DePaul University

DePaul University Project Management I - Balancing The Project Instructor: David A. Lash

Intro To Project Balancing • Three most common project constraints 1. Time - Will it get done on time 2. Money - can you afford the project? 3. Resources - Can you get the people equipment or materials you need? • These must be balanced at the Project, Business case, & Enterprise Level.

3 Levels of Balancing a Project • Project - Project managers generally have the authority to balance the cost, schedule and quality objectives • Business case - if cannot achieve the cost/schedule/quality goals then must re-examine the business case for the project. • Sponsors 1 would evaluate these goals. • Cost goals linked to profitability of the project. Late projects may have penalty or miss a market window • Enterprise - the project & business case may balance but the enterprise still has to decide what projects to pursue • selecting projects based on Business case is business management decision

Balancing at The Project Level 1. Re-estimate the project 2. Change task assignments (to take adv of schedule float) 3. add people to the project 4. Use internal experts to increase productivity 5. Use external experts to increase productivity 6. Outsource the entire project 7. Crash the schedule 8. Shift project work 9. Work overtime

Project Lvl -> 1. Re-estimate Project • Might go back to team and relook at schedule • Advantage - If can legitimately rework schedule will shrink timeline • Disadvantage - tendency may be to get over optimistic • Recheck your estimates and assumptions. Make corrections but be careful not to succumb to pressure

Balancing at The Project Level 1. Re-estimate the project 2. Change task assignments (to take adv of schedule float) 3. add people to the project 4. Use internal experts to increase productivity 5. Use external experts to increase productivity 6. Outsource the entire project 7. Crash the schedule 8. Shift project work 9. Work overtime

Project Lvl -> 2. Change Assignments On Tasks with Float • Look At Critical Path - move resources from the CP to non - critical path items (see pg 192 fig 9.1) • Top figure - task 7 & 8 had 4 BL for 4 d each • Task 2 & 3 had 4 Bricklayers for 5 & 4 days • Moved 2 BL from task 7 & 8 to 2 & 3 and • Reduce task 2 from 5 - 2.5 & T3 from 4 to 2 • Increase task 7 from 4 to 8 & T 8 from 4 to 8 • Changes CP - task 11 and 12 & task 7 & 8 • Length of project reduced by 4 days

Project Lvl -> 2. Change Assignments On Tasks with Float • 3 considerations when using this technique 1. Both tasks need same type of people (attorney -> bricklayer won't help) 2. Non-critical tasks need enough float. Shortening CP items removes some float and probably changes the CP 3. Tasks need to be able to be shortened by adding people. (e.g., adding system analyst might not help as much)

Balancing at The Project Level 1. Re-estimate the project 2. Change task assignments (to take adv of schedule float) 3. Add people to the project 4. Use internal experts to increase productivity 5. Use external experts to increase productivity 6. Outsource the entire project 7. Crash the schedule 8. Shift project work 9. Work overtime

Project Lvl -> 3. Add People • Use more people to increase parallelism or shorten tasks • Issues: • can effect costs • may not shorten tasks • adding more people may increase coordination costs • law of diminishing marginal returns • works well with some tasks not work at all for others. • tasks requiring knowledge workers less helpful to add people

Project Lvl -> 4. Add Intrl Experts • Experts are high performers. E.g., software pgrmr experts and develop code 10 x faster • Their use may help with critical tasks • Issues • may be hard to obtain these folks • (may affect other projects) • may not want to do your tasks • when available can • put them on CP items to try to shorten or ensure make schedule • more complex or difficult task requiring expertise • design decision or quality areas • regardless may want to build your own experts when you possible

Project Lvl -> 5. Add Extl Experts • Use external consultants with expertise in areas needed to help reduce schedule: • Issues may include • Vendor risk - being able to judge talent before you hire. May not be the "expert" you think. • Lost expertise - may not help build your team’s expertise • best if have establish a relationship with a firm and know the quality and limitations of their people. • Cost may be prohibitive

Project Lvl -> 6. Outsource The Entire Project • Contract for the entire project or large parts of project to be done by outside firm • Issues • attractive when project requires particular skill not on team (specialization_ away from core skills). • may help shorten schedule VS building expertise and doing it yourself. • loose some control (can increase risk) • may have overall detrimental effect on workers

Balancing at The Project Level 1. Re-estimate the project 2. Change task assignments (to take adv of schedule float) 3. Add people to the project 4. Use internal experts to increase productivity 5. Use external experts to increase productivity 6. Outsource The Entire Project 7. Crash the schedule 8. Shift project work to customer 9. Work overtime

Project Lvl -> 6 &7. Crash Schedule and Shift to Customer • 6. - Crashing The Schedule • Looks to add resources to CP items • Uses a “crash” table to estimate tasks that have the greatest payback • Example: See figure 9.4 Page 201 • 7. - Shift Work To Customer • may provide better value to customer • may help get you resources or schedule you need • may be best with tasks requiring low expertise • may be best in beginning or end of project (for example, help with final assembling in their location and/or training)

Balancing at The Project Level 1. Re-estimate the project 2. Change task assignments (to take adv of schedule float) 3. Add people to the project 4. Use internal experts to increase productivity 5. Use external experts to increase productivity 6. Outsource The Entire Project 7. Crash the schedule 8. Shift project work to customer 9. Work overtime

Project Lvl -> 9. Working OT • Can possibily reduce schedule by requiring OT • Issues: • may decrease schedule • May be more productive after hours (maybe not) • likely will increase costs (overtime can be 1.5 rate) • sustained OT may burn people out • productivity may suffer while your paying more.

Business Case Strategies • Looking at Issues beyond the project manager & team but effect the cost and schedule of project • Reduce The Project Scope • Fixed-Phased Scheduling • Fast-Tracking • Phased Product Delivery • Do-it-twice - quickly and correctly • Change the Profit Requirement

BC Strat - Reduce The Project Scope • Scale down the objectives • reduce the features, functionality and/or performance of the product or project • Issues • Clearly will save time & money • Value of project will be reduced • Still desirable to customer? Still have the same value? • Problem requires sponsor/customer meeting • Not something done without careful thought • Are there particularly expensive requirements that add little “value”? Lower priority requirements? • Figure 9.5 on page 205 shows WBS with feature that was eliminated. Would rework schedule based on eliminating the task.

BC Strat - Fixed Phased Scheduling • Set Dates For Specific Phases • reasons could be - because of market, or too many software features, • Project dates set for various phases • re-evaulated at the end of each phase • Issues • Clearly not every project lends itself to Fixed phased scheduling • Must present hard choices to customer/sponsor on trade-offs of fixing dates at certain times • Quality can remain high as long as still can complete method cycle Fixed Date Requirements Design Build Operate Design Build Test Design Build Test Design Build Test

BC Strat - Fast Tracking • Overlap Tasks Not Traditionally Overlapped • E.g., Begin building construction before design is complete. (start foundation while still design upstairs.) • Issues • Can decrease project time significantly (40%) • Can be risky with full involvement of stakeholders • Mistakes can get multiplied and be harder to fix • Useful for some software development (e.g., overall design, unit design, build, unit design, build, unit design. Build, integration testing)

BC Strat - Phased Product Delivery • Deliver Some Useful Part By Deadline • E.g., Tenants can move into a floor while rest of building being complete. Ship version of software without all the features • Issues • Delivers something on time that is useful • Things are delivered incrementally (and therefore evolve versus big bang) • Feedback incorporated in development • Allows possibility of phased payment (get some money sooner) • Need customer for early releases (may not be interested in paying for scaled down version). • Need to address seamless upgrade paths. • Not work well with things not lending itself to incremental approach (e.g., automobiles)

BC Strat - Phased Product Delivery • Get something quick to machete then make it right • E.g., build a bridge (pontoon) then replace it with concrete. Build basic capability (e.g., Web site) then replace it with full functionality • Issues • Clearly more expensive • Gets foothold established • Incorporates feedback • Good when time is an issue or requirements not well known (I.g., need to learn during the process)

BC Strat - Change Profit Requirement • Reduce profit margin to be competitive • If cannot make cost goals, chance margins • May help you win bid • Issues • May not be enough return on investment to keep company going • May help struggling firm to grow and eventually take on other projects • May leverage success on 1 project with others (e.g.,consultants may sell initial work cheap to hopefully gain other work with big client).

Enterprise Lvl Balancing • At enterprise level (of company or organization) must decide on which projects to go forward on • Given limited resources and priorities • E.g., clearly better to pursue 8 projects and finish them 100% then 10 projects with only 80%

Enterprise Lvl Balancing - E.g., • For Example • A company may decide to cut resources (say by 15%) on stable, older technology product and funnel them into the new technology product with • higher profit margins • attracts new customers • enters more growth area • Company outsources job function to • encourage engineers to move towards core business • Concentrate on core competencies • Alternatives available to enterprise level are the same as project and resource level • More an issue of span of control

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