trade-off of resources” and is depicted in Chart 8. Resources are shown being transferred from surplus paths to both the critical and semi critical paths.

This depiction is oversimplified in two primary respects. First, resources are not so simply transferred from a surplus to a critical path. Rather, a transfer of resources is proposed and its effects noted; then, in response, another transfer is proposed and its effect noted; and so on until management comes to an optimum move of resources. Chart 8 pictures only the end result.

Second, to determine the feasibility of transfer, the proposed trade-off is thoroughly studied and analyzed in terms of the resources available and the activities to be accomplished on the critical path. Some resources may not be flexible, hence are non-transferrable, while others which may be available and transferable do not fit the needs present. The example, of course, does not indicate the study and analysis necessary to effect an advised trade-off of resources. Carefully planned and carefully rationalized resource trade-offs can substantially affect the end results of the project. This type of approach, on such a planned basis, is unique with PERT.

If trade-off of resources does not bring desired results, then management may have to resort to crash action. It should be stressed that this move is undertaken only after management has exhausted the use of trade-offs for performance improvement. In a crash approach, management may decide to go on an overtime or extra shift basis, to use substitute materials, to add resources beyond those allocated, or to spend additional funds on expediting. Again, a study would be conducted to determine whether crash action was feasible and what type would produce maximum effect with minimum costs. A decision would be reached in the final analysis on the time saved versus the cost added.

The management value of PERT is again emphasized in its approach to improved management of resources. Under either resource trade-off or crash action, the management intention is to shorten the critical path. Once this is done, however, a semi-critical path may become critical, and then this path would be the target for management action. The PERT approach keeps the attention of management constantly focused on the path where action will be most effective in terms of the end results expected. This is illustrated in Chart 9. The upper left-hand portion shows the critical path before management action is taken; the right-hand portion shows the shift in the critical path after decision. The critical path thus moves back and forth in response to management action. This movement calls management action. This movement calls management’s attention to the need for a continuing refocus of attention. This primary management value is unique with PERT.

Improved Management Action. Being able to test decision on paper or in a computer instead of tampering with expensive operations is also a major PERT value.

When management determines that a need for improved performance exists, certain alternative management actions will be proposed (Chart 10 ). These alternatives can be fed into the PERT system and the effects noted. These effects will suggest other actions which can again be simulated to determine their effects on the project. By repeating this process of trial decision making, management can arrive at the best balance of decisions to be instituted. This simulation can be accomplished rapidly and inexpensively. The payout in improved management decision making is significant.

In the chapter, the operating values of PERT- improved management control, improved management of resources, and improved management action or decisions – have been discussed. The central core of these values lies in the dynamics of PERT contrasted with the static of historical approach of other planning and control techniques. This dynamic quality permits anticipatory management action, a continuing refocusing of management attention to the greatest action payout points, and simulation of decisions before their institution. No other existing management control system has this combination of operating values.