Microsoft Project 2000 – Keeping Projects On Time and Within Reasonable Budget

Melanie O. Anderson
Assistant Professor of Business and Director of Continuing Education
University of Pittsburgh
504 East Main Street
Titusville, PA   16354
814.827.4415
814.827.5574 (fax)
moanders@pitt.edu
www.pitt.edu/~moanders/

Introduction

Microsoft Project 2000 is a software tool that supports project management, such as installing a new computer system or major construction project.  It offers an organized, secure method of managing a detailed project.  It can be used as a stand-alone tool or be used collaboratively by a group if set up on a web server.  If one uses other applications as a point of reference, MS Project is part database (tracks activities or tasks), spreadsheet (tracks and recalculates costs and dates), charting tool (produces several different types of charts) and report writer. 

This paper and presentation will present some background information on project management concepts as well as presenting detailed information on the use of MS Project. 

Project Management Industry Groups/Certifications

The leader in project management support is a user developed and supported industry group – The Project Management Institute (PMI).  PMI establishes project management standards, provides seminars and educational programs, and oversees professional certification.  A very useful guide that PMI publishes is the Project Management Body of Knowledge (PMBOK); the PMBOK 2000 edition was recently approved by ANSI as an American National Standard.  The industry certification is a Project Management Professional (PMP).  Also available, though not as impressive as the PMP certification, is the MOUS certification in MS Project 2000.   The PMI website is a treasure-trove of information about project management and can be accessed at http://www.pmi.org/. 

Project Marketplace – Job Outlook

PMI provides a free career headquarters resource.  It regularly displays over 50 current project management jobs across the country, with compensation levels of $60,000+ annually.  A few of the jobs listed are detailed at right.

Project Management Software

Is Microsoft Project the only software available for project management?  Definitely not, but it is one of the most popular, perhaps due to three factors: 

• Cost
• Compatibility
• Usage Information and Support

Other products are available and are summarized in the table below.  They are listed in alphabetical order – many product reviews can be found on these at http://www.zdnet.com.

Defining a Project

The project should be well defined, including describing the project, when it should be completed, and any cost factors.  For example, “Install JD Edwards GL Module” is too general, without any guidelines.  “Install JD Edwards GL Module, with implementation to be completed by January 1 for $50,000” is more specific and measurable. 

Using MS Project

We will use a three-pronged attack to build our project using MS Project – 1) build a project 2) track and manage the project and 3) close a project.   Most of this paper and presentation focuses on the first task, building a project.   Each of these major categories will have sub categories and steps within it. 

MS Project Basics

MS Project 2000 has the same look and feel as other MS applications, reducing your learning curve on some of the basic tasks.  However, project management concepts are foreign to most so this may be your biggest learning curve. 

Starting a New Project – Views and Defaults

MS Project starts with the default view – Gantt Chart, but there are 23 possible views to utilize.  The most common views are represented as icons at the left side of the screen.  These views can be categorized as: 

Double clicking on a view will change to that view; an alternative method is to use the View menu.  We will deal with the most common views, Gantt Chart, Network Diagram, Calendar and Task Usage.

Before adding any project information, check out and change any project default values.  This can be accessed by clicking on Project, Project Information menu selections. 

1. The start date will be today’s date – you should click on the drop down arrow and select a new start date from the calendar. 
2. The finish date will be automatically calculated from the tasks as entered. 
3. The schedule from selection box lets you schedule from today (start date) forward or chose a finish date and schedule back. 
4. The Calendar box can be standard, night shift, or 24-hour shift.
5. Click the OK button once you have entered all of your options.

You will also want to set up project calendars for the entire project and, if necessary, for individual resources or tasks.  Holidays and other nonworking days can be specified, as well as different working hours.

To work with the project calendars:

1.      Click Tools on the menu bar, and then click Change Working Time. 

2.      Chose the correct calendar in the For drop down box.

3.      Select the appropriate month by using the scroll arrows.

4.      Click on a date to be marked as nonworking. 

5.      Click on the radio button for nonworking time. 

6.      Any other modifications can also be made to time, etc.

7.      Click on OK when complete.

Planning/Adding Tasks

Activities or tasks that must be completed in order to finish the project have to be identified.  Sufficient detail must be listed without becoming too detailed.  For example, train users may be OK as a task if training is general and similar for everyone.  However, if training is split into training for accounting vs. training for the rest of the users, these should be listed as separate tasks.    Duration must also be assigned to all tasks as well.  The default unit of measure is days, although this can be changed to hours, or several other units of measure. 

Tasks are entered in Gantt Chart View:

1. Click on the Task Name Cell and enter a short, but descriptive task name. 
2. Press the right arrow key or click on the duration cell.  The task duration should be entered as a number, which will default to days.  If you want weekly, follow the number with a w or an h for hourly.
3. Click the task name cell in row 2 and enter the next task and duration. Enter all of your tasks.
4. Click the Save button on the Standard toolbar.  Select the drive and folder location.  Type a filename in the File Name text box. 
5. Click on Save.  Note that your file will be saved as filename.mpp.  When asked, click the save without a baseline.  (Baseline is not usually created until the entire project has been entered and everyone has reviewed and approved it.)

Tasks can be inserted into the list by clicking on the task where you want to insert, and then pressing the insert key.  Tasks may be deleted by clicking on a task and pressing delete.

You can save time in entering tasks by copying and pasting existing task (follow Select and Do procedures).  In addition, recurring tasks can be set up.

To set up a recurring task (for example, a meeting that meets every week):

1.  Click an empty task name cell, and click on insert on the menu bar.  Then click on Recurring Task.

2.  Complete the Recurring Task Dialog Box and click OK. 

Drag the split bar separating the Entry Table from the Gantt Chart to the right so that you can see the additional entry fields.  Note that the Start Date is assumed to be today’s date; the finish date will be automatically calculated, and that we will enter the predecessor tasks and resource names at a later point.

Establishing task dependencies requires that one understand the four types of dependencies.  Dependencies establish relationships between tasks in a project and help determine when a project will be completed.  The first task in a relationship is called the predecessor task; the second task is called the successor task.  The most common type of dependency is Finish to Start (FS); the predecessor task must finish before the successor task can begin. 

Open your project in Gantt Chart view:

1. Select Windows, Split Screen to split your screen another time to show task dependency detail.
2. Click on the first task in the relationship, and then drag to the second task in the Entry Table.
3. Click on the Link Tasks button on the standard toolbar. 

Another way to link tasks is using the Gantt Chart itself:

1. Point to the middle of the first task.  The pointer changes to a 4 headed arrow. 
2. Click and drag the link pointer in the bar to the middle of the second task.
3. To modify the type of relationships between tasks, double click the link line between the two tasks.  Use the dialog box (at right) to modify the dependency.

Note that dependencies can also be established in the network diagram view and the calendar view.  The procedure is similar to the Gantt Chart method – point to the middle of

task and click and drag to the second task.

Deleting a dependency is accomplished by selecting the tasks, and then clicking the unlink tasks button on the standard toolbar.

The drag and drop methods described above work well for dependencies that are one for one.  When one task is a predecessor for many tasks, then it becomes very difficult to accomplish this graphically.  The Gantt Chart split screen we invoked above allows one to enter the relationships in a table layout. 

To establish dependencies using the Table:

1. Click on the task in the Entry Table that you want to establish dependencies for.
2. Right click on the table at the bottom of the screen, and click on Predecessors & Successors.
3. Type in the predecessor task numbers in the ID column. 
4. Tab to the successor task ID column and type one or more successor task number(s). 

Note that the type of task relationship (FS, SF, etc.) can be edited here. 

Milestones

Milestones are symbolic tasks that represent the end of a significant phase of a project.  They serve as minor triumphs for the project team and morale boosters.  The project manager identifies strategic points in the project, including points early in the project, where extra motivation may be needed. A milestone has duration of 0, which MS Project recognizes then as a milestone.

Establishing milestones:

1.      Click on the Gantt Chart to select it (if not selected).

2.      Click on a task in the entry table, above which you want to establish a milestone.

3.      Press the insert key to insert a new line.

4.      Type the milestone task name.

5.      Press tab and enter a duration of 0.

Grouping Tasks/Summary Tasks

Large projects often contain many tasks; it is prudent to organize the tasks into subgroups to better manage the project.  Tasks are grouped logically under summary tasks.  The rule of 20s indicates that you create no more than 20 summary tasks and then break those down into individual tasks until you have defined the entire project. 

To establish summary tasks:

1. Click on the first task to be in the summary/group.
2. Press the insert key, and type the summary task name.
3. Select (drag across) the tasks to be included in the group.
4. Click on the indent button on the formatting toolbar. 

The task is now a summary task and listed in bold.  The summary task has a predetermined duration that is the total of all the sub tasks.  The Gantt chart displays a summary task bar over the grouped tasks. 

Analyzing the Critical Path

The critical path consists of the tasks and durations that determine the shortest time to complete the project.  The Network Diagram is the MS Project view that shows critical path (in red).  To manage and keep the project on track, the project manager must have skills in managing the critical path and tasks.  MS Project provides three tools to allow you to analyze the network diagram and critical path.  These tools are filters, formats, and special presentations of the Network Diagram.

Using filters: 

1. Select Network Diagram from the View bar.
2. Click on Project, Filter, and one of the filters.  Note Critical is one of the popular filters.  Only critical tasks will be displayed or filtered.

Custom filters will let you filter on more than one criteria at a time.  Formatting (changing fonts, font size, font effect or font color) lets one visually set apart critical tasks, for example.  

Crashing the critical path involves shortening the amount of time it takes to complete a project.  It can be “crashed “ by changing task information or by applying additional resources to tasks on the critical path.  These methods are summarized in the list below.  Project Managers must be careful to change things realistically; it must be achievable in real life and not just on paper. 

1. Shorten task durations for critical tasks.
2. Delete finish to start (FS) dependencies between two critical tasks.
3. Change finish to start dependencies (FS) between two critical tasks to start to start (SS) or finish to finish (FF) dependencies.
4. Add negative lag time to a finish to start (FS) relationship between two critical tasks, thereby allowing the tasks to overlap.
5. Modify the calendar on which the task is based to expand the available working time.
6. Eliminate date constraints, especially those that require that a task start on a particular date.

Adding Resources

Significant project management effort is expended on assuring that project cost is controlled.  MS Project provides a Resource Sheet for cost and resource information to be entered.  A resource is the person(s), material or equipment to be used in completing project tasks.  Resources must be defined prior to being assigned to tasks.

To define resources:

1. Double click on the Resource Sheet button on the View toolbar.
2. Enter the resource name and press tab to complete the rest of the fields on the worksheet.  
3. Double click on a resource to open the resource information dialog box and change resource availability, working time, and costs.

To assign resources to tasks:

1. Click on the Gantt Chart view on the View toolbar.
2. Click on the Assign Resources button on the standard toolbar.  A dialog box will open.
3. Click on the task in the Entry Table, and then click on the resource in the Assign Resources dialog box, and click Assign. 
4. The resource will now have a check mark beside it.  In addition, the resource name will appear on the Gantt Chart. 

Tracking a Project

Once all the tasks are entered, dependencies assigned, resources assigned, and project reworked, crashed and manipulated, it is time to save a baseline project.  Then you will be able to assign actual data to the project.   The baseline or budget can then be compared to the actual results of the project. 

A baseline can be established after all tasks are entered, all relationships established, and all resources entered and assigned.  Approval of the project plan should be obtained by management, and to the extent possible, by all individuals involved. 

To establish a baseline:

1. Check project statistics by clicking on Project, Project Information.  Then click the statistics button in the Project Information dialog box.
2. Click close on the Statistics dialog box.  If you are satisfied with the project status, proceed.
3. Click Tools on the menu bar, then point to Tracking, and click Save Baseline.
4. Click OK to accept the defaults. 

To view the baseline data:

1. Right click the Select All button for the Entry Table in Gantt Chart view.
2. Click Variance.
3. Drag the split bar to the right to display all the columns of information. 

To track progress, you must display the tracking toolbar:

1. Right click any toolbar, and click Tracking.
2. The Tracking Toolbar will display.
3. Right click the Select All button on the variance table, and click Tracking. 

You can enter actual values for tasks by using the fields displayed; however, the icons on the tracking toolbar will speed up the process. 

Closing a Project

Closing a project is not a function of MS Project, but rather a point in time when the project is completed and the project manager proceeds to close the project by printing final reports.  This assumes that all tasks are complete.  A meeting may be scheduled to do a post-mortem on the project and its successes and failures. 

The reports that may be printed at the close of the project are the Project Summary, Top-Level Tasks, Milestones, Completed Tasks, Budget, Task Usage, and Resource Usage.  These reports are printed from the View menu, then click Reports, and then double click the reports you want to print. 

Conclusion

MS Project is a useful tool for managing projects.  It does require some time to learn to use and properly apply, but the time invested may prove very beneficial in keeping a project on time and under budget.