Course Project: Week 3

• Analyze project schedule & resource allocation – 2 essay questions – 40 points

Please provide these two deliverables (MS Project file, and MS Word document) to the Week 3 Drop Box. Please refer to the course syllabus for your due date.

To help guide you through these deliverables, please follow the three step process on the following pages.

While meeting with your project team, you have worked with them to determine the appropriate sequencing of the activities, and the duration for each activity. The data that you compiled is shown below. Using MS Project, follow the Project Schedule Instructions provided below to build a project schedule for the Huntsville Project by entering the information from the below task list with duration and predecessors.

Project Schedule Instructions

The following steps should be follwed when setting up the Huntsville Plant Project with Microsoft Project 2010:

1. Set the basic project information

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  • Open MS Project 2010.
  • Click on the File button (top left), select "save as" and enter the file name as (your name) cp1. For example: SmithJanecp1.mpp
  • Click on the "Project" tab and select "Project Information". In the Project Information dialogue box, set the start date to 4/18/2011.
  • Leave other dates as is. Click on "OK".

2. Set basic Gantt chart format (use also for tracking Gantt chart view)

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  • Right click on the mouse in the gray area of the Gantt chart on the Right side of the screen where the dates in month and days are for the menu and select "Timescale."
  • In the Timescale dialogue box:
    • Select the Middle Tier tab set Units to Quarters
    • Select the Bottom Tier tab set Units to Months
  • Click on "OK".

3. Setup the default task units to weeks

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  • Click the File tab, and then click Options.
  • In the Project Options dialog box, click Schedule.
  • Under Scheduling options in this project, set the following:
    • New tasks created select Auto Scheduled
    • Duration is enetered in select Weeks
    • Default task type select Fixed Duration
  • Click "OK" to close the dialog box.

4. Set up the default task type

Once you have set the defaults, type the Task Names from the HUNTSVILLE PLANT TASK LIST in the column Task Name in MS Project.

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  • Enter the task durations in the Duration Column.
  • Enter the predecessor(s) for each task in the Predecessors column. If there is no duration or predecessor listed, leave the column blank. Note: If you do not see the Predecessors Column, move the vertical line between the Entry Form and the Gantt Chart to the right to reveal the column. Click on the line and drag to move it. Columns can be expanded or contracted individually to accommodate information the same way column width is adjusted in MS Excel.

5. Create a "Summary" Task

Once you have entered the Task Names, Durations, and Predecessors follow these procedures to create your levels for your summary tasks.

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  • Click on the Task tab if it is not already active on the toolbar
  • Click on the task PLANNING PHASE and select all tasks down to and including "Begin Distribution."
  • Click on the Right Indent arrow under the Schedule section of the Task tab. The right indent arrow is about one third of the way along the toolbar below the short blue bar labeled 25%. All tasks should now be right indented to your high level HUNTSVILLE PLANT PROJECT. There should be a small box with a + sign in front of the HUNTSVILE PLANT - PROJECT.
  • Click on the Select Architect task and highlight to and including the Obtain Permits & Approval task. Then click the Right Indent arrow.
  • Now follow this same procedure to indent the tasks for each phase in the same way. If your indents are correct, you will have two levels under your project header (phase, and task). NOTE: If you make an error while indenting, use the UNDO icon or highlight the task and click the Left Indent arrow.

Optional: To add WBS numbering to the view: Click on HUNTSVILLE PLANT - PROJECT. Click on the Format tab on the toolbar selection menu. Click on Insert Column. Select WBS from the drop down list. If the task list is correctly indented, WBS numbers will be in the column before the task names column.

The following steps should be followed when setting up the Huntsville Plant Project with Microsoft Project 2007:

1. Set the basic project information
   • File/New
   • Project Information (can also be reached by Project/Project Information)
   • Start date: April 18, 2011
   • Current date: your setup date
2. Set basic Gantt chart format (use also for tracking Gantt chart view)
   • View / GANTT
   • Format / Timescale
     • Select the Middle Tier tab set Units to Quarters
     • Select the Bottom Tier tab set Units to Months
3. Setup the default task units to weeks
   • On the Tools menu, click Options, and then click the Schedule tab
   • Duration is entered in: select Weeks
4. Setup the default task type
   • On the Tools menu, click Options, and then click the Schedule tab
   • Default task type: select Fixed Duration
5. To create a "Summary" task
   • Select the tasks that belong to the Phase/Summary
   • Use the indent button (right arrow) to create the summary
   • The summary task will automatically add the related task durations.

Analyze your Schedule and Network Diagram

To see the network diagram, click on View, then select Network Diagram. Activities on the Critical Path are outlined in red, while non-critical path activities are outlined in blue. You will need this information to answer the essay question in Step 3.

Variable Resource List

With the help of the human resources, accounting, purchasing, and finance departments, resources have been identified to assist with the project. The resources are provided below and need to be loaded into MS Project and then allocated to the Project Schedule:

Loading Resource List Instructions

First, use the information supplied above and enter the variable resources on the Resource Sheet in MS Project.

Click on "View", "Resource Sheet", and enter the resource name, initials (note: We will load the standard cost next week!). Assume only one of each resource is available.

Once you have the resource loaded, refer to the table below for how the resources will be aligned to each task.

Resource Allocation and Assignment Instructions

To assign your resources to the aligned tasks in MS Project, follow the steps below:

Assign Hourly Resources and costs to the tasks that you have already entered.

• Choose "View" - "Gantt Chart." Place active window on the first task (Select Architect)
• Click on the Double Headed Icon on the upper Tool Bar (Assign Resources), or click Alt-F10.
• In the resource assignment window, Enter "PM." Enter "10" in the units column. Click on "FS"; enter "60" Click on "Assign." This will align the Project Manager at 10%, and the Facility Specialist at 60% for the Select Architect Task.
• Repeat for all resources and activities according to the Resource List above.

Analyze your Resource Allocation and Assignments

There are several methods to check for over-allocated resources:

1. Click on "View", "Resource Sheet" - resource(s) in red color are over-allocated.
2. Click on "View", "Resource Usage"-- resource(s) in red color are over-allocated resource(s) by date.
3. Click on “Project”, “Reports.” A dialog box appears, click on “Assignments” then “Select.” Then click the report for “Overallocated Resources” and then “Select” to print or view.

You will need this information to answer the essay question in Step 3.

Answer the following essay questions

Now that your project schedule has been created and your resources have been allocated, please analyze your results and answer the following essay questions. In your analysis, be sure to identify the critical path and relate any time reduction opportunities to specific activites in the WBS.

Essay Question #1: Will the Huntsville Plant Project be ready by the June 30, 2012 deadline set by the board of directors? What options might be open to ensure this deadline is met, if the current schedule indicates the Huntsville plant project will not be ready in time?

Essay Question #2: Are there any resources over-allocated? If yes, during which month(s) and what are some ways this might be addressed?

Using your own words, I am looking for a two to three page essay report that addresses the essay questions above. Remember, the report must be to a level of clarity and depth that would be readily understood by the executive management; in other words do not repeat the questions, avoid a simple "Yes" or "No" answer. Do support your analysis with both in-text citation and references from the textbook, PMBOK or other juried sources. Include a cover sheet and a reference page. Use APA Style format, spacing double, one inch margins, Times New Roman, 12 point font size.

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Course Project: Week 4

Now that your project schedule has been created and your resources have been loaded, let's take a closer look at the cost of the project.

This week, you will have two deliverables.

• Enter project cost information into MS Project-- 15 points
• Answer questions regarding earned value analysis-- 30 points

Please provide these two deliverables (MS Project file, and MS Word document) to the Week 4 Drop Box. Please refer to the course syllabus for your due date.

To help guide you through these deliverables, please follow the three step process on the following pages.

You have just received the fixed costs that pertain to this project. With this information enter it into MS Project following the instructions below.

Resource Fixed Cost List Instructions Microsoft Project 2010

The following steps should be followed when setting up the Huntsville Plant Project Resources with Microsoft Project:

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  1. Use the information supplied above on the Resource Cost List. Enter fixed costs for appropriate activities.

o    Go to the gray area at the top of the project on the "Duration" column and "Right Click" and choose "Insert Column." Type in "Fixed Cost" and hit enter.

o    Enter the fixed costs above in the fixed cost column as listed adjacent to the appropriate tasks.

Resource Fixed Cost List InstructionsMicrosoft Project 2007

The following steps should be followed when setting up the Huntsville Plant Project Resources with Microsoft Project:

1. Use the information supplied above on the Resource Cost List. Enter fixed costs for appropriate activities.
   • Choose View - More Views. In the views box, select Task Sheet, Apply.
   • Next select a task (e.g. "Create Building Design"). Display the Cost Table (View - Table: Cost). Type "32,000" in the fixed cost column. Repeat for other fixed costs.

Variable Resource List

With the help of the human resources, accounting, purchasing, and finance departments, resources have been identified to assist with the project. The resources are provided below and need to be loaded into MS Project and then allocated to the Project Schedule:

Resource Variable Cost List Instructions for Microsoft 2010

Using this information, go back into the Resource Sheet to update the Hourly Rate for each resource.

• Click on the View tab. Click on the Resource Sheet icon under the "Resource Views" section. The Resource sheet icon is the middle icon on the right of this view with two heads. Check to make sure the Type field is "Work" and enter the dollar amount above for the Hourly Rate for each resource in the Std. Rate column.
• To access various reports with cost and other information select Reports under the Project tab.

Resource Variable Cost List Instructions for Microsoft 2007

Using this information, go back into the Resource Sheet to update the Hourly Rate for each resource..

• Click on "View", "Resource Sheet", and enter the standard rate for each role. For example, for the PM Resource, enter "32" in the Std. Rate column. This will default to $/hour.

Answer the following essay question

Now that your project schedule has been created, your resources have been loaded, and your resource costs have been allocated, please analyze your results and answer the following questions.

After you enter all of your resources, answer the following questions:

1. What is your total budget for this project? Was the project within the budget as set forth by the board of directors? [5 points]
2. What is your budget for the Planning Phase? What is the Planning Phase duration in weeks? [5 points]
3. What is your budget for the Preparation Phase? What is the Preparation Phase duration in weeks? [5 points]
4. As your project launches, what are some of the key performance indicators that you will monitor and control? Why are these performance indicators critical to mange during the project? [15 points]

Formulate the above responses into a two to three page essay report. Remember, the report must be to a level of clarity and depth that would be readily understood by the executive management. Do support your analysis with both in-text citation and references from the textbook, PMBOK or other juried sources. Include a cover sheet and a reference page. Use APA Style format, spacing double, one inch margins, Times New Roman, 12 point font size. 

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Essay Question #1: Will the Huntsville Plant Project be ready by the June 30, 2012 deadline set by the board of directors? What options might be open to ensure this deadline is met, if the current schedule indicates the Huntsville plant project will not be ready in time?

The Huntsville Plant Project will not be ready by the deadline date set by the Board of Directors i.e. 30 June 2012. It is evident from the MS Project’s Project Information that the expected finish date of the Huntsville Plant Project is scheduled to be on 6 July 2012, a week behind the planned completion date.

PMPBOK edition 4 states that any activity having zero float is said to be critical. Generally, critical path is the longest path in the project and cannot be compromised. Critical activities need to be tracked so that the overall project does not slip away from its original planned completion date. The Gantt chart indicates the list of activities which fall under critical criteria.

The project in consideration consists of 4 WBS levels.

1.      The Planning Phase

2.      The Preparation Phase

3.      The Plant readiness Phase, &

4.      The Production Phase

The Planning phase WBS is critical and any delay in this phase causes a consequential domino effect on the preparation and production phase. Any impact on the critical path will change the overall duration of the project. Now, if the project is getting delayed by one week, it means that the project needs crashing in order to complete within the date specified by BOD.

Crashing is a technique employed to minimize the overall project duration. It can be achieved by applying more resources to the critical activities without affecting the non-critical activities.

A possible option to complete the project within deadline can be to delay the activities 1.1.2 Recruit & Train Managers, 1.1.3 Select Real Estate Consultant. In doing so, the resources assigned to the above mentioned activities can be utilized to speed the critical activities namely 1.1.1 Select Architect, 1.1.4 Create Pre-Production Plan. The 2 weeks tasks of 1.1.1 and 1.1.4 can be crunched to one week task, this will bring the overall duration of the project down by a week.

Essay Question #2: Are there any resources over-allocated? If yes, during which month(s) and what are some ways this might be addressed?

There are two over-allocated resources namely Facility Specialist and Project Manager. The two resources are over-allocated in the first two weeks of start of project i.e 18 April 2011. The over-allocated resources are in the month of April 2011. This scenario is arising due to the over load of the above resources to the activities starting in the first week of the Project.

There are four activities which start simultaneously. Activities 1.1.1, 1.1.2, 1.1.3 & 1.1.4 commence on the very first day of the start of project. It can be observed that Facility Specialist and Project Manager can dedicate only 100% of their time to specific activities in a moment of time, whereas; the resources are assigned to dedicate 110% and 120% for FS and PM respectively. This indicates that either of these activities will have reduced time towards their execution and thus causing a slippage.

As two activities of the total 4 activities are in the critical path of the project, it is advisable to allocate the resources to these tasks. As the other two tasks which are not critical can be shifted/delayed, the resources need to be assigned to the activities 1.1.1 and 1.1.4.

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1. What is your total budget for this project? Was the project within the budget as set forth by the board of directors? [5 points]

The total budget for the Huntsville Plant Project is estimated at $ 2,635,726.00. The budget of the project exceeds the original budget as put forth by the Board of Directors. This is because the project is experiencing a delay of one week from the original completion schedule. Since the last activity in the project 1.4.2 Begin Distribution involves the allocation of two resources namely MS (Marketing Specialist) & Traffic Manager (TM), their cost of salary shall be booked into the Huntsville Plant Project.

1. What is your budget for the Planning Phase? What is the Planning Phase duration in weeks? [5 points]

The Budget for the Planning Phase is estimated at $ 287,938.00 and the duration is 10 weeks.

1. What is your budget for the Preparation Phase? What is the Preparation Phase duration in weeks? [5 points]

The budget for the Preparation Phase is estimated at $ 1,282,442.00 and the duration for completion is 47 weeks.

1. As your project launches, what are some of the key performance indicators that you will monitor and control? Why are these performance indicators critical to mange during the project? [15 points]

As the project launches, it is necessary to monitor the progress of work as per planned variables. The most important parameters upon which the project should be tracked are namely:

1.      Time

2.      Cost

3.      Quality

4.      Scope

Most Project Managers use the Earned Value Analysis technique to evaluate the Performance of the Project. The Earned Value Analysis provides a pattern to recognize the pitfalls in the project execution. It is also used to compute the forecasted project completion cost at any given point in time.

The PMBOK guidelines prescribed form the best Practices in Project Management. The tools and techniques used to manage projects varying in magnitude are an example of the standard processes followed in any project management environment.

The EVA (Earned Value Analysis) is broadly categorized to derive and evaluate the following results:

1.      Schedule Variance (SV) = Earned Value (EV)  – Planned Value (PV)

2.      Cost Variance (CV) = Earned Value (EV)  – Actual Cost (AC)

3.      Schedule Performance Index (SPI) = Earned Value (EV)/Planned Value (PV)

4.      Cost Performance Index (CPI) = Earned Value (EV)/Actual Cost (AC)

5.      Estimate At Completion (EAC)         = AC + Budget At Completion (BAC) – EV

= BAC/CPI

= AC + {BAC – EV}/(CPI*SPI)

6.      To Completion Performance Index (TCPI) = (BAC - EV)/(BAC – AC)

Additionally, the Project Manager also deploys variance analysis to compute the variance in costs and timelines against the project deliverables to ascertain the Performance of Project.