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Session 7

Entrepreneurship and Project Management

Dr. Maneesha Pednekar

3rd September 2014

Objectives
The objective of this session is to introduce :

Project Time Management

6.1 Define Activities
6.2 Sequence Activities
6.3 Estimate Activity Resources
6.4 Estimate Activity Duration
6.5 Develop Schedule
6.6 Control Schedule

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Project Management Process & Knowledge Areas

Process Groups

Knowledge Areas

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Any project can be estimated accurately

(once it's complete).

Why Estimation is important

Estimates are needed to support good decisions

Estimates are needed to schedule work

Estimates are needed to determine how long the project should take and its cost

Estimates are needed to determine whether the project is worth doing

Estimates are needed to develop cash flow needs

Estimates are needed to determine how well the project is progressing

Estimates are needed to develop time phased budgets and establish the project
baselines

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Factors influencing the quality of estimates

Planning Horizon

Project Duration

People

Project Structure and Organization

Padding estimates

Organization Culture

Other factors

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Project Time Management

Overview

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6.3 Estimate Activity Resources

Estimate Activity Resources is the process of estimating the type and quantities of material,
people, equipment or supplies required to perform each activity. Closely coordinated with
Costs
INPUTS

TOOLS & TECHNIQUES

OUTPUT

Activity List

Expert Judgment

Activity Attributes

Alternative Analysis

Activity Resource
Requirements

Resource Calendars

Published Estimate Data

Enterprise Environmental
Factors

Bottom Up Estimating

Organizational Process
Assets

Project Management Software

Resource Requirement
Structure
Project Document
Updates

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6.3 Estimate Activity Resources

Expert Judgment: specialized knowledge regarding resource planning & Estimating

Alternatives Analysis: There could be multiple alternatives to accomplishing an activity ;eg

different skill levels; alternative tools & Technologies; Buy or make decisions
Published Estimating Data: Published Company/Industry benchmarks for different resources,
trade, material, equipment across different locations
Bottom Up Estimating: When an activity cannot be estimated with a reasonable level of
confidence; It is decomposed further and resource needs are estimated. These estimates are
then aggregated into total resource requirements at activity levels
Project Management Software: able to plan, organize and manage resource pools and
develop resource estimates.

Tools & Techniques

6.1 Estimate Activity Resources

-

Activity
Resource
Requirements:
Resources required for each activity

Resource
Breakdown
Structure:
Hierarchical structure of Resources by
Resource Category and Resource type

Project Documents:
Activity List, Activity Attributes, Resource
Calendars

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Resource Breakdown Structure

Output

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6.4 Estimate Activity Duration

Estimate Activity Duration is the process of approximating the number of work periods
needed to complete individual activities with estimated resources. Estimating activity
durations uses Information on activity scope, required resource types, quantities and
calendars. The duration is progressively elaborated
INPUTS

TOOLS & TECHNIQUES

OUTPUT

Activity List

Expert Judgment

Activity Duration Estimates

Activity Attributes

Analogous estimating

Project Document Updates

Activity Resource Requirements

Parametric estimating

Resource Calendars

Three Point Estimates

Project Scope Statement

Reserve Analysis

Enterprise Environmental
Factors
Organizational Process Assets

6.4 Estimate Activity Duration

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Activity Resource Requirements: For ex if lower skilled resources are assigned, there
maybe reduced productivity due to increased communication, training and co-ordinations

Resource Calendars: The availability, capability, type could affect schedule duration. For
eg. when a senior resource is assigned full time, activity could be completed in less time

Project Scope Statements

Project assumptions and constraints from scope statement must be considered when
estimating durations
Assumptions for eg could be Information Availability, Reporting periods.
Constraints could be availability of skilled resources, Contract terms and reporting
Enterprise Environmental factors:
Duration Estimating Database, Productivity, Published Commercial information

Input

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6.4 Estimate Activity Duration

Analogous
-Use of previous
projects data for
estimating future
project
- Used when
limited amount of
information/at
start of the project
- Combined with
Expert judgment
- Less costly and
time consuming

Parametric

Uses statistical relationship between

Historical data and other variables eg.
Sq Ft in construction ; Number of labor
hrs per unit etc

Reserve Analysis

PERT

Activity duration can be improved by

using estimation uncertainty and risk
PERT:
Most likely

Optimistic:

Best case scenario

Pessimistic

Expected Duration

Worst case scenario

A reserve (buffer) is
added to the overall
schedule . It can be
percentage of
estimation duration
or developed using
quantitative analysis
As more information
about the project
becomes available,
the contingency
reserve may be
used, reduced or
eliminated

Tools & Techniques

6.4 Estimate Activity Duration

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Activity Duration Estimates: Quantitative assessments of the likely number of work

periods required to complete the activity
- eg. 2weeks +- 2 days. indication at least 8 days and not more than 12 days
- 85% probability of completing activity within 3 weeks

Project Documents list

- Activity Attributes
- Assumptions

Output

Scenario 1

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You have won a project for developing a website for a B2C Client. The client wants the
website delivered in 4 months. The website would allow the customers to interact with the
client company . this requires that careful consideration of user experience

In the past you have delivered similar projects. You are fairly confident about the technology
that will be used. However, in the past you delivered such projects for clients in B2B area.

What approach you would recommend for estimation?

Scenario 2

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You own a firm which specializes in Painting Office spaces (both exteriors and interiors)

You are invited to bid for painting of an upcoming commercial complex and need to provide
estimates of time and cost

the commercial complex is large and expected to be delivered compared to world class
standards.

What estimation approach would you adopt ?

Scenario 3

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you are a project manager managing a software project.

You have recently been assigned a new large enhancement on an existing project. You
estimate the project to take approx 36 weeks.

However, when you speak to HR about recruiting an resource with niche skill for the project,
you realize he may be onboarded 4 weeks later. this could clearly impact the schedule.

However, there is also an probability that you are evaluating of leveraging resusable
components from past projects for this enhancement. you expect to cut down time on this
enhancement by atleast 6 weeks if it goes through.

How would you go about estimating for this Enhancement Project?

Scenario 4

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you are a project manager managing a construction project.

Your estimate for the project is 24 months. However, you foresee following risks in terms of
timelines:
-

There is likely to be a delay of Government approvals by 6- 8 weeks

Part of the material is expected to be imported. again there might be issues getting
approval for importing material.

Some of the equipment to be used has limited capacity and you will need to factor in
the delays due to unavailability

What would be your estimation approach?

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