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www.eng.it
Maria Maddalena Ruggini, PMP
CC ERP Roma
Work Plan Management (M4)
Project Management and SAP
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www.eng.it
Work Plan Management
1. Introduction
2. Define and sequence activities
3. Scheduling representation and optimization4. Resource Allocation
5. Cost Planning
6. The sins of project planning
7. Conclusions
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Introduction
3 M4_Work Plan Management www.eng.it
Some other vital questions for the PM:
Who is going to do it?
Whereare we doing it?
Whenare we going to get it done? And,
How much will it cost?
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Introduction
4
Project Time Management
process includes the process
required to manage the timely
completion of the project.
The purpose of the Project
Scheduledeliverable is to define
the work schedule to be followed,
the resourcesand associated
timecommitments required forthe project and the phases of the
project. The work breakdown
structure (WBS) serves as the
foundationfor the schedule, the
deliverables to be produced and
tasks to be performed, as part ofthe project.
Defineactivities
Define schedule activities for thedeliverable
CreateSchedulenetworkdiagram
Define dependencies
Estimateactivity
resources
Estimate effort and resource category
Define activities duration
Developschedule
Optimize the schedule
Manage contingency
Establish costand schedule
baseline
Obtain customer and sponsor sing-offfor project schedule and cost baseline
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Introduction
5
The project budget (managed through the work plan)outlines all
costs associated with the project, including labor, hardware, software,
contracting fees, and facilities. At a minimum, the work planshould
include:
Deliverables and tasks for the current phase
Estimated effort (work) and duration
Task dependencies (such as predecessors and successors)
Scheduled start and finish dates for each task, based on
dependencies
Task constraints (such as must-start-on date and must-finish-on
date)
Resources assigned to each task High-level schedule for subsequent phases
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Define and sequence activities
Project schedule network diagram
6
A schedule network diagramvisually depicts of how all the tasks in
your schedule string together. While the WBS shows you how many
tasks you have to accomplish, the schedule network diagram shows theorder those tasks need to happen.
Every activity and milestone (except the first and the last) should be
connected to at least one predecessorand at least one successor.
Logical relationships should be designed to create a realistic project
schedule. It may be necessary to use leadand lag time betweenactivities to support a realistic and achievable project schedule.
Sequencing can be performed by using project management software
or by using manual or automated techniques.
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Define and sequence activities
Project schedule network diagram
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The relations between scheduled activities should refer only to logical
constraints and never to constraints related to resources availability.
The dependencies (internal or external) must be clearly identified as:
Mandatory, a dependency that can never be broken i.e. I cannot
start the project if I dont have a contract signed. I cant start building
the base of a building until the foundation are ready.
Not Mandatory (nice to have), dependencies that can be brokentaking some risks i.e. I dont start the realization if the blueprint is not
signed off.
But, like any other subject related to project management the golden
rule is always the same: KIS
Keep It Simple!
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Define and sequence activities
Tasks, Milestones and Phases
9
The definition of tasks, milestones and phases in project planning can
be expressed simply as follows:
A taskis an activity that contributes towards a
deliverable. When defining a task, it starts with a
verb/noun.
A milestoneis a point in time at the completion of a deliverable.
It begins with a noun/verb. It has 0 length. Milestones are expressed
in the past tense (ex. Blueprint signed-off). Milestones do not haveassociated resources but can have costs.
A phaseis a collection of activities grouped together in a logical
order. It consists of a number of related work packages, tasks and a
milestone to mark the completion of each phase within the project.
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Define and sequence activities
Baseline
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We call Work Plan the collection of the 3 baselines of the project:
SCOPE (project scope statement, WBS, WBS dictionary)
TIME (Activities, resources, durations and dates)
COST (project budget)
To became a Baseline:
The work plan must be verified(TIME and COST)
and approvedby Engineering Senior Managementin accordance with the internal procedures (the plan is in line
with the budget and the objectives of the project)
The work plan must be formally approved by the Customer(TIME
and SCOPE)
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Define and sequence activities
Baseline
12
The baseline of the project is a frozen version of the
work plan, with all the information needed (wbs
dictionary, basis of estimates, activity description,resources, ).
The baseline must be clearly identified as it will
be the constant reference for the project performance
evaluation (performance measurement b asel ine).
The baseline could change during the project life onlyif the changes are authorized applying the same
procedure as for the initial baseline
costs increase = issue / approval of a new C12
Warning
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Define and sequence activities
Support Tools
13
Many activities of PM can be automated with the use of
appropriate instruments
Ms-Project is one of the most used support tools
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S h d li i d i i i
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Scheduling representation and optimization
Critical path
15
The Critical Path is the succession of connected tasks that will take
the longest to complete. The Critical Path is the longest path to
complete the project. Therefore, to complete the project onschedule it is the critical path and the tasks that are part of it that
must be managed most closely.
Although many projects have only one critical path, some projects may
have more than one critical paths depending on the flow logic used in the
project.
Offers a visual representation of the project activities.
Presents the time to complete the tasks and the overall project.
Tracking of critical activities.
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S h d li t ti d ti i ti
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Scheduling representation and optimization
Critical path
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A and B do not depend on any task and can then start ASAP (as-
soon-as-possible) There are dependencies "A finish-to-start C" and "B finish-to-start C
A and C are on the critical path (duration of the project 14 days)
d= total slack (o total float) of B = elig ib i l ity wind ow o f B
= Late Start di B Early Start di B =
= Late Finish di B Early Finish di B
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S h d li t ti d ti i ti
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Scheduling representation and optimization
Schedule compression
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Fast Tracking and Crashingare important project schedule compression
techniques that help the project manager to shorten
the duration of the project. These techniques areused to compress the schedule when no change in
project scope is required:
Your client wants to finish the project early;
You may need to finish the project early;
While planning, you estimated the duration of all activities optimistically,and now in reality things are little different;
The project is already delayed, and to bring it back on schedule, you
may need to use the schedule compression techniques.
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S h d li t ti d ti i ti
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Scheduling representation and optimization
Fast Tracking
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In Schedule Fast-Tracking, you review the critical
path and find out which activities can be
performed parallel or partially parallel to each
other.
The benefit of fast tracking in schedule compression is that it does
not cost you any extra money; however, it comes with some
amount of increase in risks because you are performing many
activities in parallel which were originally planned in other ways.
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Scheduling representation and optimization
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Scheduling representation and optimization
Crashing
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In schedule crashing, you will review the
critical path and find out which activities canbe completed by adding extra resources
Crashing comes with some amount of increase in costs and
not all activities can be reduced adding extra resources.
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Scheduling representation and optimization
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Scheduling representation and optimization
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A task can be positioned in different mode, the three positioning criteria
most used are :
ASAP(As Soon As Possible):
the task is positioned at the beginning of the eligibility
window;
ALAP(As Late As Possible): the task is positioned at the end of the
eligibility window; Fixed: the task is positioned at a specific point on the time axis.
Microsoft-Project use these criteria as parameters for the automatic
processing of a scheduling.
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Scheduling representation and optimization
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Scheduling representation and optimization
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The three task types used in Project are fixed units, fixed work, and fixed
duration. Project uses fixed units by default.
Each of the task types affects scheduling when
you edit one of the three elements as follows.
In a If you revise unitsIf you revise
durationIf you revise work
Fixed units taskDuration is
recalculated.
Work is
recalculated.
Duration is
recalculated.
Fixed work taskDuration is
recalculated.
Units are
recalculated.
Duration is
recalculated.
Fixed duration task Work isrecalculated. Work isrecalculated. Units arerecalculated.
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Scheduling representation and optimization
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Scheduling representation and optimization
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Fixed Work: The effort is the data that does not
change with changes in other dimensions
(resource allocation, duration). Useful to build
the first version of the plan; useful to determine
the duration of the project when the same is not an
external constraint;
Fixed Duration: The duration is the data that does not change with
changes in other dimensions (assignment of resources, effort). Useful
for determining the effort of cross-cutting activities that must be present
for the entire duration of the project (e.g.: Project Management). Useful
in the management phase of the plan during the project as long as you
keep under control the effort.
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Resources allocation
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Resources allocation
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We need to find a compromise between continuity and productivity (orefficiency):
continuity makes it possible to reduce the costs of insertion / learning of
new resources, but can generate periods of under-allocation of
resources and thus inefficiency.
you can (and should) give up the continuity where the inefficiency
introduced is unacceptable.
The objective of allocation of Human Resources is to maximize the
utilization in order to have CONTINUOUS and PRODUCTIVE
allocation with fewer resources
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Resources allocation
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Resources allocation
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The use of a resource in the project can be described using two distinct
parameters:
Maximum percentage of availability under the
project. A value greater than 0% and less or equal 100%
indicates a volume (maximum) of occupation;
A value greater than 100% indicates an availability
greater than that of a physical resource (if you exclude extra time), and then
is used to indicate the availability of more than one unit, of standard
resources (skill); Percentage of allocation within a specific activity (given by the
ratio work / duration)
Beware of over-allocated resources: the work assigned to them will
be carried out only partially
some activity end date will not be met
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Resources allocation
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Resources allocation
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The "Resource leveling" is a process
(automated in Ms-Project) that replace activities
on the time axis trying to eliminate
over-allocations.
Often the automatic methods are inconclusive
(or lead to an unacceptable lengthening of the time). It is often
needful the manual and thoughtful intervention.There are basically the following methods for resources leveling:
Changes in assignments (exchange between Resources);
Addition of resources;
Delay of activities (using the free-float)
Division of tasks (XXXX-XXXX-Part 1 and Part 2)
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Exercise
Creation of a work plan (scheduling)Duration : 30 min
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Cost planning
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Cost planning
Inputs
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Cost management plan (section of PM Plan);
Scope statement/offer/contracts (for constraints);
WBS and WBS dictionary: is the structure on which to perform
the aggregation of elementary data to get the budget;
Activity cost estimates and basis of estimates: This is the main
input into this process because it provides detailed cost
information for each scheduled ; Scheduling: to distribute the cost on the time axis;
Resource calendar
Risk register: for contingencies;
Vendor offerings/contracts;
Standard cost rates (internal/external resources).
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Cost planning
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Cost p a g
C12
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It is the budget of payment of a benefit in respect of a contract
with a customer or for a project executed for business purposes
(eg, investments already approved in the budget, significant pre-
sales);
Formalized in order to explain all the expected costs broken
down by type and with reference to the corporate standards
(standard costs, price lists, etc..);
In the case of Budget of a contract to the Customer, formalize the
global revenues (sum of budget of the single project/service in
the frame);
The document also represents the tool of formalization of the
authorization to start work in the absence of agreementaccording to the rules defined by the procedure PGA04_Gesto
Oramento Fornecimento
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Cost planning
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p g
Project budget component
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The cost baseline of the project once approved should never be
changed and become the reference for the calculation of variances.
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Cost planning
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p g
Human resources
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Labour costs of internal resources
Standard cost of the professional * mandays
The standard cost is related to the qualification of the Resource
The standard cost may vary over time, particularly at turn of the year
Cost of the work of External Resources
Daily Rate (standard price list or contract) * mandays
In the case of "turnkey solution, the costs are planned in association with
specific events
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Cost planning
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Other costs
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Travel expenses, hardware costs, software license and/or maintenance,
turnkey supplies.
Other costs that should be considered in the work plan are thosegenerated by movements of internal accounting (via SIAL):
TRANSFER COST
Transfer accounting from an internal order (commessa) or cost center
"X" (issuer) to another internal order "Y" or cost center (receiver)
A negative Transfer Cost is normally used to reverse a wrong TC. TRANSFER PRICE (Eng specific)
Extra-ledger entry used to attribute figurative revenues to an internal
order (issuer) and figurative costs to another internal order or cost
center (receiver)
Negative TP is normally used to reverse a wrong TP
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The sins of project planning
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Not Planning at All
this sin is easily avoided, also because someone demands a plan!
If a project often takes the form of ... a Formula 1
race (setting strategy, monitoring of consumption,
time control, risk prediction, ...), the work plan is the is the
steering wheel of the PM!
Is it conceivable a Pilot driving without a steering wheel? ...
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The sins of project planning
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Variation of the "I do no t plan at al l
One common approach to planning is to create a plan early in the
project, then put it on the shelf and let it gather dust for the remainder ofthe project....
M4_Work Plan Management www.eng.it
"I've changed too many
things, the plan does not
describe the real situationanymore: I can throw it ..
"Too much has
happened, the plan is still
valid, but the project is nolonger able to get in line
with the plan ..."
The sins of project planning
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Any differences between baseline and work plans, which put into question
compliance with the objectives of the project, shall be limited and very
controlled: the PM MUST believe (justifiably) a likely recovery
If the forecast recovery not appear far-fetched, it should be defined /
negotiated and approved a new baseline (and eventually approved a newMod C12).
M4_Work Plan Management www.eng.it
A project can not do without an approved reference plan (baseline)
and an updated Work Plan
the mos t pleasant th ing o f NOT planning
is that fai lure comes as a surp rise withou t
being preceded by a per iod of w orry and
depress ion
The sins of project planning
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Optimism about the availability of resources
Thinking that nobody gets sick, no one goes on
vacation, has no need for training, ...
The project calendar (definition of working days of the
per year) and possibly the calendar for each resource
(Ms-Project manages it!) must be customized
by defining as non-working daysNational Holidays,
Bank Holidays, the vacation period (if any), .
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A single resource can not be engaged for more than 210 to 220 days
per calendar year!
The sins of project planning
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Optimism about future productivity
The estimate to complete is NOT the difference
between estimated (budget) and actual effort.
Avoid to apply the Pareto law: in the last 20% of elapsed
I think to realize 80% of the deliverable!
If you have no rational grounds on which to base the estimate, should be
applied (by relating it to man days instead of costing) the formula:
ETC = (BAC - EV) / CPI (where CPI= EV/ACC)
Estimate to complete = BudgetEarned value / Cost performance index
Or at least this one:ETC = (BAC - EV)
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Conclusions
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A project manager must have under control
the work plan (does not matter the tool he
use)
The work plan consists of:
Scope Baseline
Schedule Baseline Cost Baseline (which does not match,
necessarily, with a C12)
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