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PROJECT MANAGEMENT Planning: time and cost

Anna Ilmer (0622286)

Manuel Leupold (0922303)

Planning: Time and cost 1 Anna Ilmer & Manuel Leupold

Anna Ilmer & Manuel Leupold Planning: Time and cost 2

Roberts, Paul (2007): Guide to project management. Achieving lasting benefit through effective change. London: Profile Books Ltd, p. 111 – 131.

Agenda

1. Overview

2. Estimating Techniques

3. Development of a resource plan

4. Flexibility of resource plans and the consequences


1. Overview: Products and tasks

• Products are results of sequences of tasks

• Product Lifecycle:

Draft

Review

Amend

Approve


Estimate

“An estimate is a probability assessment based on skill and experience of the time and resources required for the delivery of a specified product that has been considered at length during product-based planning.” (Roberts 2007: 112)


2. Estimating techniques

• Without any references to any stored data or prior experience top down & bottom up Delphi technique analogy

• Require estimation data from previous projects work distribution standard project / product


Top down and bottom up

• Top down: Created at the beginning of the project

„takes the whole project and

applies an overall timescale and cost.” (Roberts 2007: 112)

• No possibility for detail planning

• High level nature

• May contain risky assumptions

• Focus on TIME / COST / QUALITY



• Bottom-up: more detailed than Top-down

• Breaks a product into a set of smaller product




Feasibility study report

Need analysis report

Tested ,implememnted

solution Design report

Developed solution

TIME

COST

QUALITY

Stage 1 8 weeks

Stage 2 8 weeks

Stage 3 10 weeks

Stage 4 15 weeks

Stage 5 15 weeks

20.000 $ 25.000 $ 45.000 $ 65.000 $ 5.000 $

Gathered data

Drafted report

Reviewed report

Amended report

Approved report

QUALITY

COST 3.000 $ 8.000 $ 2.000 $ 4.000 $ 2.000 $

1 week 2 weeks 2 weeks 1 week 1 week TIME

Presented report

1.000 $

1 week

The Delphi technique

• Named after the greek oracle, wich was consulted before all major undertakings

• Experts estimate the effort (or budget) for products other experts review the estimation and give an anonymously feedback

the first experts are encouraged to revise t their earlier estimates in the light of these o other views


Analogy

“Comparing the project, or aspects of it, with something similar is one way in which estimates can be developed.” (Roberts 2007: 114)


Workdistribution

• May be used only for similar projects

• Use of experience and reliable data from former projects

• Show the distribution of effort or budget across the standard project lifecycle or across different types of resource


Workdistribution


Project total 100%

Need Analysis 25%

Solution Design

25%

Solution implementati

on 10%

Project initiation

5%

Solution Dev. 35 %

Project total 100%

Sales 35%

Operations 15%

IT 35%

Management 5%

Third parties 10 %

Standard project/product

• Matrix for working out effort for future project

• Based on data from repeatedly carried out projects

• For repeatable work, which varies in size and complexity

• For accurate estimation, size and complexity should be measurable


Standard project/ product

COMPLEXITY SIZE

LOW MEDIUM HIGH

SMALL 1 2 3

MEDIUM 3 5 9

LARGE 5 10 15


3.Development of a resource plan

• Resource management

• Timescale identification

Product flow diagram / PERT diagram

Gantt Chart

• Cost estimate

Resource plan

Resource plan with financial information


Resource management

• Capital

Office Equipment, computer hardware

• Non-human ressources

Travels, advanced education, expenses

• Human resources

Skills, experience, effort, productivity


Human resources - Productivity

• People will not be 100% productive.

• Productivity does not always increase when more people are allocated to a task.

• People have different productivity rates.

• Productivity increases are usually temporary.


Dependable productivity estimates

• Let people estimate their own work.

• Make planning assumptions clear.

• Agree product descriptions.

• Look at metrics from previous work.

• Negotiate penalty/reward clauses.


Timescale identification


Cost estimate


4.Flexibility of resource plans and the

consequences


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