Project Management using MS Project

A project is an activity that :is temporary having a start and end date is unique brings about change has unknown elements, which therefore create risk

What is a project?

A project contains a well defined objective. The project objective is defined in terms of scope ( or requirements), schedule, and cost.A project is carried out via a set of interdependent tasks. A project uses various resources to carry out these tasks.

Generally projects are formed to solve a problem or take advantage of an opportunity.

Business as usual activities can often be mistaken for projects. Generally it is the uniqueness of the activity that is the deciding factor – do we do this every year? If so, then it is not truly a project – although you can use project methods to get it done.

What is a project?

Common project termsDeliverables: Tangible ‘things’ that the project producesMilestones: Dates by which major activities are performed.Tasks: Also called Actions. Activities undertaken during the projectRisks: Potential problems that may ariseIssues: Risks that have happenedGantt Chart: A specific type of chart showing time and tasks. Usually created by a Project Management program like MS Project.Stakeholder: Any person or group of people who may be affected by your project

Project Management’s FIVE processes

The capacity to marshal resources, lay out plans, program work and spur effort for a temporary endeavor which is finite in that it has a defined beginning and ending, and which is undertaken to create a unique product or service.

• Initiating a project• Planning the project• Executing the project/plan• Controlling execution of the project/plan• Closing the project

Project Management’s THREE elements

The capacity to marshal resources, lay out plans, program work and spur effort for a temporary endeavor which is finite in that it has a defined beginning and ending, and which is undertaken to create a unique product or service.

TasksResourcesTime

Project Management success factors

The capacity to marshal resources, lay out plans, program work and spur effort for a temporary endeavor which is finite in that it has a defined beginning and ending, and which is undertaken to create a unique product or service.

On time deliveryWithin budget deliveryHigh quality delivery

Project Life Cycle

Project Life Cycle

Project Life Cycle

Project Life Cycle

Project Management Five Processes

Initiating Process Planning Process Executing Process Controlling Process Closing Process

PM Fundamentals

Project ConstraintsProject scope – Have all the project requirements (i.e., deliverables) been completed? Project cost – Is the cost of the project close to the amount the customer has agreed to pay? Schedule – Was the project completed on time?Customer satisfaction – Is the customer happy with the quality of the project?

Work-Breakdown Structure (WBS)

Hierarchy of tasks required to complete projectEach task is broken into smaller tasks that can be

managed and estimatedDefine task dependencies

▪ Some tasks must begin at the same time, some must end at the same time and some cannot start until the other tasks have finished.

Estimate task durations and costMay be inputted into project management

software

Work-Breakdown Structure (WBS)

Project Scheduling

Activity Duration EstimatesThe first step in scheduling is to estimate how long each activity will take.The duration estimate is the total elapsed time for the work to be done PLUS any associated waiting time.The person responsible for performing the activity should help make the duration estimate.

Project Start and Finish Times

It is necessary to select an estimated start time and a required completion time for the overall project.

Schedule CalculationsA project schedule includes:

The earliest times (or dates) at which each activity can start and finish, based on the project's estimated start time (or date)The latest times (or dates) by which each activity must start and finish in order to complete the project by its required completion time (or date)

Earliest Start and Finish TimesEarliest start time (ES) is the earliest time at which a particular activity can begin.Earliest finish time (EF) is the earliest time by which a particular activity can be completed.

EF – ES = Activity Duration Estimate

Latest Start and Finish TimesLatest start time (LS) is the latest time an

activity must be started in order for the entire project to be completed by its completion time.

Latest finish time (LF) is the latest time an activity must be finished in order for the entire project to be completed by its completion time.

LF – LS = Activity Duration Estimate

Slack timeSlack or float is the amount of time that a task in a project network can be delayed without causing a delay to:

• Subsequent tasks (free slack)

• Project completion date (total slack)

Free vs. Total slack

Free slack (or float): The free slack of an activity is the time this activity can be delayed without impact on the following activity.

Total slack (or float): The total slack of an activity is the time this activity can be delayed without impact on the finish date of the project.

Critical ActivityAn activity that has a total slack equal to zero is said to be a 'critical activity', which means that a delay in the finish time of this activity will cause the entire project to be delayed by the same amount of time.

Total Slack (Cont.)If total slack is positive, it is the maximum time the activities on the path can be delayed.

If total slack is negative, it is the amount of time the activities on the path must be accelerated.

Example

Critical PathThe critical path is the longest path in the diagram.The activities that make up the critical path have the least slack.

Types of Critical Paths

Noncritical paths have positive values of total slack.

Critical paths have zero or negative values of total slack.

Critical Path AnalysisLongest path through the network of activities

• Task dependencies compressed as much as possible• Tasks may be moved to non-critical paths to shorten

critical path • If tasks on critical path run late, the project will be

late.

Determining the Critical Path for Project X

Various Project Management Tools/Techniques

Gantt Charta simple bar chart that depicts project tasks against a calendar

Program Evaluation and Review Technique (PERT)is a graphical network model that depicts a project’s tasks and the relationships between those tasks (Dependencies and Critical paths are found in PERT charts)

Microsoft ProjectMost widely used project management softwarehttp://office.microsoft.com/en-us/project/default.aspx

Develop a schedule Gantt Chart

Gantt Chart of WBS created by MS Project

PERT Chart Example

Project Planning

Steps in Project Planning• Specification• Global Structure• Project Breakdown• Task Delegation• Time Estimation• Identification of needed resources• Integration of Time/Personnel• Setting Controls/Gates

Specification• A statement of the problem, not the solution. • Normally contains errors, ambiguities, &

misunderstandings• Need a written definition of requirements and deadlines• Should be clear, complete and rigorous to eliminate

misunderstandings, contradictions, oversight of technical difficulties

Sources of Problems• The work duplicates or negates work already done• The deliverable is not appropriate• The time frame is unrealistic• The work depends on work of others• The resources are not available• The cost is prohibitive

Structure• Tasks that must be accomplished• Relationship of each task to the specifications• Who will do what?• When will it be done?

Project Breakdown• Break project down into a series of task• Break each task down into subtasks• Continue until all items are doable and understandable• Skills/processes that must be learned• Equipment/supplies that must be ordered• Preliminary tests• Sample collection• Sample preparation• Measurements

Experimental setup Protocol

• Data analysis• Statistical Analysis

Sample Collection• Contact supplier (at Tech Farm)• Prepare collection materials

Sample containerPreservative (e.g. Sodium Citrate)

• Collect sample• Perform preliminary quality control• Transport sample• Store sample

Project Breakdown

Task Allocation• Assign tasks to specific people (or teams)• Order tasks so that they occur in a logical sequence• Match tasks to abilities of the team• Allow for flexibilities – the team can do sub-planning• Match task with personalities and goals

Person 1 needs more responsibility Person 2 needs more detail Person 3 needs to learn how to use the fluorescent microscope

• One person (or team) may do multiple tasks (e.g. to reduce boredom).• Do not over specify

Time Estimation• Start at the bottom of the tree. I.e. sum the time for individual subtasks to

estimate total task time• Times are based on previous experience• They are always wrong – plan accordingly• Example: How long should it take you to climb the statue of Liberty?

Estimate the number of steps Estimate the time per step Can do a preliminary study on a flight of stairs

• Add extra buffer where tasks depend on one another• Weigh speed against quality

Project Controls• Include

milestones (clear, unambiguous targets of what, by when) established means of communication

• Provide job satisfaction• Indicate progress to your supervisors• Allow for quality control checkpoints• Provide points of communication• You should distinguish milestones from mill-stones

Planning Strategy• Formulate an initial plan• Check with team members for

Input on timing Review of tasks and feasibility

• Revise the plan• Check with your supervisor• Revise the plan• Get consensus of team members• Get supervisor approval

Quality Controls• Establish gates for transition to the next phase (gate/stage processes)• Must examine critical parameters• Should not be overly burdensome

o With respect to time requirementso With respect to costo With respect to what is measured

• Leave specifics toward the end

Planning for Unknowns

• Identify risky taskso Have not been done beforeo Rely on new equipmento Depend on training of personnel

• Allow extra margins for risky tasks• Rehearse risky (and expensive) tasks prior to the real thing

E.g. run the experiment with an inexpensive peptide before using that $2,000/mg designer peptide.

Project Risk “Project risk is an uncertain event or condition that, if it occurs, has a positive or negative effect on a project objective”

“A combination of the probability of a defined threat or opportunity (Likelihood) and the magnitude of the consequences of the occurrence (Impact) defines a Risk Index”

Risk Impact

Threat → Scope → Poor Quality ProductThreat → Schedule → Late DeliveryThreat → Cost → Overspend

Risk Management – Key Points

• Make the management of risk integral to the way the project is managed

• Ensure that cost and time contingencies are consistent with identified risks

• Focus on the “significant few” – don’t try to manage too many risks

• Be vigilant and proactive

Project Monitoring

AndControl

Project MonitoringTypical Monitoring Activities

• Regular reviews of progress against schedule using WBS as basis (Plan against Baseline)

• Regular review of actual costs (O/P from SAP) against budgeted costs and Earned Value at WBS level

• Regular review of resource loading• Regular progress meetings with project team• Regular meetings with contractors• Production of periodic progress reports• Risk reviews• Inspections/ audits

Project ControlTypical Control Activities

• Assign responsibilities at Work Package level• Staged authorisation of work to be done• Staged release of budgets • Ensure PM has a ‘Management Reserve’ under his

control• Seek corrective action reports when WPs go ‘off

track’ (overrunning or overspending)• Release Management Reserve carefully

Project Cost Management

What is Cost and Project Cost Management?

Cost is a resource sacrificed or foregone to achieve a specific objective, or something given up in exchange

Costs are usually measured in monetary units, such as dollars

Project cost management includes the processes required to ensure that the project is completed within an approved budget

Project Cost Management Processes

Cost estimating: Developing an approximation or estimate of the costs of the resources needed to complete a project

Cost budgeting: Allocating the overall cost estimate to individual work items to establish a baseline for measuring performance

Cost control: Controlling changes to the project budget

Basic Principles of Cost Management

Most members of an executive board have a better understanding and are more interested in financial terms than IT terms, so IT project managers must speak their language.

• Profits are revenues minus expenses.• Life cycle costing considers the total cost of ownership, or development

plus support costs, for a project. • Cash flow analysis determines the estimated annual costs and benefits

for a project and the resulting annual cash flow.

• Tangible costs or benefits are those costs or benefits that an organization can easily measure in dollars.

• Intangible costs or benefits are costs or benefits that are difficult to measure in monetary terms.

• Direct costs are costs that can be directly related to producing the products and services of the project.

• Indirect costs are costs that are not directly related to the products or services of the project, but are indirectly related to performing the project.

• Sunk cost is money that has been spent in the past; when deciding what projects to invest in or continue, you should not include sunk costs.

Basic Principles of Cost Management

• Learning curve theory states that when many items are produced repetitively, the unit cost of those items decreases in a regular pattern as more units are produced.

• Reserves are dollars included in a cost estimate to mitigate cost risk by allowing for future situations that are difficult to predict.

Contingency reserves allow for future situations that may be partially planned for (sometimes called known unknowns) and are included in the project cost baseline.

Management reserves allow for future situations that are unpredictable (sometimes called unknown unknowns).

Basic Principles of Cost Management

Cost EstimatingProject managers must take cost estimates seriously if they want to complete projects within budget constraints.

It’s important to know the types of cost estimates, how to prepare cost estimates, and typical problems associated with IT cost estimates.

Types of Cost Estimates

Cost Management PlanCost management plan is a document that describes how the organization will manage cost variances on the project.

A large percentage of total project costs are often labor costs, so project managers must develop and track estimates for labor.

Cost Estimation Tools and TechniquesBasic tools and techniques for cost estimates:

• Analogous or top-down estimates: Use the actual cost of a previous, similar project as the basis for estimating the cost of the current project.

• Bottom-up estimates: Involve estimating individual work items or activities and summing them to get a project total.

• Parametric modeling: Uses project characteristics (parameters) in a mathematical model to estimate project costs.

• Computerized tools: Tools, such as spreadsheets and project management software, that can make working with different cost estimates and cost estimation tools easier.

Constructive Cost Model (COCOMO)

• Barry Boehm helped develop the COCOMO models for estimating software development costs.

• Parameters include:o Function points: Technology-independent assessments of the functions involved

in developing a system.

o Source Lines of Code (SLOC): A human-written line of code that is not a blank line or comment.

• Boehm suggests that only parametric models do not suffer from the limits of human decision-making.

Typical Problems with IT Cost Estimates

• Developing an estimate for a large software project is a complex task that requires a significant amount of effort.

• People who develop estimates often do not have much experience.

• Human beings are biased toward underestimation.

• Management might ask for an estimate, but really desire a bid to win a major contract or get internal funding.

Surveyor Pro Project Cost Estimate

Surveyor Pro Software Development Estimate

Cost Budgeting• Cost budgeting involves allocating the project cost estimate to individual work items over

time.

• The WBS is a required input for the cost budgeting process because it defines the work items.

• Important goal is to produce a cost baseline:

A time-phased budget that project managers use to measure and monitor cost performance.

Surveyor Pro Project Cost Baseline

Cost ControlProject cost control includes:

• Monitoring cost performance.

• Ensuring that only appropriate project changes are included in a revised cost baseline.

• Informing project stakeholders of authorized changes to the project that will affect costs.

Many organizations around the globe have problems with cost control.

Earned Value Management (EVM)

EVM is a project performance measurement technique that integrates scope, time, and cost data.Given a baseline (original plan plus approved changes), you can determine how well the project is meeting its goals.You must enter actual information periodically to use EVM.More and more organizations around the world are using EVM to help control project costs.

Earned Value Management TermsPlanned value (PV), formerly called the budgeted cost of work scheduled (BCWS), also called the budget, is that portion of the approved total cost estimate planned to be spent on an activity during a given period.Actual cost (AC), formerly called actual cost of work performed (ACWP), is the total of direct and indirect costs incurred in accomplishing work on an activity during a given period.Earned value (EV), formerly called the budgeted cost of work performed (BCWP), is an estimate of the value of the physical work actually completed.EV is based on the original planned costs for the project or activity and the rate at which the team is completing work on the project or activity to date.

Rate of PerformanceRate of performance (RP) is the ratio of actual work completed to the percentage of work planned to have been completed at any given time during the life of the project or activity.

For example, suppose the server installation was halfway completed by the end of week 1. The rate of performance would be 50 percent (50/100) because by the end of week 1, the planned schedule reflects that the task should be 100 percent complete and only 50 percent of that work has been completed.

Earned Value Calculations for One Activity After Week One

Earned Value Formulas

Rules of Thumb for Earned Value Numbers

Negative numbers for cost and schedule variance indicate problems in those areas.

A CPI or SPI that is less than 100 percent indicates problems.

Problems mean the project is costing more than planned (over budget) or taking longer than planned (behind schedule).

Earned Value Calculations for a One-Year Project After Five Months

Earned Value Chart for Project after Five Months

Project Portfolio ManagementMany organizations collect and control an entire suite of projects or investments as one set of interrelated activities in a portfolio.

Project portfolio management has five levels:1. Put all your projects in one database.2. Prioritize the projects in your database.3. Divide your projects into two or three budgets based on type of investment.4. Automate the repository.5. Apply modern portfolio theory, including risk-return tools that map project risk on a curve.

Using Software to Assist in Cost Management

Spreadsheets are a common tool for resource planning, cost estimating, cost budgeting, and cost control.

Many companies use more sophisticated and centralized financial applications software for cost information.

Project management software has many cost-related features, especially enterprise PM software.

Sample Project Portfolio Management Screen Showing Project Health