Budgeting, timing (PERT, Gant Charts) in Project Management

Budgeting, timing (PERT, Gant Charts) in Project Management

Aurélie Piraud

aurelie.piraud@orange.fr

University of management of Łódź

I confirm that I have read about and understood the proper referencing format (e.g., the APA style). I warrant that all materials, ideas, and text are original creations of my thinking and that any portion of the report or presentation that is not my intellectual property is cited within the text  (using e.g., APA format, or equivalent),  and that these citations have been included in the text and in a reference list in the back.

Łódź, 23.03.2016

[pic 1]

Aurélie Piraud

Table of content

Management summary        

1. Project time management         

1.1. Defining Activities        

1.2. Sequencing Activities        

1.3. Resource Estimating for Activities        

1.4. Duration and Effort Estimation        

1.5. Development of the Schedule        

1.6. Schedule Controls        

1.7. Description of different tools of project time management         

1.7.1. Pert chart        

1.7.2. Gantt chart        

2. Project cost management         

2.1. Cost Estimating         

2.1.1. Inputs        

2.1.2. Outputs        

2.1.3. Our point of view        

2.2. Cost budgeting         

2.2.1. Inputs        

2.2.2. Outputs        

2.2.3. Our point of view        

2.3. Control costs        

2.3.1. Inputs        

2.3.2. Outputs         

2.3.3. Our point of view        

Conclusion        

Bibliography        

1. Book        

2. Websites        

Table of diagrams and figures

Simple work breakdown structure         

Sequencing Activities process and stages         

Basic project scheduling: Gantt         

Exemple of PERT chart         

Exemple of Gantt chart         

Estimate Costs: Inputs and Output         

Determine budget data flow diagram         

Control Costs Data Flow Diagram         

Management summary

« The Project Time Management knowledge area groups processes that determine the time frames and sequential relationships of activities.Time management requires a detailed understanding of the activities and their requirements. Controlling completion against time requires sophisticated tools for assessment and contingency planning.^[1] »

« The Project Cost Management knowledge area groups processes that determine budgetary parameters, address funding, and control spend allocation and timing. Cost planning and management is integrated with and interdependent on the activity estimation details from time management.^[2] »

Project Time Management and Project Cost Management are two important aspect of Project Management. Indeed, it will not be possible to complete well a project without these processes. Project Management addresses questions how to proceed with the project while project development adresses questions whether or not to proceed with the project. In tis report we will only focus on the project management aspect since timing and budgeting are aspects of project management.

Timing will give project a calendar to follow, different steps are required in order to obtain this calendar. We will go through all these stages: defining activity, sequencing activity, ressources estimating for activity, duration and effort estimation, development of the schedule, and schedule control. Many tools can be needed to complete all the stages but according to us, two are very important: PERT and Gantt. Indeed we will understand in this report why they are important.

Budgeting will focus on the monetary aspect of the project. Three important steeps must be respected in order to success with this process. This report will exposes these stages. First the cost estimating, then the cost budgeting and finally the cost control. In each step you will be able to see the inputs and the outputs.

1. Project time management

Project time management is all the processes that will permit to complet a project with a time constraint. It is required to determine a schedule for the project. In order to manage the timing of a project different stages are required: defining activities, sequencing activities, ressource estimating for activities, duration and effort estimation, development of the schedule and schedule control.

1.1. Defining Activities

Defining Activities is defined by PMBOK^[3] as:

        « The process of identifying the specific actions to be performed to produce the project                 deliverables.^[4] »

Indeed, when it comes to a project, there are a few levels for identifying activities. First of all, the high-level requirements are broken down into high-level tasks or deliverables

Then, based on the task granularity, the high-level tasks/deliverables are broken down into activities and presented in the form of WBS (Work Breakdown Structure) as the following diagram.[pic 2]

Simple work breakdown structure ^[5]

1.2. Sequencing Activities

Sequencing Activities is defined by PMBOK as:

        « The process of identifying and documenting relationship among the project activities.^[6]»

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