Activity Planning and Risk

Management
+
Unit - III
CHAPTER - 3
ACTIVITY PLANNING AND RISK MANAGEMENT

Syllabus : Objectives of Activity planning - Project schedules - Activities - Sequencing

and scheduling - Network Planning models - Forward Pass & Backward Pass
techniques - Critical path (CRM) method - Risk identification - Assessment -
Monitoring - PERT technique - Monte Carlo simulation - Resource Allocation
- Creation of critical patterns - Cost schedules.

Section No. Topic Name Page No.

3.1 Introduction 3-2
3.2 Project Schedule 3-3
3.3 Various Approaches Towards Identifying Activity 3-5
3.4 Planning, Sequencing and Scheduling the Activities 3-8
3.5 Scheduling Techniques 3 - 12
3.6 Network Planning Models 3 - 15
3.7 Risk and Risk Management Process 3 - 33
3.8 Monte Carlo Simulation 3 - 53
3.9 Resource Allocation 3 - 59
3.10 Cost Scheduling 3 - 63
3.11 A Summary or Hammock Activity 3 - 64

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 Activity Planning and Risk Management

3.1 Introduction

Project Vs Activity

 A project is composed of a number of related activities.

 A project may start when at least one of its activities is ready to start.
 A project will be completed when all of its activities have been completed.
 An activity must have a clear start and a clear stop.
 An activity should have a duration that can be forecasted.
 Some activities may require that other activities are completed before they can begin.
3.1.1 Activity Planning

 A project plan is a schedule of activities indicating the start and stop for each activity
 Also provide the project and resource schedules
 The start and stop of each activity should be visible and easy to measure
 Each activity should have some ‘deliverables’ for ease of monitoring
 During planning, managers consider :
o Resource available : Make sure the resources are there when needed.
o Resource allocation : Make sure there are no competing resources.
o Staff responsibility : Schedule showing which staff carry out each activity
o Project Monitoring : Measure the actual achievement.
o Cash flow forecasting : Produce a timed cash flow forecast.
o Re-planning of the project towards the pre-defined goal : Re-plan the project so
that it will correct drift from the target.
3.1.2 Objectives of Activity Planning

Once a detailed activity plan is finished, it can be used to achieve the following :
 Feasibility assessment : Can the project be delivered on time and within budget
(constraints) ?
 Resources allocation :
o How to allocate the resources with best results ?
o When should those resources be ready ?
 Detailed costing :
o A detailed estimates on the project cost and the timings.
o A detailed forecast on when the expenditure is likely to take place.

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 Motivation :
o Providing targets and being able to monitor the achievement of the targets at the
end of the activity can be a good strategy to motivate staff.
 Co-ordination :
o Help to set the time and requirements of staff from different departments to work
together in the project, if necessary.
o Provide a good way for the project teams to communicate, cooperate and
collaborate among themselves.
3.1.3 Different Levels of Plans

 Project Schedule : A plan that shows

1. the dates when each activity should start and stop
2. when and how much of the resources will be required
 Activity Plan : A plan that describes
1. how each activity will be undertaken
2. the activity plan is done in steps 4 and 5 of step Wise framework.

3.2 Project Schedule

 The project schedule is the core of the project plan.
 It is used by the project manager to commit people to the project and show the
organization how the work will be performed.
 Schedules are used to communicate final deadlines and, in some cases, to determine
resource needs. They are also used as a kind of checklist to make sure that every task
necessary is performed. If a task is on the schedule, the team is committed to doing it.
 In other words, the project schedule is the means by which the project manager brings
the team and the project under control.
 A project schedule designates work to be done and specifies deadlines for completing
tasks and deliverables. The project schedule depicts :
o Time (duration) estimates for all project tasks
o Start and finish dates for the tasks
o Names of staff resources assigned to complete the tasks
o Sequence of tasks
 A major component of a project schedule is a Work Breakdown Structure (WBS). The
project schedule is constructed to reflect the work breakdown structure.

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Work Breakdown Structure :

 Work Breakdown Structure (WBS) provides a notation for representing task structure :
o Activities are represented as nodes of a tree.
o The root of the tree is labelled by the problem name.
o Each task is broken down into smaller tasks and represented as children nodes.
 It is not useful to subdivide tasks into units which take less than a week or two to
execute.
o Finer subdivisions mean that a large amount of time must be spent on estimating
and chart revision.

Fig. 3.2.1
3.2.1 Building the Project
Schedule
Various steps for building a project schedule :
Step One : Define Activities

 The goal of the activity definition step is to identify all the tasks required to accomplish
the product. This frequently results in identifying all the work products and deliverables
that comprise the project. These deliverables are found as the components of a Work
Breakdown Structure (WBS). The project schedule further decomposes these
deliverables into the actual activities required to complete the work.
Step Two : Sequence Activities

 The next step is to sequence the activities with dependencies. During this step, identify
dependencies of related tasks and document them in the project schedule.
Step Three : Estimate Activity Resources
 The next step is to identify the resources and their availability to the project. Remember
that not all team members will be 100 % available to the project as some team members
will be working on multiple projects. In this step, also assign resources to each of the
tasks.
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Step Four : Estimate Activity Durations

 With resources assigned, the next step is to estimate each task's duration. The activity's
duration is the number of working periods required to complete the task.
Step Five : Develop Schedule

 The next step is to analyse the project schedule and examine the sequences, durations,
resources and inevitable scheduling constraints. The goal of this step is to validate the
project schedule correctly models the planned work.

3.3 Various Approaches Towards Identifying Activity

 Activity-based approach
 Product-based approach
 Hybrid approach
3.3.1 Activity-Based Approach

 Creating a list of activities that the project is thought to involve. This includes
brainstorming from team members and analysis of past projects.
 For a large software project, it is good to subdivide the project into the main life cycle
phases and list the activities accordingly.
 Use Work Breakdown Structure (WBS) to generate a task list.
 WBS involves
o identifying the main tasks.
o break each main task down into subtasks.
o the subtasks can further be broken down into lower level tasks.

Fig. 3.3.1 Work breakdown structure (an extract)

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Advantages
 More likely to obtain a task catalogue that is complete and is composed of non-
overlapping tasks.
 WBS represents a structure that can be refined as the project proceeds.
 The structure already suggests the dependencies among the activities.
Disadvantage

 Very likely to miss some activities if an unstructured activity list is used

3.3.2 Product-Based Approach
 Product Breakdown Structure (PBS)
o To show how a system can be broken down into different products for
development.
 Product Flow Diagram (PFD)
o To indicate, for each product, which products are required as ‘inputs’.
Advantage

 Less likely to miss a product unexpectedly from a PBS

Example

Fig. 3.3.2 A product breakdown structure (an extract)

3.3.3 Hybrid Approach

 A mix of the activity-based approach and the product-based approach.

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 More commonly used approach.

 The WBS consists of
o a list of the products of the project; and
o a list of activities for each product
 The degree to which the structuring is based on the product or the activity largely
depends on the nature of the project and the particular development method.

Fig. 3.3.2
 IBM in its MITP methodology suggests 5 levels
Level 1 : Project
Level 2 : Deliverables (software, manuals etc.)
Level 3 : Components
Level 4 : Work-packages
Level 5 : Tasks (individual responsibility)
 MITP : Managing the Implementation of Total Project
 Components : Key work items lead to the production of the deliverables
 Work-packages : Major work items or collection of related tasks to produce a
component

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3.4 Planning, Sequencing and Scheduling the Activities

 Once we have a project plan (or, project schedule), we need to schedule the activities in
a project taking into account the resource constraints.
Sequencing and Scheduling Activities
 A scheduling is required for every activity that is planned along with the resources and
can be represented using a bar chart.
 A scheduling clearly indicates when each of the project’s activities is planned to occur
and what resources it will need.
 The scheduling has taken an account of the availability of staff and the ways in which
the activities have been allocated to them.
 The chart defines two factors,
o Sequencing of tasks
o Schedule of task
 The logical relationship between the activities are grouped together and then scheduled
for resources.
Weeks 1 2 3 4 5 6 7 8 9
Person
Requirements

Design
Module 1
Design
Module 2
Code
Module 1
Code
Module 2
Integration

System
Acceptance

Fig. 3.4.1 Bar cart representing scheduling

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Two activities
 To sequence the tasks according to their logical relationships.
 To schedule them taking into account resources and other factors.
 Combining sequencing - scheduling approach is suitable only for smaller projects and
needs to be separated for complex projects as individual process.
Approaches

 Separation between the logical and the physical use networks to model the project.
3.4.1 Project Scheduling

 On large projects, hundreds of small tasks must occur to accomplish a larger goal.
o Some of these tasks lie outside the mainstream and may be completed without
worry of impacting on the project completion date.
o Other tasks lie on the critical path; if these tasks fall behind schedule, the
completion date of the entire project is put into jeopardy.
 Project manager's objectives :
o Define all project tasks.
o Build an activity network that depicts their interdependencies.
o Identify the tasks that are critical within the activity network.
o Build a timeline depicting the planned and actual progress of each task.
o Track task progress to ensure that delay is recognized "one day at a time".
o To do this, the schedule should allow progress to be monitored and the project to be
controlled.
 Software project scheduling distributes estimated effort across the planned project
duration by allocating the effort to specific tasks.
 During early stages of project planning, a macroscopic schedule is developed
identifying all major process framework activities and the product functions to which
they apply.
 Later, each task is refined into a detailed schedule where specific software tasks are
identified and scheduled.
 Scheduling for projects can be viewed from two different perspectives.
o In the first view, an end-date for release of a computer-based system has already
been established and fixed
o The software organization is constrained to distribute effort within the prescribed
time frame

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o In the second view, assume that rough chronological bounds have been discussed
but that the end-date is set by the software engineering organization
o Effort is distributed to make best use of resources and an end-date is defined after
careful analysis of the software
o The first view is encountered far more often that the second

3.5 Scheduling Techniques

 Simple sequencing
o Suitable for small projects
 Critical Path Method (CPM)
o Suitable for large software projects
o The most commonly used “networking” technique
 Besides the simple sequencing technique, various networking techniques are proposed.
 Other networking techniques are very similar to CPM.
3.5.1 Simple Sequencing

 A simple sequencing of the tasks and the responsible personnel taken into account of
the resources.
 Easily presented in a simple bar chart.
 Suitable for allocating individuals to particular tasks at an early stage.
3.5.2 Critical Path Method (CPM)

 Primary objectives :
o Planning the project so that it can be completed as quickly as possible.
o Identifying those activities where their delays is likely to affect the overall project
completion date
 Developed by Du Pont Chemical Company and published in 1958.
 Capture the activities and their inter-relationships using a graph.
o Lines are used to represent the activities.
o Nodes are used to represent the start and stop of activities.

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 Dummy activities (dotted lines) can be used to :

o Avoid logical errors to paths.
o Document related activities that can be done in parallel and have a time lag
 In CPM, each activity has a time estimate.
 Adding time dimension
o The forward pass
1. calculate the earliest start dates of the activities
2. to calculate the project completion date
o The backward pass
1. calculate the latest start dates for activities
2. identify the critical path from the graph
 Identifying critical path and critical event
o Critical event : an event that has zero slack
o Critical path : a path joining those critical events
 Slack : measures how late an event may be without affecting the overall target date of
the project
o slack = latest start date – earliest start date (for an event)
 Any delay of the critical events will delay the project
 There is always at least one critical path in the CPM network.
Example to construct a CPM

Id. Activity Name Duration (weeks) Precedents

A Hardware selection 7

B Software design 4

C Hardware Installation 6 A

D Coding 4 B

E Data Preparation 5 B

F User Documentation 9

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G User Training 5 E,F

H System Installation 3 C,D

Fig. 3.5.1

Fig. 3.5.2
Activity Float

 Time allowed for an activity to delay

 Three different types :
o Total float (without affecting the completion of the project)
= latest start date – earliest start date
o Free float (without affecting the next activity)
= earliest start date of next activity – latest end date of previous activity
o Interfering float = total float – free float
 Total float can be used up once.
 Free float can be used up separately.

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 However, whenever any float is used, the overall timing of the project is changed.
 The overall timing of a project should includes the activities and the duration of each
activities.
 A recalculation of the CPM is need.
3.5.3 Significance of Critical Path

 During planning stage

o Shortening the critical path will reduce the overall project duration.
 During management stage
o Pay more attention to those activities which fall in the critical path.
 Actually, it is the shortening of the critical activity by putting more resources in it.
 The CPM allows to identify what to shorten? However, it does not tell, how to.

3.6 Network Planning Models

 The project scheduling techniques model the project’s activities and their relationships
as a network.
 In network, the time flows from left to right.
 An activity on arrow approach can be used to visualize the project as a network in
which activities are shown as arrows joining the circles.
 Each node represents either the start or the end of an activity or a set of activities, this
network can also be called as precedence network.
 The techniques were originally developed in the 1950.
 Two best techniques used are,
o CPM – Critical Path Method
o PERT – Program Evaluation Review Technique
 Both of these techniques uses an activity-on-arrow approach.
 The variation on these techniques called precedence networks.
 In activity-on-node networks where activities are represented as nodes and the links
between nodes represent precedence requirements.
3.6.1 Constructing Precedence Networks

 There are some conventions used in the construction of precedence networks.

o Only one start node and one end node must be defined for a project network.
o Every node must have duration.

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o Links do not have duration.

o Subsequent preceding activities are precedents.
o Flow of activities.
o Loop free network.
o Dangle free network.

Fig. 3.6.1 Precedence network

Fig. 3.6.2 Loop representing impossible sequence

Fig. 3.6.3 Activity network representing a dangle

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3.6.2 Network Planning Techniques or Models

 There are Two types of Models which are given below :

 Program Evaluation and Review Technique (PERT) :
o Developed to manage the Polaris missile project.
o Many tasks pushed the boundaries of science and engineering (tasks’ duration =
probabilistic).
 Critical Path Method (CPM) :
o Developed to co-ordinate maintenance projects in the chemical industry.
o A complex undertaking, but individual tasks are routine (tasks’ duration =
deterministic)
Both PERT and CPM :

 Graphically display the precedence relationships and sequence of activities.

 Estimate the project’s duration.
 Identify critical activities that cannot be delayed without delaying the project.
 Estimate the amount of slack associated with non-critical activities.

3.7 Risk and Risk Management Process

3.7.1 Risk

 Risks are potential problems that may affect successful completion of a software
project.
 Risks involve uncertainty and potential losses.
 Risk analysis and management are intended to help a software team understand and
manage uncertainty during the development process.

3.7.2 Risk Strategies

 Reactive strategies
o very common, also known as fire fighting.
o project team sets resources aside to deal with problems.
o team does nothing until a risk becomes a problem.
 Proactive strategies
o risk management begins long before technical work starts, risks are identified and
prioritized by importance.
o team builds a plan to avoid risks if they can or to minimize risks if they turn into

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problems.
3.7.3 Risk Factors Fall into Two Categories

 Generic risks, common to all software projects, then we tray to improve the
organization to overcome this risks or we have a check list.
 Project specific risks.
 This are complementary points of view we must act on both.
Generic Risks : Most Common Software Risks

 Ambiguous improvement targets.

 Creeping users requirements.
 Crowded office conditions.
 Excessive schedule pressure.
 Excessive time to market.
 Inaccurate cost estimating.
 Friction between :
o Client and software contractors.
o Software management and senior executives.
 Inadequate compensation plans.
 Inadequate configuration control and project repositories.
 Inadequate curricula
 Inadequate package acquisition methods.
 Inadequate software policies and standars.
 Inadequate tolls and methods (project management, Quality assurance, software
engineering, technical documentation…).
 Lack of reusable code, data, test, human interfaces.
 Lack of specialization
 Low user satisfaction
 Low productivity.
 High maintenance costs.
 Partial live cycle definitions.
 poor technology investments.
 Silver bullet syndrome.

3.8 Monte Carlo Simulation

To ensure the successful completion of a project, it is of utmost importance for the

project manager to find ways to handle uncertainties that can pose potential risks for a project.
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Risk management is an iterative process. Risks can relate to any aspect of the project – be it
the cost, schedule, or quality. The key to managing risks is to identify them early on in the
project and develop an appropriate risk response plan.

To develop a Risk Response Plan, need to quantify the impact of risks on the project.
This process is known as quantitative risk analysis wherein risks are categorized as high or
low priority risks depending on the quantum of their impact on the project. Monte Carlo
analysis is used for performing quantitative risk analysis.
3.8.1 Monte Carlo Analysis with Example

Monte Carlo analysis involves determining the impact of the identified risks by running
simulations to identify the range of possible outcomes for a number of scenarios. A random
sampling is performed by using uncertain risk variable inputs to generate the range of
outcomes with a confidence measure for each outcome. This is typically done by establishing
a mathematical model and then running simulations using this model to estimate the impact of
project risks. This technique helps in forecasting the likely outcome of an event and thereby
helps in making informed project decisions.
While managing a project, you would have faced numerous situations where you have a
list of potential risks for the project, but you have no clue of their possible impact on the
project. To solve this problem, you can consider the worst-case scenario by summing up the
maximum expected values for all the variables. Similarly, you can calculate the best-case
scenario. You can now use the Monte Carlo analysis and run simulations to generate the most
likely outcome for the event. In most situations, you will come across a bell-shaped normal
distribution pattern for the possible outcomes.
Let take an example. Suppose you are managing a project involving creation of an
eLearning module. The creation of the eLearning module comprises of three tasks: writing
content, creating graphics, and integrating the multimedia elements. Based on prior experience
or other expert knowledge, you determine the best case, most-likely, and worst-case estimates
for each of these activities as given below :
Tasks Best-case estimate Most likely estimate Worst-case estimate
Writing content 4 days 6 days 8 days
Creating graphics 5 days 7 days 9 days
Multimedia integration 2 days 4 days 6 days
Total duration 11 days 17 days 23 days
The Monte Carlo simulation randomly selects the input values for the different tasks to
generate the possible outcomes. Let us assume that the simulation is run 500 times. From the
above table, we can see that the project can be completed anywhere between 11 to 23 days.
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When the Monte Carlo simulation runs are performed, we can analyse the percentage of times
each duration outcome between 11 and 23 is obtained.

What the above table and chart suggest is, for example, that the likelihood of
completing the project in 17 days or less is 33%. Similarly, the likelihood of completing the
project in 19 days or less is 88%, etc. Note the importance of verifying the possibility of
completing the project in 17 days, as this, according to the Most Likely estimates, was the
time you would expect the project to take. Given the above analysis, it looks much more likely
that the project will end up taking anywhere between 19 – 20 days.
3.8.2 Benefits of Using Monte Carlo Analysis

It is very effective as it is based on evaluation of data numerically and there is no

guesswork involved. The key benefits of using the Monte Carlo analysis are listed below :
 It is an easy method for arriving at the likely outcome for an uncertain event and an
associated confidence limit for the outcome. The only pre-requisites are that you should
identify the range limits and the correlation with other variables.
 It is a useful technique for easing decision-making based on numerical data to back
your decision.
 Monte Carlo simulations are typically useful while analyzing cost and schedule. With
the help of the Monte Carlo analysis, you can add the cost and schedule risk event to
your forecasting model with a greater level of confidence.
 You can also use the Monte Carlo analysis to find the likelihood of meeting your
project milestones and intermediate goals.
3.8.3 Monte Carlo Analysis : Steps

The series of steps followed in the Monte Carlo analysis are listed below :
1. Identify the key project risk variables.
2. Identify the range limits for these project variables.
3. Specify probability weights for this range of values.
4. Establish the relationships for the correlated variables.
5. Perform simulation runs based on the identified variables and the correlations.
6. Statistically analyze the results of the simulation run.
Each of the above listed steps of the Monte Carlo simulation is detailed below :
1. Identification of the key project risk variables : A risk variable is a parameter which
is critical to the success of the project and a slight variation in its outcome might have a
negative impact on the project. The project risk variables are typically isolated using the
sensitivity and uncertainty analysis.
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Sensitivity analysis is used for determining the most critical variables in a project. To
identify the most critical variables in the project, all the variables are subjected to a
fixed deviation and the outcome is analysed. The variables that have the greatest impact
on the outcome of the project are isolated as the key project risk variables. However,
sensitivity analysis in itself might give some misleading results as it does not take into
consideration the realistic nature of the projected change on a specific variable.
Therefore it is important to perform uncertainty analysis in conjunction with the
sensitivity analysis.
Uncertainty analysis involves establishing the suitability of a result and it helps in
verifying the fitness or validity of a particular variable. A project variable causing high
impact on the overall project might be insignificant if the probability of its occurrence
is extremely low. Therefore it is important to perform uncertainty analysis.
2. Identification of the range limits for the project variables : This process involves
defining the maximum and minimum values for each identified project risk variable. If
you have historical data available with you, this can be an easier task. You simply need
to organize the available data in the form of a frequency distribution by grouping the
number of occurrences at consecutive value intervals. In situations where you do not
have exhaustive historical data, you need to rely on expert judgement to determine the
most likely values.
3. Specification of probability weights for the established range of values : The next
step involves allocating the probability of occurrence for the project risk variable. To do
so, multi-value probability distributions are deployed. Some commonly used probability
distributions for analyzing risks are normal distribution, uniform distribution, triangular
distribution, and step distribution. The normal, uniform, and triangular distributions are
even distributions and establish the probability symmetrically within the defined range
with varying concentration towards the centre. Various types of commonly used
probability distributions are depicted in the diagrams below :

Fig. 3.8.2

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Fig. 3.8.3
4. Establishing the relationships for the correlated variables : The next step involves
defining the correlation between the project risk variables. Correlation is the
relationship between two or more variables wherein a change in one variable induces a
simultaneous change in the other. In the Monte Carlo simulation, input values for the
project risk variables are randomly selected to execute the simulation runs. Therefore, if
certain risk variable inputs are generated that violate the correlation between the
variables, the output is likely to be off the expected value. It is therefore very important
to establish the correlation between variables and then accordingly apply constraints to
the simulation runs to ensure that the random selection of the inputs does not violate the
defined correlation. This is done by specifying a correlation coefficient that defines the
relationship between two or more variables. When the simulation rounds are performed
by the computer, the specification of a correlation coefficient ensures that the
relationship specified is adhered to without any violations.
5. Performing Simulation Runs : The next step involves performing simulation runs.
This is typically done using a simulation software and ideally 500 – 1000 simulation
runs constitute a good sample size. While executing the simulation runs, random values
of risk variables are selected with the specified probability distribution and correlations.
6. Statistical Analysis of the Simulation Results : Each simulation run represents the
probability of occurrence of a risk event. A cumulative probability distribution of all the
simulation runs is plotted and it can be used to interpret the probability for the result of
the project being above or below a specific value. This cumulative probability
distribution can be used to assess the overall project risk.

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3.9 Resource Allocation

After the activities have been identified using various techniques and tabulated into a
Work-Break-Down the resources need to be allocated to complete the identified tasks. This
process is considered resource allocation.
3.9.1 Who Allocates Resources ?
Project Manager
 Concentrate on resources where there is a possibility that, without planning, they might
not be sufficiently available when required.
 Senior Software Developers are the hardest to find – these need to be very carefully
planned for in advance.
 Developers do not like to wait for work, they prefer to be busy with activities and tasks
that show clear progress.
3.9.2 Result of Resource Allocation
Reflected in many schedules
 Activity Schedule.
 Resource Schedule.
 Cost Schedule.
 Activity : Indicating the planned start and end dates for completion of each activity.
 Resource : Showing dates on which each resource will be required and level of that
requirement.
 Cost : Showing the planned cumulative expenditure incurred by the use of resources
over time.
 Changes to these schedules are very much interrelated and require domain experience
to “get it right”.
3.9.3 Resource Categories
 Labour (Even the project manager).
 Equipment (Coffee Machine?).
 Materials (Consumed items – floppy disks).
 Space (Rooms, Cubicles).

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 Services (Telecomm, Cleaning services).

 Time (The most rigid item of all).
 Money (Secondary resource) : Money is secondary in the sense that it is calculated
from the others.

Note : These are broad categories only.

3.9.4 Resource Organisation

 A program organization chart is essential to allocate staff effectively,
o Develop the hierarchical program organization.
o Identify Roles and Responsibilities.
o Plan for number of staff in each role (at a high level).
o Establish Teams.
3.9.5 Resource Requirement Identification – 1
 For each activity identify,
o Work amount required (in work units)
o Basic skill or experience level required (to even undertake the task)
o Complexity of the task (this will help to determine the experience required)
o Task Category (Unskilled, skilled, leadership, expert, management)
3.9.6 Resource Requirement Identification – 2

 Example.
o Activity : Install Network Hardware for 20 computers.
o Work units : 20.
o Basic Skill : Bachelors Degree in related field.
o Task Complexity: 5.
o Task Category: Skilled (other categories may be Management, Leadership, Expert)
 10 again is on a scale that is project specific.
3.9.7 Resource Scheduling
 After all the required resources have been identified, they need to be scheduled
effectively.

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 The earliest start dates, last start dates will need to be taken into account to schedule
resources efficiently.
 Resources should be balanced throughout the project.
3.9.7.1 Resource Scheduling Issues

 Human resource scheduling issues,

o Planned Leave, Public Holidays.
o Possible sick leave (random, subjective at best and hard to predict).
o General motivation and enthusiasm for the task allocated (If they dislike the task, it
will flow through into the output).
o Work load and stress in project.
o Stress outside work.
3.9.8 Resource Histograms

 Commonly used during planning to indicate possible problem areas,

o People (by category) Vs Week Number
o For each individual – estimated number of tasks (including complexity) over weeks
o This helps in reducing work load some times to help the individual recover from
any heavy load.
 Category Vs Week
3.9.9 External Dependencies

When planning any resources that rely on external factors, these need to be planned
with the associated risks involved.
3.9.10 Parallel, Sequential Tasks

 Tasks run both in parallel and sequentially.

 Depending on the activity network and critical path, resource allocation needs to be
planned effectively.
 Competing tasks need to be prioritised with risk before resource allocation.
3.9.10.1 Prioritisation Techniques

 Total Float Priority

 Ordered List Priority
 There are many others that refine on top of these, but broadly these cover the general
cases well.

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Total Float Priority

 Ordered according to their total float.
 Smallest total float has highest priority.
 Activities are allocated resources in ascending order of total float.
 Changes to plan will require re-calculation.
Ordered List Priority

 Activities that can proceed at the same time are ordered according to a set of simple
criteria.
 Burman’s priority list takes into account activity duration as well as total float:
1. Shortest critical activity. 2. Critical activities.
3. Shortest non-critical activity. 4. Non-critical activity with least float.
5. Non-critical activities.

Note : Other ways of ordering are also possible.

3.9.11 Critical Paths

 Resource scheduling will almost always change the activity network.

 The changes often result in changes to the critical path.
o Delaying an activity due to lack of correct resources will cause that activity to
become critical after it uses up all its slack time.
 These changes are often experienced after the project has started which will require
adapting during the project (this is normally much harder in practice).
3.9.12 Cost of Resources

 All projects concentrate on completion in the shortest time span with minimum
resources (in planning stage).
 However, once the project starts – all un-planned for issues and any risks will cause
some strain on the cost.
3.9.13 Resource Allocation Issues
 Availability
 Criticality
 Risk
 Training
 Team Building

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3.10 Cost Scheduling

 Broad Categories
o Staff.
o Overheads (Office Space, Interest charges, Travel Costs, Insurance and so on).
o Usage charges (for external resources or contractors, leased/rental equipment).
Cost profile

Fig. 3.10.1

 The summary activity has come into use since the development of project management
software. The advantage of summary activities over milestones is that it is not
necessary to set up elaborate logical relationships to make sure that the milestone is
rescheduled when activities in the group represented by the milestone are moved.
 The milestone shows only a single date. This can be the start or finish of a group of
activities, or it can be some major event or commitment date. The summary activity
shows the start and finish for a group of activities. The computer will search through
the group of activities and find the earliest early start date and the latest early finish date
if the project is being scheduled according to the early schedule. If the project is being
scheduled by the late schedule or a combination of the two, the computer will search for
the earliest and the latest scheduled dates in the group of activities.
 On the Gantt chart the milestones will have a duration of zero and are generally shown
as triangles. Summary activities are shown on the Gantt chart as schedule activity bars
and usually have a graphic to distinguish them from the normal scheduled activities. In
Microsoft Project the summary bars have small triangles below the bar at each end of
the bar. The summary activities are created by selecting the activities to be summarized
and clicking on the right arrow on the tool bar above them.
 The work breakdown structure is entered the same way. The WBS will make a
convenient set of summary activities and may be sufficient for your reporting system. If
not, other summary activities may be entered as need

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