Project Management
Lecture March 21, 2013
1
Overview • Repetition - Project Planning I
• Project planning II - Scheduling
• Summary
2
Model of Project Control content / deliveries start and end date team members budget
Project planning
Target values
Monitoring
adaptation
discrepancies Real values
Real values
Project execution
Control Activities scope change capacity problems inter personal problems …
disturbance
3
Dependencies in Project Planning
Project task Structuring the task
Quality
Structuring the process
Resources
Capacities Dates
Team profit Cost
Information
Benefit
Source: Litke, H.-D.: Projektmanagement. Hanser 1995
4
Identification of Work Packages in a WBS Project WBS
System A
System B
Sub system AA
Work packages
System C
System D
…
sub system CB
Work Package AA1
Work Package CB1
Work Package AA2
Work Package CB2
Work Package AA3
Work Package D1
Work Package D2 Source: Litke, H.-D.: Projektmanagement. Hanser 1995
5
Example of a Task/Work Package Sequence Project Start AA1
D1
AA2
D2
CB1
F1-3
G1-5
I1-3
End
6
J1-4
Source: Litke, H.-D.: Projektmanagement. Hanser 1995
Example: work packages in a network WP A 2 WP A 1
Start
WP A 3 WP B 1 WP B 2
7
End
Overview • Repetition - Project Planning I
• Project planning II - Scheduling - Cost estimation
• Summary
8
Scheduling Techniques
9
From the Structure to Scheduling of a Project
Work breakdown structure
Work package
Schedule (e.g. network) B Create list of requirements
C Project schedule
E Phasenplan „Projektierung“ erstellen
D Conduct Feasibility study
1
F Project report „study“ G Design system concept
5
10
2
6
11
3
7
12
15
4
8
13
16
9
14
A Project organization
H Determine functions
I Phasenplan „conceptt“
J Determine development process
Project report „Projektierung“
Work Flow 10
Scheduling Techniques • Schedule lists / task lists
• Milestone charts • Gantt Chart • Network techniques - Activity-on-arrow, activity-on-node (AOA/AON) - „Program Evaluation and Review Technique“ (PERT) and „Graphical Evaluation and Review Technique“ (GERT) (probabilistic methods)
Choose the appropriate scheduling technique in respect to the complexity of the project
11
Schedule Lists
12
Schedule (Deadline List) • The schedule is a simple list of all the activities with the estimated duration, starting and finishing date of each activity. • The schedule can be provided with the the starting and finishing dates, which were actually reached.
• This way of scheduling is easy and at little expense. • BUT: this tool is only suited for clearly arranged projects, where the tasks are not linked very much.
Source: Litke, H.-D.: Projektmanagement. Hanser 1995
13
Example: Deadline List Week 1
Responsible Report
Work packages
Start
End
A study product technology A environmental analysis A ..... S team meeting short presentations
25.4.07
25.5.07
mar
25.4.07
25.5.07
gyg
2
14
Pros and Cons of the Scheduling Technique + no special requirements needed + simple + fast to generate - Not suitable for bigger projects - Not possible to state interdependencies - Hard to keep track of
Source: Litke, H.-D.: Projektmanagement. Hanser 1995
15
Gantt Charts
16
Gantt Chart • The Gantt Chart is a graphical description /complementation of the schedule. • Easy to read since the time axis is included (can get quite large). • Interdependencies are either posted only limited or not posted at all. • Possibility of a particular high information density of the bars (e.g. note of the work status, alignment of resources,...) with the use of project planning software (e.g. MS Project).
17
How to Create a Gantt Chart? • Choice of the planning object and the respective depth of planning • List of the tasks to plan (out of the WBS) • Estimation of the duration - intuitively, with experience or analytical methods
• Interconnection of the tasks (as far as possible) • Determination of milestones
18
Example: Gantt-Chart
19
Pros and Cons of Gantt Charts + + + + +
Common and self-explanatory Very clear Fast to create Suitable for small and medium sized projects Shows parallel activities
- Great effort of changes might occur - Planning periods greater than 1 week to increase clarity
Source: Litke, H.-D.: Projektmanagement. Hanser 1995
20
Networks
21
Network Planning Techniques • “ The network planning techniques consist of methods to plan and control projects. The network is a graphical way to post work flows, which show the logical and chronological interdependencies of the tasks.“ (Litke) • The network is the most convenient way to describe the linkage between the different activities of a project. • Possibility to design plan in different ways • Depending on the way of the network the duration of the project can be estimated with deterministic (AOA/AON) or stochastic (PERT/GERT) methods.
22
Elements of Networks • There are different network techniques, which differ in statements and notations • In order to show a project in a network the following is required: - Functional elements (Activity, Event, Arrangement respectively Network) - Formal elements (Nodes, Arrows)
• To allocate the functional elements to the formal ones there are 3 network techniques: - Activity-on-Node (AON) - Activity-on-Arrow (AOA) - Event-on-Node
23
Application of Activity-on-Node • AON are used where projects with work packages in parallel transaction occur (e.g projects in research, strategic planning and implementation,...) • Projects which are strictly linear (waterfall projects) AOA are used (e.g. Sequence in the production of parts)
24
Activity-on-Node Activity C
Activity A Project start
Activity E
Project end
Activity B Activity D
Project start and end are usually marked as an activity/milestone with duration „zero“ in the network.
25
Description of an Activity (Information in the Node)
earliest starting date
estimated duration
Connection to preceding activity
latest start
Activity ID No And description
Total float
26
earliest finishing date
Connection to following activity
latest finishing date
Task List Task
Duration in days
Activity 1
1
Activity 2
5
Activity 3
2
1
Activity 4
1
2
Activity 5
4
2;3
Activity 6
2
4
27
Predecessor
Determine Critical Path 1. step: forward calculation earliest starting date
0
1
1
Activity 1 2 0
0
2
3
estimated duration
1
2
3
Activity 3 3
2
earliest finishing date
5
4
9
Activity 5 5
5
0
9
0
9
Project start 0
0
0
9
project end
0
9 0
5
5
Activity 2 0
0
5
latest start
5
1
6
Activity 4 6
1
6
2
8
Activity 6 7
Total float
7
1
9
latest finishing date
2. step: backward calculation 28
0
9
Determine Critical Path 1. step: forward calculation earliest starting date
0
1
1
Activity 1 2 0
0
2
3
estimated duration
1
2
3
Activity 3 3
2
earliest finishing date
5
4
9
Activity 5 5
5
0
9
0
9
Project start 0
0
0
9
project end
0
9 0
5
5
Activity 2 0
0
5
latest start
5
1
6
Activity 4 6
1
6
2
8
Activity 6 7
Total float
7
1
9
latest finishing date
2. step: backward calculation 29
0
9
Example of a Activity-on-Node with Critical Path
30
Pros and Cons of an AON + Easy to construct.
+ A node contains all information on an activity + A change in the network is easy: if a change in the logistics occurs, only the arrows must be rearranged.
+ The numbers of an activity can be explicitly related to an activity in the den WBS. + Multiple relationship can be shown (e.g. overlaps).
- Activities can sometimes not be well distinguished anymore. A network can only partly be combined with the timeline.
- Deterministic method Source: adopted from Litke1995
31
Program Evaluation and Review Technique (PERT) • PERT is an extension to CPM, which allow for variability in duration of an activity. • PERT is a method which allows to calculate the probability to finish a project on time, based on our own activities. • The same information as for for CPM is used, but instead of the duration we need: - An optimistic estimation of the duration (a) - A realistic estimation of the duration (m) - A pessimistic estimation of the duration (b) Beta Distribution for 2 to 12 Day Activity
Variance
b -a = 6
6 2
30
Probability Density
Expected duration =
a + 4m + b
20
10
0 0
5
10 Days
32
15
Pros and Cons of the Network Techniques + Shows interdependencies in time and content + Possibility to align employees and costs to different tasks
+ Different possibilities for evaluation + Can be supported by EDV
- Great effort to change data when used manually - Need of training course
Source: Litke, H.-D.: Projektmanagement. Hanser 1995
33
Information Demand for the Different Methods
Method
Information demand
Deadline list
• List of work packages • Starting date and/or finishing of the • work packages
Gantt Chart
• list of work packages • Duration of each work package • Chronological position of the work packages
Network
• list of work packages • Duration of each work package • Interdependences between work packages concerning technology and resources Source: Gareis, R., Projektmanagement, Manz 1991
34
Example in MS-Project: Deadline List and Bar Chart
35
Example in MS-Project : Critical Path Method
36
Summary • The suited scheduling technique is chosen in respect to the complexity of the project. • The schedule is easy and fast to create, but only suited for small and clear projects. • The Gantt Chart shows graphically the chronological parallels. • With the network techniques logical and chronological interdependencies of tasks can be embraced.
37
