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SBM1201 Project Scope, Time and Cost Management SBM1201 Project Scope, Time and Cost Management Week 8 2 © . C o p yr ig h t A P IC 2 0 1 9 Project Resources Management Scheduling Resources and Resources Optimization 3 © . C o p yr ig h t A P IC 2 0 1 9 Recap Starting from Week-3, we started learning about Schedule Management Schedule Management Knowledge Area involves six processes (Part 6 PMBPK, 2017) 6.1 Plan Schedule Management—The process of establishing the policies, procedures, and documentation for planning, developing, managing, executing, and controlling the project schedule. 6.2 Define Activities—The process of identifying and documenting the specific actions to be performed to produce the project deliverables. 6.3 Sequence Activities—The process of identifying and documenting relationships among the project activities. 6.4 Estimate Activity Durations—The process of estimating the number of work periods needed to complete individual activities with the estimated resources. 6.5 Develop Schedule—The process of analyzing activity sequences, durations, resource requirements, and schedule constraints to create the project schedule model for project execution and monitoring and controlling. 6.6 Control Schedule—The process of monitoring the status of the project to update the project schedule and manage changes to the schedule baseline. 4 © . C o p yr ig h t A P IC 2 0 1 9 Focus of this Week In Week 4, Week 5, and Week 6, we learned about scheduling methods such as Schedule Network Analysis; CPM Analysis; and PERT Analysis In the methods (tools) we learned about we assumed unlimited resources availability This week we will focus on Resource Optimisation techniques, which are tools that are used to adjust the implementation and completion dates of project activities to adjust the planned resource used and the resource availability. This means we will adjust our plans considering that we might have limited resources availability 5 © . C o p yr ig h t A P IC 2 0 1 9 Types Of Project Constraints Technical or Logic Constraints Constraints related to the networked sequence in which project activities must occur. e.g. A network for a new software project could place the activities in the network, as a sequence of (1) design, (2) code, and (3) test. In other words, you cannot logically perform activity 2 until 1 is completed, and so on. Design Code Test 6 © . C o p yr ig h t A P IC 2 0 1 9 Types Of Project Constraints Resource Constraints The absence or shortage of resources can drastically alter technical constraints. A project network planner may assume adequate resources and show activities occurring in parallel. However, parallel activities hold potential for resource conflicts. e.g. Assume you are planning a wedding reception that includes four activities—(1) plan, (2) hire band, (3) decorate hall, and (4) purchase refreshments. Each activity takes one day. Activities 2, 3, and 4 could be done in parallel by different people. There is no technical reason or dependency of one on another 7 © . C o p yr ig h t A P IC 2 0 1 9 Types Of Project Constraints Resource Constraints….continue However, if one person must perform all activities, the resource constraint requires the activities be performed in sequence or series. Clearly the consequence is a delay of these activities and a very different set of network relationships 8 © . C o p yr ig h t A P IC 2 0 1 9 The Resource Problem Resources and Priorities Project network times are not a schedule until resources have been assigned. The implicit assumption is that resources will be available in the required amounts when needed. Adding new projects requires making realistic judgments of resource availability and project durations. Cost estimates are not a budget until they have been time-phased. 9 © . C o p yr ig h t A P IC 2 0 1 9 Project Resources Comprise people, equipment, materials and consumables, buildings and facilities. Some resources are consumed (e.g. materials and consumables); others are applied (HR, equipment). The idea here is to identify resource quantities required for each activity in each project phase. It is important to see if resource assignments can be smoothed/levelled through changing activity sequences or rescheduling the entire project in order to prevent over-allocation. 10 © . C o p yr ig h t A P IC 2 0 1 9 Project Resource Management Scheduling computations performed so far assume unlimited resources Analysis of critical resources such as equipment, skilled labour, and materials is critical in planning and scheduling. Schedule prepared without considering resources may not be practical. Complexity increases when more than one project is considered. 11 © . C o p yr ig h t A P IC 2 0 1 9 Reasons of why scheduling resources is an important task Several reasons for scheduling resources are to: check if existing resources are adequate and available decide which resources have priority assess the impact if another project is added to the pool determine where the real critical path is. Are there unforeseen dependencies? see what happens to the risk of being late if slack is used up developing a schedule decide if outside contractors have to be used decide if an imposed project duration is realistic. 12 © . C o p yr ig h t A P IC 2 0 1 9 Resource Estimation There are five basic methods for resource estimation: 1. Parametric estimation 2. Analogous estimation 3. Historical data 4. Expert judgment 5. Three-point estimating Three-point estimation based on Beta distribution is a probabilistic estimation technique and is used in PERT networks. 13 © . C o p yr ig h t A P IC 2 0 1 9 Estimating Method & Method Statement Single Value Estimating or Deterministic Estimating Probability or Stochastic Estimating Whatever decision is made by the estimator, it needs to be fully documented for future reference. Method Statement is an appropriate format for recording such decisions. Method Statements store highly detailed information of all key scheduling decisions for future retrieval. The information include quantities, units of quantities, output rates of specific resources, duration and the actual output rates. 14 © . C o p yr ig h t A P IC 2 0 1 9 Parametric Estimation Total resource usage for execution of a given activity in terms of man-hours (for each trade/specialisation) is estimated by using productivity rates and appropriate job- management factors. For example, if the standard time for placing of concrete is 2.1 man-hours/m3 of concreters and the efficiency factor is 0.75, for a 100 m3 concrete placement job we need: 2.1/0.75 = 2.8 man-hours/m3 (expected average labour input/m3). 100*2.8 = 280 man-hours (total labour needed for the placement of 100 m3 of fresh concrete in normal conditions). In abnormal conditions (too cold, restricted areas, etc.), more resources are needed. 15 © . C o p yr ig h t A P IC 2 0 1 9 Parametric Estimation (continued) Assume a crew of 7, the duration will be: 280/7 = 40 work-hours Take 8 hours to be one day, then it is 5 days to complete the job. If we assign two crews of 7 workers each, then the duration will be 2.5 days. This explains the relationship between the resource quantities assigned to a given activity (number of workers, items of plant etc) and the corresponding duration that the activity takes to complete. 16 © . C o p yr ig h t A P IC 2 0 1 9 Analogous Estimating Similar project data is used to estimate future activity durations When comparing to similar activities (locality and other factors must be considered). Example: if on average pipe welding in the US takes 20% less time to do than in the UK, then we can estimate pipe welding activity duration by adjusting the US data. Applicable to similar activities (not unusual ones) Prone to errors but useful when no local data is available. √√ 17 © . C o p yr ig h t A P IC 2 0 1 9 Historical Data Many companies compile historical data. Also, there are many published productivity data handbooks and online databanks. These data can be used to estimate duration of new activities. Only valid if all other factors are the same. Job and managerial conditions, as well as environmental factors impact productivity. This method is generally useful for very specialised activities and when operators are trained to perform tasks to set methods 18 © . C o p yr ig h t A P IC 2 0 1 9 Expert Judgement Engagement of experts for scheduling may be necessary, particularly when: • A new technology is involved. • A new project/business is undertaken with no prior experience. • Proprietary technology or design is involved. • Complicated operations, e.g. offshore projects • Project is executed in hostile environments • Safety reviews are involved. • Local knowledge is essential. It is a good practice to validate the estimates from two methods. 19 © . C o p yr ig h t A P IC 2 0 1 9 Classification of a Resource Scheduling Problem A time-constrained project - Completed by imposed time (time is fixed) - If required, resources can be added to ensure the project is completed by a specific date - resource usage should be no more than is necessary and sufficient. A resource-constrained project. - Assumes the level of resources available cannot be exceeded - If the resources are inadequate, it will be acceptable to delay the project, but as little as possible. Therefore, when resources are considered two scenarios arise: Resources are fixed and duration can vary- Resource Levelling Duration is fixed and resources can vary- Resources Smoothing 20 © . C o p yr ig h t A P IC 2 0 1 9 Resource-Loaded Schedules To prepare a resource-loaded schedule Develop an initial project schedule. Allocate resources to activities. Generate resource histograms (profiles). Investigate if resource profiles can be smoothed (peaks and troughs are not desirable) through changing the sequences of activities and or splitting activities. Usually, this is done for key resources (top 10 or 20%