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7 Using Project Management Software

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Learning Objectives

By the end of this chapter, you will be able to:

• Discuss the value of project management software in managing a complex project.

• Utilize project management tools when tracking projects.

• Describe how project management software can be used to document, update, monitor, report on, and close out projects.

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Introduction

Pretest

1. Project management software is used primarily for monitoring a project’s progress and schedule. a. True b. False

2. Whether or not project managers create a task outline during a project’s planning phase depends on which software package they use. a. True b. False

3. Presentations about a project should not necessarily use or display project management software. a. True b. False

Answers can be found at the end of the chapter.

Introduction It used to be that the walls of a project “war room” (a central office space where project teams would gather and work together) were covered with paper charts and notes. The charts would be covered with handwritten network diagrams, notes, and schedules in one form or another. The busy dynamics in the room attested to the urgency of keeping up with the proj- ect’s progress and somehow recording things on scribbled paper charts. This was the typical project information system more than 70 years ago, before the advent of the computer and the development of more sophisticated planning tools. The team had to be in the same place at the same time to communicate and record project information.

Now, of course, people use computers and networks to keep up with complex projects. That is the subject of this chapter—how computer software has enabled fast and accurate exchange and documentation of project information. This chapter also deals with the limitations of software when it comes to building teamwork. In other words, there is no question that proj- ect software can document data and information and enable it to be shared and collectively reviewed through networks. But the more a project team communicates information and con- ducts analysis electronically rather than personally, the greater the risk that the team never really develops personal commitments to each other. When a project manager needs the team to work together, say, in a crisis revolving around a project problem, the manager needs to know that team members can collaborate and are committed to each other.

Now that previous chapters have addressed project planning, scheduling, and tracking, this chapter introduces project management software tools and techniques. The chapter will pro- vide an overview of how project management systems and networking can enhance good project management, especially when a project and its deliverables are complex and involve a high degree of coordination and collaboration.

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Section 7.1 The Value of Project Management Software

Before the availability of computers, handwritten project Gantt and other scheduling charts were typically posted on the wall in the project war room. Changes were made by hand. Now sophisticated project management software provides a fast, user-friendly documentation approach to project planning that uses databases to integrate project scheduling, budgeting, and other management functions.

This chapter is not a tutorial for operating software, but rather a discussion of how and when such software is appropriate. There are some key limitations, and this field carries a risk of using software and networking in an ineffective way. It is important to understand that total reliance on communication and information exchange through digital and electronic net- works can inhibit good team building and performance. This is because most project teams cannot perform at their highest potential without regular meetings, face-to-face communica- tion and problem solving, and team-building activities to confirm commitment to the project.

7.1 The Value of Project Management Software Project management software programs such as Microsoft Project® or Smartsheet provide a digital platform for documenting, planning, and monitoring projects. Operated in a network system or as a personal work aid for a project manager or team member, this kind of software can be useful in many activities.

The software is used to record project tasks and their sequence (the schedule), then track progress by making appropriate changes in the schedule. Each task can be linked to its costs, and the software will total everything to determine the project cost estimate and budget. Soft- ware can also help a project manager define tasks, track task completion, track labor assign- ments, and track labor costs.

Documenting Project Tasks and Schedule

Documenting the project tasks and schedule ensures that the team knows the whole program and how each task contributes to project completion.

Figure 7.1 shows a simple Gantt chart that is used to record the entire project and share it with the team and stakeholders. Note that tasks are entered in the table with durations and start and finish dates. The bar chart will automatically record the durations on a calendar, with linkages shown by connecting lines. Project managers use this chart to list tasks in their sequence and can make changes in the Gantt chart in most any project management software.

When building a more complex project with higher levels of detail, indenting will show sub- tasks and lower levels of work.

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Build a Candidate List

Select Candidate

Define Criteria for Selection

Screen Candidates

Interview Candidates

Reference Checks

Q3Q4Q3Task Name

Q1 Q2 Q4 Q1 Q2 Aug SepJul May JunAprFeb MarJanNov DecOctAug SepJulMay JunAprFeb MarJanNov DecOct

Compile Information

Distribute Information

Conduct Selection Process

Build a Candidate List

Define Criteria for Selection

Screen Candidates

Interview Candidates

Reference Checks

Compile Information

Distribute Information

Conduct Selection Process

Start Date

07/28

09/08

08/19

08/21

04/25

05/16

09/05

06/03

08/18

08/20

04/02

02/09

04/22

05/13

06/03

End Date

Dur- ation

485

249

149

125

176

Prede- cessor

8, 6

Select Candidate

Section 7.1 The Value of Project Management Software

Define Tasks

It is easy to use technology to define tasks so that team members know what is expected of them in their work. Oftentimes, project tasks are complex and should be defined in more detail than is possible in a Gantt chart.

It is important to define each project task in some detail, as in a job description. Project man- agement software or a Microsoft Excel® spreadsheet can be used to do so. Table 7.1 shows an Excel® format for task description. Each project task is defined in consultation with the team member assigned to the task so there are no questions about what the task involves. This kind of task description ensures that tasks are kept within the scope of work and helps avoid work that exceeds the scope of work, which leads to scope creep.

Table 7.1: A format for describing project tasks

Task Description

Record software requirements The task is to define and describe the customer requirements for the deliverable and insert it into a project requirements document. This document would include a description of the deliverable, how it will be tested, and how it should perform in practice to meet customer needs. Technical data on the requirement may be included or referenced in the document. The customer is to sign off on the document when completed.

Figure 7.1: Gantt chart

The project software provides a convenient format for reviewing tasks and task interdependencies, durations, start and finish dates, and a bar chart with a real calendar.

Adapted from Smartsheet.com.

Build a Candidate List

Select Candidate

Define Criteria for Selection

Screen Candidates

Interview Candidates

Reference Checks

Q3Q4Q3Task Name

Q1 Q2 Q4 Q1 Q2 Aug SepJul May JunAprFeb MarJanNov DecOctAug SepJulMay JunAprFeb MarJanNov DecOct

Compile Information

Distribute Information

Conduct Selection Process

Build a Candidate List

Define Criteria for Selection

Screen Candidates

Interview Candidates

Reference Checks

Compile Information

Distribute Information

Conduct Selection Process

Start Date

07/28

09/08

08/19

08/21

04/25

05/16

09/05

06/03

08/18

08/20

04/02

02/09

04/22

05/13

06/03

End Date

Dur- ation

485

249

149

125

176

Prede- cessor

8, 6

Select Candidate

bar81677_07_c07_199-232.indd 202 9/9/14 10:56 AM

i Task Name% Complete FinishStartDuration

266

598

266

International Partnering and Organizational Coordination

Integrated Transportation System

Develop Strategic Objectives

Prepare Organization for Integration

Integration Gateway 4: Global Team Composition

Integration Gateway 5: Support Systems Assets

Integration Gateway 6: Portfolio Development

Portfolio Development

Integration Gateway 2: Business Planning

Integration Gateway 1: Global Interface

Integration Gateway 3: Organizational Development

Prepare for Internal Control

Develop Team and Select Program Analyst

Review All Supporting Organization Assets

Business Strategy

Project Selection Criteria

Assigned To

06/24

07/01

07/17

07/30

08/14

08/20

08/28

07/01

06/24

07/17

07/29

07/30

08/14

08/20

09/03

06/30

10/06

07/16

07/28

08/14

08/19

09/08

09/02

07/16

06/30

07/29

08/14

08/19

09/27

09/08

John Shelter, CEO

Section 7.1 The Value of Project Management Software

Track Task Completion

Software can be used to track completion of project tasks by entering the percent complete. The result is shown in Figure 7.2. Note that the percent complete for each task is shown along with the assigned task member. The project manager collects the information on percent complete from each team member. Task members can enter the percent complete themselves if the software is on a network that enables this. This form would be shared with team mem- bers so they see progress and raise questions about task completion.

Track Labor Assignments

It is also possible to enter and show assignments for each team member and the number of hours he or she is assigned to a particular task. Figure 7.3 shows that in this project, team members are assigned multiple tasks. The software enables the project manager to track mul- tiple assignments to make sure team members have reasonable workloads.

Figure 7.2: Tracking Gantt

The tracking Gantt shows percent complete so the project manager and team know where each task is, based on reports directly from each task leader.

Adapted from Smartsheet.com.

i Task Name% Complete FinishStartDuration

266

598

266

International Partnering and Organizational Coordination

Integrated Transportation System

Develop Strategic Objectives

Prepare Organization for Integration

Integration Gateway 4: Global Team Composition

Integration Gateway 5: Support Systems Assets

Integration Gateway 6: Portfolio Development

Portfolio Development

Integration Gateway 2: Business Planning

Integration Gateway 1: Global Interface

Integration Gateway 3: Organizational Development

Prepare for Internal Control

Develop Team and Select Program Analyst

Review All Supporting Organization Assets

Business Strategy

Project Selection Criteria

Assigned To

06/24

07/01

07/17

07/30

08/14

08/20

08/28

07/01

06/24

07/17

07/29

07/30

08/14

08/20

09/03

06/30

10/06

07/16

07/28

08/14

08/19

09/08

09/02

07/16

06/30

07/29

08/14

08/19

09/27

09/08

John Shelter, CEO

bar81677_07_c07_199-232.indd 203 9/9/14 10:56 AM

Optics Scott Allen

DetailInitialsID Resource Namei March April

2/11 2/18 2/25 3/4 3/11 3/18 3/25 4/1 40h 40h

40h 40h

SA SA

Work Work

Assembly SA Work Review SA Work Get approval SA Work System design SA Work Outline SA Work Draft SA Work Housing SA Work Prototype SA Work Test SA Work Analyze SA Work Retest SA Work Component checks SA Work System SA Work Review SA Work Final test SA Work

Bridgitte Santiago BS Work Chassis design BS Work Drawings BS Work Initial draft BS Work Component checks BS Work Graphics BS Work Digital system BS Work Distribute BS Work Gather comments BS Work Final test BS Work

Dennis Hsu DH Work13 !

32h

40h

32h

40h 40h 40h 40h 40h 40h 40h 40h

32h 40h 40h 40h

16h 4h 16h 4h

32h 8h 16h

8h 24h

0h 0h

16h

Section 7.1 The Value of Project Management Software

Track Labor Costs

Project labor costs can be recorded and tracked using software as well. As shown in Table 7.2, this format allows the computer to calculate total costs based on hours and standard wage rates. Changes in inputs, such as hours and rates, can be updated at any time.

Table 7.2: Sample of recording and tracking labor costs

Task leader Task Hours Standard rate Total cost

Smith Write scope 60 $70/hr $4,200

Jones Distribute scope 20 50/hr $1,000

Welter Make revisions 20 0/hr $800

Bratten Update scope 10 40/hr $400

Figure 7.3: Resource sheet

This resource sheet shows that each team member is handling more than one task in a given week, a typical situation in a project-driven company.

Adapted from Smartsheet.com.

Optics Scott Allen

DetailInitialsID Resource Namei March April

2/11 2/18 2/25 3/4 3/11 3/18 3/25 4/1 40h 40h

40h 40h

SA SA

Work Work

Dennis Hsu DH Work13 !

32h

40h

32h

40h 40h 40h 40h 40h 40h 40h 40h

32h 40h 40h 40h

16h 4h 16h 4h

32h 8h 16h

8h 24h

0h 0h

16h

continued

bar81677_07_c07_199-232.indd 204 9/9/14 10:56 AM

Section 7.1 The Value of Project Management Software

Task leader Task Hours Standard rate Total cost

Brown Track scope 40 10/hr $400

White Show final scope 50 60/hr $3,000

Total $9,800

You can see that project management software can help document assignments and track proj- ect performance in terms of schedule and cost as well as percent complete. Although there are other benefits of software, these are the core functions that allow project managers to build a shared view of the project and monitor projects, and take corrective actions if necessary.

Other Benefits of Software

Software can provide a common language and documentation source for all team members and stakeholders to access at any time. This is important because in complex projects, such as those with more than 100 contributors and related tasks, there must be a common language and source for planning, tracking, and communicating.

If each team member uses a different way to define tasks and schedule work, or if various participants work with different versions of the project scope or charter, then communication between them on project status will be ineffective. If this is the case, team members are not likely to work closely together on interdependent tasks and work activities. It is possible that they could undermine the project simply by working with different project assumptions, task definitions, deliverables, or processes.

Software aids with defining and outlining a project, including requirements, work breakdown structure, scope of work, schedule and key milestones, and charter. It helps document and organize the initiation and planning processes by enabling a system of defining, updating, and revising the project, its work dimensions, and interdependencies with the project team and stakeholders. This helps build a project baseline, a final starting point to kick off the project, and serves as a reference point to determine project status.

Additionally, software helps with documenting and assigning required resources. It allows project managers to assign resources to tasks in order to build a cost estimate that is directly connected to the work planned.

Software also plays an important role in risk management, and allows risks to be recorded in various ways. Tasks with high risks can be analyzed in terms of alternative durations based on risk events and contingencies.

Another role software plays in project management is to track and monitor progress against a baseline. It enables the project team to track progress against a common plan and schedule. It also helps with reporting and communicating progress and other types of information and schedules that have project sponsors, stakeholders, and customers. Through network capa- bilities, stakeholders, customers, and sponsors can be linked into a regular reporting system.

Table 7.2: Sample of recording and tracking labor costs (continued)

bar81677_07_c07_199-232.indd 205 9/9/14 10:56 AM

Section 7.1 The Value of Project Management Software

Software is responsible for integrating project management with broader strategic planning and information. It is important that the team be able to access strategic information from compatible enterprise-wide business systems to confirm that a given project is integrated with broader company or agency plans. For instance, if the strategic plan for a company or agency identifies a major threat to the success of the company itself, such as an unexpected change in the competitor’s capacity to produce a targeted product, all team members must be able to access this information.

Finally, since software captures and documents a project from beginning to end, it allows the project to be easily closed out.

The Links Corporation Private Sector Case Study

Remember that the Links Corporation leadership is trying to introduce project management systems to its company, which has a strong production and manufacturing culture.

The CEO, Phillip Johnson, vice president for operations, Ben Roberts, and HR VP, Sheila Chen, are meeting to discuss the issue of how companies decide to invest in project management software and what questions are typically raised in making the decision.

Johnson begins the meeting by stating that if they want to move to a project management culture, they must procure a project management software system that works well and can be integrated into their current systems. He wants to know Roberts’s and Chen’s ideas on packages, as well as costs and compatibility.

Roberts would like to use Microsoft Project Professional 2013® despite its higher price. Many of their projects will be complex, and the software must be integrated into current systems—such as their product configuration system, manufacturing scheduling system, and their new enterprise business system—so Microsoft Project® is a good fit.

Chen has been looking into training and development for this software for their workforce. If they bring on contractor trainers, it will cost a lot for their value, so she proposes that they “train the trainer” inside the company, and develop their own trainers. Training the trainer builds the competence of inside employees to train others so the organization is not totally dependent on outside training support.

Questions for Discussion

1. There seems to be some concern about whether expensive project management software would be worth it. Executives are trying to determine whether it is a good investment and what the training costs will be. How would you advise this company on its investment in project management software, and what kinds of questions and issues would you have them address?

2. Do you agree with the suggestion that the company rely on a train-the-trainer approach to training its staff on the use of project management software? Please explain your reasoning.

bar81677_07_c07_199-232.indd 206 9/9/14 10:56 AM

Section 7.2 Project Management Tools

7.2 Project Management Tools This section will discuss each basic project management tool that is generally available in most project management software. Remember that this section is not intended as a tutorial on project management, but rather a discussion of applications. Further hands-on training on this kind of software is advised.

Project management software helps document project plans, schedules, budgets, task interdependencies, resource allocations and costs, and other important information. The final schedules, budgets, and resources are entered into the software and saved as the baseline for the project. As the project is executed, actual performance is entered and com- pared with the baseline to see if there are major variances. If so, the variances are analyzed to identify root causes and corrective actions. Without project management software, the project manager and team could not effectively document and integrate project data as quickly or accurately.

The WBS and Gantt Chart

To address how the work breakdown and Gantt chart are used, we will use three examples: project 1 to plan a vacation, project 2 to hire a new executive, and project 3 to prepare a proj- ect management plan.

Project 1: Planning a Vacation Consider how project management software can help plan a vacation.

1. Tasks. Five tasks are involved: time (when the vacation will be taken), costs (what it will cost), baggage (what you will bring), purchases, and actually completing the vacation. The task list for this project is:

• Plan time. • Plan costs. • Plan baggage. • Make purchases. • Complete vacation.

2. Work breakdown (shown in Figure 7.4). 3. Schedule.

bar81677_07_c07_199-232.indd 207 9/9/14 10:56 AM

Plan costsPlan time Plan

baggage Make

purchases Complete vacation

Vacation project

Vacation Project

Plan time

Plan costs

Plan baggage

Make purchases

Complete vacation

07/01

07/03

07/05

07/07

07/20

07/29

07/02

07/04

07/06

07/08

07/29

Task Name Duration Start Finish Jul

Jun 29 Jul 6 Jul 13 Jul 20 Jul 27

Section 7.2 Project Management Tools

Now we prepare a Gantt chart to record the project schedule and show the bar chart, as shown in Figure 7.5.

The Gantt chart in Figure 7.5 shows that the first task—plan time—starts on 7/1 and is fol- lowed in sequence by all other tasks. Note the bar chart shows the tasks on a calendar with linkages to previous and next tasks in sequence. Note that there is work planned on July 4, a holiday. The software can be adjusted to skip holidays in scheduling tasks, depending on company policy.

Then we track the project by entering actual times each task begins and finishes, and the soft- ware will calculate percent complete and remaining work.

Project 2: Hiring a New Executive Consider a second example—how project management software can help hire a person for a vacant executive position. The final Gantt chart for this project is produced in Smartsheet.

Figure 7.5: Gantt chart for vacation project

The vacation project has tasks assigned during the Fourth of July holiday. Settings in the project management software program can be adjusted to automatically recognize and schedule around holidays.

Adapted from Smartsheet.com.

Vacation Project

Plan time

Plan costs

Plan baggage

Make purchases

Complete vacation

07/01

07/03

07/05

07/07

07/20

07/29

07/02

07/04

07/06

07/08

07/29

Task Name Duration Start Finish Jul

Jun 29 Jul 6 Jul 13 Jul 20 Jul 27

Figure 7.4: WBS for planning a vacation

This WBS breaks down the steps in planning a vacation.

Plan costsPlan time Plan

baggage Make

purchases Complete vacation

Vacation project

bar81677_07_c07_199-232.indd 208 9/9/14 10:56 AM

Define criteria

Build candidate

list

Screen candidates

References Distribute

information Compile

information Interviews Selection

Personnel hiring project

Section 7.2 Project Management Tools

1. Tasks. Eight tasks are involved: build the list of candidates, define criteria for their selection, screen the candidate list, conduct interviews, check references, compile candidate information, distribute candidate information to the selection committee, and make the selection. The task list for the project is:

• Build candidate list. • Define criteria. • Screen candidates. • Interviews. • References. • Compile information. • Distribute Information. • Selection.

2. Work breakdown (shown in Figure 7.6). 3. Schedule.

Now we prepare a schedule. Table 7.3 shows tasks, durations, and start and finish dates.

Table 7.3: Tasks, durations, and start and finish dates for personnel hiring project

Task Duration (days) Start Finish

Build candidate list 30 7/28 9/5

Define criteria 15 7/28 8/15

Screen candidates 250 9/8 8/21

Interview candidates 150 9/8 4/3

Figure 7.6: WBS for personnel hiring project

This WBS breaks down the steps in a personnel hiring project.

Define criteria

Build candidate

list

Screen candidates

References Distribute

information Compile

information Interviews Selection

Personnel hiring project

continued

bar81677_07_c07_199-232.indd 209 9/9/14 10:56 AM

Build a Candidate List

Select Candidate

Define Criteria for Selection

Screen Candidates

Interview Candidates

Reference Checks

Q3Q4Q3 Task Name

Q1 Q2 Q4 Q1 Q2 Aug SepJul May JunAprFeb MarJanNov DecOctAug SepJulMay JunAprFeb MarJanNov DecOct

Compile Information

Distribute Information

Conduct Selection Process

Build a Candidate List

Define Criteria for Selection

Screen Candidates

Interview Candidates

Reference Checks

Compile Information

Distribute Information

Conduct Selection Process

Start Date

07/28

09/08

08/18

08/24

04/25

05/16

09/05

06/03

08/15

08/21

04/03

02/06

04/22

05/13

06/03

End Date

Duration

485

250

150

125

175

Select Candidate

Section 7.2 Project Management Tools

Task Duration (days) Start Finish

Reference checks 125 8/18 2/6

Compile information 175 8/24 4/22

Distribute information 15 4/25 5/13

Conduct selection 15 5/16 6/3

In this example, the project information was entered into a project management program and the software produced a bar chart from the information entered. The Gantt chart shown in Figure 7.7 is the basic format to illustrate tasks and related information on schedules. The chart shows a table of tasks in the WBS on the left and includes project tasks, durations, and start and end dates; a bar chart on the right presents tasks against calendar dates. This chart and associated tables are the key starting points for data entry and are used as planning and tracking tools.

Figure 7.7: Basic Gantt chart for personnel hiring project

The Gantt chart, and especially the bar chart, shows that three tasks—screen candidates, interview candidates, and doing reference checks—are taking place simultaneously. In such situations it is important that employees are not assigned to all three tasks full time, lest they become overloaded.

Adapted from Smartsheet.com.

Build a Candidate List

Select Candidate

Define Criteria for Selection

Screen Candidates

Interview Candidates

Reference Checks

Q3Q4Q3 Task Name

Q1 Q2 Q4 Q1 Q2 Aug SepJul May JunAprFeb MarJanNov DecOctAug SepJulMay JunAprFeb MarJanNov DecOct

Compile Information

Distribute Information

Conduct Selection Process

Build a Candidate List

Define Criteria for Selection

Screen Candidates

Interview Candidates

Reference Checks

Compile Information

Distribute Information

Conduct Selection Process

Start Date

07/28

09/08

08/18

08/24

04/25

05/16

09/05

06/03

08/15

08/21

04/03

02/06

04/22

05/13

06/03

End Date

Duration

485

250

150

125

175

Select Candidate

Table 7.3: Tasks, durations, and start and finish dates for personnel hiring project (continued)

bar81677_07_c07_199-232.indd 210 9/9/14 10:56 AM

i Task Name% Complete FinishStartDuration

Generic Work Breakdown Structure

Develop Project Management Plan

Cost Management Plan

Process Management Plan

Communication Management Plan

Procurement Management Plan

Resource Calendar

Cost Baseline

Schedule Management Plan

Project Scope Management Plan

Quality Management Plan

Staffing Management Plan

Risk Management Plan

Milestone List

Schedule Baseline

Quality Baseline

Predecessors

11/25

11/23

12/01

12/07

12/11

12/17

12/23

12/29

11/27

11/23

12/03

12/09

12/15

12/21

12/25

12/26

11/26

01/06

12/02

12/08

12/14

12/18

12/24

12/30

11/30

11/24

12/04

12/10

12/16

12/22

12/28

Section 7.2 Project Management Tools

The Gantt chart is the key tool for defining the sequence and interdependencies of tasks. In Figure 7.7 note that the Screen Candidates task cannot begin until the Build Candidate List task is completed. Of course in the real world of projects, it is quite possible that task 4 might begin before task 2 is fully completed, especially if task 2 produces a preliminary candidate list to begin screening before the final list is completed. This is how task durations can be reduced. When team members see opportunities like this to work in parallel, they can some- times save substantial time and cost.

Project 3: Preparing a Project Management Plan This case addresses the process of preparing a project management plan. Figure 7.8 illus- trates the task list, durations, start and finish dates, and predecessors involved. Note the sequence of tasks in which each task simply follows the previous one.

Tasks in this entry table are entered here—beginning with a high-level task, develop project management—and moving to more detailed tasks down to the second level. This process is called project decomposition, which is defining work in more and more detail and showing how the work rolls up to a completed milestone at the next highest level. Resources could be entered for each task so that task durations can reflect the number of resources applied to it.

There are a wide variety of software packages available that can be selected as per a given project’s complexity. The point is that the entire concept of project management is grounded in the idea of defining tasks in a plan and then tracking the actual work required

Figure 7.8: Gantt chart for a project management plan

The figure shows the task list, durations, and start and finish dates for the development of a project management plan. The figure also shows predecessors; e.g., tasks that immediately precede the task and must be completed before the task can begin.

Adapted from Smartsheet.com.

i Task Name% Complete FinishStartDuration

Generic Work Breakdown Structure

Develop Project Management Plan

Cost Management Plan

Process Management Plan

Communication Management Plan

Procurement Management Plan

Resource Calendar

Cost Baseline

Schedule Management Plan

Project Scope Management Plan

Quality Management Plan

Staffing Management Plan

Risk Management Plan

Milestone List

Schedule Baseline

Quality Baseline

Predecessors

11/25

11/23

12/01

12/07

12/11

12/17

12/23

12/29

11/27

11/23

12/03

12/09

12/15

12/21

12/25

12/26

11/26

01/06

12/02

12/08

12/14

12/18

12/24

12/30

11/30

11/24

12/04

12/10

12/16

12/22

12/28

bar81677_07_c07_199-232.indd 211 9/9/14 10:56 AM

Material LabelTypeTaskID Resource Namei Initials Group Max. Units Std. Rate Ovt. Rate

ME Test Eng

Robert Shabestari

Janet Woo

Jermaine Woods

Daryl Weinberg

Ryan Brown

Patricia Maglunob

Noelle Gupta Benjamin Garrett

Charlotte Pierre

Matt Stephenson

Denise Lopez

Bridgitte Santiago

Bart Werrel

Bette Schwartz

Work Work Work Work Work Work Work Work Work Work Work Work Work Work Work Work

T M R J J D R P N B C M D B B B

100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

$70.00/hr $70.00/hr $70.00/hr $70.00/hr $70.00/hr $70.00/hr $70.00/hr $70.00/hr $70.00/hr $70.00/hr $70.00/hr $70.00/hr $70.00/hr $70.00/hr $70.00/hr $70.00/hr

$0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr

Section 7.2 Project Management Tools

to complete the project deliverables. As a starting point, the task outline and sequence is a must. In practice, task leaders can find ways to speed up project work. For instance, it is possible that although the Cost Management Plan task, ID 36, cannot ideally start before the completion of Schedule Management Plan task, ID 35, there will be some overlap in practice since costs are calculated from preliminary information coming from the scheduling task before it is fully complete.

Project Resource Sheet

Remember that the definition of work in project management is “Work = duration × resources.” If a task is judged to take 5 days with 2 people assigned, the work is defined as a 10-person day. Theoretically, a 10-person day task can be completed in 2 days with 5 people, or in 10 days with 1 person assigned. This does not always work, because it cannot be assumed that various numbers of team members will do the same job, regardless of the composition of the team, but this is the basic assumption in defining work initially.

The project resource sheet allows entry of task, resource names, type of resource (human resource or equipment), material label (a label is a reference number or letter for a particular material, such as the letter P for paper supplies), initials (abbreviated indicator), group (department), max units (full time or part time), standard rate (hourly rate plus overhead and administrative costs), and overtime rate. Project managers or team members can enter data on standard rates for personnel, including overtime. As these rates are entered, the software calculates costs against the durations and work assignments and thus keeps a running account of estimated costs. Figure 7.9 shows a standard project resource sheet.

Figure 7.9: Project resource sheet

Note that the resource sheet can show positions without actual names—such as ID 1, Test Engineer—if the actual person assigned to the job has not yet been named; or it can show actual names if it is clear who will be assigned.

Adapted from Smartsheet.com.

Material LabelTypeTaskID Resource Namei Initials Group Max. Units Std. Rate Ovt. Rate

ME Test Eng

Robert Shabestari

Janet Woo

Jermaine Woods

Daryl Weinberg

Ryan Brown

Patricia Maglunob

Noelle Gupta Benjamin Garrett

Charlotte Pierre

Matt Stephenson

Denise Lopez

Bridgitte Santiago

Bart Werrel

Bette Schwartz

Work Work Work Work Work Work Work Work Work Work Work Work Work Work Work Work

T M R J J D R P N B C M D B B B

100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

$70.00/hr $70.00/hr $70.00/hr $70.00/hr $70.00/hr $70.00/hr $70.00/hr $70.00/hr $70.00/hr $70.00/hr $70.00/hr $70.00/hr $70.00/hr $70.00/hr $70.00/hr $70.00/hr

$0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr $0.00/hr

bar81677_07_c07_199-232.indd 212 9/9/14 10:56 AM

Fixed Cost Fixed Cost AccrualID

$0.00

$50,000.00

$75,500.00

$0.00

$4,200.00

$22,400.00

$4,900.00

$8,400.00

$127,740.00

$560.00

$0.00

$2,100.00

$2,800.00

$822,860.00

$50,560.00

$76,060.00

$295,840.00

Total Cost

$4,200.00

$22,400.00

$4,900.00

$8,400.00

$3,360.00

$1,120.00

$560.00

$0.00

$2,100.00

$2,800.00

$737,240.00

$560.00

$1,120.00

$191,520.00

Baseline

$0.00

$124,380.00

($560.00)

$0.00

$85,620.00

$50,000.00

$74,940.00

$104,320.00

Variance

$0.00

Actual

$4,200.00

$22,400.00

$4,900.00

$8,400.00

$127,740.00

$560.00

$0.00

$2,100.00

$2,800.00

$822,860.00

$50,560.00

$76,060.00

$295,840.00

Remaining

Prorated

Section 7.2 Project Management Tools

Note that the resource Noelle Gupta is in red. This indicates that Noelle Gupta is overcommit- ted because she is assigned 100% to this task but is also assigned to other tasks during the same period covered in this table. This is a “red flag” that requires attention, since it is typical for some staff members—like Gupta in this case—to be assigned to more work than a normal 8-hour day simply because they have demonstrated their capacity to get the job done and take on more.

Project Cost Table

A project cost table shows the costs calculated from resources assigned to the project. Figure 7.10 shows fixed costs (costs that do not change, such as a building rental), total costs (fixed costs plus all other costs, including labor), baseline cost (the original budget), variance (the difference between the actual cost and the original budgeted cost), and the remaining costs.

Project management software generally considers fixed costs (one-time costs) to include items such as building or fleet rental. The project cost table in Figure 7.10, for instance, shows fixed costs for task #76 at $50,000.

Some of the costs are in red, indicating that these costs were added after the original cost estimate was determined, requiring another baseline schedule and budget to be prepared.

Figure 7.10: Project cost table

The project cost table shows total costs for each task. Total costs include fixed costs plus other costs such as labor.

Adapted from Smartsheet.com.

Fixed Cost Fixed Cost AccrualID

$0.00

$50,000.00

$75,500.00

$0.00

$4,200.00

$22,400.00

$4,900.00

$8,400.00

$127,740.00

$560.00

$0.00

$2,100.00

$2,800.00

$822,860.00

$50,560.00

$76,060.00

$295,840.00

Total Cost

$4,200.00

$22,400.00

$4,900.00

$8,400.00

$3,360.00

$1,120.00

$560.00

$0.00

$2,100.00

$2,800.00

$737,240.00

$560.00

$1,120.00

$191,520.00

Baseline

$0.00

$124,380.00

($560.00)

$0.00

$85,620.00

$50,000.00

$74,940.00

$104,320.00

Variance

$0.00

Actual

$4,200.00

$22,400.00

$4,900.00

$8,400.00

$127,740.00

$560.00

$0.00

$2,100.00

$2,800.00

$822,860.00

$50,560.00

$76,060.00

$295,840.00

Remaining

Prorated

bar81677_07_c07_199-232.indd 213 9/9/14 10:56 AM

Section 7.2 Project Management Tools

It is important to see how this cost table shows two fixed costs, associated with tasks 76 and 78, prorated across the period of their use. Proration is an accounting tool used to charge a fixed cost across a project’s time period instead of taking a one-time charge that could skew the analysis.

The accrual column shows whether the costs are prorated across the task duration or charged just once. Note that total cost on these two items is not exactly equal to their fixed costs, because the actual price of the resource was different from the estimated price. The baseline shows only that part of the fixed costs for the two items ($560 for task 76, and $1,120 for task 78) that are prorated to the period under review.

Project managers should be cautious in the use of this tool because it makes assumptions that may not work out in actual practice. For instance, it assumes that the estimated work definition in the baseline is correct and the only issue is how to stay with the original baseline. While this is a logical assumption, in practice the original work and resource definitions are almost always incorrect based on real experience in the project.

Therefore, it often makes more sense to look forward to the remaining work when in a phase-gate review, and to do another estimate of costs based on experience to date rather than trying to stay with the original baseline. While project management software will tend to direct users to the baseline instead of looking forward based on what has been learned to date, it does allow for the baseline to be changed as many times as needed.

Risk-Based Scheduling and the PERT View

Project management software enables the project manager and team members to apply risk information to the scheduling process to provide alternative scenarios for task completion when there is major uncertainty. Risk-based scheduling and the PERT view can present three different durations for a task based on risk: expected (what is actually expected), opti- mistic (assumes no risk event), and pessimistic (worst case, risk occurs with major impacts requiring prevention or mitigation). It is especially useful when there are major risks and uncertainties associated with a given task.

The PERT chart allows estimations of task durations for each alternative and the ability to place weights on each based on probabilities. The software then calculates a new duration for each alternative. In Figure 7.11, note that the duration for the Key Processes task has been calculated based on a PERT analysis, resulting in a quantitative estimate of duration of 11.5 days, which has rolled up to change the next highest task duration, Six Sigma Supplier task, to 86.81 days.

bar81677_07_c07_199-232.indd 214 9/9/14 10:56 AM

i %

Complete Task NameID

0% 0%

Duration

Wed 6/4/08

Start Finish Resource

Group Apr

155

153

157

159

161

163

167

156

154

158

160

162

164

168

2 wks

10.8 wks

2 days

10 days

3 days

86.81 days

3 days

1 day

14 days

3 days

5 days

11.5 days

3 days

8 wks 3 wks

Wed 6/4/08 Wed 6/4/08

Tue 6/17/08

Mon 8/18/08

Thu 6/5/08

Fri 6/27/08

Tue 6/10/08

Thu 10/2/08

Fri 6/6/08

Wed 6/4/08

Mon 6/23/08

Fri 6/6/08

Tue 6/10/08

Thu 6/19/08

Fri 6/6/08

Thu 10/2/08 Tue 6/24/08

71 71

165 166

Seating

Safety

Controls

Trunk

Tires

Six Sigma Supplier Management

Process Performance Indicators

Visibility

Security

Dashboard

Hood

Capacity

Key Processes

Process Improvement Strategy Measures Data Collection

Predecessors

Section 7.2 Project Management Tools

Tracking Gantt and Tracking Table

In order to track project progress, the tracking Gantt and tracking table presents the results of entering actual work and costs during project execution. Here the project man- ager can enter percent completed on any task, actual hours worked, and costs incurred during a given period of the project. (If the software is integrated with a time sheet system, actual hours worked can be automatically entered to provide actual costs.) Figure 7.12 shows percent completion, actual and remaining duration, actual cost, and actual work performed.

Again, project managers must be careful in using this tool because the logic inherent in its use may not be realistic, since it does not reflect the quality of the work completed, just the fact that work hours have been reported on the task.

Figure 7.11: Risk-based scheduling: The PERT chart view

The result of a PERT analysis can usually be seen in some task durations, such as task ID 164, Key processes, since the duration for the target task—in this case 11.5 days—is usually in fractions, the result of a calculation made in the PERT analysis.

Adapted from Smartsheet.com.

i %

Complete Task NameID

0% 0%

Duration

Wed 6/4/08

Start Finish Resource

Group Apr

155

153

157

159

161

163

167

156

154

158

160

162

164

168

2 wks

10.8 wks

2 days

10 days

3 days

86.81 days

3 days

1 day

14 days

3 days

5 days

11.5 days

3 days

8 wks 3 wks

Wed 6/4/08 Wed 6/4/08

Tue 6/17/08

Mon 8/18/08

Thu 6/5/08

Fri 6/27/08

Tue 6/10/08

Thu 10/2/08

Fri 6/6/08

Wed 6/4/08

Mon 6/23/08

Fri 6/6/08

Tue 6/10/08

Thu 6/19/08

Fri 6/6/08

Thu 10/2/08 Tue 6/24/08

71 71

165 166

Seating

Safety

Controls

Trunk

Tires

Six Sigma Supplier Management

Process Performance Indicators

Visibility

Security

Dashboard

Hood

Capacity

Key Processes

Process Improvement Strategy Measures Data Collection

Predecessors

bar81677_07_c07_199-232.indd 215 9/9/14 10:56 AM

Act. FinishAct. StartID Task Name % Comp. Act. Dur. Rem. Dur. Act. Cost Act. Work

Select Architect Critical: No

Recruit and Train Managers

Create Production Design

Building Concept

Permits and Approvals

Plant Personnel Recruiting

Equipment Procurement

Raw Material Procurement

Product Distribution Plan

Landscaping

Truck Fleet Procurement

Sales/Revenues

Critical: Yes Select Real Estate Consultant

Thu 4/17/97 Thu 4/17/97 Thu 4/17/97 Thu 6/17/97 Thu 5/1/97 Thu 8/5/97

NA NA

Tue 7/15/97 NA NA NA

Mon 6/2/97 Thu 4/17/97

Tue 7/1/97

17% 2%

100% 100% 100% 12% 0% 0%

80% 0% 0% 0% 5%

39% 89%

9.72 wks 0.77 wks

10.28 wks 4 wks 2 wks

0.36 wks 0 wks 0 wks

6.44 wks 0 wks 0 wks 0 wks 2 wks

510 wks 1.79 wks

47.48 wks 38.63 wks

0 wks 0 wks 0 wks

2.64 wks 8 wks

24 wks 1.56 wks

2 wks 3 wks 8 wks

36 wks 36.11 wks

0.21 wks

($95,936.00) $1,040.00 $5,872.00 $3,528.00 $4,312.00 $1,680.00

$0.00 $0.00

$2,632.00 $0.00 $0.00 $0.00

$76,872.00 .$228,488.03

$1,824.00

849 hrs 49 hrs

312 hrs 164 hrs 88 hrs 24 hrs 0 hrs 0 hrs

132 hrs 0 hrs 0 hrs 0 hrs

80 hrs 707.92 hrs

68 hrs

NA NA

Fri 6/27/97 Mon 7/14/97 Wed 5/14/97

NA NA NA NA NA NA NA NA NA NA

Section 7.2 Project Management Tools

Tracking Gantt and Earned Value Table

Project managers use a tool called tracking Gantt and earned value table to determine whether a project is on schedule and on budget. Remember that the tracking Gantt chart provides information on what percentage of the work is completed and calculates earned value—the difference between the actual and planned schedule and cost. Earned value measures schedule variance and cost variance using dollar amounts. If the actual cost of the work completed to date is different from the budgeted cost for the work that is scheduled to be completed to date, there is cost variance. In other words, it is the differ- ence between the baseline schedule and where the project is at the review point, looking at costs. If the project is spending at the rate planned in the baseline, there is no schedule variance.

To measure whether the project is on budget, the cost of the work completed to date is com- pared to the budgeted cost of the work scheduled to that date, with cost variation both plus or minus, depending on the data. If actual cost is different from the cost originally budgeted for the work completed at the review point, there is plus or negative variation.

In Figure 7.13 note that the budgeted cost of work scheduled (BCWS) for the Configuration task #115 is $2,800, but no work has been completed to date (budgeted cost of work per- formed [BCWP] = 0). Actual cost of work performed (ACWP) is $44,880, so there is negative schedule variance (BCWP−BCWS) of $2,800 and negative cost variance (CV) of $44,800. This

Figure 7.12: Tracking Gantt and tracking table: Completion, costs

The key information in this figure is the column “Rem. Dur.” (remaining durations), which shows the durations of task work that remains to be done, given where the project is at this point. The focus in tracking is not simply to look back at actual performance versus the plan; the real issue is how to complete the remaining work.

Adapted from Smartsheet.com.

Act. FinishAct. StartID Task Name % Comp. Act. Dur. Rem. Dur. Act. Cost Act. Work

Select Architect Critical: No

Recruit and Train Managers

Create Production Design

Building Concept

Permits and Approvals

Plant Personnel Recruiting

Equipment Procurement

Raw Material Procurement

Product Distribution Plan

Landscaping

Truck Fleet Procurement

Sales/Revenues

Critical: Yes Select Real Estate Consultant

Thu 4/17/97 Thu 4/17/97 Thu 4/17/97 Thu 6/17/97 Thu 5/1/97 Thu 8/5/97

NA NA

Tue 7/15/97 NA NA NA

Mon 6/2/97 Thu 4/17/97

Tue 7/1/97

17% 2%

100% 100% 100% 12% 0% 0%

80% 0% 0% 0% 5%

39% 89%

9.72 wks 0.77 wks

10.28 wks 4 wks 2 wks

0.36 wks 0 wks 0 wks

6.44 wks 0 wks 0 wks 0 wks 2 wks

510 wks 1.79 wks

47.48 wks 38.63 wks

0 wks 0 wks 0 wks

2.64 wks 8 wks

24 wks 1.56 wks

2 wks 3 wks 8 wks

36 wks 36.11 wks

0.21 wks

($95,936.00) $1,040.00 $5,872.00 $3,528.00 $4,312.00 $1,680.00

$0.00 $0.00

$2,632.00 $0.00 $0.00 $0.00

$76,872.00 .$228,488.03

$1,824.00

849 hrs 49 hrs

312 hrs 164 hrs 88 hrs 24 hrs 0 hrs 0 hrs

132 hrs 0 hrs 0 hrs 0 hrs

80 hrs 707.92 hrs

68 hrs

NA NA

Fri 6/27/97 Mon 7/14/97 Wed 5/14/97

NA NA NA NA NA NA NA NA NA NA

bar81677_07_c07_199-232.indd 216 9/9/14 10:56 AM

ACWPBCWPID Task Name SV CV EAC BAC VAC

International Labeling

Vertical Integration

Supply Integration

Configuration Software Tasking

Data Entry

Change Management

Tooling Pre-Manufacturing Checks

Safety System

Drawing

Alignment

Electrical Components

Component Descriptions

Chassis Assembly Panels

113

112

114

115

116

117

118

119

120

121

122

123

124

125

126 127

$0.00

$0.00 $0.00 $0.00 $0.00

$0.00 $0.00

$0.00 $0.00 $0.00 $0.00

$0.00

$0.00 $0.00

$0.00

$44,880.00 $44,880.00

$0.00 $0.00

$0.00 $0.00 $0.00 $0.00

$0.00

$0.00 $0.00

($1,120.00)

$0.00

($5,600.00)

($2,800.00) $0.00 $0.00 $0.00

$0.00 $0.00

$0.00 $0.00 $0.00

($4,480.00)

($2,240.00)

($85,120.00) ($36,400.00)

$0.00

$0.00 $0.00

$0.00 $0.00 $0.00 $0.00

$0.00

$0.00 $0.00

($44,880.00) ($44,880.00)

$1,120.00

$0.00

$4,480.00

$53,920.00 $52,800.00

$560.00 $560.00

$11,200.00 $2,800.00

$2,800.00 $2,800.00 $2,800.00 $2,240.00

$2,240.00

$168,000.00 $36,400.00

$1,120.00

$0.00

$5,600.00

$2,800.00 $0.00 $0.00 $0.00

$0.00 $0.00

$0.00 $0.00 $0.00

$4,480.00

$2,240.00

$85,120.00 $36,400.00

$0.00

$51,120.00 $52,800.00

$560.00 $560.00

$11,200.00 $2,800.00

$2,800.00 $2,800.00 $2,800.00

($2,240.00)

$0.00

$82,880.00 $0.00

$0.00

($1,120.00)

BCWS $1,120.00

$0.00

$5,600.00

$2,800.00 $0.00 $0.00 $0.00

$0.00 $0.00

$0.00 $0.00 $0.00

$4,480.00

$2,240.00

$85,120.00 $36,400.00

Section 7.2 Project Management Tools

indicates that a lot of money has been spent, but nothing has been completed to date, a clear indicator of problems. There is no earned value.

Resource Usage View

The resource usage view presents information on the team members assigned to the project and how many hours they are assigned to each task. This allows project managers to keep track of actual work to be performed by individuals on one or more projects and tasks. It shows the project manager a breakdown of work to be performed based on the project plan and schedule, which can be seen in Figure 7.14. Note that the facility specialist is overallo- cated on Monday through Thursday of the week shown, based on an 8-hour day.

Figure 7.13: Tracking Gantt and table: Earned value

The information in this Gantt chart suggests real problems in the project since there are several negative SV (schedule variance) and CV (cost variance) numbers (negative numbers are shown in parentheses). But remember that these negative figures may not always signal real problems. This is because the project manager will investigate the situation and may find that not all cost and schedule information used in the analysis was accurate. Good project managers do not overreact to this kind of information until they have confirmed that the information indicates real issues.

Adapted from Smartsheet.com.

ACWPBCWPID Task Name SV CV EAC BAC VAC

International Labeling

Vertical Integration

Supply Integration

Configuration Software Tasking

Data Entry

Change Management

Tooling Pre-Manufacturing Checks

Safety System

Drawing

Alignment

Electrical Components

Component Descriptions

Chassis Assembly Panels

113

112

114

115

116

117

118

119

120

121

122

123

124

125

126 127

$0.00

$0.00 $0.00 $0.00 $0.00

$0.00 $0.00

$0.00 $0.00 $0.00 $0.00

$0.00

$0.00 $0.00

$0.00

$44,880.00 $44,880.00

$0.00 $0.00

$0.00 $0.00 $0.00 $0.00

$0.00

$0.00 $0.00

($1,120.00)

$0.00

($5,600.00)

($2,800.00) $0.00 $0.00 $0.00

$0.00 $0.00

$0.00 $0.00 $0.00

($4,480.00)

($2,240.00)

($85,120.00) ($36,400.00)

$0.00

$0.00 $0.00

$0.00 $0.00 $0.00 $0.00

$0.00

$0.00 $0.00

($44,880.00) ($44,880.00)

$1,120.00

$0.00

$4,480.00

$53,920.00 $52,800.00

$560.00 $560.00

$11,200.00 $2,800.00

$2,800.00 $2,800.00 $2,800.00 $2,240.00

$2,240.00

$168,000.00 $36,400.00

$1,120.00

$0.00

$5,600.00

$2,800.00 $0.00 $0.00 $0.00

$0.00 $0.00

$0.00 $0.00 $0.00

$4,480.00

$2,240.00

$85,120.00 $36,400.00

$0.00

$51,120.00 $52,800.00

$560.00 $560.00

$11,200.00 $2,800.00

$2,800.00 $2,800.00 $2,800.00

($2,240.00)

$0.00

$82,880.00 $0.00

$0.00

($1,120.00)

BCWS $1,120.00

$0.00

$5,600.00

$2,800.00 $0.00 $0.00 $0.00

$0.00 $0.00

$0.00 $0.00 $0.00

$4,480.00

$2,240.00

$85,120.00 $36,400.00

bar81677_07_c07_199-232.indd 217 9/9/14 10:56 AM

Recruit and Train Maintenance Staff Facility Specialist

DetailsID Resource Namei April 14, 2014 April 21

S M T W T F S S 8.33h 8.33h 8.33h1

Work Work

Select Real Estate Company Work Building Concept Work Building Design Work Site Selection Work Select General Contractor Work Building Construction Work Plant Personnel Work Equipment Install Work Landscaping Work Select Architect Work

Project Manager Work Recruit and Train Maintenance Staff Work Select Real Estate Company Work Select General Contractor Work Permits and Applications Work

! 8.33h 3.42h

3.24h 3.42h 3.42h 4.92h 4.92h 4.92h

3.42h 4.92h

3.42h

Section 7.2 Project Management Tools

Resource Usage View in Multiple Projects

Tracking assignments when staff is assigned to more than one project is a special chal- lenge. To help track multiple assignments, the resource usage view can reflect more than one project’s performance. By inserting a new project in a current project Gantt, project managers can document multiple assignments against several projects. This is called the integrated master schedule. This capability enables project managers to collaborate on assignments and avoid overburdening staff with work beyond the regular workday and workweek.

Figure 7.15 shows the baseline project, Integrated Transportation System, and a newly inserted project, New Plant, both of which can be broken down to lower level tasks separately or together. This tool enhances an organization’s capacity to handle a portfolio of projects and review the planned and actual allocation of the whole workforce to projects, both in planning and execution modes.

Figure 7.14: Resource usage view

This figure not only shows assigned work, but also shows who is not fully assigned at 8 hours a day during any given week, thus serving as a good reference point for assignment decisions.

Adapted from Smartsheet.com.

Recruit and Train Maintenance Staff Facility Specialist

DetailsID Resource Namei April 14, 2014 April 21

S M T W T F S S 8.33h 8.33h 8.33h1

Work Work

Project Manager Work Recruit and Train Maintenance Staff Work Select Real Estate Company Work Select General Contractor Work Permits and Applications Work

! 8.33h 3.42h

3.24h 3.42h 3.42h 4.92h 4.92h 4.92h

3.42h 4.92h

3.42h

bar81677_07_c07_199-232.indd 218 9/9/14 10:56 AM

DetailsID September October

8/26 9/2 9/9 9/16 9/23 9/30 10/7 10/14

40h 32h

24h8h 16h

Work Work Work Work Work Work Work Work Work Work Work Work Work Work Work Work

24h

10.8h12h 6h 8.4h 12.85h 8h 4.55h 2.4h

9.6h12h 1.6h 8h 8h 4.55h 1.6h

Integration Gateway 4: Global Team Composition Integration Gateway 3: Organizational Development

Resource Name

Integration Gateway 5: Support Systems Assets

Business Strategy

Portfolio Development

Project Selection Criteria

Demand Studies

Ben Sheets Systems Design

Hardware

Facility Specialist Select Architect

Select Real Estate Company

Building Concept

Building Design

Site Selection

Integrated Transportation System New Plant

343

263

06/22/15

06/01/15

10/12/16

06/01/16

% Complete Duration Start FinishTask Namei

Section 7.2 Project Management Tools

In Figure 7.16 the schedule shows how staff members assigned are allocated by week. Ben Sheets is not assigned during the period shown, whereas the facility specialist is assigned to 12 hours of work during the week of 8/26.

Looking at the assignments from the viewpoint of tasks rather than resources, Figure 7.17 keys into tasks and shows all resources assigned to each task. Now we can see that the pro- totype full-integration task, build, is staffed by Deidra Bart at 40 hours in April, while the preproduction plan task in the New Plant project is staffed by the project manager at 21.61 hours in November.

Figure 7.16: Integrated master schedule with staff allocations

This integrated master schedule with staff allocations gives the project manager a high-level view of assignments by week instead of getting into too much detail on day-to-day assignments.

Adapted from Smartsheet.com.

DetailsID September October

8/26 9/2 9/9 9/16 9/23 9/30 10/7 10/14

40h 32h

24h8h 16h

Work Work Work Work Work Work Work Work Work Work Work Work Work Work Work Work

24h

10.8h12h 6h 8.4h 12.85h 8h 4.55h 2.4h

9.6h12h 1.6h 8h 8h 4.55h 1.6h

Integration Gateway 4: Global Team Composition Integration Gateway 3: Organizational Development

Resource Name

Integration Gateway 5: Support Systems Assets

Business Strategy

Portfolio Development

Project Selection Criteria

Demand Studies

Ben Sheets Systems Design

Hardware

Facility Specialist Select Architect

Select Real Estate Company

Building Concept

Building Design

Site Selection

Figure 7.15: Integrated master schedule

The information in this figure—which shows two separate projects, Integrated Transportation System and New Plant—provides top management with a high-level view comparing the projects without going into too much detail. Each can be shown in more detail should management request more information.

Adapted from Smartsheet.com.

Integrated Transportation System New Plant

343

263

06/22/15

06/01/15

10/12/16

06/01/16

% Complete Duration Start FinishTask Namei

bar81677_07_c07_199-232.indd 219 9/9/14 10:56 AM

Chassis Available Lour Bentt

DetailsID Task Name 2015

Nov Dec Jan Feb Mar Apr

21.6h

108.8h

242 241

240

2 3

Work Work

Lour Bentt Work Prototype Full Integration Work

Build Work Deidra Bart Work

New Plant Work WorkHuntsville Project WorkSelect an Architect WorkRecruit and Train Managers WorkSelect Real Estate Consultant Work Work

Pre Production Plan

Work Production Specialists

Work Manufacturing Engineering

Work Project Manager

Create Production Plans 147.2h

869h 863.8h 766.4h 466h 527.2h 869h 863.8h 766.4h 466h 527.2h

0h 0h 0h

40h

40h 40h

Section 7.3 Applications of Project Management Software

You can see from this discussion that the Gantt chart is not the only tool available to the project manager and team. Project management software enables project managers to look at resources, costs, schedules, and other aspects of the project in different tables and figures based on comparisons with the baseline. Now it is time to look at how this software is used in various project phases.

7.3 Applications of Project Management Software The use of these project management tools represents a support and enhancement of the project management process and is not a replacement for leadership and good management practice. It is up to leadership to place project management system software in its proper role—support. No software will help track and integrate projects unless the managers and project staff want to track and integrate projects and project assignments.

As evidenced here, project management software has the capacity to document and display schedule resource information and analyze it as a database. These tools help provide for cross-comparisons of tasks, resources, and costs, but the motivation to track and monitor must come from the leadership and be demonstrated in day-to-day project execution. These tools can help project managers and teams broaden their perspective beyond their own proj- ect to see the whole enterprise. This can lead to more collaboration and coordination and avoid resource conflicts based on incomplete information about what is in the interest of the whole enterprise.

Figure 7.17: Integrated master schedule with detailed assignments

This integrated master schedule with detailed assignments helps the project manager see what tasks require the most time and resources and who is assigned to them. For instance, the task create production plans, ID 6, is heavily assigned at 108.8 hours during November.

Adapted from Smartsheet.com.

Chassis Available Lour Bentt

DetailsID Task Name 2015

Nov Dec Jan Feb Mar Apr

21.6h

108.8h

242 241

240

2 3

Work Work

Lour Bentt Work Prototype Full Integration Work

Build Work Deidra Bart Work

New Plant Work WorkHuntsville Project WorkSelect an Architect WorkRecruit and Train Managers WorkSelect Real Estate Consultant Work Work

Pre Production Plan

Work Production Specialists

Work Manufacturing Engineering

Work Project Manager

Create Production Plans 147.2h

869h 863.8h 766.4h 466h 527.2h 869h 863.8h 766.4h 466h 527.2h

0h 0h 0h

40h

40h 40h

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Section 7.3 Applications of Project Management Software

Use of Software in Project Phases

Depending on the phase of the project, software documentation and calculations can provide different benefits. While the project is in its planning phases, the software tool is useful to build and shape the project, whereas in the execution phase the tool is helpful to track prog- ress. This section discusses how software can be useful in each project phase.

Initiation During initiation, the most important step is to establish that the project management software and network system of choice will be used to plan and manage the project. It is also important that all team members and stakeholders are made aware of the importance of good documentation, information exchange, and communication from the beginning, using the same software. The software would be characterized as the “running manage- ment tool” throughout the project. Newer versions of project management software such as Microsoft Project® and Smartsheet provide ways to integrate with the organization’s company-wide network.

In this phase, the most useful tools include a high-level Gantt chart, a resource sheet, and a fixed cost sheet. The Gantt chart would capture the basic tasks involved in the project—at a very high level since the project has not yet been planned in detail. The resource sheet would list the people who might be required to complete the project, and the cost sheet would include all potential fixed and labor costs.

While in the initiation phase, a project is not detailed enough to fully use the software, but top management and the designated project manager sometimes use the software (and a slideshow or two) to present preliminary ideas, schedules, and budgets to make decisions on whether the project should proceed to planning.

Planning In planning, the most useful tools are the Gantt chart, resource tables, and cost tables. These tools help organize the plan and serve as the baseline when the project is kicked off. The Gantt chart is completed with all tasks at the appropriate level of detail and is used as the basic planning tool to outline the basic tasks. A project task list is created using a fully fleshed-out Gantt chart with linkages and loading resources to facilitate a baseline schedule and a pre- liminary cost estimate. The project team is identified in the assigned resources, along with task leaders for each high-level task. Next the project schedule and cost estimate is scrubbed; in other words, tasks and costs are confirmed and a final baseline is produced.

The company or agency intranet is used to disseminate project schedules and budgets, and feedback is reflected in the final baseline. Presentations and virtual project team meetings will use the high-level tasks in the Gantt chart and drill down, which is a way to see subtasks, as necessary to clear up uncertainties and questions.

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Section 7.3 Applications of Project Management Software

Execution Again, the Gantt chart is used as the basis to execute project tasks. During execution, updates are made to reflect the percent each task is complete. Each team member has access to the Gantt chart to review task relationships and project progress on schedule and budget.

The project manager uses the Gantt chart as a point of reference for beginning the project, authorizing work, and jump-starting the project team effort. Frequent meetings, teleconfer- ences, and virtual connections allow regular communication between team members and the project manager—and selected stakeholders, depending on the issue. The information used in these meetings and exchanges is provided in the software, from Gantt chart updates to costs and schedule information. The major focus is on start dates and making sure work is on track with the project schedule.

The project manager makes sure that the project software updates are linked to other company or agency financial product management systems. For instance, when producing a new product, its components will often change after testing. When that happens, the changes during develop- ment are made automatically from the project software into the configuration management sys- tem. This keeps basic information on the product components and their suppliers up-to-date so the product can be produced when appropriate. Another linkage is financial. As time sheets and procurement forms are completed that incur costs against the project budget, they are automati- cally entered into the software so that actual costs can be tracked in real time.

Execution provides a process for team members to question their tasks and relationships with other related tasks and project processes. The project manager will update the project schedule based on new developments, and may even disseminate a new baseline if there is more than a 10% change in project costs or duration or if the costs of new tasks are uncov- ered with funding as the work begins. Updating the schedule can be done several times dur- ing execution to reflect changes in staffing, task durations and definitions, scheduling, and resource needs.

The tool that is most useful in this phase is the tracking Gantt tool that allows entry of actual work performed and helps compare actual and planned work and costs. During execution, all the resource and schedule tables, including the resource usage table and the task usage table, are useful because the project manager uses them to make assignments, check work performed, and keep to the schedule. Other documents used in this phase include the scope of work, the charter, and the risk management plan.

Monitoring Monitoring is the process of tracking project progress, matching actual work with the base- line, and focusing the team on remaining work and lessons learned to date. The project man- ager can use the Gantt chart tracking tool to enter task completion information based on feedback from those responsible for each task. This is accomplished by requesting that team members estimate the percentage of project task completion and entering the data into the tracking chart. This is a tricky business, however, since percent complete is often a subjective judgment because task milestones that represent various percent complete points in a task are rarely congruent with project review requests. Therefore, team members must use their own judgment and are likely to overestimate the work completed.

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Section 7.3 Applications of Project Management Software

The tracking Gantt chart is used exten- sively in monitoring because it enables entry of data on actual performance to be compared with planned perfor- mance, or schedules and costs. Task managers can enter changes in their task areas, and schedules are automat- ically made available to team mem- bers. The risk management plan and risk register are constant sources of data on problems and risks that were anticipated in the planning process.

Closeout The project is closed out when all costs are recorded and the last project milestone—typically customer accep- tance and payment—is completed.

At this point the resource sheet is very useful because it shows who is assigned to what tasks and when they will be finished with their work. Project closeout is both a financial and a human resource process. The human resource issue is how the project team will be tran- sitioned to its next endeavor and how to avoid long, drawn-out closeout processes during which staff members will continue to charge to a project because their future assignments have not been made.

The project manager also facilitates financial closeout by reviewing final cost and schedule variance figures in the software and confirming project costs with the company or agency financial management systems and staff.

The software is also useful in looking back at the project for lessons learned on such issues as schedule variance, budget and cost controls, contract management, and other schedul- ing issues.

Managing Project Change

Since change is predictable in most projects, it is important to be able to use project man- agement software to document and control changes and change responses. For instance, a contractor may request a change in a service component because a new technology becomes available. The contractor may be supporting the project manager to find and hire special proj- ect staff and may request a change order to purchase a software package that provides an electronic skills inventory that will help identify, categorize, and profile candidates for hire. Project processes usually provide a change order form and process for such a change.

A change order system is the formal way of changing such items as a project baseline, scope of work, requirements, product specifications or components, schedule, team assignments, or

fbatista72/iStock/Thinkstock

Having team members enter their progress into project management software is a key component of the monitoring function. What are some of the risks associated with self-reporting?

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Section 7.3 Applications of Project Management Software

budget. Change orders must be approved by the project manager and often trigger analysis and project reviews to anticipate any impacts of the change on the project as a whole.

With regard to keeping track of product components and suppliers, a configuration management system is sometimes integrated with the project management system. A configuration management system documents the product breakdown structure (an orga- nization chart of the project’s product deliverables and their components and suppliers).

Any change in component suppliers is documented to ensure that the company can produce and manufacture the final deliverables for other customers. This approach avoids the risk that suppliers of product or service components, equipment, or tools involved in the proj- ect deliverable may go out of business or change their product lines, potentially leaving the project organization with no way to acquire and manufacture originally specified products and components.

Change management is a major challenge for projects, especially those producing new prod- ucts or services that are not well defined at the project’s beginning. For instance, if a project is intended to produce a new assembly system and process for a manufacturing system, as the project advances into the planning and execution phases, new ideas and innovations are likely to occur.

Many of these new ideas may fundamentally change the product assembly process and per- haps the workforce and equipment needs of the system. Thus, a change in the assembly process is likely to have unanticipated impacts on other aspects of the company business, workforce, and production processes. An effective change management system backed up by project management software gives the project manager a process and secure platform for such changes and a way to document and analyze them.

This issue again brings up the question of compatibility and system integration. Too often, project management software is seen as a separate tool and is not integrated into other business systems serving such functions as finance and accounting, manufacturing, pro- curement, configuration management, marketing and customer management, and human resources. Various enterprise management systems are available to link project manage- ment to these other business processes, but unless the company or agency system adminis- trator plans for integration, it is a major challenge to do so after separate systems that are not compatible are installed.

Practical Uses of Software

This section will discuss the uses of project management software tools in terms of their practicality. As indicated earlier, there are some software tools and screens that are especially useful in moving a project along. The purpose of this section is to emphasize how these tools contribute to the management of a project. Not all the tools in a software program are going to be useful in every project. Simple projects, or those with fewer than 25 tasks, can be handled without the software and instead using a spreadsheet, but projects larger than that require more sophisticated capabilities.

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Section 7.3 Applications of Project Management Software

Most Useful Software Tools The most useful tool is the Gantt chart, which should be regularly updated and presented at the appropriate level, depending on the audience in on-site or virtual meetings. High-level tasks are shown to top management, and more detail is provided to team members and staff with the extent of drill down determined by each case and information need. However, proj- ect management software is a detailed operational management tool and should not be used in presentations unless appropriate to the audience.

Planning and Management Applications The most helpful applications of these tools are in planning and scheduling, cost estimation, control, monitoring, and reporting. Planning and scheduling are conducted using the Gantt chart as a basic reference. Cost control is accomplished by entering all resource and fixed costs and monitoring actual costs against planned or budgeted costs. Reporting uses the vari- ous sheets, resources, and task usage to target certain information to specific team members, functional staffs, or stakeholders.

The Gantt chart is especially useful in estimating a project schedule and its costs. Because the project team can “build” the project in the Gantt chart and add costs as new tasks are added, the chart becomes a major tool in cost and schedule estimation. If, for instance, a customer wants to know when a given project will be finished, the chart can be used to make the esti- mation. Then it can also be used in a “what if ?” analysis, such as what will happen in changing factors like labor and fixed costs, and contracting out versus in-house work, to see the impact on the schedule and cost.

Linking to Company or Agency Systems A project management software package should not be operated in a vacuum, but rather inte- grated with other company or agency systems. These systems include:

• financial systems: to ensure that project costs are coded and captured in a project format but also in the company-wide accounting system;

• procurement systems: to ensure that the basic procurement and supply ordering to support a project is directly connected to project needs;

• human resources: to ensure that human resources is aware of project assignments and performance feedback;

• time management: to ensure that time sheets are project coded to capture actual work against project coding;

• management information systems: to ensure that top management can access project information in addition to project management data provided by the project manager;

• business accounting and management systems that support all business decisions, including financial, procurement, operations, facility, IT, distribution, marketing, and sales;

• technical or functional systems such as product or configuration management: to ensure that when a project is designed to produce a complex technical product, all product components and suppliers typically captured in a configuration system are tied directly to project management and vice versa;

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Section 7.3 Applications of Project Management Software

• production or operational systems: to ensure that projects that transition products to production are tied directly to production scheduling systems so that prototypes and final products can be sequenced to project outcomes; and

• marketing systems: to ensure that marketing and sales staff are aware of pending proj- ects and products that may impact their strategic and market planning and analysis.

Use in Project Management Information Systems, Presentations, and Reporting A PMIS documents all basic project information, including project goals, objectives, deliver- ables, work breakdown structures, charters, risk management plans, and schedules. The proj- ect manager is responsible for making sure all project documents are included in the PMIS. Reporting is accomplished through high-level schedules and budgets, integrated into short, concise text focused on progress, problems, and next steps.

Limitations These tools are simply data sources and have major limitations if they are used blindly. This is because data does not drive projects—people do. In the end, project management soft- ware guides the work and helps identify problems and opportunities but cannot be relied on to run the project. Project team members need to understand that preparing a technically solid schedule and task plan, as good as it looks, is largely worthless if it is not embraced and endorsed by the project manager and the rest of the team, especially those responsible for related, interdependent tasks.

Use of Tools Not all of these tools are needed all the time because the scale of the project will dictate vari- ous applications. A highly complex project with four or more levels of tasks will depend more on the software than a simple project with two levels of tasks. There is a tendency to overkill a project with more information than is actually necessary, simply because one can.

Use of Tools With Networks Outside the Organization Sometimes it is as important that your project software be compatible with partners and stakeholders outside the organization as it is to have an effective internal system. Organi- zations that must work with other organizations to complete projects must find ways to exchange project information in common formats.

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Section 7.3 Applications of Project Management Software

Use of Project Management Software in Meeting Presentations and Virtual Team Chats Used effectively, the Gantt chart and other project software tools can be useful in making presentations and supporting virtual team communications. There are five basic uses: top management briefings, technical team meetings, updating performance on tasks, briefings for stakeholders, and project reports.

State Department of Health and Human Services Public Sector Case Study

As the secretary, Robert Mikawa, contemplates the move to a national health records system, he knows that he and his top management face real issues in reaching their goals through a common methodology and program management system. He holds a meeting with the assistant secretary for programs, Rebecca Dawson, and assistant secretary for human resources, Duncan George.

Mikawa tells Dawson and George that he does not have a good grasp on how to prepare for their health information system project, given the various jurisdictions and private health providers they are partnering with. When it comes to designing and implementing a new system, there will be hundreds of agency staff and contractors involved, and they will have incompatible program and project management capacity and systems. He does not know how everyone will get on the same page.

Dawson suggests that they conduct a survey to see what project management systems their partners are using and do some research to see how they can integrate their sys- tems without interfering in individual management systems. She feels that it will be more important to bring consistency to the leadership in their partnership networks than to bring compatibility to their project management systems.

She envisions the agency using project management to manage at the highest level of work tasking and leaving the more detailed implementation at the operational levels to others. She would like to use Microsoft Project 2013® to help them communicate, since their net- work is so complex. The software allows comprehensive reports to be shared in a network.

George interjects and says that they do not have enough people in key positions to coordi- nate the process, especially if it requires sophisticated uses of project management soft- ware and network systems. Their workforce is largely health services and administrative, and most do not have program and project management credentials or knowledge.

Questions for Discussion

1. There is concern about whether the department has the skills in its workforce to manage project management software, raising major questions about its workforce capacity and training and development needs. How would you suggest they build workforce competence in this area?

2. How do you think the department should approach training all project participants in the use of project management software?

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Section 7.3 Applications of Project Management Software

1. Top management briefings to support the review of high-level tasks for top manage- ment. The Gantt chart is useful as a discussion point for top management on the whole project. Since most software enables you to present just the highest level tasks, the presentation is focused on the project flow rather than detailed subtask issues.

Project presentations can be made directly from mobile devices using the basic software or created in presentation software such as PowerPoint®.

One cautionary note on these presentations, however, addresses information overload, or getting caught up in the trees when you want to keep the focus on the forest. For instance, if you are focusing a top management or stakeholder group on major issues in an IT project, such as the rising costs of security software that threat- ens to overrun the budget, you do not want to simultaneously raise more detailed questions about specific task issues three levels down in the Gantt chart, such as a minor problem created by the late delivery of software coding.

2. Technical team meetings on specific task issues. Drilling down to specific tasks is useful in a meeting on specific, detailed tasks involving a small group of team mem- bers focused on a task quality or hand-off issue. For instance, a project software presentation can be helpful to facilitate the discussion and resolution of a specific problem in a new product project that is producing a new wireless keyboard. The presentation can be limited to showing only the low-level task involved in the prob- lem; for example, the point in the project when a software engineer should have handed off a coding document to a mechanical engineer but did not.

3. To collect performance information and percent complete information. Project man- agers can update task completion information in meetings and virtual exchanges by asking each team member to indicate percent complete on their tasks and entering the data into the actual entry points in the software. This allows the team to see the impacts of task completions that vary from the baseline plan and schedule.

4. Briefings for stakeholders. Sometimes it makes sense to brief particular stakehold- ers or to distribute schedules and related project information to them. Project software can be used to show schedules and to support virtual meetings or telecon- ferences on issues that are relevant to key stakeholders. For instance, in a telecon- ference with a partner firm in a joint project to produce a research report, a project manager can share Gantt information at a very high level to give the firm perspective on how it fits into the whole project.

5. Project reports. Screenshots and embedded schedule and cost information can be used in reporting to customers, top management, and sponsors and stakeholders. Care should be taken, however, to use reports to communicate issues and progress rather than raw data from project software.

Despite all the benefits of project software, not all project managers will fully utilize the tools available. That is because the project management process is a hands-on activity in many fields. This means that with all the access to schedule and cost information provided by soft- ware, the project is still very much dependent on project managers “pressing the flesh” with the team and verbally communicating on important issues.

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Summary and Resources

Chapter Summary • This chapter shows that project software can be useful to document a large amount

of complex project information that is useful at every project phase. • The Gantt chart is the key tool for planning and execution because it provides basic

information on tasks, sequences, dates, and resources. • Other software tables and figures provide useful information on project resources,

assignments by staff member and task, costs, and tracking information on how the project is performing against the plan.

• Software can also be useful in documenting changes in project schedules and costs, and since project management requires adjustment to changes, the tool is useful in decision making.

• Documentation can be distributed to team members and stakeholders to include them in analysis of plans, performance, and decisions on corrective actions.

• Project management software can be linked to other enterprise-wide business sys- tems such as a configuration management system that documents a product deliver- able in terms of components, specifications, and suppliers.

• Software has its limitations because it is still necessary for team members to have good interpersonal communication skills and to build a strong commitment to the team and not depend entirely on electronic communications.

Posttest 1. How can project management software help integrate the project with an organiza-

tion’s strategic plan? a. by providing tutorials and training for team members on aligning tasks with the

company’s overall business plan b. by identifying major threats to the company’s success and analyzing whether the

project would benefit the organization in light of those threats c. by making possible real-time changes to the project’s deliverables based on cur-

rent market research d. by allowing a project team to access enterprise-wide strategic information and

make decisions accordingly

2. The process of entering high-level project tasks into an outline first and then pro- ceeding to more detailed tasks is known as __________.

a. project decomposition b. “rolling down” to a milestone c. project deconstruction d. component analysis

3. __________ is the measurement of schedule and cost variances in terms of dollar amounts.

a. Tracking b. Resource usage c. Earned value d. Master scheduling

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Summary and Resources

4. Which of the following is a benefit of using an integrated master schedule (IMS)? a. An IMS looks not only at whether key milestones in the schedule were met, but

also at variances between the estimated and actual costs of meeting them. b. Project managers can label their own project decomposition tasks when using an

IMS, rather than having to follow the standard tasks included in most other tools. c. An IMS allows project managers to track team members assigned to more than

one project and make sure they are not overburdened. d. Team members have more ability to track their own work by integrating their

personal schedules with the project manager’s master schedule.

5. Which tool is most likely to be used by a project manager as the starting point for a project kickoff ?

a. the project resource sheet b. the project cost table c. the PERT chart d. the Gantt chart

6. In which of the following scenarios is a project manager LEAST likely to create and distribute a new baseline?

a. a 15% variance in project costs b. the assignment of new team members to the project c. a 12% change in project duration d. corrective actions taken to address performance issues

Review Questions 1. What are the basic tools in project management software? 2. How are these tools used, and in what functions? 3. What management functions are supported by project management software? 4. When is project management software not needed? 5. While software provides information on work, resources, and costs, how do you

determine the actual quality of the work that is reported as completed? 6. Why is it important to link project management software into a broader PMIS and

enterprise-wide business management systems?

Think About It! Reflective Exercises to Enhance Your Learning 1. Download a project management software package tutorial and practice data entry

in the Gantt chart. 2. Interview a practicing project manager on project management software applica-

tions in the real world. 3. Using a project of your choice, describe what tools would be most useful and what

tools would not.

Additional Resources Barkley, B. T. (2005). Integrated project management. New York: McGraw-Hill.

Biafore, B. (2013). Microsoft Project 2013: The missing manual. Sabastopol, CA: O’Reilly.

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Summary and Resources

Brotby, K. W. (2009). Software engineering economics. Englewood Cliffs, NJ: Prentice Hall.

Cicala, G. (2013). Project management using Microsoft Project 2013: A training and reference guide for project managers using standard, professional, server, web applications, and project online. Wilmington, DE: Project Assistants.

Cullen, C. D. (2010). The effectiveness of software project management practices: A quantita- tive measurement. Monterey, CA: Naval Postgraduate School.

Kerzner, H. (2005). Using the project management maturity model: Strategic planning for project management. Hoboken, NJ: Wiley.

Kohli, J. (2010). Asking questions like the British do. Washington, DC: Center for American Progress.

Project Management Institute. (2013). A guide to the project management body of knowledge (5th ed.). Newtown Square, PA: Author.

An article on how to evaluate various project management software programs: Bryce, T. (2014). The truth about project management packages. Retrieved from Project Management Hut website: http://www.pmhut.com/the-truth-about-project-management-packages

An article on how project management software can help project managers and teams control projects: Jordev, S. (2013). 5 advantages of using project management software. Retrieved from Project Management Hut website: http://www.pmhut.com/5-advantages -of-using-project-management-software

Answers and Rejoinders to Chapter Pretest 1. False. Project management software is used in every phase of the project life cycle,

from documentation of the initiation processes all the way through to the project closeout. A quick closeout is facilitated when all work, deliverables, and costs are documented.

2. False. No matter what particular software is used to manage a project, a task outline is a must in the planning stage. Defining and tracking the work needed to complete the deliverables is the basis of project management, and task outlines are essential to this process.

3. True. Because project management software is a detailed tool for operational man- agement, its use is not always appropriate for every audience. Although top manage- ment might want to see the high-level tasks, and team members often need a more drilled-down view, other audiences might not benefit from this level of detail.

Answers and Rejoinders to Chapter Posttest 1. d. One of the values of project management software is that it can be used to

ensure that the project is aligned with the broader organization’s plans by giv- ing the project team access to strategic information from the enterprise-wide business systems.

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http://www.pmhut.com/the-truth-about-project-management-packages

http://www.pmhut.com/5-advantages-of-using-project-management-software

Summary and Resources

2. a. In project decomposition, the work is defined in increasing detail, demonstrating how the tasks “roll up” to the next milestone.

3. c. Earned value uses dollar amounts to measure variances in both cost and sched- ule, comparing the cost of the actual work completed to the budgeted costs for work scheduled to be completed to date.

4. c. When staff members are assigned to more than one project, managers must col- laborate to make sure the staff is not overcommitted. An IMS documents multiple assignments, showing how staff members’ hours are allocated among various projects.

5. d. In the execution phase, the Gantt chart is used as a point of reference for jump-starting the team effort, authorizing work, and generally kicking off the project’s implementation.

6. b. During the execution and monitoring phases, the project manager tracks devel- opments and updates the project schedule as necessary. If costs or duration change by more than 10%, or if corrective actions are necessary or new tasks are required, the project manager may disseminate a new baseline.

Key Terms

configuration management system A system to document the components of a product and its suppliers.

cost variance When project costs vary from the budget; in earned value terms, when the actual cost of work performed (ACWP) differs from the budgeted cost of work per- formed (BCWP).

drill down The technique that goes deeper into a task to see subtasks at lower levels.

integrated master schedule A Gantt chart with two or more inserted projects to facili- tate tracking multiple projects.

project cost table The table that shows fixed costs.

project resource sheet The sheet that shows assigned project resources.

resource usage view The view that shows how resources are assigned, by task.

risk-based scheduling and the PERT view The tool that allows calculation of revised task durations based on relative risk.

tracking Gantt and earned value table The table that shows cost and schedule variance based on entered data on actual performance.

tracking Gantt and tracking table The table that allows for entry of project prog- ress in terms of percent complete.

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