Projmgmt-1/36 DePaul University Project Management I - Balancing The Project Instructor: David A. Lash.

Projmgmt-1/36

DePaul University

Project Management I - Balancing The Project

Instructor: David A. Lash

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Intro To Project Balancing Three most common project constraints

1. Time - Will it get done on time

2. Money - can you afford the project?

3. Resources - Can you get the people equipment or materials you need?

These must be balanced at the Project, Business case, & Enterprise Level.

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3 Levels of Balancing a Project Project - Project managers generally have the authority

to balance the cost, schedule and quality objectives Business case - if cannot achieve the

cost/schedule/quality goals then must re-examine the business case for the project.

– Sponsors 1 would evaluate these goals.– Cost goals linked to profitability of the project. Late

projects may have penalty or miss a market window Enterprise - the project & business case may balance

but the enterprise still has to decide what projects to pursue

– selecting projects based on Business case is business management decision

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Balancing at The Project Level

1. Re-estimate the project

2. Change task assignments (to take adv of schedule float)

3. add people to the project

4. Use internal experts to increase productivity

5. Use external experts to increase productivity

6. Outsource the entire project

7. Crash the schedule

8. Shift project work

9. Work overtime

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Project Lvl -> 1. Re-estimate Project

Might go back to team and relook at schedule Advantage - If can legitimately rework schedule

will shrink timeline Disadvantage - tendency may be to get over

optimistic Recheck your estimates and assumptions.

Make corrections but be careful not to succumb to pressure

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3. add people to the project






9. Work overtime

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Project Lvl -> 2. Change Assignments On Tasks with Float

Look At Critical Path - move resources from the CP to non - critical path items (see pg 192 fig 9.1)

Top figure - task 7 & 8 had 4 BL for 4 d each Task 2 & 3 had 4 Bricklayers for 5 & 4 days Moved 2 BL from task 7 & 8 to 2 & 3 and Reduce task 2 from 5 - 2.5 & T3 from 4 to 2 Increase task 7 from 4 to 8 & T 8 from 4 to 8 Changes CP - task 11 and 12 & task 7 & 8 Length of project reduced by 4 days

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Project Lvl -> 2. Change Assignments On Tasks with Float

3 considerations when using this technique1. Both tasks need same type of people (attorney ->

bricklayer won't help)

2. Non-critical tasks need enough float. Shortening CP items removes some float and probably changes the CP

3. Tasks need to be able to be shortened by adding people. (e.g., adding system analyst might not help as much)

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3. Add people to the project






9. Work overtime

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Project Lvl -> 3. Add People Use more people to increase parallelism or

shorten tasks Issues:

– can effect costs – may not shorten tasks– adding more people may increase coordination

costs – law of diminishing marginal returns– works well with some tasks not work at all for

others.– tasks requiring knowledge workers less helpful to

add people

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9. Work overtime

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Project Lvl -> 4. Add Intrl Experts Experts are high performers. E.g., software pgrmr experts

and develop code 10 x faster– Their use may help with critical tasks

Issues– may be hard to obtain these folks

(may affect other projects) may not want to do your tasks

– when available can put them on CP items to try to shorten or ensure make

schedule more complex or difficult task requiring expertise design decision or quality areas

– regardless may want to build your own experts when you possible

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9. Work overtime

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Project Lvl -> 5. Add Extl Experts

Use external consultants with expertise in areas needed to help reduce schedule:

Issues may include– Vendor risk - being able to judge talent before

you hire. May not be the "expert" you think.– Lost expertise - may not help build your team’s

expertise– best if have establish a relationship with a firm

and know the quality and limitations of their people.

– Cost may be prohibitive

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9. Work overtime

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Project Lvl -> 6. Outsource The Entire Project

Contract for the entire project or large parts of project to be done by outside firm

Issues– attractive when project requires particular skill

not on team (specialization_ away from core skills).

– may help shorten schedule VS building expertise and doing it yourself.

– loose some control (can increase risk)– may have overall detrimental effect on workers

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6. Outsource The Entire Project


8. Shift project work to customer

9. Work overtime

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Project Lvl -> 6 &7. Crash Schedule and Shift to Customer

6. - Crashing The Schedule– Looks to add resources to CP items– Uses a “crash” table to estimate tasks that have the

greatest payback – Example: See figure 9.4 Page 201

7. - Shift Work To Customer

– may provide better value to customer – may help get you resources or schedule you need– may be best with tasks requiring low expertise– may be best in beginning or end of project (for

example, help with final assembling in their location and/or training)

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6. Outsource The Entire Project


8. Shift project work to customer

9. Work overtime

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Project Lvl -> 9. Working OT Can possibily reduce schedule by requiring OT Issues:

– may decrease schedule – May be more productive after hours (maybe

not)– likely will increase costs (overtime can be 1.5

rate)– sustained OT may burn people out– productivity may suffer while your paying more.

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Business Case Strategies Looking at Issues beyond the project

manager & team but effect the cost and schedule of project

– Reduce The Project Scope – Fixed-Phased Scheduling– Fast-Tracking– Phased Product Delivery– Do-it-twice - quickly and correctly– Change the Profit Requirement

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BC Strat - Reduce The Project Scope

Scale down the objectives– reduce the features, functionality and/or performance of the

product or project Issues

– Clearly will save time & money– Value of project will be reduced

Still desirable to customer? Still have the same value?– Problem requires sponsor/customer meeting

Not something done without careful thought Are there particularly expensive requirements that add

little “value”? Lower priority requirements?– Figure 9.5 on page 205 shows WBS with feature that was

eliminated. Would rework schedule based on eliminating the task.

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BC Strat - Fixed Phased Scheduling

Set Dates For Specific Phases – reasons could be - because of market, or too many

software features, – Project dates set for various phases

re-evaulated at the end of each phase Issues

– Clearly not every project lends itself to Fixed phased scheduling

– Must present hard choices to customer/sponsor on trade-offs of fixing dates at certain times

– Quality can remain high as long as still can complete method cycle

Requirements Design Build Operate

DesignBuildTest

Fixed Date

DesignBuildTest

DesignBuildTest

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BC Strat - Fast Tracking

Overlap Tasks Not Traditionally Overlapped – E.g., Begin building construction before design is

complete. (start foundation while still design upstairs.)

Issues– Can decrease project time significantly (40%)– Can be risky with full involvement of stakeholders– Mistakes can get multiplied and be harder to fix– Useful for some software development (e.g.,

overall design, unit design, build, unit design, build, unit design. Build, integration testing)

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BC Strat - Phased Product Delivery

Deliver Some Useful Part By Deadline – E.g., Tenants can move into a floor while rest of building being

complete. Ship version of software without all the features Issues

– Delivers something on time that is useful– Things are delivered incrementally (and therefore evolve versus

big bang)– Feedback incorporated in development– Allows possibility of phased payment (get some money sooner)– Need customer for early releases (may not be interested in

paying for scaled down version).– Need to address seamless upgrade paths. – Not work well with things not lending itself to incremental

approach (e.g., automobiles)

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BC Strat - Phased Product Delivery

Get something quick to machete then make it right

– E.g., build a bridge (pontoon) then replace it with concrete. Build basic capability (e.g., Web site) then replace it with full functionality

Issues– Clearly more expensive– Gets foothold established– Incorporates feedback– Good when time is an issue or requirements not

well known (I.g., need to learn during the process)

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BC Strat - Change Profit Requirement

Reduce profit margin to be competitive – If cannot make cost goals, chance margins

May help you win bid Issues

– May not be enough return on investment to keep company going

– May help struggling firm to grow and eventually take on other projects

– May leverage success on 1 project with others (e.g.,consultants may sell initial work cheap to hopefully gain other work with big client).

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Enterprise Lvl Balancing At enterprise level (of company or organization)

must decide on which projects to go forward on – Given limited resources and priorities

E.g., clearly better to pursue 8 projects and finish them 100% then 10 projects with only 80%

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Enterprise Lvl Balancing - E.g., For Example

– A company may decide to cut resources (say by 15%) on stable, older technology product and funnel them into the new technology product with

higher profit margins attracts new customers enters more growth area

– Company outsources job function to encourage engineers to move towards core business Concentrate on core competencies

Alternatives available to enterprise level are the same as project and resource level

– More an issue of span of control

Projmgmt-1/36 DePaul University Project Management I - Balancing The Project Instructor: David A. Lash.

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