Duration of product

Product 4

Develop Review Amend Approve

EFFORT

DURATION

ZhyAK I-

planned for the duration of this task to allow for ak's rate of productivity and any other tasks he may be undertaking. st and mw are both asked to deliver a quarter of a day's effort during one day. Whether they are required to work in sequence or in parallel, they are not expected to exceed the quarter of a day's effort they will charge to the project's budget or to finish any later than at the end of day 9. The approval of the product, sought from the project steering group in the final task, requires a small investment of their time: 0.1 of a day's effort. Yet how sensible is it to provide them with half a day in which to complete the task? Members of the project steering group are busy people, so there is a risk that their signatures will not be forthcoming on the afternoon of day 10 unless the project manager has been particularly effective in alerting them in advance. With this risk in mind, it may be sensible to allow the project steering group more time, perhaps a week, in which to complete approval, no matter how small the effort.

The emerging plan contains an expression of quality, an illustration of the duration and an inference of what the costs may be. Now the budget needs to become more coherent so that everyone can see when the various financial commitments will be made.

There now is sufficient information from which to compile the resource plan, the third and final component of the forecast (see Table 7.2 overleaf).

This view is essential if the project manager is to have any hope of forecasting, monitoring and controlling the project's costs. It contains the person-day effort figures from the estimating sheet, but presented over time. These figures can be summarised in several ways. If an important event, such as the end of a financial month, falls at the end of day 5, the project manager would be able to show that the effort forecast during the current month is 5.5 person-days, and 2.0 in the next. Additionally, the figures can be summarised horizontally to give the project manager the total figure to be negotiated with the resource pool managers, who will

Table 7.2 The resource plan

Day 1

Day 2

Day 3

Day 4

Day 5

Day 6

Day 7

Day 8 Day 9

Day 10

Total

PR

G.8G

G.35

G.8G

G.25

2.2G

ST

G.5G

G.5G

G.25

l.25

MW

G.6G

G.5G

G.25

l.35

AK

G.5G

G.5G

G.25

G.8G

G.25

2.3G

PSG Total

l.3G

G.lG 2.G5

G.lG G.35

G.8G

l.GG

G.lG G.35

G.8G

G.5G

G.lG G.35

G.4G 7.5G

have to provide the people. For instance, ak is not required for 100% of the time, but he must devote 2.3 days in total for which the project must budget.

What this resource plan does not show is financial information; in particular, the $100 cost of visiting the trade show is missing, but so too is anything to indicate what the eventual cost of the project will be. To calculate this, a rate is needed for each of the various people who are working on the project which, when multiplied by the number of person-days, will cost their input (see Table 7.3).

Below each person's name is a rate; for instance, pr costs $300 per day and is needed for 2.2 person-days, giving a total investment in pr of $660. The whole cost of the project is $1,900, including the non-human costs shown beneath the total human element.

Many organisations split their resources into three main types:

e human revenue;

e non-human revenue;

e capital.

The first two have been identified already, but the capital costs, such as buying a building or a piece of computer hardware for the project, have not. Thus many organisations will express the budget in terms of revenue and capital.

The plan now shows what needs to be delivered, when and how much it will cost. This is the heart of what a good project plan should be. However, to determine whether this plan is achievable, the project manager needs to know that the resources he proposes employing are available, particularly if he has particular participants in mind. Without

Table 7.3 Resource plan with financial information

Human

Day l

Day 2

Day S

Day 4

Day 5

Day e

Day 7

Day 8 Day 9 Day 10

Total

$300/d

0.80 $240

0.35 $105

0.80 $240

0.25 $75

2.20 $660

ST $200/d

0.50 $100

0.50 $100

0.25 $50

1.25 $250

MW $200/d

0.60 $120

0.50 $100

0.25 $50

1.35 $270

AK $200/d

0.50 $100

0.50 $100

0.25 $50

0.80 $160

0.25 $50

2.30 $460

$400/d

0.10 $40

0.10 $40

0.10 $40

0.10 $40

0.40 $160

Total human

1.30 $340

2.05 $465

0.35 $90

0.80 $240

1.00 $200

0.35 $115

0.80 $160

0.50 $100

0.35 $90

7.50 $1,800

Nonhuman travel

$100

$100

Total

$340

$465

$90

$240

$200

$115

$260

$100

$90

$1,900

this, the plan is little better than an aspiration. The project manager must negotiate with the resource pool managers who nominally "own" these people to secure them for the period indicated by the project plan. It follows, therefore, that the resource pool managers also need a plan, showing which of their resources are engaged in what type of work, where, to what extent and for how long. An example is shown in Figure 7.9 overleaf.

Here two people, resources 1 and 2, are being used across five projects. The top half of the figure shows when each person is due to be engaged in each of the various projects; the bottom half shows the person-days commitment. On the basis of the timeline at the top, resource 2 appears to have two projects to work on during week 2, which, without knowledge of the relative effort needed for each, might be thought achievable. Indeed, without the bottom half of the plan, resource 2 might be encouraged by a resource pool manager to "do his best" to carry out projects 4 and 5 at the same time. The bottom half of the plan, however, shows that resource 2 is required to put in seven person-days' effort in five working days.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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