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INFO 420 Chapter 7 1
SW Project ManagementProject Schedule and Budget
INFO 420Dr. Jennifer Booker
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Grand finale
Developing the project schedule and budget is the grand finale of the project planning process – our ultimate goalWe just defined the tasks and estimated their
duration (effort)Now identify the sequence of tasks,
interdependencies, and staffing needs
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Project cost management
The budget is determined from the project schedule, the cost assigned to tasks, and other indirect costs or resources
Project cost management includesCost estimating for tasks and their resourcesCost budgeting for the whole projectCost control – define processes
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Rolling up costs
Since our tasks were organized into phases and deliverables, we can roll up (summarize) costs to any level desiredCost per deliverableCost per phaseCost of the whole project
The sponsor needs to approve these costs
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Developing project schedule
A key sanity check is that each of the estimates for each task is really reasonable according to the experts in that activityGIGO applies here, not just to programming!
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Project schedule tools
Tools to show a project schedule includeGantt chartProject network diagram
Activity On the Node (AON) diagram Critical path analysis PERT charts Precedence diagramming method (PDM)
Critical chain project management (CCPM)
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Gantt chart
The Gantt chart is probably the most widely used project management toolTime is the X axis, from days to years
The current date is readily visible
Tasks are on the Y axis Bars represent WBS tasks Milestones are diamond shapes An inset bar can show actual work progress
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Basic Gantt chart
IDTask Name
Start Finish DurationAug 2009
4 5 6 7 8 9 10 11 12 13 14 15 16 17
1 4d8/7/20098/4/2009Task 1
2 1d8/5/20098/5/2009Task 2
3 1d8/6/20098/6/2009Task 3
4 3d 4h8/12/20098/7/2009Task 4
5 0d8/12/20098/12/2009Task 5
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Project network diagram
Project network diagrams are also based on the WBS, but also show more info on task sequence or dependencies Many also show when tasks must start or stop
in order not to affect project completion dateThis can help decide resource assignments
needed for critical tasks
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Activity On the Node
Activity On the Node (AON) diagrams represent the flow of tasks needed to complete the projectTasks are nodes (boxes)Arrows show the order in which they occur
The duration of tasks isn’t directly visible under AON, only time order
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Activity On the Node
Tasks can be predecessors, successors, or in parallel Predecessor tasks must occur before another
taskSuccessor tasks must occur after another
taskParallel tasks may occur at the same time as
another task
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Critical path analysis
Given an AON, critical path analysis determines which activities are directly connected to achieving the project scheduleThey are the critical path, which can change
Analytically, find the duration of each path through the AON diagram
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Critical path analysis
The path with the longest duration is the critical path (and the project duration) If any tasks on the critical path are delayed,
the overall project completion will be delayedTasks not on the critical path may have a
non-zero amount of slack or float, which is the amount of duration they can slip without affecting the project
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Critical path analysis
A manager might add resources to tasks on the critical path, if that will actually help finish them soonerThis technique can be called expediting or
crashing the project Fast tracking the project is done by
making tasks parallel that weren’t
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PERT charts
PERT is the program evaluation and review technique, developed in the 50’sOften seen with CPM, or critical path method
A PERT chart also uses the AON graphic notation, but uses a different approach for estimation
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Styles of PERT nodes
Early Start Duration Early Finish
Late Start Slack Late Finish
Task Name
Actual Start Actual Finish
Scheduled Finish
Scheduled Start
Task Name
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PERT charts
For each task, estimate the lowest (optimistic), most likely, and highest (pessimistic) durations, then use estimate = (low + high + 4*likely)/6
The critical path analysis can be done based on these estimates
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Precedence diagramming method
The precedence diagramming method (PDM) adds to AON by showing the key sequence relationshipsFinish to start (most common, sequential)Start to startFinish to finishStart to finish
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PDM node relationships
Task HTask G
Start-to-finish
Start-to-start
Task C
Task D
Finish-to-finish
Task E
Task F
Finish-to-start
Task A Task B
From Fig. 7.5
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PDM
PDM can also show lead and lag times for activitiesLead time is an amount of time a task can
start before the end of its predecessorLag time is the amount of time a task must
start after the end of its predecessor Hence lag time = negative lead time
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Critical chain project management
Critical chain project management (CCPM) is a newcomer (Goldratt, 1997)
It assumes that all estimates are inflated We still finish projects late because
We wait until the last minute (student syndrome) Projects fill the time available (Parkinson’s law) Resource contention
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CCPM
CCPM takes that buffer from each task, and puts in in larger blocks where neededHow? Estimate tasks so that you only have
a 50% chance of completing them on timeThen take half of the difference in task time,
and put that into a buffer at the end of the project
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CCPM
Yes, you have to estimate each task twice Once normally, and once for 50% chance
completion CCPM also accounts for resource limits,
by identifying the resources for each task and buffers for each type of resource
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PM software tools
There are several project management software tools for developing and managing schedulesMicrosoft Project is the de facto standardPlanner and OpenWorkBench are open
source tools Ok, so Project doesn’t have much
competition…
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PM software tools
Often projects are planned in detail only a few months in the future, a rolling wave approach
There’s an outline of the rest of the project, particularly for planning long lead time items
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Project budget
The budget is straightforward to develop, once the schedule has been determinedDetermine the type of resource(s) needed for
each task, and how many of them are needed for its duration (0.1, 2.5, whatever)
Find the cost of each resource type ($/hr), and multiply that by how many and the duration = cost per task
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Project budget
Check for overuse of resources – often not recommended to use 155% of a person’s time
To find the cost of each resource*, assess their typical annual salary**, divide by 2000 (hours per work year), and multiply by 2.5 (to account for overhead expenses)
* This is a heuristic. ** You could look for salary surveys.
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Project budget
So if a software engineer averages $60k/year, their hourly rate is about $30/hrActually, a normal work year is 40*52 = 2080
hours, but we’re just getting a rough estimate Multiply by 2.5 to get a labor rate of $75/hr
This is the ‘true cost’ in the text
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Other costs
Labor is the biggest cost on most projects, but other costs should be considered Indirect costs – are admin assistants,
facilities, insurance, etc. paid by the project, or from overhead?
Sunk costs – from previous bad projectsLearning curve – might be covered by
prototypes
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Other costs
Reserves – most projects keep back a 10-15% reserve from the total actual budget, in anticipation of some cost overruns
Project-specific hardware and software – plan for infrastructure costs (servers, network equipment, software) which aren’t part of normal office & facility environment
Travel, e.g. to the customer?
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Resource allocation
Again, make sure that individuals aren’t scheduled for over 100% of their time
Also consider resource leveling Are there times when people are needed,
then not, then needed again?What will those people do in the middle?
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Baseline plan
Once all these issues have been identified and agreed upon, you have the baseline project schedule, which feeds the project plan
All measurements of ‘planned versus actuals’ hinge upon this plan!