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UNIT- 3 SCHEDULING & RESOURCE ALLOCATION
PERT & CPM Networks - Crashing – Project Uncertainty and Risk Management – Simulation – Gantt Charts – Expediting a
project – Resource loading and leveling. Allocating scarce resources – Goldratt’s Critical Chain
TABLE OF CONTENTS

PERT & CPM NETWORKS.................................................................................................................2

CRASHING.........................................................................................................................................4

PROJECT UNCERTAINTY AND RISK MANAGEMENT....................................................................4

SIMULATION.....................................................................................................................................6

GANTT CHARTS................................................................................................................................6

EXPEDITING A PROJECT.................................................................................................................8

RESOURCE LOADING AND LEVELING..........................................................................................9

ALLOCATING SCARCE RESOURCES...............................................................................................10

GOLDRATT’S CRITICAL CHAIN.......................................................................................................10

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UNIT III
PERT Analysis

Program Evaluation and Review Technique (PERT) is a method used to examine the tasks in a schedule and
determine a Critical Path Method variation (CPM). It analyzes the time required to complete each task and its
associated dependencies to determine the minimum time to complete a project. It estimates the shortest possible
time each activity will take, the most likely length of time, and the longest time that might be taken if the activity
takes longer than expected. The US Navy developed the method in 1957 on the Polaris nuclear submarine project.
PERT Analysis informs Program Managers and project personnel on the project’s tasks and the estimated amount
of time required to complete each task. By utilizing this information a Program Manager will be able to estimate the
minimum amount of time required to complete the entire project. This helps in the creation of more realistic
schedules and cost estimates.

How to Conduct a PERT Analysis

To conduct PERT Analysis, three-time estimates are obtained (optimistic, pessimistic, and most likely) for every
activity along the Critical Path. Then use those estimates in the formula below to calculate how much time for each
project stage:
Formula: (P+4M+O)/6
Optimistic Time (O): the minimum possible time required to accomplish a task, assuming everything proceeds
better than is normally expected.
Pessimistic Time (P): the maximum possible time required to accomplish a task, assuming everything goes wrong
(excluding major catastrophes).
Most likely Time (M): the best estimate of the time required to accomplish a task, assuming everything proceeds
as normal.
Example of the three-time estimates

Example of a Critical Path Nodal Diagram

Definition Critical Path: The longest path of scheduled activities that must be met to execute a project.

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Advantages and Disadvantages of PERT Analysis
Understanding the advantages and disadvantages of utilizing PERT analysis will give program managers and
project personnel a better understanding of the realities of their schedules. It takes an experienced program
manager to truly utilize the benefits a PERT analysis can provide a project team.
Advantages: Provides Program Managers information to evaluate time and resources on a project. It helps give
them the necessary information to make informed decisions and set a realistic schedule.
Disadvantages: The analysis can be highly subjective and be influenced a few outspoken team members. It also
required a lot of time to continually update the analysis as a program progresses.
Critical Path Method (CPM)
The Critical Path Method (CPM) is a way to determine the critical path of a schedule. The critical path is the
longest path of scheduled activities that must be met to execute a project. This is important for Program Managers
(PM) to know since any problems on the critical path can prevent a project from moving forward and be delayed.
Earned Value Management (EVM) analysis focuses on the critical path and near-critical paths to identify cost and
schedule risks. Other schedule paths might have slack time to avoid delaying the entire project, unlike the critical
path. There might be multiple critical paths on a project. The method is used with Program Evaluation and Review
Techniques (PERT).
Critical Path Method (CPM) Goal
The goal of the Critical Path Method (CPM) is to determine the critical path in order to focus resources more
efficiently. The method helps Program Managers (PM):

Understand which tasks are on the critical path to determine a completion date
How best to manage tasks around the critical path to meet the scheduled end date
Focus on preventing schedule slips
Gain insight when planning work packages and tasks
Determining the Critical Path
The Critical Path is determined when analyzing a project’s schedule or network logic diagram and uses the Critical
Path Method (CPM). The CPM provides a graphical view of the project, predicts the time required for the project,
and shows which activities are critical to maintaining the schedule.
Critical Path Method (CPM) Steps
The seven (7) steps in the CPM are:
Step 1: List of all activities required to complete the project (see Work Breakdown Structure (WBS)),
Step 2: Determine the sequence of activities
Step 3: Draw a network diagram
Step 4: Determine the time that each activity will take to completion
Step 5: Determine the dependencies between the activities
Step 6: Determine the critical path
Step 7: Update the network diagram as the project progresses
The CPM calculates the longest path of planned activities to the end of the project and the earliest and latest
that each activity can start and finish without making the project longer. This process determines which
activities are “critical” (i.e., on the longest path) and which have “total float” (i.e., can be delayed without
making the project longer).

Difference Between Critical Chain Method (CCM) and Critical Path Method (CPM)
There are few differences between the Critical Chain Method (CCM) and the Critical Path Method (CPM) but
they both focus on schedule development and estimation. These are:

Critical Path Method is focused on how long a project is based upon task estimation and the amount of float on a
project.
Critical Chain Method operates on shortening how long a project is due to overestimation, uncertainties, and buffers
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Critical Path Method (CPM) and Program Evaluation and Review Technique (PERT)
Although Critical Path Method (CPM) and PERT are conceptually similar, some significant differences exist
mostly due to the type of projects best suited for each technique. PERT is better to use when there is much
uncertainty and when control over time outweighs control over costs. PERT handles uncertainty of the time
required to complete an activity by developing three estimates and then computing an expected time using the beta
distribution. CPM is better suited for well-defined projects and activities with little uncertainty, where accurate time
and resource estimates can be made. The percentage of completion of the activity than can be determined.
CRASHING
What is Project Crashing in Project Management?
No matter how much time and attention you pay to plan for your project, obstacles can still arise and delay
completion. That’s where project crashing comes in. Project crashing in project management is a method used
to speed up a project’s timeline by adding additional resources without changing the scope of the project.
Crashing activities in project management could include adding extra personnel to a task to finish it more
quickly, or it could involve paying a premium for a faster result.

Crashing in project management example

Let’s consider this simple project crashing example. Your team is tasked with launching a magazine to
celebrate your company’s 50th anniversary, but delays in approving the lead feature have caused the project to
fall behind. In order to ensure the magazine is in hand by the anniversary party, an element of the project’s
scope that can’t be changed, you choose to pay a rush fee for the printer. This project crashing step helped you
meet the immovable deadline, but it also increased your project budget.

A construction contractor might choose to employ a different type of project crashing. Inclement weather
caused a delay in pouring a house’s foundation, which subsequently delayed each step. Unfortunately, the
roofers are only available during the dates scheduled for your project, so the contractor has a choice. They can
either pay extra workers to frame the house more quickly so the roofers can proceed as they were originally
scheduled, or wait until they have another opening to put a roof on the house.

Waiting until the roofers have another opening might seem like a choice that could preserve the budget, but it
would likely lead to more delays in succeeding elements like electricity or flooring, which can’t be started
without a roof. Additional delays will inevitably impact other scheduled projects that can’t start because
manpower is tied up in this incomplete house. Because the scope of the project cannot change in order to reach
completion, crashing activities will be necessary here as well.

Timeline and budget trade-offs

Both of these crashing in project management examples demonstrate the critical trade-off when utilizing this
technique. The method is designed to help you reach a deadline or milestone more quickly, but it will require
additional resources to do so. Therefore, crashing in project management is a method that needs to be
considered carefully, as it is likely to result in other elements of a project falling behind, or the overall project
budget increasing.

It is best to employ project crashing when not doing so will lead to an even larger increase in the budget, or when
missing the deadline simply isn’t an option

PROJECT UNCERTAINTY AND RISK MANAGEMENT

Risks are commonly assumed to be the same as uncertainty in the area of risk management. Although there is a big
difference between risk and uncertainty, many professionals often think they are the same.
Therefore, I’m writing this blog post to explain it and I hope after reading it, you won’t have any problems
distinguishing between risk and uncertainty.

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Risk
A risk is an unplanned event that may affect one or some of your project objectives if it occurs. The risk is
positive if it affects your project positively, and it is negative if it affects the project negatively.

There are separate risk response strategies for negatives and positives.

The objective of a negative risk response strategy is to minimize their impact or probability, while the
objective of a positive risk response strategy is to maximize the chance or impact.

You might also hear two more risk terms: known and unknown. Known risks are identified during the identify
risks process and unknown risks are those you couldn’t identify.

A contingency plan is made for known risks, and you will use the contingency reserve to manage them. On the
other hand, unknown risks are managed through a workaround using the management reserve.
Uncertainty
Uncertainty is a lack of complete certainty. In uncertainty, the outcome of any event is entirely unknown, and
it cannot be measured or guessed; you don’t have any background information on the event.

Uncertainty is not an unknown risk.

In uncertainty, you completely lack the background information of an event, even though it has been
identified. In the case of unknown risk, although you have the background information, you missed it during
the identify risks process.

A Real-World Example of Risk and Uncertainty

Assume two famous teams consist of renowned players, and they are going to play a football match the next
day.

Can you tell me exactly which team is going to win?

No, you can’t; however, you can make an educated guess by reviewing and analyzing the past performances of
each player, the team, and the results of matches they played against each other.

Then you can come up with some numbers like there is a 30% chance of Team A or Team B winning, or there
is a 70% possibility of Team A or Team B losing the match.

Now, let us put the same football match in a different scenario.

Let us say again that two teams are going to play a game, and no players are selected for either team.

In this situation, if somebody asked you which team is going to win, what would your response be?

You will be clueless because you don’t know which team consists of which players, and you have no idea how
the teams will perform.

Here, you don’t have any information on past performance, and cannot predict the outcome of the event, even
though the rules and the stadium are the same.
This situation is called uncertainty.

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Risk Vs Uncertainty
The following are a few differences between risk and uncertainty:

In risk, you can predict the possibility of a future outcome, while in uncertainty you cannot.
Risks can be managed while uncertainty is uncontrollable.
Risks can be measured and quantified, while uncertainty cannot.
You can assign a probability to risks events, while with uncertainty, you can’t.
SIMULATION
A simulation is an analytical mathematical tool of project management that explores the impact of variances on
deliverables or outcomes during a given project. Variances constitute a wide variety of unforeseen and unexpected
events that may delay or impact the timeliness of deliverables. A computer model assists project management by
anticipating variables and estimating risk. The simulation usually provides the risk as an expression of probability.
Simulation of variances allows compensatory movements in project management to defray costs or durations in
estimated completion of deliverable. The simulation is usually conducted at the lowest tier of a project to assess the
overall effect of a variable on the entire project as a whole. Project simulations can be used proactively to define
common areas of great potential risk and incorporate appropriate checks and balances into the project management
plan to mitigate those risks. Project simulations usually use computational analysis that is dependent upon repeated
and random variables in order to obtain results. Simulations are used in project management when it is generally
not feasible to rely on concrete data to generate a result.
GANTT CHARTS
What Is a Gantt Chart?
A Gantt chart is a commonly used graphical depiction of a project schedule. It's a type of bar chart showing
the start and finish dates of a project's elements such as resources, planning and dependencies.

Henry Gantt (1861-1919), an American mechanical engineer, designed the Gantt chart.

KEY TAKEAWAYS
A Gantt chart is a visualization that helps in scheduling, managing, and monitoring specific tasks and
resources in a project.
It consists of a list of tasks and bars depicting each task's progress.
It's the most widely used chart in project management.
Gantt charts are used in heavy industries for projects like building dams, bridges, and highways, as well as
software development and building out of other goods and services.
Understanding Gantt Charts
The Gantt chart is the most widely used chart in project management. These charts are useful in planning a
project and defining the sequence of tasks that require completion. In most instances, the chart is displayed as
a horizontal bar chart.

Horizontal bars of different lengths represent the project timeline, which can include task sequences, duration,
and the start and end dates for each task. The horizontal bar also shows how much of a task requires
completion.

A Gantt chart helps in scheduling, managing, and monitoring specific tasks and resources in a project. The
chart shows the project timeline, which includes scheduled and completed work over a period. The Gantt chart
aids project managers in communicating project status or plans and also helps ensure the project remains on
track.
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The length of the bar is proportional to the time necessary for a task’s completion. The project tasks are
represented on the vertical axis.
Benefits of a Gantt Chart
The chart identifies tasks that may be executed in parallel and those that can't be started or finished until others
are complete. It can help detect potential bottlenecks and identify tasks that may have been excluded from the
project timeline.
The chart depicts things like: task slack time or additional time for completion of a task that shouldn't delay
the project; noncritical activities that may be delayed; and critical activities that must be executed on time.

Gantt charts can be used in managing projects of all sizes and types. These may include building infrastructure like
dams, bridges, and highways. They may also include software development and other technologies. Project
management tools, such as Microsoft Visio, Project, SharePoint, and Excel, or specialized software, such as Gantto
or Matchware, can help in designing Gantt charts.

Example of a Gantt Chart

If the project is about installing new software on a server, the project tasks that require completion are
conducting research, selecting a software product, testing the software, and installing it. A milestone is
selecting the software. These tasks appear as vertical lines on the chart.

Say the project duration is 40 days. Each task takes 10 days to complete, and each task is dependent on the
previous task. A critical activity is testing the software in the development and test environments. The task
start and end dates, duration, and milestones appear as horizontal bars. The percentage of work completed for
each task also is displayed on the horizontal bars.
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What are Gantt charts used for?
Gantt charts help visualize various tasks and projects that occur simultaneously with an organization, how far
along they have progressed. They are used by management to plan and schedule such projects so that
resources can be allocated in the optimal way and that projects that are prioritized can finish before less
important ones begin.

Who was Henry Gantt?

Henry Gantt was a social scientist and management consultant who also held a degree in mechanical
engineering. He worked in the field of scientific management, developing methods to streamline and increase
the productivity of corporations and their workforce. He created the Gantt chart in the 1910s to help
supervisors understand the progress of their labor force and to ensure tasks were on schedule.

What are the components of a Gantt Chart?

A Gantt chart can vary in complexity and depth, but will always have three key components: activities or tasks that
are to be done, running along the y-axis; milestones or progress stages indicated along the x-axis (either on the top
or bottom of the chart); and progress bars, denoted as horizontal bars, denoting how far along each task is at any
given point.

EXPEDITING A PROJECT
What is expediting in project management?
Expediting is a concept in purchasing and project management for securing the quality and timely delivery of goods
and components. The procurement department or an external expeditor controls the progress of manufacturing at
the supplier concerning quality, packing, conformity with standards and set timelines.
Keeping this in consideration, what does it mean to expedite an order?
ex·pe·dit·ed, ex·pe·dit·ing. to speed up the progress of; hasten: to expedite shipments. to accomplish
promptly, as a piece of business; dispatch: to expedite one's duties. to issue or dispatch, as an official
document or letter.

Additionally, what is the difference in expediter or expeditor? As nouns the difference between expeditor and
expediter is that expeditor is while expediter is a person who expedites.

Similarly, it is asked, how do you expedite a project?

3 Steps to Expedite Project Management

Make probable associations. In cases where corporate goals align with commonalities that have appeared in
the past, the project management lifecycle dictates how some future elements of a challenge are likely to
progress.
Remember to remain flexible.
Always be testing.
How do you use the word expedite in a sentence?

expedite Sentence Examples

Please expedite the delivery of the package.

To expedite the approval process, you can apply online.
He needs to expedite completion of the report.
The object of grafting is to expedite and increase the formation of flowers and fruit.
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RESOURCE LOADING AND LEVELING
What is Resource Loading in Project Management?
Resource loading in project management is the process of loading employees’ total available hours with
assignments. In resource loading, an employee will typically be assigned a percentage of a project, and can
then be assigned additional project percentages until that employee reaches 100% of their hourly work week
capacity. Once an employee reaches 100%, they are effectively booked and should not be scheduled for more
work. By looking at a resource loading chart, a manager can view the total hours their employees can work for
a given time period and adjust each team member’s assignments accordingly.

Resource loading's main drawback is that, while managers are technically able to schedule employees for
100% work, doing so will inevitably mean that employees end up overloaded at some point. This can happen
when unexpected responsibilities come up during a project.

In a simple resource loading example, if an employee is scheduled at 100% and has to fill in for another
employee who is sick or unavailable, that employee will then be working at over 100% capacity. Projects can
go over deadline or budget due to workforce limitations if you use resource loading to manage workloads.
Resource leveling
In project management, resource leveling is defined as "A technique in which start and finish dates are
adjusted based on resource constraints with the goal of balancing demand for resources with the available
supply."
When performing project planning activities, the manager will attempt to schedule certain tasks
simultaneously. When more resources such as machines or people are needed than are available, or perhaps a
specific person is needed in both tasks, the tasks will have to be rescheduled concurrently or even sequentially
to manage the constraint. Project planning resource leveling is the process of resolving these conflicts. It can
also be used to balance the workload of primary resources over the course of the project[s], usually at the
expense of one of the traditional triple constraints (time, cost, scope). When using specially designed project
software, leveling typically means resolving conflicts of over allocations in the project plan by allowing the
software to calculate delays and update tasks automatically. Project management software leveling requires
delaying tasks until resources are available. In more complex environments, resources could be allocated
across multiple, concurrent projects thus requiring the process of resource leveling to be performed at
company level.

Resource leveling techniques are closely related with critical path calculations. For that reason, total float,
activity sequences and logic of the network diagram effect the required resource quantities per time. Resource
Leveling, called Resource Leveling, is a technique that avoids over-allocation. Resources are taken from non-
critical activities and allocated to critical activities. However, while leveling ensures that resources are not
overestimated, avoiding spikes, the method typically increases project time. Therefore, cost and time analysis
should be done before leveling and rechecked after applying the method.

Resource leveling Techniques

Critical path is a common type of technique used by project managers when it comes to resource leveling. The
critical path represents for both the longest and shortest time duration paths in the network diagram to
complete the project.

However, apart from the widely used critical path concept, project managers use fast tracking and crashing if
things get out of hand.

Fast tracking: This performs critical path tasks. This buys time. The prominent feature of this technique is
that although the work is completed for the moment, possibility of rework is higher.
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Crashing : This refers to assigning resources in addition to existing resources to get work done faster,
associated with additional cost such as labor, equipment, etc.
What is the difference between resource loading and resource leveling?
Resource loading and resource-leveling are similar in that they both deal with manpower. However, resource
loading attempts to balance other additional elements. The difference between resource loading and resource
leveling is that resource loading looks to maximize workforce capacity, whereas leveling prioritizes timelines
and budgets as well.

Resource leveling requires managers to have an understanding of whether a project is critical. A manager will
then shift all available resources and money to complete those projects deemed critical. When resources are
utilized, resource leveling will dictate that start or end dates be adjusted to reduce the conflict.

The drawback of resource leveling is that it can be difficult for managers to anticipate which projects are the
highest priority ahead of time. Resource loading and leveling are both important elements in the project
management decision-making arena.

Managing resource allocation with 360-degree visibility

Both resource loading and resource-leveling require managers to understand their team’s workload at a glance
and adjust accordingly. Using Wrike for project management can give team leaders 360-degree visibility
around a project, allowing them to make decisions about budget, staffing, and timelines, whether they prefer
resource loading or leveling.

Project management software that creates flexibility and visibility can help mitigate the drawbacks of resource
constraints, ensuring your team meets deadlines and uses budget and team workload as efficiently as possible.
ALLOCATING SCARCE RESOURCES
What is Resource Allocation in Project Management?
Resource allocation is the process of assigning and scheduling available resources in the most effective and
economical way possible. Projects will always need resources but they can often be scarce. The task, therefore,
lies with the project manager to determine the proper timing and allocation of those resources within the
project schedule.

So, what is resource allocation in project management? It is the management and delegation of resources
throughout a project to ensure that it runs as smoothly and successfully as possible.
GOLDRATT’S CRITICAL CHAIN
The Critical Chain Method has its roots in another one of Dr. Goldratt’s inventions: the Theory of Constraints
(TOC). This project management method comes into force after the initial project schedule is prepared, which
includes establishing task dependencies. The evolved critical path is reworked based on the Critical Chain
Method. To do so, the methodology assumes constraints related to each task.

A few of these constraints include:

There is a certain amount of uncertainty in each task.

Task durations are often overestimated by the team members or task owners. This is typically done to add a
safety margin to the task so as to be certain of its completion in the decided duration.In most cases, the tasks
should not take the time estimated, which includes the safety margin, and should be completed earlier.If the
safety margin assumed is not needed, it is actually wasted.

If the task is finished sooner, it may not necessarily mean that the successor task can start earlier as the
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resources required for the successor task may not be available until their scheduled time. In other words, the
saved time cannot be passed on to finish the project early. On the other hand, if there are delays over and
above the estimated schedules, these delays will most definitely get passed on, and, in most cases, will
exponentially increase the project schedule.

With the above assumptions, the Critical Path Methodology of project management recommends pooling of
the task buffers and adding them at the end of the critical path:

Communication planning

A project communication plan that will guide the messages to a project’s affected stakeholders is a critical part
of any project. How well you communicate throughout the life cycle of your project can make the difference
between success and failure.

During the planning phase of your project, you need to create a high level Communication Management Plan
that defines the general communication requirements for your project. This plan should include:

The plan’s purpose and approach

Communication goals and objectives

Communication roles

Communication tools and methods, and

High level project communication messages

It’s also helpful to include any specific requirements or standards that govern your project, if applicable.

Creating Your Project Communication Plan

A communication plan isn’t created in a vacuum. Although there are some standard items you’ll include in
your plan, such as Project Kick Off, Review, Status, and Team Meetings, it’s important to spend time
gathering input from all stakeholder groups to ensure the plan is comprehensive. That said, it’s also important
to note that changes may need to be made to the plan as the project moves forward. Here’s the general
framework.

Plan Purpose and Approach

Include a high level description of the plan, why it exists and a general idea of how you will implement the
plan on your project. Think of this as a summary section. I always like to do this section last – even though it’s
first – because it helps you capture the essence of what you’ve detailed in the plan.

Communication Goals and Objectives

Define what you expect to achieve by communicating. This could be any number of things and is dependent
on what your project will accomplish. Generally, these should be focused on educating and updating anyone
impacted by the project. Here are a few ideas:

Increase knowledge about the project and why it’s important

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Create a dialogue among employees and key stakeholders to gain acceptance of the project

Provide opportunities for feedback from stakeholder groups

Communication Roles

Communication won’t come from just one person during your project. Clearly define all roles and their
corresponding communication responsibilities. Here are a few roles to consider:

Project Sponsor

Project Manager

Leadership / Management Team

Steering Team

Project Lead

Project Team Member

Communication Tools and Methods

What tools you use and how a message is delivered will vary from project to project. The key to remember is
to not get “stuck” using a single method for your communication messages. Your preferred tools and methods
should be those where the receiving group will have the best chance for comprehending what you are
communicating.

Brainstorming a list of possible methods can get you started. Here are just a few:

Meeting summaries

Status reports

Newsletters

Formal presentations

Surveys

Internet / Intranet Web Page

Informal small group meetings

Brown bag lunch workshops

High Level Project Communication Messages

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It’s a good idea to include a matrix in this plan of the specific project management related communication,
such as project kick off, status and review meetings. Define the key objective, topic of discussion, delivery
method, frequency, audience, and role that owns responsibility for making it happen. This helps set the
expectation and boundaries for project communication.

It can also be helpful to turn your matrix into an informative “at a glance” graphic that can be shared and used
by anyone on the project.Project Communication Infographic Other Communication Plan RequirementsIf
there’s a chain of command for specific communications, it may be helpful to define a flowchart to ensure
everyone is clear on what’s required.

You may also need to include a communication escalation process for critical project impacts.It’s important to
remember that each project will have a different communication impact and therefore a different
communication management plan. Working from a basic framework will help ensure key components are
included.

You can pick up a free template to help you get started here to give you an idea regarding the structure and
content of your plan.In addition to the matrix of project related communication, you need to develop a Project
Communication Action Plan to reach the broad audience of stakeholders for your project. Your action plan
will dictate who hears what and when they will hear it. It’s a detailed plan that includes:

Project Communication Action Plan

I know it’s a lot of work, but you don’t have to start from scratch. You can get a copy of the Project
Communication Action Plan template here.Moving Forward With Your Communication PlanProactively
creating your Communication Management Plan and Project Communication Action Plan at the beginning of
your project will take some effort, but buy you a lot of time down the road when you’re knee deep in
deliverables. Managing it on a regular basis like you do your project plan will save you a lot of headaches and
give your project a greater chance for success

Critical Path Methodology

Critical Path project management defines three types of buffers:

Project Buffer: The total pooled buffer depicted in the image above is referred to as the project buffer.

Feeding Buffer: In a project network, there are path/s which feed into the critical path. The pooled buffer on
each such path represents the feeding buffer to the critical path (depicted in the image below), resulting in
providing some slack to the critical path.

Resource Buffer: This is a virtual task inserted just before critical chain tasks that require critical resources.
This acts as a trigger point for the resource, indicating when the critical path is about to begin.

CCPM Methodology

As the progress of the project is reported, the critical chain is recalculated. In fact, monitoring and controlling
of the project primarily focuses on utilization of the buffers. As you can see, the critical chain method
considers the basic critical path based project network and schedule to derive a completely new schedule.

The critical path project management methodology is very effective in organizations which do not have
evolved project management practices.
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Along similar lines, the event chain methodology of project management focuses on determining the uncertain
events and the chain reactions they propagate. It is a method of modelling uncertainties, and is based on Monte
Carlo analysis, Bayesian Belief Network, and other established simulation methodologies. When they occur,
events can cause other events, triggering an event chain, which will effectively alter the course of the project.

It is clear that neither the critical path project management methodology nor the event chain methodology can
be considered alternatives to the standard methodology for project management as advocated by PMBOK.
While the critical path project management methodology can be at best used as a tool for deriving project
schedule networks, the event chain methodology for project management can be used as a tool for quantitative
risk analysis.

Centralization of Effective Leadership A chapter has been added that talks about what Project Management
Leadership means, and PMI’s expectations of a project management leader. The new edition also reviews
competencies and skills that project management professionals must possess. This makes sense, considering
that we’ve seen the Exam Content Outline introduce this throughout the last few years, and it was a logical
step to bring it into the guide.

Effective leadership is mentioned in the 5th edition but is now being consolidated into one section. Consider
this as a continuation of PMI’s message—a call to action that Project Management has three components that
aspiring professionals need to continually develop: technical project management, business acumen, and
leadership.

Here is an example of a RBS structure taken from Risk Doctor.

An RBS template is typically chosen for the entire organization and it helps making sure all the relevant points
are covered. The RBS works like a checklist. During the risk identification stage, the PM works through each
of the items and checks those that are applicable for the given project.

The scoring will help the PM understand the areas of the project which require more attention. For instance, if
the technical risk has a higher risk score, then the PM must make sure he/she has the right personnel and
toolsets to handle the process.

The RBS would help identify the concentration of risks in a certain category and dependencies among risks.
The PM can also monitor & evaluate the risk mitigation process over the course of the project. Even more
broadly, the RBS can help in comparing competing tenders from different vendors as we now have a
quantitative way to compare different project proposals.

Team development

set of techniques used to help project teams learn, grow, and develop into more effective teams. The
techniques can be applied throughout the project lifecycle, during team meetings, and/or workshops to
facilitate team member affiliation.

The benefits of Team Building at the start of projects are: greater collaboration, where information is
shared freely among team members, and team members feel that they have invested themselves in the outcome

enhanced communication

more effective use of resources, talents, and strengths, while minimizing individual weaknesses and/or gaps
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improved decision making, while reducing lead times in implementing team actions

greater commitment to team results

higher quality results

See Facilitation for leadership skills and knowledge required to effect team building and for guidelines for
conducting team building ice breakers.

enable more effective and productive teams.

To enable team affiliation during working sessions and team meetings.

Procedures

Perform a self-assessment.

Diagnose team behaviors.

Meet with individual team members.

Analyze and synthesize information.

Bring the team together.

Set objectives and goals.

Define and assign roles.

Monitor as required.

Reward the team and team members for performance.

Instructions

At the beginning of a project, each of the project teams (e.g., Project Team, Reference Group, and/or Steering
Committee) needs to become focused and to learn how to operate together. Typically, during an orientation
meeting, team members are briefed on the overall project structure, project objectives, and timelines (see
Project Management).

It is also necessary to clearly define roles. Each team member must understand what his role is and what he is
expected to do to contribute to the overall project. This phase of team building can be referred to as
"searching," and it is important that searching time is minimized by clearly defining the roles and
responsibilities. In addition, each team member needs to understand what everyone else's contribution and role
will be during the project. Getting this right upfront can go a long way to facilitate team building.

It is also important for each team member to feel that he or she has been assigned to a meaningful task and that
the task is "doable." Unrealistic deadlines and/or requests work against team building. Project leadership is
about striking a balance.
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Provide feedback to the team as a whole and to each individual on the team on a periodic basis throughout a
project. Be open, honest, and constructive. This may require team and/or task leaders to perform a self-
assessment in order to diagnose their own behaviors, and to determine their leadership style and effectiveness.
A number of self-assessment instruments and instruments to diagnose team member behaviors are
commercially available.

During initial project meetings, as well as in any team meeting when needed, conduct a short team affiliation
exercise to help the team "gel." Ice breaker exercises, including personal introductions and/or self-disclosure,
can help. Use judgment and an understanding of the culture as a guide to selection of team exercises. Dinners,
team lunches, etc., can also be used to help grow a team. Experiment and have fun

Earned value management

EV provides a measurement that allows the project team to readily compare how much work has actuallybeen
completed against the amount of work that was planned to be accomplished. The practice ofmonitoring,
reviewing, and reacting to fluctuations in EV is known as Earned Value Management (EVM).EVM is an
evaluation technique that integrates technical performance requirements, resource planning,and schedules,
while taking risk into consideration.

The Office of Management and Budget (OMB) memorandum 5-23 requires EVM be used to “monitor
andmanage IT project performance”. If implemented correctly and applied diligently throughout the life of
aproject, EVM can provide a wealth of information to project teams and even provide an early warning
ofpotential project budget, schedule, and overall performance issues.

The basics of EVinvolve understanding three key values:

Budget At Complete (BAC) – The budget values established for the work to be performed. How much should
the work cost when done?

Actual Cost of Work Performed (ACWP) – The total costs actually incurred in accomplishing the work
performed during a given time period. How much did the completed work

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Monitoring and Controlling Processes

The Monitoring and Controlling Process Group consists of those processes required to

track, review, and regulate the progress and performance of the project; identify any areas in which changes to
the plan are required; and initiate the corresponding changes. The key benefit of this Process Group is that
project performance is observed and measured regularly and consistently to identify variances from the project
management plan. The Monitoring and Controlling Process Group also includes:

controlling changes and recommending preventive action in anticipation of possible problems,monitoring the
ongoing project activities against the project management plan and the project performance baseline,
andinfluencing the factors that could circumvent integrated change control so onlyapproved changes are
implementedThis continuous monitoring provides the project team insight into the health of theproject and
identifies any areas requiring additional attention.

The Monitoring andControlling Process Group not only monitors and controls the work being done within
aProcess Group, but also monitors and controls the entire project effort. In multi-phaseprojects, the Monitoring
and Controlling Process Group coordinates project phases inorder to implement corrective or preventive
actions to bring the project into compliancewith the project management plan.

Project monitor and control processes are presented on the next figure e centre of project monitor and control
are 2 processes: monitor and control projectwork and perform integrated change control. These processes are
mutually relatedthrough change request life cycle management.

Monitor and Control Project WorkMonitor and Control Project Work is the process of tracking, reviewing,
and regulatingthe progress to meet the performance objectives defined in the project managementplan.
Monitoring includes status reporting, progress measurement, and forecasting.

Performance reports provide information on the project’s performance with regard to scope, schedule, cost,
resources, quality, and risk, which can be used as inputs to other processes. Monitor and Control Project Work
is the process of tracking, reviewing, and regulating the progress to meet the performance objectives defined in
the project management plan. Monitoring is an aspect of project management performed throughout the
project.

The Monitor and Control Project Work process is concerned with:

Comparing actual project performance against the project management plan;

Assessing performance to determine whether any corrective or preventiveactions are indicated, and then
recommending those actions as necessary Identifying new risks and analyzing, tracking, and monitoring
existing project risks to make sure the risks are identified, their status is reported, and that appropriate risk
response plans are being executed;

Providing information to support status reporting, progress measurement, and forecasting;Providing forecasts
to update current cost and current schedule information; and Monitoring implementation of approved changes
as they occur.Inputs and outputs of this process are presented on the following figure:Figure 8. Project Work
Monitor and Control Inputs and Outputs Relationships with other processes are shown on the next figure:
those planned is the fundamental principle of project monitoring process.Whenever there is a variance,
corrective action is required to keep the project on schedule and to budget.

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Monitoring Process (on a regular basis)

Collect.Get the data about the current status of your project.Measure and Compare.

Compare with baseline plan, highlight any deviation, make a projection based on current data.

Assess and Re-plan.Decide whether corrective actions are necessary.If so, plan, document, and take the
corrective actions.

Monitoring and controlling activities

Involves tracking, reviewing, and regulating project progress

Includes status reporting, progress measurement, and forecasting

Reports on scope, schedule, cost, resources, quality, and risks

Controls project and project document changes

Includes control of scope, schedule, costs, and risks

Formalizes acceptance of deliverables

Records quality control results

Implements risk treatment plans and actions

Administers suppliers

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