M4 WorkPlanManagment v.2.0

8/13/2019 M4 WorkPlanManagment v.2.0

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Maria Maddalena Ruggini, PMP

CC ERP Roma

Work Plan Management (M4)

Project Management and SAP


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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

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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

M4_Work Plan Management www.eng.it


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Introduction

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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

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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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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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Tasks, Milestones and Phases

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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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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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Baseline

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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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Support Tools

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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

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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.


S h d li t ti d ti i ti


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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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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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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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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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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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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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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.


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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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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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


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).


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


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


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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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....


"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 ..."



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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).


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



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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), .


A single resource can not be engaged for more than 210 to 220 days

per calendar year!



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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)


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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M4 WorkPlanManagment v.2.0