UBC Award of Achievement in Project Management with Microsoft Project >

4. Specifying and Estimating Deliverables
Friday, Oct  14, 2011

See detailed agenda.

Projects deliver results to help clients reach objectives. Deliverables are the results produced by projects and tasks. Deliverables include systems, product designs, facilities, equipment, hardware, networks, new methods and procedures along with the associated documentation, training and support.

The fourth session covers key role that deliverables play in the planning process. Your Statement of Work defining the deliverables, determines what makes each project unique. Each deliverable requires a finite set of tasks to produce based on the method of delivery. Selecting a method of delivery for each deliverable influences schedule, cost and risk. The method of delivery determines skill sets and resource types to produce that deliverable.

Specification of deliverables starts during project initiation.  These specifications are refined during the Requirements  and the Design phases of a project. Each deliverable can be broken down by a bill of materials. Specification methods can be written, pictures, sketches, tabular, mathematical, graphical, schematics and diagrams.

Understanding the deliverables provides the basis for estimating and change control. Deliverables determine the size of your project. Increasing scope of deliverables will increase your budget and schedule. Specifications define what is to be delivered and provide the foundation for change control. 

Creating specifications to define the deliverables from projects, phases and deliverables communicates what the project has to accomplish and establishes agreement between the client and the project team.

Estimating project effort and budget for a project is the biggest challenge a project manager faces . Before clients commit to a project they want to know how long a project will take and how much the project will cost. Often they want this information within days yet many organizations have no organized methodology for preparing estimates. The accuracy of the estimate depends upon many factors. You need to know the scope of the project. As the project progresses and the scope definition improves you should be able to produce more accurate estimates.

How long a project takes to complete depends upon size of the project, the quality of the project planning, and the performance of the project team. Your deliverables determine the size of your project. Translating scope into realistic estimates requires historical records of previous projects. Projects vary in size so estimating requires a method to extrapolate between projects. The schedule depends upon the work effort and the size of your project team. You can reduce the schedule by increasing the size of the project team.

Your estimate establishes expectations with your client. They plan other business activities based on when the project will be delivered. Underestimating work effort, schedule and budget has significant downstream impact.

The project budget built up from labor, equipment and materials. Labor and equipment costs are the most challenging to estimate.

Labor costs depend upon work effort and cost per unit hour. The work effort depends upon the size of the activities to be completed, the method chosen to complete the work and the performance of the resources performing the work. Higher performance reduces the work required. Performance depends upon the experience of the team, the methods chosen and level of preparation for the task.

Once you know the work effort for a task you can compute the cost with the formula:

Cost = Work * cost rate per hour.

A key step in estimating is to quantify the project size compared to other projects of a similar nature. Accurate project records require creation and update of project plans for these projects. Estimating helped if these projects have a standard work breakdown structure with a detailed specification of the deliverables. As well you need to know how to extrapolate between projects

Participants will learn to:

1. Specify deliverables to achieve client objectives
2. Decompose deliverables into components to create a bill of materials.
3. Select delivery method for each component.
4. Create an assembly sequence to assemble the project deliverables.
5. Generate a project schedule based on deliverables.
6. Understand the importance of strategy in ensuring a successful project.
7. Measure project size and performance with parameters
8. Overcome the challenges of estimating
9. Apply industry standard estimating methods
10. Estimate effort and cost by phase for each deliverable.
11. Calibrate industry methods for your organization.
12. Develop estimating spreadsheets rules of thumb

Click to register for this course

Click to register for this course

email Brian Mullen with your questions

Updated: July 6, 2011.

Questions and Answers for this session

1. When I am entering duration estimates for my deliverables into the macros, should I do this using an estimated project calendar or with pertaining estimated shift calendar?

Microsoft uses the project calendar for tasks and the resource calendars to schedule work assignments. The task duration is the longest assignment duration for that task.

2. If I have 2 deliverables (Nouns) that use the same method of delivery (Verbs) but, have different resources; should I enter that verb twice, and enter the respective resources into their respective columns. Or, should I only enter one column and then enter the respective resources into MS Project.

Choose whichever alternative you find most effective. Entering the resources in Microsoft Project gives you much more flexibility.

3. What column do I add or use to enter costs for “COST” resources, I have forgotten and can’t figure out how to do this. I have somehow deleted or hid that column in my original assignments?

Enter the cost resources using the task form with the 'Resource Cost' detailed format. If you are using Project 2003 or earlier then you must enter 0 units prior to entering the cost. In Project 2007 setup the resource as a 'cost' resource.

4. Should I add known material resources to the macros?

You can enter multiple resources including material resources in the spreadsheet by separating the resource names with commas. Later you can adjust the resources to be material resources. If you attach your project to a resource pool the resource type will be copied from the resource pool.

5. Am I able to put a 0 duration in for milestones in the macros. Will MS Project still understand it?

Yes, zero duration tasks are flagged as milestones.

How many currently accepted Project Management Methodologies exist?

Many project management methodologies exist. Each large organization will evolve their own methodology which may borrow components from other methodologies and incorporates things that work well for that organization.

Is what we are learning applied throughout the industries and world, or do different industries rely on differing methods?

Some Project Management principles apply across all industries but each industry has its own challenges and methods. Some objectives occur in many projects including lower cost, faster delivery, better quality but each project has specific objectives. Objectives, deliverables, risks, strategies and tasks may be specific to projects within industries.

Sales, constantly overestimates the ability of the company to deliver the product in the timeline as sold. Is there anything the PM can do to gain more time without blowing the budget and without coming off as negative or pessimistic? Or is the only thing to do is simply run through the plan with the alternatives and options you can conceive of to see if you can make it work. At what point does one simply acknowledge, "this isn't going to work as sold". My guess to the answer is, when you are ready to tell "them" go in with the best plan you have that is the least over budget and time.

Long term if companies persist in over promising and under delivering they will alienate customers and find it harder to market their product. Marketing costs increase, market shares decline. Poorly estimated projects lose money and may fail to deliver. If a company does not constantly improve its performance, other competitors will overtake it. If you create a plan that doesn't work then get creative and develop alternative strategies. By creating a detailed plan you will find ways to shorten the schedule. But at the same time raise warning flags with management that this project is very 'tight' and will need extra care.

In our company and in another Project Management book I'm reading, the term Work Breakdown Structure or WBS is used to describe tasks that need to be done. What is the difference between a WBS and an Assembly Sequence or are they the same thing?

The WBS organizes the task to be done and may include deliverable structure as a guideline at higher levels. For example if you are building an aircraft then the at some point the WBS will include peer categories such as wings, engines, undercarriage, navigation systems, The difference between a WBS and an assembly sequence is that the Assembly sequence introduces the concept of sequence in time between components and assemblies.

Is it possible to import MS-PMA GANTT or other PMA charts into Power Point and have them animated for presentation? example: while a narrative is under way, can I include say the GANTT and have a video playing in one part of the screen while showing where on the chart we are referring to, as the video progresses?

Microsoft Project supplies the raw data. You need to supply the software and the programming rules to create the video animation.

Would it be possible to set up a wire-frame model of where the project should be for each phase, and use it with video or other means, to compare the actual progress, (with what has been scheduled)? Maybe as an overlay for building presentations to show investors or other analysts what is happening, or possibly for tactical improvement scenarios used to improve overall or unit performance.

Again what software will you use to do this and can it access Project to extract the progress information. You need to tie the sections in the wire-frame to specific tasks in project.

Would it be possible, to set up an auto-order system with MS-PMA, to self-order items/materials required from specific suppliers, (using their associated web sites), as the project moves forward? The required parts or materials would have to be automatically adjusted for changes in required numbers or even types, sizes, etc. by the program, and the a confirmation process would be implemented just prior to delivery dates and this could also assist the suppliers in preparing for changes to your requirements as soon as they manifest on the material lists, etc.. This could be an on going daily update event as the project is underway.

To do this you may need some form of MRP (materials requirements planning) software. Project does not contain enough information.

Is there a way to track asset depreciation, considering longer-term projects?

How do you allocate asset depreciation as an expense to tasks? Once you decide how to do this you could enter asset depreciation as an expense against each task.

Can one use MS Project for scenario planning such as best alternative choice?

You can model different alternatives with Microsoft Project but you still must select the best choice yourself.

Can you discuss whether there are any backward compatibility issues between the various MS Project versions?

Yes older versions of Project cannot read newer versions files. Also newer versions cannot read versions that are more than one generation old. Usually you can read the previous version files into the current version where you can save them in the new format.

Can competitive products' data be imported to MS Project?

To import data from other applications including competitive project planning packages you must create the data in one of the following formats that Microsoft Project can import including MPX, Excel, Database, Access, CSV (comma delimited) and Text (tab delimited). Project 2002 can import and export project data in XML format.

Do you always start with an assembly sequence diagram when planning a project?

Most projects that involve contractual arrangements include a statement of work defining the high-level deliverables. Use an assembly sequence to think about what the deliverables should be. Use an assembly sequence to ensure you identify all the deliverables in a statement of work. Work backwards from the final result to ensure only required components are included.

How can you have competing objectives in a single project? 

There are many competing objectives in every project. A simple example is 'finish the project on-time' and 'finish the project on-budget'. These objectives compete in the sense you could easily achieve one if you were not constrained by the other. If budget was not a constraint then you could increase the team size to speed delivery and meet the schedule. Rushing a project creates waste and increases the budget. If you have a more relaxed schedule you can make sure you complete each step properly to reduce the amount of waste. If schedule was not a constraint then you could be more careful with your budget.

How can you communicate that a deliverable has been reached to those areas that does not have to deal with that specific deliverable? Is that needed? Just the most important ones?

Use email and a project web site.

How often should be given an update to the Executive staff about project's performance?

Report progress weekly via email or a web site. This allows you to communicate to a broad audience efficiently and effectively. You may wish to direct specific items and reminders via email.

Hold monthly progress review meetings with management and the client. Reviews with senior executives may be quarterly. Here you will be reporting your project with many other project managers so you may get limited time for your project 5 - 15 minutes.

What defines a limited and clear deliverable?

Every deliverable has its own set of specifications. For example, information systems may have inputs, reports, interfaces, programs, algorithms, databases, tables, keys, attributes, relationships, domains, values. You may choose to define your fields and attributes in a data repository. If you are defining an object class, then you must define the properties, methods and events associated with this class.

How many deliverables per phase in the project?

Many (hundreds if you include components) deliverables per phase.

Is it possible to redefine properly an assemble sequence based on deliverables' risk? Let's say I have to deliver a clean car and my risk on clean water is 50%, sponge failure is 90% and wax decomposed is 10%

No, but you may be able to use the assembly sequence to create a probability tree for the chance of a failure occurring.