IT PROJECT MANAGEMENT

Project Estimating Techniques and Tools

Institute of Information and Communication Technology
University of Sindh, Jamshoro

Dr. Zeeshan Bhatti

MPhil (IT)
Chapter 3
DR. ZEESHAN BHATTI

PROJECT MANAGEMENT PROCESS

Initiation

Planning

Execution
To help guide you
through the process
you need a
roadmap of some
type

Controls

Closeout
DR. ZEESHAN BHATTI

PROJECT MANAGEMENT PROCESS

DR. ZEESHAN BHATTI

PROJECT LIFE CYCLE

FIGURE 1.1
14

DR. ZEESHAN BHATTI

Roadmap to Project Management Success

Statement
of Work
Form
Project
Team

Purpose

Work
Breakdown
Structure

Responsibility
Matrix
R

Project Background

Gantt

Network

Resource
Plan

Budget

A
A

Project Deliverables

S
R

TIME

Perform
Tasks

PROJE
CT

LEADERSHIP

AR
NED

S
RE

EN

LE

PO
RT

Track
Progress

SO

LES
EOS
CL

COMMUNICATION

O
UT

Evaluate
Success

ME

S
I NG

Conduct
Close-Out
Meeting

Share
Lessons
Learned

BOOK
E
T

ET

PLAN

E
L
IM P

Update
Plan

Resolve
Issues

DR. ZEESHAN BHATTI

Manage
Change

PROJECT PLAN CONTENTS

Statement of work (SOW)
Work breakdown structures
(WBS)
Responsibility assignment
matrices

Risk management plan

Communications plan
Quality plan

Verification and validation

plan

Project schedule

Resource plans/histograms
Budget
DR. ZEESHAN BHATTI

PROJECT NOTEBOOK
Project Pre-plan
Background information
Customer data
Third-party data (vendors, suppliers, etc.)

Project Plan

Statement of Work (SOW)

Work Breakdown Structure (WBS)
Organization/responsibility charts
Schedule data
Budget/capital plan
Risk management

Project Implementation
Meetings (agenda/minutes)
Team/management/customer/third party progress
reports
Customer change requests/decision matrix issue
resolution forms/reports

Project Close-out
Final evaluation of measurable success
indicators
Close-out meeting (agenda/minutes)
Final project report
Reference letters
Lessons learned

Project Administration

Contractual documents
Invoices
Expenses
Correspondence
Contact log

DR. ZEESHAN BHATTI

Roadmap to Project Management Success

Statement
of Work

Project Background

Project Deliverables

S
R

TIME

PROJE
CT

BOOK
E
T

ME
Perform
Tasks

S
I NG

Project Deliverables

LEADERSHIP

LE

AR
NED

Track
Progress

RE

SO

LES
EOS
CL

COMMUNICATION

O
UT

Evaluate
Success

Budget

ET

Project Background

Share
Lessons
Learned

Resource
Plan

PLAN

Purpose

Conduct
Close-Out
Meeting

Gantt

Network

EN

Purpose

Responsibility
Matrix

PO
RT

Form
Project
Team

Work
Breakdown
Structure

Statement
of Work

E
L
IM P

Update
Plan

Resolve
Issues

DR. ZEESHAN BHATTI

Manage
Change

STATEMENT OF WORK PURPOSE

Define the scope of the project

Establish customer expectations

Serve as a contract if necessary

DR. ZEESHAN BHATTI

A GOOD SOW WILL ANSWER

What is the purpose or goal of the project?

Why is the project being done?

Who is the initial customer?
Who is the end user or final customer?
What are the customer deliverables?
What technical support is required for the deliverables?

DR. ZEESHAN BHATTI

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AND CONTINUE TO ANSWER

What is the budget?

What is the final date for the deliverables?

What are the measurable success indicators (metrics)?
What kind of support is required from the customer?
What contingency plans are in place?

DR. ZEESHAN BHATTI

11

SOW GENERIC CONTENTS

Customer
Project
Title
Purpose
Background
Deliverables
Measurable success indicators
Customer support
Risk plans
DR. ZEESHAN BHATTI

12

A PROPOSAL FORM FOR

AN AUTOMATIC
VEHICULAR TRACKING
(AVL) PUBLIC
TRANSPORTATION
PROJECT

DR. ZEESHAN BHATTI

13

RISK ANALYSIS FOR

500-ACRE WIND
FARM

DR. ZEESHAN BHATTI

14

Roadmap to Project Management Success

Work
Breakdown
Structure

S
R

TIME

Perform
Tasks

S
I NG

PROJE
CT

ME

ET

BOOK
E
T

LEADERSHIP

LE

AR
NED

RE

SO

Track
Progress

COMMUNICATION

O
UT

Evaluate
Success

PLAN

LES
EOS
CL

Share
Lessons
Learned

Budget

Project Deliverables

Conduct
Close-Out
Meeting

Resource
Plan

EN

Purpose

Project Background

Gantt

Network

PO
RT

Work
Breakdown
Structure

Form
Project
Team

Responsibility
Matrix

Statement
of Work

E
L
IM P

Update
Plan

Resolve
Issues

DR. ZEESHAN BHATTI

Manage
Change

15

WORK BREAKDOWN STRUCTURE

PURPOSE
Identify all of the work that needs to be done to complete the project.

Structure the work into logical components and subcomponents.

Define the work to a level of detail so individual responsibilities can
be assigned.

Summarize and report project data.

DR. ZEESHAN BHATTI

16

REPRESENTATIVE WORK BREAKDOWN STRUCTURE

TITLE

Level I
(Noun)
Level II
(Noun)

DELIVERABLE

ACTIVITY

Level III
(Action Verbs)

TASK
(WORK PACKAGE)

PHASE

FUNCTION

"CHUNK" OF
WORK

PROJECT
MANAGEMENT

ACTIVITY

TASK
(WORK PACKAGE)

Level IV
(Action Verbs)

DR. ZEESHAN BHATTI

17

WBS Outlining Approach

I. Main Project Deliverable
A. Major Element
1. Activity
2. Activity
a. task
b. task
c. task
3. Activity
B. Major Element
1. Activity
2. Activity

Level 1

Dr. Zeeshan Bhatti

Level 2
Level 3

Level 4
Level 3

The outline
approach is
used by
Microsoft
Project

Level 2
Level 3

18

Roadmap to Project Management Success

Responsibility
Matrix

Project Background

Project Deliverables

ME
Perform
Tasks

LEADERSHIP
COMMUNICATION

SO

LE

AR
NED

Track
Progress

RE

PROJE
CT

TIME

BOOK
E
T

O
UT

Evaluate
Success

S
R

LES
EOS
CL

Share
Lessons
Learned

S
I NG

Conduct
Close-Out
Meeting

A
A

ET

Budget

PLAN

A
A

Resource
Plan

Gantt

Network

EN

Purpose

Responsibility
Matrix

PO
RT

Form
Project
Team

Work
Breakdown
Structure

Statement
of Work

E
L
IM P

Update
Plan

Resolve
Issues

DR. ZEESHAN BHATTI

Manage
Change

19

RESPONSIBILITY ASSIGNMENT MATRIX

(RAM) PURPOSE
Ensure that all tasks are assigned to people
Show levels of involvement of people to work

DR. ZEESHAN BHATTI

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TEST SURVEY ON SAMPLE

FINALIZE SURVEY

CONDUCT SURVEY

COLLECT SURVEY

IDENTIFY POTENTIAL MARKET

IDENTIFY SURVEY POPULATION

DEVELOP SURVEY

SUPPORT
STAFF

SENIOR
MANAGEMENT

MARKETING STUDY

CUSTOMER

RASIC Method

PROJECT
MANAGER

TEAM
MEMBER

RESPONSIBILITY ASSIGNMENT MATRIX

LEGEND
R - RESPONSIBLE
A - APPROVE
S - SUPPORT (DOES THE WORK)
I - INFORM
C - CONSULT

R/S

ANALYZE DATA
REPORT RESULTS AND SUGGESTION

I
A

DR. ZEESHAN BHATTI

S
21

RASIC CODING SYSTEM

R = Responsible
Ensures that the assigned work is completed

A = Approve
Approves that the work meets all requirements

S = Support
Does the work

I = Inform
Is kept informed of work status

C = Consult
Is consulted on the work
DR. ZEESHAN BHATTI

22

Roadmap to Project Management Success

Statement
of Work
Form
Project
Team

Purpose
Project Background
Project Deliverables

Work
Breakdown
Structure

Responsibility
Matrix

Network

Resource
Plan

Budget

Gantt

A
A

Gantt

Network

S
R

TIME

Perform
Tasks

PROJE
CT

LEADERSHIP

AR
NED

S
RE

EN

LE

PO
RT

Track
Progress

SO

LES
EOS
CL

COMMUNICATION

O
UT

Evaluate
Success

ME

S
I NG

Conduct
Close-Out
Meeting

Share
Lessons
Learned

BOOK
E
T

ET

PLAN

E
L
IM P

Update
Plan

Resolve
Issues

DR. ZEESHAN BHATTI

Manage
Change

23

PROJECT SCHEDULE PURPOSE

Determine if requested completion date is possible.

Identify start and completion dates of all work.

Determine the controlling sequence of activities.
Provide data for resource allocation.
Track progress by providing a baseline.

DR. ZEESHAN BHATTI

24

SCHEDULING
Step 1: Estimate Activity Durations
Step 2: Determine Activity Sequence By Creating a Network
Diagram
Step 3: Calculate the Schedule Using Critical Path Method
(CPM) Procedures
Step 4: Show the Schedule by Drawing Gantt and/or
Milestone Charts

DR. ZEESHAN BHATTI

25

WBS/NETWORK DIAGRAM LINKAGE

i
h

c
f

g
DR. ZEESHAN BHATTI

26

ITERATIVE PROCESS
The plan will evolve as the project evolves
The plan is reviewed and updated as more information
becomes available and uncertainties become less
uncertain
Plan

Plan

Plan

Monitor &
Review

Monitor &
Review

Monitor &
Review

DR. ZEESHAN BHATTI

27

PBS (PRODUCT BREAKDOWN STRUCTURE)

EXAMPLE
Project

Project
Management
Deliverables

Design
Deliverables

Database
Deliverables

GUI
Deliverables

Functional
Deliverables

Produce Use
Cases
Produce Activity
Diagrams
Produce Class
Diagrams

DR. ZEESHAN BHATTI

28

USE CASE
Describes a unit of functionality from a users perspective
May be text or diagram

Therefore they provide a good tool for Project Task Planning

They also can determine the nature of the project process
How many development iterations?

DR. ZEESHAN BHATTI

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USE CASE EXAMPLE BIG JOHNS

Priority 1

Place Order
Retailer
Send Payment
Dispatch Order

Send Invioce
Staff

Priority 2
Raise Purchase Order

Make Payment
DR. ZEESHAN BHATTI

30

USE CASE EXAMPLE BIG JOHNS

Each Use Case Shown can be shown as activities in the PBS

The prioritisation can be used to describe the activities for two

development iterations
This will be significantly different to the process if only one iteration
was used

DR. ZEESHAN BHATTI

31

GANTT CHART EXAMPLE

Represent the following on a Gantt chart
Task
A
B
C
D
E
F
G
H
I
J

Start (wk no) Duration (wks) %Complete

1
5
100
2
3
100
1
8
75
3
4
100
5
5
60
2
4
25
10
6
0
6
6
100
7
2
50
8
6
50

Assume this information was taken at the end of week 8

DR. ZEESHAN BHATTI

32

GANTT CHART EXAMPLE

Task
A
B
C
D
E
F
G
H
I
J

Week
1 2

10 11 12 13 14 15 16

Scheduled Completion
Actual Completion
Under-fulfilled tasks:
Over-fulfilled tasks

C, E, F, I
H, J

DR. ZEESHAN BHATTI

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GANTT CHART DISADVANTAGES

Not ideal for showing inter-relationships

Locating an activity requires three simultaneous decisions:

Method
Time
Resources

DR. ZEESHAN BHATTI

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COMPLEXITY
Number of tasks?

Number of people?
Size of Budget?
Number/Nature of constraints
Dependencies between tasks

DR. ZEESHAN BHATTI

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WHY NETWORK DIAGRAMS?

Splits up the decision making process into
Method/logic - the order in which tasks have to be completed
Time estimates for the time to completion can be added to each task
Resources these can be added and then analysis carried out

DR. ZEESHAN BHATTI

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TWO METHODS
Activity on Arrow
Traditionally the preferred method

Activity on Node
More popular these days
Supported by most Project Management software tools (i.e. MS Project)

DR. ZEESHAN BHATTI

37

ACTIVITY ON ARROW
Arrows are used to represent an activity
Circles are used to represent the points where activities
meet
i.e. the dependency between activities
A

B
C
D

DR. ZEESHAN BHATTI

38

ACTIVITY ON NODE
Activities are represented
by boxes

Dependencies are
represented by arrows
joining the boxes

Task A

Task B

Task C

Task D

DR. ZEESHAN BHATTI

39

COMPARISON

Task A

Task B

B
C

Task C

Task D

DR. ZEESHAN BHATTI

40

DEPENDENCY EXAMPLE
Task
B cannot
startstart
until Task
is complete
Task
B cannot
untilATask
A is complete

Activity
on Node
Activity on Node
Task A

Task B

Activity on Arrow
Task A

DR. ZEESHAN BHATTI

Task B

41

MORE COMPLEX EXAMPLE

Four activities/tasks:
A, B, K, L
Activity K is dependent on activity A
Activity L is dependent on activities A and B

Task A

Task K

Task B

Task L

DR. ZEESHAN BHATTI

42

THE PROBLEM WITH AOA

The same example in

AoA

Activity K is dependent on activity

A
Activity L is dependent on activities
A and B

Wrong
A

dummy activity

Right
B

DR. ZEESHAN BHATTI

43

NETWORK DIAGRAM METHODS

C
A

Arrow Diagram Method

Precedence Diagram
Method

C
A

DR. ZEESHAN BHATTI

44

PRECEDENCE DIAGRAM METHOD

E

Logic Connection
Activity

DR. ZEESHAN BHATTI

45

EXERCISE 1
Draw the following:
Activity K is dependant on Activity A
Activity L is dependent on Activity B
Activity M is dependent on Activity A and B

DR. ZEESHAN BHATTI

46

EXERCISE 2
Draw the following:
Activity K is dependent on activities A and B
Activity L is dependent on activities B and C
Activity is dependent on activity B

DR. ZEESHAN BHATTI

47

PROJECT EXERCISE 1
Project 1: Verification of a computer system
The followng table shows the activities required for this project.
Activity
ID
1
2
3
4
5
6
7
8
9

Activity
Test Module A
Test Module B
Test Module C
Test Combined Modules
Check User Documents
Print User Documents
Final Systems Check
Prepare Invoice
Ship to Customer

Immediate Predecessor
none
Test Module A
none
Test Module B, Test Module C
Test Combined Modules
Check User Documents
Test Combined Modules
Final Systems Check
Print User Documents, Final
Systems Check

DR. ZEESHAN BHATTI

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Duration
(Days)
4
6
7
4
5
2
9
1
2

ERRORS IN LOGIC
Looping
Due to a mistake in drawing or to errors in identifying dependent
activities

DR. ZEESHAN BHATTI

49

ERRORS IN LOGIC
Dangling
Usually occur when activities are added as an afterthought
Can be avoided by using a single finish node

K
K

LL

Finish

DR. ZEESHAN BHATTI

50

PROJECT EXERCISE 2
Project 2: A presentation
The followng table shows the activities required for this project.
Activity
ID
1
2
3
4
5
6
7
8
9
10

Activity
Book Search
Journal Search
Internet Search
Produce Outline
Prepare Handouts
Print Handouts
Produce Visual Aids
Write Speech Notes
Rehearse Speech
Give Presentation

Duration
Immediate Predecessor
(Days)
none
12
Book Search
6
none
15
Journal Search, Internet Search
10
Produce Outline
7
Prepare Handouts
2
Produce Outline
12
Produce Outline
4
Write Speech Notes
10
Print Handouts, Produce Visual Aids,
1
Rehearse Speech
DR. ZEESHAN BHATTI

51

WHATS IS THE CRITICAL PATH?

Path with least slack
Path with longest duration
Critical Path Method is a project management technique
that analyzes what activities have the least amount of
scheduling flexibility (i.e., are the most mission-critical) and
then predicts project duration schedule based on the
activities that fall along the critical path.
Activities that lie along the critical path cannot be delayed without
delaying the finish time for the entire project.

DR. ZEESHAN BHATTI

52

PROJECT X CRITICAL PATH

SOLUTION
E
2
4

B
1
1
2

A
0
2
2 0

F
1
3
3

C
0
3
2

Activity Name
Float
Duration
ES EF LS LF

D
5
1
3 7

G
0
2
7 5

I
0
2
9 7

J
0
1
9

9 10

10

H
3
8

1
6

9
DR. ZEESHAN BHATTI

53

PROJECT X GANTT CHART SOLUTION

Time
Activity

10

Duration

- Critical

- Non-Critical

- Slack/Float
DR. ZEESHAN BHATTI

54

ENHANCED GANTT CHART

Jan

Feb

Mar

April

May

June

Task A
Task B
Task C

Task D
Task E

Task F

- Critical

- Non-Critical

- Slack/Float
DR. ZEESHAN BHATTI

55

PROJECT MANAGEMENT PROCESS -

DR. ZEESHAN BHATTI

56

Roadmap to Project Management Success

Statement
of Work
Form
Project
Team

Purpose

Work
Breakdown
Structure

Responsibility
Matrix
R

Project Background

Resource
Plan

Budget

Resource
Plan

A
A

Project Deliverables

Gantt

Network

S
R

TIME

Perform
Tasks

PROJE
CT

LEADERSHIP

AR
NED

S
RE

EN

LE

PO
RT

Track
Progress

SO

LES
EOS
CL

COMMUNICATION

O
UT

Evaluate
Success

ME

S
I NG

Conduct
Close-Out
Meeting

Share
Lessons
Learned

BOOK
E
T

ET

PLAN

E
L
IM P

Update
Plan

Resolve
Issues

DR. ZEESHAN BHATTI

Manage
Change

57

ASSIGNING RESOURCES
A schedule is not complete until all the resources necessary to complete
the project have been committed or assigned.

DR. ZEESHAN BHATTI

58

NON-LABOR RESOURCES
Lab time

Facilities
Prototype parts/systems
Equipment
Materials
Roadmap to Project Management Success
Statement
of Work
Form
Project
Team

Purpose

Work
Breakdown
Structure

Responsibility
Matrix
R

Project Background

Gantt

Network

Resource
Plan

Resource
Plan

A
A

Project Deliverables

S
R

Budget

TIME

Track
Progress

P
OR
T

RE

EN

LE
IM P

SO

E
OS
CL

COMMUNICATION

O EARNED
UT

Evaluate
Success

Perform
Tasks

LEADERSHIP

LES

Share
Lessons
Learned

ME

GS

Conduct
Close-Out
Meeting

OK
EB O

IN

PROJE
CT

OT

ET

PLAN

Update
Plan

Resolve
Issues

Manage
Change

DR. ZEESHAN BHATTI

59

Roadmap to Project Management Success

Statement
of Work
Form
Project
Team

Purpose

Work
Breakdown
Structure

Responsibility
Matrix
R

Project Background

Resource
Plan

Gantt

Network

Budget

A
A

Project Deliverables

Budget

TIME

Perform
Tasks

PROJE
CT

LEADERSHIP

AR
NED

S
RE

EN

LE

PO
RT

Track
Progress

TIME

SO

LES
EOS
CL

COMMUNICATION

O
UT

Evaluate
Success

ME

S
I NG

Conduct
Close-Out
Meeting

Share
Lessons
Learned

BOOK
E
T

ET

PLAN

E
L
IM P

Update
Plan

Resolve
Issues

DR. ZEESHAN BHATTI

Manage
Change

60

DR. ZEESHAN BHATTI

61

COST BUDGETING
Cost Budgeting involves allocating overall cost
estimates to individual work items in order to
establish a cost baseline for measuring project
performance. Using cost estimates, the WBS, the
project schedule, and cost estimating tools, the
project team develops a time-phased budget.
This budget will be used to measure and monitor
cost performance on the project.
Source: PMI
DR. ZEESHAN BHATTI

62

ESTIMATING GUIDELINES FOR TIMES,

COSTS, AND RESOURCES
1. Have people familiar with the tasks make the estimate.

2. Use several people to make estimates.

3. Base estimates on normal conditions, efficient methods, and a
normal level of resources.

4. Use consistent time units in estimating task times.

5. Treat each task as independent, dont aggregate.
6. Dont make allowances for contingencies.

7. Adding a risk assessment helps avoid surprises

to stakeholders.
DR. ZEESHAN BHATTI

TOP-DOWN VERSUS BOTTOM-UP ESTIMATING

Top-Down Estimates
Are usually are derived from someone who uses experience and/or information to
determine the project duration and total cost.
Are made by top managers who have little knowledge of the processes used to
complete the project.

Bottom-Up Approach
Can serve as a check on cost elements in the WBS
by rolling up the work packages and associated cost accounts to major deliverables
at the work package level.

DR. ZEESHAN BHATTI

TOP-DOWN VERSUS BOTTOM-UP ESTIMATING

Conditions for Preferring Top-Down or Bottom-up Time and
Cost Estimates
Condition
Strategic decision making

Macro Estimates

Micro Estimates

Cost and time important

High uncertainty

Internal, small project

Fixed-price contract

Customer wants details

Unstable scope

DR. ZEESHAN BHATTI

ESTIMATING PROJECTS: PREFERRED

APPROACH
Make
rough top-down estimates.
Develop the WBS/OBS.
Make bottom-up estimates.
Develop schedules and budgets.
Reconcile differences between top-down
and bottom-up estimates

DR. ZEESHAN BHATTI

TOP-DOWN APPROACHES FOR ESTIMATING

PROJECT TIMES AND COSTS
Consensus methods
Ratio methods

Apportion method
Function point methods for software and system
projects

Learning curves

Project Estimate
Times
Costs

DR. ZEESHAN BHATTI

APPORTION METHOD OF ALLOCATING PROJECT COSTS USING THE

WORK BREAKDOWN STRUCTURE

DR. ZEESHAN BHATTI

WBS FIGURE

DR. ZEESHAN BHATTI

Roadmap to Project Management Success

Statement
of Work
Form
Project
Team

Purpose

Work
Breakdown
Structure

Responsibility
Matrix
R

Project Background

Gantt

Network

Resource
Plan

Budget

A
A

Project Deliverables

S
R

TIME

Perform
Tasks

PROJE
CT

LEADERSHIP

AR
NED

S
RE

EN

LE

PO
RT

Track
Progress

SO

LES
EOS
CL

COMMUNICATION

O
UT

Evaluate
Success

ME

S
I NG

Conduct
Close-Out
Meeting

Share
Lessons
Learned

BOOK
E
T

ET

PLAN

E
L
IM P

Update
Plan

Resolve
Issues

DR. ZEESHAN BHATTI

Manage
Change

70

Roadmap to Project Management Success

Statement
of Work
Form
Project
Team

Purpose

Work
Breakdown
Structure

Responsibility
Matrix
R

Project Background

Gantt

Network

Resource
Plan

Budget

A
A

Project Deliverables

S
R

TIME

Perform
Tasks

PROJE
CT

LEADERSHIP

AR
NED

S
RE

EN

LE

PO
RT

Track
Progress

SO

LES
EOS
CL

COMMUNICATION

O
UT

Evaluate
Success

ME

S
I NG

Conduct
Close-Out
Meeting

Share
Lessons
Learned

BOOK
E
T

ET

PLAN

E
L
IM P

Update
Plan

Resolve
Issues

DR. ZEESHAN BHATTI

Manage
Change

71

REFERRED NOTES

REFERRED BOOK

A Short Course in Project

Management, by Nayda G.
Santiago

DR. ZEESHAN BHATTI

72

THANKYOU

Q&A
For Course Slides and Handouts

Blog:

http://zeeshanacademy.blogspot.com/
Facebook:

https://www.facebook.com/drzeeshanacademy

DR. ZEESHAN BHATTI

73