Methods for Charting Project Relationships

An organization chart shows you, in an instant, all the relationships within a company. It allows you to clearly see the layout of people and departments for an entire organization.

An organization chart is any graphic manifestation of project reporting relationships. It gives you the big picture of how your project fits into the overall activity of the organization. It shows the relationships:

• between resources of the project management system
• of formal authority between groups and individuals.

Organization charts can be formal or informal, highly detailed or broadly framed. The place of individuals within boxes on the organization chart shows broad working relationships. The connecting lines between boxes indicate formal chains of command and lines of communication between individuals.

Organization charts vary dramatically from one organization to another. They do, however, have some basic elements in common. For example:

• All members of the project are identified, including stakeholders.
• Data can be formal, informal, detailed, or general.
• Direct relationships between people are shown with a solid line.
• A dotted line indicates an indirect relationship, or a relationship that has not been clearly defined.

Organization charts offer project managers several important benefits. For starters, they show you the overall framework of the organization and indicate where project members fit into the organization. They also reveal the basic relationships between project team members, and they explain formal lines of authority (reporting relationships).

There are also drawbacks to using a traditional organization chart. For example, a traditional organization chart:

• doesn't show the nature and limits of the activities required to attain project objectives
• doesn't show the reciprocal relationships between people, which often occur within a project
• may not accurately reflect the structure throughout the project because it is often out of date very quickly
• may confuse people, as the pyramidal structure may portray a false sense of status and prestige.

Charts vary because organizations and projects vary. There are specific organization charts that give you added information. These charts help you as you plan. One such plan is an Organizational Breakdown Structure Chart (OBS)

An OBS identifies the roles and responsibilities of the individual as well as those of the collective project unit. And OBS is a concise description of the organizational interfaces. It illustrates:

• who the project participants are, the extent of their involvement, and their authority
• when decisions should be made or activities performed
• who has authority when team members share common work
• work packages or tasks necessary for project success.

And OBS is time consuming to prepare, but gives you more valuable information than a standard organizational chart.

A standard organization chart or Organizational Breakdown Structure Chart provides you with concise information concerning responsibility relationships within an organization. Both types of charts provide a useful tool of reference for everyone involved in the project.

Using Control Charts to Identify Product Process Problems

Project managers use control charts to spot production process problems before they spin out of control. On a control chart, production data is plotted and analyzed for specific trends. Control charts are used more as a preventive measure rather than for detection or rejection of quality problems. This is extremely useful since it is cheaper to prevent mistakes than to correct them.

Control charts compare quality, cost, and time issues to an established norm. They indicate permissible behavior so that aberrations are easy to identify. Analysis of control charts determines whether a process is stable or whether corrective action needs to be taken.

Control charts can also help determine sources of variation. Variation is the range the observations fall around the process mean or average. Variation is different for every product or process since each has different characteristics.

• Common cause variation - is random variation common to any process. This type of variation requires management decisions to change the basic processes. Common cause variation is caused by chance and requires no corrections.
• Special cause variation - happens at the operational, or production, level. This variation is indicated by exceeding a control limit or a persistent trend towards the limit. Special causes exist when the variation in a process exceeds allowable standards. Corrective action is then required.

Variation is also categorized by time.

• Short-term variation - can be caused by changes in suppliers or workers' performance.
• Long-term variation - occurs in cases of tool wear, environmental changes, or increased administrative control.

There are two types of control charts classified by the type of data they collect. Variable control charts are used with continuous data in which all numerical values are possible. Variable charts are useful when measurements from a process are variable such as diameters, electrical output, or chemical concentrations.

Attribute control charts are used with discrete data, or when data can only have a certain value, or range, such as "1" for "yes" and "2" for "no" in a conformance test. Attribute charts analyze data such as conforming/non-conforming, pass/fail, go/no go, or yes/no measurements.

The use of these various charts depends on what type of quality measurement is desired. The most common type is the X bar chart, or process average chart.

Limits on a control chart are often called the three-sigma limit because most companies operate within the 3 sigma limit. In a normal distribution, 99.73 percent of the measurements lie within X bar ± 3s, or within the UCL and LCL. Some companies now employ a six-sigma limit in their quality control. This allows only 2 defects per billion. This exactness in quality is so expensive that it is only possible over very large production runs.

The high figure indicates a high degree of variation because more of the observations fall away from the average. Therefore, the taller the curve shape, or the bell curve, the lower the standard deviation will be.

Control charts can be interpreted in many ways depending on their patterns and line shifts. Experience is the greatest aid to understanding a chart. Control charts tell when to look for trouble but not where the cause lies. Control charts also indicate when to leave a process alone. Variation can be unnecessarily introduced by an operator trying to fine-tune a machine to near perfection, when the control chart indicates the operator could leave the process alone. Charts are interpreted by runs, trends, periodicity, and hugging.

Quality control inspectors also use the Rule of Seven to determine if a process is out of control. If seven or more consecutive observations are found to be on one side of the mean, then it is out of control. The reason it is said to be out of control is that there is only a 1.56 percent statistical chance of random variation that the run of seven would fall on one side of the mean.

One of the most useful quality control tasks is ensuring a process is in control, by identifying the existence of a problem. Control charts are a valuable tool in determining whether or not a project or process is in control. To be able to read control charts, you need to be familiar with the different control chart types and their components, and the various methods of interpretation.

Reporting Project Progress and Performance

Project stakeholders often require information about how resources are being used to achieve project objectives. This information is provided through performance reports.

Performance reports summarize project activity progression by comparing your project's performance to its schedule baseline.

Performance reports come in many shapes and sizes. From a time management perspective, the obvious reporting format to use is a graphical representation of project performance. The four most frequently used graphical performance reporting formats are the: Gantt chart, S-curve, histogram, and table.

• Gantt chart - A Gantt chart displays schedule-related data. The dates are shown across the top of the chart to illustrate the time line.
• S-curve - An S-curve displays cumulative costs, labor hours, or other quantities plotted against time.
• Histogram - A histogram is a bar graph of a frequency distribution. The bar width represents the division of each variable into task duration. The height is relative to the number of resources required.
• Table - A table displays semi-processed numerical data for a minimum of two variables. Data is relevant to an individual project's needs.

Each company should determine which format works best for projects, in terms of time and information required. Therefore, the format one company uses may not be an appropriate format for another company.
A reliable reporting system helps to ensure that projects progress according to plan. It can help determine when corrective action is necessary. The reporting system provides:

• regular, accurate status updates
• concise, easily understandable information
• potential problem forecasts.

Performance reports can be presented in various ways, depending on the intended purpose, the content to be included, and the frequency required. Four types of reports that vary in detail and timelines are: current, cumulative, exception, and green-yellow-red reports.

Current reports
Current reports document progress solely on those activities scheduled for work during the reporting period. Reports show activity highlights and any variances from a project's plan. Follow-up on current reports should provide project details, including reasons for variances and a recommended corrective action plan.

Cumulative reports
Cumulative reports examine the project's history—from start-up to the end of the current reporting period. Cumulative reports display trends in project activities that, over several periods may exhibit improvements or chronic problems.

Exception reports
Exception reports are high-level summary reports submitted to senior management. Sometimes these reports are followed by an additional report if more detail is required.

Green-yellow-red reports
Green, yellow, and red reports are very simplified versions of performance reports. These reports get the intended point across with a minimum amount of reading required.

• Green reports - Say that everything is going according to project's plan.
• Yellow reports - reveal a schedule slippage with a corrective action plan.
• Red reports - indicate a project is out of control with no action plan in place.

AC Technology is a computer company that has just reached the half-way point in its newest project. It is designing an operating system that includes its own anti-virus component. Using a cumulative reporting system allows the team to look back and see that the first quarter showed a slight schedule slippage. A corrective action plan was set up to try to offset this problem. Now, the project has reached the end of the second quarter and the reports are showing that this trend has continued. AC Technology must look very seriously at its current corrective action plan and make adjustments to bring this project back on track.
Comparing project performance to the schedule baseline will be easier once your company selects the most appropriate performance reporting format and method of presentation to meet its needs.

Presenting Schedule Information Graphically

Everyone follows a schedule of some sort—a meal schedule, an exercise schedule, or a meeting schedule. In the area of project management, a schedule includes a list of project activities along with the planned start and expected finish dates for each part of the activities. This schedule may be presented in summary form or in detail using either a tabular or graphical format.

The tabular format presents the information in a table. The tabular format is very rarely used, as the information it presents is hard to read and understand.

The graphical format presents the information in the form of a diagram or chart. It allows the project manager to visualize the schedule.

When it comes to presenting schedule information graphically, you have a number of choices. The most common graphical presentation formats are the project network diagram (PND), Gantt chart, milestone chart, and time-scaled network diagram.

A project network diagram (PND) is a schematic display of the project's activities and the logical relationship between them. Each planned activity is numbered on the PND. For example, the number 1 could be Activity 1—the architecture and design of the project. Number 2 could then be the foundation work.

A Gantt or bar chart is the most convenient, commonly used, and easiest-to-understand format of data presentation for project planning, resource scheduling, and status reporting. It shows start and finish dates as well as the expected durations for each project activity.

A milestone chart is a summary-level schedule that identifies the major activities or deliverables of the project. It can become the skeleton for the master schedule. A milestone typically marks the end of an event or the completion of an activity.

A time-scaled network diagram is a cross between a Gantt chart and a PND. It displays the project logic, activity durations, and schedule information. The positioning and length of the activity arrow represent its duration.

Remember, there are a number of formats that your company may choose from when creating a project schedule. Determine the individual needs of your project and the key stakeholders, then make your choice based on those needs.

Three Ways to Diagram Projects

Before leaving on a trip you gas up the car and then check the road map for the best route. Project managers also have road maps that they can follow to choose the best route for their projects.

The project network diagram, also known as a project manager's road map, is one of the inputs to schedule development. It is a schematic display of the project's activities and their logical relationships or dependencies. It may be produced manually or on a computer, and may include full project details, or have one or more summary activities. The diagram should be accompanied by a summary narrative that describes the sequencing approach.

Project managers use three principal types of network diagrams: precedence diagramming method (PDM), arrow diagramming method (ADM), and conditional diagramming method (CDM).

Precedence diagramming method (PDM)
The precedence diagramming method (PDM) uses nodes to represent activities. Arrows join the nodes together and indicate the dependencies between activities. This technique is also known as activity-on-node (AON) and is the method most widely used by project management software.

The precedence diagramming method is based on four types of dependencies: finsh-to-start, finish-to-finish, start-to-start, and start-to-finish. The first activity in a dependency relationship is referred to as the "from" activity. The second is referred to as the "to" activity.

• In a finish-to-start dependency the "from" activity must finish before the "to" activity can start. For example, on a courseware development project, you must finish the scripting before the graphics can be developed.
• In a finish-to-finish dependency, the "from" activity must finish before the "to" activity can finish. For example, car body and engine production can be started at the same time. The last step in the engine production phase is to install it in the body. Therefore, the body must be finished before the engine can be finished.
• In a start-to-start dependency, the "from" activity must start before the "to" activity can start. For example, on a telemarketing project the compilation of phone lists must be started before people can actually be called.
• Finally, in a start-to-finish dependency, the "from" activity must start before the "to" activity can finish. For example, if your car refuses to start, you may need to jump start the battery with booster cables. The engine must start before you can finish jump starting the car.

In the precedence diagramming method, finish-to-start is the most commonly used type of dependency.

Arrow diagramming method (ADM)
The arrow diagramming method (ADM) uses arrows to represent the activities and connects them at nodes to show dependencies. This technique is also known as activity-on-arrow (AOA). Although less common than the PDM, it is still the technique of choice in some application areas.

In an ADM, "dummy activities" are used to show logical relationships when logical relationships cannot be completely or correctly described with regular activity arrows. A dummy activity uses no resources, has a duration of zero, and is represented by a dashed arrow.

Conditional diagramming method (CDM)
The conditional diagramming method (CDM) allows you to diagram activities that must be repeated more than once. This technique also allows you to diagram non-sequential activities. The two most widely used techniques for creating a CDM are graphical evaluation review technique (GERT) and system dynamics.

Activities that must be repeated more than once are known as loops and can affect the project schedule if their durations are not calculated properly. An example of a loop may be the testing component of a project that needs to be repeated more than once.

When your project has an activity that only occurs under the right conditions, you will need to add conditional branches to the schedule. For example, a conditional branch may be added following an inspection activity. This would indicate that if errors are detected in the product, changes to the product's design may be needed.

Project managers use standardized network diagrams to create project network diagrams faster than they could by drawing them out using a pen and paper. These networks can include an entire project or only a portion of it. Portions of a network are commonly referred to as subnets or fragnets. Subnets are especially useful when a project has several identical or near identical features. Examples of subnets include constructing floors in a high-rise office building, or doing clinical trials on a pharmaceutical project.

Project network diagrams can be used as a guide for your project team and to help your management team better monitor project progress. This ultimately increases your chances of executing a successful project.

Three IT Project Management Tools

Every trade has its tools. As an IT project manager, what do you consider to be your "tools of the trade?"

There are three tools used by IT project managers and team members that are key to the administration of a project. These three tools are project planning software, project estimating software, and presentation tools.

1. Project planning software
Project planning software helps your team define and manage the scope of the project. Many versions of planning software are presently available for project management. You should shop around to determine the best product for the various projects your company undertakes.

Planning software is a valuable tool for creating and managing schedules like Gantt or Pert-type charts and for facilitating communication between all parties involved in the project.

2. Project estimating software
Project estimating software is useful for compiling data, producing charts, managing resources and costs, and performing analyses. Spreadsheets are a common example of estimating software.

3. Presentation tools
Presentation tools help you visually deliver progress reports, produce user manuals, and prepare final reports. The specific needs of your project will help you determine the estimating software and presentation tool you will need.

By determining your project needs ahead of time, you will be able to identify key IT project management tools that will help you and your team effectively complete your next project.