9.2 Estimate Activity Resources PDF

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9.2 ESTIMATE ACTIVITY RESOURCES “Estimate Activity Resources is the process of estimating team resources and the type and quantities of materials, equipment, and supplies necessary to perform project work. The key benefit of this process is that it identifies the type, quantity, and characteristics of resources required to complete the project. This process is performed periodically throughout the project as needed. The Estimate Activity Resources process is closely coordinated with other processes, such as the Estimate Costs process. For example: > A construction project team will need to be familiar with local building codes. Such knowledge is often readily available from local sellers. If the internal labor pool lacks experience with unusual or specialized construction techniques, the additional cost for a consultant may be the most effective way to secure knowledge of the local building codes. > An automotive design team will need to be familiar with the latest automated assembly techniques. The requisite knowledge could be obtained by hiring a consultant, by sending a designer to a seminar on robotics, or by including someone from manufacturing as a member of the project team.” (PMBOK Guide p320)

9.2.1 ESTIMATE ACTIVITY RESOURCES: INPUTS Input #1 PROJECT MANAGEMENT PLAN Project management plan components include: > Resource management plan. Page 1 of 6

The resource management plan defines the approach to identify the different resources needed for the project. It also defines the methods to quantify the resources needed for each activity and aggregates this information. > Scope baseline. The scope baseline identifies the project and product scope necessary to meet the project objectives. The scope drives the needs for both team and physical resources. Input #2 PROJECT DOCUMENTS Project documents that can be considered as inputs for this process include: > Activity attributes. If you remember back to the WBS, when we wanted to store extra information for Work Packages and Planning Packages, we stored that in the WBS Dictionary. Then we created the Activity List as an add-on chart to the WBS and decomposed Work Packages into the activities needed to deliver them. Please remember that you can only decompose Work Packages to activities. And once we worked out the activities, we needed to store extra information about them, and we put that in the Activity Attributes. So the Activity Attributes is like the Activity List Dictionary. Examples of attributes include the resource requirements, imposed dates, activity location, assumptions, and constraints. > Activity list. Identifies the activities that will need resources. > Assumption log. The assumption log may have information on productivity factors, availability, cost estimates, and approaches to work that will influence the nature and number of team and physical resources. > Cost estimates. These may impact resource selection from the quantity and skill level perspectives. There is no point in looking for a senior engineer, if you have estimated only enough for a junior engineer. > Resource calendars. These show the working days, shifts, start and end of normal business hours, weekends, and public holidays when each specific resource is available or has been assigned to other work. In the case of personnel, the calendar should also show when personnel are unavailable due to vacation or training. Resource calendars also specify when, and for how long, identified team and physical resources will be available during the project. This information may be at the activity or project level and may also include attributes such as, resource experience and/or skill level, as well as various geographical locations. > Risk register. The risk register describes the individual risks that can impact resource selection and availability.

Input #3 ENTERPRISE ENVIRONMENTAL FACTORS

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The enterprise environmental factors that can influence the Estimate Activity Resources process include: > Resource location, > Resource availability, > Team resource skills, > Organizational culture, > Published estimating data, and > Marketplace conditions.

Input #4 ORGANIZATIONAL PROCESS ASSETS The organizational process assets that can influence the Estimate Activity Resources process include: > Policies and procedures regarding staffing, > Policies and procedures relating to supplies and equipment, and > Historical information regarding types of resources used for similar work on previous projects.

ESTIMATE ACTIVITY RESOURCES: TOOLS AND TECHNIQUES T&T #1 EXPERT JUDGMENT Expertise should be considered from individuals or groups with specialized knowledge or training in team and physical resource planning and estimating.

T&T #2 BOTTOM-UP ESTIMATING Team and physical resources are estimated at the activity level and then aggregated to develop the estimates for work packages, control accounts, and summary project levels. This is exactly the same way we aggregate or “roll-up” cost estimates and time estimates. In the exam, “bottom-up” estimating may be called “engineering breakdown” or “grass roots”.

T&T #3 ANALOGOUS ESTIMATING Analogous estimating uses information regarding resources from a previous similar project as the basis for estimating a future project. It is used as quick estimating method and can be used when the project manager can only identify a few top levels of the WBS. We coved this in Cost Estimating and Time Estimating. Analogous estimating will not work unless the two projects are truly similar. Page 3 of 6

T&T #4 PARAMETRIC ESTIMATING Parametric estimating uses an algorithm or a statistical relationship between historical data and other variables to calculate resource quantities needed for an activity, based on historical data and project parameters. For example, if an activity needs 300 metres of wall built in 5 days, and an average bricklayer can lay 30 meters per day; this activity will require two bricklayers in order to finish on time. This technique can produce higher or lower levels of accuracy depending on the sophistication and underlying data built into the model. 325 T&T #5 DATA ANALYSIS A data analysis technique used in this process includes Alternatives Analysis, which can be used to evaluate identified options in order to select the options or approaches to use to the best solution to perform the project activities, within the defined constraints. Many activities have multiple options for accomplishment. They include using various levels of resource capability or skills, different sizes or types of machines, different tools (manual versus automated), and make-rent-or-buy decisions regarding the resources.

T&T #6 PROJECT MANAGEMENT INFORMATION SYSTEM (PMIS) Project management information systems can include resource management software that can help plan, organize, and manage resource pools and develop resource estimates. Depending on the sophistication of the software, resource breakdown structures, resource availability, resource rates, and various resource calendars can be defined to assist in optimizing resource utilization.

T&T #7 MEETINGS The project manager may hold planning meetings with functional managers to estimate the resources needed per activity, level of effort (LoE), skill level of the team resources, and the quantity of the materials needed. In case you have forgotten the difference between level of effort and duration. Duration means calendar difference between an activity start and end, whereas level of effort is the actual number of work units used. If an activity requires one day on Monday, and one day on Friday, the level of effort is 2 days, but the duration is five days. Participants at these meetings may include the project manager, the project sponsor, selected project team members, selected stakeholders, and others as needed.

ESTIMATE ACTIVITY RESOURCES: OUTPUTS Output #1 RESOURCE REQUIREMENTS Page 4 of 6

Resource requirements identify the types and quantities of resources required for each work package or activity in a work package and can be aggregated to determine the estimated resources for each work package, each WBS branch, and the project as a whole. The amount of detail and the level of specificity of the resource requirement descriptions can vary by application area. The resource requirements’ documentation can include assumptions that were made in determining which types of resources are applied, their availability, and what quantities are needed. Output #2 BASIS OF ESTIMATES The amount and type of additional details supporting the resource estimate vary by application area. Regardless of the level of detail, the supporting documentation should provide a clear and complete understanding of how the resource estimate was derived. As I have said before, you need to be able to fully support any estimates and assumptions you make on the project. This is the sort of information that senior managers will demand if a project goes bad, or if it is audited. The biggest mistake is to rely on your memory because you will probably misremember, and even if you DO remember, you will need to prove it. Supporting detail for resource estimates may include: > Method used to develop the estimate, > Resources used to develop the estimate (such as information from previous similar projects), > Assumptions associated with the estimate, > Known constraints, > Range of estimates, > Confidence level of the estimate, and > Documentation of identified risks influencing the estimate. Output #3 RESOURCE BREAKDOWN STRUCTURE The resource breakdown structure is a hierarchical representation of resources by category and type (see Figure 9-7 for example). Examples of resource categories include labor, material, equipment, and supplies. Resource types may include the skill level, grade level, required certifications, or other information as appropriate to the project. In Plan Resource Management, the resource breakdown structure was used to guide the categorization for the project. In this process it is a completed document that will be used to acquire and monitor resources.

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Output #4 PROJECT DOCUMENTS UPDATES Project documents that may be updated as a result of carrying out this process include: > Activity attributes. The activity attributes are updated with the resource requirements. > Assumption log. The assumption log is updated with assumptions regarding the types and quantities of resources required. Additionally, any resource constraints are entered including collective bargaining agreements, continuous hours of operation, planned leave, etc. > Lessons learned register. The lessons learned register can be updated with techniques that were efficient and effective in developing resource estimates, and information on those techniques that were not efficient or effective. That brings us to the end of Estimate Activity Resources The next lesson is “9.3 Acquire Resources” Please read the corresponding chapter in the PMBOK Guide before watching the video.

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