Managing Triple Constraint

Project Scope ManagementProject Cost ManagementProject Time Management

Aldo Arecco Mayo

Senior Project Manager

Triple Constraint

Quadruple Constraint

Triple Constraint Process

Top five reasons why project management fails TOP FIVE REASONS- TECH PROJECT

Failure to Manage Culture Change Lack of Commitment Pass Failures Inadecuate Planning Is not about the tools!

Project Scope Management The processes required to ensure that the project

includes all the work required, and only the work required, to complete the project successfully

Why Do We Manage Scope? Can’t manage schedule and budget if scope is out of

control (Triple Constraint) Scope docs are used to manage expectations

Scope Management Key Points What is scope management

Checking to ensure that one is completing work Saying No to additional work not in the charter Preventing extra work

Work Breakdown Structure (WBS) Foundation of the project, all planning and controlling

is based on the WBS Identifies all work to be performed, if it is not in the

WBS it does not need to be done Graphical picture of work

Scope Management Key Points

TIME

COSTSCOPE

QualityWBS

Estimating

Network Diagrams

Staffing

Risk

How Do We Manage Scope? Five processes

Scope Planning Scope Definition Create WBS Scope Verification Scope Control

Scope Planning

Scope Definition

Create WBS

Scope Verification

Scope Control

Scope Definition

• Change Control System• Documentation, tracking, and approvals

required to change project scope• Configuration Management System

• Documentation, tracking, and approvals required to change product scope

• Management by Objectives (MBO)• Establish unambiguous and realistic

objectives• Periodically evaluate if objectives are being

met• Take corrective action

Project Time Management

• “The processes required to accomplish timely completion of the project”

• Why Time Management?1. Part of triple constraint, can’t manage one

without the others (scope, time, and quality) 2. Second hardest section on the test behind

integration

How Do We Manage Time?

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

Activity Definition

Activity Sequencing

Activity Resource Estimating

Activity Duration Estimating

Schedule Development

Schedule Control

Activity DefinitionEnterprise Environmental Factors

Organizational Process Assets

Project Scope Statement

Decomposition

Templates

Rolling wave planning

Expert judgment

Planning component

Inputs OutputsTools & Techniques

Work Breakdown StructureWBS Dictionary

Project Management Plan

Activity List

Activity Attributes

Milestone List

Requested Changes

Activity Definition

Activity Sequencing

Activity Resource Estimating

Activity Duration Estimating

Schedule Development

Schedule Control

Activity Definition

• Rolling Wave Planning – Progressive planning where near term work is broken down in detail and distant work is kept at a higher WBS level

• Planning Component – WBS items that cannot be broken down into work packages are put in a:

• Control Account – High level planning dates for the scope to be defined

• Planning Package – Package includes scope to be completed but no activities

Activity Sequencing

Project Scope Statement

Activity List

Activity Attributes

Precedence diagramming method (PDM)

Arrow diagramming method (ADM)

Schedule network templates

Dependency determination

Applying leads and lags

Inputs OutputsTools & Techniques

Milestone List

Approved Change Requests

Project Schedule Network Diagrams

Activity List Updates

Activity Attributes Updates

Requested Changes

Activity Definition

Activity Sequencing

Activity Resource Estimating

Activity Duration Estimating

Schedule Development

Schedule Control

Precedence Diagramming Method (PDM)

• Commonly called Activity on Node (AON), most commonly used sequencing method

• Boxes are used to represent tasks with arrows used for dependencies

• Four types of dependencies Finish to Start – Task must finish before next one

can start Finish to Finish – One task must finish before the

other can finish Start to Start – One task must start before the

other can start Start to Finish – One task must start before the

other can finishActivity

A

Activity

B

NodeDependency

Arrow Diagramming Method (ADM)

• Commonly called Activity on Arrow (AOA)• Boxes are used to represent dependencies with arrows used for

tasks• Only Finish to Start relationships• Can use “dummy” activities

• Used for CPM and PERT estimating methods

Task

Dependency

Activity

A

Method Comparison

StartBuild Foundation

Build Walls

Install Grass

Build Roof Finish

Start Build Foundation

Build Walls

Build Roof

Finish

Install Grass

PDM (AON) Method

ADM (AOA) Method

Activity Resource Estimating

Enterprise Environmental Factors

Organizational Process Assets

Activity List

Expert judgment

Alternatives analysis

Published estimating data

Project management software

Bottom-up estimating

Inputs OutputsTools & Techniques

Activity AttributesResource Availability

Activity Resource Requirements

Activity Attributes Updates

Resource Breakdown Structure

Resource Calendar Updates

Activity Definition

Activity Sequencing

Activity Resource Estimating

Activity Duration Estimating

Schedule Development

Schedule Control

Project Management Plan

Requested Changes

Activity Duration Estimating

Enterprise Environmental FactorsOrganizational Process Assets

Project Scope Statement

Expert judgment

Analogous estimating

Parametric estimating

Three-point estimates

Reserve Analysis

InputsOutputs

Tools & Techniques

Activity List

Activity Resource Requirements

Activity Duration Estimates

Activity attributes updates

Activity Definition

Activity Sequencing

Activity Resource Estimating

Activity Duration Estimating

Schedule Development

Schedule Control

Resource Calendar

Activity Attributes

Project Management Plan

• Risk Register• Activity Cost

Estimates

Schedule Development

Enterprise Environmental FactorsOrganizational Process Assets

Project Scope Statement

Schedule network analysis

Critical path method

Schedule compression

What-if analysis

Resource leveling

Critical chain method

Project management software

Applying calendars

Adjustable leads and lags

Schedule model

Inputs Outputs

Tools & Techniques

Activity List

Activity Resource Requirements

Schedule baseline

Activity attributes updates

Activity Definition

Activity Sequencing

Activity Resource Estimating

Activity Duration Estimating

Schedule Development

Schedule Control

Resource Calendar

Activity Attributes

Project Management Plan

• Risk Register• Activity Cost

Estimates

Project schedule

Schedule model data

Resource requirements updates

Requested changesProject management plan updates

• Schedule management plan updates

Project calendar updates

Schedule Control

Schedule Management Plan

Schedule Baseline

Schedule network analysis

Critical path method

Schedule compression

What-if analysis

Resource leveling

Critical chain method

Project management software

Applying calendars

Adjustable leads and lags

Schedule model

Inputs

Outputs

Tools & Techniques

Performance reports

Schedule baseline updates

Requested changes

Activity Definition

Activity Sequencing

Activity Resource Estimating

Activity Duration Estimating

Schedule Development

Schedule Control

Approved Change Requests

Schedule model data updates

Performance measurements

Organizational process assets updates

Activity list updates

Recommended corrective actions

Activity attribute updatesProject Management Plan updates

Other Important Terms

• Lag – Inserted waiting time between tasks• Free Slack – Available delay time without

impacting start of successor• Total Slack – Amount of time a task can be

delayed without delaying project completion date

• Project Slack – Amount of time a project can be delayed without impacting completion dates imposed by client

• Crashing – Adding resources to critical path items to shorten schedule

• Fast Tracking – Performing critical path tasks in parallel rather than series

• Resource Leveling – Adjusting completion dates of tasks

Project Cost Management

Cost is a resource sacrificed or foregone to achieve a specific objective, or something given up in exchange.

Costs are usually measured in monetary units, such as dollars or Taka’s.

Project Cost Management includes the processes required to ensure that the project is completed within an approved budget.

Project Cost Management Processes

Cost estimating: Developing an approximation or estimate of the costs of the resources needed to complete a project.

Cost budgeting: Allocating the overall cost estimate to individual work items to establish a baseline for measuring performance.

Cost control: Controlling changes to the project budget.

Basic Principles of Cost ManagementMost members of an executive board have a better understanding and are more interested in financial terms than IT terms, so IT project managers must speak their language.

Profits are revenues minus expenses.

Life cycle costing considers the total cost of ownership, or development plus support costs, for a project.

Cash flow analysis determines the estimated annual costs and benefits for a project and the resulting annual cash flow.Tangible costs or benefits are those costs or benefits that an organization can easily measure in dollars. Intangible costs or benefits are costs or benefits that are difficult to measure in monetary terms.Direct costs are costs that can be directly related to producing the products and services of the project. Indirect costs are costs that are not directly related to the products or services of the project, but are indirectly related to performing the project.Sunk cost is money that has been spent in the past; when deciding what projects to invest in or continue, you should not include sunk costs.

Earned value ManagementThe earned value Management involves developing these key values for each schedule activity, work package, or control account:

Planned value (PV). PV is the budgeted cost for the work scheduled to be completed on an activity or WBS component up to a given point in time. Earned value (EV). EV is the budgeted amount for the work actually completed on the schedule activity or WBS component during a given time period. Actual cost (AC). AC is the total cost incurred in accomplishing work on the schedule activity or WBS component during a given time period. This AC must correspond in definition and coverage to whatever was budgeted for the PV and the EV (e.g., direct hours only, direct costs only, or all costs including indirect costs). Cost variance (CV). CV equals earned value (EV) minus actual cost (AC). The cost variance at the end of the project will be the difference between the budget at completion (BAC) and the actual amount spent. Formula: CV= EV - AC Schedule variance (SV). SV equals earned value (EV) minus planned value (PV). Schedule variance will ultimately equal zero when the project is completed because all of the planned values will have been earned. Formula: SV = EV - PV These two values, the CV and SV, can be converted to efficiency indicators to reflect the cost and schedule performance of any project. Cost performance index (CPI). A CPI value less than 1.0 indicates a cost overrun of the estimates. A CPI value greater than 1.0 indicates a cost underrun of the estimates. CPI equals the ratio of the EV to the AC. The CPI is the most commonly used cost-efficiency indicator. Formula: CPI = EV/AC Schedule performance index (SPI). The SPI is used, in addition to the schedule status to predict the completion date and is sometimes used in conjunction with the CPI to forecast the project completion estimates. SPI equals the ratio of the EV to the PV. Formula: SPI = EV/PV

Questions ?

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