Project Planning: Work Breakdown Structure,

Gantt Chart and Project Budget (PT. 2)

BSS052-6: PM Practice

Sidney Edidiong
Interface Coordination through Integration
Management
Interface management
• Interface management involves recognition and the
ability to manage interaction that exist b/w several
elements of the project.
• The number of interfaces can increase exponentially
as the number of people involved in the project
increase.
• It is important at this for a project manager to
develop and maintain good communication and
mutual relationships across organizational interfaces
The Project Integration Management (PIM)

• The PIM comprises of the coordination of all the

other PM knowledge areas throughout a project’s
life cycle.
• It ensure that all the elements of a project come
together at the right times to complete a project
successfully.
What is Cost and Project Cost Management?

 Cost is a resource sacrificed or foregone to

achieve a specific objective or something given
up in exchange

 Costs are usually measured in monetary units

like dollars
 Project cost management includes the processes
required to ensure that the project is completed
within an approved budget
Project Cost Management
Processes
Planning cost management :determining the
policies, procedures, and documentation that will be
used for planning, executing, and controlling project
cost

 Estimating costs: developing an approximation or

estimate of the costs of the resources needed to
complete a project

 Controlling costs: controlling changes to the project

budget
Project Cost Management
Processes
Planning cost management :determining the policies,
procedures, and documentation that will be used for
planning, executing, and controlling project cost

Estimating costs: developing an approximation or

estimate of the costs of the resources needed to
complete a project

Determining the budget: allocating the overall cost

estimate to individual work items to establish a
baseline for measuring performance
Controlling costs: controlling changes to the
project budget
Project Cost Management
Summary
Types of Costs and Benefits
Tangible costs or benefits are those costs or
benefits that an organization can easily measure in
dollars

Intangible costs or benefits are costs or benefits

that are difficult to measure in monetary terms

Direct costs are costs that can be directly related

to producing the products and services of the
project

Indirect costs are costs that are not directly related

to the products or services of the project, but are
indirectly related to performing the project
Cost Estimation Tools and
Techniques
Basic tools and techniques for cost estimates:

Analogous or top-down estimates: use the actual cost

of a previous, similar project as the basis for estimating
the cost of the current project

Bottom-up estimates: involve estimating individual work

items or activities and summing them to get a project total

Parametric modeling uses project characteristics

(parameters) in a mathematical model to estimate project
costs
Cost Classifications
 Cost Estimation

Ballpark (order of magnitude) ±30%

Comparative ±15%

Parametric estimation

Feasibility ±10%

Definitive ±5%
Scheduling and Resource
Allocation
• The most common approach to scheduling
and allocating resources to multiple projects
is to treat the several projects as if they were
each elements of a single large project
• Another way of attacking the problem is to
consider all projects as completely
independent
• To describe such a system properly, standards
are needed by which to measure scheduling
effectiveness
Cont’d

• Most critical... How do you know?

– Based on the amount of time before due date and the total
amount of processing time remaining to be completed.

• This ratio is simple but helpful.

• Critical Ratio = TRPT (Total Remaining Processing
Time) TRT (Total
Remaining Time)

• The smaller the ratio, the more critical it is, more

entitled to earlier allocation of resources.
 Cont’d
• Three important parameters affected by project
scheduling are:
1. Schedule slippage
2. Resource utilization
3. In-process inventory
• The organization (or the project manager) must
select the criterion most appropriate for its
situation.
Activity 1
Group work
 Project Scheduling- Gantt Chart
Objectives of Project Scheduling
• Completion of tasks
 in minimal time or at minimal cost
 in presence of task dependencies
• Likelihood of project completion in a given
period
 extremely hard optimization scenario
 constraints such as time, money, resources

 • Finding minimum cost schedule for project

comp.
 by a certain time
Cont’d

Agree on objectives for the project

 product features and their requirements
• Finalize resources
 human, system and monetary
• Identify task relationships
 helpful in scheduling tasks
• Determine task time to completion
 and associated costs
• Critical task determination
 and according organization
List of Project Scheduling Techniques
• Mathematical Analysis (Network
diagrams)
 Critical Path Method
 Program Evaluation and Review Technique
(PERT)
 Graphical Evaluation and Review
Technique (GERT)
• Bar Charts
 Bar charts
 Gantt charts
Critical Path Method (CPM)

Joint venture between XY and A-Z

• Sequential activities from start to
finish of project
• EF, ES, LF, LS are important variables
 PERT Analysis
Developed by US navy in 1950s
• Usage of a time variance
 probabilistic approach to activity estimation
• Pessimistic time, Most likely time and Optimistic
time

• Cannot be used for time/cost trade-off analysis

https://www.youtube.com/wat
ch?v=iPZlQ3Zx5zc
 Gantt Charts

What a Gantt chart shows

• different activities
• length of activities along with start and end times
• their dependencies
A Typical Gantt Chart
 References
APM (2006), APM Body of Knowledge (APMBOK) 5th edition,
Association for Project Management, High Wycombe, UK.

Chapter 17 of the Operations Management 6th edition

textbook by Slack et al. (2010).

Chapter 8 of PMI (2008), A Guide to the Project Management

Body of Knowledge (PMBOK), 4th edition, Project
Management Institute, Pennsylvania, USA.