Schedules and Resources

Question 1

Scheduling Steps

Answer 1

Create WBS

Arrange WBS elements into precedence diagram (from lowest level of WBS only) Undertake Critical Path analysis

Convert precendence diagram into Gantt chart (add durations)

Add resource histogram

Create cumulative cost chart

Question 2

Critical Path

Answer 2

Shortest route through precedence diagram (longest duration) with no float
Process:

Forward pass: ES Duration = EF - carry on through from left to right. If there are two choices of ES use the higher number

Then take the LS of the final node and move it down into the LF

Backward pass: LF-duration = LS
If there is a choice use the lower number

Total Float: EF - LF

Free Float = EFn - ESn+1

Question 3

Total vs Free Float

Answer 3

Tasks with (total) float if delayed will affect the next task but not the end date.

Tasks with free and total float can be delayed without any impact on other tasks or the end date.

Question 4

Benefits of Critical Path Analysis

Answer 4

Illustrates which tasks are more time critical

Visualises detail of inter-dependencies, relationships between tasks, impact of delays.

Question 5

Benefits of Gantt

Answer 5

Helps illustrate schedule for communicating progress

Converts relative to absolute timings

Can be colour coded to add information e.g. critical path

Shows milestones

Question 6

Software systems +/-

Answer 6

\+ Quick 
\+ Facilitates scenario testing
\+ Flexible if changes needed
\+ Customisable
\+ Supports multiple users
\+ Facilitates reporting/dashboards etc.
\+ Can interface with other platforms e.g. finance

• Can be a crutch/repalcement for thinking
• Can provide spurious accuracy
• Can be time consuming and overly elaborate
• Can limit flexibility

Question 7

Resource Management themes

Answer 7

Availability of resources - time, place
Awareness of scarce components
Limits and constraints
Costs - profiling and cash flow

Question 8

Types of resource

Answer 8

Reusable e.g. people
Consumable e.g. fuel
Equipment/Technology e.g. boring machine, server space
Materials - converted into the deliverables

Question 9

Resource Histograms

Answer 9

Time along X axis Resource value/quantity along Y axis

Shows at a glance when resources are needed. Facilitates cost planning

Question 10

Resource management techniques (strategic)

Answer 10

Smoothing - using total float to assign resources more slowly without affecting project end date

Levelling - assigning resources as available, will affect end date

Task Splitting - split tasks to make resources available. Can incur de/remobilisation costs.

Question 11

Resource management techniques (tactical)

Answer 11

Reduce scope

Seek efficiency

Remove bottlenecks/delays (with suppliers perhaps)

Spend more - e.g. weekend working

Question 12

Budget baselining - benefits

Answer 12

Baselined budget:

• Records progress against a baseline
• Illustrates funding requirements
• Supports change control
• Links with cost breakdowns to understand spend
• Supports review cycles
• Supports Cost management

Question 13

Finance terminology

Answer 13

Commitment - a future cost which can not be avoided. E.G. rent.

Accrual: Cost incurred but not yet invoiced. Helps to provide a better picture of spend.

Forecast: Prediction of future spend. Useful for review purposes and for org planning.

Cash Flow: Having money available when it is needed.Borrowing can be expensive.

Question 14

Earned Value Definition

Answer 14

“Earned value management (EVM) is a project control process…

It facilitates the integration of project scope, time and cost objectives and the establishment of a baseline plan for performance measurement.”

Helpful to understand project progress against plan, particularly budget.

Question 15

Earned Value Analysis Terminology

Answer 15

ATE actual time expended
EV earned value
PC planned cost
AC actual cost
BAC budget at completion
EAC estimate at completion
Planned completion
Actual Completion
CV cost variance
SV schedule variance
CPI cost performance index
SPI schedule performance index

Question 16

Interpreting Earned Value

Answer 16

If EV is above planned cost, and actual cost is the same or lower than planned, this is good.

If EV is below planned cost, and actual cost is higher, this is really bad.

If EV and AC are below PC then project is slow and possibly overspending.

If EV and AC are above PC then project is going (too) fast.

Question 17

Earned Value techniques detail

Answer 17

The Earned Value is
compared against the Actual Cost (AC) and the Planned Cost (PC) at a given point in
time. This can provide insight into four key questions:
􀂃 How does the useful work done (EV) compare against the Actual Cost (AC)?
􀂃 Has the effort required to achieve this work cost more or less than planned? (CV –
Cost Variance)?
􀂃 How efficiently is the budget, whether money or effort, being managed (CPI – Cost
Performance Index)?
􀂃 How does the useful work done (EV) compare against the Planned Cost (PC) of
work at this point in the project?
􀂃 Is the project ahead or behind the planned schedule at this present point in time?
(SV – Schedule Variance)?
􀂃 How efficiently is the time being managed (SPI – Schedule Performance Index)?