Project Planning: Managing the Triple Constraints

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Project Planning Managing the Triple Constraints

• Ben Krauss, SEARCH

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Session Focus

• Summary of Scope, Time Cost
• Review of project management terms techniques
  for controlling Scope, Time Cost
• Tools you can use to manage Scope, Time Cost
• Hands on introduction to the tools

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The Project Management Knowledge Areas

• 1. Project Integration
• 2. Scope Management
• 3. Time Management
• 4. Cost Management
• 5. Quality Management
• 6. Human Resource Management
• 7. Communications Management
• 8. Risk Management
• 9. Procurement Management

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Why do you need to be concerned?

• What impact do the triple constraints have on all
  technology projects?
• Why must Scope, Time and Cost be controlled?

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Failure rates of Information Technology
Projects Standish Group findings-1994
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Triple constraints
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Scope

• Defined What is included in the project, as well
  as what is to be excluded.
• Management techniques
• Conduct a thorough needs analysis
• Define whats in and whats out
• Clearly identify the projects goal, objectives
  and main drivers
• Manage scope creep

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Project Scope Management Tools Techniques

• Scope Overview Project Overview Statement
  summarizing the Project, Goal, Objectives,
  Success criteria, Assumptions, Risks and
  Obstacles
• Scope Planning-Create a project scope management
  plan documenting how the project scope will be
  defined, verified, controlled, and how the work
  breakdown structure will be created and defined.
• Scope Definition-Develop a detailed project scope
  statement as the basis for project decisions
• Creation of a Work Breakdown Structure
  (WBS)-Subdivide the major project deliverables
  and project work into smaller, more manageable
  components
• Scope Verification-formalizing acceptance of the
  completed project deliverables
• Scope Control-controlling changes to the project
  scope

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Why develop a Project Overview Statement?

• Answer To clearly define/articulate the purpose
  of a project, the pros, cons and assumptions
• Opportunity Why the project is being undertaken
  
• Goal-clearly defined
• Objectives-that drive project towards the goal
• Success Criteria-specific and measurable
• Assumptions that were made
• Risks-most probable
• Obstacles-and how to avoid

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Project Overview Statement-example
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Tool 1 Project Overview Statement.Your turn
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Presentation of results

• Tool 1 Project Overview Statement
• Questions/Comments

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Time
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Time management

• Defined A mechanism to ensure the project is
  completed on time, within the resources
  available, and avoids delays and associated cost
  overruns
• Management techniques
• Define project activities
• Estimate the activity duration using references,
  professional contacts, actual task completion
  personnel
• Track progress using PM tools Gantt Chart, Work
  Breakdown Structure, Network Diagram.

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Project Time Management Techniques

• Activity Definition
• Activity Sequencing
• Activity Resource Estimating
• Activity Duration Estimating
• Schedule Development
• Schedule Control

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Tool 2 Work Breakdown Structure (WBS)

• Work Breakdown Structure organizes and defines
  all the project work
• Work Breakdown Structure subdivides the project
  into smaller, more manageable pieces of work
• The lowest level, most detailed level of the Work
  Breakdown Structure (work package) can be
  scheduled and cost estimated

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WBS Elements and Example

• Elements
• Summary Description of Work
• Duration (time to complete)
• Deliverable (Unique Result of Above Work)
• Dictionary (adequately detailed description of
  work)
• Example
• 1. Concept
• 1.1 Business Plan
• 1.2 Resources and Budget
• 2. Content Development
• 2.1 Content Collection
• 2.2 Abbreviated outline
• 3. Media Distribution
• 3.1 Media Design
• 3.2 Production

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Work Breakdown Structure
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WBS.Your turn
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Presentation of results

• Tool 2 Work Breakdown Structure
• Questions/Comments

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Other tools

• Gantt chart
• Network Diagram
• Both based on the Work Breakdown Structure

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Gantt Chart
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Network Diagram
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Activity Definition

• The Activity Definition process identifies
  deliverables at the lowest level (work package)
  in the work breakdown structure.
• Work packages are further broken down to provide
  a basis for estimating, scheduling, executing,
  and monitoring and controlling the project work.

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Activity Sequencing

• Activity sequencing involves identifying
  documenting the relationships among schedule
  activities
• Network Diagram Schematic displays of the
  projects schedule and the logical relationship
  among them.

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Activity Resource Estimating

• Determining what resources (people, equipment or
  material) will be needed, when and how much.
• Tools Techniques
• Professional judgment
• Alternatives analysis
• Published estimating data
• Project Management software
• Bottom-up Estimating

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Activity Resource Estimating

• This process uses information from the scope of
  work, required resources and quantities and
  resource calendar.
• The inputs for the estimates of schedule duration
  originate from the person or group who is most
  familiar with the required work.

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Activity Duration Estimating

• Tools Techniques
• Expert judgment
• Analogous estimating
• Parametric estimating
• Three-point estimates
• Reserve analysis

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Schedule Development

• Determines the planned start and finish dates for
  the project activities.
• Schedule estimates can require that time and
  resource estimates are reviewed to create a
  project schedule that can serve as a baseline
  tracking tool.
• Tools Techniques
• Schedule network analysis
• Critical path method calculates the possible
  start and end dates for project activities and
  the project overall.

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Schedule control

• Tools Techniques
• Progress reporting
• Schedule change control system
• Performance measurement to produce the schedule
  variance
• PM software
• Variance analysis
• Schedule comparison bar charts-comparison of
  planned vs. actual schedules

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Cost
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Cost

• Defined The cost of all resources required to
  perform and complete incremental tasks and the
  overall project
• Management techniques
• Gather internal and external costs.
• Look to vendor references
• Estimate recurring costs
• Usually 15 of initial hardware/software cost

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Project Cost Management Techniques

• Cost Estimating
• Cost Budgeting
• Cost Control

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Tool 3 Cost Breakdown Structure
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Tool 3 Cost Breakdown Structure..Your turn
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Presentation of results

• Tool 3 Cost Breakdown Structure
• Questions/Comments

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Cost Estimating

• Developing an approximate cost of the resources
  needed to complete the project
• Tools Techniques
• Analogous Estimating Based on similar projects
• Bottom-up Estimating Costs at lowest level are
  rolled up for reporting and tracking
• Parametric Estimating Base on statistical
  information
• PM software
• Vendor Bid Analysis

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Cost Budgeting

• Defined Total the estimated costs of different
  work packages to establish a baseline for
  measuring project performance.
• Tools Techniques
• Cost Aggregation Scheduled activity cost
  estimates are totaled in accordance with the WBS.
• Parametric estimating Using mathematic models to
  predict costs.
• Reserve Analysis Establishes contingency
  reserves
• Funding Limit Reconciliation Work scheduled to
  limit expenditures

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Cost control

• Cost change control system
• Performance measurement analysis
• Forecasting
• Project performance reviews
• Project Management software
• Variance management

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The news is getting better

• The 2003 Chronicles report shows some major
  improvements. The report was based on analysis of
  13,522 Information Technology (IT) projects
• Projects meeting Scope, Time and Cost estimates
  have increased from 16 to 34.
• Project failures (cancellations) have decreased
  from 31 to 15
• Cost overruns for approximately half of projects
  decreased from over 180 to 43.
• Time overruns have increased to 82 of projects.
• Large organizations currently net 52 of the
  original functions and features in the end
  product. This is a 10 increase.

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Session Focus Recap

• Scope, Time Cost
• Review of project management terms techniques
  for controlling Scope, Time Cost
• Tools you can use to manage Scope, Time Cost
• Hands on work with the tools

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Want to know more?

• Resources
• Law Enforcement Tech Guide (LETG)
• Project Management Book of Knowledge (PMBOK)
• Project Management Institute (www.pmi.org)
• The SEARCH technical assistance program
• PM courses and certificate programs

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Questions/Discussion

• Thank you