Computer Tools for PM

Computer Tools forProject Management

Barry

ne of the challenges a project manager must face is howto keep track of the many elements of project manage-ment, including tasks, milestones, dependency relation-

ships, schedules, people, costs, deliverables and progress towardinterim and final goals. Until the 1980s, these tasks were oftenperformed by hand with a calculator and a hand-drawn Gantt (orbar) chart or by a computerized project management programrequiring a mainframe or minicomputer system. All of that haschanged. There are now powerful computerized project manage-ment (PM) programs that can be run on personal computers cost-ing less than $1000. The actual PM programs themselves may costless than $100 for limited low-end products that can only handleschedules and graphics, to $500 to several thousand dollar pro-grams that not only provide timely and accurate schedule infor-mation, but also powerful resource and cost tracking capabilities.

We introduce computer tools for project management at thisstage in the book because a large part of the mission of a projectmanagement program is to assist in scheduling and keeping trackof tasks and milestones. So it follows naturally after the previouschapter on the fundamentals of project scheduling. However,many good project management programs do so much more thandeal with scheduling issues alone.

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Copyright 2003 by The Fairmont Press.

38 Project Management and Leadership Skills

HOW Do I KNOW WHAT PROGRAM TO BUY?

Like any issue related to a software purchase, the most relevantquestion is "What do I need and what do I want it to do?" Buyinga powerful program costing several thousand dollars that canhandle a $100,000,000 construction project may be just what isneeded if your project is that complex. On the other hand, if yourproject is in the $500,000-$10,000,000 range, a project managementprogram costing around $500 might be more appropriate. Forlower project budgets, a spreadsheet program with simple graph-ics may be your best tool. The key thing to remember is to findand use a program that fits your project, not one that is either soelementary you waste time and money performing a number ofproject control tasks outside the program, or so complicated thatyou spend more time figuring out how to use the program thanletting it help you manage the project.

Some of the key issues that separate the low-end, inexpensiveprograms from full-powered project management programs arehow well they perform in the following areas:

* Initial setupCreating the project plan* Tracking progress* Reports* Ease of use versus power and sophistication

By looking at a program with respect to these areas, you candetermine if the program will meet your project management re-quirements.

The first step in finding the right program, as noted earlier inthis chapter, is to take a long, hard look at just what your require-ments are. The more clearly you have in mind what your needsare, the easier it will be to select the right software. The points thatfollow highlight key features you need to consider. In addition tothese features, you will also want to go to the Internet and look atunbiased reviews of project management programs. In addition,talk to users of the programs you are considering to obtain first-hand, unbiased input about the programs you are considering.


Computer Tools for Project Management 39

INITIAL SETUP -

CREATING THE PROJECT PLAN

Typically, a project manager starts with an endpoint inmind a design is completed, a building is ready for occupancya plant is built, etc. There is a budget, of course, but in planninga project, PMs tend to think initially in terms of a schedule of tasksand milestones. The project management programs you want toconsider are ones that make planning the project relatively easy, soyou actually use it, and powerful enough that it acts as a valuabletool to help you bring the project in on time and within budget.

Activities and Scheduling

The way you enter the project plan into the program and theease of changing the plan will have a direct effect on how muchuse you get out of the program. When entering the project plan,you must define all the project activities. Most of the programshave you build your plan by listing the project activities down theleft side of a Gantt or bar chart. You then fill in a form for eachactivity to identify its duration, the required resources and anyactivities that precede it.

A few programs let you create your project as a network first,actually drawing the boxes for each activity and the connectinglines that show their sequence. You may prefer one method of creat-ing a project plan over another, but what is important is the easewith which you can create the plan and make changes to it. Someprograms make it difficult to add or delete activities once the planis created. As any experienced project manager knows, projectsrarely go exactly as planned. So the first consideration is to makesure the program makes it easy to create the plan and change it. If itfails this test, you will be less likely to use it and thus take advan-tage of the benefits project management software has to offer.

CapaMz'fyA second important feature to check for is how well the program



can represent the relationships among the activities and mile-stones that make up the project. When you enter the activities youalso specify their sequence and precedence; that is, how the activi-ties or milestones depend on each other and which must be donebefore others can begin.

As a minimum, the program must be able to contain all theproject activities, and calculate and show the project's critical path.The critical path is the sequence of activities and milestones whichmust be completed on time if the project is to be completed onschedule. Another way of saying the same thing is any delay ofany task or milestone on the critical path will delay the project.

Beyond showing the critical path, a program can be judgedby how well it depicts the precedent relationships among the ac-tivities. Some programs only allow a finish-to-start relationshipamong activities, which means a subsequent activity can start onlyafter a previous activity is finished.

Finish-to-start is a common relationship among activities, butyou may also frequently have activities that depend on each other,but overlap to some extent. With these activities, the finish-to-startrelationship does not accurately apply. So if you have programthat allows only for finish-to-start relationships, you must decideeither not to show the relationship as it should be or to artificiallybreak down the activity into subactivities so they fit into the fin-ish-to-start mode. This means you are having to adjust your workpattern to meet the program's needs rather than the other wayaround.

The ability to handle full precedence relationships is a keydifference between programs. Determining the number and typeof precedence relationships a program is capable of should be animportant test of any software you consider. After all, you wantthe software to accommodate your project management needs, notthe other way around.

onMany of the less expensive programs have a maximum num-

ber of activities that can be entered into the program. This maxi-



mum may be well below your needs. If your activities appear tocome close to the maximum allowed by a program you are consid-ering, you may want to look at a different program, one that willhave the capacity to allow you to enter all of your planned activitiesinto the program with room for additional activities, if needed.

WBS CapHMz'fyEqually important for some managers is the ability to iden-

tify activities in a work breakdown structure (WBS) format. AWBS as it applies to project management programs is the capabil-ity of assigning ID codes to each task in the project, from the high-est level main tasks all the way down to the lowest level subtasks.An example of a partial work breakdown structure for a designproject is shown in Figure 4-1. Note: Only the electrical and me-chanical subtasks are shown for illustrative purposes, In an actualproject, all relevant disciplines would be shown and in sufficientdetail to allow the PM to grasp the details of the project.

Figure 4-1. Example Partial Work Breakdown Structure

ABC Hospital Addition

ArchitecturalABC.01

Source: SureTrak Project Manager



A WBS allows the project manager to report and summarizeproject data at different levels of detail. For instance, a PM couldask the software program to provide all costs to date for the me-chanical engineering discipline or architectural discipline andcompare to budget numbers.

After defining the project activities and determining theirrelationships, you will want to schedule their start and finishdates and identify any other scheduling constraints individualactivities may have. A distinguishing feature of some better pro-grams is that you can assign specific start to finish dates to indi-vidual activities.

Another important issue is that some programs require thatyou first specify a project start date before the program will sched-ule the project. But, of course, you may have a project for whichall you know is the deadline, the required finish date. Fortunately,some programs let you schedule the project by entering the finishdate first. The program will then calculate backwards from thefinish date to obtain the appropriate calendar dates for eachproject activity.

How the schedule is displayed can also be important. Forexample, can the schedule be presented in various units, such asmonths, days and hours? And if you have a very long project, canthe schedule be summarized so the entire project can be graphi-cally represented on a single page? (While this may useful attimes, the scale may be such that the print is too small to readcomfortably.)

Resource AllocationAfter breaking the project down into tasks and their relation-

ships, you will need to identify available resources and allocatethem to the project tasks. Surprisingly, there are several programsthat do not allow for realistic resource identification and alloca-tion, even though the ability to assign resources to a project isessential to effective project management.



Programs that allow for the assignment of resources usuallymake it a two-step process: (1) you first specify all project re-sources and their associated costs; (2) you then allocate them tothe various tasks.

A key thing to look for in a program is the degree of discrimi-nation allowed in identifying the assigning resources. Softwareprograms vary widely with regard to resource management, andit is well worth a close look to see if the program can meet yourspecific needs.

The number and type of resources you can assign to a task isthe first consideration. Some programs let you identify and assignonly one or a few resources per task.

More powerful programs let you assign codes to each re-source so you can further break down each type of resource; forexample, ME1 = level 1 mechanical engineers; ME2 = level 2mechanical engineers; etc. The program can then produce reportsthat are sorted based upon any given resource type or subtype.For example, you could print out a histogram, or resource alloca-tion chart, for all level 1 engineers assigned to Subtask ABC.05.1.

The ability to assign partial resources to an activity is anothervaluable feature of some programs. You may be able to assign apercentage of a resource to a task, which is a common need inprojects. If the program does not allow partial assignment of re-sources to a task, you will have to artificially break down the taskso it matches the resources allocated to it. This may be an accept-able accommodation if the program meets your needs in other,more important ways. Still, if you have to do this, the program isforcing you to meet its requirements instead of meeting your re-quirements.

Many programs let you distinguish between conventionalresources, such as labor and equipment, and expendable re-sources, such as cash. When a program lets you make this distinc-



tion, you can usually allocate the cash as an expendable resourceand then produce cash-How reports.

Resource leveling is the process of smoothing out the use ofresources over time so you can meet whatever constraints youhave on resource availability. Some of the better programs let youspecify limits to resources, and the program will then automati-cally calculate the best use of the resources over time within thegiven limits.

Many times a project or certain activities in a project are re-source-driven; that is, the availability and use of resources are ofoverriding importance. Using a program that does resource level-ing can save a lot of time and effort when you are trying to juggleschedules to optimize the use of resources.

When you define a resource, most programs let you specifyits cost per unit of time. Then, when the resource is assigned toproject tasks, the total costs are calculated and kept track of by theprogram. Usually a program will let you assign only one rate forany given resource. To have multiple rates for a resource youwould need to identify it as a different resource for each rate (e.g.,Engineer 1, Engineer 2 and so on).

Another valuable feature of some programs is the ability toassign a cost to an activity and specify that the cost accrue at thebeginning or end of the activity. Many programs do not give youthis choice when assigning costs, and automatically prorate thecost over the duration of the activity. But sometimes this is not theway costs actually accrue. This may not be a show-stopper relativeto purchasing the program but it is a factor to consider when youare evaluating different PM programs.

TRACKING PROGRESS

Showing actual progress of a project against project plan isone of the things that separates many low-end programs from



their more powerful competitors. Some low-end programs requireyou to change the planned schedule in order to show actualprogress. This leaves no baseline plan against which you can com-pare actual progress.

Far better are those programs that display, usually on a Ganttchart, planned and actual progress. You enter the actual progressor percentage of completion for each activity. And the result, agraphic comparison between actual and planned progress, can bea valuable tool for managing the project. This actual vs. plannedcapability should also carryover to costing if that is important toyou.

REPORTS

Reports of the project plan and project status are some of themost valuable tools a program can provide. A software programcan make updating project reports quick and easy. And to thebenefit of all, it is becoming the norm that programs provide bothtabular and graphical reporting capabilities.

The various programs offer a full range of reporting capabili-ties, but there are certain reports you will want your program toproduce:

Ganff (or &ar) c^Mrf This favorite shows each project activityas a horizontal bar extending along the project timeline. TheGantt chart should also show milestones (key dates) and.preferably, planned activity progress versus actual progress.It is helpful if the program allows for depiction of precedencerelationships among the tasks.

NefworA: DMgrafM (PERT c/Mrf) the network diagram shouldshow all project activities and their precedence relationships.

Acfz'uz'ft/ sc^ g^ M/g This report may go by various names, butit is a tabular listing of all project activities with their earliest


46 Project Management and Leadership SkiHs

and latest start and finish dates. It also shows how muchfloat, or slack time, each activity has.

rcporfs At a minimum; you will want a tabular list-ing of all resources and their assignment to activities. Re-source histograms, vertical bar charts showing assignment ofresources over time are also valuable.

* Cosf rgporfs A detailed breakdown of planned and ex-pended project costs is a minimum requirement. More pow-erful programs will calculate and graph out earned-value asthe project progresses. An earned value graph comparesproject completion with costs expended. These reports willalso show the estimated cost to complete the project.Examples of computer-generated reports from Primavera

Systems, Inc.'s S;;reT?Y!^ Projfcf Manager program are presented atthe end of this chapter. These are but a few of the many reportsthat it and others in its class can generate.

EAST OF USE VERSUSPOWER AND SOPHISTICATION

In software there often is a tradeoff between the program'sease of use and its power and sophistication. Many project man-agement programs are extremely easy to learn and use, but are toosimplistic to manage real-life projects. They might be appropriatefor creating the schedule for a relatively small project (say, lessthan 50 activities), but are inadequate for handling the size, bud-get and resources of a larger project, which could comprise tasksand milestones numbering in the hundreds or more.

On the other hand, some of the more powerful programsmay be so difficult to learn and to use that they are often not usedat all.

Fortunately, there are a number of programs that are botheasy to use and very powerful. It just takes some time and re-



search to find the best one for your project management needs.Several programs which offer the project manager a balancedcombination of ease of use and power include Primavera Systems,Inc.'s SMrgTh:^ Project Manager and Pn'map^ ra Projgcf P/ann^ r andMicrosoft Corporation's Mz'crosq/f Pro/ecf.

The quality of the program's training may be one of yourmost important considerations. This will be true if the people whowill be using the software are not themselves experienced projectmanagers or familiar with project management techniques. In thatcase, you will want the program to have a good training tutorialand very clear documentation.

IN CONCLUSION

The program features discussed in this chapter provide use-ful criteria for comparing programs and judging their capabilities.The most important thing is to take a hard look at your projectmanagement requirements and determine the minimum capabili-ties a program must have if it is to meet your needs.

Think about what you want the program to help you withmost. Do your projects tend to be of a certain sort and have specialrequirements? For example, is account management and cost con-trol always a primary consideration? If so, you want a programthat will let you put in enough detailed cost information that youwill have full cost tracking capability.

On the other hand, after a close look at the nature of yourprojects, you may realize they are primarily schedule intensive.For example, if most of your projects involve meeting strict dead-lines (and many engineering and construction projects fall intothis class), you should look first at those programs that provideexcellent schedule tracking and related reports.

The power and capacity of a program might be your drivingconsideration. If you are the master scheduler for a large projectthat is made up of many other projects, you will want to look atthose programs that allow unlimited tasks and speed in process-



ing, keeping in mind as well the hardware requirements.Along this same line, some projects, especially federal gov-

ernment projects, have very specific reporting requirements. Eventhough federal projects amount in dollar volume to a large pieceof the project management pie, only a few project managementprograms actually meet federal reporting requirements specifica-tions. So if your projects have to meet these requirements, youneed to factor this into your software requirements.

Or, again, if less experienced staff will be the primary usersof the program, good training and documentation and ease of usecan be a major consideration.

And finally, you will want to consider the program cost andhow to justify its purchase. The best method for justifying aprogram's cost is to determine what your project managementrequirements are and to judge the value of the program on theextent to which it gives you the tools you need to better manageyour projects. After a close look at your requirements you maydecide that $1,000 for a program is a small price to pay for thepower and sophistication it can deliver. At the same time it wouldbe hard to justify paying a few hundred dollars for a program thatlacks the capability to truly help in managing your projects.

Making the effort to find the right program can yield signifi-cant dividends to the serious project manager. And with so manyprograms now offering full project management capability at apersonal computer price, you won't have to look too far beforeyou find the right one for you.


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Project Management and Leadership Skills for Engineering and Construction ProjectsTable of ContentsChapter 4: Computer Tools for Project ManagementHOW DO I KNOW WHAT PROGRAM TO BUY?INITIAL SETUP - CREATING THE PROJECT PLANActivities and SchedulingEntering the Project PlanFull Precedence/Relationship CapabilityLimits on Number of ActivitiesWBS CapabilitySchedule Display

Resource AllocationAssigning ResourcesAssign Partial ResourcesResource LevelingAssign Costs

TRACKING PROGRESSREPORTSEAST OF USE VERSUS POWER AND SOPHISTICATIONIN CONCLUSION

Computer Tools for PM

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