Project Phases and Management Tools

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Project Phases and Management Tools

• ACCA Lecture 1g

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Project Phases and Management Tools Network
Analysis

• Network Analysis or Critical Path Analysis
• Network Analysis requires breaking down the
  project into tasks, arranging them into a logical
  sequence and estimating the duration of each.
• This Enables the series of tasks that determines
  the minimum possible duration of the project to
  be found. These are the critical paths
• CPA aims to minimise time scale

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Project Phases and Management Tools Network
Analysis

• Pinpoints on the critical path would delay
  project completion
• Assist in allocating resources
• The events and activates form a diagram
• Drawing the diagram or chart involves the
  following steps
• Estimate the time needed to complete each
  individual activity or task that makes up a part
  of the project.
• Sorting out what activites must be done one after
  each after another, and which can be done at the
  same time, if required.

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Project Phases and Management Tools Network
Analysis

• Representing these in a network diagram
• Estimating the critical path, which is the
  longest sequence of consecutive activities
  through the network
• The duration of the whole project will be fixed
  by the time to complete the largest path through
  the network. This path is called the critical
  path and activities on it are know as critical
  activities.
• Activities on the critical path must be started
  and completed on time.

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Project Phases and Management Tools Network
Analysis

• Network Analysis shows the sequence of tasks and
  how long they are going to take. The diagrams are
  drawn from left to right.

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Project Phases and Management Tools Network
Analysis

• Events (eg 1 and 2) are represented by circles.
  Tasks (eg A) connect events.
• The critical path is represented by drawing an
  extra line or a thicker line between the tasks on
  the path. It is the minimum amount of time that
  the project will take.
• It is the convention to note the earliest start
  date of any task in the top right hand corner or
  the circle.
• We can then work backwards identifying the latest
  date when tasks have to start. These we insert in
  the bottom right quarter of the circle
• The critical path in this diagram is AEG. Note
  the float time of five days for the Activity F.
  Activity F can begin at any time between days 4
  and 9, thus giving the project manager a degree
  of flexibility.

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Project Phases and Management Tools Activity on
Node

• Microsoft Project software package
• Example Activity on Node
• Suppose that a project includes activities, C, D
  and E. Neither activity D nor E can start until
  activity C is completed, but D and E could be
  done simultaneously if required.
• This would be represented as follows.

D
C
E
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Project Phases and Management Tools Activity on
Node

• Note the following
• An activity with a network is represented by a
  rectangular box (each box is a node).
• The flow of activities in the diagram should be
  from left to right.
• The diagram clearly shows that D and E must
  follow C.
• A second possibility is that an activity cannot
  start until two or more activities have been
  completed. If activity H cannot start until
  activities G and F are both complete, then we
  would respresent the situation like this.

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Project Phases and Management Tools Activity on
Node
F
H
G

• In some conventions an extra node is introduced
  at the start and end of a network, we recommend
  that you do not do it.

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Project Phases and Management Tools Activity on
Node

• Example Starts and Ends
• Draw a diagram for the following project. The
  project is finished when both D and E are
  complete.

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Project Phases and Management Tools Activity on
Node
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Project Phases and Management Tools Activity on
Node

• Any network can be analysed into a number of
  different paths or routes. A path is simply a
  sequence of activities which can take you from
  the start to the end of the network. In the
  example above, there are just three routes or
  paths.
• ACD
• BD
• BE
• The time needed (duration) to complete each
  individual activity in a project must be
  estimated.

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Project Phases and Management Tools Activity on
Node
Example The Critical Path
What are the paths through the network? What is
the critical path duration?
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Project Phases and Management Tools Activity on
Node
Solution The Critical Path
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Project Phases and Management Tools Activity on
Node

• We could list the paths through the network and
  their overall completion times as follows.

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Project Phases and Management Tools Activity on
Node

• The critical path is the longest, BFH, with a
  duration of 12 weeks. This is the minimum time
  needed to complete the project.
• The critical path is indicated by a thick or
  double line.
• Listing Paths easy enough for small networks,
  long and tedious task for bigger and more complex
  networks.
• Conventionally it has been recognised as useful
  to calculate the earliest and latest times for
  activities to start and finish.

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Project Phases and Management Tools Activity on
Node

• Project management software packages offer a much
  larger variety of techniques than can easily be
  done by hand. Microsoft Project allows each
  activity to be assigned to any one of a variety
  of types start as late as possible, finish no
  earlier than, finish no later than etc..
• In real life, activity times can be shortened or
  the may be constrained.

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Project Phases and Management Tools Activity on
Node

• Example Earliest and Latest Start Times
• These sections record the following things.
• The name for example Task A.
• An ID number
• The Duration
• The Earliest Start Time
• The Latest Start Time

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Project Phases and Management Tools Activity on
Node

• The earliest start times, always start with
  activities that have no predecessors.
• The work along each path from left to right
  through the diagram calculating the earliest time
  that the next activity can start.
• To calculate an activities earliest time, simply
  look at the box for the preceding activity and
  add the bottom left figure to the top right
  figure.
• If two or more activities precede an activity
  take the highest figure.

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Project Phases and Management Tools Activity on
Node

• The latest start times, are the latest times at
  which each activity can start if the project as a
  whole is to be completed in the earliest possible
  time, in other words in 12 weeks in our example.
• Work backwards from right to left through the
  diagram calculating the latest time at which the
  activity can start, if it is to be completed at
  the latest finishing time. For example the latest
  start time for activity H is 12-3 week9 and for
  activity E is 12-5 week7.
• Activity F might cause difficulties as two
  activities, H and I, lead back to it. We take the
  lower figure.

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Project Phases and Management Tools Activity on
Node
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Project Phases and Management Tools Activity on
Node

• The latest start times, are the latest times at
  which each activity can start if the project as a
  whole is to be completed in the earliest possible
  time, in other words in 12 weeks in our example.
• Work backwards from right to left through the
  diagram calculating the latest time at which the
  activity can start, if it is to be completed at
  the latest finishing time. For example the latest
  start time for activity H is 12-3 week9 and for
  activity E is 12-5 week7.
• Activity F might cause difficulties as two
  activities, H and I, lead back to it. We take the
  lower figure.

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Project Phases and Management Tools Activity on
Node

• Critical activities are those activities which
  must be started on time, otherwise the total
  project time will be increase. It follows that
  each event on the critical path for the above
  network is therefore BFH.
• Criticisms of critical path/network analysis
• It is not always possible to devise an effective
  WBS for a project
• It assumes a sequential relationship between
  activities
• There are problems in estimation
• Does not appear to develop plans for
  contingencies, other than crashing time.
• CPA assumes a trade-off between time and cost.
  This may not be the case where a substantial
  portion of the cost is indirect overheads.

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Project Phases and Management Tools Activity on
Node

• Example Gantt Charts and Resources
• This example is provided as an illustration of
  the use of Gantt chats to manage resources
  efficiently.
• A company is about to undertake a project about
  wihcih the following data is available.

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Project Phases and Management Tools Activity on
Node

• There is a multi-skilled workforce of nine
  workers available, each capable of working on any
  activities.
• Draw the network to establish the duration of the
  project and the critical path. Then draw a Gantt
  Chart, using the critical path as a basis,
  assuming that jobs start at the earliest possible
  time.

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Project Phases and Management Tools Activity on
Node
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Project Phases and Management Tools Activity on
Node

• It can be seen that if all activates start at
  their earliest times, as many as 15 workers will
  be required on any one day (days 6-7) whereas on
  other days there would be idle capacity (days
  8-12).
• The problem can be reduced, or removed, by using
  up spare time on non-critical activities. Suppose
  we deferred the start of activities D and F until
  the latest possible days. These would be days 8
  and 9, leaving four days to complete the
  activities by the end of day 12.

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Project Phases and Management Tools Activity on
Node

• The Gantt chart would be redrawn as follows

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Project Phases and Management Tools PERT

• PERT (Project evaluation and review technique) is
  a technique for allowing for uncertainty in
  determining project duration. Each task is
  assigned a best, worst and most probable
  completion time estimate, These estimates are
  used to determine the average completion time.
  The average times are used to establish the
  critical path and the standard deviation of
  completion times for the entire project.
• PERT is a modified form of network analysis
  designed to account for uncertainty, For each
  activity in the project, optimistic, most likely
  and pessimistic estimates of times are made.
  These estimates are converted into a mean time
  and also a standard deviation.

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Project Phases and Management Tools PERT

• Estimate the critical path using expected (mean)
  activity times.
• Estimate the standard deviation of the total
  project time.
• Exam focus
• PERT has not been mentioned in the syllabus, so
  we have not included a worked example. Just be
  aware that it exists and that it is designed to
  build in an allowance for time uncertainity.

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Project Phases and Management Tools Resource
Histogram

• Resource Histogram
• A useful planning tool that shows the amount and
  timing of the requirement for a resource (or
  range of resources) is a resource histogram.
• A Resource Histogram shows a view of project data
  in which resource requirements, usage, and
  availability are shown against a time scale.

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Project Phases and Management Tools Resource
Histogram
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Project Phases and Management Tools Resource
Histogram

• Some organisations add another bar (or a separate
  line) showing resource availability.

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Project Phases and Management Tools Resource
Histogram

• Floating time is built into allow for unforeseen
  circumstances
• Total Float on a job is the time available
  (earliest start date to latest finish date) less
  time needed for the job.
• Free Float is the delay possible in an activity
  on the assumption that all preceding jobs as
  early as possible and all subsequent jobs also
  start at the earliest time.
• Independent Float is the delay possible if all
  preceding jobs have finished as late as possible,
  and all succeeding jobs have started as early as
  possible.

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Project Phases and Management Tools Project
Management Software

• Microsoft Project, Micro Planner X-Pert.
• Software might be used for a number of purposes
• Planning
• Estimating
• Monitoring
• Reporting
• Identifying the main steps, breaking these down
  further into specific tasks.

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Project Phases and Management Tools Project
Management Software

• A typical project management package requires
  four inputs.
• The length of time required for each activity of
  the project.
• The logical relationship between each activity.
• The resources available.
• When the resources are available.

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Project Phases and Management Tools Project
Management Software
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Project Phases and Management Tools Resource
Histogram

• Two disadvantages of project management software
  are
• Some packages are difficult to use.
• Some project managers become to interested in
  producing perfect plans that they spend to much
  time producing documents and not enough time
  managing the project.

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Project Phases and Management Tools
Documentation and Reports

• The name allocated to documents will vary across
  different organisations. What is constant is the
  need for clear and relevant documentation that
  helps monitor and control the project.
• Not a substitute for one-on-one communication.
• When outlining possible content of documents some
  duplication of items occurs.
• It is likely that the Project Initiation Document
  will evolve until it is ultimately incorporated
  into the Project Management Plan, sometimes
  referred to as the Project Quality Plan.

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Project Phases and Management Tools
Documentation and Reports

• The Project Plan
• The project manager should also develop a Project
  Plan.
• The Project Plan is used to guide both project
  execution and project control. It outlines how
  the project will be planned, monitored and
  implemented.
• The project plan should include
• Project objectives and how they will be achieved
  and verified.
• How any changes to these procedures are to be
  controlled.
• The management and technical procedures and
  standards to be used.
• Details of the quality budget.
• The budget and time-scale.
• Safety, health and environmental policies.
• Inherent risks and how they will be managed.

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Project Phases and Management Tools
Documentation and Reports

• The project plan evolves over time. A high level
  plan for the detailed plan for the current and
  following stage.
• At each subsequent lstage a detailed plan is
  produced.
• The Project Quality Plan outlines the quality
  strategy to be followed and links this to any
  formal quality management approach the
  organisation has chosen to follow.
• Distinction between a project management plan and
  a quality plan is becoming increasingly blurred.
• Key elements of a quality plan include
• The formal stages of the project
• Standards to be used throughout the project
• Controls that aim to ensure quality
• Checks to ensure quality

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Project Phases and Management Tools
Documentation and Reports

• Case Example
• Project Name
• Project Manager
• Purpose/Business Need
• Product Description and Deliverables
• Assumptions, Constraints and Risks
• Resources
• Financial
• Explanation of standards program
• Personnel/Volunteers
• Mandatory
• As Possible
• Approach

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Project Phases and Management Tools
Documentation and Reports

• Case Example cont.
• Communication and Reporting
• Monthly Status Report
• Monthly Resources Reports
• Financial Resources
• Human Resources
• Milestone and Critical Reports
• Acceptance
• Change Management
• Plan Acceptance
• By PMI Standards Program Team
• By Project Manager

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Project Phases and Management Tools
Documentation and Reports

• Example Extract from a call centre software
  implementation Project Plan
• Introduction
• Project roles
• Communication plan
• Training plan
• Change management plan
• Quality management
• Project documentation
• Financial management
• Programme management

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Project Phases and Management Tools
Documentation and Reports

• Progress Report
• A Progress Report shows the current status of the
  project, usually in relation to planned status.
• Frequency and contents of progress reports will
  vary depending
• The report is a control tool
• One for planned time, one for actual
• Additional content will depend on the format
  adopted. Some organisations include only raw
  facts in the report, as a basis for discussion.
• Other organisations (particularly those involved
  in long, complex projects) produce more
  comprehensive progress reports, with more
  explanation and comment.
• A milestone is a significant event in the
  project, usually completion of a major
  deliverable.

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Project Phases and Management Tools
Documentation and Reports

• Another way of monitoring progress, milestone
  slip chart.
• The milestone slip chart compares planned and
  actual progress towards milestones. Planned
  progress is shown on the X-axis and actual
  progress on the Y-axis. Where actual progress is
  slower than planned progress slippage has
  occurred.

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Project Phases and Management Tools
Documentation and Reports
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