Project Management and SAP

Work Plan Management

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(M4)

Maria Maddalena Ruggini, PMP

CC ERP Roma

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Work Plan Management

1. 2. 3. 4. 5. 6. 7.

Introduction Define and sequence activities 3 and optimization Scheduling representation Resource Allocation Cost Planning The sins of project planning Conclusions

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Introduction
Some other vital questions for the PM:

Who is going to do it? Where are we doing it? When are we going to get it done? And, How much will it cost?

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Introduction
Project Time Management process includes the process required to manage the timely completion of the project. The purpose of the Project Schedule deliverable is to define the work schedule to be followed, the resources and associated time commitments required for the project and the phases of the project. The work breakdown structure (WBS) serves as the foundation for the schedule, the deliverables to be produced and tasks to be performed, as part of the project.
Define activities

Define schedule activities for the deliverable

Create Schedule network diagram

Define dependencies

Estimate activity resources

Estimate effort and resource category Define activities duration Optimize the schedule Manage contingency

Develop schedule

Establish cost and schedule baseline

Obtain customer and sponsor sing-off for project schedule and cost baseline

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Introduction
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 plan should 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

A schedule network diagram visually 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 the order those tasks need to happen. Every activity and milestone (except the first and the last) should be connected to at least one predecessor and at least one successor. Logical relationships should be designed to create a realistic project schedule. It may be necessary to use lead and lag time between activities 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

The evaluation of leads and lags is essential to complete the description of the dependency relationships between the activities. In particular:

Lead: is the amount of time whereby a successor activity can be advanced with respect to a predecessor activity or is an overlap between tasks that have a dependency. For example, if a task can start when its predecessors half finished, you can specify a finish-tostart dependency with a lead time of 50 percent for the successor task. (in PM software you enter lead time as a negative value). Lag: is the amount of time whereby a successor activity will be delayed with respect to a predecessor activity. For example, if you need a two-day delay between the finish of one task and the start of another, you can establish a finish-to-start dependency and specify two days of lag time. (in PM software you enter lag time as a positive value).
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Define and sequence activities Project schedule network diagram

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 broken taking 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

The definition of tasks, milestones and phases in project planning can be expressed simply as follows:

A task is an activity that contributes towards a deliverable. When defining a task, it starts with a verb/noun.

A milestone is 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 have associated resources but can have costs.
A phase is 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 Milestones

A Milestone can be used to:

Point out the completion of a deliverable or a deliverable sign-off. Highlights important events for the project (ex.: end of user training) Make clear an internal or external constraint. Mark the point when a cost is added to the project (ex: costs from an external supplier). Remember the billing dates.

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Define and sequence activities Baseline

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 approved by Engineering Senior Management in 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

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 baseline). The baseline could change during the project life only if the changes are authorized applying the same procedure as for the initial baseline

Warning
costs increase = issue / approval of a new C12
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Define and sequence activities Support Tools

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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Define and sequence activities Scheduling representation and optimization

Very often, the scheduling is shown with a Gantt chart or bar graph, which allows for effective visualization of the scheduled activities. All activities are distributed on the diagram by referring to a single time axis; Precedence diagramming can be represented (arrows connecting activities); The Gantt chart can be used as a tool for high-level communication: activities can be aggregated according to the detail of the information that you want to communicate;

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Scheduling representation and optimization Critical path

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 on schedule 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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Scheduling representation and optimization Critical path

A and B do not depend on any task and can then start ASAP (assoon-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 = eligibility window of B = Late Start di B Early Start di B = = Late Finish di B Early Finish di B

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Scheduling representation and optimization Schedule compression

Fast Tracking and Crashing are important project schedule compression techniques that help the project manager to shorten the duration of the project. These techniques are used 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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Scheduling representation and optimization Fast Tracking

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 Crashing

In schedule crashing, you will review the critical path and find out which activities can be 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

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

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 Fixed units task Fixed work task If you revise units Duration is recalculated. Duration is recalculated. Work is recalculated. If you revise duration Work is recalculated. Units are recalculated. Work is recalculated. If you revise work Duration is recalculated. Duration is recalculated. Units are recalculated.

Fixed duration task

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Scheduling representation and optimization

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
The objective of allocation of Human Resources is to maximize the utilization in order to have CONTINUOUS and PRODUCTIVE allocation with fewer resources

We need to find a compromise between continuity and productivity (or efficiency): 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.

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Resources allocation
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
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 Inputs

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 C12

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 presales); 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 agreement according to the rules defined by the procedure PGA04_Gesto Oramento Fornecimento
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Cost planning Project budget component

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 C12

The management of the C12 must accompany the entire project cycle and / or pre-sales activities from first settings until the completion of all planned activities. The costs must be detailed for each type by referring, in every possible case, to corporate standards (standard costs for professional, price lists, etc..).

The C12 is not , or , its not the only tool to manage the cost baseline of a project

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Cost planning Human resources

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 Other costs

In many cases, in addition to personnel costs, you have different types of cost related to the objectives of the project, but not corresponding to the direct consumption of economic resources

In MS-Project is appropriate to include this type of associating costs (such as overheads) to milestone appropriately placed in time and applying the "accrual principle"

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Cost planning Other costs

Travel expenses, hardware costs, software license and/or maintenance, turnkey supplies. Other costs that should be considered in the work plan are those generated 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

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 steering wheel of the PM!

is the

Is it conceivable a Pilot driving without a steering wheel? ...

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The sins of project planning

Variation of the "I do not plan at all 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 of the project....

"Too much has happened, the plan is still valid, but the project is no longer able to get in line with the plan ..."

"I've changed too many things, the plan does not describe the real situation anymore: I can throw it ..

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The sins of project planning

A project can not do without an approved reference plan (baseline) and an updated Work Plan

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 new Mod C12).

the most pleasant thing of NOT planning is that failure comes as a surprise without being preceded by a period of worry and depression

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The sins of project planning

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 days National 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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The sins of project planning

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 = Budget Earned value / Cost performance index

Or at least this one:

ETC = (BAC - EV)

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Conclusions

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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Conclusions
A good work plan should :

Be consistent with the objectives of the project, in particular respecting the constraints on time and cost Allow the production of a realistic cost plan Contain which resources are committed, on which activities, when and for how long. The plan must be useful as supporting document for the individual members of the project team. be a valid document to communicate and discuss with various stakeholders, internal and external, the project status provide to the PM, during the project, real data on the performance of the project, thus allowing him: proper planning of the activities an early identification of inefficiencies and risk factors
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