Ms Project Schedule - PowerPoint

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					Effective Project
Management


   Barbara Stone & Jodie Mathies
   October 4, 2007
Agenda
• Project schedule review
• MS Project demo of project schedule
  building
• Critical Path
• Schedule Compression
• Critical Chain
• What are project financials?
• Why care about project financials?
• Creating a cost baseline
• MS Project example                    2
What is the end goal of the
current process?
A project schedule:
 •   With tasks in appropriate level of
     detail
 •   Organized so that the overall
     project takes the shortest amount
     of time, without over-committing
     the resources


                                          3
Steps to a project schedule


• WBS – activities and tasks
• Sequencing
• Duration estimating
• Schedule development


                               4
Six Criteria to Test
for WBS Completeness
•   Status/Completion is measurable
•   The activity is bounded
•   The activity has a deliverable
•   Time and cost are easily estimated
•   Activity duration is within acceptable limits
•   Work assignments are independent

Seventh Criteria – Project manager‟s
  judgment that the WBS is not complete

                                                    5
Factoring in constraints
 • Factor if multiple working on task
   together? – discuss XP example.
 • Also factor if do not have resource 100%
   of time. Why this is a bad idea.
 • Adding „Project Management‟ factor
 • Do Jodie and Barbara do this?




                                          6
Putting it all together
 Tasks
+ Duration
+ Sequencing
+ Start date
= Project Schedule


Does it meet Deadline / Scope / $
  constraints?
                                    7
Gantt charts
• Best when shows task
  interdependencies and resources
  assigned
• Does not help organize complex
  projects as effectively as WBS &
  network diagrams
• Should be completed after WBS
• Effectively shows progress & time
• Widely understood communication
  tool
                                      8
Common scheduling pitfalls
• Planned downtime – calendar events,
  team needs
• External interfaces – contractors,
  external teams
• Constraints – duration, access, etc.
• Time to come up to speed
• 100% optimization
• Just plain missed it
                                         9
Critical path - assesses
• What tasks must be carried out
• Where parallel activity can be performed
• The shortest time in which you can
  complete a project
• Resources needed to execute a project
• The sequence of activities, scheduling and
  timings involved
• Task priorities
• The most efficient way of shortening time
  on urgent projects.

                                               10
Critical path




                11
Let‟s talk about „safety‟

• Within individual tasks


• At critical milestones („Critical Chain‟)




                                          12
Critical chain
• Reduce activity duration estimate by 50%
• Eliminate resource contention by leveling
  project plan
• Add resource buffers
• Size and place feeding buffers on all paths
  that feed the critical chain
• Start gating tasks as late as possible
• Provide resources with activity durations
  and estimated start times, not milestones
• Use buffer management to control the plan

                                            13
Factoring in constraints
 • Factor if multiple working on task
   together? – discuss XP example.
 • Also factor if do not have resource 100%
   of time. Why this is a bad idea.
 • Adding „Project Management‟ factor
 • Do Jodie and Barbara do this?




                                          14
Schedule compression
 – work w/customer
• Careful, detailed planning – no
  missed steps
• Customer involvement & commitment
  to fast turnarounds
• Customer acceptance that initial
  delivery will not be perfect



                                  15
Schedule compression
– work with schedule
Analyze WBS
  • Biggest impact on elapsed time (Pareto
    80/20)
  • Identify & evaluate alternate strategies
    to minimize time intensive or difficult
    tasks
  • Consider duplicating work to reduce risk



                                               16
Schedule compression
- universal
• Use a more experienced team
• Encourage creative solutions
• Monitor morale
• Build infrastructure well in advance
• Do proof of concept as early as
  possible
• TRACK YOUR PROJECT

                                         17
MS Project
Project Schedule demo


• WBS – activities and tasks
• Sequencing
• Duration estimating
• Schedule development – critical
  path

                                    18
Agile




        19
Alternative - Agile
Project Schedule demo




                        20
What are project financials?

Ways that you measure the   cost   and   value of
  your project


These can be projected at the start of your project
  and tracked throughout the course of your
  project


The delta between the baseline and ending cost is
  often used to measure the project success

                                                 21
What can be included?

• Project cost
• Benefit
• Opportunity cost




                        22
Project cost: Manpower
Employees often tracked hourly
• often calculated using a blended employee rate
• Sometimes tiered rates for job families
• precise hourly rates for contractors

Does this mean you need to estimate tasks at the
  hourly level?

‘job of work’ contracts for vendors


                                               23
Project cost: Other expenditures
•   Materials
•   Rent
•   Fees
•   Travel
•   …what else?


Useful to think of these costs in terms of the
  schedule:
• By when will you need to have the money?
• What are the associated tasks?
                                                 24
Benefit
quantified ending value of the product
  of project
• profit from sales
• efficiency gained or other cost avoided


Many benefits are tricky to quantify: customer /
  employee satisfaction, „better decision-making‟,
  etc
                                                25
Is this project worth it?
You can‟t always quantify the benefits as $
amounts

But when you can:   ROI


 Benefit of project deliverables
– cost of project
= Return on Investment

                                              26
Opportunity cost
In an organizational setting, choosing to
  undertake a project is part of overall
  financial management

• What else can be done with the resources this
  project would need?
• Is this project the most important use of the
  resources?



                                                  27
Why do we care about project
financials?
In the real world – the bottom line matters
• money is time; time is money
• Resources are limited; need to spend them in
  the best way
• Cannot understand return without costs




                                                 28
Why do we care about project
financials? (Take 2)

Because you have to.
• Some level of financial understanding of the
  project is required.
• Your company / organization will most likely
  have guidelines that you will need to follow
• Even if not, it behooves you to do a reasonable
  level anyway



                                                 29
When do you calculate Project
financials?
• Beginning: create baseline budget

• During: track progress to baseline;
  adjust budget as necessary

• End: success metric of project



                                        30
As you go through the Planning Phase,
cost estimates‟ accuracy increases


’Class 1’ - Variance +/- 30% to 50% - High
   level estimate at the Phase level.

‘Class 2’ - Variance +/- 15% to 25% - As
  many details as possible.

‘Class 3’ - Variance +/- 10% - Completely
  filled out as applicable.
                                             31
Cost Estimating Tools & Techniques
• Analogous: „we did more or less the
  same thing last year and it took us 6
  months and cost $400K”

• Parametric: „new home construction =
  $130/square foot‟ Software: Function (or
  Object) Point Analysis

• Bottom-up: estimating cost of individual
  tasks, then rolling up

• etc
                                             32
Cost Budgeting tip:

Don’t forget contingency for risk
Somewhat equivalent to „safety‟ in schedule

Apply to Cost Baseline at milestone points, not
  factor for every task




                                              33
How do projects get funded?
What do I mean by ‘funded’?
  Approval to use the resources required.


Projects can get funded:
  • for entire project, at beginning
  • incrementally, at specified points

                                            34
35
I can hear you saying:

How does this relate to my project?




                                      36
You have already been working on
cost elements for your project

• Time estimates for team members
  ‘effort’ vs ‘duration’

• Understanding purchases
• Understanding time & cost of risk
  mitigation plans


                                      37
    Your cost baseline

    (Effort in hours of all tasks * cost per hour)
+   Other budgeted project expenses

     Project cost baseline




                                                 38
MS Project
Project Cost baseline development




                                    39
Assignments – for next week
• Project schedule, showing WBS, project
  task dependencies, functional milestones,
  and critical path
• Project cost baseline, with description of
  assumptions ($ / hour of team members,
  etc) Be able to track over / under
  budget amounts at project milestones
• Read Effective Project Management,
  Chapter 12

                                           40
Back-up slides
Cost & Schedule: 2 variables
A project can be:

• On time and on budget

• On time and under budget

• Late and on budget

• Etc

                               42
3rd variable: % complete
= % Work accomplished, measured in
  budgeted amounts

Ex:
• total hours budgeted for project = 100

• Half of estimated work accomplished in 30
  hours

• % complete = 50%                            43
EVA – Earned Value Analysis
combines Cost, Schedule and %
  complete variables into
  performance metrics

Good way to show „project health‟, but
  only as good as your initial schedule
  and budget!
                                          44
EVA Calculations
Planned value = $ amount of work you expected to
complete at this point in the project

Earned Value = $ amount of work you expected what you
have accomplished to take

Actual Cost            = $ amount you have actually spent at this
point in the project

Performance metrics:
Cost Performance Index = project ratio of expected to
actual cost (EV/AC)

Schedule Performance Index = project ratio of
accomplished to planned work (EV/PV)                          45
Formulas to know
•   PV (BCWS)        •   % complete = BAC
•   EV (BCWP)
•   AC (ACWP)        •   PERT (P+4M+O)
•   CV EV-AC                      6
•   CPI EV/AC        •   Standard deviation
•   SV EV-PV                 (P-O)
•   SPI EV/PV                   6
•   EAC BAC/CPI or   •   Task Variance
    AC/BAC               •   (P-O) squared
•   ETC EAC-AC                  6
•   VAC BAC-EAC      •   Present value = FV
                                       (1+r)n


                                                46
An example w/ MS Project




                           47
  % Complete




Work is 70% complete 5 months along (62.5% of duration)

                                                          48
But what is the actual cost?




                               49
EVA Calculations
Planned value = $24,000    (62.5% of budget)
Earned Value = $26,880     (70% of budget)
Actual Cost    = $34,875   (91% of budget)


CPI =   .77   (bad)
SPI = 1.12 (good)


What was the priority on this project, cost or
schedule?                                    50
Globalization Workflow




                         51
Technique review
• Affinity Diagram
• Cause and effect/Ishikawa/fishbone
• Six Hats




                                       52
Affinity diagrams




                    53
Cause and Effect Diagram

what is it ?                 what is it used for ?
                             •  Identifying potential causes
• A Cause and Effect            of a problem or issue in an
  Diagram is an analysis        orderly way (example: Why
  tool to display possible      has membership in the band
  causes of a specific          decreased?; why isn't the
                                phone being answered on
  problem or condition.         time?; why is the production
                                process suddenly producing
                                so many defects?)
                             •  Summarizing major causes
                                under four categories (e.g.,
                                People, Machines, Methods,
                                and Materials or Policies,
                                Procedures, People, and
                                Plant)




                                                           54
Cause and Effect Diagram
benefits



 • Cause and Effect Diagrams provide a
   visual format which allows people to
   catalog all of the ideas about factors
   that may contribute to an effect.

 • Can also be used as a communication
   tool to describe causal factors


                                        55
Cause and Effect Diagram
example


          Reasons Why the Phone is Not Answered




                                                  56
Cause and Effect Diagram
how to construct a fishbone




1. Write the issue (problem or process condition) on the right side.



                                                                  57
Cause and Effect Diagram
how to construct a fishbone


1.   Identify the major cause categories and write them in the four boxes
     on the Cause and Effect Diagram.
2.   Brainstorm potential causes of the problem. As possible causes are
     provided, decide as a group where to place them on the Cause and
     Effect Diagram. It is acceptable to list a possible cause under more
     than one major cause category.
4.   Review each major cause category. Circle the most likely causes on
     the diagram.
5.   Review the causes that are circled and ask "Why is this a cause?"
     Asking "why" will help get to the root cause of the problem. Ask
     “why” five times.
6.   Reach an agreement on the most probable cause(s).




                                                                     58
Let‟s try it

Students don‟t



                 Lack of communication
                  between faculty, staff
                      And students




                                 59
•   Students don‟t understand how short term policy changes will
    impact the long run
    •   Don‟t understand how they were administered before
    •   No history – alumni linkage communication
•   No venue for administration/faculty to inform the students of what
    they are discussing
    •   Key faculty/staff have left
    •   News committee decimated
    •   Faculty & students used to meet – meetings have been discontinued
•   Don‟t feel students need to know – internal decision
•   Short staffed
    •   No budget to hire
    •   Staff leave for better pay/positions
•   No incentive to communicate
•   No one clearly charged with communicating
•   No clear delineation of areas of responsibility
•   Are delegates the best people to take on

                                                                            60

				
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