Thursday, December 15, 2016

Project Planning

1. Preparing a Project Plan
In this section, you will learn how to put all these together into a workable project plan. You will learn how to apply the estimated work hours or days to the calendar to determine the duration of each activity, considering weekends, holidays, and vacation schedules as well as the availability of people and other resources. You will learn how to reprogram the activities, if needed, to meet required completion dates. You may even need to negotiate a modification of some of the basic project objectives to come up with workable schedules, resource plans, and budget plans. You will also learn how to identify potential risks, assess their possible impact, and prepare a plan for responding to these risks. You will compile all this into an official project plan and get final approvals before beginning project work.

2. PREPARING SCHEDULES
After you have prepared the network diagram and identified the critical path, you are ready to prepare schedules by following two simple steps:

1.      Create the initial schedule using the early start and early finish times. If necessary, you can adjust the schedule later to the late start and late finish times to account for the availability of resources. In other words, if the necessary resources are not available on the early start date, the project manager can determine to begin the activity on the late start date.
2.    Assign a calendar date to the beginning of the first activity and convert the time durations on each activity to a calendar date. Alternatively, you may assign a calendar date to the completion of the project and work backward to the beginning of the project.

If the schedule shows the project will complete before the requested date, keep this extra time (float) at the end of the project to allow recovery options if the schedule slips during the life of the project. The project manager owns the float and should not give it away indiscriminately. The manager uses float to compensate for estimating variability or unforeseen problems. Team members should not be allowed to use float at their discretion. The network diagram in Figure.1 shows the pump station example with calendar dates based on the early start and early finish times.

3. Milestones
To help define and monitor the schedule of a large project, you may wish to define milestones that represent the completion of a major deliverable or group of activities. For a project that includes several functional groups or categories of activities, it may make sense to develop milestones for each. For example, a milestone for engineering on the development of a new product may be the development of a product requirements document. Milestones may be inserted in the project schedule as activities that define the completion of a group of activities. A milestone has no duration, cost, or resource requirements. Milestones can be used to ensure that a project is on schedule and meeting its scope.

4. GANTT Charts
Once the schedule is developed, a bar chart is a helpful way to communicate schedule information since it provides an easy-to-read visual picture of the project activities. It can very quickly convey considerable information. GANTT charts (originally developed by Henry GANTT) are bar charts with time graduations along the horizontal axis and activities listed on separate lines down the vertical axis, making it easy to see the relationship between activities and time.
The horizontal bars show the scheduled time frames for each activity. Connecting lines and arrows show dependencies. Figure.2 shows the example of the pump station as a GANTT chart.





Figure 1.
 
Figure 2.


5. Crashing the Schedule
If the schedule you develop does not allow the project to complete when desired, you might have to take action to decrease the total project duration.  This is known as crashing the schedule.Analyze all the available options and choose those that provide the greatest compression for the lowest cost. Concentrate on the activities on the critical path. (Remember, shortening noncritical activities will not complete the project any sooner.) Focus first on activities that occur early in the project and, second, those with the longest durations.

6. Resources
One way to crash a schedule is to change the way resources are applied to the project. (The allocation of resources is discussed later in this chapter.) The following are some options to consider:

·     Relieve employees of  other responsibilities to allow them to devote more hours each day to the project.
·      Reallocate resources from noncritical activities to provide the extra help you need. After you reassign the resources, check to see if the critical path has shifted to include other activities.
·     Add resources to provide additional staff, overtime, additional equipment, vendor incentives to complete sooner, or the ability to outsource. Make wise choices because adding too many resources can cause problems in communication and interpersonal relations.
·   Reserve overtime as a contingency. Rather than scheduling overtime in the original plan, keep it as a contingency for unforeseen problems. Overtime is not as effective as regular work hours. Studies show that twelve hours’ overtime by a knowledge worker increases actual output only by the equivalent of two hours’ regular work.

Overtime might be useful if a small increment (three to four days) will make a difference in the project, if the staff can see light at the end of the tunnel, and if extra money is an incentive to them.

7. Activities
Another way to crash a schedule is to change the sequence of activities or reevaluate their estimates. The following are some options to consider:

·     Fast-track the project by changing the sequence of activities in the network diagram to allow activities to be done in parallel (at the same time) rather than in sequence (one after another) or to allow some to overlap (for example, starting to write code on a software project before the entire design is complete). Fast-tracking usually increases risk.
·  Reconsider the accuracy of  the estimates for activities on the critical path. However, do not arbitrarily reduce the estimates to fit the time available.

8. Project Objectives
A third way to crash a schedule is to modify the project objectives. The following are some options to consider:
·    Rethink the basic strategy to determine better ways to accomplish the same objectives.
·   Renegotiate the project objectives. Reduce the scope, increase the budget, or increase the time.
·     If  the schedule still won't work, readdress the basic problem or opportunity to verify that it warrants the effort it will take to complete the project.
9. PREPARING RESOURCE PLANS
The best project plan in the world cannot be accomplished without the right people, materials, and equipment at the right place at the right time. This section explains how to assign the right resources when and where they are needed.
Consider the following principles when assigning resources:

·       Schedules are meaningless unless the right resources are available when the activity is scheduled to begin.
·      If you cannot get the right resources at the right time, you may need to re-plan. Do not assign the wrong person to the job just because no one else is available at that time.
·     Assign scarce resources to activities on the critical path first.
·     Obtain firm commitments from team members, functional managers, and senior management. Once commitments are made, the committed hours no longer belong to the function, but to the project.
·   Too few people on a project cannot solve the problems; too many people can create more problems than they solve.
·  Balance critical resources by adjusting schedules where there is float. If the activity was scheduled to begin on the early start date, try adjusting it to the late start date to see if the appropriate resources are available at that time. Meet with functional sections to level the workload as much as possible to keep in-house resources busy and to use preferred outside resources as much as possible.
·   It may be necessary to increase the project duration to get the right re-sources at the right times.
 

10. Assigning People to Activities
Assign the most appropriate people to each activity. A useful tool for determining the availability of resources is a resource histogram Figure.3, which may be prepared for an individual or for a group of people with similar skill sets.
On the resource histogram, block out time needed for the following:
·  Administrative activities (such as time cards, personnel meetings, breaks, personal leave, and sick leave).
·    Operational support (such as training classes, coordination meetings, internal consulting, answering phone calls, travel, research, problem solving, crisis management, and other activities needed to maintain the operation).
·  Project work (the days and hours the person, or other resource such as equipment, is committed to project activities). Schedules often fail because they underestimate the hours required for administrative and operational activities. When this happens, fewer hours than expected can be devoted to project work.

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