Critical Chain Project Management & Implementation Assignment

PROJECT EVALUATION
AND CONTROL
Chapter 13
Copyright ©2016 Pearson Education, Inc.
CHAPTER 13
LEARNING OBJECTIVES
After completing this chapter, you should be able to:
1.
Understand the nature of the control cycle and four key steps in a
general project control model.
2.
Recognize the strengths and weaknesses of common project
evaluation and control methods.
3.
Understand how Earned Value Management can assist project
tracking and evaluation.
4.
Use Earned Value Management for project portfolio analysis.
5.
Understand behavioral concepts and other human issues in
evaluation and control.
6.
From Appendix 13.1: Understand the advantages of Earned
Schedule methods for determining project schedule variance,
schedule performance index, and estimates to completion.
Copyright ©2016 Pearson Education, Inc.
13-2
PMBOK CORE CONCEPTS
Project Management Body of Knowledge (PMBoK) covered
in this chapter includes:
1. Control Schedule (PMBoK 6.7)
2. Control Costs (PMBoK 7.4)
3. Earned Value System (PMBoK 7.4.2.1)
4. Forecasting (PMBoK 7.4.2.2)
5. Performance Reviews (PMBoK 7.4.2.4)
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CONTROL CYCLES – GENERAL
MODEL
1. Setting a goal.
2. Measuring progress.
3. Comparing actual with planned performance.
4. Taking action.
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THE PROJECT CONTROL CYCLE
(FIGURE 13.2)
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PROJECT S-CURVES
(FIGURE 13.3)
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PROJECT SIERRA’S S-CURVE
SHOWING NEGATIVE VARIANCE
(FIGURE 13.4)
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13-7
MILESTONE ANALYSIS
Milestones are events or stages of the project that represent a
significant accomplishment.
Milestones:
1. Signal completion of important steps
2. Motivate team and suppliers
3. Offer reevaluation points
4. Help coordinate schedules
5. Identify key review gates
6. Signal other team members when their participation
begins
7. Delineate work packages
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GANTT CHART WITH MILESTONES
(FIGURE 13.5)
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13-9
ASSESSING PROJECT BLUE’S STATUS
USING TRACKING GANTT CHART
(FIGURE 13.6)
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TRACKING GANTT WITH PROJECT
ACTIVITY DEVIATION
(FIGURE 13.7)
Copyright ©2016 Pearson Education, Inc.
Project status is updated by
linking task completion to the
schedule baseline.
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EARNED VALUE MANAGEMENT
Earned Value Management (EVM) recognizes that it is
necessary to jointly consider the impact of time, cost, and
project performance on any analysis of current project
status.
Earned Value (EV) directly links all three primary project
success Metrics (cost, schedule, and performance).
Copyright ©2016 Pearson Education, Inc.
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EARNED VALUE TERMS
❖Planned value (PV)
❖Earned value (EV)
❖Actual cost of work performed (AC)
❖Schedule variance (SV) and Schedule performance index (SPI)
❖Cost variance (CV) and Cost performance index (CPI)
❖Budgeted cost at completion (BAC)
❖Estimate at completion (EAC)
Copyright ©2016 Pearson Education, Inc.
13-13
STEPS IN EARNED VALUE
MANAGEMENT
1. Clearly define each activity including its resource needs
and budget.
1. Create usage schedules for activities and resources.
1. Develop a time-phased budget (PV).
1. Total the actual costs of doing each task (AC).
1. Calculate both the budget variance (CV) and schedule
variance (SV).
Copyright ©2016 Pearson Education, Inc.
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PROJECT BASELINE, USING EARNED
VALUE
(FIGURE 13.11)
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EARNED VALUE MILESTONES
(FIGURE 13.12)
Copyright ©2016 Pearson Education, Inc.
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EARNED VALUE EXAMPLE
Schedule Variances
Planned Value (PV) = 103
Earned Value (EV) = 44
Schedule Performance Index = .43 = 44/103 = EV/PV
Estimated Time to Completion = (1/.43)x7=16.3 months
Cost Variances
Cumulative Actual Cost of Work Performed (AC) = 78
Cost Performance Index = .56 = 44/78 = EV/AC
Estimated Cost to Completion = $210,714 = (1/.56)x$118,000
Copyright ©2016 Pearson Education, Inc.
13-17
EARNED VALUE REPORT FOR
PROJECT ATLAS
(FIGURE 13.16)
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13-18
USING EARNED VALUE TO MANAGE A
PORTFOLIO OF PROJECTS
(TABLE 13.9)
Copyright ©2016 Pearson Education, Inc.
13-19
COMPLETION VALUES IN EVM
Accurate and up-to-date information is critical in
the use of EVM.
➢0/100 Rule
➢50/50 Rule
➢Percentage Complete Rule
Copyright ©2016 Pearson Education, Inc.
13-20
HUMAN FACTORS IN
PROJECT EVALUATION & CONTROL
❖Project coordination and relations among stakeholders
❖Adequacy of project structure and control
❖Project uniqueness, importance, and public exposure
❖Success criteria salience and consensus
❖Lack of budgetary pressure
❖Avoidance of initial overoptimism and conceptual difficulties
Copyright ©2016 Pearson Education, Inc.
13-21
CRITICAL SUCCESS FACTORS IN THE
PROJECT IMPLEMENTATION PROFILE
1.
Project mission
2.
Top management support
3.
Project plans & schedules
4.
Client consultation
5.
Personnel
6.
Technical tasks
7.
Client acceptance
8.
Monitoring & feedback
9.
Communication channels
10. Troubleshooting
Copyright ©2016 Pearson Education, Inc.
13-22
SUMMARY
1. Understand the nature of the control cycle and four key steps in a
general project control model.
2. Recognize the strengths and weaknesses of common project
evaluation and control methods.
3. Understand how Earned Value Management can assist project
tracking and evaluation.
4. Use Earned Value Management for project portfolio analysis.
5. Understand behavioral concepts and other human issues in
evaluation and control.
6. Understand the advantages of Earned Schedule methods for
determining project schedule variance, schedule performance
index, and estimates to completion.
Copyright ©2016 Pearson Education, Inc.
13-23
Copyright ©2016 Pearson Education, Inc.
13-24
RESOURCE
MANAGEMENT
Chapter 12
Copyright ©2016 Pearson Education, Inc.
CHAPTER 12
LEARNING OBJECTIVES
After completing this chapter, you should be able to:
1. Recognize the variety of constraints that can affect a
project, making scheduling and planning difficult.
2. Understand how to apply resource-loading techniques
to project schedules to identify potential resource
overallocation situations.
3. Apply resource-leveling procedures to project activities
over the baseline schedule using appropriate
prioritization heuristics.
4. Follow the steps necessary to effectively smooth
resource requirements across the project life cycle.
5. Apply resource management within a multiproject
environment.
Copyright ©2016 Pearson Education, Inc.
12-2
PMBOK CORE CONCEPTS
Project Management Body of Knowledge (PMBoK) covered
in this chapter includes:
1. Estimate Activity Durations (PMBoK 6.4)
2. Plan Human Resource Management (PMBoK 9.1)
Copyright ©2016 Pearson Education, Inc.
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TYPES OF CONSTRAINTS
➢Physical
➢Time
➢Resource
➢Mixed
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ACTIVITY PRECEDENCE EXAMPLE
(TABLE 12.1 AND FIGURE 12.2)
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RESOURCE-LOADING CHART
DEMONSTRATING OVERALLOCATION
(FIGURE 12.3)
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RESOURCE USAGE TABLE
(FIGURE 12.5)
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EXAMPLE OF RESOURCE USAGE
TABLE WITH OVERALLOCATION
(FIGURE 12.6)
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RESOURCE LEVELING
A process that address the complex challenges of
project constraints
Objectives:
 To determine the resource requirements so that
they will be available at the right time
 To allow each activity to be scheduled with the
smoothest possible transition across resource
usage levels
Copyright ©2016 Pearson Education, Inc.
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PRIORITIZATION RULES FOR
LEVELING
1. Smallest amount of slack
2. Smallest duration
3. Lowest ID number (FCFS)
4. Greatest number of successor tasks
5. Requiring the most resources
Copyright ©2016 Pearson Education, Inc.
12-10
GENERAL PROCEDURE FOR
LEVELING
1.
Create a project activity network diagram.
2. Develop resource loading table.
3.
Determine activity late finish dates.
4. Identify resource overallocation.
5.
Level the resource loading table.
Copyright ©2016 Pearson Education, Inc.
12-11
CONSTRUCT A RESOURCELOADING CHART
To construct a time-limited resource loading chart for resource
scheduling, there are six main steps to follow:
1. Create activity network.
2. Produce table for each activity, resource requirements, duration,
early start time, slack, and late finish time.
3. List activities in order of increasing slack.
4. Draw an initial resource-loading chart with each activity scheduled
at its earliest start time.
5. Rearrange activities within their slack to create a profile that is as
level as possible
6. Use judgment to interpret and improve activity leveling.
Copyright ©2016 Pearson Education, Inc.
12-12
SAMPLE PROJECT NETWORK
(FIGURE 12.17)
4 B 5
Res = 2
5 D 9
Res = 7
0 A 4
Res = 6
9 E 11
Res = 3
11 F 12
Res = 6
4 C 7
Res = 2
Copyright ©2016 Pearson Education, Inc.
12-13
CREATING RESOURCE LOADING
CHARTS
Activity
Resource
Duration
ES
Slack
LF
A
6
4
0
0
4
B
2
1
4
0
5
C
2
3
4
4
11
D
7
4
5
0
9
E
3
2
9
0
11
F
6
1
11
0
12
Copyright ©2016 Pearson Education, Inc.
12-14
RESOURCE-LOADING CHART
(FIGURE 12.18)
Copyright ©2016 Pearson Education, Inc.
12-15
MODIFIED RESOURCE-LOADING
CHART WHEN SPLITTING TASK C
(FIGURE 12.19)
Copyright ©2016 Pearson Education, Inc.
12-16
MANAGING RESOURCES IN
MULTIPROJECT ENVIRONMENTS
➢Schedule Slippage
➢Resource Utilization
➢In-Process Inventory
➢Resolving Resource Decisions in Multiproject Environments
➢First In Line
➢Greatest Resource Demand
➢Greatest Resource Utilization
➢Minimum Late Finish Time
➢Mathematical Programming
Copyright ©2016 Pearson Education, Inc.
12-17
SUMMARY
1. Recognize the variety of constraints that can affect a
project, making scheduling and planning difficult.
2. Understand how to apply resource-loading techniques
to project schedules to identify potential resource
overallocation situations.
3. Apply resource-leveling procedures to project activities
over the baseline schedule using appropriate
prioritization heuristics.
4. Follow the steps necessary to effectively smooth
resource requirements across the project life cycle.
5. Apply resource management within a multiproject
environment.
Copyright ©2016 Pearson Education, Inc.
12-18
Copyright ©2016 Pearson Education, Inc.
12-19
ADVANCED TOPICS IN
PLANNING AND
SCHEDULING
Chapter 11
Copyright ©2016 Pearson Education, Inc.
CHAPTER 11
LEARNING OBJECTIVES
After completing this chapter, you should be able to:
1. Understand why Agile Project Management was developed
and its advantages in planning for certain types of projects.
2. Recognize the critical steps in the Agile process as well as it
drawbacks.
3. Understand the key features of the Extreme Programming
(XP) planning process for software projects.
4. Distinguish between critical path and critical chain project
scheduling techniques.
5. Understand how critical chain methodology resolves project
resource conflicts.
6. Apply critical chain project management to project portfolios.
Copyright ©2016 Pearson Education, Inc.
11-2
PMBOK CORE CONCEPTS
Project Management Body of Knowledge (PMBoK) covered
in this chapter includes:
1. Rolling Wave Planning Method Sequence Activities
(PMBoK 6.2.2.2)
2. Sequence Activities (PMBoK 6.3)
3. Estimate Activity Resources (PMBoK 6.4)
4. Estimate Activity Durations (PMBoK 6.5)
Copyright ©2016 Pearson Education, Inc.
11-3
PMBOK CORE CONCEPTS
Project Management Body of Knowledge (PMB0K) covered
in this chapter includes:
5. Develop Schedule (PMBoK 6.6)
6. Develop Schedule (tools and techniques) (PMBoK 6.6.2)
7. Critical Chain Method (PMBoK 6.6.2.3)
8. Resource Optimization (PMBoK 6.6.2.4)
Copyright ©2016 Pearson Education, Inc.
11-4
COMMON REASONS NEW
PROJECTS MISS DELIVERY DATES
Based on Kickstarter projects, the most common reasons that new
projects do not meet their delivery dates include:
1. Manufacturing obstacles
2. Shipping
3. Volume
4. Apple’s “curve ball”
5. Changing scope
6. Certifications
7. Kickstarter’s infrastructure
8. Overseas logistics
Copyright ©2016 Pearson Education, Inc.
11-5
CRITICAL CHAIN PROJECT
MANAGEMENT (CCPM)
 Developed by Dr. Eli Goldratt in mid-1990s
 Alternative scheduling mechanism to speed up project delivery
 Make better use of project resources
 More efficiently allocate and discipline the process of
implementing projects
 Based on theory of constraints (TOC)
 Represents both cultural shift and change in scheduling processes
 Applies technical and behavioral elements of project
management
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11-6
AGILE PROJECT MANAGEMENT
Agile Project Management (Agile PM) reflects a new era in
project planning that places a premium on flexibility and
evolving customer requirements throughout the development
process.
 Planning the work and then working the plan
 Customer needs may evolve and change over course of project
 Importance of evolving customer needs leads to incremental,
iterative planning process
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11-7
WATERFALL MODEL FOR PROJECT
DEVELOPMENT
(FIGURE 11.1)
Copyright ©2016 Pearson Education, Inc.
11-8
WATERFALL MODEL
Waterfall project development process works well when:
 Requirements are very well understood and fixed at the
outset of the project.
 Product definition is stable and not subject to changes.
 Technology is understood.
 Ample resources with required expertise are available
freely.
 The project is of short duration.
Copyright ©2016 Pearson Education, Inc.
11-9
UNIQUE FEATURE OF AGILE PM
 Agile PM, referred to as Scrum, recognizes mistakes of
assuming once initial project conceptualization and planning are
completed, project will be executed to original specifications.
 Example, software projects are prone to constant changes.
 Flexible, iterative system designed for the challenge of
managing projects in midst of change and uncertainty
 “Rolling wave” process of continuous plan-execute-evaluate
cycle
 Emphasis on adaptation, flexibility, and coordinated efforts of
multiple disciplines
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11-10
SCRUM PROCESS FOR PRODUCT
DEVELOPMENT
(FIGURE 11.2)
Copyright ©2016 Pearson Education, Inc.
11-11
KEY TERMS IN AGILE PM
 Sprint – one iteration of the Agile planning and executing cycle.
 Scrum – the development strategy agreed to by all key
members of the project.
 Time-box – the length of any particular sprint, fixed in advance,
during the Scrum meeting.
 User stories – short explanation of the end user that captures
what they do or what they need from the project under
development
 Scrum Master – person on the project team responsible for
moving the project forward between iterations, removing
impediments, or resolving differences of opinions between
major stakeholders.
.
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11-12
KEY TERMS IN AGILE PM
 Sprint backlog – the set of product backlog items selected for
the Sprint, plus a plan for delivering the Sprint Goal.
 Burndown chart – remaining work in the Sprint backlog.
 Product owner – person representing the stakeholders and
serving as the “voice of the customer.”
 Development team – organizational unit responsible for
delivering the product at the end of the iteration (Sprint).
 Product backlog – a prioritized list of everything that might be
needed in completed product and source of requirements for any
changes.
 Work backlog – evolving, prioritized queue of business and
technical functionality that needs to be developed into a system.
Copyright ©2016 Pearson Education, Inc.
11-13
STEPS IN AGILE
1. Sprint Planning
2. Daily Scrums
3. Development Work
4. Sprint Review
5. Sprint Retrospective
Copyright ©2016 Pearson Education, Inc.
11-14
STAGES IN A SPRINT
(FIGURE 11.4)
Copyright ©2016 Pearson Education, Inc.
11-15
PROBLEMS WITH AGILE
1.
Active user involvement and close collaboration of the Scrum team are
critical throughout the development cycle.
2.
Evolving requirements can lead to potential for scope creep.
3.
It is harder to predict at beginning of project what the end product will
actually resemble.
4.
Agile requirements are kept to minimum, which can lead to confusion
about the final outcomes.
5.
Testing is integrated throughout lifecycle, which can add cost to
project.
6.
Frequent delivery of project features puts a burden on product owners.
7.
If it is misapplied to traditional projects, it can be an expensive approach
without delivering benefits.
Copyright ©2016 Pearson Education, Inc.
11-16
EXTREME PROGRAMMING (XP)
 A more aggressive form of Scrum; a software development
methodology intended to improve software quality and
responsiveness to changing customer requirements.
 Two guiding features of XP:
 Refactoring
 Pair programming
 Advantage of XP is whole process is visible and accountable.
 Agile PM and XP have grown out of need to combine the
discipline of project management methodology with the needs
of modern enterprise to respond quickly.
Copyright ©2016 Pearson Education, Inc.
11-17
THEORY OF CONSTRAINTS &
CRITICAL CHAIN PROJECT SCHEDULING
A constraint limits any system’s output.
The Goal – Goldratt
TOC Methodology
1.
Identify the constraint.
2. Exploit the constraint.
3.
Subordinate the system constraint.
4. Elevate the constraint.
5.
Repeat the process.
Copyright ©2016 Pearson Education, Inc.
11-18
FIVE KEY STEPS IN THEORY OF
CONSTRAINTS METHODOLOGY
(FIGURE 11.6)
Copyright ©2016 Pearson Education, Inc.
11-19
CRITICAL CHAIN SOLUTIONS
➢Central Limit Theorem
➢Activity durations estimated at 50% level
➢Buffer reapplied at project level
 Goldratt rule of thumb (50%)
 Newbold formula
➢Feeder buffers for non-critical paths
Copyright ©2016 Pearson Education, Inc.
11-20
REDUCTION IN PROJECT
DURATION AFTER AGGREGATION
(FIGURE 11.7)
Copyright ©2016 Pearson Education, Inc.
11-21
DEVELOPING CRITICAL CHAIN
ACTIVITY NETWORK
 Resource leveling is not required because resources are
leveled within the project in the process of identifying the
critical chain.
 CCPM advocates putting off all noncritical activities as late
as possible, while providing each noncritical path in the
network with its own buffer.
 Noncritical buffers are referred to as feeder buffers.
 Feeding buffer duration is calculated similarly to the
process used to create the overall project buffer.
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11-22
CCPM EMPLOYING FEEDER
BUFFER
(FIGURE 11.8)
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11-23
CHANGES IN CRITICAL CHANGE
EXAMPLE
(FIGURES 11.10A, 11.10B, 11.10C)
Copyright ©2016 Pearson Education, Inc.
11-24
CRITICAL PATH NETWORK WITH
RESOURCE CONSTRAINTS
(FIGURE 11.10A)
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11-25
CRITICAL CHAIN SOLUTION
(FIGURE 11.10B)
Copyright ©2016 Pearson Education, Inc.
11-26
CRITICAL CHAIN PROJECT
PORTFOLIO MANAGEMENT
 Capacity constraint buffer (CCP) refers to a safety
margin separating different projects scheduled to
use the same resource.
 Drum buffers are extra safety applied to a project
immediately before the use of the constrained
resource to ensure that the resource will not be
starved for work.
Copyright ©2016 Pearson Education, Inc.
11-27
STEPS TO APPLY CCPM TO
MULTIPLE PROJECT PORTFOLIO
1. Identify company resource constraints or drum.
2. Exploit resource constraints.
3. Subordinate individual project schedules.
4. Elevate the capacity of the constraint resource.
5. Go back to step 2 and reiterate the sequence.
Copyright ©2016 Pearson Education, Inc.
11-28
THREE PROJECTS STACKED FOR
ACCESS TO A DRUM RESOURCE
(FIGURE 11.15)
Copyright ©2016 Pearson Education, Inc.
11-29
APPLYING CCB TO DRUM
SCHEDULES
(FIGURE 11.16)
Copyright ©2016 Pearson Education, Inc.
11-30
CCPM CRITIQUES
1.
No milestones used
2.
Not significantly different from PERT
3.
Unproven at the portfolio level
4.
Anecdotal support only
5.
Incomplete solution
6. Overestimation of activity duration padding
7.
Cultural changes unattainable
Copyright ©2016 Pearson Education, Inc.
11-31
SUMMARY
1. Understand why Agile Project Management was developed
and its advantages in planning for certain types of projects.
2. Recognize the critical steps in the Agile process as well as it
drawbacks.
3. Understand the key features of the Extreme Programming
(XP) planning process for software projects.
4. Distinguish between critical path and critical chain project
scheduling techniques.
5. Understand how critical chain methodology resolves project
resource conflicts.
6. Apply critical chain project management to project portfolios.
Copyright ©2016 Pearson Education, Inc.
11-32
Copyright ©2016 Pearson Education, Inc.
11-33

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