Time Management Philosophy

Is concerned primarily with resources, activities, scheduling and schedule management. PM should be in control with the schedule not vice versa The schedule is built from the ground up, derived from the scope baseline and other information, rigorously managed throughout the life of the project.

The processes of the PTM with their primary outputs

Time Management
Define Activities Activity List Activity Attributes Sequence Activities Project Network diagrams Estimate Activity Resources Resource Requirements

Resource Breakdown structure

Estimate Activity Duration Duration Estimates Develop Schedule Project Schedule Schedule Baseline Control Schedule Work Performance Measure

Mapping Process Groups with TM processes

Process Group Initiating Time Management Process (none)

Planning
Executing Monitoring & Controlling Closing

Define Activities, Sequence Activities, Estimate Activity Resources, Estimate Activity Durations, Develop Schedule
(none) Control Schedule (none)

Define Activities
What it is: Scope Baseline Decompose activities (WBS from work packages to work units ) Activity list granular and is decomposed into individual schedule activities Why Scope management focuses on work that is needed to be performed in time management focuses on how and when it is accomplished Activity list hence should be complete and correct When Performed as soon as the scope has been base lined. After the requirements documentation, project scope statement, WBS. Output
Activity list Activity attributes Milestone list

Sequence Activities
What
Arranging the activities in the activity list defined in the define activities process and arranging the activities in order they must be performed Understanding the diagramming relationships

Why
A network logic diagram is a picture in which each activity is drawn in the order it must be performed. It is a preferred method for representing activities and their dependencies, and sequences

Tools
PDM

Dependency determination
Mandatory Discretionary External

Apply leads and lags

Network Example
Youre a project manager. Construct the network. Activity Predecessors A -B A C A D B E B F C G D H E, F

Network Example AON

D B G

Estimate Activity Resources

What
Effort need to perform that activity The number of resources that will be applied to it Resource availability

Why
Understanding the number of resources required to complete an activity and determining how long they will be used for that activity is an important step in project planning

Resource Calendars Resource Breakdown structure

Estimate Activity Durations

What
Duration and level of effort Duration is a function of many factors, including who will be doing the work, when they are available, how many resources will be assigned to this activity and the amount of work contained in the activity

Why
These activity duration estimates will become a primary input into creating the schedule when the overall project timeline has been created

Some Tools
Analogous Estimating also known as top-down estimating, typically where the previous actual time spent on the similar activity is used to estimate another similar activity Parametric Estimating if one team can install 100 feet fence in one day, then it would take 10 teams to install 1000 feet of fence in one day. Linear extrapolation works for activities that are easily scaled, not effective for activities which are not performed before or for those with little or no historical information has been gathered Three-Point Estimates = (Pessimistic + 4 * Realistic + Optimistic) /6 Called PERT estimates, uses three data points for the duration instead of simply one. These are pessimistic, most likely (also know as realistic) and optimistic estimates

Critical Path Method (CPM)

CPM is a network diagramming technique used to predict total project duration. A critical path for a project is the series of activities that determines the earliest time by which the project can be completed. The critical path is the longest path through the network diagram and has the least amount of slack or float. Slack or float is the amount of time an activity can be delayed without delaying a succeeding activity or the project finish date.
11

Figure 6-8. Determining the Critical Path for Project X

12

Using Critical Path Analysis to Make Schedule Tradeoffs

Free slack or free float is the amount of time an activity can be delayed without delaying the early start of any immediately following activities. Total slack or total float is the amount of time an activity can be delayed from its early start without delaying the planned project finish date. A forward pass through the network diagram determines the early start and finish dates. A backward pass determines the late start and finish dates.

13

14

Figure 6-9. Calculating Early and Late Start and Finish Dates

15

Table 6-1. Free and Total Float or Slack for Project X

16

Using the Critical Path to Shorten a Project Schedule

Three main techniques for shortening schedules:
Shortening the duration of critical activities or tasks by adding more resources or changing their scope. Crashing activities by obtaining the greatest amount of schedule compression for the least incremental cost. Fast tracking activities by doing them in parallel or overlapping them.

17

Importance of Updating Critical Path Data

It is important to update project schedule information to meet time goals for a project. The critical path may change as you enter actual start and finish dates. If you know the project completion date will slip, negotiate with the project sponsor.

18

Critical Path Analysis

Provides activity information
Earliest (ES) & latest (LS) start Earliest (EF) & latest (LF) finish Slack (S): Allowable delay Longest path in network Shortest time project can be completed Any delay on activities delays project Activities have 0 slack

Identifies critical path

Critical Path Analysis Example

Event ID Pred. None Description Preliminary Invest Technical Feasibility Documentation Approval Design Develop Deploy Time (Wks)

A B C D E F G

1 6 3 2 3 4 1

A A B D C E,F

Network Solution
B A
1

D
2

E
3

G
1

C
3

F
4

Earliest Start & Finish Steps

Begin at starting event & work forward ES = 0 for starting activities
ES is earliest start

EF = ES + Activity time
EF is earliest finish

ES = Maximum EF of all predecessors for non-starting activities

Activity A Earliest Start Solution

Activity A B C D E F ES 0 EF 1 LS LF Slack

B A
1
6

D
2

E
3

G
1

C
3

F
4

For starting activities, ES = 0.

Earliest Start Solution

Activity A B C D E F G ES 0 1 1 7 9 4 12 EF 1 7 4 9 12 8 13 LS LF Slack

B A
1
6

D
2

E
3

G
1

C
3

F
4

Latest Start & Finish Steps

Begin at ending event & work backward LF = Maximum EF for ending activities
LS = LF - Activity time
LS is latest start LF is latest finish; EF is earliest finish

LF = Minimum LS of all successors for non-ending activities

Earliest Start Solution

Activity A B C D E F G ES 0 1 1 7 9 4 12 EF 1 7 4 9 12 8 13 LS LF Slack

B
A
6 1 C 3

D E
2 3 G F 1 4
13

Latest Finish Solution

Activity ES A B0 B A 61 C 1 1 C D 7 3 E 9 F 4 G 12 EF 1 E 7 3 4 F 9 4 12 8 13 LS 0 1 4 7 9 8 12 LF 1 7 7 9 12 12 13 Slack

D 2

G 1

Compute Slack
Activity A B C D E F G ES 0 1 1 7 9 4 12 EF 1 7 4 9 12 8 13 LS 0 1 5 7 9 8 12 LF 1 7 8 9 12 12 13 Slack 0 0 4 0 0 4 0

Duration Compression
Crashing
Applying more resources to reduce duration. Crashing the schedule usually increases cost.

Fast Tracking
Performing activities in parallel that would normally be done in sequence. Fast tracking activities usually increases project risk, and these activities have a higher probability of rework

Time-Cost Models
1. Identify the critical path 2. Find cost per day to expedite each node on critical path. 3. For cheapest node to expedite, reduce it as much as possible, or until critical path changes. 4. Repeat 1-3 until no feasible savings exist.

Time-Cost Example
ABC is critical path=30 Crash cost Crash per week 500 800 5,000 1,100
A 10

D8

B 10

C 10

A B C D

wks avail 2 3 2 2

Cheapest way to gain 1 Week is to cut A

Time-Cost Example
ABC is critical path=29
A9

D8

B 10

C 10

Crash cost per week wks avail A 500 B 800 C 5,000 D 1,100

Crash
1 3 2 2

Wks Incremental Total Gained Crash $ Crash $ 1 500 500

Cheapest way to gain 1 wk Still is to cut A

Time-Cost Example
ABC is critical path=28
A8

D8

B 10

C 10

Crash cost per week wks avail A 500 B 800 C 5,000 D 1,100

Crash
0 3 2 2

Wks Incremental Total Gained Crash $ Crash $ 1 500 500 2 500 1,000

Cheapest way to gain 1 wk is to cut B

Time-Cost Example
ABC is critical path=27
A8

D8

B9

C 10

Crash cost per week wks avail A 500 B 800 C 5,000 D 1,100

Crash
0 2 2 2

Wks Incremental Total Gained Crash $ Crash $ 1 500 500 2 500 1,000 3 800 1,800 Cheapest way to gain 1 wk Still is to cut B

Time-Cost Example
Critical paths=26 ADC & ABC
A8

D8

B8

C 10

Crash cost per week wks avail A 500 B 800 C 5,000 D 1,100

Crash 0 1 2 2

Wks Incremental Total Gained Crash $ Crash $ 1 500 500 2 500 1,000 3 800 1,800 4 800 2,600 To gain 1 wk, cut B and D, Or cut C Cut B&D = $1,900 Cut C = $5,000 So cut B&D

Time-Cost Example
Critical paths=25 ADC & ABC
A8

D7

B7

C 10

Crash cost per week wks avail A 500 B 800 C 5,000 D 1,100

Crash 0 0 2 1

Wks Incremental Total Gained Crash $ Crash $ 1 500 500 2 500 1,000 3 800 1,800 4 800 2,600 5 1,900 4,500 Cant cut B any more. Only way is to cut C

Time-Cost Example
Critical paths=24 ADC & ABC
A8

D7

B7

C9

Crash cost per week wks avail A 500 B 800 C 5,000 D 1,100

Crash 0 0 1 1

Wks Incremental Total Gained Crash $ Crash $ 1 500 500 2 500 1,000 3 800 1,800 4 800 2,600 5 1,900 4,500 6 5,000 9,500 Only way is to cut C

Time-Cost Example
Critical paths=23 ADC & ABC
A8

D7

B7

C8

Crash cost per week wks avail A 500 B 800 C 5,000 D 1,100

Crash 0 0 0 1

Wks Incremental Total Gained Crash $ Crash $ 1 500 500 2 500 1,000 3 800 1,800 4 800 2,600 5 1,900 4,500 6 5,000 9,500 7 5,000 14,500 No remaining possibilities to reduce project length

Time-Cost Example
Now we know how much it costs us to save any number of days Customer says he will pay $2,000 per day saved. Only reduce 5 days. We get $10,000 from customer, but pay $4,500 in expediting costs Increased profits = $5,500
A8

D7

B7

C8

Wks Incremental Total Gained Crash $ Crash $ 1 500 500 2 500 1,000 3 800 1,800 4 800 2,600 5 1,900 4,500 6 5,000 9,500 7 5,000 14,500 No remaining possibilities to reduce project length

 Another way to expedite a project is known as fast-tracking

Fast-Tracking

It refers to overlapping the design and build phases of a project

Because design is usually completed before construction starts, overlapping the two activities will result in shortening the project duration

Chapter 9-4