As a PM, you’re tasked with getting the job done on time and within budget. So, how do you assess whether things are on the right track? One of the most popular approaches is to calculate BCWP. In this article, we’ll explain what that is, why BCWP is important, and how you can calculate BCWP to track project progress.

What Is BCWP in Project Management?

BCWP stands for budgeted cost of work performed. Also known as Earned Value (EV), BCWP determines how much of the project budget should have been spent based on the amount of work that’s been done to date. This helps project managers determine whether a project is running over or under budget.

While BCWP can be calculated while a project’s in progress or once it’s complete, it offers project managers the most value when the calculation is done periodically during the project. Then if the project is running over budget, the project manager can proactively take corrective measures to cut costs so the project still remains within budget.

Key Metrics in Earned Value Management

Earned value management is a PM methodology that’s used to measure project progress against a baseline plan. To do this, it relies on the following key metrics:

• Planned Value (PV) – Also referred to as budgeted cost of work scheduled (BCWS), planned value is the amount you budgeted for work scheduled up to a certain date.
• Earned Value (EV) – Earned value or BCWP is the amount you should have spent based on the percentage of work that’s already been performed. So, if you completed 25% of the work in a $100,000 project, the BCWP would be $25,000.
• Actual Cost – This is the cost of the work that’s been completed to date. It’s also known as actual cost of work performed or ACWP.
• Cost Variance – Cost variance is calculated by subtracting the work’s actual cost from the budgeted cost of work performed (BCWP). This calculation is used to determine how much a project is over or under budget.
• Cost Performance Index – This metric expresses cost variance as a percentage. To get this calculation, you simply divide the budgeted cost of work performed (BCWP) by the actual cost of work performed (ACWP).
• Schedule Variance – Schedule variance indicates whether a project is behind or ahead of schedule. It’s calculated by subtracting budgeted cost of work scheduled (BCWS) from budgeted cost of work performed (BCWP).
• Schedule Variance Index – This metric is used to express schedule variance as a percentage. To calculate it, you simply divide budgeted cost of work performed (BCWP) by budgeted cost of work scheduled (BCWS).

An Example of BCWP and Earned Value Metrics

To better understand how these metrics help PMs evaluate project performance, let’s take a look at an example.

Say, for instance, you have a project that’s scheduled to be completed in 6 months at a cost of $100,000. In your project management plan, you’ve determined that the amount of money you’ll spend and the amount of work your team will get done is consistent, month after month.

At this point, it’s the 3-month mark, and 40% of the work has been completed.

• You’re at the halfway point of the project, and you budgeted $50,000 for work up to this date. So, $50,000 is the budgeted cost of work scheduled (BCWS).
  BCWS = % Complete (Planned) x Task Budget
• However, the team’s only completed 40% of the project, so the budgeted cost of the work performed is $40,000.
  BCWP = % Complete (Actual) x Task Budget
• Let’s say that your costs for the work performed by the halfway point are only $35,000. This figure would be the actual cost, also known as the actual cost of work performed (ACWP).
• You’ve completed $40,000 worth of work, but it only cost you $35,000, so your cost variance is $5,000.
  Cost Variance = BCWP – ACWP
• Your cost performance index is 1.14, meaning that you’ve used 14% less of your budget than expected. When the CPI is below 1, the project has exceeded its budget.
  Cost Performance Index = BCWP ÷ ACWP
• You budgeted $50,000 for the project up to this point but your team only performed the equivalent of $40,000 worth of work. Your schedule variance is $-10,000. This is a negative number, which means your project’s behind schedule.
  Schedule Variance = BCWP – BCWS
• You planned to have 50% of the project completed by now, but in reality, only 40% is finished, so your schedule variance index is .8, meaning your team’s only completed 80% of the work it should have finished by this point.
  Schedule Variance Index = BCWP ÷ BCWS

• One final helpful formula is Estimate at Completion (EAC). EAC lets you determine the expected total cost of your project based on the most recent figures. To obtain it, you’d simply divide your entire project budget by the CPI.

  So, in this case, we’d divide $100,000 by 1.14, which would give us $87,719. So, at this rate, our project is expected to come in $12,281 under budget.

  If, however, you’d calculated the project to come in over budget, you’d want to determine which steps you could take to make up the budget shortfall.

  Estimate at Completion = Project Budget ÷ CPI

What are the Benefits of BCWP and Earned Value Management?

There are several reasons project managers rely on earned value management, such as:

• Earned value management makes it easier to track project progress. One benefit of earned value management is that it allows PMs to track the success of a project while it’s going on — so project managers aren’t forced to wait until the end of a project or to rely on field data. Because PMs have a baseline for each phase of the project, they can evaluate how well the project is doing while it’s in progress.

• Earned value management helps PMs create better estimates. A time-phased budget pinpoints how much money the PM expects to spend during each phase of the project. This is the baseline the PM will compare actual costs against.

  By making this comparison, a PM can see which phases of the project met budget expectations and which didn’t. This data makes it easier for PMs to plan better for future projects by creating more accurate estimates.

• Earned value management improves cost control. Because BCWP and other earned value metrics use budgeting benchmarks for each phase of the project, project managers can track project costs on an ongoing basis, rather than waiting to perform that analysis once the project concludes.

  Because PMs are closely tracking costs, they can quickly spot budget overruns and pivot accordingly, for instance, by cutting inessential work. As a result, earned value management makes it easier to keep project costs under control.

What are the Limitations of BCWP and Earned Value Management?

• The baseline budget may be inaccurate. Earned value management measures project progress against the project baseline. If the baseline budget is wildly inaccurate to begin with, earned value management doesn’t offer PMs a whole lot of value.
• Earned value management provides a limited perspective. Although earned value management is useful for determining how well a project is meeting its budgeting and scheduling goals, it doesn’t tell the whole story. For example, should deviations from the baseline occur, EVM doesn’t explain why they happened — which means the PM will need to do further digging.
• For the biggest benefits, earned value management needs to be performed consistently. Earned value management tracks project progress against a baseline, so PMs can take corrective measures should the project deviate from that baseline. However, if a PM doesn’t perform calculations often enough, the project may be too far off course for them to take any meaningful corrective measures.

• Earned value management calculations don’t tell you anything about the quality of a project. It’s great when a project is finished on-time and under budget. However, those aren’t the only criteria that projects are judged on. Stakeholders also expect their projects to meet certain quality standards.

  For example, a project could meet all of its budgeting and scheduling goals according to earned value management calculations, yet the work be performed in such a haphazard manner as to make those calculations meaningless.

 

What if you were hired for a job, and it turned out the workload varied wildly from week to week. One week, you might have to put in 70 hours of hard, manual labor. Then next week, you’d mostly stand around and do nothing. In the following week, you’d be back to working 70 hours again.

Most people won’t put up with a lopsided schedule like this. Before long, they quit.

Project managers get this. Nearly every resource used in a project, from labor to equipment to materials, has a capacity or limitation.

In order to work within these constraints, they scrutinize and arrange projects to ensure that resources are distributed prudently and efficiently. Two techniques used for resource allocation are known as leveling and smoothing.

Understanding how these techniques work and where to apply them is an integral step to planning a project.

If you’re curious about the difference between resource leveling and resource smoothing, then read on. In this post we’ll define each of these terms and look at where they fall into a project planning schedule.

Definitions & Examples

When you’re first assigned a big project, the key information you receive is the objective, timeline and budget. From this, it’s possible to sketch out the project in general terms, using the critical path method.

Upon closer inspection of the sequence of tasks, however, it may become apparent that the plan simply won’t work. The labor may not be evenly distributed, or maybe resources won’t be available when they need to be. This is where leveling and smoothing come in.

Before defining these two terms, it’s necessary first to clarify everything that falls under the category of resources, and to explain how resource allocation functions in a project.

Resource

A resource may be either a person or a supply. Resources fall into three distinct categories:

1. Labor. This includes hourly workers, subcontractors and salaried employees within a company.
2. Equipment. This includes everything that’s required to complete a project. In a construction project for example, a backhoe and a dump truck are both pieces of equipment needed to excavate the foundation.
3. Materials. This includes anything that remains within a project upon its completion. In a construction project, this includes the wood used to frame a building, and the concrete used in its foundation.

Resource Allocation

Resource allocation means assigning the required resources to each activity. This goes further than simply assigning labor, materials and equipment. It also entails identifying the amount of materials needed, and how long it’s expected to take to complete.

With these clarifications, let’s now define resource leveling and smoothing.

A Definition of Resource Leveling

Here is how the Project Management Glossary defines resource leveling: “A technique that involves amending the project schedule to keep resource use below a set limit. It is used when it is important to impose limits on resource use. Resource leveling can affect a project’s critical path”

Leveling is necessary when the demand for a resource exceeds the supply. This oftentimes occurs when two activities on the network diagram are scheduled in parallel, and both require the same resource.

For example, let’s say that Activity A and Activity B are both scheduled on a Monday, and each require the same person to work eight hours. This clearly won’t work. Leveling out the schedule requires adjusting the network diagram so that activities A and B are in sequence, rather than parallel. (An alternative to this dilemma might be to hire additional labor, which is known as crashing.)

As you can see, leveling focuses on activities on the critical path, and results in extending a project’s schedule.

Resource leveling solves scarcity issues, which affect pretty much every resource used in a project. Generally speaking, the same piece of equipment cannot be used on two activities at the same time, individuals cannot work over a certain number of hours each day, and certain materials can be difficult to obtain at certain times of the year.

A Definition of Smoothing

Here is how the Project Management Glossary defines resource smoothing: “A technique that makes use of float when allocating resources so as not to affect total project duration. It is used when project time constraints are important. Resource leveling does not affect a project’s critical path.”

Float is an activity’s wiggle room, essentially. Smoothing adjusts the start and finish times of non-critical activities.

Resource smoothing does not extend a schedule, that is to say. Rather, when resources aren’t utilized proportionally, it re-distributes them to create a more even distribution throughout a project.

For example, if you hire someone for 30 hours of work, and initially it was scheduled over two days, smoothing re-distributes the work over four or five days.

Smoothing doesn’t work in every scenario, but when it does, it’s a useful way to ensure work is performed moderately and consistently.

The Process for Using Resource Leveling and Smoothing

Before applying resource leveling and smoothing, it’s necessary to first know the sequence of a project, and any hard dependencies between tasks. Additionally, resources must be allocated to each activity.
These four steps show where to use leveling and smoothing within project planning.

1. Create a Critical Path: First, establish a preliminary critical path, knowing that it may be adjusted upon further scrutiny.
2. Allocate Resources: Next, allocate resources to each activity. Determine the labor, equipment and materials required for each activity, as well as the time or amount for each.
3. Use Resource Leveling: This is where you take a hard look at the critical path and any resource limitations, to identify areas where resources exceed capacity. Applying the leveling technique may cause the critical path to increase.
4. Use Resource Smoothing: In this final stage, identify activities with float. Rearrange resources to create a more prudent distribution. The critical path isn’t affected by smoothing.

Once leveling and smoothing have been applied to a network diagram, you can be sure that all the resources are reliably distributed.

Resource Leveling vs Smoothing: Compare and Contrast

Although leveling and smoothing are both resource allocation techniques, each serves a distinct purpose and impacts a project differently.

• The impact on the schedule: Resource leveling extends a project’s deadline. Resource smoothing only adjusts activities with float, so the end date remains the same.
• The impact on the network diagram: Resource leveling impacts the critical path. Resource smoothing only adjusts non-critical activities; it redistributes resources without affecting the critical path.
• The placement in project planning: Resource leveling is a technique that’s applied after a preliminary critical path is established. It’s a step that finalizes the critical path. Resource smoothing occurs after resource leveling is complete, and when the critical path is firm.

As you can see, each technique impacts a project slightly differently. One handy visual to distinguish leveling versus smoothing is to imagine a home remodel. Leveling is like knocking out a wall to expand a room, in order to make more space. Smoothing is about rearranging the items in the newly expanded room.

Have you ever sat through a company goal-setting session and come out feeling less motivated that you did going in?

Maybe you came up with a list of personal goals that looked something like this:

• Network more.
• Be a better communicator.
• Stop going over budget all the time.

When you shared the goals, everyone approved. They seemed to demonstrate a commitment to succeed as a project manager.

Except they’re the exact same goals you set the previous year. And even though you may have attended some networking events, and read a book about listening skills, you feel as though you haven’t made any significant progress toward achieving any of them.

It’s discouraging to set goals that lead to nothing but dead ends, stagnation and zero growth.

If they never worked in the past, then how can you muster the motivation to try again? Aren’t goals supposed to enable growth and advancement? To shine a path to innovation and possibility?

The truth is, they can do all of these things. The secret lies in how the goal is written in the first place.

Are you aspiring to level up your project manager career, build a team and improve output? Then this is your guide to creating SMART goals to get you there.

The Skinny on SMART Goals

“SMART” is a goal setting process that provides a framework for creating goals that generate momentum and drive results. The process emphasizes specificity and metrics. The name is an acronym for: Specific, Measurable, Achievable, Relevant and Time-Bound.

How does this process work, exactly? Let’s break down each of the five parts.

Specific

The first step to a SMART goal is specificity. This means being crystal clear around what is to be accomplished. It sounds pretty basic, yet this characteristic is oftentimes omitted from goals, making them worthless and ineffective. It’s impossible to achieve something that’s unclear or undefined.

Being specific means answering these key questions:

• What needs to be accomplished?
• Who is involved?
• Where does the work take place?
• What are the limitations on the work?

This fist step means clearing away ambiguity by fleshing out all the details around the goal.

Measurable

This is about setting metrics to determine when a goal has been achieved. Depending on the nature of the goal, the metric may be a number, a percentage, a measurement of time or a dollar amount.

For example, a team may have the goal to increase gross sales. A measurement to clarify this goal might be: increase gross sales by 15% over the previous year’s sales. Or a team might have a goal to increase rapport. A measurable goal for this might be to spend the fifteen minutes before every meeting in casual catch-up conversation.

Metrics boost momentum. They provide something specific to aspire to, and allow a team to identify when a goal has been achieved, or how close they are.
If a goal isn’t measurable, this is a sign that it needs to be revised.

Achievable

Goals are all about stretching and aspiring. This step, however, is about taking a reality check and figuring out if the goal really is possible.

An unrealistic goal is a set-up for discouragement and burnout.

Taking a close look at the company’s constraints around budget, resources and time helps to determine a realistic and achievable goal.

Relevant

This step should probably be first, as it’s about clarifying the “why” of a goal. This means identifying the benefits a goal brings to the organization, the client, the team or the individual.

In order to determine if a goal is relevant, list the benefits created by the achievement of the goal. Next, align these benefits to the client’s requests or the company’s mission statement to see if they align.

Projects rarely follow a linear path, and having clarity around the “why” makes it possible to adapt, twist, pivot and turn, yet still remain on track to achieve the goal.

Time-Bound

This goal is similar to measurable; it means placing a goal within a time-frame. You may have a goal to read Vanity Fair, but you don’t want it to take seven years. This step further sharpens the goal to clarify just when it’s slated to come over the finish line.

A due date gives everyone clarity about what they need to do, and when they need to do it. It’s about efficiency, conserving resources and saving time.

One way to determine a reasonable time frame for a project is the critical path method. Once the critical path is determined, a project manager can incorporate efficiency tactics like crashing and fast tracking to ensure the team reaches the goal by the scheduled date.

Benefits of SMART Goals

These five criteria allow a team to create a realistic goal that achieves growth. SMART goals benefit a team in several key ways:

Increase Value

SMART goals are focused on creating benefits for the client and the team.

Motivate

Whereas a vague goal can zap a team’s energy, a SMART goal stretches people to expand their skill sets and grow.

With a goal like “make more money,” a team doesn’t even know what it’s set out to achieve, nor how to achieve it. A goal with a clear finish line, however, provides the team something specific to work toward, as well as the drive to get there.

Improve Processes

A SMART goal measures results. This makes it easy to identify processes and behaviors that work, and those that don’t. Once a team comes up with a winning formula for improving output, it’s able to use it again in other projects.

With this explanation, let’s now take a look at some examples of SMART goals that allow a project to soar!

8 Examples of SMART Goals for Project Managers

Ready to level up in your career? Here are eight examples of common goals for a project manager. First, we’ll look at a weak goal then reframe it using the SMART formula.

1. Improve Communication Skills

Projects are made up of so many moving people and parts that strong communication skills are a must. This is particularly the case with remote teams, as communication breaks down so easily without person-to-person interaction.

Setting a goal around communication may entail sitting down with the team and pinpointing what isn’t working. Listening to feedback identifies areas to improve, whether it’s a new meeting agenda or improved status reports.

2. Eliminate Scope Creep

Scope creep feels like an inevitability in every project. There’s always add-ons and adjustments, and before long the project manager is writing change orders. Can it be eliminated entirely?

3. Increase Team Collaboration

Teams that like and support one another produce better deliverables. Yet building a team with strong rapport is no small feat.

4. Reduce Project Risks

Some project managers would just as soon deal with issues as they transpire. Others know from experience that anticipating risks and issues ultimately saves time, money and resources.

5. Stay in Budget

This goal is kind of a no-brainer; it’s at the top of the list for any project manager.

6. Improve Quality of Deliverables

Without a system for quality control, it’s so easy for embarrassing gaffes and slip-ups to end up in the final deliverable.

7. Build Professional Contacts

Project management can be isolating. Rubbing shoulders with other people who have earned their stripes in the field provides an outlet to learn from others and air concerns.

8. Find New Opportunities to Expand Skill Set

As we all know, doing is the fastest way to learn. Growing as a project manager means finding opportunities to stretch skills and lead new teams.

These examples demonstrate how to shape realistic objectives that improve both a working environment and a professional career.

Have you ever promised someone you’ll meet them for dinner at 7:00, and a little voice inside your head knows it’ll be a close call?

Suppose it’s a Saturday, and you have a pile of errands to run: change the oil, get gas, buy groceries, drop your coat at the dry cleaner, turn in library books and visit your mother-in-law.

Even if you’ve done all these things a thousand times and know how long each should take, a variety of factors could throw you off. Maybe you’ll hit a traffic jam or run into long lines at the store, and leave your friend waiting alone at a dinner table, sipping a glass of ice water.

A complex project runs up against this same sort of conundrum. There’s always pressure to commit to a budget and a completion date. But when the project consists of hundreds of complex tasks, it’s a real challenge determining these values.

The Monte Carlo analysis is a project management technique for handling this sort of complexity. Don’t be fooled by the title: it’s not about trickery and sleight of hand. Rather, it’s a robust mathematical equation that carefully considers data from similar projects to provide estimates for the project at hand.

If you’re looking to minimize risk in your projects, then Monte Carlo may be just the solution. But applying it is a bit of a challenge. Let’s look at the ins and outs of the Monte Carlo analysis, and see where it fits into a risk management plan.

The History of the Monte Carlo Analysis

Monte Carlo is a resort in the micro state Monaco, located at the base of the Maritime Alps. It established casinos in the 1860s, and, with the addition of an opera house and sporting club over the next 50 years, became a luxury destination with picturesque villas overlooking the Mediterranean Ocean.

The resort has become synonymous with gambling, and two card games bear its namesake: a game of solitaire and three-card Monte, which uses three face-down cards and usually involves sleight of hand.

In the 1930s, Stanislam Unam, a scientist working in Los Alamos as a part of Manhattan Project, reflected on the probabilities in a game of solitaire. His reflections developed into the equations that became the basis for the method, which he assigned the code name “Monte Carlo,” as it was a favorite gambling destination of his uncle.

Over the following decades, several mathematicians honed the method into the simulation that’s used today.

A Definition of the Monte Carlo Analysis

A Monte Carlo analysis or simulation is part of a risk management plan. It’s used primarily to create estimates around a project’s duration and its cost.

Here is how the Project Management Glossary defines it: “Monte Carlo simulation is a computer-based technique that performs probabilistic forecasting of possible outcomes to facilitate decision making. For each possible decision — from the most high-risk to the most conservative — a Monte Carlo simulation provides decision makers with a range of possible outcomes and the likelihood that each will occur.”

The Monte Carlo analysis is highly mathematical, and provides a range for a project’s duration or cost, as well as probabilities for each outcome.

The method is fairly complex and isn’t always necessary for a project. However, in certain instances it can effectively pinpoint a project’s probable cost and duration.

Let’s look at the four steps to take in order to apply this simulation in a project.

The Four Steps to Run the Simulation

When a project consists of many complicated tasks, the Monte Carlo method helps to determine both its completion date and cost. Here are the steps for using the method on a project.

1. Determine the Critical Path

The first step is to sequence all of the project’s tasks and determine the critical path. Those tasks on the critical path are the focus of the Monte Carlo Method.

2. Estimate Each Activity on the Critical Path

Next, carefully consider the risks and uncertainties surrounding each critical activity, and determine a range of estimates for the duration or cost of each. Additionally, assign a probability to each value on this range.

For example, if an activity takes one, two, or three hours, determine the likelihood of each value. If it’s most likely to take two hours, this value is assigned the highest probability.

In order to determine these values with precision, it’s essential to have extensive experience in the specific task at hand. Speculating about the duration or costs of unfamiliar tasks can lead to inaccuracies, rendering the analysis useless.

3. Enter Estimates into the Monte Carlo Equation

As a final step, enter these values (time or cost plus probability) into a Monte Carlo equation. As this equation is complex, it’s necessary to do this using software; it cannot be calculated by hand.

The simulation then calculates a distribution for the duration or cost for the entire project, and assigns probabilities to each outcome.

4. Forecast the Project’s Duration or Cost

Using the distributions provided by the simulation, it’s possible to come up with a solid estimate for the project’s cost or duration.

Most values cluster around the predicted schedule or cost, and the 70-80% probability range yields a value that the project is likely to either smash or go below.

With these steps in mind, let’s look at an example for how this works.

Example of a Monte Carlo Analysis

Whether estimating a project’s cost or its duration, the Monte Carlo analysis works almost identically. Let’s look at how to build a distribution for the project of installing a kitchen backslash. These are the various durations for twenty previous installations:

2 installations: 1 hour or less
10 installations: 1 to 1.5 hours
5 installations: 1.5 to 2 hours
3 installations: 2 to 2.5 hours

In these twenty examples, the second value occurs the most frequently; in ten out of twenty times, the installation took between 1 and 1.5 hours. As ten is half of twenty, a project manager is 50% certain that an upcoming installation takes the same amount of time.

Suppose a project manager wants to have 85% certainty around the time estimate for the backsplash installation. With 20 samples, 85% represents 17 samples, which is the sum of the first 3 values. He or she can assign an estimate of two hours to the installations and be 85% certain of its accuracy. Being 100% certain means assigning the highest estimate of 2.5 hours.

Note that this is a simple project consisting of only one task. A kitchen remodel normally includes many, many more tasks, including installing counters, cupboards, a refrigerator and a stove. Calculating the duration for a complex project with multiple tasks requires using software with a Monte Carlo simulation.

Calculating cost uses the same process, except the estimated values are cost and probability rather than time and probability.

In summary, when estimating both cost and schedule, the Monte Carlo Method entails breaking the project down into individual activities, and assigning a range of values with corresponding probabilities for each.

Strengths & Weaknesses of the Simulation

Monte Carlo provides answers to pressing project questions, no doubt about it. In addition to providing estimates around cost and timeline, it also allows project managers to identify how much cushion they have around a slated budget and schedule.

But is Monte Carlo a solid method? Can a project manager lean in on the results from these calculations?

In order to use the process effectively, it’s necessary to understand both its strengths and its weaknesses. Let’s look at the strengths first.

Strengths

Provides Objective Analysis

The Monte Carlo analysis considers all of the activities on a critical path, giving them equal weight. This is very difficult to do on our own. Rather, it’s easy to have a myopic fixation on one activity and overlook others.

Provides Flexibility

The Monte Carlo simulation provides project managers with a range, given the inputs. A project manager can change the data to discover other ranges. Playing around with the calculated values and identifying various ranges helps to eliminate risk, as the project manager understands what he or she is getting into under various scenarios.

Weaknesses

Requires Lots of Data

The values in a Monte Carlo simulation are the most reliable when they’re taken from previous experience. To obtain these values, it’s necessary to have performed a similar project many times before.

If a team is doing a task for the very first time, or has only done it a few times, it’s impossible to come up with accurate ranges for the time or cost.

The principle “Garbage in, Garbage Out” applies here. If the numbers going into a Monte Carlo simulation are inaccurate, then the values that come out won’t be reliable.

Does Not Consider Correlation Between Tasks

Monte Carlo ignores something that’s clear to any project manager: tasks are correlated, and many tasks are similarly affected by the same uncertainties.

Take a construction project that’s heavily influenced by the weather. A snowstorm would severely impact the initial task of laying the foundation. The upcoming task of framing the house would be similarly delayed by this same snowstorm.

However, a Monte Carlo simulation doesn’t take this into account. It considers each task individually, and doesn’t consider the impact of one event on all the tasks collectively.

Requires a Huge Time Commitment

A Monte Carlo simulation entails looking at each individual task, and creating an estimate. In a project with several dozen tasks, coming up with these values takes some time. This is time dubiously spent, given that many of the inputs may not be accurate.

In conclusion, a Monte Carlo analysis can be a helpful part of a risk management plan. But it shouldn’t be used exclusively, but rather in combination with other methods and techniques.

If you’re a project manager, then you know that scheduling conflicts are an unavoidable part of the job.

But that doesn’t mean they’re not disorienting. Trying to keep everyone in sync while also getting the job done on time can feel a lot like herding cats.

Not only do you have to worry about conflicting schedules, but you also need to juggle different personalities, working styles, and communication preferences.

But don’t worry, we’re here to help.

By the time you’re finished reading this blog post, you’ll know how to handle scheduling conflicts like a pro.

First, we’ll address the causes as well as the best practices for handling scheduling conflicts. So that, you can avoid them all together. After that, we’ll explore different types of conflicts and how to handle them.

So without further ado, let’s get started.

Causes of Scheduling Conflicts

There are a few different reasons why scheduling conflicts might arise in the workplace.

Good Old Fashioned Forgetting

The first is simply that people are forgetful. No bad intentions, they just plain old forgot.

Now normally this is no big deal, you can just send a reminder and everyone’s back on track.

However, if forgetting becomes a habit or the scheduled event is very important, it can lead to some serious issues.

When forgetfulness is a pattern it can be a huge problem. Especially, if someone is constantly forgetting deadlines or appointments, it might be time to have a talk about time management.

When the scheduled event is super important, it can also lead to some big problems.

Over committing

Another super common cause of conflict is over-committing.

This one’s a little more insidious because it often comes from a place of good intentions. You know the type, they want to help out with every project and say yes to every request.

But eventually, their over-zealousness catches up with them and they’re left with a pile of commitments they can’t possibly keep.

When this happens it not only reflects poorly on them, but it also causes problems for the rest of the team.

Now, there’s nothing wrong with your employees wanting to help out or being a team player. But it’s important to know your limits and to be realistic about what you can actually accomplish.

If you have a team member prone to over-committing, try to take a step back and only commit to what you know you can handle.

It’s better to under-promise and over-deliver, than the other way around.

Communication Breakdowns

Another common cause of scheduling conflicts is a breakdown in communication.

This can happen when team members are working remotely or in different time zones. It can also happen when there’s a lack of clarity around roles and responsibilities.

For example, if two team members think they’re responsible for the same task, they might both end up working on it simultaneously. Or if a team member is unclear about their deadlines, they might miss an important milestone.

Communication breakdowns can also happen when there’s a lack of transparency around the project schedule. If team members don’t have visibility into the entire project, they might make assumptions that lead to conflict.

Best Practices for Handling Scheduling Conflicts

Now that we’ve gone over some of the common causes of scheduling conflicts, let’s talk about how to handle them.

The best way to deal with conflict is to avoid it altogether. So here are a few best practices that will help you do just that.

Create a Master Schedule

One of the best ways to avoid scheduling conflicts is to create a master schedule.

This should be a central place where everyone can see what’s happening and when.

There are a ton of great project management tools out there that come with this feature, like Teamly.

But you can also create a simple spreadsheet or even just use Google Calendar.

The important thing is that everyone on the team has access to it and knows where to find it.

This way, there’s no confusion about who’s doing what and when things are supposed to happen.

Communicate, Communicate, Communicate

As we mentioned before, communication is key to avoiding scheduling conflicts.

So it’s important to have regular check-ins with your team to make sure everyone is on the same page.

This can be done through stand-ups, weekly meetings, or even just quick chats in the hallway.

The important thing is that you’re regularly checking in and that everyone feels like they can voice their concerns.

If there’s something going on that could lead to conflict, it’s better to catch it early and address it head-on.

Set Clear Expectations

Another way to avoid scheduling conflicts is to set clear expectations from the start.

This means being clear about deadlines, roles, and responsibilities.

It also means setting realistic expectations for what can be accomplished.

If team members know what’s expected of them, they’re less likely to overcommit or make assumptions that could lead to conflict.

So take the time to sit down with your team and make sure everyone is on the same page.

It might seem like a lot of work upfront, but it will save you a ton of headaches down the road.

Fight For Clarity In Your Plans

If you’re ever in a situation where there’s scheduling conflict, it’s important to fight for clarity in your plans.

This means being clear about what you need and when you need it.

It also means being willing to negotiate and make compromises.

For example, if you’re working on a project that has a tight deadline, you might need to be flexible on the scope.

Or if you’re working on a project with a lot of moving parts, you might need to be flexible on the timeline.

The important thing is to be clear about your needs and be willing to compromise.

Only commit to what you can realistically accomplish.

And don’t be afraid to ask for help if you’re feeling overwhelmed.

Scheduling conflicts are a fact of life. But with a little planning and communication, they can be easily avoided. So take the time to put these best practices into place and you’ll be well on your way to a conflict-free project.

Types of Scheduling Conflicts & How To Handle Them

For a moment let’s pretend you haven’t been following the best practices, and now you find yourself in the middle of one.

What do you do?

Well, it depends on the type of conflict you’re dealing with…

Type# 1 – Dependency Conflict

The first type of conflict is a dependency conflict. This happens when two tasks are dependent on each other but are scheduled for different times.

For example, let’s say you’re working on a website and you need the design before you can start coding.

But the designer is scheduled to start work after the coder.

This is a dependency conflict.

Solution

The best way to handle this type of conflict is to sit down with the team and figure out a new schedule that works for everyone.

It might mean shifting some deadlines around or changing the order of tasks.

But it’s important to be flexible and make sure everyone is on board with the new plan.

Type# 2 – Capacity Conflict

The second type of conflict is a capacity conflict. This happens when two tasks are scheduled for the same time but can’t be done at the same time.

For example, let’s say you’re working on a project and you need to meet with the client and work on the visuals at the same time.

But there’s only one person who can do both tasks.

This is a capacity conflict.

Solution

The best way to handle this type of conflict is to prioritize the tasks and figure out which one is more important.

If the client meeting is more important, then you might need to shift the visuals to another time.

But if the visuals are more important, then you might need to shift the client meeting.

It’s important to be flexible and make sure the most important tasks are getting done.

Type# 3 – Resource Conflicts

The third type of conflict is a resource conflict.

It’s very similar to Capacity Conflict but is more focused on the resources needed to complete the task.

For example, let’s say you’re working on a project and it requires you to use the company truck.

But the truck is already scheduled to be used by another team.

This is a resource conflict. And it happens a ton in large organizations.

Solution

There are two potential solutions here: one is a quick fix and the other is a long-term fix.

The quick fix is to find another resource that can be used instead of the truck. Maybe there’s a different truck that can be used or maybe the team can rent a van for the day.

The long-term fix is to figure out a way to schedule the use of resources so that there’s no conflict.

This might mean creating a new system or process for scheduling resource use.

Type #4 The Late Arrival

We’ve all been there- you’re in the middle of presenting your ideas and suddenly, someone walks in late. It can be super frustrating, especially if you were in the middle of a great flow.

This is a tough one, because on the one hand, you don’t want to be rude and stop in the middle of your presentation. But on the other hand, you also don’t want to give the late arrival preferential treatment.

Solution

When this happens it’s important to politely acknowledge the person and then continue with your presentation.

You can say something like, “Welcome, we’re just getting started. I’ll be happy to answer any questions you have at the end.”

This way, you’re being respectful but also making it clear that the person is not going to disrupt the rest of the meeting.

Type #5 – Scope Creep

Have you ever been in a situation where your project starts to get bigger and bigger and suddenly you’re doing twice the work you originally agreed to?

This is called scope creep and it’s a very frustrating situation to be in.

Solution

The best way to handle scope creep is to stay calm and try to get the client back on track.

First, remember that you are not obligated to do extra work just because a client asks for it. It’s important to set boundaries so that you don’t end up doing more than you agreed to.

Second, explain your position calmly and clearly. Sometimes all a client needs is a little explanation about why additional work would be a problem. They may not have realized that they were asking for too much.

Third, offer alternatives. If the client is insistent on additional work, see if there’s a way to compromise. Maybe you can do a smaller version of what they’re asking for or break the project into phases.

It’s important to be flexible but also to stick to your guns and make sure you’re getting paid for the work you agreed to do.

Efficiency is the name of the game in project management.

After all, if a project is taking too long, it’s likely going to cost more money than necessary. Six Sigma is a methodology that can help you streamline your projects and get them done faster – without sacrificing quality.

The name “Six Sigma” is a technical term that refers to a statistical measurement related to bell curves.

For the sake of article space, its statistical definition is unnecessary. Just know that the goal of Six Sigma is used to streamline your projects process so that there are as few defects as possible.

Or simply put: Six Sigma = no wasted time or resources.

Essentially, it’s about efficiency and quality. And who doesn’t want that?

The trouble with many project management processes is that they are bogged down with waste. This could be anything from inefficient communication to an unclear project scope.

Six Sigma seeks to identify and eliminate this waste so that projects can be completed faster and more efficiently.

The good news is that you don’t need a team of statisticians to implement Six Sigma in your project management process. In fact, it’s relatively simple to get started.

This article is all about the basics of Six Sigma and how you can use it to improve your project’s aims. Let’s get started!

What is Six Sigma?

As we mentioned, Six Sigma is a methodology that seeks to streamline a process so that there are as few defects as possible.

This might sound like a tall order, but it’s actually quite achievable. In fact, many companies have managed to achieve “Six Sigma” quality levels. This means that they have just 3.4 defects per million opportunities.

To put this into perspective, if a company has a process with 1 million opportunities for defects, Six Sigma would mean having just 34 defects. That’s a pretty low number!

It became popular in the 1980s as a way to improve manufacturing processes, but it has since been adopted in other industries as well.

These days, Six Sigma is used in project management as a way to streamline processes and achieve better results in less time.

6 Benefits of Six Sigma for Project Management

There are many benefits of Six Sigma for project management. Here are just a few:

1. Improved Quality Control

One of the biggest benefits of Six Sigma is that it can help you improve the quality of your products and services.

By identifying and eliminating defects, you can ensure that your customers are always getting the best possible experience.

By vigilantly examining quality, you can often recognize problems as they start and take care of them before they grow into something much more serious.

2. Increased Efficiency

Another big benefit of Six Sigma is that it can help you increase the efficiency of your processes.

By streamlining your process and eliminating waste, you can get your projects done faster and with fewer resources. This will reduce cycle times and save you money in the long run.

This is good news for both your bottom line and your team’s morale.

3. Improved Customer Satisfaction

Ultimately, all businesses exist to serve their customers.

By implementing it, you can improve customer satisfaction by ensuring that they always receive high-quality products and services.

Plus, by reducing cycle times and increasing efficiency, you can also improve their experience by getting them the results they need faster, resulting in a happier customer.

And you know what that means… happier customers are loyal customers.

4. Better Understanding of What Customers Want

In order to provide the best possible experience for your customers, you need to have a good understanding of what they want.

This is exactly what Six Sigma can help you with.

The data collected during the Six Sigma process can give you valuable insights into your customers’ needs and desires. This, in turn, will allow you to tailor your products and services to better meet their needs.

5. Increased profitability

When processes are dialed in and running smoothly, it frees up time and resources that can be used to generate revenue.

In other words, when your projects are running efficiently, it can actually lead to increased savings.

Ultimately, these savings can lead to increased profitability for your business.

6. Improved morale

When your company and team are performing well, it can lead to an improved morale.

Your team will be more engaged and motivated if they feel like they’re part of a successful organization. This, in turn, can lead to even better performance and results.

In addition, by providing training and opportunities for employee development, Six Sigma can help attract and retain top talent.

It’s a positive feedback loop that starts with Six Sigma.

Nuts & Bolts of Six Sigma – How it works

Now that we’ve covered some of the benefits of Six Sigma, let’s take a look at how it actually works. There’s a standard set of steps that are followed in order to Six Sigma a process.

We could debate the exact order of these steps, or whether some steps are more important than others. But at a high level, this is are the steps:

• Define
• Measure
• Analyze
• Improve
• Control

Let’s take a closer look:

Define

The first step is to define the problem that you want to solve.

This might involve identifying a specific issue that you want to address, such as reducing cycle times or increasing throughput. Once you’ve defined the problem, you need to set measurable goals so that you can track your progress.

Measure

The next step is to measure the current state of your process.

This will involve collecting data so that you can identify where there are issues. In addition, you need to establish baseline metrics so that you can track your progress over time.

Analyze

Once you’ve collected data, it’s time to analyze it so that you can identify the root cause of the problem.

This might involve using statistical tools to identify patterns or trends. In addition, you need to make sure that you understand the impact of any potential solutions.

Improve

Once you’ve identified the root cause of the problem, it’s time to develop and implement a solution.

This might involve changing the way your process is designed or introducing new methods or technologies. In addition, you need to make sure that the solution is effective and does not create any new problems.

Control

The final step is to control the process so that the problem does not recur.

This might involve puttiing in place new procedures or controls. In addition, you need to monitor the process on an ongoing basis to make sure that it is running smoothly.

By following these steps, you can Six Sigma any process so that it runs more efficiently and effectively.

Six Sigma in Project Management

Now that we’ve covered the basics of Six Sigma, let’s take a look at how it can be used in project management.

Lean Six Sigma

Six Sigma has a long history of promoting collaboration among teams, going all the way back to when it was first developed into Lean Six Sigma in the early 2000’s.

The main idea was to take the best of both Six Sigma (the focus on quality and efficiency) and Lean manufacturing (the focus on reducing waste), and combine them into one powerful methodology.

The result was Lean Six Sigma, a methodology that has since been adopted by many organizations, in a variety of sectors around the world.

When it comes to project management, Lean Six Sigma can be used to improve the efficiency and quality of any project.

Agile Six Sigma

Agile is a popular methodology that focuses on delivering value early and often, through short iterations known as sprints. The main hallmark of Agile is its emphasis on collaboration and constant feedback.

In recent years, there has been a growing trend of combining Agile and Six Sigma into what is known as Agile Six Sigma.

Agile Six Sigma takes the best of both worlds, combining the focus on quality and efficiency of Six Sigma with the flexibility and collaboration of Agile.

How to use Six Sigma in your project management

If you’re a project manager, you might be hesitant to tamper with something that’s already in motion and working well. After all, the last thing you want is to rock the boat and end up with a bigger mess on your hands.

But the truth is you’re probably already using Six Sigma in your project management, whether you realize it or not. In fact, many of the tools and techniques that are used in Six Sigma, such as process mapping and root cause analysis, are also used in project management.

The difference is that in project management, these tools and techniques are used to manage the project, rather than the process.

So how can you use Six Sigma in your project management? Here are a few ideas:

1. Use process mapping to understand the project and identify potential areas of improvement.
2. Use root cause analysis to identify the underlying causes of problems so that they can be addressed at the source.
3. Use statistical tools to analyze data and identify patterns or trends.
4. Use process improvement techniques to develop and implement solutions that will improve the efficiency and quality of the project.
5. Control the project so that problems do not recur.

By using these tools and techniques, you can Six Sigma your project management and make your projects more efficient and effective.

Understanding the Limits

Just like any other tool or methodology, Six Sigma has its limitations.

One of the biggest limitations is that it can be complex and time-consuming to implement. In order to get the most out of Six Sigma, you need to have a clear understanding of the tools and techniques involved.

You also need to be able to dedicate the time and resources necessary to implement it properly. If you try to shortcut the process, you will not get the desired results.

Another limitation of Six Sigma is that it is not always well-suited for small projects. The tools and techniques involved are designed for large, complex projects.

If you try to apply them to a small project, you may find that it is more trouble than it’s worth. In some cases, it may be better to use a different methodology, such as Agile or Scrum.

Finally, Six Sigma is not a magic bullet. It will not solve all of your problems or make your projects perfect.

It is a powerful tool that can help you to improve the efficiency and quality of your projects, but it is not perfect.

When used correctly, Six Sigma can be a valuable addition to your project management toolbox. Just be sure to understand its limitations before you try to implement it.

Disruption is the name of the game today.

Technology has made it easier than ever before for businesses to enter new markets and create new products and services. This increased competition is good news for consumers, but it can be tough on businesses that are trying to keep up.

To stay ahead of the curve, management teams need to be flexible and adaptable. They need to be able to quickly change direction when necessary and pivot when new opportunities arise.

Project management is a critical tool that can help businesses achieve these goals. By its very nature, project management is all about planning, executing, and tracking progress.

It’s an essential function for any business that wants to stay ahead of the competition.

9 Super Important Trends For Project Management

There are a number of project management trends that are worth watching for the foreseeable future. Here are nine that we think will have a big impact on the way businesses operate in the next few years:

Trend #1 – Artificial Intelligence (AI) And Automation

Well it’s finally here and it’s mind boggling. With the rapid advancements in computer processing power and data storage, artificial intelligence (AI) is quickly becoming a reality for businesses across the globe.

What was once considered the stuff of science fiction is now being used to automate tasks, make decisions, and even improve customer service.

In project management, AI can be used to automate repetitive tasks, such as creating reports or tracking progress. This frees up time for project managers to focus on more important tasks.

AI can also be used to make decisions about projects. For example, it can be used to assess risks and identify potential problems.

AI-powered project management software is still in its infancy, but it has the potential to revolutionize the way businesses operate.

If you’ve played around with DALL-E , you know exactly what we’re talking about. Essentially, it’s an AI that creates images from textual descriptions, and the results are often…surprising, to say the least.

Copywriting is one area where AI is already starting to make an impact. Programs like Grammarly and ProWritingAid use AI to help people write better.

And it’s not just limited to English either. There are now AI-powered grammar checkers for a number of different languages, including Spanish, French, and German.

Trend #2 – Remote Work And Virtual Teams

It’s safe to say that the pandemic has changed the way we work forever.

For many businesses, the shift to remote work was a necessity. But it’s clear that there are a lot of benefits to working from home, including increased productivity and lower overhead costs.

As a result, we expect to see more businesses embrace remote work in the coming years. This trend will have a big impact on project management, as more and more teams will be dispersed around the globe.

To manage remote teams effectively, project managers will need to use new tools and technologies. They’ll also need to be adept at communicating across time zones and cultures.

Trend #3 – Emphasis on Emotionally Intelligent Team Members

When team members are not on the same page, it can lead to confusion, frustration, and ultimately, a failed project.

To prevent this from happening, businesses are placing an emphasis on emotional intelligence. In the “emotional intelligence world” they call it Emotional Quotient (EQ).

Individuals with high EQ are self-aware and good at managing their emotions. They’re also excellent communicators and team players.

EQ training is becoming more common in the corporate world. And we expect to see more businesses invest in EQ training for their employees in the coming years.

This trend will have a big impact on project management, as emotional intelligence will become an important skill for team members.

Trend #4 – Data-Driven Decision Making

Although data has always been at the foundation of business decision making, we expect to see a greater emphasis on data in the coming years.

With the rise of big data and artificial intelligence and pixel-perfect CRMs, businesses now have access to more data than ever before.

And they’re using it to make better decisions about everything from product development to marketing.

Data-driven decision making will become increasingly important for project managers in the coming years. They’ll need to be able to collect and analyze data to make decisions about projects.

They’ll also need to be able to use data to assess risks and identify potential problems.

Trend #5 – Emphasis on Soft Skills Over Hard

Soft skills are often described as the “people skills” that are needed to succeed in the workplace. They include things like communication, teamwork, problem-solving, conflict management, and emotional intelligence.

Hard skills are the technical skills that are needed to do a job. They include things like programming, accounting, and project management.

In the past, businesses have placed a greater emphasis on hard skills. But we expect that to change in the coming years.

As businesses increasingly rely on technology, the importance of soft skills will continue to grow. This trend will have a big impact on project management, as project managers will need to be more people-oriented.

They’ll need to be good at communicating, managing conflict, and building relationships.

Trend #6 – The Rise of Virtual Environment

At this point it’s safe to say that Virtual Reality is no longer just for gaming.

The technology is being used in a number of different industries, including healthcare, education, and training.

And businesses are beginning to use Virtual Reality to create virtual environments for their employees.

This trend will have a big impact on project management. Project managers will need to be able to create and manage virtual environments.

It’s hard to say when this will hit a tipping point, but it’s definitely something to keep an eye on in the coming years.

Trend #7 – Gamification In Project Management

Gamification is the use of game mechanics in non-game contexts.

It’s a way to motivate employees and get them engaged in their work. And it’s something that we expect to see more of in the coming years.

There are a number of ways to gamify project management, including using points, badges, and leaderboards.

It’s all about incentives and making work more fun. By creating tiny micro dopamine hits, you can increase engagement and motivation.

This trend will have a big impact on project management. Project managers who are able to gamify their projects will be more successful in engaging their team members.

Trend #8 – Increased Use of Agile Practices

Agile is a project management approach that emphasizes iterative development and the ability to respond to change.

It’s a popular methodology for software development, but it’s also being used in other industries.

We expect to see an increased use of agile practices in the coming years. This trend will have a big impact on project management.

Project managers will need to be able to adapt their projects to the agile approach. They’ll need to be able to work in iterative cycles and be flexible in their plans.

Trend #9 – The Increase Demand For Sustainable Projects

Sustainability is a hot topic these days. And it’s making in-roads into the business world.

More and more businesses are looking for ways to make their operations more sustainable.

This trend will have a big impact on project management. Project managers will need to be able to identify sustainable practices and incorporate them into their projects.

They’ll need to think about things like waste reduction, energy efficiency, and resource conservation.

The demand for sustainable projects will continue to grow in the coming years. And project managers who are able to meet this demand will be in high demand.

The 4 Pillars In Project Management That Will Never Change

Change is the only constant in life.

And that’s especially true in the world of project management.

There are always new trends and technologies emerging. And as a result, the way we manage projects is constantly evolving.

But despite all the changes, there are some things that will never change in project management.

These are the 4 pillars that will always be relevant, no matter what new trends emerge:

Pillar #1 – The Need for Good Communication

No matter how big or small your team is, and no matter what tools you’re using, good communication will always be essential for successful project management.

That means being able to communicate clearly and concisely, as well as being a good listener. With so many different personality types on any given team, it’s important to be able to adjust your communication style to meet everyone’s needs.

So, be sure to brush up on your communication skills before embarking on your next project.

Pillar #2 – The Importance of Planning

As you already know, a well-thought-out plan is the foundation of any successful project.

Without a plan, it’s easy to get off track and miss important deadlines.

Even if you only have a rough idea of what you want to achieve, it’s still important to sit down and map out a general plan of action. As the saying goes, failing to plan is planning to fail.

The trends of AI and automation might make you think that planning is becoming obsolete. But don’t be fooled. A good plan is still essential for any successful project.

Pillar #3 – Change is Inevitable (and Often Unpredictable)

Calibrating your expectations is key to maintaining a healthy outlook throughout any project.

No matter how well you plan, there will always be unforeseen obstacles and challenges. And the only way to deal with them is to roll with the punches and adjust your plans accordingly.

Flexibility and adaptability are essential skills for any project manager.

Because no matter how well you plan and how carefully you execute your plans, there’s always a chance that something will happen to throw a wrench in the works. The key is to be prepared for change and adaptable enough to roll with the punches when it happens.

Pillar #4 – There Will Always Be Room for Improvement

Even if a project goes off without a hitch, there’s always room for improvement.

After all, there’s no such thing as perfect—there’s only “good enough.” By constantly strive to improve upon your previous successes (and learn from your failures), you can ensure that each new project is even better than the last.

There are several Project Management Methodologies available for use, but these 4 pillars will always remain the same.

So, no matter what new trends emerge in project management, be sure to keep these 4 pillars in mind. They’ll help you set your team up for success.