SCHEDULING GUIDE FOR PROGRAM MANAGERS October 2001 PUBLISHED BY THE DEFENSE SYSTEMS MANAGEMENT COLLEGE PRESS FORT BELVOIR, VA 22060-5565 For sale by the U.S. Government Printing Office Superintendent of Documents, Mail Stop: SSOP, Washington, DC 20302-9328 ii FOREWORD This guide provides an introduction to scheduling intended for use by government program managers and industry program of project managers and their respective staffs. It is the third version of a 1986 publication prepared by Mr. David D. Acker, Mr. J. Stanley Baumgartner, and Mr. Michael B. Patterson. A second version, published in 1994, was prepared by Mr. William W. Bahnmaier and Mr. Paul T. McMahon. This version addresses many of the topics contained in their earlier versions, especially those relating to the different types of scheduling techniques. The major difference between this and the previous versions is the treatment of scheduling as part of the acquisition process and the overall program management effort, particularly as it relates to the planning and control functions of program management. Scheduling is discussed in the context of the development of integrated master plans and schedules, the risk management process, and earned value management. This guide is not intended as a detailed treatment of scheduling techniques. Instead, it is more of a primer on the subject, addressing the importance of scheduling and the application of basic scheduling techniques. It is a compilation of information from various sources, and hopefully will serve as a starting point for those who desire to delve deeper into the various scheduling techniques. The proliferation of microcomputers has greatly enhanced the capability of managers at all levels to develop and analyze schedules. Chapter 9 provides an overview of the types of automated tools available and information on desirable features of scheduling software applications. This document reflects the efforts of many people. Mr. William W. Bahnmaier , Mr. Paul T. McMahon , Lt Col. David Bachman, USAF, and Mr. John Kelley of the DAU/DSMC faculty provided invaluable guidance and advice. Mr. Gregory T. Caruth of the DAU/ DSMC Press was very helpful in the composition of the guide. Frances M. Battle, provided desktop publishing skills. Mr. Van Kinney, Ms. Joni Forman and Mr. Tom Parry of the OSD Acquisition, Resources and Analysis staff provided comments on the draft and overall support for the project. Special recognition also goes to the Institute for Defense Analysis team of Mr. Lou Simpleman, Mr. Jim Lloyd, Mr. George Tolis, Ms. Patti Phillips, Ms. Tina Higgins, and Ms. Yolanda Prescott, who wrote, edited, and prepared the major portions of the text. Norman A. McDaniel William W. Bahnmaier Chair Editor Program Management and Leadership Program Management and Leadership Department Department iii iv CONTENTS Chapter 1 INTRODUCTION ................................................................................................. 1 1.1 Overview ........................................................................................................................ 2 1.2 Purpose of This Guide .................................................................................................. 2 1.3 Guide Content ................................................................................................................2 1.4 Other Sources of Data ................................................................................................... 2 Chapter 2 PROGRAM MANAGEMENT AND THE ACQUISITION PROCESS .......... 3 2.1 Program Management Overview ................................................................................ 3 2.2 The Evolution of Program Management ................................................................... 4 2.3 The Acquisition Process and Scheduling .................................................................. 5 2.4 Risk Management and Scheduling ............................................................................. 6 Chapter 3 PROGRAM MANAGEMENT AND SCHEDULING ....................................... 7 3.1 Program Planning and Scheduling ............................................................................. 7 3.2 Work Breakdown Structure ......................................................................................... 8 3.2.1 Integrated Master Plans/Schedules .............................................................. 10 3.3 Program Controlling and Scheduling ........................................................................ 11 3.3.1 Earned Value Management ............................................................................ 11 3.4 Schedule Preparation .................................................................................................... 13 3.4.1 Activity Definition ........................................................................................... 13 3.4.2 Activity Sequencing ......................................................................................... 14 3.4.3 Activity Duration Estimating ......................................................................... 14 3.4.4 Schedule Development ................................................................................... 15 3.4.5 Schedule Control .............................................................................................. 15 3.5 Schedule Risk ................................................................................................................. 16 3.6 Summary ......................................................................................................................... 17 Chapter 4 SCHEDULE TYPES AND THEIR EVOLUTION ............................................. 19 4.1 Introduction .................................................................................................................... 19 4.2 Schedule Types .............................................................................................................. 19 4.2.1 Gantt and Milestone Charts ............................................................................ 19 4.2.2 Network Schedules .......................................................................................... 21 4.2.3 Production Schedules...................................................................................... 23 4.3 Summary ......................................................................................................................... 24 Chapter 5 GANTT AND MILESTONE CHARTS ............................................................... 25 5.1 Description ..................................................................................................................... 25 5.2 Constructing Gantt and Milestone Charts ................................................................. 31 5.3 Gantt and Milestone Chart Advantages and Disadvantages .................................. 32 5.3.1 Advantages ....................................................................................................... 32 5.3.2 Disadvantages .................................................................................................. 32 5.4 How and When Gantt and Milestone Charts Are Employed ................................. 32 v 5.5 Summary ......................................................................................................................... 33 Chapter 6 NETWORK SCHEDULING ................................................................................ 35 6.1 Description ..................................................................................................................... 35 6.1.1 PERT .................................................................................................................. 36 6.1.2 CPM .................................................................................................................... 37 6.1.3 PDM ................................................................................................................... 38 6.2 Network Scheduling Advantages and Disadvantages ............................................ 41 6.2.1 Advantages ....................................................................................................... 41 6.2.2 Disadvantages .................................................................................................. 41 6.3 How and When To Network Schedules Are Employed ......................................... 41 6.3.1 PERT Example .................................................................................................. 42 6.3.2 CPM Example ................................................................................................... 44 6.3.3 PDM Example ................................................................................................... 46 6.4 Network Scheduling When Resources Are Limited ................................................ 49 6.5 Summary ......................................................................................................................... 51 Chapter 7 PRODUCTION SCHEDULING .......................................................................... 53 7.1 Description ..................................................................................................................... 53 7.1.1 Objective Chart ................................................................................................. 54 7.1.2 Production Plan Chart 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