Final Flashcards
Basis of Scheduling
- Predictive (Waterfall) Scheduling: Activities, broken down from Work Packages, are noted in their necessary order on a planned schedule, with changes needing a change request once the schedule is approved and baselined.
- Adaptive (Agile) Scheduling: The Product Owner owns the Product Backlog and Product Roadmap, showing at least the order of when features are to be delivered.
- Kanban or Pull Systems: The team “pulls” each piece of work when they are ready, respecting “Work in Progress” (WIP) limits to keep multi-tasking to a minimum.
- Siegel’s advice: Plan around tasks, their durations, and their interdependencies (versus fixed dates) then derive the anticipated completion date.
Activity Network Scheduling Method
- Define the tasks.
a. This refines our work breakdown structure.
b. Rolling Wave Planning = near term work packages defined in more detail compared to long term work packages to be more defined at a later date. Plan must be revisited to define long term work packages.
c. Siegel’s advice: the lowest WBS level should consist of work that can be completed in no longer than one or two months. - Identify the interdependencies between the tasks.
a. This assists with sequencing the tasks and finding the critical path.
b. Precedence Diagramming Method = graphical representation of project work flow where arrows link work packages together - Estimate the duration of each task, in a statistical fashion.
a. Analogous (top-down): Uses historical information (an analogy) to estimate (e.g., time, budget, difficulty). Faster but lower accuracy.
b. Parametric: Using a parameter to estimate, like $55 a meter or $100 an hour. Medium effort, medium accuracy.
c. Bottom-up: Adding together the smallest pieces to get an overall estimate (i.e. cost of each work package combined for the project budget). High effort, high accuracy.
d. 3-point: An average of three estimates: Optimistic, Nominal (Most Likely) and Pessimistic. Triangular Distribution (O + M + P) / 3. PERT (Program Evaluation and Review) or Beta Distribution (O + (4 x M) + P) / 6. Siegel’s advice: Weight both deviation and probability toward the pessimistic.
e. Wideband Delphi (“Planning poker” in Agile): the people doing the work estimate the effort (or cost). The high and low estimates discuss their reasons, then re-estimate until a consensus is reached. Useful in complex situations - Only the initial task in each chain is fixed to an actual calendar date; all other dates are derived from the task interdependencies and the statistically expressed task durations.
Precedence Diagramming Method
- Finish to Start
- The next activity cannot start until the previous activity has finished
- Start to Start
- The next activity cannot start until the previous activity has started
- Finish to Finish
- The next activity cannot finish until the previous activity has finished
- Start to Finish
- The next activity cannot finish until the previous activity has started
Dependency Types
- Mandatory: one work package MUST be completed prior to start of next work package.
- E.g., purchasing paint prior to painting walls.
- Discretionary: work packages can occur in tandem.
- E.g., painting walls and laying carpet at the same time.
- External: work package linked to non-project activities.
- E.g., supplier stocking paint prior to your purchase.
- Internal: work package linked to project activities.
- E.g., who is responsible for purchasing the paint and who is responsible for painting the walls.
Leads and Lags
- Lead time is the amount of time you can bring an item forward. You are leading it forward.
you are here <–LeadTime– Item is here
- Lag time is the amount of time you can delay an item. It is lagging behind
you are here Item is here –LagTime–>
Critical Path Method
- Critical Path = sequence of tasks where the project can be
completed in the shortest possible time.- Divide project into tasks
- Estimate each task
- Create network diagram
- Create initial Gantt chart
- Perform resource leveling
- Compress schedule (if necessary)
- Critical Chain = resources required to execute project tasks and their availability.
Resource Leveling
- When shared resources are over-allocated, or a resource has been assigned to two or more activities during the same period.
Resource Smoothing
- Adjusts the activities within their free and total Float (the Critical Path is not changed when doing this).
top left: Early start
top middle: Duration
top right: Early Finish
middle: phase
bottom left: Late Start
bottom middle: Float/Slack
bottom right: Late Finish
Early Finish = Early Start + Duration – 1
Late Start = Late Finish – Duration + 1
Float/Slack = Late Start – Early Start
Schedule Compression Techniques
- Schedule Fast Tracking is when activities on the Critical Path are done in parallel (overlapped) to shorten the project duration. Adds cost and may add additional risk.
- Schedule crashing is approving overtime, adding resources, or paying to expedite delivery of activities on the critical path. May add risk due to project rework.
Reserve Analysis
- AKA Slack Time, Contingency Reserve, Time Reserves, Buffer.
- A percentage or a set determined time allowance.
- Added because of Risk Factors.
Critical Path: Build a new concrete driveway ***
- Step 1: Divide project into tasks
Task# | TaskName | Predecessors | Responsible
1 | Excavation Team | | Team
2 | Build Forms | 1 | Team
3 | Place Rebar | 1 | Subcontractor
4 | Pour concrete | 2, 3 | Subcontractor
5 | Set and cure concrete | 4 | Team
6 | Strip forms | 5 | Team
- Step 2: Estimate tasks
Task# | Task Name | Resource | Duration | Cost/Use | Subtotal | Total
1 | Excavation | Mini-excavator | 4 days | $450/day | $1,800 |
1 | Excavation - Team | Labor | 12 hours | $20/hour | $240 | $2,040
- Step 3: Create Network Diagram
- Add durations for each activity in center top square.
- Perform forward pass enter early start and early finish dates.
- Early Finish = Early Start + Duration – 1
- Perform backward pass enter late start and late finish dates.
- Late Start = Late Finish – Duration + 1
- Enter Float or Slack (= Late Start – Early Start)
- Shortest project duration is early finish of the final task (here, 17 days)
(duration)
Excavation (4) -> Build Forms(2)
Excavation (4) -> Place Rebar (6)
Build Forms(2) -> Pour Concrete(1)
Place Rebar (6) -> Pour Concrete(1)
Pour Concrete(1) -> Set and Cure (5)
Set and Cure (5) -> Strip Forms(1)
- Step 4: Create Initial Gantt Chart
- Step 5: Perform Resource Leveling
- Step 6: Schedule Compression (if necessary)
Cost Management Plan
- Defines how the project costs will be estimated, budgeted, managed, monitored, and controlled.
- Value Engineering = finding a more economic way of doing work to achieve the project goal / scope.
Inputs | Tools and Techniques | Outputs
Project Charter | Expert Judgement | Cost Management Plan
Project Management Plan | Data Analysis | -
Enterprise Environmental Factors | Meetings | -
Organizational Process Assets | - | -
Cost Definitions
Table
- Cost Type:
- Fixed
- Variable
- Direct
- Indirect
- Sunk
- Defintion:
- Costs that stay the same throughout the life of the project (e.g., physical assets).
- Costs that vary on a project (e.g., hourly labor).
- Expenses billed directly to the project (e.g., materials).
- Costs shared and allocated among several projects (e.g., electricity)
- Costs invested into the project.
Cost Estimation
- Management Reserve = money set aside to deal with problems (unexpected activities related to in-scope work) as they arise on the project.
- Contingency Reserve = money set aside to deal with planned risks, should they occur.
- Definitive Estimates: -5% to +10%
- Budget Estimates: -10% to +25%
- Rough Order of Magnitude Estimates: -25% to +75%
Image
Work Package (WP)
Contingency Reserve (CR)
Cost Estimate (CE)
Management Reserve (MR)
Cost Baseline (CB)
Project Budget (PB)
MR -> PB CR -> CB -> PB WP1 -> WP + CE -> CB -> PB WP2 -> WP + CE -> CB -> PB WP3 -> WP + CE -> CB -> PB
Earned Value Analysis
- Budget at Completion (BAC): total planned budget.
- Planned Value (PV) = BAC x (Planned % Completed) - shows the work that should have been completed by that time.
- Earned Value (EV) = BAC x (Actual % Completed) - what we have actually completed (earned) at a given point in time.
- Actual Cost (AC): what was actually spent at that point in time.
- Estimate at Completion (EAC) = AC + (BAC – EV) = BAC/CPI
- To Complete Performance Index (TCPI) = (BAC – EV) / (BAC – AV)
Variance Analysis
- Variance at Completion (VAC) = BAC – EAC
- Cost Variance (CV) = EV – AC
- ”+” is good, “–” is bad.
- Cost Performance Index (CPI) = EV / AC
- > 1 is good (under budget), <1 is bad (over budget).
- Schedule Variance (SV) = EV – PV
- ”+” is good, “–” is bad.
- Schedule Performance Index (SPI) = EV / PV
- > 1 is good (ahead of schedule), <1 is bad (behind schedule).
S Curve
Image Review Week8 Slides
Decision Making Tools
- Benefit-cost ratio (BCR): amount of money a project will make vs. how much it will cost. Large number, good investment.
- Net present value (NPV): actual value at a given time of the project minus all of the costs associated with it. People calculate this number to see if it’s worth doing a project.
- Opportunity cost: The money you forego because you chose not to do a project.
- Internal rate of return: amount of money the project will return or how much money a project is making the company.
Measurement Process Steps (10)
- Decide what to measure
- What measurements (data) do we need to make a certain decision?
- Determine how accurately we need to measure
- Do we need to know the weight to the nearest pound, or to some other degree of
accuracy?
- Do we need to know the weight to the nearest pound, or to some other degree of
- Determine how to achieve that accuracy of measurement
- What tools and methods have the desired accuracy?
- Determine how much data must be collected
- Do we have to measure an item just once, or 10 times, or 1,000,000 times?
- Determine how, where, and when to collect the data
- Under what conditions do we have to measure this item? What tools do we need to do so? What are the operational states of our system when it is valid to collect these data?
- Understand the range of validity of the data
- Are the measurements valid only at certain times? Under certain conditions?
- Validate and calibrate the data
- Is our scale accurate? Is our tool accurate How do we know?
- Analyze the data
- What do the data indicate? Are there alternate explanations for what the data appear to indicate?
- Draw conclusions from the data
- Where are we on solid ground? Where are we making judgments? What is the level of uncertainty? What risks could result from drawing the wrong conclusions?
- Document the entire process, so that it could be reconstructed
- Engineering is an iterative process; therefore we need to capture the process, tools, and data that we used to make this measurement for future comparisons.
What to measure?
- Technical performance measures
- Represent our degrees of design freedom
- Operational performance measures
- Represent the goodness of the system interpreted by the customer
- Management measures
- Represent our progress on the project
Key Performance Indicators (KPIs)
- Metrics used to evaluate the effectiveness of your project at achieving the defined objectives.
- Prioritize to focus on tracking essential and actionable metrics.
- Leading indicators – predict future performance, help take early corrective action
- Lagging indicators – reflect past performance, help assess success of completed activities
- Set targets and thresholds.
- Assess progress and readjust.
Types of KPIs (Schedule)
- Indicator
- Cycle time
- On-time completion %
- Time Spent
- # Schedule Adjustments
- FTE days vs. Calendar Days
- Planned Hours vs. Time Spent
- Resource Capacity
- Definition
- Time to complete a task
- Whether or not task is completed by deadline
- Amount of time spend on tasks
- How many times team adjusted completion date
- How much time team is spending on project
- Estimate vs. actual time spent on tasks
- # individuals working on project multiplied by % effort available for project
- Formula
- End time - Start time
- (# on-time tasks / total # of tasks) x 100
- Sum of hours spent by all team members
- Count of schedule adjustments
- FTE days / calendar days
- Planned hours - Actual hours spent
- # resources x available time (%)
Types of KPIs (Cost)
- Indicator
- Budget Variance
- Budget Creation cycle time
- Line items in budget
- # budget iterations
- Planned Value
- Cost Performance Index
- Defintion
- How much actual budget varies from projected budget
- Time needed to formulate an org’s budget
- Line items help managers track expenditures
- # of budget version produced before final approval
- Value of what is left to complete on the project
- Compares budgeted cost of work completed so far to actual amount spent
- Formula
- Actual Budget - Projected budget
- (End date - Start date) of budget creation
- Count of individual expenditure items
- count of budget variations
- total budget x % work remaining
- Earned value / Actual costs
Types of KPIs (Quality)
- Indicator
- Customer Satisfaction
- Stakeholder Satisfaction
- Net Promoter Score
- # Errors
- Customer Complaints
- Employee Churn Rate
- Definition
- Measures if customer is satisfied with project outcomes
- Assess satisfaction of all stakeholders
- How likely customers are to recommend your services
- How often tasks need to be redone
- Complaints received from customer during project
- Team members who leave company during project
- Formula
- Survey Score
- Survey Score or Feedback Score
- % Promoters - % Detractors
- Count of errors or rework
- Count of customer complaints
- (# departing employees / total employees) x 100