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SW Project Management Project Schedule and Budget


Developing the project schedule and budget is the grand finale of the project ... Projects fill the time available (Parkinson's law) Resource contention. Chapter 7. 22 ... – PowerPoint PPT presentation

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Title: SW Project Management Project Schedule and Budget

SW Project ManagementProject Schedule and Budget
  • INFO 420
  • Glenn Booker

Grand finale
  • Developing the project schedule and budget is the
    grand finale of the project planning process
    our ultimate goal
  • We just defined the tasks and estimated their
    duration (effort)
  • Now identify the sequence of tasks,
    interdependencies, and staffing needs

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 includes
  • Cost estimating for tasks and their resources
  • Cost budgeting for the whole project
  • Cost control define processes

Rolling up costs
  • Since our tasks were organized into phases and
    deliverables, we can roll up (summarize) costs to
    any level desired
  • Cost per deliverable
  • Cost per phase
  • Cost of the whole project
  • The sponsor needs to approve these costs

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 activity
  • GIGO applies here, not just to programming!

Project schedule tools
  • Tools to show a project schedule include
  • Gantt chart
  • Project network diagram
  • Activity On the Node (AON) diagram
  • Critical path analysis
  • PERT charts
  • Precedence diagramming method (PDM)
  • Critical chain project management (CCPM)

Gantt chart
  • The Gantt chart is probably the most widely used
    project management tool
  • Time 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

Basic Gantt chart
Project network diagram
  • Project network diagrams are also based on the
    WBS, but also show more info on task sequence or
  • Many also show when tasks must start or stop in
    order not to affect project completion date
  • This can help decide resource assignments needed
    for critical tasks

Activity On the Node
  • Activity On the Node (AON) diagrams represent the
    flow of tasks needed to complete the project
  • Tasks are nodes (boxes)
  • Arrows show the order in which they occur
  • The duration of tasks isnt directly visible
    under AON, only time order

Activity On the Node
  • Tasks can be predecessors, successors, or in
  • Predecessor tasks must occur before another task
  • Successor tasks must occur after another task
  • Parallel tasks may occur at the same time as
    another task

Critical path analysis
  • Given an AON, critical path analysis determines
    which activities are directly connected to
    achieving the project schedule
  • They are the critical path, which can change
  • Analytically, find the duration of each path
    through the AON diagram

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 delayed
  • Tasks 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

Critical path analysis
  • A manager might add resources to tasks on the
    critical path, if that will actually help finish
    them sooner
  • This technique can be called expediting or
    crashing the project
  • Fast tracking the project is done by making tasks
    parallel that werent

PERT charts
  • PERT is the program evaluation and review
    technique, developed in the 50s
  • Often seen with CPM, or critical path method
  • A PERT chart also uses the AON graphic notation,
    but uses a different approach for estimation

Styles of PERT nodes
PERT charts
  • For each task, estimate the lowest (optimistic),
    most likely, and highest (pessimistic) durations,
    then use
  • estimate (low high 4likely)/6
  • The critical path analysis can be done based on
    these estimates

Precedence diagramming method
  • The precedence diagramming method (PDM) adds to
    AON by showing the key sequence relationships
  • Finish to start (most common, sequential)
  • Start to start
  • Finish to finish
  • Start to finish

PDM node relationships
From Fig. 7.5
  • PDM can also show lead and lag times for
  • Lead time is an amount of time a task can start
    before the end of its predecessor
  • Lag time is the amount of time a task must start
    after the end of its predecessor
  • Hence lag time negative lead time

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 (Parkinsons
  • Resource contention

  • CCPM takes that buffer from each task, and puts
    in in larger blocks where needed
  • How? Estimate tasks so that you only have a 50
    chance of completing them on time
  • Then take half of the difference in task time,
    and put that into a buffer at the end of the

  • 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

PM software tools
  • There are several project management software
    tools for developing and managing schedules
  • Microsoft Project is the de facto standard
  • Planner and OpenWorkBench are open source tools
  • Ok, so Project doesnt have much competition

PM software tools
  • Often projects are planned in detail only a few
    months in the future, a rolling wave approach
  • Theres an outline of the rest of the project,
    particularly for planning long lead time items

Project budget
  • The budget is straightforward to develop, once
    the schedule has been determined
  • Determine 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

Project budget
  • Check for overuse of resources often not
    recommended to use 155 of a persons 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.
Project budget
  • So if a software engineer averages 60k/year,
    their hourly rate is about 30/hr
  • Actually, a normal work year is 4052 2080
    hours, but were 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

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 projects
  • Learning curve might be covered by prototypes

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 arent part of normal office
    facility environment
  • Travel, e.g. to the customer?

Resource allocation
  • Again, make sure that individuals arent
    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?

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!
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