P.I.I.M.T - PowerPoint Presentation

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American University of Leadership Ahmed Hanane MBA Eng CMA Partner email ahanane360gmailcom Chapter 12 Resource Management 120 2 Copyright 2013 Pearson Education Inc Publishing as Prentice Hall ID: 494211

resource project prentice hall project resource hall prentice publishing education pearson 2013 copyright earned schedule figure understand control management

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Slide1

P.I.I.M.TAmerican University of Leadership

Ahmed Hanane, MBA, Eng, CMA, Partner

email: ahanane360@gmail.comSlide2

Chapter 12Resource Management

12-0

Chapter 12 Learning ObjectivesAfter completing this chapter, students will be able to

Recognize the variety of constraints that can affect a project, making scheduling and planning difficult.

Understand how to apply resource-loading techniques to project schedules to identify potential resource overallocation situations.

Apply resource-leveling procedures to project activities over the baseline schedule using appropriate prioritization heuristics.

Follow the steps necessary to effectively smooth resource requirements across the project life cycle.

Apply resource management within a multiproject environment.

12-0

3Slide4

FIGURE 12.1 Nissan’s LEAF

12-0

Types of ConstraintsTime

Resource

Mixed

12-0

5Slide6

FIGURE 12.3

Resource-Loading Chart Demonstrating Overallocation

12-0

6Slide7

FIGURE 12.5

Resource Usage Table

12-0

7Slide8

FIGURE 12.6

Example of Resource Usage Table with Overallocation

12-0

8Slide9

Resource Leveling (Smoothing)A

multivariate

combinatorial

problemObjectivesTo determine the resource requirements so that they will be available at the right timeTo allow each activity to be scheduled with the

smoothest possible transition

across resource usage levels

12-09Slide10

Prioritization Rules for LevelingSmallest amount of

slack

Smallest

duration

Lowest ID number (FCFS)Greatest number of

successor tasks

Requiring the

most resources12-010Slide11

General Procedure for LevelingCreate a project activity

network diagram

Develop resource

loading table

Determine activity late finish dates

Identify resource

over allocation

Level the resource loading table12-

11Slide12

Creating Resource Loading Charts (1/4)

Display the amount of resources required as a function of time.

0 A 4 Res = 6

4 B 5 Res = 2

5 D 9 Res = 7

9 E 11 Res = 3

4 C 7 Res = 2

11 F 12 Res = 6

Start with a network diagram

12-

12Slide13

Creating Resource Loading Charts 2/4

Activity

Resource

Duration

Slack

Produce a table that shows the duration, early start, late finish, slack, and resource(s) required for each activity.

12-

13Slide14

Creating Resource Loading Charts 3/4

Project Days

Resources

Draw an initial loading chart with each activity scheduled at its ES.

Resource imbalance

12-

14Slide15

Creating Resource Loading Charts 4/4

Rearrange activities within their slack to create a more level profile. Splitting C creates a more level project.

Project Days

Resources

12-

15Slide16

Key Parameters in Multi-Project Environments

Schedule slippage

Resource utilization

In-process inventory

12-

16Slide17

Prioritizing Resource Allocations in Multi-Project EnvironmentsFirst come

first served

Greatest resource

demand

Greatest resource utilizationMinimum late finish time

Mathematical programming

12-

17Slide18

Chapter 13Project Evaluation

and Control

13-0

Chapter 13 Learning Objectives

After completing this chapter, students will be able to

Understand the nature of the control cycle and four key steps in a general project control model.

Recognize the strengths and weaknesses of common project evaluation and control methods.

Understand how Earned Value Management can assist project tracking and evaluation.

Use Earned Value Management for project portfolio analysis.

Understand behavioral concepts and other human issues in evaluation and control.Understand the advantages of Earned Schedule methods for determining project schedule variance, schedule performance index, and estimates to completion.

13-0

19Slide20

FIGURE 13.1 Power Generation at the Te Apiti Wind Farm

13-0

The Project Control Cycle

FIGURE 13.2

13-0

21Slide22

Project S-Curves

FIGURE 13.3

13-0

22Slide23

Project Sierra’s S-Curve Showing Negative Variance

13-0

FIGURE 13.4

Milestone Analysis Milestones are

events or stages

of the project that represent a

significant accomplishment.

Milestones

show completion

of important steps

signal the team and suppliers

can

motivate

the team

offer

reevaluation

points

help

coordinate

schedules

identify

key review gates

delineate

work packages

13-0

24Slide25

FIGURE 13.5

Gantt Chart with Milestones

13-0

25Slide26

FIGURE 13.6

Assessing Project Blue’s Status Using Tracking Gantt Chart

13-0

FIGURE 13.7

Tracking Gantt with Project Activity Deviation

Project status is updated by linking task completion to the schedule baseline

13-

Earned Value Management

Schedule

Cost

Performance

Tracking Control Charts

Cost

Performance

Schedule

Earned Value

Project S-Curves

Cost

Performance

Schedule

13-

28Slide29

Earned Value TermsPlanned Value (PV)

Earned Value (EV)

Actual Cost of work performed (AC)

Schedule Performance Index (SPI)

Cost Performance Index (CPI)Budgeted cost at Completion (BAC)

13-

29Slide30

Steps in Earned Value Management

Clearly define each activity

including its resource needs and budget

Create usage schedules

for activities and resources

Develop a time-phased budget (PV)Total the actual costs

of doing each task (AC)

Calculate

both the budget variance (CV) and schedule variance (SV)

13-

30Slide31

FIGURE 13.11

Project Baseline, Using Earned Value

13-

31Slide32

FIGURE 13.12

Earned Value Milestones

13-

Earned Value Example

Activity

Jan

Feb

Mar

April

Plan

Value

Staffing

100

Blueprint

Prototype

Design

Mon Plan

∑

Cmltv

Mon Act

Cmltv Act

Planned Value 38=15+10+10+3

Earned Value 30=15+8+6+1

Value 8=80%(10)

Cumulative 40=8+11+8+13

13-

33Slide34

Earned Value Example

Schedule Variances

Planned Value (PV) = 38 = 15+10+10+3

Earned Value (EV) = 30 = 15+8+6+1

Schedule Performance Index = .79 = 30/38 = EV/PV

Estimated Time to Completion = (1/.79)x4=5

Cost Variances

Actual Cost of Work Performed (AC) = 40 = 8+11+8+13Cost Performance Index = .75 = 30/40 = EV/AC

Estimated Cost to Completion = 50.7 = (1/.75)x38

13-

34Slide35

FIGURE 13.16

Earned Value Report for Project Atlas on March 7

13-

35Slide36

Earned Value Performance Metrics

13-

FIGURE 13.18 Source: Lipke (2003)Slide37

Completion Values in EVMAccurate

and

up-to-date

information is

critical in the use of EVM0/100 Rule50/50 Rule

Percentage Complete Rule

13-

37Slide38

Human Factors in Project Evaluation & Control

Optimistic progress reports

Level of detail

Process evaluation

Non-technical performance measurement

13-

38Slide39

Critical Success Factors in theProject Implementation Profile

Project mission

Top management support

Project plans & schedules

Client consultation

Personnel

Technical tasks

Client acceptanceMonitoring & feedback

Communication channels

Troubleshooting

13-

39Slide40

Summary

Understand the nature of the control cycle and four key steps in a general project control model.

Recognize the strengths and weaknesses of common project evaluation and control methods.

Understand how Earned Value Management can assist project tracking and evaluation.

Use Earned Value Management for project portfolio analysis.

Understand behavioral concepts and other human issues in evaluation and control.

Understand the advantages of Earned Schedule methods for determining project schedule variance, schedule performance index, and estimates to completion.

13-

40Slide41

SummaryRecognize the variety of constraints that can affect a project, making scheduling and planning difficult.

Understand how to apply resource-loading techniques to project schedules to identify potential resource overallocation situations.

Apply resource-leveling procedures to project activities over the baseline schedule using appropriate prioritization heuristics.

Follow the steps necessary to effectively smooth resource requirements across the project life cycle.

Apply resource management within a multiproject environment.

12-

41Slide42

SummaryUnderstand the differences between common cause and special cause variation in organizations.

Recognize the three ways in which project teams inflate the amount of safety for all project tasks.

Understand the four ways in which additional project task safety can be wasted.

Distinguish between critical path and critical chain project scheduling techniques.

Understand how critical chain methodology resolves project resource conflicts.

Apply critical chain project management to project priorities

11-

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