Assignment - PM0011 - Project Planning and Scheduling - Set 2

Sikkim Manipal University - MBA - PM0011 - Project Planning and Scheduling

Semester: 3 - Assignment Set: 2

Question 1: Describe the four scope elements listed by PMBOK.

Answer:

The scope is the most important element to understand about any project. All planning and allocation of resources are anchored to this understanding. Scope creep is a significant risk in software development projects. We discuss why this is so, and how to avoid or at least mitigate the risk. New software is usually developed as a result of a customer identifying a need. The next step is to specify how the software will meet that need; specifically, what functionality will be developed. The scope and budget are set, the team knows what they're delivering, and everyone is ready to begin. The Project Management Institute Project Management Body of Knowledge (PMBOK) defines product scope as the features and functions that are to be included in a product or service. It defines project scope as the work that must be done to deliver a product with the specified features and functions. Project scope management is defined as the processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully.

The PMBOK Guide addresses four elements related to scope:

Scope: Scope is the summation of all deliverables required as part of the project. This includes all products, services and results.

Project Scope:

This is the work that must be completed to achieve the final scope of the project, namely the products, services and end results. Scope Statement:

This is a document that provides the basis for making future decisions such as scope changes. The intended use of the document is to make sure that all stakeholders have a common knowledge of the project scope. Included in the document are the objectives, description of the deliverables, end result or project, and justification of the project. The scope statement addresses seven questions who, what, when, why, where, how and how money. This document validates the project scope against the statement of work provided by the customer.

Statement of Work: The statement of work (SOW) is a narrative description of the work required for the project. The complexity of the SOW is determined by the desires of top management, the customer, and / or user groups. A statement of work describes the actual work that is going to be performed on the project which, when combined with specifications, usually from the basis for a contractual agreement on the project. As a derivative of the WBS, the statement of work (sometimes called scope of work) describes what is going to be accomplished, a description of the tasks, and the deliverable end products that will be produced, such as hardware, software, tests, documentation and training. The statement of work also includes reference to specifications, directives or standards, that is, the guidance to be followed in the project work. The statement of work includes input required from other tasks involving the project and a key element of the customer „s request for proposal there can be misinterpretation of the statement of work which can affect the results of the project adversary.

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Common causes of misinterpretation are:

Mixing tasks, specifications, approvals, and special instructions. Using imprecise language (“nearly, “optimum”, “approximately” etc.”). No pattern, structure or chorological order. Wide variation in size of tasks. Wide variation in how to describe details of the work. Failing to get third party review.

Misinterpretations of the statement of work can and will occur no matter, how careful everyone has been, the result is creeping scope. Which is likely to upset costs and schedules? The best way to control creeping scope is with a good definition of requirements up front.

Integration:

The project control process is built on the concepts of integrating data related to scope, performing organization, and cost and of producing performance metrics by assimilating and evaluating all information on a common basis. It is the responsibility of the project manager to integrate the efforts of the assigned human resources, the variety of equipment supplies, and materials and the technologies to produce the project deliverables on schedule within the budget.

The amount of integration a project requires is a function of several factors:

The number of components. The more components there are to a project, the more effort that needs to be spent on integration. The team components refers to physical parts or systems, to different functional contributions (e.g. marketing, finance, production), as well as to different vested interests of stakeholders (e.g. environmental impact, economic development, technology transfer).

The degree to which the projects components are different from each other.

These differences may be differences in functional specialization. For example, marking, production and financial components of a commercial project on the differences may originate from the different technologies used in producing the different components or sub systems of a physical product.

Business need for a Scope change: The must be valid business purpose for a scope change. This includes the following factors at a minimum:

An assessment of the customer’s needs and the added value that the scope charge will provide.

An assessment of the market needs including the time required to make the scope change, the payback period, return on investment, and whether the final product selling price will be overpriced for the market.

An assessment on the impact on the length of the product life cycle. An assessment on the competitions ability to initiate the scope change. Is there a product liability associate with the scope change and can it impact over

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Question 2: List the inputs, outputs, tools and techniques for the vendor management process.

Answer:

Vendor Management: For vendor management the basic requirements the existence of a vendor, which would only happen if product, good or service is acquired at the best cost to meet the need of the project This process is about documentation of purchasing decisions and policies and approaches for product outsourcing.

The major inputs required for this process are:

Scope baseline:This is the component of project plan which gives information about the project scope, listed in the scope statement, lists the work breakdown structure and description of the WBS elements.

Requirement documentation:This document would have information about the project requirements both technical and legal along with the legal implications.

Teaming agreement:

They are contractual agreements made between two or more parties as a result of partnership or joint venture.

Risk register:

It is document which lists the identified risks, risks which have already occurred in similar projects in the past, and cost involved in risk mitigation.

Activity resource requirements:

This document lists the types and quantity of resource required for project activities. It also lists the skillset required and quality of material required and other characteristics of the resources.

Project schedule:

This structured document gives us the start and end date of each activity. It gives a detailed description of the activities to be performed in the project, their dependencies and requirements. They can be represented in the following format:

Milestone chart Bar charts Project schedule network diagrams

Activity cost estimates:

They are measurable calculation of the feasible cost required to complete project work




Cost performance baseline:

It is an approved budget at competition, which is used for monitoring and controlling cost and cost variances.

Enterprise environmental factors:

Enterprise environmental factors include information about organizational culture, processes, infrastructure, government standards, human resource data, PMIS and stakeholder information etc.

Organizational Assets: this includes all process related assets, which an organization

captures, which can impact project success. This can range from organization policies, procedure, processes to knowledge base created from previous project experiences.

The tools and techniques used for this process are:

Make-or-Buy analysis: This analysis helps take a call whether it is beneficial to buy a product from third party or make it. Even making should happen in-house or should be outsourced. Depending on what gives the maximum profit, choice is made.

Expert judgment: this is about taking opinion from an experienced about whether the product should be made or bought, or its production should be outsourced.

Contract types: whenever the product is to be created and procurement form third-party is done, it is assumed that the failure of the product risk i8s shared with the third party. Contract type defines how the risk shared. The various types of contract are Fixed = price, cost reimbursable, time material contact.

The major outputs of this process are: Procurement documents:

The procurement documents are procurement management plan, which consists of the contract type, issues management, type of estimates, how to manage the multiple vendors, procurement statement of work, which defines the work to be accomplished as a part of the procurement contract, the proposal sent to the vendor, list of vendors who bid for the proposal, terms and conditions of the contract, RFP (request for proposal) etc.

Make-or-buy decisions:

This document mentions whether the product is to be bought or made, if any risk sharing policy used etc.

Question 3: Draw a network diagram and answer the questions below: a) Activity 1 can start immediately and has an estimated duration of 4 weeks.b) Activity 2 can start after activity 01 is completed and has an estimated

duration of 5 weeks




c) Activity 03 can start after activity 01 is completed and has an estimated duration of 5 weeks

d) Activity 04 can start after activity 02 is completed and has an estimated duration of 8 weeks

e) Activity 05 can start after activity 04 is completed and after activity 03 is completed this activity takes 5 weeks.

1) Calculate the start and end time of the all the activities in the network diagram.

2) Calculate the slack value of the task.

Answer: A project network diagram, also known as a precedence diagram, is a handmade or software-created diagram that shows the relationships in time and dependency of steps needed to complete a project. The diagram clarifies which steps can precede others, which steps must succeed others, and which can occur simultaneously, as well as other project constraints. It also shows when lead time allows beginning one task before another is complete as well as when lag time is needed after a step has been completed before a succeeding step can commence. A project network diagram is helpful in computing start and end dates, apportioning resources and personnel, and analyzing scheduling choices.

There are a variety of ways to create a graphical representation of a project network diagram. It is common to use left to right progression to show change from earlier time, at the left, to later time, at the right. It is also common to prepare for creating a project network diagram by preparing a chart of activities, roughly in chronological order, with verbal notes about dependencies.

Precedence Diagramming Method (PDM):

It is a method for constructing project schedule network diagram that has rectangular boxes, depicting nodes and arrows connecting the boxes, depicting the logical relationship between the activities. This technique is also called Activity on Node (AON).

To make our diagramming easier, we need to create a table of all the activities, their predecessors, and their durations.

Activity Predecessor DurationStart - -1 Start 4 weeks2 1 5 weeks3 1 5 weeks4 2 8 weeks5 3 and 4 5 weeks




1) Calculation of start and end time of all the activities in the network diagram.

Sum the duration of each activity on the path.

Start - 1 - 2 - 3 - 4 - 5 End is 4 + 5 +5 + 8 + 5 = 27 weeks

2) Calculation of the slack value of the task.

Tasks possessing a difference among early and late dates are said to possess slack (or float) and such tasks are known as non-critical tasks. To calculate slack values for each task, use the formula:

TS = LF-ES Duration

Question 4: list and define the processes in project time management.

Answer:

The Project Time Management knowledge area is concerned with scheduling project activities and the completion of the project. In the previous Scope Management knowledge area, we established work packages from deliverables. The work we perform in the Time Management processes will further decompose the work packages into explicit activities that we’ll use to establish the project schedule.

Time management processes can help you ensure that a project is finished on time. These processes enable you to estimate the duration of activities and identify the resources needed to carry out these activities within the project scope.

It all starts with the schedule management plan. This plan is part of the overall project management plan. It contains scheduling methodologies and tools that will be used throughout the duration of the project. This plan also sets the format and criteria for developing and




controlling schedule management. How formal or detailed the plan needs to be depends on the organization and the project itself.

The scheduling methodology that you apply to a project generally depends on the process assets and tools that an organization typically uses. Different scheduling tools will be used for different types of projects and organizations. Tools and techniques that you can use to develop the schedule include schedule network analysis, critical path method, critical chain method, resource levelling, what-if scenario analysis, applying leads and lags, and schedule compression. The most common methods of schedule representation are PERT network diagrams, Gantt charts, and lists of milestones.

Activity Definition:

The process of identifying and documenting the specific activities that must be performed to produce the various project deliverables identified in the WBS.

Define the activities such that the project objectives will be met. Input includes: WBS, scope statement, historical information, constraints, and

assumptions Methods used:

Decomposition: Involves subdividing project elements into smaller, more manageable components. Differs from scope definition in that the Output are activities (action steps) rather than deliverables.

Templates: Activity lists or portions of activity lists from previous projects. Output includes: Activity list, supporting detail including assumptions and constraints,

and WBS updates.

Activity Sequencing:

The process of identifying and documenting interactivity dependencies. Activities must be sequenced accurately. Input includes: Activity list, product description, mandatory dependencies,

discretionary dependencies, external dependencies, constraints, and assumptions. Methods used: Precedence Diagramming Method, Arrow Diagramming Method,

conditional diagramming methods, and network templates. Network templates can include an entire project or only a portion of it. (portions are

referred to as sub-nets or fragments.) Sub-nets are useful where a project includes several identical or nearly identical features such as floors on a high-rise office building or program modules on a software project.

Output includes: Project network diagram and activity list updates.

Activity Duration Estimating:

The process of estimating the number of work periods needed to complete each identified activity.

Input includes: Activity list, constraints, assumptions, resource requirements, resource capabilities, and historical information.

Methods used: expert judgment, analogous estimating (top-down estimating), and simulation.

Output includes: Activity duration estimates, basis of estimates, and activity list updates.

Schedule Development:




The process of analysing activity sequences, durations, and resource requirements to create the project schedule.

Input includes: Project Network Diagrams, Activity Duration Estimates, Resource Requirements, Resource Pool Descriptions, Calendars, Constraints, Assumptions, Leads and Lags.

Methods used: mathematical analysis, duration compression, simulation, resource levelling heuristics, project management software.

Output includes: project schedule and supporting detail. schedule management plan, resource requirement updates.

Schedule Control:

The process of controlling changes to the project schedule. Input includes: Project schedule, performance reports, change requests, and schedule

management plan. Methods used: Schedule change control system, performance measurement,

additional planning, and project management software. Output includes: schedule updates, corrective action, and lessons learned.

Question 5: What is a business case? List the business related questions answered using a business case.

Answer:

A business case captures the reasoning for initiating a project or task. It is often presented in a well-structured written document, but may also sometimes come in the form of a short verbal argument or presentation. The logic of the business case is that, whenever resources such as money or effort are consumed, they should be in support of a specific business need. An example could be that a software upgrade might improve system performance, but the "business case" is that better performance would improve customer satisfaction, require less task processing time, or reduce system maintenance costs. A compelling business case adequately captures both the quantifiable and unquantifiable characteristics of a proposed project.

Business cases can range from comprehensive and highly structured, as required by formal project management methodologies, to informal and brief. Information included in a formal business case could be the background of the project, the expected business benefits, the options considered (with reasons for rejecting or carrying forward each option), and the expected cost of the project, a gap analysis and the expected risks. Consideration should also be given to the option of doing nothing including the costs and risks of inactivity. From this information, the justification for the project is derived. Note that it is not the job of the Project Manager to build the business case; this task is usually the responsibility of stakeholders and sponsors.

Developing a Business Case: A successful enterprise produces products, provides service, and completes business strategy related projects, programs and portfolios to maximize accrued benefits. Enterprises address their need for growth and change by creating strategic business initiative to modify the




enterprises or create and modify its process or products. The enterprise business strategy, which is determined at the executive management level, drives the development of the supporting strategic initiatives and objectives. Thus executive management must be responsible for developing and planning business strategy initiatives and related business objectives. The first management action in the strategic planning process is executive development and set of strategies that support the enterprise vision / mission. The next step is to create a list of strategies that describes executive management purpose and scope for each strategy. The final step in business strategy development planning and a key factor in their successful planning, development and implementation of strategic initiatives is developing and demanding the strategic business plan and initiatives that will be adopted to achieve the vision / mission during the business cycle covered by the document. It may include, where practicable, the business objectives and related benefits to be achieved. Business case documents significantly increase the probability of accomplishing the enterprises business strategies by documenting each strategy in one or more cases. A business case articulates the intent and desired benefits of a specific strategy in a feasibility study format. Each business case provides the bases for authorizing further project planning activities, so that an adequate definition of the intent of each strategy initiative and supporting objectives can be developed.

The purposes of the business case are to:

If the official document by which the results of the business analysis of a proposed business opportunity or identified threat are communicated within the enterprise.

Document the market, technical, operational and financial analysis for the initiatives. Serve as an initial basis for prioritization of the initiative, including its funding and the

allocation of other resources. Provide the parameters for measuring how well the initiative was accomplished. Get the mile stone by which the initiative will be tracked. Established accountability and documentation for the benefits being proposed.

The business case answers the following business related questions:

How did the initiative come about? What is the opportunity / treat / issue improvement being addressed? Why in clear and concise terms, is the initiative necessary? What is the desired product, service or result? What are the benefits to the enterprise and its customers? What are the qualitative benefits, such as customer satisfaction, strategic value cycle

time improvements? What are the linkages to the enterprise’s vision, mission and value drivers ( that is

mental , quality, efficiency) Why will the initiative succeed? What must be invested to get the desired product, service, result or benefit? What are the expected incremental productions or operational costs for the new or

modified product, service, or production process? What are the proposed spending reductions, revenue improvements or profit

improvements related to justify the initiative? What is the enterprises capital to successfully implement the initiative while meeting

financial objectives?




What other factors materially impact the potential success of the initiative such as additional services, required efficiencies, minimum or maximum quantities required product quality and development objectives?

What are the concerns, issues and risks? What are the parameters and criteria used for prioritizing the initiative with respect to

other business strategic initiatives? What is the exit strategy if the strategic initiative is not delivering the desired return or

investment?

The business case document provides a common basis and format for supplying information required for both business and project – business management planning. The basic information includes the strategic initiatives, identification and description.

In most commercial businesses, completing a Business Case (project management forms) is the first step towards initiating a project. The Business Case justifies the start-up of the project and describes the:

Business problem (or opportunity) that currently exists in the business Alternative options for delivering a solution to resolve the problem Benefits and costs associated with each alternative solution Recommended solution for approval

The first step in creating a Business Case is to identify the business problem (or opportunity) that results in a need for a project. Alternative solutions are listed and, based on each solution's individual merits, a preferred solution is recommended. The last step taken when creating a Business Case is to define a plan for the implementation of the agreed solution. At some point during or after the creation of the Business Case, it may be necessary to undertake a Feasibility Study to ensure that the solutions identified can feasibly be implemented. This is available in your project management forms. Once the Business Case has been documented, it is presented to a Project Sponsor for approval. The Project Sponsor oversees the project at a strategic level. They authorize the project to proceed, allocate funding from their budget, and ensure that project objectives are achieved by participating in Phase Reviews. Creating a detailed Business Case is a critical step in the Project Lifecycle, as it provides the basis upon which the project is initiated. Throughout the project, the Business Case is referred to frequently to ensure that the project is on track. For instance, it is used in a:

Phase Review to ensure that current project costs and benefits are in line with original projections.

Project Closure Report to ensure that the project has achieved all the criteria required to close the project.

Post Implementation Review to measure the extent to which the project has achieved its stated objectives.


Documents

Assignment - PM0011 - Project Planning and Scheduling - Set 2