Initially, the
project scope is defined and the appropriate methods for completing the project are determined. Following this step, the
durations for the various
tasks necessary to complete the
work are listed and grouped into a
work breakdown structure. Project planning is often used to organize different areas of a project, including
project plans,
work loads and the management of teams and individuals. The logical
dependencies between tasks are defined using an
activity network diagram that enables identification of the
critical path. Project planning is inherently uncertain as it must be done before the project is actually started. Therefore, the duration of the tasks is often estimated through a weighted average of optimistic, normal, and pessimistic cases. The critical chain method adds "buffers" in the planning to anticipate potential delays in project execution.
[2] Float or slack time in the schedule can be calculated using project management software.
[3] Then the necessary
resources can be
estimated and
costs for each activity can be allocated to each resource, giving the total project cost. At this stage, the
project schedule may be optimized to achieve the appropriate balance between
resource usage and project duration to comply with the project objectives. Once established and agreed, the project schedule becomes what is known as the baseline schedule. Progress will be measured against the baseline schedule throughout the life of the project. Analyzing progress compared to the baseline schedule is known as
earned value management.
