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M o d u le T h r e e : P r o je c t S c o p e , P la n n in g , a n d T im e M a n a g e m e n t
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B e fo re th e y c a n b e g in to ta c k le a p ro je c t, p ro je c t te a m m e m b e rs a n d k e y sta k e h o ld e rs m u st
h a v e a se n se o f w h a t th e p ro je c t's re su lts w ill lo o k lik e a n d w h e n th o se re su lts a re e x p e c te d .
A n a b ility to u n d e rsta n d th e sc o p e o f th e p ro je c t, to a p p ro p ria te ly p la n th e p ro je c t's w o rk , a n d
to c o rre c tly stru c tu re its sc h e d u le a re v ita lly im p o rta n t to h e lp p ra c titio n e rs m e e t th e
re q u ire m e n ts o f th e p ro je c t.
In a p ro je c t's P la n n in g sta g e , p ro je c t p ra c titio n e rs w ill g e n e ra te a c o m p re h e n siv e p ro je c t
m a n a g e m e n t p la n to sh o w h o w th e y 'll c o m p le te p ro je c t w o rk a n d h o w th e y 'll d e liv e r th e
re su lts th e p ro je c t w a s d e sig n e d to a c h ie v e .
T h e y w ill u se th e p ro je c t c h a rte r, th e sta k e h o ld e r list, a n d th e m ile sto n e c h a rt fro m th e
p ro je c t's In itia tin g sta g e a s th e fo u n d a tio n fo r c re a tin g th e p ro je c t's d e liv e ra b le s. T h e y w ill
d e sig n d o c u m e n ts to sh o w w h a t w o rk th e p ro je c t e n ta ils, to tra c k p ro je c t p ro g re ss, a n d to
u n c o v e r a n d m o n ito r th e risk s th a t c o u ld a ffe c t th e p ro je c t. T h e y w ill c o n n e c t th e p e o p le in
th e p ro je c t to th e p ro je c t w o rk , a n d th e y 'll d e v e lo p a stra te g y to m o n ito r c h a n g e s a n d tra c k
c o n tra c t p e rfo rm a n c e a c ro ss th e p ro je c t.
B y a p p ly in g e ffe c tiv e p ro je c t sc o p e , p la n n in g , a n d tim e m a n a g e m e n t p ra c tic e s, p ro je c t
p a rtic ip a n ts w ill b e a b le to d e liv e r a p p ro p ria te re su lts in th e tim e fra m e e x p e c te d to sa tisfy th e
p ro je c t's o b je c tiv e s a n d to m e e t its sta k e h o ld e rs' n e e d s.
L e a r n in g O b je c t iv e s
A fte r c o m p le tin g th is m o d u le , y o u sh o u ld b e a b le to :
1 . D e sig n a n e ffe c tiv e sc o p e sta te m e n t to c re a te b o u n d a rie s fo r th e p ro je c t
2 . D e sc rib e th e c h a ra c te ristic s a n d in p u ts to a c o m p re h e n siv e p ro je c t p la n
3 . D e sc rib e th e p u rp o se o f a w o rk b re a k d o w n stru c tu re a n d h o w it su p p o rts th e p ro je c t
m a n a g e m e n t p la n
4 . D e m o n stra te h o w a p ro je c t sc h e d u le n e tw o rk d ia g ra m is c re a te d
P la n n in g t h e P r o je c t
A c o m m o n c h a lle n g e th a t p ro je c t p ra c titio n e rs fa c e is re sistin g th e te m p ta tio n to m o v e
d ire c tly fro m in itia tin g th e ir p ro je c t in to e x e c u tin g it— a sh o rtc u t c o m m o n ly d e sc rib e d a s
"R e a d y , F ire , A im ." Ju m p in g to o q u ic k ly in to th e E x e c u tin g sta g e c a n e n d a n g e r a p ro je c t a n d
lim it its c h a n c e s o f su rv iv a l a n d su c c e ss. D o in g p ro je c t p la n n in g a n d d e v e lo p in g a g o o d p ro je c t p la n is c ritic a l to a v o id th e c o m m o n
p ro b le m s— lik e sc o p e c re e p , u n c le a r w o rk a ssig n m e n ts, a n d u n c o n tro lle d risk — th a t c o u ld
o c c u r la te r in th e p ro je c t. T h e tru e b e n e fit o f p la n n in g is th a t it im p ro v e s th e c h a n c e s o f
g e ttin g th e p ro je c t to w h e re it n e e d s to g o .
P la n n in g a p ro je c t is m u c h m o re th a n fillin g o u t fo rm s a n d te m p la te s. T h e a c t o f g a th e rin g th e
in fo rm a tio n n e e d e d to p ro d u c e g o o d p ro je c t p la n s w ill h e lp p a rtic ip a n ts u n d e rsta n d th e
p ro je c t in m u c h g re a te r d e ta il th a n th e y w o u ld b y d iv in g d ire c tly in to p ro je c t w o rk .
T a ilo r in g P la n s
B u t n o m a tte r h o w w e ll a p ro je c t is p la n n e d , th e p la n w ill n o t b e "w a te rtig h t"; c h a n g e s w ill
o c c u r o n th e p ro je c t. G o o d p la n n in g w ill h e lp p ra c titio n e rs a v o id m a n y p ro b le m s, b u t n o t a ll
o f th e m ; a situ a tio n m ig h t c h a n g e u n e x p e c te d ly o r a n u n fo re se e n p ro b le m m a y a rise .
F u rth e rm o re , e v e ry p ro je c t is u n iq u e . W h a t w o rk e d w e ll o n o n e p ro je c t m a y n o t w o rk so w e ll
o n a n o th e r.
B e c a u se e a c h p ro je c t is d iffe re n t a n d b e c a u se c h a n g e s w ill o c c u r th a t w ill n e e d to b e d e a lt
w ith , th e p ro je c t p la n w ill n e e d to b e ta ilo re d to th e p ro je c t a n d a llo w e d to e v o lv e to m e e t th e
d e m a n d s o f th e p ro je c t. B y k e e p in g th e p la n u p -to -d a te p ro je c t p a rtic ip a n ts w ill b e in a b e tte r
p o sitio n to a d ju st th e p ro je c t to c h a n g e s a s th e y o c c u r.
C r e a tin g a n A p p r o p r ia te P la n
T h e P la n n in g p o rtio n o f a p ro je c t is re a lly a b o u t m a k in g a p la n th a t w ill d e fin e a n d g o v e rn th e
w o rk . B u t in d o in g so , p ro je c t le a d e rs w ill n e e d to b e su re to d e v e lo p th e p la n to a n
a p p ro p ria te le v e l. T o o m u c h p la n n in g c a n b o g d o w n a p ro je c t w ith to o m a n y p la n n in g
a c tiv itie s a n d c o u ld c a u se th e p ro je c t te a m to sp e n d to o m u c h tim e a w a y fro m d o in g w h a t th e
p ro je c t is d e sig n e d fo r— d e liv e rin g re su lts. B u t to o little p la n n in g c a n c a u se c o n fu sio n if th e
te a m fa ils to u n c o v e r e n o u g h d e ta il to c o m p le te th e w o rk .
W h a te v e r a m o u n t o f p la n n in g th e p ro je c t n e e d s, it is v e ry im p o rta n t to in c lu d e th e p e o p le
w h o d o th e w o rk in p la n n in g th e w o rk . T h e p e o p le w h o d o th e w o rk a re th e o n e s th a t k n o w
th e m o st a b o u t it— th e y 're th e o n e s w h o w ill b e a b le to u n c o v e r risk s th a t o th e rs m a y n o t
th in k o f o r p ro v id e m o re -a c c u ra te e stim a te s fo r th e p ro je c t. A n d if th e y p a rtic ip a te in th e
c re a tio n o f th e p ro je c t p la n , th e y a re m o re lik e ly to b u y -in to it to a g re a te r d e g re e .
T h e P r o je c t P la n
T h e c e n tra l c o m p o n e n t o f th e P la n n in g p h a se is th e p ro je c t p la n . A s th e p ro je c t te a m d e v e lo p s
th e p ro je c t p la n , th e y w ill d o c u m e n t th e a c tio n s a n d a c tiv itie s th e y 'll n e e d to d e fin e , p re p a re ,
in te g ra te , a n d c o o rd in a te a ll o f th e p ro je c t c o m p o n e n ts.
T h e p ro je c t p la n sh o u ld in c lu d e th e fo llo w in g ite m s to h e lp m a n a g e th e ta sk s, sc o p e , tim e ,
c o sts, risk s, a n d c h a n g e s fo r th e p ro je c t: A p r o je c t sc o p e sta te m e n t
T h e sc o p e sta te m e n t d e sc rib e s w h a t is in sc o p e a n d o u t o f sc o p e fo r th e p ro je c t— in o th e r
w o rd s, w h a t th e p ro je c t w ill c o n ta in a n d w h a t it w o n 't c o n ta in . T h e p ro je c t c h a rte r fra m e s
th e p ro je c t's sc o p e so it sh o u ld b e v e ry h e lp fu l in d e v e lo p in g th e sc o p e sta te m e n t. T h e
sc o p e sta te m e n t, a lo n g w ith th e w o rk b re a k d o w n stru c tu re , se rv e s a s th e sc o p e b a se lin e
fo r a n y q u e stio n s a b o u t p ro je c t sc o p e .
A w o r k b r e a k d o w n str u c tu r e
T h e w o rk b re a k d o w n stru c tu re (W B S ) is a h ie ra rc h ic a l b re a k d o w n o f a ll o f th e w o rk
n e e d e d to c o m p le te a p ro je c t. W o rk is b ro k e n d o w n in to sm a lle r p ie c e s th a t c a n th e n b e
a ssig n e d to in d iv id u a ls o r g ro u p s fo r c o m p le tio n . A c o m p le te d W B S w ill sh o w a ll o f th e
p ro je c t d e liv e ra b le s in c lu d e d in th e p ro je c t a n d w ill e n h a n c e p la n n in g a c tiv itie s b y
e n su rin g th a t w o rk is n o t m isse d .
A n e tw o r k d ia g r a m
A n e tw o rk d ia g ra m a c ts a s th e sc h e d u le fo r th e p ro je c t. It is m o re d e ta ile d th a n th e
m ile sto n e c h a rt in th a t it sh o w s th e se q u e n c e o f p ro je c t a c tiv itie s a n d th e d e p e n d e n c ie s
a m o n g th o se a c tiv itie s. B e c a u se th e n e tw o rk d ia g ra m w ill se rv e a s th e sc h e d u le b a se lin e ,
it is im p o rta n t to m a k e su re th a t a ll o f th e n e c e ssa ry a c tiv itie s a re in c lu d e d in th e d ia g ra m .
R e v ie w in g th e m ile sto n e c h a rt fro m th e p ro je c t's In itia tin g sta g e w ill h e lp e n su re th a t
im p o rta n t a c tiv itie s a n d d u e d a te s a re n o t m isse d .
C h a n g e m a n a g e m e n t p la n s
T h e p ro je c t p la n sh o u ld in c lu d e th o u g h ts o n h o w a n y c h a n g e re q u e sts o r u n e x p e c te d
c h a n g e s th a t m a y a ffe c t th e p ro je c t w ill b e m a n a g e d . P ra c titio n e rs w ill n e e d to d e c id e
w h o w ill c o m p ile th e se re q u e sts fo r c h a n g e s to th e p ro je c t, h o w th e y w ill a n a ly z e th e
im p a c t o f th o se c h a n g e s, a n d w h o is re sp o n sib le fo r a c c e p tin g o r re je c tin g th o se re q u e sts.
A r e sp o n sib ility a ssig n m e n t m a tr ix
A re sp o n sib ility a ssig n m e n t m a trix (R A M ) h e lp s to a ssig n re sp o n sib ility fo r p ro je c t w o rk
to p ro je c t p a rtic ip a n ts. T h e R A M w ill e n su re th a t th e p ro je c t te a m k n o w s w h o is
re sp o n sib le fo r th e c o m p le tio n o f sp e c ific ta sk s a s w e ll a s w h o n e e d s to b e in fo rm e d o f
p ro b le m s a n d p ro g re ss.
A r isk r e g iste r
T h e te a m w ill u se a risk re g iste r to tra c k p ro je c t risk s, th e p la n n e d re sp o n se s fo r th o se
risk s, a n d th e re su lts o f im p le m e n tin g th o se re sp o n se s. R isk re g iste rs a re im p o rta n t
d o c u m e n ts th a t m u st b e re v ie w e d a n d u p d a te d re g u la rly to e n su re th a t p ro je c ts p ro c e e d
w ith m in im a l d e la y s a n d d isru p tio n s.
A b u d g e t
T h e b u d g e t is a n a g g re g a tio n o f th e e x p e c te d c o sts to c o m p le te th e p ro je c t. P ro je c t
p a rtic ip a n ts w ill c o m p ile e stim a te s o f c o sts in to a n S -c u rv e th a t w ill a c t a s th e c o st b a se lin e ; re su lts c a n th e n b e c o m p a re d to th e S -c u rv e to e n su re th a t th e p ro je c t sta y s
w ith in p ro je c t c o st b o u n d a rie s.
P la n s fo r d e a lin g w ith c o n tr a c ts a n d v e n d o r s
T h e p ro je c t le a d e rs w ill n e e d to d e c id e if a d d itio n a l re so u rc e s to c o m p le te p ro je c t w o rk
a re n e c e ssa ry a n d , if so , h o w th o se se rv ic e s w ill b e p ro c u re d . T h e se le a d e rs sh o u ld a lso
c o n sid e r th e ty p e s o f c o n tra c ts th a t w ill w o rk b e st a n d d e v e lo p a stra te g y fo r m o n ito rin g
c o m p lia n c e .
T h e M a jo r E le m e n t s o f a P r o je c t P la n
T h e p la n c re a te d fo r th e p ro je c t sh o u ld m a tc h th e n e e d s o f th e p ro je c t so it is im p o rta n t to n o t
lim it th e p ro je c t p la n to o n ly th e ite m s liste d a b o v e . T h e p ro je c t te a m w ill n e e d to re fe re n c e
th is p la n a s th e y e x e c u te th e p ro je c t so it sh o u ld in c lu d e a s m u c h in fo rm a tio n a s n e c e ssa ry to
a d e q u a te ly sh a p e th e p ro je c t. If m o re in fo rm a tio n is n e e d e d in th e p la n to su c c e ssfu lly
c o m p le te th e p ro je c t, th e te a m sh o u ld fe e l fre e to a d d it to th e p la n .
T h e A 3
S o m e p ro je c t te a m s, e sp e c ia lly
th o se th a t fo llo w L e a n
p ra c tic e s, c h o o se to c o m b in e
e le m e n ts o f th e p ro je c t c h a rte r
a n d p ro je c t p la n in to a sin g le
d o c u m e n t c a lle d a n A 3 . T h e
A 3 in c lu d e s b a c k g ro u n d
in fo rm a tio n a n d p ro je c t g o a ls
(m u c h lik e th e p ro je c t c h a rte r)
a s w e ll a s p ro p o se d
c o u n te rm e a su re s a n d a p la n to re a c h th e g o a l (lik e th e p ro je c t p la n ). T h e A 3 is h ig h ly
a d a p ta b le a n d th e a c t o f g a th e rin g in fo rm a tio n a b o u t th e p ro b le m a t h a n d is a s im p o rta n t a s
th e d o c u m e n t itse lf. U s in g T o o ls a n d T e c h n iq u e s t o P la n Y o u r P r o je c t
P la n n in g is w h e re th e p ro je c t m a n a g e r d e fin e s th e im p o rta n t th in g s th a t w ill n e e d to b e
a c c o m p lish e d o n th e p ro je c t a n d e x p la in s h o w th o se th in g s w ill g e t a c c o m p lish e d . It ta k e s a
sig n ific a n t a m o u n t o f e ffo rt to d e v e lo p a n e ffe c tiv e stra te g y b u t g iv in g th is p o rtio n o f th e
p ro je c t e x tra e ffo rt u p fro n t w ill h e lp a v o id th e n e e d fo r c o stly a n d tim e -c o n su m in g c h a n g e s
a n d re w o rk la te r o n in th e p ro je c t.
A s th e p ro je c t is p la n n e d , p ro je c t p ra c titio n e rs n e e d to b e su re to re v ie w th e le sso n s le a rn e d
fro m p re v io u s p ro je c ts o n c e a g a in to se e if th e re a re th in g s c a n b e a d a p te d — o r if th e re a re
th in g s th a t sh o u ld b e a v o id e d — in th e e x e c u tio n o f th e p ro je c t.
P ro je c t p a rtic ip a n ts w ill a lso n e e d to c o n sid e r h o w v a rio u s e le m e n ts— c o m m u n ic a tio n s,
q u a lity , risk s, p ro c u re m e n t, h u m a n re so u rc e s, a n d sc o p e — a ll c o n trib u te to th e id e n tific a tio n
o f b a se lin e s fo r th e sc h e d u le , b u d g e t, a n d sc o p e o f th e p ro je c t.
A t a m in im u m , th e p ro je c t p la n sh o u ld in c lu d e th e to o ls d isc u sse d in th e la st a ssig n m e n t:
th e sc o p e sta te m e n t
th e w o rk b re a k d o w n stru c tu re
th e risk re g iste r
th e re sp o n sib ility a ssig n m e n t m a trix
th e n e tw o rk d ia g ra m
b u d g e t b a se lin e s
c h a n g e m a n a g e m e n t p la n s
c o n tra c tin g a n d v e n d o r m a n a g e m e n t p la n s
In m a n a g in g p ro je c ts, p ra c titio n e rs w ill n e e d to b e c o m e fa m ilia r w ith a n d to u tiliz e th e se
to o ls to m a k e p la n n in g th e ir p ro je c t e a sie r. T h e se to o ls w ill b e e x p lo re d in g re a te r d e p th in
th e su b se q u e n t a ssig n m e n ts o f th is m o d u le a s w e e x p la in h o w th e y c a n b e u se d to e x e c u te a n d
m o n ito r p ro je c ts.
P la n n in g fr o m a n A g ile P e r s p e c t iv e
T h e tra d itio n a l a p p ro a c h to p ro je c t m a n a g e m e n t w ith its fo c u s o n d o c u m e n ta tio n a n d
p ro c e d u re s c a n b e m o d ifie d a t le a st p a rtia lly if th e p ro je c t m a n a g e r u se s a fe w o f th e "lig h t"
A g ile p ro je c t m a n a g e m e n t te c h n iq u e s.
A n A g ile a p p ro a c h to p ro je c t m a n a g e m e n t fo c u se s o n p e o p le a n d in te ra c tio n s, ra th e r th a n
d o c u m e n ts a n d p ro c e d u re s. A b a sic te n e t o f A g ile is th a t c o n sta n t in te ra c tio n a n d
c o m m u n ic a tio n o n th e te a m w ill p ro d u c e a m o re -flu id p ro je c t e n v iro n m e n t th a t c a n a d a p t to
c h a n g e m o re q u ic k ly th a n n o n -A g ile p ro je c t m a n a g e m e n t p ra c tic e s.
T h e c h a lle n g e o f u sin g a n A g ile a p p ro a c h to P la n n in g , a s w e ll a s in o th e r sta g e s o f th e
p ro je c t, is in b a la n c in g th e le v e l o f d e ta il c a p tu re d in th e p ro je c t d o c u m e n ts a n d a c tiv itie s. If
p ro je c t p a rtic ip a n ts sp e n d to o m u c h tim e a n d e ffo rt tra c k in g m in u te d e ta ils, th e y risk sh iftin g
fo c u s a w a y fro m d e liv e rin g re su lts. If n o t e n o u g h a tte n tio n is p a id to d e ta il a n d p ro je c t
p la n n in g is in su ffic ie n t, th e y m a y n o t h a v e e n o u g h in fo rm a tio n a v a ila b le to c o m p le te w o rk
w e ll. D e fin in g S c o p e T h r o u g h t h e S c o p e S t a t e m e n t
A sc o p e sta te m e n t d e fin e s a p ro je c t b y d e ta ilin g th e p ro je c t's m a jo r d e liv e ra b le s, its k e y
o b je c tiv e s, a n d th e w o rk n e e d e d to m e e t th o se o b je c tiv e s. T h e sc o p e sta te m e n t w ill d e sc rib e
th e c o m p le x ity a n d m a g n itu d e o f th e p ro je c t a n d w ill a c c o u n t fo r a ll th e w o rk , tim e , a n d c o st
n e e d e d to c o m p le te th e p ro je c t su c c e ssfu lly . A s w o rk p ro g re sse s a n d n e w issu e s a rise , th e
sc o p e sta te m e n t w ill se rv e a s a c o n sta n t re fe re n c e fo r fu tu re p ro je c t d e c isio n s.
S c o p e sta te m e n ts m a y in c lu d e o th e r e le m e n ts a s w e ll, a s su m m a riz e d in th e c h a rt b e lo w :
O th e r e le m e n ts o f a s c o p e s ta te m e n t
P r o d u c t
sc o p e
d e sc r ip tio n
T h e re q u ire m e n ts o f th e p ro d u c t a s d e sc rib e d in th e p ro je c t c h a rte r
A c c e p ta n c e
c r ite r ia
T h e p ro c e ss a n d c rite ria fo r a c c e p tin g c o m p le te d p ro d u c ts
D e liv e r a b le s A list o f th e o u tp u ts re q u ire d fo r p ro je c t su c c e ss. D e liv e ra b le s m a y in c lu d e
d o c u m e n ta tio n th a t w ill h e lp th e te a m c o m p le te th e p ro je c t.
E x c lu sio n s A sp e c ific sta te m e n t th a t e x p la in s w h a t is n o t in c lu d e d in th e p ro je c t
C o n str a in ts A n y th in g th a t m a y lim it th e p ro je c t (in c lu d in g b u d g e t lim ita tio n s o r
im p o se d d a te s)
A ssu m p tio n s A list o f th e b e lie fs u n d e rly in g th e p ro je c t a n d th e ir p o te n tia l im p a c t if
th e y p ro v e to b e fa lse
B y d e lin e a tin g w h a t n e e d s to b e a c c o m p lish e d , th e sc o p e sta te m e n t— a lo n g w ith th e w o rk
b re a k d o w n stru c tu re — w ill se rv e a s th e sc o p e b a se lin e , w h ic h w ill h e lp to d e te rm in e if a
p ro je c t is o n tra c k a n d c o n tin u in g to m e e t th e o b je c tiv e s fo r w h ic h it w a s d e sig n e d . A n y
d e v ia tio n s fro m th e a c c e p te d sc o p e o f th e p ro je c t— a p h e n o m e n o n k n o w n a s sc o p e c re e p —
c o u ld n e g a tiv e ly im p a c t th e p ro je c t b y c o n su m in g th e tim e a n d re so u rc e s o f th e p ro je c t a n d
sh o u ld b e a v o id e d .
T h e W o r k B r e a k d o w n S t r u c t u r e
In th e P la n n in g sta g e th e m ile sto n e s d e v e lo p e d in th e In itia tin g sta g e (w h ic h a re re a lly ju st
la rg e e v e n ts o r a c tiv itie s in th e p ro je c t) a re se p a ra te d in to in d iv id u a l w o rk c o m p o n e n ts in a
w o rk b re a k d o w n stru c tu re .
T h e w o rk b re a k d o w n stru c tu re (W B S ) is a h ie ra rc h ic a l c h a rt th a t d iv id e s p ro je c t m ile sto n e s
in to sm a lle r u n its a n d a rra n g e s p ro je c t w o rk a c tiv itie s in to re la te d a re a s. T h e W B S h e lp s
p ro je c t p a rtic ip a n ts g e t a firm g ra sp o n w h a t th e y n e e d to d e liv e r to m e e t p ro je c t g o a ls. It is
e sse n tia l fo r d e sig n in g th e p ro je c t sc h e d u le , a n d it h e lp s in c re a tin g th e b u d g e t a n d se le c tin g
th e sta ff fo r th e p ro je c t. T h e W B S h e lp s :
Id e n tify th e m a jo r se g m e n ts o f th e p ro je c t so th a t th e w o rk to d o is c le a rly d e fin e d
O rg a n iz e th e w o rk se q u e n tia lly so th a t it c a n b e sc h e d u le d e ffic ie n tly
Id e n tify w h a t w o rk to a ssig n to w h ic h te a m m e m b e rs
D e te rm in e w h a t re so u rc e s w ill b e re q u ire d to c o m p le te th e w o rk so th a t th e te a m c a n
d e v e lo p a b u d g e t
C la rify th e w o rk to d o so th a t it c a n b e c le a rly c o m m u n ic a te d to te a m m e m b e rs
W o r k P a c k a g e s
T h e W B S is o fte n sh o w n a s a tre e d ia g ra m th a t m o v e s fro m le v e ls o f g e n e ra lity (d e liv e ra b le s,
sta g e s, o r su b p ro je c ts) to m o re d e ta il (w o rk p a c k a g e s).
A w o rk p a c k a g e is th e m o st b a sic w o rk a c tiv ity th a t h a s b o th tim e a n d c o st a sso c ia te d w ith it.
It is a m a n a g e a b le (a n d a ssig n a b le ) "c h u n k " o f w o rk th a t, w h e n c o m b in e d w ith o th e r w o rk
p a c k a g e s, re p re se n ts a u n iq u e d e liv e ra b le . A se t o f w o rk p a c k a g e s m ig h t re p re se n t th e
h a n d le b a rs o n a b ik e , th e o p e ra tin g sy ste m fo r a m o b ile p h o n e , o r th e d e liv e ry c h a n n e l fo r
c u sto m e r se rv ic e s.
W o rk p a c k a g e s v a ry in th e ir le v e l o f d e ta il, b u t th e y sh o u ld b e b ro k e n d o w n to a le v e l th a t
c a n b e e a sily e x e c u te d , m o n ito re d , a n d c o n tro lle d . W o rk p a c k a g e s sh o u ld b e sm a ll e n o u g h so
th a t re lia b le e stim a te s c a n b e m a d e a b o u t th e ir c o st a n d sc h e d u lin g re q u ire m e n ts b u t w h e n
te a m s b re a k th e w o rk d o w n e x c e ssiv e ly , in e ffic ie n c y o f m a n a g e m e n t e ffo rts a n d p la n n e d
w o rk c a n re su lt.
T h e P a r ts o f a W B S
A W B S m a y b e b ro k e n d o w n
in a n u m b e r o f w a y s, b u t o n e
o f th e m o st c o m m o n fo rm s
se p a ra te s th e stru c tu re in to
su b p ro je c ts, m ile sto n e s,
a c tiv itie s, a n d w o rk p a c k a g e s.
F o r la rg e p ro je c ts w ith m a n y
la y e rs a n d d o lla rs a llo c a te d , a
W B S c a n b e c o m e q u ite
c o m p le x ; it is u p to th e p ro je c t
m a n a g e r to d e te rm in e h o w
m a n y su b p ro je c ts, m ile sto n e s,
m a jo r a c tiv itie s, a n d w o rk
p a c k a g e s th e W B S a n d p ro je c t
n e e d . D e v e lo p in g th e W B S
T h e fo llo w in g ste p s c a n b e u se d to c re a te a W B S to su p p o rt a p ro je c t a n d h e lp id e n tify
im p o rta n t p ro je c t p a ra m e te rs:
1 . P u t th e p ro je c t m ile sto n e s in to a lo g ic a l o rd e r a c c o rd in g to w h e n th e y sh o u ld o c c u r
d u rin g e x e c u tio n . (C o n su ltin g w ith su b je c t m a tte r e x p e rts o n a n d o ff th e te a m c a n p ro v e
e sse n tia l a t th is p o in t.)
2 . B re a k th e m ile sto n e s in to m a jo r a c tiv itie s, th e n in to w o rk p a c k a g e s th a t c a n b e a ssig n e d
a n d sc h e d u le d . D e fin e th e w o rk p a c k a g e s to a le v e l o f d e ta il th a t is a p p ro p ria te fo r th e
p ro je c t. (R e m e m b e r th a t e a c h w o rk p a c k a g e is a sso c ia te d w ith a d e liv e ra b le a n d a tim e
fo r c o m p le tin g th a t d e liv e ra b le .)
3 . L o o k a t th e e n tire w o rk b re a k d o w n stru c tu re a n d m a k e su re th a t c o m p le tio n o f a ll o f th e
w o rk p a c k a g e s w ill re su lt in th e c o m p le tio n o f a ll o f th e p ro je c t g o a ls a n d o b je c tiv e s
d e fin e d in th e p ro je c t p la n .
A s a p ro je c t e v o lv e s, p ra c titio n e rs le a rn th in g s th a t th e y d id n 't k n o w a t th e sta rt o f th e p ro je c t.
T h is n e w in fo rm a tio n sh o u ld b e u se d to u p d a te a n d re v ise th e W B S in w a y s th a t m a k e it m o re
a c c u ra te a n d ro b u st. K e e p in g th e W B S — a n d a ll P la n n in g d o c u m e n ts— c u rre n t w ill, in tu rn ,
su p p o rt th e u tility a n d fu n c tio n in g o f th e p ro je c t p la n .
T h e R is k R e g is t e r
D e fin in g R is k
T o ru n a p ro je c t e ffe c tiv e ly , p ra c titio n e rs n e e d to id e n tify th e risk s th a t c o u ld im p a c t th e
p ro je c t a n d d e v e lo p p la n s to d e a l w ith th e m . In p ro je c t m a n a g e m e n t te rm s, a risk c o u ld b e a
n e g a tiv e e v e n t th a t a d v e rse ly a ffe c ts p ro je c t w o rk o r a p o sitiv e e v e n t th a t p ro v id e s a n
o p p o rtu n ity th a t th e p ro je c t te a m sh o u ld p u rsu e to e n h a n c e p ro je c t re su lts.
E v e ry p ro je c t e n ta ils a c e rta in a m o u n t o f risk ; th e q u e stio n is w h e th e r th e p e o p le in v o lv e d in
th e p ro je c t w ill b e a b le to p ro p e rly id e n tify a n d m a n a g e it. T o b e e ffe c tiv e , p ro je c t m a n a g e rs
o r p ro je c t le a d e rs w ill h a v e to id e n tify th e risk s, a n a ly z e th e ir im p a c t, p re p a re re sp o n se s, a n d
m o n ito r th e p ro je c t to k e e p it o n tra c k . T h e y w ill n e e d to e n su re th a t th e p ro je c t sta y s w ith in
a c c e p ta b le risk le v e ls. A n d th e y 'll h a v e to lim it th e im p a c t o f n e g a tiv e e v e n ts w h ile , a t th e
sa m e tim e , in c re a sin g th e im p a c t o f p o sitiv e e v e n ts.
R is k s a n d th e P r o je c t L ife C y c le
D iffe re n t ty p e s o f risk o c c u r th ro u g h o u t th e p ro je c t life c y c le . F o r e x a m p le , in th e In itia tin g
sta g e , risk s c o u ld in c lu d e u n c le a r o b je c tiv e s o r k e y p e rso n n e l b e in g u n a v a ila b le fo r th e
p ro je c t te a m . In th e P la n n in g sta g e , risk s m a y in c lu d e v a g u e sp e c ific a tio n s o r ru sh e d p la n n in g
p ra c tic e s. A n d in th e E x e c u tin g a n d M o n ito rin g /C o n tro llin g sta g e s (w h e re th e g re a te st
n u m b e r o f risk e v e n ts ty p ic a lly o c c u r), risk s c a n ra n g e fro m sc o p e c re e p to sc h e d u le c h a n g e s
to u n e x p e c te d w e a th e r. T h e le v e l o f risk w ill a lso flu c tu a te th ro u g h o u t a p ro je c t. E a rly in th e p ro je c t th e le v e l o f risk
is h ig h b e c a u se th e p ro c e ss o f id e n tify in g , a n a ly z in g , a n d p la n n in g risk re sp o n se s is ju st
g e ttin g u n d e rw a y . T h e fin a n c ia l im p a c t o f risk s is lo w b e c a u se le ss h a s b e e n in v e ste d a n d
o th e r o p tio n s re m a in o p e n .
L a te r in th e p ro je c t, d u rin g th e E x e c u tin g a n d C o n tro llin g sta g e s, th e le v e l o f risk d e c re a se s
b u t th e fin a n c ia l c o n se q u e n c e s in c re a se . A t th is p o in t th e re is su b sta n tia l in v e stm e n t in th e
p ro je c t so u n e x p e c te d e v e n ts c a n c a u se sig n ific a n t c o st issu e s.
In th e C lo sin g sta g e s, a lth o u g h th e p o te n tia l fo r risk s is a t its lo w e st, th e fin a n c ia l im p a c t is a t
its g re a te st; if, fo r e x a m p le , a c u sto m e r re je c ts a fin ish e d p ro d u c t a n d c h a n g e s a n d re w o rk a re
re q u ire d , c o sts m a y b e sig n ific a n t a n d c a n ru in th e p ro je c t.
T r a c k in g R is k s w ith a R is k R e g is te r
T o tra c k a n d m o n ito r a n y risk s th a t c o u ld a ffe c t p ro je c ts, e ffe c tiv e p ro je c t m a n a g e rs d e v e lo p
risk re g iste rs.
A risk re g iste r p ro v id e s th e d e ta ils a b o u t th e risk s th a t th e p ro je c t te a m h a s id e n tifie d . T h e se
d e ta ils in c lu d e a d e sc rip tio n o f th e risk s, th e p ro b a b ility o f th e risk s o c c u rrin g , th e ir im p a c t(s)
o n o b je c tiv e s, a n d a risk sc o re fo r e a c h risk . T h e risk re g iste r a lso re c o rd s th e sta tu s o f e a c h
risk a n d p ro v id e s a n a re a fo r a n y a d d itio n a l c o m m e n ts th a t m a y b e im p o rta n t.
T h e risk re g iste r a lso e x p la in s h o w th e te a m w ill re sp o n d to risk s if th e y o c c u r a n d d o c u m e n ts
w h o is re sp o n sib le fo r tra c k in g a n d c o m m u n ic a tin g e a c h risk 's c u rre n t sta tu s, a s n e e d e d . If n o
o n e is re sp o n sib le fo r h a n d lin g c e rta in risk s, p ro je c t le a d e rs sh o u ld n 't b e su rp rise d w h e n th o se
risk s in te rfe re w ith p ro je c t p ro g re ss.
M a n y p ro je c t p ra c titio n e rs d e v e lo p risk re g iste rs a s a n E x c e l sp re a d sh e e t w h ile o th e rs in v e st
in d a ta b a se s o r o th e r so ftw a re p ro g ra m s th a t m a tc h th e siz e a n d c o m p le x ity o f th e p ro je c t. N o
m a tte r w h a t to o ls a re u se d , th e risk re g iste r w ill h e lp e n su re th a t p ro je c t risk s a re c o n tin u o u sly
id e n tifie d a n d a p p ro p ria te ly m a n a g e d . D e v e lo p in g th e R is k R e g is te r
R isk ID N u m b er R isk P ro b a b ility Im p a ct R isk S co re R esp o n se R esp o n sib ility S ta tu s C o m m en ts
1
2
3
4
1 . R isk ID N u m b e r : P ro v id e a n id e n tific a tio n n u m b e r fo r e a c h risk . T h is w ill a llo w
p a rtic ip a n ts to d isc u ss e a c h risk b y its n u m b e r, m a k in g c o n v e rsa tio n s e a sie r.
2 . R isk : D e sc rib e th e risk in c le a r, sim p le la n g u a g e . C la ssify th e risk a s e ith e r a p o sitiv e o r
n e g a tiv e e v e n t.
3 . P r o b a b ility : R e c o rd th e p ro b a b ility o f th e e v e n t o c c u rrin g (a s "h ig h ," "m e d iu m ," "lo w ,"
o r a n y c o m b in a tio n o f th e se ra tin g s). Y o u w ill n e e d to w o rk w ith y o u r te a m (a n d p o ssib ly
o th e r im p o rta n t sta k e h o ld e rs) to d e fin e w h a t e a c h ra tin g ("h ig h ," "m e d iu m -h ig h ,"
"m e d iu m ," e tc .) m e a n s.
4 . Im p a c t: R e c o rd th e im p a c t (a s "h ig h ," "m e d iu m ," "lo w ," o r a n y c o m b in a tio n o f th e se
ra tin g s) to th e p ro je c t if th e risk o c c u rs. A g a in , y o u w ill n e e d to w o rk w ith y o u r te a m
(a n d sta k e h o ld e rs) to d e fin e w h a t e a c h ra tin g m e a n s.
5 . R isk S c o r e : C o m b in e th e p ro b a b ility a n d im p a c t in to a risk sc o re . T h e risk sc o re w ill
g iv e y o u a sim p le w a y to p rio ritiz e risk s a n d sh o w w h ic h o n e s n e e d to b e c a re fu lly
m o n ito re d .
6 . R e sp o n se : D e sc rib e th e re sp o n se y o u 'll im p le m e n t if th e risk o c c u rs. In c lu d e a s m u c h
in fo rm a tio n a s n e c e ssa ry to illu stra te y o u r p la n s.
7 . R e sp o n sib ility : C le a rly id e n tify th e p e rso n re sp o n sib le fo r m o n ito rin g a n d a d d re ssin g th e
risk sh o u ld it o c c u r.
8 . S ta tu s: R e c o rd th e sta tu s o f risk s a s e ith e r o p e n (th e y c o u ld still p o te n tia lly o c c u r) o r
c lo se d (th e risk h a s b e e n a d d re sse d o r th e c h a n c e th a t th e risk w ill o c c u r h a s p a sse d ).
9 . C o m m e n ts: R e c o rd a n y im p o rta n t in fo rm a tio n a b o u t th e risk th a t d o e sn 't fit in to th e
o th e r c o lu m n s o f th e re g iste r.
T h e R is k R e g is te r a s a T o o l
T h e p ro je c t m a n a g e r w ill n e e d to re v ie w a n d u p d a te th e p ro je c t risk re g iste r re g u la rly . A s
c h a n g e s o c c u r o n th e p ro je c t a n d n e w in fo rm a tio n is le a rn e d , risk s m a y n e e d to b e a d d e d —
a n d re m o v e d — fro m th e re g iste r.
T h e p ro je c t te a m sh o u ld a lso re fe r to th e risk re g iste r fo r im p o rta n t in fo rm a tio n a t th e
c o n c lu sio n o f th e p ro je c t. D u rin g th e p ro je c t's C lo sin g sta g e , re v ie w in g th e risk re g iste r w ill
h e lp in re c o rd in g th e le sso n s le a rn e d fo r th e p ro je c t. T h e re g iste r w ill h e lp re m in d p ro je c t
p a rtic ip a n ts a b o u t th e issu e s th a t th e y h a d to a d d re ss o n th e p ro je c t, h e lp in g th e m a n d o th e r
m e m b e rs o f th e o rg a n iz a tio n b e tte r m a n a g e risk o n fu tu re p ro je c ts. T h e R e s p o n s ib ilit y A s s ig n m e n t M a t r ix
A fte r c re a tin g th e W B S a n d id e n tify in g th e p ro je c t's w o rk e le m e n ts, it's n o w tim e to b e g in
a ssig n in g w o rk to in d iv id u a ls. A sim p le , p ra g m a tic w a y to tra c k th e w o rk a ssig n e d is to u se a
re sp o n sib ility a ssig n m e n t m a trix (R A M ). T h e R A M is a ta b le o r g rid th a t c o n n e c ts th e h u m a n
re so u rc e s o n th e p ro je c t to th e w o rk o n th e p ro je c t. In o th e r w o rd s, it c o n n e c ts th e p e o p le o n
th e p ro je c t w ith th e "stu ff" th a t n e e d s to b e d o n e .
R A M s c a n b e c re a te d a t h ig h le v e ls (m a p p in g e n tire u n its to g ro u p s o f w o rk p a c k a g e s) o r
lo w e r le v e ls (m a p p in g a n in d iv id u a l's le v e l o f re sp o n sib ility to e a c h w o rk p a c k a g e ).
T h e R A M a ssig n s th e re sp o n sib ility fo r th e c o m p le tio n o f w o rk e le m e n ts to o n e — a n d o n ly
o n e — in d iv id u a l. It a llo c a te s w o rk in a w a y su c h th a t e a c h in d iv id u a l k n o w s th a t h e o r sh e is
re sp o n sib le fo r c o m p le tin g th a t w o rk e le m e n t.(S e v e ra l p e o p le m a y b e a c c o u n ta b le fo r g e ttin g
th e w o rk d o n e b u t o n ly o n e p e rso n is h e ld re sp o n sib le fo r e n su rin g th a t it is d o n e .)
T h e m a trix h e lp s in te re ste d p a rtie s e a sily v ie w in fo rm a tio n in tw o d ire c tio n s. It m a k e s it e a sy
to se e w h a t ro le s e a c h p e rso n w ill p la y o n a p ro je c t (b y lo o k in g a t a sp e c ific c o lu m n in th e
c h a rt) a s w e ll a s e v e ry o n e in v o lv e d in a sp e c ific p a rt o f th e w o rk (b y e x a m in in g th e ro w s o f
th e c h a rt).
A c o m m o n fo rm o f th e R A M is th e R A C I c h a rt. T h e R A C I c h a rt q u ic k ly sh o w s w h o is
re sp o n sib le fo r a n a c tiv ity , w h o is a c c o u n ta b le fo r it, w h o sh o u ld b e c o n su lte d a b o u t it, a n d
w h o sh o u ld b e k e p t in fo rm e d a b o u t it. R A C I c h a rts a re e sp e c ia lly h e lp fu l to e n su re th a t ro le s
a n d e x p e c ta tio n s a re c le a rly d e fin e d w h e n p ro je c t sta ff in d iffe re n t u n its o r o rg a n iz a tio n s
sh a re w o rk p a c k a g e s.
E n su rin g th a t a ssig n e d w o rk is p ro p e rly c o m m u n ic a te d to th e p ro je c t te a m w ill h e lp
p ra c titio n e rs a v o id tw o p o te n tia lly h a z a rd o u s risk s. T h e first risk is th a t m u ltip le in d iv id u a ls
w ill e n d u p w o rk in g o n th e sa m e ta sk , th e re b y d u p lic a tin g e ffo rt a n d in c re a sin g th e c h a n c e s
o f c o n flic t o n th e te a m . T h e se c o n d risk is th e o p p o site o f th e first— th a t n o b o d y w ill b e
w o rk in g o n a p a rtic u la r ta sk o r w o rk e le m e n t. T h e R A M p re v e n ts th e se ty p e s o f p ro b le m s b y
e n su rin g th a t w o rk a ssig n m e n ts a re e v e n ly d istrib u te d a n d th a t a ll w o rk a c tiv itie s a re
a c c o u n te d fo r.
G e n o A n n M a r k J e a n
C o n c e p tio n R A I C
F in a liz e A R I C
T e st I A R C
S e ll In te r n a lly C I A R
R = r e s p o n s ib le , A = a c c o u n ta b le , C = c o n s u lt, I = in fo r m T h e N e t w o r k D ia g r a m
T h e b a se lin e s e sta b lish e d d u rin g P la n n in g a re c ritic a l to h e lp m e a su re p ro g re ss a n d m o n ito r
c h a n g e s th ro u g h o u t th e p ro je c t life c y c le .
O n e o f th e first a n d m o st im p o rta n t b a se lin e s c re a te d is th e p ro je c t sc h e d u le . T o c re a te a n
e ffe c tiv e p ro je c t sc h e d u le , p ra c titio n e rs w ill h a v e to :
Id e n tify th e a c tiv itie s th a t w ill h e lp th e m m e e t p ro je c t o b je c tiv e s
S e q u e n c e th o se a c tiv itie s
E stim a te h o w lo n g it w ill ta k e to d o th o se a c tiv itie s
D e c id e w h ic h a c tiv itie s th e y 'll h a v e to m o n ito r c a re fu lly to e n su re th a t th e y fin ish th e
p ro je c t o n tim e
T o c re a te a sc h e d u le th a t w ill g u id e th e te a m in e x e c u tin g p ro je c t w o rk , p a rtic ip a n ts w ill u se a
to o l c a lle d a n e tw o rk d ia g ra m . T h e n e tw o rk d ia g ra m is a sim p le g ra p h ic th a t sh o w s th e
lo g ic a l re la tio n sh ip s a m o n g p ro je c t a c tiv itie s. U sin g a sim p le g ra p h ic lik e th is d ia g ra m to
illu stra te th e se o fte n c o m p le x re la tio n sh ip s w ill a llo w e v e ry o n e to q u ic k ly se e th e sc h e d u le 's
c o m p le x ity in a w a y th a t p ro je c t p a rtic ip a n ts c a n e a sily u n d e rsta n d .
C o m p le tin g th e se ste p s w ill e n su re th a t th e p ro je c t sc h e d u le a c c o u n ts fo r a ll p ro je c t w o rk a n d
p ro v id e s h e lp fu l in fo rm a tio n to p ro je c t p a rtic ip a n ts.
Id e n tify in g A c tiv itie s
Id e n tify in g a ll o f th e a c tiv itie s th a t w ill h a v e to b e c o m p le te d to m e e t p ro je c t o b je c tiv e s
a llo w s p a rtic ip a n ts to m o re a c c u ra te ly e stim a te th e p ro je c t's sc h e d u le (a n d , su b se q u e n tly ,
its c o st).
T h e te a m c a n b e g in to id e n tify th e se a c tiv itie s b y lo o k in g a t th e w o rk p a c k a g e s a t th e
lo w e st le v e l o f th e w o rk b re a k d o w n stru c tu re th a t w a s a lre a d y c re a te d . (If th e se w o rk
p a c k a g e s a re to o b ig to e stim a te a c c u ra te ly , th e y c a n b e d iv id e d in to sm a lle r w o rk u n its,
th e n th o se sm a lle r u n its c a n b e u se d in th e sc h e d u le .) T h e in d iv id u a ls id e n tify in g th e se
a c tiv itie s sh o u ld a sk sta k e h o ld e rs a n d o th e r te a m m e m b e rs to su g g e st a c tiv itie s th a t th e y
m ig h t b e u n a w a re o f o r m a y h a v e o v e rlo o k e d .
T h e m ile sto n e c h a rt c re a te d in th e In itia tin g sta g e sh o u ld a lso b e re v ie w e d to e n su re th a t
a ll im p o rta n t p ro je c t d a te s a re in c lu d e d in th e sc h e d u le . R e v ie w in g th e m ile sto n e c h a rt w ill re m in d th e te a m o f a n y d a te s th a t h a v e b e e n im p o se d o n th e p ro je c t (b y c o n tra c t o r
b y th e o rg a n iz a tio n a u th o riz in g th e w o rk ) a n d e n su re th a t th e se d a te s a re p la n n e d a n d
a c c o u n te d fo r.
S e q u e n c in g A c tiv itie s
A n e tw o rk d ia g ra m sh o w s e a c h a c tiv ity 's p re d e c e sso rs (th o se a c tiv itie s th a t m u st b e
c o m p le te d b e fo re th e a c tiv ity ) a s w e ll a s a n y su c c e sso r a c tiv itie s (th o se a c tiv itie s th a t w ill
fo llo w th e a c tiv ity ) fo r a ll o f th e a c tiv itie s in th e p ro je c t.
T o b e g in , p la c e th e first a c tiv ity in th e p ro je c t o n th e fa r le ft o f a la rg e w o rk su rfa c e .
P la c e a n y a c tiv itie s th a t c a n b e c o m p le te d a t th e sa m e tim e a b o v e o r b e lo w th is first
a c tiv ity .
N e x t, p la c e a ll su b se q u e n t a c tiv itie s to th e rig h t o f th is first a c tiv ity (o r a c tiv itie s) in a
se q u e n c e th a t sh o w s p ro g re ss to w a rd th e p ro je c t g o a l. A g a in , p la c e a n y a c tiv itie s th a t c a n
b e c o m p le te d c o n c u rre n tly a b o v e o r b e lo w th e se p re d e c e sso r a c tiv itie s.
F in a lly , d ra w a rro w s b e tw e e n th e a c tiv itie s to sh o w a n y d e p e n d e n c ie s o r re la tio n sh ip s
a m o n g th e m .
E stim a tin g A c tiv itie s
O n c e th e se q u e n c in g o f p ro je c t a c tiv itie s is fin ish e d , a n e stim a te o f h o w lo n g e a c h
a c tiv ity w ill ta k e sh o u ld b e d e v e lo p e d . T h e d u ra tio n e stim a te s fo r e a c h o f th e se a c tiv itie s
w ill, o f c o u rse , d e p e n d o n se v e ra l fa c to rs— th e a v a ila b ility o f re so u rc e s, th e k n o w le d g e
a n d sk ills o f p a rtic ip a n ts, e tc .— so it's b e st to a sk k e y sta k e h o ld e rs a n d p ro je c t te a m
m e m b e rs to h e lp d e c id e h o w c o m p le x a n d tim e -c o n su m in g a c tiv itie s m a y b e . In c lu d in g
th e se p ro je c t p a rtic ip a n ts in th is e stim a tin g p ro c e ss w ill h e lp in c re a tin g m o re -a c c u ra te
e stim a te s a n d in c re a se b u y -in to th e p ro je c t.
T e a m s m a y a lso b e a b le to lo o k a t re c o rd s fro m sim ila r p ro je c ts th a t th e ir o rg a n iz a tio n
h a s c o m p le te d , to a c c u ra te ly e stim a te th e a c tiv ity d u ra tio n s. A n d in so m e in d u strie s, th e y
m ig h t e v e n b e a b le to a c c e ss in fo rm a tio n a l d a ta b a se s th a t d e sc rib e h o w lo n g ty p ic a l
a c tiv itie s w ill ta k e . W h a te v e r m e th o d is c h o se n , b e su re th a t th e e stim a te s a re re a listic
a n d th a t th e y a re a g re e d u p o n b y th e p a rtie s in v o lv e d . If th e re is a fe e lin g th a t th e a c tiv ity e stim a te s m ig h t n o t b e c o m p le te ly a c c u ra te o r if th e re
a re sig n ific a n t risk s th a t m a y a d v e rse ly a ffe c t th e p ro je c t sc h e d u le , th e te a m c a n a d d
re se rv e s o r b u ffe rs to a c c o u n t fo r u n c e rta in ty a n d in c re a se th e c h a n c e th a t th e p ro je c t w ill
m e e t th e p ro je c te d c o m p le tio n d a te . T h is a d d itio n a l tim e c a n b e a d d e d to in d iv id u a l
a c tiv itie s o r w o rk p a c k a g e s, o r a m o re -g e n e ra l b u ffe r re se rv e fo r th e e n tire p ro je c t c a n b e
c re a te d to u se a t th e te a m 's (o r p ro je c t m a n a g e r's) d isc re tio n .
D e v e lo p in g th e S c h e d u le
A fte r th e a c tiv itie s h a v e b e e n se q u e n c e d a n d a n e stim a te o f h o w lo n g e a c h w ill ta k e h a s
b e e n m a d e , th e te a m w ill b e a b le to c a lc u la te th e e x p e c te d sta rt a n d e n d d a te s fo r e a c h
a c tiv ity a n d fo r th e p ro je c t a s a w h o le . T h e y sh o u ld a lso sta rt to se e th e c ritic a l p a th o f
a c tiv itie s th a t th e y 'll n e e d to m o n ito r c lo se ly to e n su re th a t th e p ro je c t sta y s o n sc h e d u le .
T h e c ritic a l p a th fo r th e p ro je c t is th e p a th th ro u g h th e n e tw o rk d ia g ra m th a t h a s n o
fle x ib ility in th e tim e a llo tte d fo r p a th a c tiv itie s— a n y d e la y in c o m p le tin g th e a c tiv itie s
o n th is p a th w ill lik e ly d e la y su b se q u e n t a c tiv itie s a n d th e p ro je c t's c o m p le tio n d a te .
T o u n d e rsta n d h o w th e c ritic a l p a th w o rk s, a fo rw a rd p a ss a n d a b a c k w a rd p a ss th ro u g h
th e d ia g ra m w ill h a v e to b e m a d e .
T h e fo rw a rd p a ss u se s th e d u ra tio n e stim a te s fo r a c tiv itie s o n th e p a th to c a lc u la te th e
e a rly sta rt d a te s a n d e a rly fin ish d a te s fo r e a c h a c tiv ity . T h e fo rw a rd p a ss tra c k s th e
a c tiv itie s fro m th e b e g in n in g o f th e p ro je c t to its e n d .
T h e b a c k w a rd p a ss h e lp s to c a lc u la te th e la te sta rt d a te s a n d la te fin ish d a te s fo r p a th
a c tiv itie s. T h e b a c k w a rd p a ss tra c k s a c tiv itie s fro m th e e n d o f th e p ro je c t b a c k to its
b e g in n in g .
D e v e lo p in g th e S c h e d u le : T h e F o r w a r d P a ss
T o c o m p le te a fo rw a rd p a ss, sta rt a t th e fa r le ft o f th e d ia g ra m a n d c a lc u la te th e e a rly sta rt
d a te s (E S ) a n d e a rly fin ish d a te s (E F ) fo r e a c h a c tiv ity in th e p ro je c t. T h e e a rly sta rt d a te
fo r a n a c tiv ity is th e e a rlie st d a te th a t a n a c tiv ity c a n sta rt, b a se d o n th e c o m p le tio n o f a n y
p re d e c e sso r a c tiv itie s. F o r e x a m p le , if A c tiv ity B c a n 't b e g in u n til A c tiv ity A (w h ic h
ta k e s e ig h t d a y s to c o m p le te ) is fin ish e d , th e e a rly sta rt d a te fo r A c tiv ity B is d a y e ig h t.
(If a n a c tiv ity h a s tw o p re d e c e sso r a c tiv itie s, th e e a rlie st th a t th e a c tiv ity c a n sta rt is th e
la te st fin ish d a te o f a ll o f th e p re d e c e sso rs. S o if A c tiv ity C (w h ic h is fin ish e d o n d a y
fiv e ) a n d A c tiv ity D (w h ic h is fin ish e d o n d a y n in e ) m u st b e d o n e b e fo re A c tiv ity E c a n
b e g in , th e e a rly sta rt d a te fo r A c tiv ity E is d a y n in e b e c a u se it is th e la rg e r o f th e tw o
fin ish d a te s fo r th e p re c e d in g a c tiv itie s.) T h e e a rly fin ish d a te (E F ) fo r a n a c tiv ity is th e e a rly sta rt d a te p lu s th e a m o u n t o f tim e
th a t th e a c tiv ity w ill ta k e . S o if th e e a rly sta rt d a te fo r a n a c tiv ity is d a y 1 2 a n d th e
a c tiv ity ta k e s six d a y s to c o m p le te , th e e a rly fin ish d a te is d a y 1 8 .
D e v e lo p in g th e S c h e d u le : T h e B a c k w a r d P a ss
T o c a lc u la te th e b a c k w a rd p a ss, sta rt a t th e e n d o f th e p ro je c t a n d c a lc u la te th e la te fin ish
d a te s a n d la te sta rt d a te s fo r e a c h p ro je c t a c tiv ity . T h e la te fin ish d a te (L F ) fo r a n a c tiv ity
is th e la te st th a t th e a c tiv ity c a n fin ish w ith o u t d e la y in g th e p ro je c t. T h e la te fin ish d a te is
b a se d o n th e c o m p le tio n o f a n y su c c e sso r a c tiv itie s. T h e la te fin ish d a te fo r a n a c tiv ity is
e q u a l to th e sm a lle st la te sta rt d a te (L S ) o f a n y c o n n e c te d su c c e e d in g ta sk . S o if th e
su c c e sso r a c tiv itie s fo r A c tiv ity M a re A c tiv ity N (w h ic h h a s d a y 2 2 a s its la te sta rt d a te )
a n d A c tiv ity O (w h ic h h a s d a y 2 0 a s its la te sta rt d a te ), th e la te fin ish d a te fo r A c tiv ity M
is d a y 2 0 b e c a u se it is th e sm a lle r o f th e tw o la te sta rt d a te s.
T h e la te sta rt d a te (L S ) is th e la te st a n a c tiv ity c a n sta rt w ith o u t d e la y in g th e p ro je c t. It's
e q u a l to th e la te fin ish d a te fo r th e ta sk m in u s th e a m o u n t o f tim e it ta k e s to c o m p le te th e
a c tiv ity .
T h e fle x ib ility in th e p ro je c t sc h e d u le (a n d th e re fo re its c ritic a l p a th ) is d e te rm in e d b y
c o m p a rin g th e sta rt a n d fin ish d a te s fo r th e p ro je c t's a c tiv itie s. F o r e x a m p le , if a n
a c tiv ity 's E S is d a y n in e a n d its L S is d a y 1 2 , th e n th e re a re th re e d a y s o f fle x ib ility
a sso c ia te d w ith th e a c tiv ity ; th e a c tiv ity c a n sta rt u p to th re e d a y s la te a n d still n o t a ffe c t
th e p ro je c t's e x p e c te d c o m p le tio n d a te . If, h o w e v e r, th e E S a n d L S b o th sh o w th e sa m e
d a te , th e n th e re is n o fle x ib ility a sso c ia te d w ith th e c o m p le tio n o f th e ta sk a n d a n y d e la y
in c o m p le tin g th e a c tiv ity w ill lik e ly d e la y th e p ro je c t e n d d a te .
R e m e m b e r th a t, o n th e c ritic a l p a th , n o n e o f th e a c tiv itie s o n th e p a th h a v e fle x ib ility in
th e ir c o m p le tio n — th e E S a n d L S d a te s a re e q u a l fo r a ll o f th e a c tiv itie s o n th e p a th so a
d e la y in a n y a c tiv ity o n th e c ritic a l p a th w ill lik e ly d e la y th e w h o le p a th a n d c a u se th e
p ro je c t to m iss its p la n n e d c o m p le tio n d a te .
It is im p o rta n t to n o te th a t a p ro je c t m a y h a v e m o re th a n o n e c ritic a l p a th . It's a lso
p o ssib le fo r a p ro je c t's c ritic a l p a th to c h a n g e if a n a c tiv ity is d e la y e d so m u c h th a t it u se s
u p a n y fle x ib ility a sso c ia te d w ith th e ta sk .
M o n ito r in g th e S c h e d u le
A s a p ro je c t is p la n n e d a n d sc h e d u le d , p a rtic ip a n ts m a y fin d th a t th e n e tw o rk d ia g ra m
sh o w s th a t th e y w o n 't b e a b le to m e e t a m ile sto n e o r o th e r im p o se d p ro je c t d a te . In su c h
c a se s, th e sc h e d u le w ill n e e d to b e a d ju ste d to e n su re th a t th e im p o se d d a te s w ill b e m e t. O n e a d ju stm e n t th a t c a n b e m a d e is to sc h e d u le a c tiv itie s th a t a re d o n e in a se q u e n c e to
b e d o n e in p a ra lle l. A n o th e r a d ju stm e n t c o u ld b e to a d d a d d itio n a l re so u rc e s to a c tiv itie s
to sh o rte n th e a m o u n t o f tim e it w ill ta k e to fin ish th e m . P ra c titio n e rs sh o u ld b e a w a re ,
h o w e v e r, th a t e ith e r o f th e se re sp o n se s m a y in c re a se th e risk a sso c ia te d w ith th e p ro je c t
a n d c a u se sig n ific a n t p ro b le m s. If th e te a m d e c id e s to u se e ith e r o f th e se re sp o n se s to
a d a p t th e ir sc h e d u le , th e y m u st b e su re to u se th e m sp a rin g ly a n d c lo se ly m o n ito r th e m to
e n su re th a t a n y p ro b le m s th a t th e y m ig h t c a u se c a n b e q u ic k ly re so lv e d .
T e a m s c a n u se th e n e tw o rk d ia g ra m a s a re fe re n c e to e n su re th a t th e p ro je c t w ill c o n tin u e
to m e e t its e x p e c te d sc h e d u le . T h e y c a n u se th e d ia g ra m to c o m p a re a c tu a l re su lts to
p la n s, se e w h e n c o rre c tio n s a re n e e d e d , a n d k e e p sta k e h o ld e rs in fo rm e d a b o u t c h a n g e s to
th e p ro je c t tim e lin e . A s su c h , th e y 'll n e e d to re v ie w th e d ia g ra m re g u la rly a n d k e e p it
u p d a te d to e n su re th a t a c tiv itie s a re c o m p le te d a s e x p e c te d a n d th e p ro je c t c o n tin u e s a s
p la n n e d .
T h e C o s t B a s e lin e
T h e c o st b a se lin e is a n o th e r im p o rta n t d o c u m e n t th a t w ill n e e d to b e c re a te d e a rly in th e
p ro je c t. T h e c o st b a se lin e is th e b u d g e t th a t w ill b e u se d to m e a su re , m o n ito r, a n d c o n tro l th e
p ro je c t's o v e ra ll c o st.
T o c re a te a n e ffe c tiv e c o st b a se lin e , p ra c titio n e rs w ill n e e d to e stim a te th e c o sts fo r e a c h
p ro je c t a c tiv ity a n d th e n a d d th o se c o sts to g e th e r to c re a te th e p ro je c t's b u d g e t. T h is b u d g e t
c a n th e n b e u se d a s a re fe re n c e fo r p ro je c t c o sts; a s c h a n g e s o c c u r o n th e p ro je c t, th e c o st
b a se lin e (a lo n g w ith th e sc h e d u le a n d sc o p e b a se lin e s) c a n b e a sse sse d to d e te rm in e w h a t
im p a c t th e c h a n g e m a y h a v e .
E stim a tin g C o sts
T o e stim a te th e c o st o f th e p ro je c t, te a m m e m b e rs w ill h a v e to ta k e in to a c c o u n t a ll o f th e
c o sts th a t w ill b e in c u rre d to p ro d u c e th e p ro je c t's d e liv e ra b le s.
T h e y 'll n e e d to in c lu d e la b o r a n d se rv ic e s, m a te ria ls, in fo rm a tio n te c h n o lo g y , fa c ilitie s,
a n d e q u ip m e n t. T h e y 'll n e e d to p la n fo r u n c e rta in tie s su c h a s in fla tio n o r o th e r u n fo re se e n
e v e n ts, a n d th e y m a y w a n t to a d d a b u ffe r to a c c o u n t fo r th e c o sts a sso c ia te d w ith th e
risk s th a t c a n 't b e p la n n e d fo r. T h e y m a y n e e d to c o n sid e r th e c o sts in c u rre d w h ile
m a in ta in in g a n d su p p o rtin g th e p ro je c t re su lt a fte r it is fin ish e d , if th e ir o rg a n iz a tio n
c o n sid e rs th e se c o sts to b e p a rt o f th e p ro je c t. A n d th e y 'll h a v e to d e c id e if th e p ro je c t's
in d ire c t c o sts— su c h a s o v e rh e a d o r c o sts th a t c a n 't b e d ire c tly a sc rib e d to th is p a rtic u la r
p ro je c t— w ill b e in c lu d e d in th e ir p ro je c t's c o sts o r if th o se c o sts w ill b e a c c o u n te d fo r a t
a h ig h e r le v e l in th e o rg a n iz a tio n .
A s th e te a m d e v e lo p s th e c o st e stim a te s, th e y w ill n e e d to re v ie w a n y e x istin g
d o c u m e n ta tio n to u n c o v e r in fo rm a tio n th a t w ill h e lp th e m e stim a te m o re e ffe c tiv e ly . F o r
e x a m p le , th e y c a n re v ie w th e m ile sto n e c h a rt a n d n e tw o rk d ia g ra m to se e if th e se
d o c u m e n ts in c lu d e a d u e d a te th a t w ill re q u ire h ig h e r-th a n -u su a l la b o r o r o th e r c o sts to m e e t. T h e y c a n lo o k a t th e sc o p e sta te m e n t a n d w o rk b re a k d o w n stru c tu re to e n su re th a t
e stim a te s in c lu d e c o sts fo r a ll o f th e a c tiv itie s th e y 'v e p la n n e d fo r th e p ro je c t. A n d th e y
c a n c o n su lt re c o rd s fro m p re v io u s p ro je c ts a n d le sso n s le a rn e d to e x p o se c o sts th a t th e y
m a y h a v e o v e rlo o k e d .
F in a lly , th e y m a y w a n t to re c o rd h o w c o n fid e n t th e y a re th a t th e ir e stim a te s a re a c c u ra te ,
b y d e sc rib in g th e c o n fid e n c e le v e l fo r th e e stim a te d c o st a n d th e ra n g e o f p o ssib ility fo r
a c tu a l c o st. F o r in sta n c e , th e y m ig h t e stim a te th e c o st fo r a p ro je c t p h a se a s $ 7 ,0 0 0 , w ith
a c o n fid e n c e le v e l o f 8 9 % th a t th e p ric e w ill n o t v a ry m o re th a n $ 1 ,0 0 0 o n e a c h e n d .
C r e a tin g th e C o st B a se lin e
O n c e c o st e stim a te s fo r th e in d iv id u a l a c tiv itie s in th e p ro je c t h a v e b e e n c o m p le te d ,
p ra c titio n e rs w ill n e e d to a g g re g a te th o se e stim a te s in to a c o st b a se lin e .
T h e c o st b a se lin e is a g ra p h ic fo rm o f th e b u d g e t th a t w ill h e lp th e te a m c o m p a re a c tu a l
e x p e n se s to p la n n e d e x p e n se s. A n y d iffe re n c e s se e n b e tw e e n a c tu a l a n d p la n n e d
e x p e n se s sh o u ld a le rt te a m m e m b e rs to p o te n tia l p ro b le m s a n d h e lp th e m d e c id e w h e th e r
a c tio n w ill n e e d to b e ta k e n to g e t th e p ro je c t b a c k o n tra c k .
T h e c o st b a se lin e stip u la te s th e a m o u n t o f m o n e y th a t sh o u ld b e sp e n t a t e v e ry p o in t in
tim e in th e p ro je c t's life c y c le . T h e c o st b a se lin e is u su a lly sh o w n a s a n S -c u rv e , w ith
tim e o n th e x -a x is a n d c u m u la tiv e c o sts o n th e y -a x is.
T h e c o st b a se lin e sh o w s th e su m m a tio n o f a ll o f th e c o sts in c u rre d d u rin g th e c o u rse o f
th e p ro je c t, so it w ill a lw a y s rise o v e r tim e . T y p ic a lly , c o sts a re lo w a t th e b e g in n in g o f
th e p ro je c t a n d in c re a se ra p id ly d u rin g e x e c u tio n a s w o rk is c a rrie d o u t. C o sts th e n le v e l
o ff a s th e p ro je c t n e a rs c o m p le tio n a n d w o rk slo w s. T h e p la n n e d p ro je c t c o sts a re
g ra p h e d first; a s a c tu a l re su lts a re a c h ie v e d , th e y c a n b e a d d e d a s n e w lin e s o n th e g ra p h
fo r a q u ic k c o m p a riso n .
A s th e te a m u se s th e S -c u rv e to c o m p a re p ro je c t e x e c u tio n to p la n n e d p e rfo rm a n c e ,
tre n d s w ill sta rt to a p p e a r. T h e se tre n d s w ill b e v e ry h e lp fu l in d e te rm in in g if a n d w h e n
a c tio n w ill b e n e e d to b e ta k e n to p re v e n t th e p ro je c t fro m g o in g o u t o f c o n tro l.
In th e c o st b a se lin e e x a m p le sh o w n h e re , th e a c tu a l e x p e n d itu re fo r th e p ro je c t is
re p re se n te d b y a lin e u n d e rn e a th a n d to th e rig h t o f th e b a se lin e a t a lm o st e v e ry p o in t
e x c e p t fo r th e e n d o f th e p ro je c t. T h is su g g e sts th a t fo r th is p ro je c t, th e e x p e n d itu re s w e re b e lo w th e c o st b a se lin e a t e v e ry p o in t, u n til th e p ro je c t's e n d , a t w h ic h tim e th e a c tu a l
e x p e n d itu re s a p p e a r to h a v e c a u g h t u p to th e p la n n e d p ro je c t e x p e n d itu re s re p re se n te d in
th e b a se lin e .
C o st B a se lin e s a n d E a r n e d V a lu e
T h e c o st b a se lin e is a c tu a lly a n in te g ra te d re fe re n c e ; it a llo w s p a rtic ip a n ts to m e a su re
a c tu a l c o sts a g a in st e x p e c te d c o sts b u t it a lso a llo w s a c o m p a riso n o f sc h e d u le a n d sc o p e
p ro g re ss a s w e ll.
T o u se th e b a se lin e th is w a y , p ra c titio n e rs w ill n e e d to e m p lo y a te c h n iq u e c a lle d e a rn e d
v a lu e m a n a g e m e n t (E V M ).
E V M a llo w s p e o p le to o b je c tiv e ly m e a su re p e rfo rm a n c e a g a in st p ro g re ss a s a p ro je c t
u n fo ld s.
P e rfo rm a n c e is m e a su re d b y c o m p a rin g th e e a rn e d v a lu e (th e w o rk th a t g o t d o n e ) to th e
p la n n e d v a lu e (th e w o rk th a t w a s e x p e c te d to g e t d o n e ) a n d b y c o m p a rin g e a rn e d v a lu e to
th e a c tu a l c o st (h o w m u c h w a s sp e n t to g e t th e w o rk d o n e ).
T h e n e x t a ssig n m e n t w ill c o v e r e a rn e d v a lu e in g re a te r d e ta il.
A n a ly z in g C o s t P e r fo r m a n c e
T h e c o st b a se lin e h e lp s te a m s re v ie w th e p ro je c t p e rfo rm a n c e , id e n tify tre n d s, a n d a n a ly z e
v a ria n c e s o n th e p ro je c t.
If a p ro je c t is o ff tra c k , p ra c titio n e rs h a v e fo u r o p tio n s: ig n o re th e v a ria n c e , ta k e c o rre c tiv e
a c tio n to re m e d y th e v a ria n c e , re v ise th e p la n to in c o rp o ra te th e v a ria n c e , o r c a n c e l th e
p ro je c t.
R e g a rd le ss o f th e re sp o n se c h o se n , it is th e p ro je c t le a d e r's re sp o n sib ility (w ith h e lp fro m th e
p ro je c t te a m ) to id e n tify th e c a u se s o f v a ria n c e s, a sse ss th e m a g n itu d e o f a v a ria n c e , a n d
m a k e su re re sp o n se s to v a ria n c e s a re u n d e rsto o d , c o m m u n ic a te d , a n d c a rrie d o u t.
T e r m D e fin itio n
P la n n e d
v a lu e (P V )
T h e c o st b a se lin e o r S -c u rv e th a t y o u c re a te d . T h is is h o w m u c h y o u
p la n n e d to sp e n d to g e t a sp e c ific a m o u n t o f w o rk d o n e .
E a rn e d
v a lu e
(E V )
T h e v a lu e o f w o rk p e rfo rm e d . T h is is h o w m u c h w o rk y o u g o t d o n e fo r
th e a m o u n t o f m o n e y y o u sp e n t.
A c tu a l
c o st (A C )
T h e to ta l c o st a c tu a lly in c u rre d in a c c o m p lish in g w o rk p e rfo rm e d . T h is is
h o w m u c h y o u 'v e a c tu a lly sp e n t to g e t w o rk d o n e . E a r n e d V a lu e M a n a g e m e n t
A s m e n tio n e d in th e p re v io u s a ssig n m e n t, e a rn e d
v a lu e m a n a g e m e n t (E V M ) a llo w s p ra c titio n e rs to
o b je c tiv e ly m e a su re p e rfo rm a n c e a g a in st p ro g re ss a s a
p ro je c t u n fo ld s.
P e rfo rm a n c e is m e a su re d b y c o m p a rin g th e e a rn e d
v a lu e (th e w o rk th a t g o t d o n e ) to th e p la n n e d v a lu e
(th e w o rk th a t w a s e x p e c te d to g e t d o n e ) a n d b y
c o m p a rin g e a rn e d v a lu e to th e a c tu a l c o st (h o w m u c h
w a s sp e n t to g e t th e w o rk d o n e ).
P la n n e d v a lu e (P V ), e a rn e d v a lu e (E V ), a n d a c tu a l
c o st (A C ) a re u se d to a sse ss w h e th e r w o rk is b e in g p e rfo rm e d o v e r tim e a s p la n n e d . A ll th re e
c o n c e p ts— E V , P V , a n d A C — a re g e n e ra lly re c o rd e d in d o lla r a m o u n ts, to m a k e c o m p a riso n s
a n d c a lc u la tio n s c o n siste n t.
T h e se c o n c e p ts c a n b e c o n fu sin g a t first, b u t c o m m o n se n se w ill te ll y o u th a t if y o u p la n n e d
fo r a c e rta in a m o u n t o f w o rk (p la n n e d v a lu e ) b y th e th ird w e e k o f a p ro je c t, a n d th e a c tu a l
w o rk d o n e (e a rn e d v a lu e ) is c lo se r to th e a m o u n t th a t sh o u ld h a v e b e e n c o m p le te d b y th e
se c o n d w e e k , th e p ro je c t is fa llin g b e h in d sc h e d u le . S im ila rly , if y o u e x p e c te d to g e t a c e rta in
a m o u n t o f w o rk d o n e fo r a sp e c ific c o st (e a rn e d v a lu e ) b u t it c o st m o re th a n y o u p la n n e d to
g e t th a t a m o u n t d o n e (a c tu a l c o st), th e p ro je c t is o v e r b u d g e t.
A sim p le w a y to d e te rm in e if a p ro je c t is m e e tin g its sc h e d u le is to c a lc u la te th e sc h e d u le
v a ria n c e . T h e sc h e d u le v a ria n c e is c a lc u la te d b y su b tra c tin g th e p la n n e d v a lu e a t a sp e c ific
p o in t in tim e fro m th e e a rn e d v a lu e a t th a t sa m e tim e p o in t. If th e re su lt o f th e c a lc u la tio n is a
p o sitiv e n u m b e r, th e p ro je c t is ru n n in g a h e a d o f sc h e d u le ; if th e re su lt is a n e g a tiv e n u m b e r,
th e p ro je c t is ru n n in g b e h in d th e p la n .
S im ila rly , p ra c titio n e rs c a n d e te rm in e w h e th e r th e p ro je c t is u n d e r o r o v e r b u d g e t b y
c a lc u la tin g th e c o st v a ria n c e . C o st v a ria n c e is c a lc u la te d b y su b tra c tin g th e a c tu a l c o st fro m
th e e a rn e d v a lu e . A g a in , if th e c a lc u la tio n re su lt is a p o sitiv e n u m b e r, th e p ro je c t is u n d e r
b u d g e t a t th a t p o in t in tim e ; if th e re su lt is a n e g a tiv e n u m b e r, y o u r p ro je c t is o v e r b u d g e t.
T h e se c o n c e p ts a re illu stra te d in th e e x a m p le b e lo w .
A cco rd in g to th e g rap h ab o v e, th is p ro ject is th ree an d a
h alf m o n th s alo n g an d is ex p ected to tak e six m o n th s. T h e
p lan n ed v alu e lin e sh o w s th e ag g reg atio n o f ex p ected
activ ity co sts at ev ery stag e o f th e p ro ject. It is ex p ected to
co st $ 2 0 ,0 0 0 at th e 3 .5 -m o n th m ark , an d its b u d g et at
co m p letio n is ex p ected to b e $ 3 9 ,0 0 0 . T h e earn ed v alu e lin e in d icates th at th e v alu e o f th e w o rk
p erfo rm ed u p u n til th e 3 .5 -m o n th is v alu ed at $ 2 5 ,0 0 0 .
T h is m ean s th at th e p ro ject h as p ro d u ced $ 2 5 ,0 0 0 w o rth o f
th e to tal p ro ject w o rk p ack ag es p lan n ed fo r an d
rep resen ted b y th e p lan n ed v alu e lin e.
E a rn ed V a lu e - P la n n ed V a lu e = S ch ed u le V a ria n ce
$ 2 5 ,0 0 0 - $ 2 0 ,0 0 0 = $ 5 ,0 0 0
B ecau se earn ed v alu e can o n ly b e ag g reg ated w ith resp ect
to th e p lan n ed v alu e o f th e w o rk p ack ag es, sch ed u le
v arian ce can also b e calcu lated b y co m p arin g th e w o rk
p ack ag es th at h av e b een co m p leted to th e w o rk p ack ag es
th at w ere ex p ected to b e co m p leted at th at p o in t in tim e.
T h e p ro ject, as o f th e d ata d ate, h as co m p leted ab o u t 1 2 5
w o rk p ack ag es, an d it w as su p p o sed to co m p lete ab o u t 1 0 0
b y th is tim e.
E a rn ed V a lu e - P la n n ed V a lu e = S ch ed u le V a ria n ce
1 2 5 w o rk p a ck a g es - 1 0 0 w o rk p a ck a g es = 2 5 w o rk p a ck a g es
S ch ed u le v arian ce is m o st h elp fu l w h en y o u calcu late it fo r
th e critical p ath b ecau se th e critical p ath co n tain s th e w o rk
p ack ag es th at m u st b e co m p leted o n tim e in o rd er fo r th e
p ro ject to b e d eliv ered o n tim e. F o r th is ex ercise, w e w ill
stip u late th at th e d ata ab o v e rep resen ts th e d ata fo r th e
critical p ath .
S ch ed u le v a ria n ce sh o u ld n o t b e co n fu sed w ith co st
v a ria n ce, ev en th o u g h b o th v arian ces are q u an tified in
d o llars.
T h e actu al co st o f th e w o rk p erfo rm ed to d ate is illu strated
b y th e g rap h . A cco rd in g to th e g rap h , th e w o rk p erfo rm ed
as o f th e 3 .5 -m o n th m ark h as co st $ 3 2 ,0 0 0 in stead o f its
ex p ected earn ed v alu e o f $ 2 5 ,0 0 0 .
E a rn ed V a lu e - A ctu a l C o st = C o st V a ria n ce
$ 2 5 ,0 0 0 - $ 3 2 ,0 0 0 = -$ 7 0 0 0 P ro je c t p ra c titio n e rs a re o fte n a sk e d h o w c lo se th e p ro je c t is to b e in g d o n e . A n e a sy m e tric to
u se to p ro v id e th is in fo rm a tio n is th e p ro je c t's p e rc e n ta g e o f c o m p le tio n . B y d iv id in g th e
e a rn e d v a lu e u p to th a t p o in t in tim e b y th e p la n n e d v a lu e a t th e c o m p le tio n o f th e p ro je c t
y o u 'll b e a b le to c a lc u la te w h a t p e rc e n t o f th e p ro je c t is c o m p le te .
C h a n g e M a n a g e m e n t
V e ry fe w p ro je c ts— e v e n th e sim p le st a n d
sm a lle st o n e s— a re c o m p le te d w ith o u t h a v in g
a re q u e st fo r c h a n g e in so m e fo rm .
C irc u m sta n c e s sh ift, p ric e s flu c tu a te , a n d risk s
d e v e lo p th a t c o u ld n o t b e p re d ic te d . P ro c e sse s
m a y n e e d to b e a d ju ste d b e c a u se th e y a re n o t
w o rk in g a s p la n n e d . A n d a sta k e h o ld e r m a y
re q u e st a c h a n g e to a n y p a rt o f a p ro je c t a t a n y
tim e . C h a n g e s w ill h a p p e n — th e y c a n 't b e
a v o id e d — so it is v e ry im p o rta n t to se t u p a n
e ffe c tiv e p ro c e ss to h e lp d e a l w ith c h a n g e a n d
e n su re th a t it d o e sn 't d e la y o r d e ra il th e p ro je c t.
H o w p e o p le m a n a g e c h a n g e w ill d e p e n d o n h o w th e y v ie w c h a n g e . T h e p ro je c t te a m a n d
p e rfo rm in g o rg a n iz a tio n m a y v ie w c h a n g e (a s m a n y tra d itio n a l p ro je c t m a n a g e m e n t
o rg a n iz a tio n s d o ) a s so m e th in g th a t n e e d s to b e a v o id e d a n d , if p o ssib le , e lim in a te d . P e o p le
in a n A g ile o rg a n iz a tio n m a y e m b ra c e c h a n g e a s a w a y to e n su re th a t p ro je c t re su lts re fle c t
th e la te st c u sto m e r n e e d s. O r p e o p le m a y v ie w c h a n g e m a n a g e m e n t a s a p ro c e ss th a t n e e d s to
b e stre a m lin e d a n d o p tim iz e d a s m u c h a s p o ssib le , a s L e a n p ra c titio n e rs d o . In w h a te v e r w a y
th e y v ie w c h a n g e , p ro je c t p a rtic ip a n ts w ill n e e d to th in k a b o u t h o w th e y 'll a n a ly z e a n y
c h a n g e s a n d th e ir im p a c ts o n th e p ro je c t a s w e ll a s h o w th e y 'll im p le m e n t o r re je c t c h a n g e
re q u e sts.
T h e C h a n g e R e q u e s t F o r m
A n e ffe c tiv e w a y to tra c k a n d m o n ito r c h a n g e s a n d c h a n g e re q u e sts is to d e v e lo p a c h a n g e
re q u e st fo rm . T h is fo rm w ill a llo w th e p ro je c t te a m to d o c u m e n t re q u e sts fo r p ro je c t c h a n g e s
a n d to m o n ito r th e re su lts o f th o se re q u e sts. It w ill se rv e a s a re c o rd th a t th e y c a n re fe r to in
re tro sp e c t to h e lp to d e v e lo p le sso n s le a rn e d a n d to u n d e rsta n d w h y a p ro je c t's fin a l re su lt
m a y d iffe r fro m in itia l p la n s.
E v en th o u g h th e p ro ject is cu rren tly ah ead o f sch ed u le
($ 5 0 0 0 o r b y 2 5 w o rk p ack ag es), its actu al co st o v erru n s
th e earn ed v alu e o f th e w o rk co m p leted b y $ 7 0 0 0 . P ro je c t
T itle
R e c o rd th e p ro je c t title a n d d a te o f th e re q u e st. T h is w ill b e h e lp in a rc h iv in g
a n d re fe re n c in g th e d o c u m e n t in le sso n s le a rn e d m e e tin g s.
D a te
C h a n g e
R e q u e st
D e sc rib e th e re q u e ste d c h a n g e in d e ta il. In c lu d e in fo rm a tio n a s to w h y th e
c h a n g e is n e e d e d a s w e ll a s a n y in fo rm a tio n o n w h ic h p o rtio n s o f th e p ro je c t
(sc o p e , b u d g e t, sc h e d u le , q u a lity , e tc .) th e c h a n g e m a y a ffe c t. C o n sid e r
a d d in g a u n iq u e id e n tific a tio n c o d e o r n u m b e r th a t c a n b e u se d to q u ic k ly
re fe re n c e th e c h a n g e in d isc u ssio n s.
R e q u e stin g
P a rty
R e c o rd th e n a m e o f th e p e rso n (o r p e rso n s) re q u e stin g th e c h a n g e . C o n sid e r
in c lu d in g c o n ta c t in fo rm a tio n fo r th is p e rso n a n d h is/h e r ro le o n th e p ro je c t.
Im p a c t E x p la in a n y p o te n tia l im p a c ts th a t th e c h a n g e m a y h a v e o n th e p ro je c t.
C o n sid e r th e e ffe c t o n th e p ro je c t's sc o p e , sc h e d u le , b u d g e t, q u a lity , risk ,
p ro c e sse s, a n d p ro d u c t c h a ra c te ristic s.
S ta tu s C la ssify th e c h a n g e re q u e st a s "o p e n /in p ro c e ss," "a p p ro v e d ," "re je c te d ," o r
"e sc a la te d " (to a h ig h e r le v e l). If th e re q u e st is re je c te d o r e sc a la te d , sta te th e
re a so n in g b e h in d th e d e c isio n .
A p p ro v a l
S ig n a tu re
H a v e th e re q u e st sig n e d b y th e p e rso n re sp o n sib le fo r a c c e p tin g o r re je c tin g
th e re q u e st. M a n a g in g a n d M o n ito r in g C h a n g e
O n c e th e c h a n g e re q u e st fo rm h a s b e e n d e v e lo p e d , th e p ro je c t m a n a g e r a n d p ro je c t te a m w ill
n e e d to d e c id e w h o w ill o w n th e c h a n g e m a n a g e m e n t p ro c e ss a n d w h o h a s th e a u th o rity to
a c c e p t o r re je c t th e re q u e st. T h e p ro je c t m a n a g e r m a y h a v e so m e p o w e r to m a k e c h a n g e s (a s
p e r th e p ro je c t c h a rte r o r in stru c tio n s fro m se n io r m a n a g e m e n t) b u t so m e c h a n g e s—
e sp e c ia lly th o se th a t d ra stic a lly a ffe c t p ro je c t p a ra m e te rs o r o b je c tiv e s— m a y n e e d to b e
a p p ro v e d b y so m e o n e w ith h ig h e r a u th o rity . P ro je c t le a d e rs a n d e x e c u tiv e s m a y e v e n c h o o se
to c re a te a c h a n g e c o n tro l b o a rd o f k e y te a m m e m b e rs a n d p ro je c t p a rtic ip a n ts to a n a ly z e a n d
a u th o riz e p ro je c t c h a n g e s. T h is c h a n g e -c o n tro l g ro u p sh o u ld in c lu d e p e o p le w h o h a v e a
w o rk in g k n o w le d g e o f th e p ro je c t a n d its in te n d e d o b je c tiv e s, a s w e ll a s a n u n d e rsta n d in g o f
th e p ro je c t's p la c e in fu rth e rin g o rg a n iz a tio n a l g o a ls. T h e y sh o u ld h a v e th e p o w e r to g e t
th in g s d o n e a n d th e re sp o n sib ility to e n su re th a t th e c h a n g e s w ill b e p ro p e rly im p le m e n te d .
T h e ir a p p ro v a l o f a c h a n g e re q u e st w ill lik e ly d e p e n d o n fa c to rs su c h a s th e c o st o f th e
c h a n g e , th e e ffe c t th a t th e c h a n g e m a y h a v e o n th e p ro je c t sc h e d u le , o r sp e c ific re q u ire m e n ts
liste d in a c o n tra c t. If th e c h a n g e w ill sig n ific a n tly d isru p t th e p ro je c t o r d o e s n o t a lig n w ith
stra te g ic g o a ls, th e y m a y d e c id e to d e n y th e c h a n g e re q u e st.
T h e c h a n g e c o n tro l p ro c e ss th a t is d e v e lo p e d c a n b e v e ry in fo rm a l b u t p ra c titio n e rs sh o u ld
still e sta b lish p o lic ie s in th e P la n n in g sta g e to d e a l w ith a n y m id -p ro je c t c h a n g e s, e v e n if
th o se p o lic ie s a re sim p le g u id e lin e s. A ll c h a n g e re q u e sts sh o u ld b e fu n n e le d th ro u g h so m e
so rt o f m o n ito rin g a n d m a n a g e m e n t p ro c e ss to e n su re th a t th e y a re a n a ly z e d p ro p e rly a n d
im p le m e n te d o n ly if th e y fa ll w ith in th e p ro je c t p a ra m e te rs. C h a n g e s m u st b e c o o rd in a te d a n d
c o n tro lle d to p re v e n t th e m fro m d isru p tin g p ro je c t w o rk a n d c o m p ro m isin g th e p ro je c t.
C o n t r a c t a n d V e n d o r M a n a g e m e n t
A s a p ro je c t is p la n n e d , p ra c titio n e rs m a y fin d
th a t th e y 'll h a v e to a c q u ire o r p u rc h a se su p p lie s
a n d re so u rc e s fro m o u tsid e so u rc e s to c o m p le te
so m e o f th e p ro je c t a c tiv itie s.
T h e re a re se v e ra l ste p s th a t th e y 'll n e e d to ta k e
to m a n a g e th is p ro c e ss e ffe c tiv e ly :
D e c id in g w h a t th e y 'll n e e d to a c q u ire
S e le c tin g th e a p p ro p ria te v e n d o r fo r th e
re so u rc e s th e y 'll n e e d
N e g o tia tin g a n d sig n in g a c o n tra c t to
a c q u ire th o se re so u rc e s
M a n a g in g c o n tra c t a n d v e n d o r c o m p lia n c e
B e c a u se th e se d e c isio n s c a n h a v e le g a l a n d a c c o u n tin g im p lic a tio n s, it is v e ry im p o rta n t to
c o n sid e r th e m c a re fu lly a n d a d d re ss th e m a p p ro p ria te ly to e n su re th a t th e p ro je c t is
su c c e ssfu l. D e c id in g W h a t W ill N e e d to B e A c q u ir e d
T o h e lp d e c id e w h a t re so u rc e s w ill b e n e e d e d o n th e p ro je c t, ta k e a q u ic k lo o k a t th e
p ro je c t's sc o p e , sc h e d u le , a n d c o st b a se lin e s. A q u ic k re v ie w o f th e se d o c u m e n ts sh o u ld
sh o w w h a t a c tiv itie s n e e d to b e p e rfo rm e d , w h e n th o se a c tiv itie s n e e d to b e c o m p le te d ,
a n d h o w m u c h m o n e y is n e e d e d to c o m p le te th e n e e d e d w o rk . T h e n d e c id e if th e re a re
re so u rc e s in -h o u se to c o m p le te th e w o rk o r if th e re is b u d g e t a v a ila b le to a c q u ire o u tsid e
h e lp .
If re so u rc e s o r se rv ic e s fro m o u tsid e so u rc e s n e e d to b e p ro c u re d , p u t so m e th o u g h t in to
th is p ro c e ss to e n su re th a t it g o e s a s q u ic k ly a n d sm o o th ly a s p o ssib le . M a k e su re th a t a n y
d ire c tio n s se n t to v e n d o rs c o n ta in e n o u g h in fo rm a tio n to a llo w th e m to c o rre c tly b id o n
th e p ro je c t w ith o u t lim itin g th e ir in p u t o n th e b e st w a y to m e e t p ro je c t re q u ire m e n ts.
C o n sid e r th e tim e a n d e ffo rt th a t m a n a g in g a n o u tsid e re la tio n sh ip w ill ta k e a n d a d ju st
p la n s a s n e e d e d . A n d c o m m it to a n o n g o in g re la tio n sh ip w ith th e v e n d o r to e n su re th a t
b o th p a rtie s b e n e fit fro m p ro je c t re su lts.
A s w ith a ll o f th e o th e r p ro c e sse s u se d to ru n p ro je c ts, ta ilo r th is p ro c e ss a s n e c e ssa ry to
su it p ro je c t n e e d s a n d m e e t o rg a n iz a tio n a l re q u ire m e n ts.
S e le c tin g V e n d o r s
P ro je c t m a n a g e rs w ill n e e d to th in k a b o u t w h a t c rite ria th e y w ill u se to c h o o se th e
so u rc e s th e y 'll p ro c u re fro m . M a n a g e rs m a y fin d th a t th e ir o rg a n iz a tio n h a s a list o f
p re v io u s v e n d o rs o r "p re q u a lifie d " su p p lie rs to w o rk w ith , m a k in g th is e ffo rt e a sie r to
u n d e rta k e a n d m a n a g e .
If, h o w e v e r, th e o rg a n iz a tio n d o e s n o t h a v e th is ty p e o f list, th e p ro je c t m a n a g e r w ill h a v e
to ta lk to k e y sta k e h o ld e rs a n d p ro je c t te a m m e m b e rs to d e v e lo p so m e se le c tio n c rite ria .
H e o r sh e m a y d e c id e to c h o o se a v e n d o r b a se d o n p ric e a lo n e o r m a y c o n sid e r o th e r
fa c to rs (lik e th e o n e s b e lo w ) b e fo re a d e c isio n is m a d e :
H o w w e ll th e v e n d o r u n d e rsta n d s th e p ro je c t n e e d s
H o w w e ll th e v e n d o r m a tc h e s th e siz e a n d ty p e o f b u sin e ss th e te a m w o u ld lik e to
w o rk w ith
H o w w e ll th e v e n d o r w ill b e a b le to m e e t th e te c h n ic a l n e e d s o f th e p ro je c t
H o w w e ll th e v e n d o r w ill b e a b le to m a n a g e its p a rt o f th e p ro je c t
H o w w e ll th e v e n d o r h a s p e rfo rm e d o n p re v io u s c o n tra c ts w ith th e o rg a n iz a tio n
H o w sa tisfie d th e v e n d o r's p re v io u s c u sto m e rs w e re w ith th e w o rk p ro d u c e d
W h o a ssu m e s th e risk (a n d a sso c ia te d c o sts) fo r th e v e n d o r's p o rtio n o f th e w o rk
C a re fu lly c h o o sin g a n d e x p la in in g th e p ro je c t's se le c tio n c rite ria w ill e n su re th a t th e
se le c tio n p ro c e ss is a s o p e n a n d fa ir a s p o ssib le a n d sh o u ld c u rta il a ssu m p tio n s a n d
m isu n d e rsta n d in g a s to w h y a sp e c ific v e n d o r w a s c h o se n . S e le c tin g a n d N e g o tia tin g th e C o n tr a c t
In m a n y c a se s p ro je c t p ra c titio n e rs m a y n e e d to d ra w u p a n d sig n a c o n tra c t w ith o u tsid e
so u rc e s to e n su re th a t w o rk is c o m p le te d a s n e e d e d .
B e c a u se c o n tra c ts a re fo rm a l d o c u m e n ts w ith le g a l ra m ific a tio n s, it is in th e te a m
m e m b e rs' b e st in te re st to b e w e ll-v e rse d in th e ir c re a tio n a n d u se :
T h e y w ill n e e d to th in k a b o u t h o w th e c o n tra c ts to b e u se d w ill b e p re p a re d
T h e y w ill n e e d to a g re e w ith su p p lie rs a n d v e n d o rs o n a c o n tra c t th a t m e e ts b o th
p a rtie s n e e d s
T h e y w ill n e e d to m o n ito r c o n tra c t p e rfo rm a n c e th ro u g h o u t its e x iste n c e
T h e y w ill n e e d to b e su re th a t th e y c lo se th e c o n tra c t a p p ro p ria te ly
C o n tr a c t T y p e s
M o st c o n tra c ts c a n b e c la ssifie d in to tw o b a sic ty p e s— fix e d -p ric e c o n tra c ts a n d c o st-
re im b u rsa b le c o n tra c ts— w ith a th ird o p tio n , tim e a n d m a te ria l c o n tra c ts, th a t re p re se n ts a
h y b rid o f th e o th e r tw o . G re a te r d e ta il o n th e se c o n tra c ts ty p e s, a s w e ll a s tip s fo r
n e g o tia tin g v e n d o r c o n tra c ts, w ill b e d isc u sse d in fu tu re a ssig n m e n ts in th is c o u rse .
M a n a g in g V e n d o r s
O n c e a n a g re e m e n t is e n te re d in to w ith a v e n d o r, th e p ro je c t le a d e r m u st h a n d le th is
re la tio n sh ip c a re fu lly . A t its c o re , v e n d o r m a n a g e m e n t is a b o u t w o rk in g w ith a p a rtn e r-
o rg a n iz a tio n to re a c h a d e a l th a t b e n e fits b o th p a rtie s.
T o e n c o u ra g e a b e n e fic ia l re la tio n sh ip , le a d e rs m a y h a v e to w o rk w ith v e n d o rs to h e lp
th e m u n d e rsta n d p ro je c t o p e ra tio n s. P ro je c t m a n a g e rs m ig h t h a v e to e x p la in p ro je c t
b a sic s, d isc u ss h o w v e n d o rs w ill a ffe c t a n d b e a ffe c te d b y th e w o rk , a n d c la rify h o w th e y
a re e x p e c te d to in te ra c t w ith p ro je c t p ra c titio n e rs. V e n d o rs sh o u ld b e e n c o u ra g e d to a sk
q u e stio n s if a n y p a rts o f th e p ro je c t a re u n c le a r, a n d th e y sh o u ld b e in v ite d to sp e c ific
m e e tin g s to h e lp th e m b e tte r u n d e rsta n d a n d in te ra c t w ith te a m s.
T h e p ro je c t m a n a g e r w ill a lso h a v e to m o n ito r v e n d o r w o rk to e n su re th a t it c o m p lie s
w ith p ro je c t n e e d s a n d o b je c tiv e s. M a n a g e rs w ill h a v e to c o n sid e r th e v e n d o r's
p e rfo rm a n c e o n th e sc o p e , q u a lity , sc h e d u le , a n d c o st issu e s in c lu d e d in th e c o n tra c t. A n y
c la im s o r d isp u te s th a t o c c u r w ill n e e d to b e tra c k e d a n d a re c o rd o f a ll issu e s sh o u ld b e
k e p t in c a se le g a l a c tio n is n e c e ssa ry . T h e te a m sh o u ld a lso d o c u m e n t h o w e a sy (o r
d iffic u lt) th e v e n d o r w a s to w o rk w ith a n d h o w w e ll th e y m e t th e re q u ire m e n ts se t fo rth
in th e c o n tra c t. B y tra c k in g a n d d o c u m e n tin g th is in fo rm a tio n , a re c o rd (th a t c a n b e
a c c e sse d b y a n y o n e c o n sid e rin g th is v e n d o r fo r fu tu re c o n tra c t w o rk ) w ill b e c re a te d a n d
v a lu a b le in p u t fo r fu tu re c o n tra c tin g d e c isio n s w ill b e p ro v id e d . P r o je c t S c o p e M a n a g e m e n t
W h a t is P r o je c t S c o p e M a n a g e m e n t?
P ro je c t sc o p e m a n a g e m e n t fo c u se s o n d e fin in g a n d c o n tro llin g w h a t is
a n d is n o t in c lu d e d in th e p ro je c t. It e n c o m p a sse s a ll th e p ro c e sse s
n e e d e d to e n su re th a t th e p ro je c t in c lu d e s a ll th e w o rk re q u ire d , b u t
o n ly th e w o rk re q u ire d , to c o m p le te th e p ro je c t su c c e ssfu lly .
T h e te rm sc o p e c a n re fe r to p ro d u c t sc o p e o r p ro je c t sc o p e . P ro d u c t
sc o p e d e fin e s th e fe a tu re s a n d fu n c tio n s th a t c h a ra c te riz e a p ro d u c t,
se rv ic e , o r re su lt. In c o n tra st, p ro je c t sc o p e id e n tifie s th e w o rk th a t
n e e d s to b e a c c o m p lish e d to d e liv e r a p ro d u c t, se rv ic e , o r re su lt w ith
th e sp e c ifie d fe a tu re s a n d fu n c tio n s.
P r e v e n tin g S c o p e C r e e p
W h e n p ro je c t p ra c titio n e rs fo c u s o n p ro je c t sc o p e , th e y n e e d to e n su re th a t a ll th e w o rk g e ts
d o n e to c o m p le te th e p ro je c t. H o w e v e r, th e y a lso n e e d to e n su re th a t e x tra w o rk is n o t a d d e d
to th e p ro je c t u n e x p e c te d ly . C h a n g e is in e v ita b le in m o st p ro je c ts so m a n a g in g p ro je c t sc o p e
a n d p re v e n tin g u n n e c e ssa ry sc o p e e x p a n sio n c a n b e p a rtic u la rly c h a lle n g in g .
E v e n w h e n a p ro je c t se e m s w e ll d e fin e d a n d w e ll m a n a g e d , it m a y e n c o u n te r sc o p e c re e p .
S c o p e c re e p is th e g ro w th o r c h a n g e o f p ro je c t re q u ire m e n ts. O n e w a y to m a n a g e sc o p e c re e p
is to v a lid a te th e sc o p e o f th e p ro je c t th ro u g h o u t its life c y c le .
V a lid a tin g sc o p e fo r a p ro je c t a n d m in im iz in g sc o p e c h a n g e s c a n b e d iffic u lt. S c o p e
v a lid a tio n a c tiv itie s a re e sp e c ia lly im p o rta n t in p ro je c ts b e c a u se th e y h e lp th e p ro je c t te a m
d e te rm in e w h e th e r th e p ro je c t is o n tra c k o r is e x p a n d in g b e y o n d its o rig in a l c h a rte r.
T o o ls fo r S c o p e C o n tr o l
P ro je c t p ra c titio n e rs c a n u se v a rio u s to o ls to c o n tro l p ro je c t sc o p e :
A F o r m a l C h a n g e C o n tr o l S y ste m
A c h a n g e c o n tro l sy ste m is a fo rm a l, d o c u m e n te d p ro c e ss th a t d e sc rib e s w h e n a n d h o w
o ffic ia l p ro je c t d o c u m e n ts m a y b e c h a n g e d .
C o n fig u r a tio n M a n a g e m e n t
C o n fig u ra tio n m a n a g e m e n t e n su re s th a t th e d e sc rip tio n s o f th e p ro je c t's p ro d u c ts a re
c o rre c t a n d c o m p le te . C h a n g e s to th e c h a ra c te ristic s o f a p ro je c t m u st b e re c o rd e d a n d
re p o rte d a s a p a rt o f c o n fig u ra tio n m a n a g e m e n t. R e p la n n in g
R e p la n n in g th e p ro je c t sc o p e m a y b e re q u ire d , if th e a p p ro v e d c h a n g e s sig n ific a n tly a lte r
th e o rig in a lly p la n n e d p ro je c t.
V a r ia n c e A n a ly sis
W h e n c o n d u c tin g v a ria n c e a n a ly sis, p ro je c t p e rfo rm a n c e m e a su re m e n ts a re c o m p a re d
w ith th e sc o p e b a se lin e . T h e p ro je c t m a n a g e r is in te re ste d in u n d e rsta n d in g th e c a u se o f
th e v a ria n c e b e tw e e n th e a c tu a l p ro je c t a n d th e b a se lin e . T h e v a ria n c e a n d its c a u se w ill
h e lp to d e te rm in e w h e th e r c o rre c tiv e a c tio n is n e e d e d .
T h e Im p o r ta n c e o f E ffe c tiv e S c o p e M a n a g e m e n t
T a k in g th e tim e to d e fin e a p ro je c t's sc o p e is a n im p o rta n t c o n trib u to r to p ro je c t su c c e ss.
E ffe c tiv e p ro je c t sc o p e p la n n in g p ro v id e s se v e ra l b e n e fits fo r a n y p ro je c t, su c h a s:
Im p ro v in g th e a c c u ra c y o f tim e , c o st, a n d re so u rc e e stim a te s
P ro v id in g a b a se lin e fo r p e rfo rm a n c e m e a su re m e n t a n d p ro je c t c o n tro l
H e lp in g to c o m m u n ic a te c le a r w o rk re sp o n sib ilitie s
C o n firm in g a c o m m o n u n d e rsta n d in g o f th e p ro je c t sc o p e a c ro ss a ll sta k e h o ld e r g ro u p s
F a ilu re to e ffe c tiv e ly p la n sc o p e m a n a g e m e n t p ra c tic e s fo r a p ro je c t c a n c a u se c o u n tle ss
issu e s a n d c a n re su lt in lo st tim e , m o n e y , a n d e ffo rt a s p ro je c t p ra c titio n e rs stru g g le w ith
p ro je c t o b je c tiv e s th a t a re m o v in g ta rg e ts. T h e w a ste a sso c ia te d w ith e x e c u tin g u n n e e d e d o r
u n n e c e ssa ry p ro je c t a c tiv itie s c a n slo w p ro d u c tiv ity , fru stra tin g th e p ro je c t te a m to th e p o in t
th a t it c a n se rio u sly d a m a g e te a m m o ra le .
S e t t in g P r o je c t B o u n d a r ie s W it h t h e S c o p e S t a t e m e n t
T o p ro p e rly d e fin e a p ro je c t's sc o p e , th e p ro je c t te a m w ill n e e d to c re a te a n e ffe c tiv e sc o p e
sta te m e n t. T h e sc o p e sta te m e n t e sta b lish e s th e b o u n d a rie s th a t th e w o rk m u st b e p e rfo rm e d
w ith in , e n c o m p a ssin g a ll th e w o rk , tim e , a n d c o st n e e d e d to c o m p le te th e p ro je c t
su c c e ssfu lly .
S ta k e h o ld e rs a n d te a m m e m b e rs a lik e m u st u n d e rsta n d th e sc o p e o f a p ro je c t so th e y c a n
c a rry o u t th e ir ro le s a p p ro p ria te ly . T h e p ro je c t sc o p e a c ts a s a c ru c ia l b a se lin e m e a su re m e n t
— b y d e lin e a tin g w h a t n e e d s to b e a c c o m p lish e d , th e sc o p e sta te m e n t p ro v id e s a re fe re n c e
p o in t th a t th e te a m c a n u se to m e a su re th e ir a b ility to m e e t p ro je c t e x p e c ta tio n s. A ll w o rk
p e rfo rm e d b y th e te a m o r w o rk c h a n g e re q u e sts su b m itte d b y sta k e h o ld e rs is m e a su re d
a g a in st th e in itia l sc o p e o f th e p ro je c t to e n su re th a t th e p ro je c t re m a in s o n tra c k . T h e p ro je c t
te a m w ill u se th e sc o p e sta te m e n t a s a g u id e a s th e y e x e c u te p ro je c t a c tiv itie s, to e n su re th a t
th e p ro je c t c o n tin u e s a lo n g th e p a th se t fo rth a t th e b e g in n in g o f th e p ro je c t.
A n e ffe c tiv e sc o p e sta te m e n t w ill d e sc rib e th e p ro je c t a n d p ro d u c t sc o p e in e n o u g h d e ta il so
p ra c titio n e rs c a n m e a su re p ro je c t p ro g re ss a g a in st e x p e c ta tio n s. T h e se d e sc rip tio n s m a y b e
u p d a te d a n d re fin e d a s th e p ro je c t c o n tin u e s a n d m o re in fo rm a tio n is g a th e re d o r d isc lo se d . T o d ra ft a c o m p re h e n siv e sc o p e sta te m e n t, p ro je c t p ra c titio n e rs n e e d to c o n sid e r th e
fo llo w in g c o m p o n e n ts:
A d e sc rip tio n o f th e p ro d u c t's c h a ra c te ristic s o r w h a t it is d e sig n e d to d o (w h ic h m a y
in c lu d e p ro d u c t in c re m e n ts o r in te rim d e liv e ra b le s p ro d u c e d d u rin g th e p ro je c t)
C rite ria th a t m u st b e m e t b e fo re sta k e h o ld e rs w ill a c c e p t th e d e liv e ra b le s
S p e c ific d e ta ils a b o u t w h a t w ill n o t b e c o n ta in e d in th e p ro je c t
A ssu m p tio n s m a d e a b o u t th e p ro je c t o r c o n d itio n s th a t e x ist o r a re e x p e c te d to e x ist
d u rin g th e p ro je c t
A n y c o n stra in ts, ru le s, re g u la tio n s, o r o th e r fa c to rs th a t m a y lim it w o rk d u rin g th e p ro je c t
S c o p e sta te m e n ts, lik e o th e r a sp e c ts o f a p ro je c t, m a y b e a s fo rm a l, c o m p le x , o r e x te n siv e a s
n e e d e d , b a se d o n th e siz e a n d c o m p le x ity o f th e p ro je c t. S o m e p ro je c ts m a y b e a b le to u se
sim p le , u n c o m p lic a te d sc o p e sta te m e n ts lik e th e fo llo w in g :
"C o riu s C o rp o ra tio n w ill d e v e lo p a n e w m o b ile a p p lic a tio n fo r u se in ta b le ts a n d la p to p s. T h e
a p p w ill a llo w C o riu s c u sto m e rs to a c c e ss th e ir a c c o u n ts fro m re m o te lo c a tio n s b u t w ill n o t
a llo w n e w c u sto m e rs to sig n u p fo r C o riu s' se rv ic e . T h e a p p w ill b e a v a ila b le to th e m a rk e t in
six w e e k s a n d p ro je c t c o sts w ill n o t e x c e e d $ 1 2 ,0 0 0 . D e v e lo p m e n t w ill b e b a se d o n e x istin g
C o riu s IP ; n o o u tsid e re so u rc e s w ill b e u se d in d e v e lo p m e n t."
O th e r p ro je c ts w ill re q u ire m o re -d e ta ile d , m u lti-p a g e d d e sc rip tio n s lik e th e o n e s liste d b e lo w :
S c o p e S ta te m e n t fo r T h e N o rth C a ro lin a D e p a rtm e n t o f th e S ta te T re a su re r D e b t
M a n a g e m e n t P ro je c t
S c o p e S ta te m e n t fo r th e F o re sts a n d R a n g e la n d s F ire P ro g ra m A n a ly sis
C o lle c t in g R e q u ir e m e n t s a n d D e fin in g S c o p e
A p ro je c t's sc o p e w ill u ltim a te ly b e b a se d o n th e n e e d s a n d re q u ire m e n ts o f its sta k e h o ld e rs.
T o g u a ra n te e th a t th e p ro je c t w ill b e v ie w e d a s a su c c e ss, th e p ro je c t te a m w ill h a v e to g a th e r
a n d p rio ritiz e th e se re q u ire m e n ts to e n su re th a t th e sc o p e o f th e p ro je c t e n c o m p a sse s a ll o f
th e se n e e d s a n d th a t th e p ro je c t w ill m e e t th e m o st im p o rta n t sta k e h o ld e rs' re q u ire m e n ts to
th e ir sa tisfa c tio n .
C o lle c tin g re q u ire m e n ts m a y in c lu d e a c tiv itie s su c h a s:
C o n d u c tin g in te rv ie w s, fo c u s g ro u p s, o r fa c ilita te d w o rk sh o p s w ith se le c t g ro u p s o f
sta k e h o ld e rs
P ro v id in g q u e stio n n a ire s a n d su rv e y s th a t u n c o v e r e x p e c ta tio n s a n d h e lp re fin e
re q u ire m e n ts
E x e c u tin g b e n c h m a rk in g c o m p a riso n s o r d e v e lo p in g c o n te x t d ia g ra m s th a t h e lp in
e lic itin g a n d u n d e rsta n d in g re q u ire m e n ts
D e v e lo p in g p ro to ty p e s a n d o b se rv in g c u sto m e rs in te ra c tin g w ith p ro d u c ts (o r p ro d u c t
in c re m e n ts) to u n c o v e r u n sp o k e n (o r e v e n u n k n o w n ) re q u ire m e n ts
A n a ly z in g d o c u m e n ta tio n a n d re v ie w in g le sso n s le a rn e d fro m p re v io u s p ro je c ts to e x p o se
p itfa lls o r m issin g re q u ire m e n ts fro m p re v io u s w o rk In te r v ie w s , F o c u s G r o u p s , a n d F a c ilita te d W o r k s h o p s
In te rv ie w s, fo c u s g ro u p s, a n d fa c ilita te d w o rk sh o p s a re sim ila r te c h n iq u e s b u t d o h a v e th e ir
d iffe re n c e s.
W h ile a n in te rv ie w c a n b e a fo rm a l o r in fo rm a l q u e stio n -a n d -a n sw e r se ssio n , fo c u s g ro u p s
p ro v id e a m o re c o n v e rsa tio n a l fo rm a t fo r c u llin g th e o p in io n s o f m u ltip le sta k e h o ld e rs. A n d
w h ile in te rv ie w s m a y b e m o re u se fu l to u n c o v e r se n sitiv e o r c o n fid e n tia l in fo rm a tio n th a t
p a rtic ip a n ts a re u n lik e ly to sh a re in a g ro u p se ttin g , fo c u s g ro u p s a re u su a lly m o re in te ra c tiv e
th a n in te rv ie w s a n d c a n b rin g to g e th e r p re q u a lifie d su b je c t e x p e rts o r sta k e h o ld e rs to
b ra in sto rm o r d isc u ss th e ir e x p e c ta tio n s a b o u t a p ro je c t.
F a c ilita te d w o rk sh o p s re se m b le fo c u s g ro u p s in th a t th e y a re v e ry u se fu l fo r b rin g in g to g e th e r
a g ro u p o f c ro ss-fu n c tio n a l sta k e h o ld e rs w h o m a y h a v e d iffe rin g e x p e c ta tio n s fo r p ro je c t
d e liv e ra b le s. H o w e v e r, fa c ilita te d w o rk sh o p s te n d to b e m o re in te ra c tiv e a n d c o n v e rsa tio n a l
th a n fo c u s g ro u p s, so a m p le tim e m u st b e p ro v id e d fo r a ll sta k e h o ld e rs to c o m m u n ic a te th e ir
e x p e c ta tio n s a n d c o n c e rn s. A n d b e c a u se re p re se n ta tiv e s a re p re se n t a c ro ss fu n c tio n s,
p o te n tia l p ro b le m s w ith th e p ro je c t c a n b e id e n tifie d a n d re so lv e d in le ss tim e th a n th ro u g h
in d iv id u a l in te rv ie w s o r sm a lle r fo c u s g ro u p s. T h e g ro u p m ig h t a lso b e n e fit fro m a m o ra le
b o o st a s b o n d s o f tru st a re fo rm e d a c ro ss fu n c tio n a l g ro u p s.
R e fin in g R e q u ir e m e n ts
O n c e re q u ire m e n ts a re d isc o v e re d a n d p rio ritiz e d , th e p ro je c t m a n a g e m e n t te a m n e e d s to
e n su re th a t th e y a re m e a su ra b le , te sta b le , tra c e a b le , c o m p le te , c o n siste n t, a n d th a t
sta k e h o ld e rs w ill b e sa tisfie d w ith th e m . If re q u ire m e n ts a re n 't c o lle c te d in e n o u g h d e ta il, it
w ill b e h a rd to se t o b je c tiv e s th a t w ill u ltim a te ly sa tisfy sta k e h o ld e rs.
T h e re q u ire m e n ts c a n th e n b e in c lu d e d in p ro je c t b a se lin e s so th a t th e y c a n b e u se d in o th e r
p ro c e sse s in th e p ro je c t to m e a su re p ro g re ss a n d c o m p lia n c e .
D o c u m e n tin g a n d T r a c k in g R e q u ir e m e n ts
O n c e re q u ire m e n ts h a v e b e e n u n c o v e re d in a d e q u a te d e ta il, th e y sh o u ld th e n b e c o m p ile d in to
re q u ire m e n ts d o c u m e n ta tio n .
R e q u ire m e n ts d o c u m e n ta tio n d e sc rib e s, in c le a r te rm s, th e w a y in w h ic h p ro je c t re q u ire m e n ts
m e e t th e n e e d fo r th e p ro je c t se t o u t in th e p ro je c t c h a rte r. T h e se d o c u m e n ts m a y b e v e ry
d e ta ile d , o r th e y m a y b e a sim p le su m m a ry th a t re fe rs to o th e r re la te d d o c u m e n ts th a t d isc u ss
th e re q u ire m e n ts in m o re d e ta il.
O n e o f th e m o st h e lp fu l re q u ire m e n ts d o c u m e n ts th a t a te a m c a n c re a te is a re q u ire m e n ts
tra c e a b ility m a trix , to e n su re th a t e a c h re q u ire m e n t id e n tifie d fo r th e p ro je c t c a n b e tra c e d
b a c k to a b u sin e ss o b je c tiv e o r n e e d th a t m u st b e m e t. T h e re q u ire m e n ts m a trix c re a te d
sh o u ld c o n ta in a s m u c h d e ta il a s n e c e ssa ry to m a k e it e a sy to lin k fe a tu re s in p ro je c t re su lts
b a c k to th e ir o rig in , to sh o w th a t p ro je c t d e liv e ra b le s sa tisfy th e n e e d s o f th e p ro je c t. P r o je c t T im e M a n a g e m e n t
O n e o f th e k e y re sp o n sib ilitie s fo r a n y p ro je c t le a d e r is im p le m e n tin g th e p ro c e sse s n e e d e d to
c o m p le te a p ro je c t o n tim e .
P ro je c t tim e m a n a g e m e n t is o n e o f th e b ig g e st c h a lle n g e s fo r p ro je c t le a d e rs a n d p ro je c t
m a n a g e rs. In fa c t, m a n y p ro je c t m a n a g e rs in d ic a te th a t c o o rd in a tin g w o rk in o rd e r to d e liv e r
p ro je c ts o n tim e is o n e o f th e p rim a ry c a u se s o f c o n flic t fo r th e ir te a m s.
W h y is it C h a lle n g in g to D e liv e r P r o je c ts O n -T im e ?
A s o b se rv e rs a sse ss a p ro je c t, o n e o f th e e a sie st th in g s to m e a su re is th e tim e th a t th e p ro je c t
ta k e s, so sc h e d u le p ro b le m s te n d to b e e a sy to sp o t. A n y m in o r d e v ia tio n fro m th e sc h e d u le
w ill b e e a sily se e n b y m a n y , a d d in g stre ss a n d p re ssu re fo r th e p ro je c t te a m to sh o w v isib le
p ro g re ss a n d to k e e p th e p ro je c t e x a c tly o n tra c k . T h is a d d e d stre ss c a n le a d to m ista k e s,
w h ic h o n ly c o m p o u n d s a n y sc h e d u lin g p ro b le m s th a t a lre a d y e x ist. T im e is a lso th e v a ria b le
in a p ro je c t th a t h a s th e le a st a m o u n t o f fle x ib ility , w h ic h c a n a m p lify sc h e d u lin g p ro b le m s.
O th e r fa c to rs th a t m a y c o n trib u te to sc h e d u le c o n flic ts a re in d iv id u a l w o rk sty le s a n d c u ltu ra l
d iffe re n c e s. F o r e x a m p le , if th e p ro je c t te a m is lo c a te d in se v e ra l d iffe re n t c o u n trie s, th e
d iffe re n t re g io n a l a ttitu d e s to w a rd s tim e a n d w o rk c a n c a u se p ro b le m s fo r th e p ro je c t
sc h e d u le .
T h e Im p o r ta n c e o f R e a lis tic S c h e d u le G o a ls
O n e w a y th a t p ro je c t p ra c titio n e rs c a n h e lp to k e e p p ro je c ts o n
sc h e d u le is to d e v e lo p re a listic sc h e d u le g o a ls:
1 . F irst, e x a m in e th e sc h e d u le in fo rm a tio n in th e p ro je c t c h a rte r
a n d th e m ile sto n e c h a rt fro m th e In itia tin g sta g e . T h e se c a n b e
g o o d sta rtin g p o in ts to id e n tify h ig h -le v e l e x p e c ta tio n s a ro u n d
th e sc h e d u le .
2 . N e x t, d e v e lo p a m o re -d e ta ile d sc h e d u le . B e su re to in v o lv e th e
p e o p le w h o w ill d o th e w o rk to h e lp p la n th e w o rk .
3 . F in a lly , o b ta in th e a p p ro v a l o f th e p ro je c t sta k e h o ld e rs.
V a rio u s p re ssu re s m a y le a d th e p ro je c t te a m to u se u n re a listic
sc h e d u le e stim a te s. F o r e x a m p le , to p m a n a g e m e n t m a y p re ssu re
th e p ro je c t m a n a g e r to se t a n a c c e le ra te d p ro je c t sc h e d u le so th a t a
n e w p ro d u c t c a n b e la u n c h e d a t a n im p o rta n t tra d e sh o w .
P ro je c t p a rtic ip a n ts c a n a v o id u n re a listic sc h e d u le s b y in c o rp o ra tin g b u ffe rs o r a d d itio n a l
re so u rc e s in to th e p ro je c t sc h e d u le . F o r e x a m p le , a g o o d p ra c tic e is to sc h e d u le re so u rc e s in
su c h a w a y th a t n o sin g le re so u rc e is u tiliz e d m o re th a n 7 5 p e rc e n t o f th e tim e .
In a d d itio n , p ro je c t p ra c titio n e rs sh o u ld re m e m b e r to in c o rp o ra te c o m p a n y h o lid a y s, v a c a tio n
tim e , a n d sic k tim e in to th e sc h e d u le — th e se "o ff d a y s" c a n d ra m a tic a lly a ffe c t sc h e d u le s if
th e y a re n o t ta k e n in to a c c o u n t d u rin g th e c re a tio n o f th e sc h e d u le . T h e Im p o r ta n c e o f D is c ip lin e d S c h e d u le E n fo r c e m e n t
O n c e th e p ro je c t te a m h a s c re a te d a sc h e d u le w ith re a listic g o a ls a n d e stim a te s, it is e q u a lly
im p o rta n t to e n su re th a t th e sc h e d u le w ill b e m e t b y th e te a m . D isc ip lin e d e n fo rc e m e n t o f
m ile sto n e s is c ritic a l. S e ttin g firm d a te s fo r k e y d e liv e ra b le s c a n h e lp to m in im iz e p ro je c t
c h a n g e s. It is e sp e c ia lly im p o rta n t to a v o id p o o r in stru c tio n s a n d b a d c o m m u n ic a tio n — b o th
a re c le a r so u rc e s o f c o n fu sio n a n d u n c e rta in ty a n d o fte n re su lt in u n n e c e ssa ry o b sta c le s th a t
slo w th e p ro g re ss o f a p ro je c t.
W h e n c o m m u n ic a tin g a b o u t d e a d lin e s a n d m ile sto n e s, sp e c ific ity is c ritic a l. F o r e x a m p le , a
d e liv e ra b le m a y b e d u e o n A p ril 1 . H o w e v e r, w h a t tim e o f d a y is it d u e ? D o e s b e g in n in g o f
d a y m e a n b e fo re 9 A M ? D o e s e n d o f d a y m e a n b y 5 P M , o r is d e liv e ry a t 1 1 :5 9 P M
a c c e p ta b le ? A lso , if a te a m is g e o g ra p h ic a lly d isp e rse d , p ro je c t p a rtic ip a n ts sh o u ld c la rify th e
tim e z o n e th e d e liv e ry tim e is e x p re sse d in . It sh o u ld n o t b e a ssu m e d th a t e v e ry o n e h a s th e
sa m e a ssu m p tio n s a b o u t w h a t a d e liv e ry d a te m e a n s. B y o ffe rin g sp e c ific s re la te d to th e
sc h e d u le , p a rtic ip a n ts w ill c re a te a sh a re d u n d e rsta n d in g a c ro ss th e te a m a b o u t w h a t n e e d s to
b e d o n e a n d b y w h e n .
T e a m m e m b e rs u su a lly d o n o t lik e to a d m it th a t th e y a re fa llin g b e h in d sc h e d u le . A s a re su lt,
p ro je c t le a d e rs a n d p ro je c t m a n a g e rs m u st b e p ro a c tiv e in se e k in g o u t in fo rm a tio n fro m te a m
m e m b e rs— e sp e c ia lly w h e n th e re a p p e a rs to b e a p ro b le m .
W o r k in g W it h N e t w o r k D ia g r a m s
T o fo rm a lly c o n stru c t a n e tw o rk d ia g ra m , g ra p h ic a lly m a p e a c h a c tiv ity in se q u e n c e . S h o w
th e a c tiv ity 's e a rly sta rt d a te (E S ) a n d e a rly fin ish d a te (E F ) o n to p o f th e a c tiv ity b o x a n d th e
la te sta rt d a te (L S ) a n d la te fin ish d a te (L F ) o n th e b o tto m o f th e a c tiv ity b o x .
E a rly d a te s a re c a lc u la te d u sin g a fo rw a rd p a ss c a lc u la tio n
L a te d a te s a re c a lc u la te d u sin g a b a c k w a rd p a ss c a lc u la tio n
T h e se tw o m e th o d s c a n b e u se d to c re a te a b a se lin e sc h e d u le .
F o r w a r d P a s s
T h e fo rw a rd p a ss c a lc u la tio n a n sw e rs th e q u e stio n , "W h a t is th e e a rlie st th a t a n a c tiv ity m a y
sta rt o r fin ish ? " It c a n b e se e n a s th e b e st-c a se sc e n a rio .
B e g in b y se ttin g th e p ro je c t sta rt d a te , sta rtin g w ith th e first a c tiv ity o n d a y o n e o f th e p ro je c t.
T h e n g o th ro u g h th e sc h e d u le fro m th e b e g in n in g o f th e jo b u n til th e e n d o f th e jo b . C o n sid e r
e a c h a c tiv ity in its lo g ic a l se q u e n c e .
T h e e a rly sta rt is th e e a rlie st a n a c tiv ity c a n sta rt, b a se d o n th e c o m p le tio n o f th e p re c e d in g
a c tiv itie s. T h e e a rly fin ish is th e e a rlie st tim e a n a c tiv ity c a n fin ish , a ssu m in g it sta rts o n tim e
a n d ta k e s n o lo n g e r th a n p la n n e d . A ll p rio r a c tiv itie s h a v e to b e fin ish e d b e fo re th e fo llo w in g a c tiv ity c a n sta rt. T h e re fo re th e
e a rly sta rt d a te o f th e fo llo w in g a c tiv ity is e q u a l to th e e a rly sta rt d a te o f th e p rio r a c tiv ity
p lu s th e tim e it ta k e s to c o m p le te th e a c tiv ity . W h e n a fo llo w in g a c tiv ity is c o n n e c te d to m o re
th a n o n e p rio r a c tiv ity (i.e ., a rro w s fro m tw o p rio r a c tiv itie s a re c o n v e rg in g o n to o n e
fo llo w in g a c tiv ity ), th e e a rly sta rt d a te o f th e fo llo w in g a c tiv ity w ill b e th e la rg e st o f th e
fin ish d a te s fro m th e p rio r a c tiv itie s.
W h e n th e la st a c tiv ity in th e sc h e d u le h a s b e e n re a c h e d , w ith e a c h e a rly sta rt a n d fin ish d a te
se t, it is p o ssib le to a n sw e r th e q u e stio n , "W h a t is th e e a rlie st th a t th is p ro je c t c a n b e
c o m p le te d ? "
F o rm u la s fo r th e fo rw a rd p a ss c a lc u la tio n s a re a s fo llo w s:
E a r ly S ta r t (E S ) = P re v io u s a c tiv ity 's E F + 1 + L a g (if a n y )
E a r ly F in ish (E F ) = (E a rly S ta rt + D u ra tio n o f a c tiv ity ) – 1
B a c k w a r d P a s s
T h e b a c k w a rd p a ss c a lc u la tio n a n sw e rs th e q u e stio n , "W h a t is th e la te st th a t a n a c tiv ity m a y
sta rt o r fin ish w ith o u t d e la y in g th e p ro je c t? "
F irst, se t th e la te fin ish d a te o f th e la st a c tiv ity in th e p ro je c t. T h e n w o rk y o u r w a y th ro u g h
th e sc h e d u le fro m th e e n d o f th e p ro je c t to th e sta rt. A d d re ss e a c h a c tiv ity in its lo g ic a l d a te
se q u e n c e . W h e n m u ltip le a c tiv itie s c o n v e rg e in to o n e n o d e in a b a c k w a rd p a ss, th e sm a lle st
o f th e la te sta rt d a te s fro m th e a c tiv itie s b e c o m e s th e la te fin ish d a te in th e n o d e .
U p o n re a c h in g th e first a c tiv ity in th e sc h e d u le , y o u w ill k n o w th e la te st th a t e a c h a c tiv ity
sh o u ld fin ish . W h ile th e la te sta rt d a te is th e la te st a n a c tiv ity c a n sta rt w ith o u t d e la y in g th e
p ro je c t, th e la te fin ish d a te is th e la te st a n a c tiv ity c a n fin ish w ith o u t d e la y in g th e p ro je c t. F o rm u la s fo r th e b a c k w a rd p a ss c a lc u la tio n s a re a s fo llo w s:
L a te F in ish (L F ) = S u c c e sso r's L S – 1 – L a g (if a n y )
L a te S ta r t (L S ) = (L F – D u ra tio n o f a c tiv ity ) + 1
A fte r y o u h a v e b u ilt th e sc h e d u le a n d id e n tifie d th e c ritic a l p a th a n d th e e n d d a te , y o u w ill
d e te rm in e if it a lig n s w ith th e c u sto m e r's d u e d a te . If it e x c e e d s th e ir d a te (w h ic h is o fte n th e
c a se ) y o u w ill h a v e to d o so m e a d d itio n a l p la n n in g — ru n n in g a c tiv itie s in p a ra lle l o r a d d in g
re so u rc e s to fin ish a c tiv itie s e a rlie r— to a lig n w ith th e ir e x p e c ta tio n s.
O n th e c ritic a l p a th , L S - E S = L F - E F = z e ro . (N o te : if th is d o e s n o t o c c u r fo r a n y o f th e
p ro je c t p a th s, th e p a th w ith th e sm a lle st d iffe re n c e sh o u ld b e c o n sid e re d th e c ritic a l p a th .)
S c h e d u le C o m p r e s s io n
A fte r c re a tin g a sc h e d u le n e tw o rk d ia g ra m , p ro je c t p ra c titio n e rs so m e tim e s fin d th a t th e e n d
d a te sp e c ifie d b y th e d ia g ra m d o e s n o t a lig n w ith a n im p o se d tim e c o n stra in t o r c o m p le tio n
d a te se t fo r th e p ro je c t. B u t, a fte r b rin g in g th is d isc re p a n c y to th e a tte n tio n o f k e y
sta k e h o ld e rs o r p ro je c t p a rtn e rs, th e y m a y b e to ld th a t th e p ro je c t m u st b e c o m p le te d b y th e
im p o se d d u e d a te s— a n d to fu rth e r c o m p lic a te m a tte rs, it m u st b e d o n e w ith o u t c o m p ro m isin g
o r c h a n g in g th e p ro je c t sc o p e in a n y w a y .
T o m e e t th e se re q u e sts, th e re a re tw o c o m m o n ly u se d c o m p re ssio n te c h n iq u e s th a t c a n b e
u se d to sh o rte n th e p ro je c t's d u ra tio n w ith o u t a ffe c tin g its sc o p e . T h e se te c h n iq u e s— fa st
tra c k in g a n d c ra sh in g — a re d e sc rib e d b e lo w :
F a st tr a c k in g
F a st tra c k in g a llo w s p ro je c t a c tiv itie s th a t w o u ld n o rm a lly b e d o n e in se q u e n c e to b e ru n
sim u lta n e o u sly in ste a d . B y p e rfo rm in g th e se a c tiv itie s in p a ra lle l in ste a d o f in se q u e n c e ,
th e p ro je c t te a m c a n sh o rte n th e tim e n e e d e d to c o m p le te th e p ro je c t. E x a m p le s o f fa st tra c k in g in c lu d e :
u sin g a p ro to ty p e to b e g in te stin g fo r q u a lity c o n tro l p ro b le m s in ste a d o f w a itin g fo r
th e fin a l p ro d u c t to b e c o m p le te d
o rd e rin g th e m a te ria l th a t a c o n stru c tio n c re w e x p e c ts to n e e d b e fo re a n e w b u ild in g 's
d e sig n is fin ish e d
T o im p le m e n t fa st tra c k in g c o rre c tly , p ra c titio n e rs w ill n e e d to lo o k a t th e d e p e n d e n c ie s
a m o n g a c tiv itie s a n d d e te rm in e w h ic h o n e s c a n b e o v e rla p p e d ; in so m e c a se s (w h e re o n e
a c tiv ity m u st b e c o m p le te d b e fo re a se c o n d a c tiv ity c a n sta rt), fa st tra c k in g is n o t p o ssib le
a n d c a n n o t b e e m p lo y e d .
It is im p o rta n t to n o te th a t fa st tra c k in g a p ro je c t's sc h e d u le m a y in c re a se th e risk s
a sso c ia te d w ith th e p ro je c t a n d c o u ld re su lt in re w o rk if th e o v e rla p p in g a c tiv itie s
g e n e ra te o u tp u ts th a t d o n o t in te g ra te o r a lig n w ith e a c h o th e r.
C r a sh in g
C ra sh in g c a n b e u se d to sh o rte n a p ro je c t's d u ra tio n b y a d d in g re so u rc e s to h e lp c o m p le te
im p o rta n t p ro je c t a c tiv itie s. A d d itio n a l p e rso n n e l, e q u ip m e n t, o r o th e r c o m p o n e n ts c a n b e
in tro d u c e d in to a p ro je c t to fo c u s o n sp e c ific a c tiv itie s a n d e n su re th a t th e y a re c o m p le te d
so o n e r th a n o rig in a lly p la n n e d .
E x a m p le s o f c ra sh in g a p ro je c t sc h e d u le in c lu d e :
p a y in g fo r th e e x p e d ite d d e liv e ry o f su p p lie s o r o th e r m a te ria ls n e e d e d fo r a p ro je c t
in c re a sin g o v e rtim e fo r p ro je c t e m p lo y e e s o r su b c o n tra c tin g to a d d re so u rc e s to th e
p ro je c t
T h e se a d d e d re so u rc e s a lm o st a lw a y s re su lt in in c re a se d c o sts so p ra c titio n e rs w ill n e e d
to c o n sid e r h o w c ra sh in g c a n b e im p le m e n te d a t th e le a st p o ssib le c o st in c re m e n t.
C ra sh in g th e p ro je c t m a y a lso in c re a se p ro je c t risk if th e a d d itio n a l re so u rc e s a d d la y e rs
o f c o m p le x ity to th e w o rk o r d o n o t p ro d u c e a s e x p e c te d . T h e se sc h e d u lin g te c h n iq u e s w ill b e su c c e ssfu l o n ly if th e y a re a p p lie d to a c tiv itie s o n th e
p ro je c t's c ritic a l p a th — b e c a u se th e c ritic a l p a th is th e d e te rm in in g fa c to r in c o m p le tin g th e
p ro je c t o n tim e , a p p ly in g fa st tra c k in g o r c ra sh in g te c h n iq u e s to n o n -c ritic a l p ro je c t p a th s w ill
n o t h e lp in c o m p re ssin g th e sc h e d u le o r fin a liz in g th e p ro je c t a s p la n n e d .
B e s t P r a c t ic e s : C r a s h in g
A s m e n tio n e d in th e p re v io u s a ssig n m e n t, a d d in g m o re re so u rc e s to a c tiv itie s c a n
d ra m a tic a lly in c re a se a p ro je c t's c o st so it is im p o rta n t fo r p ro je c t p a rtic ip a n ts to d e te rm in e
h o w to sh o rte n th e p ro je c t d u ra tio n fo r th e le a st p o ssib le c o st.
W h e n im p le m e n tin g c ra sh in g te c h n iq u e s, it is im p o rta n t fo r p ra c titio n e rs to th in k a b o u t:
1 . H o w m u c h e a c h a c tiv ity c o sts u n d e r its n o rm a l tim e
2 . T h e sh o rte st p o ssib le a c tiv ity tim e s (i.e ., m a x im u m c ra sh in g ), a n d
3 . A c tiv ity c o sts u n d e r m a x im u m c ra sh in g
T h e y sh o u ld u se th e fo llo w in g "ru le -o f-th u m b " e q u a tio n s to h e lp th e m d e c id e w h ic h a c tiv itie s
to fo c u s th e ir a tte n tio n o n :
M a x im u m p o ssib le tim e sa v in g = n o r m a l tim e - sh o r te st tim e
C r a sh in g c o st = (c o st w ith m a x im u m c r a sh in g - n o r m a l c o st)/m a x im u m tim e sa v in g
E x a m p le : P r o c e d u r e a t a P la s tic s In je c tio n M o ld in g P la n t
S u p p o se th e fo llo w in g p a ra m e te rs e x ist fo r th e p la stic s p la n t:
A c tiv ity A c tiv ity D e sc rip tio n Im m e d ia te P re d e c e sso r A c tiv ity T im e
A O rd e r fo r p a rts a rriv e s N o n e 1
B C o n tra c t sig n e d & p a id A 2
C P la stic to m a k e p a rts is o rd e re d B 1
D S te e l to m a k e m o ld is o rd e re d B 1
E P la stic a rriv e s C 7
F S te e l a rriv e s D 5
G D e v e lo p m o ld fo r p a rts F 1 0
H C u sto m e r a p p ro v e s m o ld G 1
I S a m p le m o ld to e n su re p a rt q u a lity E & H 1
J P ro d u c tio n o f p a rts I 2
K D e liv e ry o f p a rts J 1
T o ta l: 3 2 C r itic a l p a th : A -B -D -F -G -H -I-J -K
A c tiv ity
N o rm a l
T im e
(d a y s)
C ra sh e d
T im e
N o rm a l
C o st
C ra sh e d
C o st
M a x im u m
T im e
S a v in g s
C ra sh in g
C o st P e r
D a y
C a lc u la tio n o f
C ra sh in g C o st
A 1 1 $ 0 $ 0 0 $ 0 -
B 2 1 $ 1 0 0 $ 2 0 0 1 $ 1 0 0 = (2 0 0 -1 0 0 )/1
C 1 1 $ 0 $ 0 0 $ 0 -
D 1 1 $ 0 $ 0 0 $ 0 -
E
7 3 $ 1 0 ,0 0 0 $ 1 3 ,0 0 0 4 $ 7 5 0 = (1 3 ,0 0 0 -
1 0 ,0 0 0 )/4
F
5 2 $ 2 ,5 0 0 $ 4 ,0 0 0 3 $ 5 0 0 = (4 ,0 0 0 -
2 ,5 0 0 )/3
G
1 0 4 $ 3 ,5 0 0 $ 5 ,7 0 0 6 $ 3 6 7 = (5 ,7 0 0 -
3 ,5 0 0 )/6
H 1 1 $ 0 $ 0 0 $ 0 -
I 1 1 $ 9 0 0 $ 9 0 0 0 $ 0 -
J
2 1 $ 3 ,0 0 0 $ 5 ,0 0 0 1 $ 2 ,0 0 0 = (5 ,0 0 0 -
3 ,0 0 0 )/1
K 1 1 $ 1 0 0 $ 1 0 0 0 $ 0 -
T o ta ls
3 2 1 7 $ 2 0 ,1 0 0 $ 2 8 ,9 0 0 1 5 $ 5 8 6 .6 7 = (2 8 9 0 0 -
2 0 1 0 0 )/1 5
It is im p o rta n t fo r p ra c titio n e rs to u n d e rsta n d th a t it m a y b e p o ssib le to c ra sh p a rtia l d a y s o f a
sc h e d u le . S o if p a rt p ro d u c tio n (A c tiv ity J) w e re sh o rte n e d to 1 .5 d a y s, th e n it m ig h t still b e
p o ssib le to lim it th e c ra sh in g c o st to $ 1 ,0 0 0 (0 .5 * 2 0 0 0 = 1 0 0 0 . H e re w e a ssu m e a lin e a r
re la tio n sh ip b e tw e e n a c tiv ity c o sts a n d a c tiv ity tim e s).
S u p p o se th e c u sto m e r n e e d e d th e o rd e r d e liv e re d in 2 1 d a y s. W h ic h a c tiv itie s sh o u ld b e
c ra sh e d ? T h e y 're lik e ly to b e th e o n e s w ith th e lo w e st c ra sh in g c o sts p e r d a y . In th is situ a tio n ,
th a t m e a n s n e g o tia tin g , sig n in g , a n d p a y in g th e c o n tra c t in o n e d a y in ste a d o f tw o a n d p la c in g
a ru sh o rd e r o n th e ste e l so it a rriv e s in tw o d a y s in ste a d o f fiv e . It p ro b a b ly a lso m e a n s
p la c in g ru sh o rd e rs o n th e p la stic a n d m o ld d e v e lo p m e n t.
H o w e v e r, a n y tim e a n a c tiv ity is c ra sh e d , it m a y c h a n g e th e p ro je c t's c ritic a l p a th so it is
im p o rta n t to re a sse ss th e sc h e d u le b e fo re ta k in g a n y a c tio n . B e fo re th e y d e c id e to c ra sh th e
sc h e d u le , p ra c titio n e rs w ill h a v e to w o rk th ro u g h th e p ro je c t n e tw o rk a n a ly sis to b e su re e a c h
ste p o f th e p ro je c t c a n b e c o m p le te d in tim e a n d o n b u d g e t. T h r e e -p o in t E s t im a t in g
D u rin g th e c o u rse o f a p ro je c t, a p ro je c t p ra c titio n e r m a y b e a sk e d to e stim a te h o w lo n g a
p ro je c t w ill ta k e o r to d e te rm in e its e x p e c te d e n d d a te . A n e ffe c tiv e w a y to a n sw e r q u e stio n s
lik e th e se is to u se a th re e -p o in t e stim a te .
A th re e -p o in t e stim a te a v e ra g e s th re e sc e n a rio s to im p ro v e s th e a c c u ra c y o f e stim a te s w h e n
th e u n d e rly in g ta sk s o r c o m p o n e n ts a re u n c e rta in .
T h re e -p o in t e stim a te s a re b a se d o n th e P ro g ra m E v a lu a tio n a n d R e v ie w T e c h n iq u e (P E R T ).
P E R T c a lc u la te s a n a v e ra g e o f th re e e stim a te s— a n o p tim istic e stim a te (b a se d o n th e b e st-
c a se sc e n a rio ), a p e ssim istic e stim a te (b a se d o n th e w o rst-c a se sc e n a rio ), a n d a m o st lik e ly
e stim a te . T h e tw o m o st-c o m m o n ly u se d fo rm u la s in P E R T c a lc u la tio n s a re b a se d o n
tria n g u la r a n d b e ta d istrib u tio n s. In a tria n g u la r d istrib u tio n , a ll th re e v a lu e s to b e a v e ra g e d
h a v e th e sa m e p ro b a b ility — th e c a lc u la te d e stim a te is ju st a n a v e ra g e o f th e th re e p o in ts.
m e a n = (o p tim istic + m o st lik e ly + p e ssim istic )
3
T h e b e ta d istrib u tio n , h o w e v e r, w e ig h ts th e m o st lik e ly e stim a te in th e fo rm u la b y
m u ltip ly in g it b y fo u r (w h ic h th e n m e a n s th a t th e su m m a tio n o f th e e stim a te s m u st b e d iv id e d
b y six to a tta in th e a v e ra g e ).
m e a n = (o p tim istic + (4 x m o st lik e ly ) + p e ssim istic )
6
T h e q u o tie n t fro m e ith e r o f th e se fo rm u la s is c a lle d th e e x p e c te d v a lu e o f th e d u ra tio n
e stim a te .
P E R T is c o n sid e re d re lia b le re la tiv e to o th e r e stim a tin g te c h n iq u e s; h o w e v e r, a ll e stim a tio n s
a re , b y n a tu re , im p e rfe c t. T h e d e g re e o f c o n fid e n c e in a n e stim a te is k n o w n a s a c o n fid e n c e
fa c to r, w h ic h is e x p re sse d a s a p e rc e n ta g e . T h e c o n fid e n c e fa c to r o f 9 5 % o v e r a n o rm a l
d istrib u tio n a ssu m e s th a t a b o u t 9 5 % o f th e tim e , w o rk w ill fin ish w ith in ± tw o sta n d a rd
d e v ia tio n s o f th e P E R T c a lc u la tio n .
W h e n u sin g P E R T , sta n d a rd d e v ia tio n (u se d to fin d a c o n fid e n c e fa c to r a n d c o n fid e n c e
in te rv a l) is re p re se n te d b y (P e ssim istic - O p tim istic )/6 . T h is fa c to r p ro v id e s th e e x p e c te d
sta tistic a l v a ria n c e in d u ra tio n .
A fte r fin d in g th e sta tistic a l v a ria n c e , th e c o n fid e n c e in te rv a l (th e p e rio d o f tim e w ith in w h ic h
th e p ro je c t p ra c titio n e r is 9 5 % c e rta in th a t a p ro je c t w ill b e c o m p le te d ) c a n b e d e te rm in e d .
T h e c o n fid e n c e in te rv a l is c a lc u la te d b y ra isin g th e sta n d a rd d e v ia tio n to th e p o w e r o f tw o
(fo r 9 5 % c e rta in ty ) a n d se p a ra te ly a d d in g (to g e t th e p e ssim istic c o n fid e n c e in te rv a l fa c to r) o r
su b tra c tin g (to g e t th e o p tim istic c o n fid e n c e in te rv a l fa c to r) th is n u m b e r fro m th e e x p e c te d
v a lu e a s c a lc u la te d b y P E R T .
U sin g th e se te c h n iq u e s, p ro je c t p a rtic ip a n ts sh o u ld b e a b le to p ro v id e a n e stim a te fo r th e
a m o u n t o f tim e th a t th e a c tiv ity o r p ro je c t sh o u ld ta k e , a s w e ll a s th e ra n g e o f e rro r; a n
e x a m p le d u ra tio n m ig h t b e b e tw e e n 1 0 a n d 1 5 d a y s w ith 9 5 % p ro b a b ility o f c o m p le tio n
w ith in 1 2 o r 1 3 d a y s (th e in te rv a l). E s t im a t in g A c t iv it y R e s o u r c e s a n d D u r a t io n s
Z -S c o r e
L e t's ste p b a c k fo r a m o m e n t a n d u se P E R T (w ith o u t th e c o n fid e n c e in te rv a l) to a n sw e r a
d iffe re n t q u e stio n . S o m e tim e s a sta k e h o ld e r w ill p u sh a p ro je c t p ra c titio n e r to a im fo r th e
c o m p le tio n o f a p ro je c t o n a c e rta in d a te — a n d th a t d a te m a y b e m o re o r le ss re a listic .
In p ro je c t p la n n in g , a Z -S c o re c a lc u la te d u sin g P E R T c a n h e lp p ra c titio n e rs d e te rm in e th e
q u e stio n , "G iv e n a d e sire d c o m p le tio n d a te , w h a t is th e p ro b a b ility th a t th is c o m p le tio n d a te
is re a c h a b le ? "
F o r g e n e ra l sta tistic a l p u rp o se s, Z -S c o re is th e n u m b e r o f sta n d a rd d e v ia tio n s fro m th e m e a n
a p a rtic u la r v a lu e is. It c a n b e u se d in a v a rie ty o f d iffe re n t re a l-w o rld a p p lic a tio n s, o n e o f
w h ic h is in p ro je c t p la n n in g . F o r o u r p ro je c t m a n a g e m e n t p u rp o se s, th e v a lu e o f Z is th e
n u m b e r o f sta n d a rd d e v ia tio n s th a t th e d e sire d p ro je c t d u e d a te is fro m th e e x p e c te d
c o m p le tio n tim e .
S o fo r in sta n c e , if a c u sto m e r w a n ts to c o m p le te th e p ro je c t in 3 0 d a y s ra th e r th a n 6 0 d a y s,
w h a t is th e p ro b a b ility th a t p ra c titio n e rs c a n a c tu a lly m a k e it h a p p e n ?
A Z -S c o re c a n h e lp a n sw e r th a t q u e stio n .
T o d e te rm in e th e Z -S c o re y o u w o u ld ta k e th e p ro p o se d p ro je c t c o m p le tio n tim e (T ), su b tra c t
th e e x p e c te d p ro je c t c o m p le tio n tim e (T E ) fro m it, a n d d iv id e it b y th e p ro je c t sta n d a rd
d e v ia tio n (σ ):
Z = (T -T E )/σ
O n c e y o u d e te rm in e th e Z -S c o re , y o u c a n tra n sla te th e Z -S c o re in to th e p ro b a b ility
p e rc e n ta g e b y lo c a tin g th e Z -S c o re o n a p re d e te rm in e d a n d p re -c a lc u la te d Z -S c o re ta b le su c h
a s th is o n e .
R e m e m b e r th a t b e c a u se th e e x p e c te d c o m p le tio n tim e c a lc u la te d b y P E R T is d e te rm in e d to
b e a 5 0 % p ro b a b ility , th e Z -S c o re w ill e ith e r a d d to o r su b tra c t fro m th a t p e rc e n ta g e . If th e Z -
S c o re is n e g a tiv e , th e n y o u w o u ld su b tra c t th a t p e rc e n ta g e fro m th e 5 0 % p ro b a b ility o f th e
P E R T e x p e c te d c o m p le tio n tim e p ro b a b ility . If it is p o sitiv e th e n y o u w o u ld a d d it to th e 5 0 %
p ro b a b ility c o m p le tio n tim e .
B e lo w is a ste p -b y -ste p e x a m p le th a t sh o w s th e u se o f P E R T in c o n ju n c tio n w ith th e Z -S c o re . E x a m p le : U s in g P E R T a n d Z -S c o r e
Y o u h a v e b e e n e n g a g e d b y a c o m p a n y c a lle d iG u id e , w h ic h p ro v id e s o n lin e tra v e l
g u id e b o o k s, a n d th e y w o u ld lik e y o u to m a k e a n e w tra v e l g u id e b o o k fo r A u stra lia . Y o u h a v e
e stim a te d th e c o m p le tio n tim e s (M o st L ik e ly , O p tim istic , a n d P e ssim istic ) fo r a ll o f th e
a c tiv itie s in v o lv e d o n th is p ro je c t a n d p la c e d th e m in th e ta b le b e lo w .
iG u id e w o u ld lik e to c o m p le te th is p ro je c t in 2 4 d a y s. W h a t is th e p ro b a b ility o f su c c e ssfu lly
c o m p le tin g th is p ro je c t in 2 4 d a y s?
A c tiv ity
M o s t L ik e ly T im e
(D a y s ) = m
O p tim is tic
T im e = a
P e s s im is tic
T im e = b
A 1 1 1
B 2 1 7
C 1 1 2
D 1 1 2
E 7 3 2 1
F 5 2 2 1
G 1 0 4 2 1
H 1 1 5
I 1 1 5
J 2 1 5
K 1 1 3
T o ta ls 3 2 1 7 9 3
S te p 1 : C a lc u la te th e e x p e c te d c o m p le tio n tim e (T E ) u s in g P E R T
W e k n o w fro m th e P E R T se c tio n th a t to c a lc u la te e x p e c te d c o m p le tio n tim e , w e n e e d to u se
th e fo rm u la :
T E = (O + 4 M + P )/6
U sin g th e ta b le a b o v e T E w o u ld b e :
T E = (1 7 + 4 (3 2 )+ 9 3 )/6
T E = 3 9 .6 7 d a y s S te p 2 : B e g in to c a lc u la te th e v a r ia n c e o f th e p r o je c t b y c a lc u la tin g th e v a r ia n c e
o f e a c h ta s k
T o c a lc u la te th e v a ria n c e o f e a c h ta sk , u se th e e q u a tio n :
T a sk V a r ia n c e = [(P -O )/6 ]2
(A ll o f th e v a ria n c e s fo r e a c h ta sk h a v e b e e n c a lc u la te d in th e ta b le b e lo w S te p 3 .)
S te p 3 : C a lc u la te th e s ta n d a r d d e v ia tio n
T o c a lc u la te th e sta n d a rd d e v ia tio n , u se th e e q u a tio n :
S ta n d a r d D e v ia tio n = √ T a sk V a r ia n c e 1 + T a sk V a r ia n c e 2 + T a sk V a r ia n c e 3 … .
T h e sta n d a rd d e v ia tio n c a n b e fo u n d a t th e b o tto m o f th e ta b le b e lo w .
N o te : W h ile th e v a ria n c e fo r th e p ro je c t is th e su m o f a ll th e a c tiv ity v a ria n c e s, th e sta n d a rd
d e v ia tio n fo r th e p ro je c t is th e sq u a re ro o t o f th e v a ria n c e o f th e p ro je c t (n o t th e su m o f a ll
a c tiv ity sta n d a rd d e v ia tio n s— th a t w o u ld n o t b e sta tistic a lly c o rre c t).
A c tiv ity
M o s t L ik e ly T im e
(D a y s ) = m
O p tim is tic
T im e = a
P e s s im is tic
T im e = b
E x p e c te d
T im e = t
V a r ia n c e =
σ 2
A 1 1 1 1 0
B 2 1 7 2 .6 7 1
C 1 1 2 1 .1 7 0 .0 2 7 8
D 1 1 2 1 .1 7 0 .0 2 7 8
E 7 3 2 1 8 .6 7 9
F 5 2 2 1 7 .1 7 1 0 .0 2 7 8
G 1 0 4 2 1 1 0 .8 3 8 .0 2 7 8
H 1 1 5 1 .6 7 0 .4 4 4 4
I 1 1 5 1 .6 7 0 .4 4 4 4
J 2 1 5 2 .3 3 0 .4 4 4 4
K 1 1 3 1 .3 3 0 .1 1 1 1
T o ta ls
3 2 1 7 9 3 3 9 .6 7 T o ta l o f
V a ria n ces =
2 9 .5 5 5 6
S T D D ev = 5 .4 4 S te p 4 : C a lc u la te th e Z -S c o r e
G iv e n th a t iG u id e w a n ts to k n o w th e p ro b a b ility th a t th e p ro je c t w ill b e c o m p le te d w ith in 2 4
d a y s, w e h a v e a ll th e in fo rm a tio n w e n e e d to c a lc u la te th e Z -S c o re .
T = 2 4 d a y s
T E = 3 9 .6 7
σ (S ta n d a r d D e v ia tio n ) = 5 .4 4
T o c a lc u la te th e Z -S c o re u se th e e q u a tio n :
Z = (T -T E )/σ
Z = (2 4 -3 9 .6 7 )/5 .4 4
T h e Z -S c o re (z ) is th e d iffe re n c e b e tw e e n th e d e sire d c o m p le tio n tim e (e .g ., 2 4 d a y s) a n d th e
p ro je c t's e x p e c te d tim e (3 9 .6 7 d a y s) d iv id e d b y th e sta n d a rd d e v ia tio n fo r th e p ro je c t (5 .4 4 ).
Z = -2 .8 8
S te p 5 : C a lc u la te th e p r o b a b ility o f s u c c e s s
N o w th a t y o u h a v e fig u re d o u t th e Z -S c o re , y o u m u st tra n sla te th a t sc o re (sig m a v a lu e ) in to
a n a c tu a l p e rc e n ta g e . T h is tra n sla tio n is d o n e u sin g a Z -S c o re ta b le . N o te th a t a Z -S c o re ta b le
is n o t c a lc u la te d b y p ro je c t p ra c titio n e rs— it is a p re e x istin g ta b le th a t sta tistic ia n s h a v e
a lre a d y c a lc u la te d fo r u se w ith Z -S c o re s. T h e Z -S c o re c o n ta in s th e sa m e v a lu e s re g a rd le ss o f
th e a p p lic a tio n o r in d u stry .
T h e Z -S c o re is -2 .8 8 , w h ic h fro m a Z -S c o re ta b le e q u a te s to a 0 .4 9 8 0 a re a u n d e r th e n o rm a l
d istrib u tio n c u rv e . S e e th e Z -S c o re ta b le b e lo w . H o w d o y o u re a d th e Z -S c o re T a b le ? F o r a Z -S c o re o f -2 .8 8 , w e w o u ld first re a d d o w n th e
0 .0 c o lu m n u n til w e fin d th e 2 .8 ro w , a n d th e n w e w o u ld lo c a te th e c o lu m n th a t h a s th e 0 .0 8
in it (2 .8 + 0 .0 8 = 2 .8 8 ). A t th e in te rse c tio n o f th e 2 .8 ro w a n d th e .0 8 c o lu m n w e fin d
4 9 .8 0 % .
B u t th a t is n o t th e e n d o f th e c a lc u la tio n ! W e m u st a d d o r su b tra c t th a t v a lu e fro m th e m e a n
(5 0 % ). R e m e m b e r th e o rig in a l e stim a te d tim e o f 3 9 .6 7 d a y s w a s c a lc u la te d u sin g P E R T ,
w h ic h g iv e s y o u a 5 0 % p ro b a b ility o f su c c e ss o f h ittin g th a t d a te e x a c tly .
If y o u e n d u p w ith a p o sitiv e Z -S c o re , th e n y o u w o u ld a d d th is to th e 5 0 % p ro b a b ility o f
su c c e ss. If y o u e n d u p w ith a n e g a tiv e Z -S c o re th e n y o u w o u ld su b tra c t it fro m th e 5 0 %
p ro b a b ility o f su c c e ss. In o u r c a se , th e Z -S c o re w a s n e g a tiv e (-2 .8 8 ). S o w e m u st su b tra c t
4 9 .8 0 % fro m 5 0 % , a n d th is g iv e s u s .2 0 % .
T h e p r o b a b ility o f su c c e ss o f c o m p le tin g th e p r o je c t in 2 4 d a y s is .2 0 % . It lo o k s lik e y o u
h a v e to re se t iG u id e 's e x p e c ta tio n s o f c o m p le tio n tim e . T h e re is o n ly a fifth o f a p e rc e n t o f a
c h a n c e th a t th e p ro je c t w ill c o m p le te o n th e d a y th a t th e y h a v e re q u e ste d , so th e ir
e x p e c ta tio n s a re n 't v e ry re a listic . P r o je c t T im e M a n a g e m e n t B a r r ie r s a n d H o w t o H a n d le T h e m
In a p re v io u s a ssig n m e n t, w e ta lk e d a b o u t th e c h a lle n g e s o f k e e p in g a p ro je c t's sc h e d u le o n -
tra c k . In th is a ssig n m e n t, w e w ill e x p lo re so m e o f th e b a rrie rs th a t c a n p re v e n t a p ro je c t
m a n a g e r fro m m a n a g in g a sc h e d u le e ffe c tiv e ly a n d h o w th o se b a rrie rs c a n b e a v o id e d .
A p ro je c t m a n a g e r first n e e d s to id e n tify th e sp e c ific p ro b le m o r p ro b le m s. B e lo w a re so m e
o f th e p o te n tia l p ro b le m s p ro je c t m a n a g e rs m a y fa c e .
A L o t o f S m a ll D e la y s
A p ro je c t w ith m a n y ta sk s th a t a re a ll a little b it la te is a d a n g e ro u s p ro b le m fo r a n y
p ro je c t m a n a g e r. E a c h o f th e sm a ll d e la y s a d d s u p q u ic k ly a n d b e fo re th e p ro je c t
m a n a g e r k n o w s it, th e p ro je c t is la te . It is im p o rta n t fo r p ro je c t m a n a g e rs to k e e p a
h o listic v ie w o f th e ir p ro je c ts. T h e y c a n n o t le t la rg e r issu e s d istra c t th e m fro m n o tic in g
sm a ll d e la y s w ith d e liv e ra b le s.
T h e N o n c o o p e r a tiv e T e a m M e m b e r
In so m e c a se s, th e re m a y b e te a m m e m b e rs w h o d o n o t a g re e w ith w h a t n e e d s to b e d o n e
o n a p ro je c t. T h e y m a y re fu se to w o rk o n th e ta sk s in th e o rd e r th e y h a v e b e e n sc h e d u le d ,
a n d in ste a d w o rk o n w h a t th e y fe e l is c o rre c t. W a rn in g sig n s m a y in c lu d e re lu c ta n c e to
su b m it sta tu s re p o rts a n d a v o id in g th e p ro je c t m a n a g e r. T h e p ro je c t m a n a g e r m u st m e e t
o n e -o n -o n e w ith e a c h p ro b le m a tic te a m m e m b e r a n d e m p h a siz e th e im p o rta n c e o f
w o rk in g a s a te a m . If th is in te rv e n tio n is n o t e ffe c tiv e , stro n g e r m e a su re s m a y b e
n e c e ssa ry .
T h e R e m o te T e a m M e m b e r W h o D o e sn 't C o m m u n ic a te
It c a n b e d iffic u lt to m a n a g e a te a m w h e n m e m b e rs w o rk in re m o te lo c a tio n s o r
te le c o m m u te . W h e n re m o te te a m m e m b e rs sto p c o m m u n ic a tin g w ith th e p ro je c t
m a n a g e r, th is d iffic u lty in c re a se s. F o r te a m m e m b e rs w o rk in g a t a re m o te o ffic e lo c a tio n ,
th e p ro je c t m a n a g e r m a y n e e d to h a v e a n o th e r p e rso n a t th e site to c o n firm th a t th e
e m p lo y e e s a re a c tu a lly a t w o rk . A se n io r m a n a g e r a t th a t site m a y n e e d to in te rv e n e a n d
ta lk to th e e m p lo y e e s a b o u t th e c o m m u n ic a tio n issu e s. If th e issu e s c a n n o t b e re so lv e d ,
th e te a m m e m b e r m a y n e e d to b e re m o v e d fro m th e p ro je c t. T o a v o id m a jo r d e la y s in th e
sc h e d u le , c ritic a l ta sk s sh o u ld b e re a ssig n e d to o th e r te a m m e m b e rs a s q u ic k ly a s
p o ssib le .
T h e C lie n t o r V e n d o r W h o D o e sn 't C o m m u n ic a te
P ro je c t te a m s a re o fte n d e p e n d e n t o n in fo rm a tio n o r d e liv e ra b le s fro m c lie n ts o r v e n d o rs.
W h e n e ith e r o f th e se sta k e h o ld e rs g o e s sile n t, th e p ro je c t m a n a g e r m a y e n c o u n te r d e la y s
in th e p ro je c t sc h e d u le . T o d e a l w ith n o n -c o m m u n ic a tiv e c lie n ts, it c a n b e u se fu l to c a ll
a n e m e rg e n c y m e e tin g w ith th e c lie n t re p re se n ta tiv e o r p ro je c t sp o n so r. In th e c a se o f
v e n d o rs w h o d o n o t d e liv e r o n sc h e d u le , it is im p o rta n t to e n su re u p fro n t th a t c o n tra c tu a l
a g re e m e n ts sp e c ify th e c o n se q u e n c e s o f la te d e liv e ry . W ith v e n d o r d e la y s, th e p ro je c t
m a n a g e r m a y o rg a n iz e a b ra in sto rm in g se ssio n w ith th e p ro je c t te a m a n d c lie n t to
id e n tify su b stitu te s fo r th e v e n d o r's d e liv e ra b le . T a sk U n c e r ta in tie s
T a sk u n c e rta in ty c a n b e g e n e ra te d in d iffe re n t w a y s. F o r e x a m p le , if a te a m m e m b e r is
sc h e d u le d to w o rk o n a ta sk , b u t th e ta sk h a s n o t y e t b e e n d e fin e d , th e re is lik e ly to b e
c o n fu sio n a n d e x c e ss tim e sp e n t o n th e ta sk . A lte rn a tiv e ly , a te a m m e m b e r m a y n o t k n o w
th e sta tu s o f o th e r te a m m e m b e rs' ta sk s. T h is to o c a n b e a so u rc e o f u n c e rta in ty .
C o m m u n ic a tio n w ith in th e te a m is a lo g ic a l re m e d y to th is p ro b le m .
" H u r r y u p a n d w a it" a n d " W a it a n d h u r r y u p " S itu a tio n s
T h e re a re tw o "sy n d ro m e s" th a t a p ro je c t m a n a g e r m a y se e . "H u rry u p a n d w a it" is w h e n
a sta k e h o ld e r h a s a n u rg e n t re q u e st fo r in fo rm a tio n th a t tu rn s o u t to h a v e b e e n
u n n e c e ssa ry . "W a it a n d h u rry u p " is w h e n e m e rg e n c ie s a rise d u e to p ro c ra stin a tio n o n th e
p a rt o f th e sta k e h o ld e r. W h a t c a n a p ro je c t m a n a g e r d o in th e se situ a tio n s? F o r c a se s o f
"h u rry u p a n d w a it," th e p ro je c t m a n a g e r c a n a sk sp e c ific q u e stio n s o f th e re q u e ste r. F o r
e x a m p le : W h y is th e re q u e st so u rg e n t? W h o sp e c ific a lly h a s a sk e d fo r th e in fo rm a tio n ?
T h e p ro je c t m a n a g e r sh o u ld c le a rly c o m m u n ic a te h o w fu lfillin g th e re q u e st w ill im p a c t
th e p ro je c t. It is p ru d e n t to p u t th e re q u e st a n d p ro je c t im p a c t in w ritin g a n d to c o p y th e
p e rso n id e n tifie d a s th e in itia to r o f th e re q u e st. In th e c a se o f "w a it a n d h u rry u p ," th e
p ro je c t m a n a g e r sh o u ld im p le m e n t a p ro c e ss fo r e m e rg e n c y re q u e sts.
D e a lin g w ith E m e r g e n c ie s
W h e n e m e rg e n c ie s a rise o n a p ro je c t, th e p ro je c t m a n a g e r m u st a c t q u ic k ly . E v e n if th e
e m e rg e n c y is th e re su lt o f p ro c ra stin a tio n , it m u st b e a d d re sse d . H a v in g a p ro c e ss fo r d e a lin g
w ith e m e rg e n c ie s a n d u n e x p e c te d , h ig h p rio rity re q u e sts is u se fu l. A fte r th e e m e rg e n c y h a s
p a sse d , it c a n b e h e lp fu l fo r th e p ro je c t m a n a g e r to h o ld a le sso n s le a rn e d m e e tin g to id e n tify
w a y s o f a v o id in g e m e rg e n c y situ a tio n s in th e fu tu re .
