ch7_project_mgt_2

First the project schedule network diagram is built

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Unformatted text preview: Chain Method: The resource-constrained critical path is known as the critical chain. First, the project schedule network diagram is built using duration estimates with required dependencies and defined constraints as inputs. The critical path is then calculated. Resource availability is entered and the resource-limited schedule result is determined. The critical chain method adds duration buffers that are non-work schedule activities to manage uncertainty. 40 6.5 Develop Schedule • Resource constrained: Resource constraints 41 6.5 Develop Schedule • Resource leveling: minimize the deviation between actual resource usage and the uniform resource usage. • What-if scenario analysis: performed using the schedule to compute the different scenarios, such as delaying a major component delivery, extending specific engineering durations, or introducing external factors such as a strike. The most common technique is Monte Carlo Analysis. 42 Example Project Schedule • Milestone charts • Bar charts 43 Example Project Schedule • Project schedule network diagrams. 44 6.6 Control Schedule • The process of monitoring the status of the project to update project progress and managing changes to the schedule baseline. • Performance reviews: schedule variance (SV) and schedule performance index (SPI), where – BCWP (___________________________) or earned value (EV) BCWS (budgeted cost of work scheduled) or planned value (PV) – SV = (BCWP – BCWS) or (EV – PV) – SPI = (BCWP / BCWS) or (EV / PV) 45 7 Project Cost Management • Project Cost Management includes the processes involved in estimating, budgeting, and controlling costs so that the project can be completed within the approved budget. • Project Cost Management is primarily concerned with the cost of the resources needed to complete project activities. • The cost management plan may state different level of accuracy, units of measure (e.g. staff hours, staff days, weeks, or lump sum), control threshold, etc. • General management techniques such as return on investment, discounted cash flow, and investment payback analysis may be used. 46 7.1 Estimate Cos...
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