Chapter 6 – Project Planning: Schedule & Budget

Develop scheduling artifacts and analytical tools:
- Create a Gantt chart to visualize activity timing on a calendar‐like bar chart.
- Build a project network diagram with the Activity-on-the-Node (AON) technique.
- Identify and manage the critical path—the longest path with zero slack/float that determines minimum project duration.
- Apply the Program Evaluation and Review Technique (PERT) to incorporate statistical time estimates.
- Use precedence diagramming relationships: Finish-to-Start (FS), Start-to-Start (SS), Finish-to-Finish (FF), Start-to-Finish (SF).
- Explain Critical Chain Project Management (CCPM) and its buffer strategy.
Develop a complete project budget, understand cost categories, and define a baseline project plan.

Schedule derivation:
- Activities & duration estimates extracted from the Work Breakdown Structure (WBS).
- Final timing depends on proper sequencing / logical dependencies.
Budget derivation:
- Sum of activity durations × resource rates from the WBS.
- Iterative refinement common; goal is realism in time & cost.
High-level planning chain (Project Planning Framework):
- MOV → Scope → Phases → Tasks → Sequence → Time Estimates → Schedule → Resources → Budget

Gantt Charts
- Planning Gantt displays intended timing; Reporting Gantt overlays actual progress/status.
- Fast visual for stakeholders; easily produced via software (e.g., Microsoft Project).
Project Network Diagrams (AON)
- Nodes represent activities; arrows show precedence.
- Enable computational analysis of paths & slack.
Critical Path Analysis (CPA)
PERT for three-point estimating.
Precedence Diagramming Method (PDM) for advanced dependency modeling.

Activity table (key excerpts):
- A: Evaluate current tech platform – 2 d – none.
- B: Define user requirements – 5 d – A.
- … J: Write management report – 1 d – H & I.
Possible AON paths and total durations (days):
- 1) A→B→C→F→H→J = 18
- 2) A→B→D→F→H→J = 17
- 3) A→B→D→G→H→J = 16
- 4) A→B→D→G→I→J = 19 ← Critical Path
- 5) A→B→E→G→I→J = 17

Longest‐duration path; determines earliest finish.
Zero slack: delay of any critical activity delays project.
Control strategies:
- Crashing: add resources to compress time.
- Fast tracking: parallelize tasks originally sequential.
CP may change if durations shift; multiple CPs possible.

Combines network logic with probabilistic durations.
For each activity collect:
- Optimistic $a$ , Most‐Likely $m$ , Pessimistic $b$ .
- Expected duration $TE = \frac{a + 4m + b}{6}$
Website example expected times (sample):
- A = 2.2 d, B = 5.2 d, … J = 1.3 d.
Path analysis (expected):
- CP = A→B→D→G→I→J = 20.5 d (longest expected).

Fundamental logical relationships:
1. Finish-to-Start (FS) – default; successor starts after predecessor finishes.
2. Start-to-Start (SS) – successor can start once predecessor starts.
3. Finish-to-Finish (FF) – successor finishes when predecessor finishes.
4. Start-to-Finish (SF) – rare; successor cannot finish until predecessor starts.
Lead: positive overlap—start successor early.
Lag: delay—insert waiting time (negative lead).
- Example lead: install OS when 50 % of PCs are set up.
- Example lag: wait 1 day after painting walls before carpeting.

Origin: Goldratt’s 1997 book “Critical Chain” & Theory of Constraints.
Observation: individual task estimates contain hidden safety → projects still late because:
- Student’s Syndrome (procrastination).
- Parkinson’s Law (work expands to fill allotted time).
- Reluctance to report early finishes (fear next estimates chopped).
- Resource contention (multitasking across projects).
CCPM Approach:
- Ask for 50 %-confidence duration (no built‐in safety).
- Aggregate safety into buffers:
- Feeding buffers at merges into critical chain.
- Resource buffers alert when critical resources needed.
- Project buffer at end ≈ ½ of removed total safety.
- Track buffer consumption instead of individual task variance.
- Provide incentives for finishing tasks early.
Visual: 5 tasks originally 10 d each → critical chain of 5 d each + 2.5 d buffer.

Tools like Microsoft Project® automate:
- Gantt production, network diagrams, CP highlighting.
- Resource assignment & leveling dashboards.
- Cost roll-ups.
Fundamental method knowledge still essential despite automation.

Identify required resources (people, equipment, material).
Quantify usage amount per task.
Determine unit cost/rate of each resource.
Compute task cost = quantity × rate; sum to activity & project.
Perform resource leveling to avoid over-allocation (e.g., one person on two simultaneous tasks).