Chapter 5- Project planning

Topics covered

 Software pricing
 Plan-driven development
 Project scheduling
Project planning

 Project planning involves:

 Breaking down the work into parts and
 Assign these works to project team members,
 Predict problems that might arise and
 Prepare tentative solutions to those problems.
 The project plan, which is created at the start of a
project, is used to communicate how the work will be
done to the project team and customers, and to help
assess progress of the project.
Planning stages

 Planning starts at the proposal stage (when you are

bidding for a contract to develop a software system).

 During the project startup phase, you have to plan:

 who will work on the project,
 how the project will be broken down into increments,
 how resources will be allocated across your company, etc.
 Periodically, during the project, you may need to
modify your plan in the light of experience gained and
information from monitoring works.
Proposal planning

 Proposal planning may be necessary with only outline

software requirements
 Aim is to provide information that will be used in setting
a price of the planned system and showing it to your
customers.
 Project pricing involves estimating:
 How much the software will cost to develop,
 Considering factors such as staff costs, hardware costs, software
costs, etc.
 Project startup planning

 At this stage, you know more about the system

requirements but do not have design or
implementation information yet.
 Create a plan with enough detail to make decisions
about the project budget and staffing.
 This plan is the basis for project resource allocation
 The startup plan should also define project monitoring
mechanisms
 A startup plan is still needed for agile development to
allow resources to be allocated to the project
Development planning

 The plan should be regularly edited as the project

progresses and you know more about the software and
its development
 The (1) project schedule, (2) cost-estimate and (3)
risks have to be regularly revised!!!
Software pricing
Software pricing

 Estimates are made to discover the cost of producing a

software system.
 You take into account, hardware, software, travel, training and
effort costs.
 There is not a simple relationship between the
development cost and the price charged to the
customer.
 Broader organisational, economic, political and
business considerations affect the price charged for
planned projects.
 Pricing strategies

 Under pricing (A SW company can bid low price)

 A company can support a system to win a contract that allows them
to hire/keep their IT staff for future opportunities.
 A company can support a system to win a contract that allows them
to gain access to a new market area.
 Increased pricing (A SW company can bid high price)
 The price may be increased when a buyer wishes a fixed-price
contract and so the seller increases the price to prevent
themselves from unexpected risks.
Pricing to win

 The software is priced according to what the software

company believes the buyer is willing to pay
 If this is less that the development costs (bid cost <
dev cost), the software functionality may be reduced
accordingly with a view to extra functionality being added
in a later release
 Additional costs may be added as the requirements
change and these may be priced at a higher level to
make up the shortfall in the original price
Plan-driven development
Plan-driven development

 Plan-driven or plan-based development is an approach

to software engineering where the development
process is planned in detail.
 A project plan is created: it records the work to be done,
who will do it, the development schedule and the
work products.
 Managers use the plan to support project decision
making and as a way of measuring progress.
 Project plans

 In a plan-driven project development, a project plan

presents
1. The resources available to the project,
2. The work breakdown and
3. A schedule for carrying out the work.
 Plan sections
 Introduction
 Project organization
 Risk analysis
 Hardware and software resource requirements
 Work breakdown
 Project schedule
 Monitoring and reporting mechanisms
 Project plan supplements

Plan Description

Configuration management plan Describes the configuration management procedures

and structures to be used.
Deployment plan Describes how the software and associated hardware (if
required) will be deployed in the customer’s environment.

This should include a plan for migrating data from

existing systems.
Maintenance plan Estimations of the maintenance requirements, costs,
and effort.
Quality plan Describes the quality procedures and standards that will
be used in a project.
Validation plan Describes the approach, resources, and schedule used
for system validation.
The planning process

 Project planning is an iterative process that starts

when you create an initial project plan during the project
startup phase.
 Plan changes are inevitable.
 As more information about the system and the project team
becomes available during the project, you should regularly
revise the plan to reflect requirements, schedule and risk
changes.
 Changing business goals also leads to changes in project
plans.
 As business goals change, it affect all projects, which may
then have to be re-planned.
The project planning process
Planning assumptions

 You should make realistic rather than optimistic

assumptions when you are defining a project plan.
 Problems will always arise during a project, and these
lead to project delays.
 Your initial assumptions and scheduling should also
consider unexpected problems.
 You should include contingency in your plan so that if
things go wrong, then your delivery schedule is not
seriously disrupted.
 Risk mitigation

 If there are serious problems during the development

work that are likely to cause significant delays, you need
to initiate risk mitigation actions to reduce the risks of
project failure.
 When you perform these risk mitigation actions, you also
have to re-plan the project.
 This may involve renegotiating about the project
constraints and deliverables with your customer.
 A new schedule of when work should be completed
also has to be prepared and agreed with the customer.
Project scheduling
 Project scheduling

 Project scheduling is the process of deciding how the work in

a project will be organized as separate tasks, and when
and how these tasks will be executed.
 You estimate the calendar time needed to complete each
task, the effort required and who will work on the tasks that
have been identified.
 You also have to estimate the resources needed to
complete each task, such as;
 The disk space required on a server,
 The time required on specialized hardware, such as a simulator, and
 What the travel budget will be.
 Project scheduling activities

 Split project into tasks and estimate time and resources

required to complete each task.
 Organize tasks concurrently to make optimal
use of workforce.
 Minimize task dependencies to avoid delays
caused by one task waiting for another to complete.
 Scheduling depends on project manager’s intuition and
experience.
The project scheduling process
 Schedule presentation

1. Graphical notations are normally used to illustrate the

project schedule.
 These show the project breakdown into tasks.
 Tasks should not be too small.
 They should take about a week or two.
2. Calendar-based
 Bar charts are the most well known representation for schedules.
 They show the schedule as activities or resources against time.
3. Activity networks
 Show task dependencies
Project activites

 Project activities (tasks) are the basic planning element.

Each activity has:
1. A duration in calendar days or months,
2. An effort estimate, which shows the number of person-days or
person-months to complete the work,
3. A deadline by which the activity should be complete,
4. A defined end-point, which might be a document, the holding
of a review meeting, the successful execution of all tests, etc.
Milestones and deliverables

 Milestones are the points in the program where you

can evaluate progress, for example, the handover of
the system for testing.
 Deliverables are work products that are delivered to
the customer, e.g. a requirements document for the
system.
Tasks, durations, and dependencies

Task Effort (person- Duration (days) Dependencies

days)
T1 15 10
T2 8 15
T3 20 15 T1 (M1)
T4 5 10
T5 5 10 T2, T4 (M3)
T6 10 5 T1, T2 (M4)
T7 25 20 T1 (M1)
T8 75 25 T4 (M2)
T9 10 15 T3, T6 (M5)
T10 20 15 T7, T8 (M6)
T11 10 10 T9 (M7)
T12 20 10 T10, T11 (M8)
Activity bar chart
Staff allocation chart
 GANTT CHART on MS PROJECT

Here Gantt chart is in Microsoft Project tool.

 Developing a Preliminary Schedule

hierarchy of
tasks, subtasks,
sub-subtasks, ,
summary tasks,
durations and
dependencies, etc

WBS

FIGURE 3-10. Gantt chart showing project tasks, duration times for those tasks, and
predecessors (Source: Microsoft Corporation.). You can use either the WBS of the Gantt
chart or both as you set up the project Schedule!
Tools: Resources on Histogram

Shows people assigned to the project and

those needed for each stage of development
Learn GANTT CHART via MS PROJECT:
https://www.youtube.com/watch?v=sSS1tu1yQ-Q
 USING ACTIVITY NETWORKS FOR SCHEDULING

Precedence Diagramming Method (PDM)

Precedence Diagramming Method (PDM)

 Activity: a specific task or set of tasks that is part of the scope of a

project
 Path: sequence of activities
 Event: Beginning and End of activity
 LS: Late Start time ES: Early Start time -----FORWARD PASS
 LF: Late Finish time EF: Early Finish time ---BACKWARD PASS
 Slack: Amount of delay in the system;
 Difference between critical path time and time required for a given
path.
=LS-ES or LF-EF
 Crashing: reducing overall time required to complete project
• It includes the cost of additional resources to complete the project in less time.
 PDM Example
Activity Description Activity Duration
Predecessor (Weeks)
A Scope documentation 2
B Project planning A 3
C Buy materials B 8
D Prototype design C 3
E Prototype analysis C 6
F Prototype implementation D, E 5
G Testing of prototype F 4
H Presenting prototype to customer G 2

Slack: 3 weeks (16-13) or (19-16)

Critical Path: A-B-C-E-F-G-H
Calculate Slack Time
 CPM Example
Solve the following questions for the given WBS in below.
Description Estimated
Tasks Predicates
Duration
Task A Requirements Collection - 4
Task B Screen Design A 6
Task C Report Design A 2
Task D Database Design A 3
Task E User Documentation B, C 5
Task F Programming D 6
Task G Testing F 6
Task H Maintenance G, J 3
Task J Project Close E 7
 Full Critical Path Calculation Example (Cont.)
Draw its Network Diagram?

B,6
E,5 J,7

A,4
C,2
H,3
G,6
F,6

D,3

Description Estimated
Tasks Predicates
Duration
Task A Requirements Collection - 4
Task B Screen Design A 6
Task C Report Design A 2
Task D Database Design A 3
Task E User Documentation B, C 5
Task F Programming D 6
Task G Testing F 6
Task H Maintenance G, J 3
Task J Project Close E 7
Find ES, EF, LF, and Slack Times
for each activity according to
estimated time?
Find ES, EF, LF, and Slack Times for each activity according to estimated time?

B,6
E,5 J,7

A,4
C,2
H,3
G,6
F,6

D,3

Slack Time=LS-ES or LF-EF

Description Estimated Slack
Tasks Predicates ES EF LF
Duration Time
Requirements
Task A ? ? ? ?
Collection - 4
Task B Screen Design A 6 ? ? ? ?
Task C Report Design A 2 ? ? ? ?
Task D Database Design A 3 ? ? ? ?
Task E User Documentation B, C 5 ? ? ? ?
Task F Programming D 6 ? ? ? ?
Task G Testing F 6 ? ? ? ?
Task H Maintenance G, J 3 ? ? ? ?
Task J Project Close E 7 ? ? ? ?
Find ES, EF, LF, and Slack Times for each activity according to estimated time?

B,6
E,5 J,7
A,4
C,2
G,6 H,3
F,6
D,3
Slack Time=LS-ES or LF-EF
Description Slack
Tasks Predicates Estimated Duration ES EF LF
Time
Requirements
Task A Collection 0 4 4
- 4 0
Screen Design
Task B A 6 4 10 10 0
Task C Report Design A 2 4 6 10 4
Database
Task D Design A 3 4 7 10 3
User
Task E Documentation 10 15 15
B, C 5 0
Task F Programming D 6 7 13 16 3
Task G Testing F 6 13 19 22 3
Task H Maintenance G, J 3 22 25 25 0
Task J Project Close E 7 15 22 22 0
 Full Critical Path Calculation Example (Cont.)
1. Compute estimated completion time of each path?
2. Show its Critical Path(s), and which tasks are on the Critical Path(s)?

B,6
E,5 J,7

A,4
C,2
H,3
G,6
F,6

D,3

Paths Calculations Total Estimated Path

Duration

ABEJH 4+6+5+7+3 25 C.P.

ACEJH 4+2+5+7+3 21
ADFGH 4+3+6+6+3 22
 APPLY
PERT
TO FIND
EXPECTED TIME
OF EACH TASK & PATHS
Estimating Task Duration
 PERT: Program Evaluation Review Technique
 Provide a simple formula to estimate the time for a task
based on our “optimistic”, “realistic”, and “pessimistic”
judgments.

 Technique that uses:

optimistic (o),
pessimistic (p), and
realistic/most likely (r) time

estimates to determine expected task duration

 Formula:
optimistic  4most likely  pessimistic
Expected time 
6
Using Beta Probability Distribution in PERT
 A typical beta distribution is shown below, note that it has
definite end points
 The expected time for finishing of an activity is a weighted
average.

optimistic  4most likely  pessimistic

Expected time 
6
 CPM Example
Solve the same questions by using PERT.
Description Estimated
Tasks Predicates
Duration
Task A Requirements Collection - 4
Task B Screen Design A 6
Task C Report Design A 2
Task D Database Design A 3
Task E User Documentation B, C 5
Task F Programming D 6
Task G Testing F 6
Task H Maintenance G, J 3
Task J Project Close E 7
 Full Critical Path Calculation Example (Cont.)
1. Calculate the expected time for each activity and each path
according to PERT analysis?
2. Write the PERT Expected Time formula?

M
O P Duration
Tasks Predicates (most
(min) (max) (Expected Time)
likely)

Task A - 2 4 6 ?
Task B A 3 6 9 ?
Task C A 1 2 5 ?
Task D A 2 3 7 ?
Task E B, C 3 5 8 ?
Task F D 3 6 10 ?
Task G F 3 6 8 ?
Task H G, J 1 3 6 ?
Task J E 4 7 10 ?
 Full Critical Path Calculation Example (Cont.)
1. Calculate the expected time for each activity and each path according to PERT analysis?

B,6
E,5 J,7

A,4
C,2
G,6 H,3
F,6
D,3
Expected Time = (1o + 4r + 1p)/6

M
O P Duration
Tasks Predicates (most
(min) (max) (Expected Time)
likely)
Task A - 2 4 6 ?
Task B A 3 6 9 ?
Task C A 1 2 5 ?
Task D A 2 3 7 ?
Task E B, C 3 5 8 ?
Task F D 3 6 10 ?
Task G F 3 6 8 ?
Task H G, J 1 3 6 ?
Task J E 4 7 10 ?
 Full Critical Path Calculation Example (Cont.)
1. Draw its new Network Diagram based on the found expected time from PERT Analysis?

B,?
E,? J,?
A,?
C,?
G,? H,?
F,?
D,?
Expected Time = (1o + 4r + 1p)/6

M
O P Duration
Tasks Predicates (most
(min) (max) (Expected Time)
likely)
Task A - 2 4 6 4,00
Task B A 3 6 9 6,00
Task C A 1 2 5 2,33
Task D A 2 3 7 3,50
Task E B, C 3 5 8 5,17
Task F D 3 6 10 6,17
Task G F 3 6 8 5,83
Task H G, J 1 3 6 3,17
Task J E 4 7 10 7,00
 Full Critical Path Calculation Example (Cont.)
1. Draw its new Network Diagram based on the found expected time from PERT Analysis?

O M P Duration
Tasks Predicates
(min) (most likely) (max) (Expected Time)

Task A - 2 4 6 4,00
Task B A 3 6 9 6,00
Task C A 1 2 5 2,33
Task D A 2 3 7 3,50
Task E B, C 3 5 8 5,17
Task F D 3 6 10 6,17
Task G F 3 6 8 5,83
Task H G, J 1 3 6 3,17
Task J E 4 7 10 7,00
Expected Time = (1o + 4r + 1p)/6
B,6
E,5.17 J,7

A,4
C,2.33 H,3.17
G,5.83
F,6.17

D,3.503
 CALCULATE
VARIANCE OF EACH
ACTIVITY AND PATH
 Variance in Scheduling Activities
 Probability value (PERT) may be used in the network
diagram instead of the normal duration period for each
activity.
 To calculate the variance for each activity duration:

 Variance (σ2) for a single activity can be calculated as:

 The total path standard deviation

Variance in Scheduling Activities
 To calculate the probability of completing the project in
a specified period of time:

where,
 E is the sum of the expected time of the critical path
 D is the desired due time
 is the total path deviation
EXAMPLE 3
1. Write the PERT Expected Time formula?
2. For the following tasks, calculate expected time for each activity and each path
according to PERT analysis
3. Draw its Network Diagram based on the Expected Time
4. Show its Critical Path
5. Write Variance formula
6. Calculate the variance for each activity
5.Write Variance formula?
6.Calculate the variance for each activity?

Task A((10-3)/6)^2=1.366
7. Calculate variance and standard deviation values for each path?
8. Write Variance & Standard Deviation formulas?
8. Calculating the probability of finishing the project in 33 weeks by using
z values in Table A (below) to determine probabilities for each path?
9. Calculating the probability of finishing the project in 33 weeks, how
would you interpret/explain the probability results?

1,049=1+0.049=1+0.04
go to table A
Y=1 X=0.04 find the corresponding value as .8508
Methods To
Accelerate
Project
Completion
 How you can accelerate project completion if you late?

1. Adding Resources: Brookes LawAdding

manpower for a late software project
2. Outsourcing Project Work: this frees some
resources that are assigned to a critical activity
3. Establish a core team: Whole attention to that
project
4. Fast tracking: Critical activities done in parallel
5. Reduce Project Scope: Customer satisfaction may
suffer and quality may be compromised
6. Crash: Shortening an activity
Project Crashing
 Purpose: reduce the completion time of a project to a
lesser amount of time
 Daily crash cost: How much does it cost in resources to
reduce the time by a day?
 Crash limit: What is the lower limit of daily crash cost?
 Stop crashing when
• the target completion time is reached.
• the crash cost exceeds the penalty cost.
 Project Crash
• Crash time is the shortest
required time that an activity  there is inverse ratio
can be completed.
• If cost is increased for an
activity, duration of the
activity may shorten.
• This is called the crash point.
• The crash point is the most a
project activity time can
realistically be compressed
with the available resources.
• Crash is shortening an activity.
 Study & Watch This Video
• https://www.youtube.com/watch?v=BjOLdukjAck
EXAMPLE 4
Crashing
Project Crash
Activity Cost Maximum Normal Crash
Slope Crash Day Days Cost Days Cost
A $20 1 3 50 2 70
B $40 2 6 80 4 160
C $30 1 10 60 9 90
D $25 4 11 50 7 150
E $30 2 8 100 6 160
F $30 1 5 40 4 70
G $0 0 6 70 6 70
EXAMPLE 5
Crashing
1. The project manager wants to reduce the total length of the project by 6 weeks.
2. By bringing in extra workers, he planned to crashing the durations of some tasks.
3. Which tasks are suitable for crashing?
4. Explain whether she/he will achieve her/his desired finishing date, and explain why?

Max allowed crash week!

8000-5000/(5-3)=1500 cost/per week

Max reduced week is 2
1-Project Normal Cost= ________________83,500________________?
2-Which activities can be chosen for reducing 6 weeks in total?
3-Also, how many weeks are reduced from each? Explain Why?

CRITICAL PATH
ACEFHJ

2.nd CHEAPEST

EXPENSIVE

EXPENSIVE
1.st CHEAPEST
EXPENSIVE
2.nd CHEAPEST

SOLUTION: Should be chosen from CP activities: ACEFHJ

F 3 weeks *500 =1500 USD (CHEAPEST ACTIVITES ARE FIRST)
A 2 weeks *1500 =3000 USD
H 1 week *1500 =1500 USD
TOTAL: 6000 USD for 6 weeks
4-Project Normal Cost= ________________83,500________________?

5-Project Final Crashing Cost = 83,500 + 6,000= 89,500 USD

6-Calculation details: 8k+9k+4k+24k+12k+7.5k+8k+6k+11k=89,5k USD

7-Does the project manager succeed or not (after crashing 6 weeks)?
yes, completes project before the planned time but had to pay
additional 6000 dollar to complete this project successfully!
8-What will be required additional cost to complete the project after crashing?
9-What will be final project completion time?
Additional cost = ? 89,500 - 83,500 =6000 USD
Final project completion time= ? 46 weeks – 6 weeks=40
weeks
EXAMPLE 6
Crashing
Home
work!
QUESTION:
A project manager wants to reduce the total length of the project by 4 weeks.
By bringing in extra workers, she/he planned to reducing/crashing the durations
of some tasks.
Which tasks are suitable for crashing and explain whether she/he will achieve
her/his desired finishing date, and explain why?

Activity Normal Crash Normal Crash Cost Max Reduce

Time Time Cost ($) ($) possible# of cost per
(week) (week) weeks to week
reduction
Task A 4 2 6,000 7,000 4-2=2 ?
Task B 6 3 12,000 18,000 ? ?
Task C 2 2 4,000 4,000 ? ?
Task D 3 2 42,000 56,000 ? ?
Task E 5 3 50,000 60,000 ? ?
Task F 6 3 3,000 7,500 ? ?
Task G 6 4 9,000 12,000 ? ?
Task H 3 2 4,500 6,000 ? ?
Task J 7 4 14,000 17,000 ? ?
TOTALS ? ? ? ? ?
a) Project Normal Cost= ________________________________?

a) Which activities can be chosen for reducing 4 weeks in total? Also, how many weeks are reduced from
each? Explain Why?
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________

a) Project Final Crashing Cost = ________________________________?

Calculation details: ______________________________________________________________________________________

a) Does the project manager success or not (after crashing 4 weeks)?

______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________

a) What will be required additional cost to complete the project after crashing? What will be final project
completion time?
Additional cost= ?
Final project completion time= ?
Activity Normal Crash Normal Crash Max # of Reduce
Time Time Cost ($) Cost ($) weeks to cost per
(week) (week) reduction week

Task A 2 6,000 7,000 2 500

4
Task B 6 3 12,000 18,000 3 2,000
Task C 2 2 4,000 4,000 0 0
Task D 3 2 42,000 56,000 1 14,000
Task E 5 3 50,000 60,000 2 5,000
Task F 6 3 3,000 7,500 3 1,500
Task G 6 4 9,000 12,000 2 1,500
Task H 3 2 4,500 6,000 1 1,500
Task J 7 4 14,000 17,000 3 1,000
TOTALS 42 25 144,500 187,500 17 weeks
Project Normal Cost= $144,500 (normal cost)

Which activities can be chosen for reducing 4 weeks in total? Also, how many
weeks are reduced from each? Explain Why?
Reduce 4 weeks from A(2 weeks), J(2 weeks)

Project Final Crashing Cost

= $7,000+ $12,000+$4,000+$42,000+$50,000+ $3,000+ $9,000+ $4,500+$16,000=
$147,500 (crash cost A(2), J(2))

Does the project manager success or not (after crashing 4 weeks)?

Project manager can complete the project within the 38 weeks by paying extra
$3,000 for additional resources (for the tasks A and J) from budget.

What will be required additional cost to complete the project after crashing?
What will be final project completion time?
Additional cost= $3,000 and Final project completion time= 38 weeks
Key points

 The price charged for a system does not just depend on its
estimated development costs and the profit required by the
development company. Organizational factors may mean that the
price is increased to compensate for increased risk or decreased to
gain competitive advantage.
 Software is often priced to gain a contract and the functionality of the
system is then adjusted to meet the estimated price.
 Plan-driven development is organized around a complete project
plan that defines the project activities, the planned effort, the activity
schedule and who is responsible for each activity.
Key points

 Project scheduling involves the creation of various graphical

representations of part of the project plan. Bar charts, which show
the activity duration and staffing timelines, are the most commonly
used schedule representations.
 A project milestone is a predictable outcome of an activity or set of
activities. At each milestone, a formal report of progress should be
presented to management. A deliverable is a work product that is
delivered to the project customer.