1.

Schedule Management- Resource

Optimization, Schedule Compression

2. Risk Management
PRESENTED BY:
MEGHA BANG – 107
SHIVANI JOSHI – 125
ADITI SAWANT – 336
SAANIYA NIHALANI – 329
PRANALI DHUMAL – 310
ANMOL MOTWANI- 326
RUPEN CHAWLA- 308
 Project Scheduling

The project schedule is the tool that communicates what work needs to

be performed, which resources of the organization will perform the

work and the timeframes in which that work needs to be performed.

 Importance / Objectives
 Importance

 Acts as guide to how the project will progress

 Activities divided into combination of tasks

 Should be practical and logical plan – to avoid delay and work stoppages

 Objective

 Produce an optimal project schedule in terms of cost, time, or risk.

 Gantt Chart

• Visual scheduling tool

• Graphical representation of information

• Assign resources to tasks

• Show dependencies between tasks, personnel, and other resources

allocations

• Track progress towards completion

Building a Gantt Chart

• List all tasks and milestones from the project along the vertical axis

• List time frame along the horizontal axis

Activity 1
Activity 2
Milestone

Time Frame: day 1 day 2 day3

 Building a Gantt Chart
• Activities: Create box the length of each activity time duration
– E.g., activity one is scheduled from day1-day3
• Dependencies: Show dependencies between activities with arrows
– E.g., activity 2 cannot start until activity 1 is complete

Activity 1
Activity 2

Time Frame: day 1 day 2 day3…

 Advantages of using Gantt Chart

 Easy to create and understand

 Allows tracking of progress of the project

 Improved communication

 Avoid resource overload

 Better time management

 Disadvantages of using Gantt Chart

 Activity descriptions often lack detail

 Can become complex for big projects

 Updating can be difficult

Resource Scheduling
 Resource Allocation
Shortcomings
 Requirement of sufficient funds at appropriate times
 Resource demand is not uniform
 Skewed demand manageable for raw material but not for man
power
 Non-availability of resources at peak demand

Methods of handling
 Using Float, delay in requirement of resource
 Delaying the activity
 Advancement in the activity
 Resource Scheduling

Meaning :
Process of maintaining uniform requirement of resources wherever
possible and incase of scarce resources the delays should be kept to
minimum
 Resource Smoothing

 Constraint – Project duration

 Resource scheduling only smoothens demand for resources in as
uniform manner as possible.
 The start times of the non-critical path activities are shifted and the
shift is on time-scaled network (basis : Load Histogram)
 The start of critical paths are never shifted.
 Activities with highest float times are shifted first.
 Examples for implementation: labour, finances
 Shortcoming: Increases cost (preferred)
Load Histogram
 Resource Levelling
 Constraint: Resource requirement
 Importance is given to limited resources
 Resource Levelling leads to probable delay in project
 Resources like heavy machinery, specific equipments cannot be
made available in less time even at higher cost
 Hence delaying the completion of project – only option
 Ensuring the delay due to non-availability of resources is kept at
minimum
 Example of implementation: Customized software, Road rollers in
construction
 Splitting and Multi tasking

• Splitting – It’s a scheduling technique used to build a better

project schedule and / or increase resource utilization
 It involves interrupting one activity to add resources to another
one and then moving the resources back to the 1st task.
 This technique should be done when the cost to begin and end
an activity is low
• Multi-tasking- Performing various activities simultaneously.
Disadvantage: It produces lowe quality work as the focus is
reduced due to interruptions in activities.
 Schedule Compression

 When projects are to be completed in a short time span than the

usual, then schedule compression is involved. Two ways to achieve
this are:
o Fast tracking- It is a way to get more work done in a given period.
It persuades people to accomplish more work in less time.
o Crashing- Adding more resources to speed up the project. Activities
on the critical path are crashed as it provides an immediate reduction
in the project duration
 Introduction to Risk
 Definition:
Risk – it is a chance or probability of something that may or may not
occur
Uncertainty – it is a phenomena that cannot be calculated with statistical
confidence
 Risk Management is often overlooked on projects, but it can help improve
project success by developing realistic estimates
 Project Risk involves understanding potential problems that might occur
on the project and how they might impede project success

 Key Insight: Risk management is like a form of insurance that needs

investment
 Risk in time Estimates

Probability of
Occurrence of a
Risk event
Cost to overcome
Occurrence of
Risk event

• Risk planning can reduce unforeseen or uncontrollable circumstances

• The probability of occurrence of risk is highest near the beginning of a project
• The cost impact associated with risks tends to be lowest in the beginning and
highest towards end of the project
 Identification of Risks

 Technical/Quality/Performance Risk
 Project management Risk
 Organisational Risks
 External Risks
 Risk Categories

 Risks that are Known Knowns: known knowns are usually not risks
since they imply certainty. Can be identified through
1. Industry statistics
2. Past experiences
3. Organizational documentations
4. Standard operating procedures
 Risk Categories

 Risks that are Known Unknowns: Identified in and through

1. Brainstorming with the team to devise a list of project risks
2. Risk simulations
3. Industry publications
4. Organisational documentations
 Risk Categories
 Risks that are Unknown Unknowns/ Black swans: There is no way
to say with certainty that a project team has identified all the risks
that could possibly occur on a project. This is a cause of concern,
and although such risks cannot be thought of, a percentage of the
overall project cost and time is kept aside of use in case such
unimaginable case occurs
 Risk
Responses

Strategy for Strategy for

Negative Risk Positive Risk

Reduce
Enhanc
Avoid Transfer / Accept Exploit Share Accept
e
Mitigate

Residual Risks

Contingent
Responses
 Eliminate Risk (before risks materialize)
Reduce Risk (before risks materialize)
Act on risks (after risks materialize)

Risk Reserves
The resources that are set aside to respond to RISKS are known as reserves

Identifiable Non Identifiable

- Contingency Reserves - Backup Reserves
Or Management Reserves

Control:
Control:
Project
Organisation Mng.
Manager