Project

Management
using MS Project

What is a 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
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.

What is a project?
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.

Common project terms

Deliverables: Tangible things that the project
produces
Milestones: Dates by which major activities are
performed.
Tasks: Also called Actions. Activities undertaken during
the project
Risks: Potential problems that may arise
Issues: Risks that have happened
Gantt Chart: A specific type of chart showing time and

Project Managements 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 Managements 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.
Tasks
Resources
Time

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 delivery
Within budget delivery
High 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 Constraints
Project 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

project
Each task is broken into smaller tasks
that can be managed and estimated
Define 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.

Work-Breakdown Structure (WBS)

Project Scheduling

Activity Duration Estimates

The 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 Calculations
A 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 Times

Earliest 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 Times

Latest 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 time
Slack 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 Activity
An 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 Path
The 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 Analysis

Longest 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 Chart
a simple bar chart that depicts project tasks against a calendar

Program Evaluation and Review Technique (PERT)

is a graphical network model that depicts a projects tasks and the
relationships between those tasks (Dependencies and Critical paths
are found in PERT charts)

Microsoft Project
Most widely used project management software
http://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

Project Breakdown
Sample Collection
Contact supplier (at Tech Farm)
Prepare collection materials
Sample container
Preservative (e.g. Sodium
Citrate)
Collect sample
Perform preliminary quality control
Transport sample

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).

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 requirements
o With respect to cost
o With respect to what is measured
Leave specifics toward the end

Planning for Unknowns

Identify risky tasks
o Have not been done before
o Rely on new equipment
o 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 Product

Threat Schedule Late Delivery
Threat 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 dont try
to manage too many risks
Be vigilant and proactive

Project
Monitoring
And
Control

Project Monitoring
Typical 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 Control
Typical 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.

Basic Principles of Cost Management

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).

Cost Estimating
Project managers must take cost estimates
seriously if they want to complete projects
within budget constraints.
Its 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 Plan

Cost 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 Techniques

Basic 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

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 Control
Project 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 Terms

Planned 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 Performance
Rate 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 Management

Many 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.
2.
3.
4.
5.

Put all your projects in one database.

Prioritize the projects in your database.
Divide your projects into two or three budgets based on type of investment.
Automate the repository.
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