PROJECT MANAGEMENT TOOLS Learning Unit 3

Describe and use key project management tools and techniques;

Explain (with the aid of examples from a project), the advantages and limitations of different project management tools and techniques;

Develop a project plan for a simple project using a selected number of project management tools;

Be able to adapt the project plan with updates to the project schedules;

Accelerate a project’s schedule and explain such acceleration;

Create reports using a project management tool;

Interpret information obtained from project management tools;

Demonstrate the application of project management tools and techniques, and provide hard copy examples of key project documents.

Learning Unit Objectives

Schedule Plan: involves outlining the activities, tasks, dependencies and timeframes. Starts with the Work Breakdown Structure (WBS) Scheduled on the Critical Path Method (CPM) and the Gantt chart.

Human Resource Plan: usually involves listing the labour and human resource requirement. The output of the resource plan is the resource histogram.

Procurement Plan: involves identifying all materials and equipment to be sourced from external suppliers. The output of the procurement plan is the procurement schedule.

PROCESS TASKS

Financial Plan: involves identifying all income (derived from milestone payments) and expenses (labour, equipment and materials costs). Expenses must be balanced against income in order to ensure that the project can meet its financial obligations. The output of the financial plan is the cash flow statement.

Risk Plan: involves highlighting potential risks and documenting actions that might be taken to mitigate them. The output of the risk plan is the risk register.

PROCESS TASKS 2

Quality Plan: involves providing quality targets, assurance and control measures. The output of the quality plan will be the quality assurance plan and the quality control plan.

Communications Plan: involves identifying how each of the stakeholders will be kept informed of the progress of the project. Identifies the types of information to be distributed, the methods of distributing information to stakeholders and the frequency of distribution. The communications plan will be extensively dealt with in Learning Unit 5.

PROCESS TASKS 3

• Enables scope of work to be broken down into manageable elements

• Provides work packages with detailed instructions & responsibilities

• Groups similar work together – allows logical flow of tasks

• Backbone of project as allows for all planning and control activities

WORK BREAKDOWN STRUCTURE

GRAPHICAL REPRESENTATION

See 3.2.1 page 76 Module Manual

TEXT METHOD

See 3.22 page 76 Module Manual

WORKBREAKDOWN STRUCTURE

• each activity and sub-activity is numbered in a special way that identifies where it links in with the main project

• highest level is the project description . Highest level is referred to as Level 0 (zero). It is represented by the chosen project number

• The next level down is level 1. This level indicates all the major activities of the project.

• The next level down is level 2. This is the sub-subdivision of all level 1 activities and usually represents the work that needs to be carried out.

• Level 3 is a breakdown of tasks to the most basic level.

NUMBERING SYSTEM & LEVELS

• Product breakdown structure

• Organisational breakdown structure

• Contract breakdown structure

• Location breakdown structure

• System breakdown structure

STRUCTURE SUBDIVISION (P77)

Network diagrams illustrate graphically the

relationships between tasks

Number of different methods:-

•Precedence Diagramming Method

•Activity on Arrow Method

•Activity on Node Method

NETWORK DIAGRAMS AND CPA

•Identify all tasks in a project

•Sequence them

•Present tasks, predecessors and durations in a

table

•Draw a network

Network diagram method

TASK PREDECESSOR DURATION

A - 2

B A 3

C A 2

D B 1

E C 5

F C 4

G E,F 7

H D,G 2

I H 4

Tasks, Predecessors and Durations

Identify tasks with

no predecessor

NO PREDECESSOR THEN MUST BE FIRST TASK

Identify bursts –

tasks sharing a

common

predecessor

Identify merges –

tasks with more

than one

predecessor

Activity on Node

Precedence Diagramming Method

bursts

Activity on Node

Precedence Diagramming Method

merge

1. Identify the Bursts and Merges in the example below

2. Draw a network for the situation using the Precedence Diagramming Method

Individual exercise

TASK PREDECESSOR

A -

B A

C A

D B,C

E D

F E

Network diagram

A

B

C

D E F

MERGE

BURST

Precedence Diagramming Method uses task boxes to represent tasks and connectors

Task box

ES Early Start

FLOAT

LS Late Start

TASK

EF Early Finish

LF Late Finish

DURATION

YOU NEED TO MEMORISE THIS – IT WILL NOT BE GIVEN YOU IN EXAM

TASK PREDECESSOR DURATION

A - 2

B A 3

C A 2

D B 1

E C 5

F C 4

G E,F 7

H D,G 2

I H 4

Tasks, Predecessors and Durations

Draw a network diagram for this example

Double-check the tasks against their predecessors

to make sure it is correct.

An activities duration will run from the start to the finish of the activity.. Time units can be expressed in hours, days, weeks, months, shifts – whatever is appropriate for the project.

For simplicity we will always use days as our time unit.

PUT DURATIONS ONTO YOUR DIAGRAM

duration

Add durations to your network as per the task box convention

durations

ES Early Start

FLOAT

LS Late Start

TASK

EF Early Finish

LF Late Finish

DURATION

Calculate the critical path by adding up the durations on each path

The longest time is the critical path

Mark the critical path in a different colour on your diagram

Critical path

Float is a measure of flexibility or surplus time in

an activity’s schedule. It indicates how many days an

activity can be delayed before if affects the project

completion date

All activities on the critical path have a float of 0

Put this onto your diagram

float

Add floats to your network as per the task box convention

float

ES Early Start

FLOAT

LS Late Start

TASK

EF Early Finish

LF Late Finish

DURATION

SECOND LONGEST PATH Total critical path duration – 2nd longest path duration = 2nd longest path float PUT THIS ONTO YOUR DIAGRAM THIRD LONGEST PATH Total critical path duration – 3rdlongest path duration = 3rd longest path float PUT THIS ONTO YOUR DIAGRAM When a task is part of more than 1 path the smallest number is always selected for the float

Float – non critical path

Early start is the earliest date by which an

activity can start assuming all of the preceding

activities are completed as planned

ES = ES preceding task + duration preceding task

PUT THIS ONTO YOUR DIAGRAM

Early start

Add EARLY STARTS to your network as per the task box convention

EARLY START

ES Early Start

FLOAT

LS Late Start

TASK

EF Early Finish

LF Late Finish

DURATION

Early finish is the earliest date by which

an activity can be completed assuming all of the

preceding activities are completed as planned

EF = ES + Duration -1

PUT THIS ONTO YOUR DIAGRAM

EARLY FINISH

Add EARLY FINISH to your network as per the task box convention

EARLY FINISH

ES Early Start

FLOAT

LS Late Start

TASK

EF Early Finish

LF Late Finish

DURATION

Make sure that the last tasks EF = critical path duration. If not you have made an error

Late start is the latest date an activity can

finish to meet the planned completion date

LS = ES + FLOAT

PUT THIS ON YOUR DIAGRAM

Late start

Add LATE STARTS to your network as per the task box convention

Late start

ES Early Start

FLOAT TASK

EF Early Finish

LF Late Finish

DURATION

LS Late Start

Late finish is the latest date an activity can finish to meet the planned completion date

LF = EF + FLOAT

PUT THIS ON YOUR DIAGRAM

LATE FINISH

Add LATE FINISHES to your network as per the task box convention

Late FINISH

ES Early Start

FLOAT TASK

EF Early Finish

LF Late Finish

DURATION

LS Late Start

Check the late finishes at merges. The merging tasks should have same LF otherwise there is an error

EF = ES + D – 1 LS = ES + F ES = ES PRECEDING TASK + D PRECEDING TASK

LF = EF + F

F = LS –ES OR LF-EF ES 1ST TASK =1 F CRITICAL PATH = 0 F ON MORE THAN 1 PATH SMALLEST SELECTED ES FROM MERGED TASKS SELECT HIGHEST ONE

Summary CPA

ES EF

F D

LS LF

T

P84 & P89 Module Manual

GANTT CHARTS & RESOURCE PLANNING

CLASSWORK INDIVIDUAL EXERCISE

1. Draw the Network

and complete forward & backward passes & float

2. Indicate the critical path

3. Draw the Gantt chart including resources

4. Draw the resource histogram

Activity Preceding Duration Resources per Day

A _ 4 4

B _ 5 1

C A 10 1

D B 10 3

E C,D 10 3

F B 10 6

G F 9 2

H E,G 5 4

I - 15 5

PROCUREMENT PLAN & SCHEDULE • P Plan identifies all items to be purchased from external

suppliers

• P Schedule is the output from this plan

• Very important planning tool

• Provides the detail required to acquire goods and services

• Produces after the network diagram and the schedule Gantt chart

• Determines what quantities and when the resources are required

PROCUREMENT PLAN & SCHEDULE

• JIT delivery

• Late delivery can delay project

• Purchasing at project start not possible – security and cashflow

PROCUREMENT PLAN & SCHEDULE • Make or buy decision

• Procurement list – BOM (Bill of Materials)

• Supplier sourcing – credible suppliers must be identified

• Quotations/tenders – legally binding if accepted

• Adjudicate quotations/tenders – technical evaluation

• Generate the order – signed by delegted official of the company

• Expedite order – follow ups

• Receive goods – delivery note compared to order

• Warehousing – safe, appropriate location

• Payment – check against order and budget prior to payment

Example Procurement Schedule

Activity Description Bill of Material

Quantity Expected Delivery Date

Date Required

A100 Foundations Spades Cement Stone Sand

14 700 bags 10m³ 20m³

6 Mar 7 Mar 7 Mar 7 Mar

7 Mar 8 Mar 8 Mar 8 Mar

A200 Walls Cement Sand Bricks

900 bags 30m³ 12 000

8 Mar 8 Mar 8 Mar

9 Mar 9 Mar 9 Mar

• Applies to projects that have a fixed end date – e.g. soccer world cup stadiums

• Only way to address resource overloads is to increase resources or reduce scope

Time limited resource smoothing

• Applies to projects that have limited resources available, e.g.

• Where space is confined and additional people cannot be accommodated.

• Where there is limited equipment, e.g. machinery, computers etc.

• Where people with specialised skills are scarce.

• Address by extending timeline or reducing scope

Resource limited resource smoothing

• Increase productivity

• Work overtime

• Work shifts

• Job & knock – goal achieved and then home

• Sub-contracting

HOW TO INCREASE RESOURCES

• Re-deploy team members to R&D

• Training

• Maintain equipment

• Hire team members out

HOW TO REDUCE RESOURCES

FINANCIAL PLAN

• Expected flow of money in & out of the project

• Large projects can run into financial difficulty very quickly if budget is not controlled

THE BUDGET

February March April

BFWD

Income

TOTAL

Materials

Labour

Other

TOTAL

Closing Balance

The project has an initial investment of R15 000. The income for February is R25 000; for March R15 000 and April R20 000. Material expenditure for February is R16 000; for March R14 000 and April R8 000. Labour expenditure for February is R12 000; for March R10 000 and April R5 000. Other expenses are: February R2 000; March R2 000 and April R1 000. Compile the cashflow statement.

• Cashflow examples

INDIVIDUAL EXERCISE

• Divide into 3 equal size groups

• Research and prepare a 30 minute lecture on the subject given to you

• Lecture must include notes, visual aids, activities to enhance the subject matter

• All members of the group MUST take an active part

• Present the lecture to your fellow students

GROUP EXERCISE – OVER TO YOU (ICE TASK 3)

Lecture Subjects

• The Quality Plan

• The Risk Plan

• The Communication Plan

Use material from your module manual, INPM210 and other material you obtain from your research

GROUP EXERCISE – OVER TO YOU (ICE TASK 3)

• Project acceleration/compression

• Required when project completion required before completion date

• Two methods of acceleration – crashing and fast tracking

• Both shorten schedule without reducing scope

Accelerate a Projects Schedule

• Cost/schedule trade off • Establish max compression within acceptable

cost increase

• Additional resources allocated to tasks on critical path

• Advantages: Shortens project time and achieves max compression for least additional cost

• Disadvantages: Increase total project cost, additional resources can often add overheads that negate time savings

CRASHING

• Involves running phases concurrently

• Following phase commenced before preceding phase signed off

• Advantages: Shortens project time

• Disadvantages: Involves a high risk if client makes changes to plan

FAST TRACKING