What Is a Risk Matrix?
Imagine you’re the assigned project manager on a high-stakes project. The project scope is defined, key stakeholders are in agreement, you’re confident you can stay within the budget, and the project team is ready to dive in. They start working tirelessly to meet the agreed-upon objectives — and then an unexpected risk meets you midway through the project. You never saw this one coming, so you have no idea how you’re going to get the project back on track and see it through to success. If only you had identified and assessed the risk during the project planning phase, you might have felt more prepared to overcome it. That’s what a risk assessment matrix is used for and why you need one for your projects. What is a risk assessment matrix in project management? Risks in project management are unexpected events that may or may not occur and impact your project outcome in some way. According to the Project Management Institute (PMI), analyzing and managing risks is a key practice in project management. It improves the chances of successful project completion while reducing the consequences of any risk that occurs. Risks can appear related to any aspect of a project, including the budget, resources, processes, or technology, to name just a few. While it can be easy to assume that all risks bring negative consequences to the table, it’s essential to understand that positive risks can also occur during the project life cycle. A risk assessment matrix (sometimes called a risk control matrix) is a tool used during the risk assessment stage of project planning. It identifies and captures the likelihood of project risks and evaluates the potential damage or interruption caused by those risks. The risk assessment matrix offers a visual representation of the risk analysis and categorizes risks based on their level of probability and severity or impact. This tool is a simple, effective way to get a holistic view of the project risks for all team members and key stakeholders. Risk matrix example Let’s take a look at a simple risk matrix example for a project. We’re using a 5x5, five-point scale for the impact and probability in this matrix example, but use a scale system that works best for your team. For example, you can use a 3x3 matrix for less granularity. Impact or Severity Probability or Likelihood Insignificant Minor Moderate Major Catastrophic Very Likely Low-Medium Medium Medium-High High High Likely Low-Medium Low-Medium Medium Medium-High High Possible Low Low-Medium Medium Medium-High Medium-High Unlikely Low Low-Medium Low-Medium Medium Medium-High Very Unlikely Low Low Low-Medium Medium Medium In this example, you see risk categories ranging from low to high and likelihood ranging from very likely to very unlikely. Using it is as simple as any other matrix: You look for where both of your criteria meet to get your risk rating. Let’s say you’re the project manager for a new organization-wide software tool rollout and will be working with a consultant to implement it. For this project, consultant delays are possible due to a lack of resources on their end, and if a delay happens, the impact would be major because it would impact the entire rollout plan. We’d categorize this risk as medium-high based on the example matrix. What are the benefits of a risk assessment matrix? You might be wondering if it’s worth spending the time to assess risks and create a matrix for all of your projects. Well, the benefits of a risk assessment matrix speak for themselves: You can prioritize all risks with an understanding of the level of severity. Having an overview of all potential risks allows you to prioritize them against one another if multiple risks occur. This prioritization will benefit your project team and help keep them on track if the project does go awry. You can devise strategies and allocate resources for the unexpected. While it’s impossible to fully plan for uncertainty, acknowledging and understanding what risks could occur provides an opportunity to create action plans for those unexpected events. Appropriately planning for risks increases the likelihood of project completion and success. You’ll reduce or neutralize the impact of risks that occur. The unexpected consequences of a risk that’s not thought about in advance might feel more severe and damaging than a risk identified and analyzed early on. Having an awareness of the potential impact can reduce or neutralize the effect of a project risk before it occurs. Hope for the best, but prepare for the worst. What are the challenges of a risk matrix? While risk matrices can be very useful for identifying and preparing for project risks, they are not an answer to all your project problems. Here are some of the challenges of risk matrices: Inaccurate assessments: The risk matrix categories may not be specific enough to compare and differentiate between risk levels accurately. The severity and likelihood of certain risks are often subjective and therefore unreliable. Poor decision-making: Incorrectly categorized risks can lead to poor decision-making since you do not have an accurate picture of potential issues. Doesn't account for timeframes: Risk matrices don't differentiate between risks that could occur two weeks from now and risks that could occur in two years' time. There is no consideration of how risks could change over the years. Can oversimplify risks: The complexity and volatility of risks can be oversimplified — some risks remain the same over time, while others can change overnight. How do you calculate risk in a risk matrix? A risk matrix is a valuable tool for your project planning, and creating one doesn’t have to be complicated. Follow these steps to calculate risk for a project of your own. Step 1: Identify the risks related to your project To complete your risk assessment matrix, you need to start by having an in-depth understanding of your project — the scope, budget, resources, timeline, and goal. You’ll need this information to help you spot the potential risks. Identify as many risks as you can with your project team. Consider aspects like scope creep, budgetary constraints, schedule impacts, and resource allocation as the starting points for your risk identification process. Create a risk register complete with all of the identified risks, as it will make it easier to create your matrix. Step 2: Define and determine risk criteria for your project No two risks and no two risk matrices are alike, which means you’ll need to work with your project team and key stakeholders to define and determine the risk criteria you’ll use to evaluate each risk you’ve identified. Remember that two intersecting criteria need to be specified, each with its levels: the probability or likelihood that the risk will occur and the severity or impact the risk will have. Step 3: Analyze the risks you’ve identified After you’ve identified and described all of the potential risks, the next step is to analyze them. In your analysis, use your risk criteria to categorize each risk within its appropriate severity level and probability. Many matrices assign a number value to criteria. So, sticking with our example, you might rate the impact ranging from one (insignificant) to five (catastrophic) and do the same with likelihood, where one represents very unlikely, and five represents very likely. Using the matrix, it’s then easy to multiply severity times likelihood to get a number value. A risk that’s catastrophic and very likely would rank as a 25, whereas one that’s insignificant and very unlikely would rank as a one. It’s a simple and intuitive way to compare and understand risks. Step 4: Prioritize the risks and make an action plan Your final step is to prioritize the risks and create risk management plans to mitigate or neutralize them, with your risks categorized accordingly. You’ll want to outline the steps you’ll take if the risk does occur and the strategies you’ll deploy to help get the project back on track. How do you create a risk matrix in Excel? Wondering how to make a risk matrix in Excel? Start by building a table that reflects the probability and severity scales you’ve defined for your risk assessment. Here are a few tips to help you get started: After you’ve created your table, add your labels to the rows and columns. Use the columns for severity and rows for the likelihood of occurrence. Once you’ve labeled all of your column and row headers, add the definitions for each probability and severity level you’ve outlined with your team beneath the header title. This helps ensure the team is on the same page when ranking risks within the matrix. Use formatting options to color coordinate the matrix for the best visual representation. You can use the stoplight system (red, yellow, green) for high, medium, and low risks, respectively. Using different colors allows any viewer to easily distinguish the risks based on the likelihood that they will occur and the amount of damage or interruption they’ll cause. How do you create a risk matrix in Wrike? If an Excel sheet isn’t your jam when it comes to tracking and monitoring risks, you can use Wrike to create a risk matrix. Some of the key features Wrike has that you can use to assess project risk include: Custom fields that allow you to build out the severity and probability any way you want to. You could turn these into drop-down rankings on a one-to-five scale or use the text option to label your categories. Table view to provide greater visibility into the risks and a similar table to the one you can create in Excel. Reports and calculated fields to automate the data associated with your assessed risks. Interactive Gantt charts that allow you to create task dependencies and streamlined automation of changing project dates and deadlines. Project progress can be monitored in real-time, which allows your team to keep risks top of mind, so the important stuff doesn’t get overlooked. The best part about using a platform like Wrike is that it can automatically update and adjust as your project progresses, saving you from the manual work required in Excel. What do you do with risk matrix results? So, what does a risk matrix accomplish for you? The short answer is that your matrix results help you create a risk response plan. To start with, it’s crucial to address the risks that are ranked high or extreme. Depending on the project and your team’s resources, you may only need to monitor the medium and low-risk categories rather than taking immediate action. Finally, reference your risk matrix throughout the project until it’s marked complete and successful. Don’t make the mistake of not committing to risk management as an ongoing process. Using this tool is a powerful way to support your project team and mitigate any bottlenecks that stand in the way between them and a winning project. Are you ready to get ahead of the game and stop losing sleep over project risks? Sign up for a free trial of Wrike to start building risk matrices with your team today.
Everything You Need to Know About Rough Order of Magnitude (ROM) Estimates
A rough order of magnitude estimate, also known as ROM, is an estimation of a project’s level of effort and cost to complete. ROM estimates take place early in a project life cycle and guide strategy and planning choices. In this article, you’ll learn more about ROM estimates and how they are used in project management. Plus, keep reading to discover examples and how Wrike could be used to assist in creating a template for your own rough order of magnitude. What is the rough order of magnitude? A rough order of magnitude estimate is a general estimate of a project's level of effort and cost. It's usually performed during the selection and approval stage of a project. Generally, it’s used for estimating a project budget that doesn’t have a lot of detail. Project estimating is a vital aspect of project management because it helps determine the total budget for the project and whether or not it’s feasible companywide. It also helps keep track of the project's milestones and budget at the very beginning (more on that later). A rough order of magnitude is most commonly used for project screening. ROM is typically meant to be given to executives who need a high-level overview of how much work might cost. This is especially helpful when they don’t yet have the mandate to do a deep dive into the scope and requirements of the work. Comparing the ROMs of different projects helps identify which projects should be prioritized and which ones should be shelved. It can also help uncover and prevent scope creep later on. This tool also helps decision-makers at other levels of the organization make informed choices regarding the project's complexity and costs. That information is critical for proper scope planning before project kickoff. It’s important to know that a ROM estimate is often used for information purposes at the beginning of a project and it’s suitable for use for the lifetime of the project. How to make a rough order of magnitude estimate Estimating a ROM is often thought of as an art. They are quick to make, but the trick is learning how to make them well. Those who are more experienced in coming up with these estimates may have their own way of executing this process. Regardless of how well you understand the rough order of magnitude, it is important to consider the various factors involved in developing one. These include: A guesstimate range of what resources the project will require based on the information you have on hand Opinions from experts and/or higher-ups who hold a stake in the project A variance of at least -25% to +75% Keep in mind that, when calculating ROM, the goal is to provide a rough estimate that is largely accurate even if it’s not necessarily convenient for your plans. By this, we mean you may find it tempting to choose figures on the more conservative side in order to achieve a more desirable outcome. Unfortunately, using inaccurate stats defeats the entire point of creating the estimation in the first place. Great research can help illuminate areas of your rough order of magnitude estimate where it may be tempting to let bias enter into the equation. All that being said, a ROM estimate's variance is not significant enough to deter you from creating one. A ROM estimate provides a starting point for moving forward in much the same way a budget estimate is also used to determine your base. For example, instead of just presenting single-point estimates, managers should present budgets as a range. Remember: the estimate is derived from the available information. If information is missing, you’ll have to make do with what you do know for sure and move forward from there. In fact, you can expect to improve the estimate as the project moves forward. During the planning and implementation phases, the requirements and information will be refined. As you go along, you’ll learn through trial and error what the reality of the project actually is. Rough order of magnitude techniques One technique for creating a rough order of magnitude estimate is known as a definitive estimate. A definitive estimate is a technique that involves estimating an individual project phase or task's level of effort. Planning with this information upfront makes it easier to plot out workloads on visual charts while keeping your team on the same page. This step typically takes a number of hours to complete, but it is a successful way to get an accurate idea of the time and cost of any project. Other popular techniques and procedures for estimating costs include PERT time estimation, COCOMO, and function point analysis. Program Evaluation Review Technique (PERT) PERT charts are used to plan out tasks that will take a certain amount of time to complete. They can also be used to coordinate team members. Constructive Cost Model (COCOMO)COCOMO is a regression model that can be used for estimating the various factors involved in tech and software project management. It is typically used for estimating the size, effort, cost, and quality of a project. Function Point Analysis (FPA)Function Point Analysis is a method of estimating a company's clear business significance. It helps in the evaluation, management, and control of software development. When estimating ROM, it is best to try and estimate in buckets of time and costs. Doing so helps minimize the number of, well, numbers that are required to provide a complete and accurate estimate. Rough order of magnitude examples There are two ways to think about estimating ROM. You can create effort ranges or buckets with approximate figures that any task can fit into. Alternatively, you can use historical data to guide decision-making. Here are some hypothetical rough order of magnitude examples: Creating buckets In this example, a project manager will define effort ranges such as small, medium, and large. Within each range is a total number of hours, personnel, and/or budget needed for tasks that fall in that category. For example, a small bucket may indicate that a task will take two to four hours and is relatively simple or affordable to complete. It all depends on the specific project. Here is a very simple example. Let's say you're considering eating a sandwich for lunch. You know that tasks such as spreading peanut butter and jelly onto two slices of bread would fall into the small category — low effort, low time, and perhaps even a single knife instead of two. However, if you noticed that you're currently out of bread and you know it would take 20 minutes to drive to the store, that task would fall into the medium category because it would take considerably more resources to complete when compared to the spreading task. Historical data Historical data means pulling information from past projects. These projects may have similar tasks, goals, or outlines. This information is good to have on hand in your project management solution. You can use data from projects that didn't go as well as you'd hoped in order to refrain from repeating his mistakes. You can also use data from projects that went above expectations to see where you can replicate those choices here. Let’s continue with our sandwich example. You may have found that in the past when you were craving peanut butter and jelly, it was worth it to you to make the drive. In fact, it also allowed you to run several other errands (a.k.a. projects) at the grocery store. Based on this historical data, you may find that, despite the effort involved, the payoff was worth it in the end. So choosing this path again will be profitable. First-hand experience First-hand experience refers to how experienced the person creating the rough order of magnitude is in this particular field, project type, or as a project manager in general. An expert who understands project management will likely come up with a more accurate ROM than someone on their first day of work. First-hand experience is valuable because you have plenty of anecdotal evidence to back up your estimations from other related projects. It's also helpful because it allows planners to be intuitive about the process and consider the people involved. For example, you may find that a particular supplier often experiences delays. Although the supplier representative promises otherwise, you've seen it happen time and time again. Knowing this, you can factor that into your rough order of magnitude. Now we’ve come full circle with our peanut butter and jelly project. You may have learned from first-hand experience that, despite your intense craving for it, these sandwiches aren't actually worth it for you. You may even have regretted eating them right after you finished and wished you’d opted for a turkey sandwich instead. Knowing this, you may draft an estimate that confirms the amount of resources and effort needed will not have the ROI expected and it would be better to not move forward with it after all. This information isn’t something you can necessarily track with a report. It’s simply a memory of what you’ve experienced in the past. Using this knowledge will help you make better, more informed decisions in your ROM with information you can’t find elsewhere. How to use ROM in project management Project estimation techniques help managers identify the most critical elements of a project and provide them with accurate estimates. These techniques can also be used to plan for resource allocation. It is important that you have an estimate in place before you start a project. Without an estimate, you may not know how long it will take or what resources will be needed. Cost is often one of the most challenging constraints in project management. Having enough money to complete the project is one of the most critical factors in managing it. Creating a ROM will help you understand whether or not it’s financially viable before you even begin. Another key component of a project is time. Having the ability to determine the duration of the work and when specific tasks will take place is very important to project planning. By estimating your project schedule, you can arrange for the people and resources that you need when they are needed. It also allows you to set expectations for the clients. You can create a rough order of magnitude for any project. But there are several project management situations in which it may be necessary to come up with a ballpark idea of what resources will be needed: Larger than normal projects where you will need to provide more detailed information about the project Projects that involve teams across different countries where there may be varying costs and exchange rates Projects that are customized to the client or unique to your team where the product or service is innovative and the scope of the project is being managed through Agile project management methods Even if your project doesn’t fall into one of these categories, a ROM can be used to determine whether or not it’s viable. This is helpful when you’ve got limited resources and more than one project to choose between. Using Wrike to create a rough order of magnitude template Wrike is a project management tool that streamlines the process of organizing, creating, and coordinating a rough order of magnitude. First, start by checking for any historical data from relevant projects you’ve successfully completed. All Wrike users have access to their own detailed project reports. If you have historical data, you can go straight to a more detailed cost figure. It will give you a more accurate and detailed estimate. If you don’t, continue creating your ROM. Then, start breaking the big components of the project down into smaller pieces. Some planners use the top-down approach or the bottom-up approach, both of which can be accomplished with the help of Wrike. A top-down estimating technique breaks down a project into discrete phases and tasks. This method works by estimating the overall time for the project, as well as the phases and work tasks that will be completed within that time frame. If a client tells you that the project has to be done in six months, a top-up approach allows you to estimate how much time you can dedicate to each activity within the project. A bottom-up estimate is a technique that works by estimating multiple tasks and aspects of a project. This step-by-step process combines the various estimates into one final project estimate. In project management, orders of magnitude are typically referred to as broad-brush categorizations of sizes. So use a range when adding in timelines for individual phases and expenses. Tip: don’t forget about project costs spent preparing the ROM and the project management itself. This will take up about 20% of your estimated total time allotted to the project. Next, go above and beyond by using Wrike to calculate risk. Project risk is a set of events that could significantly affect the quality or schedule of a project. It can be triggered by various factors such as unforeseen delays, budget cuts, and legal issues. By estimating the risks involved in a project, you can plan for how those risks will affect the project and develop a risk management strategy later on if you feel that the ROM is convincing enough to adopt the project. Tip: If you’re stuck, talk to your finance department to see if they can help you get a better idea of what things cost. Finally, consider what project planning may look like. Project planning for Agile projects is usually done in phases, with estimates being created initially before the beginning of the sprint. These estimates are then updated during the sprint. Estimation can also happen during a sprint retrospective, where you update the backlog based on the outcomes of the previous sprints. It can also be done during the sprint planning session. The project team is responsible for estimating projects and managing the estimates. They are also involved in the development of the project's documents and databases. Having one central hub for all project estimates makes it easier to organize and communicate your vision and ROM results. As you progress through the project, you should start to produce smaller ranges for accuracy. Over time you will reach a cap for each category that is both realistic and attainable. As the project details become more detailed, the accuracy of the ROM estimates decreases until they are no longer accurate. In conclusion The more data you have about your project, the better it is to draft current project estimates. A project estimation tool can help you build up estimates and track against actuals. It can also help you improve your estimates by recording errors and lessons learned. Discover how Wrike can help you improve your planning and execution with our free trial.
How Is the Delphi Technique Used in Project Management?
It’s no secret that project management requires decision-making, planning, and shared understanding amongst stakeholders, but sometimes that’s easier said than done. When it comes to reaching a consensus during a project, it can feel impossible. But what if there was a technique you could use to help solve the impossible? That’s where the Delphi Technique comes in. We’ve rounded up the basics of the Delphi Technique, how it applies in project management, and the benefits and drawbacks of using it. What is the Delphi Technique? According to the Project Management Institute (PMI), the Delphi Technique was developed in the 1960s due to changing technological environments and the impact this had on assessing and forecasting the future. It is also referred as the Delphi Method or Delphi Studies. To put it simply, the Delphi Technique is used to make decisions about complex issues based on individual opinions. In this method, a group of experts writes down and shares their thoughts about a problem with a facilitator. Each expert’s view is compiled into a summary report by the facilitator. The experts then review the information and provide updated predictions to the facilitator to produce a new report. This process continues with systematic reviews until participants reach a consensus or agreement on the topic. How to use the Delphi Technique Sounds simple, doesn’t it? Here’s a rundown of how to use the Delphi Technique: Determine the problem you want to solve. What is the problem you are trying to solve? Be as clear and specific as possible. Understanding the issue at hand will inform who the experts are. Identify and engage your panel of experts. Now that you know what you’re trying to accomplish or answer, you should have a good idea of who you need to include in the process. Choose a facilitator to manage the process. Select a neutral person who has enough understanding of the topic to understand the conversations and compile results without bias. Start the process. Use questionnaires and surveys to gain an understanding of experts’ views and consolidate information. Create a summary report. Once you’ve gathered the group’s responses, you should remove irrelevant information and consolidate the results. Circulate the report back to the group to contemplate their peers’ ideas before the next round of questioning. Ask more questions, summarize the results, and repeat. Cycle through as many rounds of questionnaires and surveys as you need until a consensus emerges. In between, continue to create anonymized reports to share back with the structured group to use in their considerations. Reach consensus and find the way forward. Once your group of experts reaches an agreement, you should analyze the results and create plans to address future risks and opportunities accordingly. The Delphi Technique isn’t an exact science — it’s a process. You might need only two rounds of questionnaires to reach a consensus for more minor problems but upwards of 10 rounds for more complex ones. Regardless, keep the desired goal in mind: achieving agreement based upon expert viewpoints and guidance. Delphi Technique in project management Sure, reaching consensus is essential in projects, but where exactly do we see the Delphi Technique used in project management? The method is commonly used for both scope management and risk management. Using the Delphi Technique for scope management is valuable because it can help stakeholders reach an agreement on the scope of any given project. This helps eliminate big reasons for project failure, such as lack of clear requirements and inadequate planning. For risk management, the Delphi Technique can help project teams predict and better prepare for future risks. That’s what the method was created to do in the first place: to help forecast for the future and get ahead of potential issues. Delphi Technique examples You’re probably getting a grasp of using the Delphi Technique in projects, but let’s run through a quick example related to scope management. Let’s say your business is kicking off a multi-phase project. You are going to implement a Project Management Office (PMO) and a customized project management methodology across your organization. Your experts, or key stakeholders, will likely have different views on what’s needed. They might also want other elements from the PMO, such as resource allocation, a template library, or project reporting assistance. You would use the Delphi Technique to reach a consensus on the scope of the PMO implementation as the initial phase of the project and then prioritize the elements of the following phases. The advantages of using the Delphi method Successful projects require stakeholders and project teams to be on the same page, and that’s what the Delphi method can do for you. Here are the advantages of the Delphi Technique: There’s potential to meet consensus rapidly. Have you ever been in a project meeting and needed to make a decision quickly but couldn’t get everyone in the room to agree? It happens to all of us. The Delphi Technique can help you achieve consensus and do it quickly, depending on the issue at hand. Less “groupthink” and more individual contributions. Sharing opinions, especially in a professional setting, can be challenging, particularly when there are a couple of dominant speakers in the room. One major perk of this method is that anonymized answers allow everyone to express and share their opinions freely. It’s cheap and quick to conduct. It’s relatively easy and inexpensive to use the Delphi Technique. You don’t need a lot of fancy tools or expensive materials to achieve results — just some time and a way to write down and compile ideas. The drawbacks of using the Delphi analysis As with any technique, you might experience some challenges with the Delphi Technique along the way. One key challenge: While it’s possible that you can achieve consensus quickly, it could be a long and tedious process to reach an agreement. If multiple rounds of questionnaires are required before your group hits consensus, you could fall behind schedule and put your project at risk. Another hurdle is that the technique is designed to help you reach an expert consensus, but just because your group of experts agrees doesn’t necessarily mean you’ve found the best or the right way to solve a problem. Don’t be mistaken – level-setting opinions and getting everyone on the same page is a huge win, but it’s worth noting the difference between consensus and identifying the best possible solution. Using Wrike for the Delphi Technique As we mentioned, you don’t need any fancy tools or a big budget if you want to use the Delphi Technique. However, once you’ve reached a consensus about a particular problem related to a project, a project management tool may come in handy to help ensure you follow through with what all experts have agreed upon. With Wrike, you can follow up on action items from your Delphi method analyses and put together full project schedules. The Delphi Technique can help you determine the next steps of a project, and Wrike will help ensure you stay on track to achieve those next steps without fail. Ready? Get started today with a free trial of Wrike.
A Quick Guide to The Linear Scheduling Method
A linear schedule is a project management tool used to present a schedule in two dimensions, such as time and distance. This is normally used for projects with linear construction properties or repetitive tasks, such as the construction of roads, bridges, and railways. In this article, we will explain what the linear scheduling method is, how it benefits projects, and how to execute it. Keep reading to discover linear scheduling examples and tools you can use to perfect your next project plans. Linear scheduling method explained The linear scheduling method is a process for developing project schedules that take into account the various elements of a work that are linear, continuous, or repeated. Most commonly used in construction management and engineering, the quantity of work performed on a project is used to determine the duration of a work relationship and the work rates for each crew member. Although the term “linear scheduling” is often used to describe the steps involved in preparing linear schedules, it can also be referred to as the development of a graphical representation of a project schedule. You may also hear the linear scheduling method referred to as “time chainage” or “line-of-balance”. The various elements of the linear schedule are represented on a grid with coordinates that define when and where the work begins and finishes. A range of display methods is also used to present the varying activities in different formats. What benefits does a linear schedule provide to a project manager? The linear scheduling method is simple. Not only is it easier to read, but it’s also easier to organize. It’s helpful for communication. Contractors, stakeholders, and clients can understand your project plans from this information alone. It covers everything they need to know about what’s needed, where and when the work will take place, and how productive the work will be. Linear scheduling mitigates risk. Project managers can easily monitor and report on the various activities that occurred during the execution phase. Even if unforeseen circumstances happen during the execution phase, this can be easily revisited to improve the project's productivity using this method. It’s flexible. The time-location chart is useful for extending project benchmarks as needed because it provides a list of the factors that can affect the project's schedule, so you know what to expect. The linear scheduling method helps inform decision-making. This method helps the project manager identify and take action on the lapses that occurred during past projects. It also helps with preventing them from happening again. It uncovers task dependencies. A time-location diagram is a great tool to visualize the various interrelated activities in a project. It can help you understand the sequence of activities and their importance. For example, in construction, the arrival of material at a site may cause delays in the mobilization of heavy equipment, resulting in costly downtime if not forecasted. Which industries use linear scheduling? Linear scheduling is most commonly used in the construction industry for straightforward projects such as standard pipelines, highways, and railroads. However, any industry with projects that have linear continuous and repetitive tasks can take advantage of this method. It’s also effective for managing compliance and continuity across repeat projects. Linear scheduling method in construction management For construction management, this method involves repeatedly running a set of projects in each location for the duration of the work. Some examples of prominent projects that use this method include highway construction and airport runway projects. One of the most important factors involved in planning a linear construction project is ensuring that the work of the crew does not interfere with the activities of other workers. It’s important to note that traditional planning and scheduling techniques commonly used for linear construction projects do not account for the various factors that affect the planning and scheduling of such projects. Other methods, such as line-of-balance and vertical production methods, are often used to improve the planning and scheduling techniques for linear construction projects. Linear scheduling examples Tunnel construction with the linear scheduling method [caption id="attachment_471943" align="aligncenter" width="772"] Source: James Wonneberg, PE, CCM via Slideshare[/caption] The x-axis depicts the location between the two main construction points of this project. The y-axis represents the time period over which the work will take place. Project phases are color-coded in orange, blue, green, and red for easier interpretation. Notice how each of the tasks is associated with location and time. For example, during Q2 of 2017, tunnel site 10+00 will be prepped. Then, in Q3 of 2017, tunnel site 10+00 will be constructed while tunnel site 110+00 is prepped. Not only is this easy to understand at a glance, but it also gives individual team leaders a solid understanding of expectations, deadlines, and tasks that need to be completed by their group. Building a road with the linear scheduling method [caption id="attachment_471949" align="aligncenter" width="801"] Source: Columbia University[/caption] In this linear scheduling method example, “A” represents the beginning of the road, and “E” represents the end of the road. The lettered segments each represent a different section of the road that will be built in order. The numbered bars correspond with a different repetitive process associated with this example road’s construction, such as prepping the site and pouring concrete. As you can see, each road segment will repeat the same set of repetitive tasks. After tasks one and two are completed on road section A, section B begins the same list, and the pattern continues onward. This super simplistic model may need a corresponding document to explain the task lists and locations, but it does visualize the big-picture aspects of the project while also being actionable. Why choose Wrike as your linear scheduling software? Wrike is a project management tool designed to streamline repetitive tasks and maximize productivity. Once you have your linear schedule in place, you can effectively execute it with Wrike using our Recurrent Tasks, Project Schedule Template, and Automation Engine features. With Recurrent Tasks, project managers can easily create and duplicate tasks assignments complete with estimated timelines, important details, and assigned team members or approvers. And when you opt for recurrent tasks to be created monthly or yearly on a specific day of the month, you can choose to automatically reschedule the task if this day turns out to be a weekend which saves time you would spend combing through calendars to triple check dates. In Wrike, the Project Schedule Template gives managers the ability to duplicate project plans from previous engagements. Not only does this save time, but it also ensures that projects remain compliant. And if you need to customize any of the details, Wrike makes it easy to do so. And finally, Wrike’s Automation Engine automatically updates and simplifies processes. It works seamlessly with existing rules to enable users to easily modify and streamline their actions. It also notifies when project obstacles appear and manages your team's timeline with custom reminders and notifications about overdue tasks, task dependencies, and when it’s time to move on to the next step. Ready to maximize the power of the linear scheduling method? Get started with Wrike’s two-week free trial.
Risk vs Issue: Everything You Need to Know
Whether you realize it or not, we make risk vs. issue calculations all day long. Let’s consider one issue: You’re running late for work. Why not drive through that red light? Well, because of the risk: Getting pulled over by police, or worse, putting peoples’ lives in danger. So, you wait out the red light. That’s an easy one. Managing risk vs. issue in project management isn’t always so cut-and-dry. But understanding the difference between risk and issue does boost the chances that your project will be a success. Here’s what you’ll need to know to navigate the world of risks and issues in complex projects. Risk vs. issue: What’s the difference? An issue is an obstacle or challenge that’s already present. A risk is a potential obstacle that may arise in the future but doesn’t necessarily have to. It might sound as if issues are always greater challenges than risks. But the two can vary wildly in terms of degrees. For example, a broken pinky toe is a manageable medical issue. But ignoring a medical risk like a clogged artery can be far more serious. As a project manager, your job is to evaluate both, so you never lose the patient (or the project). Why is it important to note the difference between a risk and an issue? Effective risk analysis hinges on estimating the potential pitfalls in running your project. Ideally, the planning phase will tackle them in reverse: You’ll try to lower the risks at the outset to avoid them becoming full-blown issues. But you’ll need plans for both. To make your own complicated project run smoothly, you need to start backward. Think about the biggest risks with your team and develop plans for them. Run a risk assessment before the initial phases. Remember the old adage that “an ounce of prevention is worth more than a pound of cure.” This is all the more important when launching a complex project. Risk vs. issue examples in project management Still feeling a little confused? Let’s take a look at a couple of examples of risk vs. issue in project management. Boeing’s 787 Dreamliner: Risk complexity leading to inevitable issues Consider the problems with the unveiling of Boeing’s 787 Dreamliner. It was “a more complicated airplane, with newer ideas, new features, new systems, new technologies,” according to a Boeing engineer. From the outset, this complexity made it difficult to foresee specific issues. But given the novelty of the project, some risks were already present. After several delays — and an additional $10 billion in budgeting — Boeing eventually “outran our ability to manage it effectively,” according to a release from the company. It’s tempting to look at this risk vs. issue example from the outside and imagine that it was an unlucky project with too many issues. But Boeing’s ambitions meant higher levels of risks. Without enough risk management, project issues become inevitable. Bank of America: When risks prove more intense issues than you imagined In 2011, Bank of America rolled out a new pricing initiative: $5 per month for customers to get access to debit funds. Bank of America anticipated some customer blowback — after all, that’s common whenever prices go up. But customer reaction was far more intense than Bank of America imagined. One customer started “Bank Transfer Day” on Facebook to protest the fees. Customers moved their money out of their Bank of America accounts in droves. Efforts like these had enough impact that the brand was eventually forced to back down on its new fees. In this case, it wasn’t that Bank of America hadn’t adequately foreseen the risk. They simply hadn’t imagined the risk would manifest as such an intense issue during the rollout phase. Had they spotted this issue earlier, the launch may have played out differently. Issue log vs. risk register: what is the difference? In project management, leaders typically turn to two tools to manage these variables. For risk, they turn to risk registers. This register lists the various risks along with their probabilities and potential timing hazards. (Note: A risk matrix is another effective tool for weighing and predicting risks.) For issues currently affecting the project, an issue log is simply a list of the current problems a team member needs to solve. In one research paper, project manager N.K. Shrivastava says that when a risk manifests as an issue, he makes two key changes: Adding the issue to the issue log to assign it to the relevant team member Flagging the risk in the risk register for better project planning in the future, especially noting which risks were most likely to manifest as issues By flagging the risks that become issues, Shrivastava also grows as a project manager. He learns which issues to spot in potential future projects, making him better at risk assessment for future work. One key difference here: A risk register can be a list of potential obstacles that you create at the outset, while an issue log is only a list of real obstacles. One is essentially in the future tense, while the other is in the present or past tense. How to use Wrike for managing risks and issues In project management, risks are everywhere. There are so many, in fact, that there are even positive risks: unforeseen events that help your project along. Wrike can help you get started with risk assessment by providing the information and templates you need to begin your evaluation. The key is in using previous risks to inform your future work. If you’re starting your first project, use Wrike’s risk assessment templates to better predict, record, and measure the risks associated with your first project. With any luck, your analysis at the outset will help you minimize issues along the way, so you can get to the project wrap-up celebration on time and on budget. Ready to foresee risks, manage issues, and have a more successful project? Start your free trial of Wrike today.
Inventory Management: Definition, Benefits, and Techniques
Businesses that effectively use inventory management are destined to succeed. With the help of inventory management software, companies can automate the process of ordering, storing, and optimizing their goods in a single place. In this article, we will expand on the importance of inventory management, as well as the different inventory management techniques, benefits, and examples managers need to know. Keep reading to learn the key to inventory management that will give you a competitive edge. What is inventory management? Inventory management refers to the process of storing, ordering, and selling of goods and services. The discipline also involves the management of various supplies and processes. One of the most critical aspects of inventory management is managing the flow of raw materials from their procurement to finished products. The goal is to minimize overstocks and improve efficiency so that projects can stay on time and within budget. The proper inventory management technique for a particular industry can vary depending on the size of the company and the number of products needed. For instance, an oil depot can store a huge inventory for a long time. Or for businesses that deal in perishable goods, such as fast-fashion items, keeping on top of your inventory can be very costly. One way to account for inventory is by grouping it into four categories: first-in-first-out, last-in-first-out, weighted-average, and first-in-first-out. Raw materials are the components used by a company to make its finished products. Depending on the type of company that it is dealing with, different inventory management methods are used. Some of these include JIT, material requirement planning, and days sales of inventory. Other methods of analyzing inventory can also be used depending on national and local regulations. For instance, the SEC requires public companies to report the existence of a so-called LIFO reserve. Having frequent inventory write-offs can be a red flag that a company is struggling to sell its finished products or is prone to inventory obsolescence. Learn even more about inventory management from Walton College’s Supply Chain Management program’s introduction on the subject covering everything from forecasting to point models: Why is inventory management important? One of the most valuable assets of a company is its inventory. In various industries, such as retail, food services, and manufacturing, a lack of inventory can have detrimental effects. Aside from being a liability, inventory can also be considered a risk. It can be prone to theft, damage, and spoilage. Having a large inventory can also lead to a reduction in sales. Both for small businesses and big corporations, having a proper inventory management system is very important for any business. It can help you keep track of all your supplies and determine the exact prices. It can also help you manage sudden changes in demand without sacrificing customer experience or product quality. This is especially important for brands looking to become a more customer-centric organization. Balancing the risks of overstocks and shortages is an especially challenging process for companies with complex supply chains. A company's inventory is typically a current asset that it plans to sell within a year. It must be measured and counted regularly to be considered a current asset. What is the goal of inventory management? The goal of any good inventory management system is to help warehouse managers keep track of the stock levels of their products. This means allowing them full transparency into their chain to monitor the flow of goods from their supplier. The benefits are both operational and financial. Not only will it serve to improve performance, but it’s also useful for preventing theft with the help of product tracking and security. Managers can also aim to use their inventory management plan to monitor sales procedures which leads to better service. Inventory management is especially useful for businesses that want to effectively manage seasonal items or new bestsellers throughout the year without disrupting the rest of their chain. Benefits of inventory management The main benefit of inventory management is resource efficiency. The goal of inventory control is to prevent the accumulation of dead stocks that are not being used. Doing so can help prevent the company from wasting its resources and space. Inventory management is also known to help: Order and time supply shipments correctly Prevent theft or loss of product Manage seasonal items throughout the year Deal with sudden demand or market changes Ensure maximum resource efficiency through cycle counting Improve sales strategies using real-life data Inventory management system examples Although inventory management can change from industry to industry, there are some big-picture themes worth learning about. Here are three major retail categories with real inventory management system examples: Grocery store chains Modern groceries have managed to manage inventory coming in from different suppliers all over the world. Giving consumers several different types of internationally-grown produce in both organic and non-organic varieties at an affordable price, even when the fruits and vegetables aren’t in season, is a modern marvel thanks in part to inventory management. Overseeing stock in real time and even setting up automated replenishment systems is mission-critical to many. Online retailers On average, Amazon ships approximately 1.6 million packages from their brand to third-party sellers per day. Their Smart Warehouse uses robot and human help to get the job done, but it’s inventory management that keeps it all rolling. According to Tech Vision, “Amazon’s management technique, along with all that automation, have made the business astonishingly lean and mean by historic standards.” Toilet paper companies The inventory management of toilet paper companies was in the hot seat in early 2020 as panic-buying led to shortages nationwide. As demand outgrew supply beyond anything the brands had seen before (about 845%), it’s no surprise why there has been an increased focus on inventory management since. Their secrets to overcoming this unprecedented event? Temporarily narrowing down their portfolio of products, sending out “defective” yet functional rolls, and even transitioning to a direct-to-consumer model, all with the help of strong inventory management systems. Steps and types of inventory management Most product inventory management systems follow the same basic steps for finished products: Products arrive at your warehouse Products are checked and stored Managers or crew update inventory levels Customers place an order Customer orders are approved based on inventory Products are pulled and packaged Inventory levels are updated again This process is fairly straightforward and often involves help from software. There may be variations depending on what type of inventory management you are doing. Here are the main types you should know: Raw materials This refers to pieces of your product that need to be shipped to you and assembled by your team. Inventory systems that track these must account for supplier timelines. In progress Products made from raw materials and are currently being assembled or grouped fall under this category. This stage of inventory management may have one or several active projects at a time. Repair Scheduled maintenance, updates, and refurbished goods all count toward this segment. Repairs may be handled in-house or in collaboration with a third party. Finished goods Any good that is ready to ship to businesses or consumers is considered finished. These need to be updated regularly and constantly monitored to meet demand. Inventory management techniques Without accurate inventory information, it can be very difficult to make decisions that affect your business. There are two main methods of keeping track of inventory: periodic and perpetual. The main difference between these is how often data is updated. Regardless of how often you track inventory, you may want to use one of the following inventory management techniques: ABC Analysis ABC (Always Better Control) Analysis is inventory management that separates various items into three categories based on pricing and is separated into groups A, B, or C. The A category is usually the most expensive one. The items in the B category are relatively cheaper compared to the A category. And the C category has the cheapest products of all three. EOQ Model Economic Order Quantity is a technique utilized for planning and ordering an order quantity. It involves making a decision regarding the amount of inventory that should be placed in stock at any given time. The order will be re-ordered once the minimum order has been reached. FSN Method This method of inventory control refers to the process of keeping track of all the items of inventory that are not used frequently or are not required all the time. They are then categorized into three different categories: fast-moving inventory, slow-moving inventory, and non-moving inventory. JIT Method Just In Time inventory control is a process utilized by manufacturers to control their inventory levels. This method saves them money by not storing and insuring their excess inventory. However, it is very risky since it can lead to stock out and increase costs. Minimum Safety Stocks The minimum safety stock refers to the level of inventory that an organization maintains to avoid a possible stock-out. MRP Method Material Requirements Planning is a process utilized by manufacturers to control the inventory by planning the order of the goods based on the sales forecast. The order is usually based on the data collected by the system. VED Analysis VED is a technique utilized by organizations to control their inventory. It mainly pertains to the management of vital and desirable spare parts. The high level of inventory that is required for production usually justifies the low inventory for those parts. How to improve inventory management with Wrike One of the most critical factors that a company should consider is the accuracy of the information presented in its inventory databases. The data should be updated regularly to prevent it from getting distorted. Wrike is a project management solution that can help you do exactly that. With Wrike's product management tools, you can manage all of your product team's activities in one place and get the most out of every project. Wrike's product launch automation helps accelerate product launches with a streamlined approach. Managers can easily keep inventory and shipping processes in check by planning and allocating tasks to the right people all from one central dashboard. Wrike also makes it possible to create workflows that keep everyone up-to-date with the latest inventory progress. Tools like interactive charts and task dependencies help team members at every level identify and prevent delays. You can communicate with both vendors and clients through the advanced CRM built directly into the platform. Plus, Wrike's advanced insights tools allow you to track progress in real time, which is important for any successful inventory management strategy. Why choose Wrike as your inventory management software? Wrike is a project management solution that makes it possible to achieve all your inventory management goals while also maximizing the benefits of the process. Regardless of which inventory management technique you use, Wrike can help you take the process step by step to ensure your inventory is always accurate regardless of what type you’re managing. Improve your inventory management plan today with Wrike’s two-week free trial.
How to Conduct Pareto Analysis Using Pareto Charts
The 80/20 rule, also known as the Pareto Principle, states that 80% of the benefit can be achieved by 20% of the work. The Pareto analysis uses this concept to identify which parts of a project can be done efficiently and which can be avoided. It can be used to decide which problems should be solved first. In this article, we’ll explain how to perform Pareto chart analysis and how it can be used to improve any project. We’ll also get into some vital tools you can use to help teams work smarter, not harder. What is a Pareto chart? The Pareto chart is a visual representation of the most important factors in a given field or project in order to identify and prioritize issues. In general, this tool can be used to identify the most critical factors in a given product or process. For example, in quality assurance, the Pareto chart helps identify the most prevalent sources of defects. The Pareto chart itself is a bar graph with two axes. The left axis shows the frequency of occurrence, which is the sum of the total number of occurrences and the cost of doing so. The right axis shows the cumulative function of the total number of occurrences. The values for each category are depicted in descending order. And the final total is represented with a line drawn at 80% on the bar graph. Any bars rising above that line are considered the problems that, if solved, would have the biggest impact on the project. The Pareto chart can be generated by various means, such as creating Excel spreadsheets, statistical software, and online quality charts. What is a Pareto chart used for? A Pareto chart helps you identify the causes of the various problems and the issues that need to be solved to get the most significant improvement. Here are some of the many ways it can be used: Visually represent project issues to find which have the greatest impact Communicate priority levels to stakeholders Isolate individual process hiccups so that they can be better understood Find the most impactful problems and eliminate them before they cause issues Reallocate workloads so that team members companywide are maximizing their impact and productivity When to use a Pareto chart in project management A Pareto chart is a tool that many people use to analyze different types of problems. It can also identify the most significant issues in a process. In project management, this means everything from big-picture project phases to individual task workflows. When roadblocks come up, managers can use the Pareto analysis to quickly identify what is causing bottlenecks or delays. From there, they can use their project management tool to delegate troubleshooting, adjust task lists, or shift priorities without interrupting the entire project. In addition to making on-the-fly decisions based on real evidence possible, Pareto charts can be used in project management for post-project analysis for both PMOs and stakeholders. Teams can learn from each other and what went wrong in projects with data clearly laid out in this way. In the future, they’ll be able to replicate their successes and mitigate failures. Stakeholders can easily pinpoint areas of investment that worked out and learn more about how this project was managed so they can feel good about the outcome. In particularly successful works, they’ll be able to see how little interference the project encountered along the way. Or they can see how well the team managed issues that did arise. This persuasive tactic allows them to feel great about providing repeat business or, at the very least, enrich their understanding of key projects related to their goals for future reference. How to calculate Pareto analysis The simplest formula for calculating a Pareto analysis is as follows: [Your total unit of measurement per item, e.g., number of occurrences, hours, cost, etc.] / [the grand total of all items] x 100% Use this formula for each category. Keep in mind that each result should be a percentage. Afterward, put them in order from highest to lowest before inputting them into your chart-making software. How to create a Pareto chart Step 1: Collect your data A minimum of 30 data points is best for an accurate picture of the project as a whole. Step 2: Create a frequency table Use the following headers in this order: Issue Type Number of Occurrences (listed in descending order) Note: Some programs will automatically generate a Pareto chart for you once you’ve added the number of occurrences or frequency for each issue category. The rest of your headers may be calculated for you, again depending on the program you’re using: Cumulative Total Cumulative Percentage 80% Cut Off Step 3: Label your chart Keep it simple. You can never go wrong with “Types of Project Errors.” Freel free to add a single sentence description that includes the time period of your measurement and any other details that are important to the people you’ll be sharing it with. Step 4: Clearly label the Y-axis Frequency, total number of occurrences, or even price all work well here. Use whichever value best represents your data set or makes the most sense to you as a manager. Step 5: Note the categories on the X-axis These should match the Issue Types you first listed in your frequency table. Step 6: Interpret the chart Again, the software you use should fill in the other components of the chart, including the bars, lines, and cut-off. From there, you can get to work analyzing the results. The higher the bars are, the more of an impact they are having on your project. You’ll see percentages listed on the right-hand side of the chart across from frequency. They should be listed from 100% and counted down in increments of 10 to the bottom. Any bars that cross the 80% line should be considered a top priority for problem-solving. Pareto chart example This Pareto chart example was created by Clinical Excellence Commission and thoughtfully illustrates the key areas of focus project managers should be aware of. The areas marked in red and bold are the spaces project managers should focus on when conducting their analysis. We can also see that the categories on the bottom are great examples of types of medication errors. But project managers may use groupings such as scope creep, resource management, or communication to define a variety of issues that may come up. The most important line on this graph is the green 80% cut-off, which symbolizes the Pareto principle. Any bar that reaches above that line should be considered the most important issue. In the above chart, that would be “dose missed” at 92% and “wrong time” at 83%. Although “wrong drug” clocks in at 76%, it’s not considered nearly as important as the first two. For the next steps, the project manager in this particular example would likely solve the issues above the 80% line first before moving on to the next highest scoring category. Alternatively, they could choose to solve the above-the-line problems, then create a new Pareto chart and see if the values have changed. It’s also possible that solving the highest priority issues may fix less pressing issues on your chart down the road as a byproduct. How Pareto chart analysis can improve your project In general, the Pareto chart helps project managers and team leaders identify the causes of various problems that are having the biggest impact on their work. By figuring out what they are, managers can take the necessary steps to solve them. It’s also easier to determine task and even project or goal prioritization with a chart like this. If you’re working with third-party partners or stakeholders, the visual aspects of Pareto charts make them easy to understand and interpret. Not only is this highly effective for communicating with non-experts, but it’s also highly persuasive. How to interpret Pareto analysis with Wrike So you’ve made your Pareto charts and conducted your analysis. Now what? Put your plan into action with Wrike. Wrike is a project management solution that makes project plans manageable, efficient, and crystal clear. Now that you know what’s going wrong, you can easily add actionable next steps to your project plans without missing a beat. Start by adding a detailed task to your project. Add a description, deadline, and task owner. Wrike also allows you to see the workload of individual team members across all active projects so you can double-check they’re available before assigning it. You can also use Wrike’s custom reporting features to identify issue categories for your Pareto chart. Dissect active and past tasks to find the biggest areas in need of improvement during individual project phases or projects as a whole. In addition to Pareto charts, Wrike also offers Gantt charts and PERT charts that can improve productivity. A Gantt chart is a bar chart that shows the various tasks and deadlines for a project. It's a great tool for managing time and improving efficiency. A PERT chart is a network diagram that shows all the project tasks in separate containers. The boxes that make up the PERT chart are organized with arrows to represent the time needed to complete the task. Combining the results of your Pareto, Gantt, and PERT charts will help you turbocharge your project troubleshooting plans and may even prevent future issues too. Ready to get the biggest results from the least amount of effort? Get started with Wrike’s two-week free trial.
Bottom-Up Estimating in Project Management: A Guide
Need help creating the most accurate project forecast of all time? Look no further than bottom-up estimating. Bottom-up estimating in project management is a method of estimating project duration or cost by aggregating the estimates of the lower-level components of the Work Breakdown Structure (WBS). In this article, we’ll dive deep into what bottom-up estimating is, the pros and cons of bottom-up estimating, and how it differs from a ‘top-up’ estimating approach. Explore more about this effective technique, along with the tool you‘ll need to master it. What is bottom-up estimating? Bottom-up estimating is a technique that helps determine the overall cost and timeline of a project. It works by gathering all the details of a project at the most minute level. It provides a better, more accurate forecast than other project planning methods because it allows managers to see every available element of the project before it even begins. How accurate is the bottom-up estimation technique? Because the bottom-up estimation technique uses every known factor to determine the project’s needs, it is considered more accurate than most other methods. When you have all the details related to a project before you begin, it is easier to determine: Where bottlenecks may arise (and how to banish them before they do) How to overcome a lack of project resources How your team can strategically navigate this particular project This is particularly effective when starting a project that is unique or new to your team and doesn’t have historical data to pull from. Pros and cons of a bottom-up approach in project management The pros of bottom-up estimating include: Highly accurate. Laying out the project's scope can be very challenging since it involves estimating the exact details of the project and the people involved in its execution. Bottom-up estimating allows team members to see all the components of a project in one place, and it saves them time and effort by estimating separately. Saves time. By estimating the work package in advance, a manager can make better decisions and avoid costly mistakes. It also helps avoid surprises down the road. Even though there is a large time investment up front, the idea behind the method is that it will prevent wasted time down the road. Reduces risk. A bottom-up estimate allows the manager to address issues related to the estimates without making significant changes. This allows the team to avoid making significant errors. Improves success. A bottom-up analysis also allows managers to implement strategies to help the team execute the project more effectively. A comprehensive bottom-up analysis also allows the manager to identify potential issues before they occur, which allows the team to react more effectively to those that arise. Increases productivity. The team's autonomy and control are also distributed through the various members of the team, which allows them to work efficiently. Bottom-up estimating cons: Not scalable. Bottom-up estimation requires project managers to start from square one on each new project. There are opportunities to pull details from related projects from the past. But the point of bottom-up estimation is to create a forecast based on the individual components of this particular assignment. Time-consuming. The project planning work is front-loaded. It can take days, weeks, or even months to gather all the necessary information. For teams with a high volume of incoming projects or staffing issues, this may not be ideal. Slow-moving. Bottom-up estimation is typically not done in a hurry and is therefore incompatible with last-minute projects or work that has a short timeline. Bottom-up vs. top-down estimating Bottom-up estimating is different from a top-down approach. In top-down estimating, management estimates the project based on the previous work on the same or similar projects. Bottom-up estimation is ideal for unique projects or work that is unlike anything the team has done before. Top-down estimation, however, is ideal for duplicate projects, recurring assignments, or work that needs to be completed ASAP. It’s also easier to templatize past project plans in top-down estimating than in bottom-up estimating. Bottom-up estimating example In its simplest form, bottom-up estimation looks at the individual costs and time duration required for each project task. For example, let’s say you own a wedding cake bakery. The last time you gave a wedding cake quote for a three-tier and several dozen cupcakes, you underestimated the cost and lost profit on the project. Now, you’d like to better estimate a brand new order to avoid making the same mistake twice. In this scenario, you would lay out the individual components needed for each baked good. Everything from frosting quantity to hairnets is factored in. You’ll also need to account for the time it takes to do the shopping, coordinate customer service, and more. Having all of this together on one list will make it possible for you to see the entire scope of the project and provide an accurate estimation this time around. Why you should use Wrike for bottom-up projects Wrike is a project management tool that allows users to create robust yet simple bottom-up estimates for work of any kind. First, Wrike allows you to lay out all of the tasks that are involved in the project. Wrike’s task feature offers individual task due dates, descriptions, assignees, and more. Once a task is assigned to an individual team member, you can also assign approvers and factor into decision-making time to your bottom-up estimate. Instead of asking for approval from everyone, the manager focuses on getting feedback from all team members. Wrike also makes it easy to identify the various skills and people needed to complete the assigned tasks using information already stored in your dashboard. Not only will you have the most qualified team members working on the right tasks, but you’ll also be able to balance out scheduling so that no one person is bearing the majority of the workload. Finally, Wrike's Gantt Chart offers a visual view of project progress that lets you keep track of all your work's phases and dependencies. With our tools, you can set milestones, link task dependencies, and provide a clear step-by-step explanation of your bottom-up estimation to stakeholders. Ready to take your project management strategy to the next level? Use Wrike’s two-week free trial today to create a highly accurate bottom-up estimation for your next project.
RICE Scoring & Framework Explained
In this article, we’ll define the RICE model and what it stands for. We’ll also explain how RICE scores work, plus the benefits and challenges of using this framework. Keep reading to discover how to strategically apply this method to project management. What is the RICE model? RICE stands for reach, impact, confidence, and effort. The RICE framework is a project prioritization method used for quantifying the potential value of features, project ideas, and initiatives. It’s a great tool for facilitating Agile teamwork. How do RICE scores work? RICE is a score that measures the effort needed to get an item to its goal. It helps us identify which items are most important and which ones are least important. Reach This metric shows the number of people who would be affected by a feature or service in a given time period. It could be a reduction in churn or a spike in transactions. Impact A feature's impact is measured by how much it contributes to the overall success of your product. It can also be used to determine how much of a boost it will provide to your conversion rate. This is often used for product management but can also be applied to projects involving user-facing parts or experiences. There are many ways to measure the impact of a feature. Some key questions to consider include: will it improve conversion rates, or will it make the experience more streamlined? Confidence This metric is used to measure the confidence that you have in the estimations that you made for a project. It asks how confident you are in the data to back up those estimations. Rated on a scale, this metric involves both internal and external validation to score properly. Effort This is the amount of work it takes for a team to build a feature or complete a project. It can be a long-term project or a simple requirement that only needs a few people. Your exact definition of effort may vary. But most product and project managers use metrics such as time and budget. RICE model example RICE is calculated using this formula: (Reach x Impact x Confidence) / Effort It’s up to you to create your own scoring system within each part of the formula. But reach is usually a whole number within a time frame, impact is a number on a tiered scale you define, and confidence can be a percentage on your own custom scale, with 100% being the most confident. Effort is almost always quantified as time, but it can be defined as any resource type, such as labor. For example, let’s say the school lunch team is deciding if they should make more peanut butter or tuna fish sandwiches for the upcoming field trip. Using the RICE model, we’ll calculate the scores of both sandwich types to determine which should be prioritized. Reach There are 100 students going on the one-day trip, so we’ll use one day as our time frame. Of those 100, 80 have signed up for school lunch. Therefore, peanut butter’s reach is 80, and tuna fish’s reach is also 80. Impact Our tiered scale will be small and define student interest based on what we know about leftover sandwiches from the last trip. 1 = lots of leftovers from last trip 2 = some leftovers from last trip 3 = few to no leftovers from last trip There were few to no peanut butter sandwiches leftover from the last trip, but half of all tuna sandwiches were left untouched. From this, we can now see that peanut butter’s impact is 3, while tuna fish’s impact is 2. Confidence We’ll define how confident we are that students will want to eat the sandwiches on a scale of: 0% = extremely unconfident 50% = somewhat confident 100% = they love the stuff We know in this particular example that there are no nut allergies in this group, but there are some vegetarians. Therefore, pulling from the data on leftover sandwiches, we can ascertain that peanut butter’s confidence is 100%, while tuna fish’s confidence is 50%. Effort Peanut butter sandwiches can be prepared by simply spreading it onto bread, while tuna fish requires opening cans, mixing mayonnaise with spices, and then spreading it. Our effort scale will be defined as: Peanut butter’s effort = 3 minutes per sandwich Tuna fish’s effort = 6 minutes per sandwich Final calculation Peanut Butter’s RICE Score = (80x3x100%)/3 = 80 Tuna Fish’s RICE Score = (80x2x50%)/6 = 13 From this analysis, we know that peanut butter sandwiches have scored higher, so their production should be prioritized for the upcoming school trip to maximize the efficiency of supply ordering and division of labor. The benefits of RICE prioritization In a nutshell, RICE helps you make better-informed decisions in Agile project management. The scoring system helps identify when to make the most advantageous trade-offs and minimize potential biases. It also helps empower teams to take the next steps with minimal supervision since task prioritization is made simple when using this tool. And even when you’ve got a project underway, RICE makes it easy to organize all of your incoming work requests without disrupting active work. RICE scoring asks users to defend their choices when measuring their work and resource usage against defined priorities. Challenges of using the RICE framework Due to the complexity of RICE, product managers often have to consider multiple metrics across multiple features to create the best possible outcome. This is time-consuming, and much of the decision-making is at the manager’s discretion, which may defeat the purpose of the method in the first place. Another challenge is the potential lack of information. Data isn't always available for every product, and for most physical products, these metrics are often hard to measure. And last but not least is implementation. After putting in all the effort to create your RICE framework, you still need to get your team on board. If they aren’t frequently referring to the metrics or don’t fully understand what it means for their work on a practical day-to-day level, then the framework creation was a waste of resources. How to use RICE in project management Most project managers have at least some understanding of how to prioritize tasks. They may also have preconceived notions about how to do this. But due to the complexity of project management, it can be difficult to make informed decisions without a system for some of the most complicated factors. Some of these factors include team capabilities, personal biases, and the impact on companies or stakeholders. That’s where RICE scoring and frameworks come into project management. Rice scoring allows project managers the opportunity to make data-driven decisions with objective considerations that are related to the goals and the experiences of their customers. While a good project management system can help minimize this subjectivity by allowing people to easily prioritize tasks even when everything seems important, RICE frameworks also contextualize these choices. How to use RICE in product management A scoring system for product prioritization is not new. But finding one that works seamlessly across different ideas can be a challenge. Using the RICE scoring system outlined above, product managers can create a score for their many competing priorities. Once those are calculated, managers can draft a roadmap based on the order of product prioritization. This framework communicates which initiatives are most valuable to teams while providing a clear way forward no matter how complex your product to-do list has become. Combining RICE scoring and framework with a product management solution that allows you to carry out your new plan is crucial. Abilities such as performing critical path analysis that prevents conflicting resource usage or expectations and updating tasks with customized statuses so that teams can stay true to their RICE analysis results can make or break your prioritization efforts. Ready to maximize the efficiency of your project and product management plans through strategic task prioritization? Get started today with Wrike’s two-week free trial.
The Ultimate Guide to Multi-Project Management
The more companies grow, the more projects they have in progress at the same time. Managing workloads, keeping track of deadlines, and knowing what to prioritize can become complicated, which is why multi-project management is so vital. In this guide, we’ll outline how leaders use multi-project management to coordinate multiple projects, tasks, workers, and time. We’ll explore why having a multi-project management tool is important for organizing and managing work. What is multi-project management? Multi-project management refers to the process of overseeing multiple active projects all at one time. It is often guided by a multi-project management framework which refers to the various stages of the project life cycle, from selection to planning, control, monitoring, and evaluation. A multi-project program will summarize the various essential elements of a project. Having this information allows a company to create and consolidate repetitive tasks across multiple projects within a portfolio. This approach can help improve the efficiency of all projects in the department. Difference between project management and portfolio management There are key differences between projects and portfolios but the biggest one lies in the very nature of what they are. A project is temporary, while a portfolio is ongoing. A project manager focuses on the requirements of an individual project, while a portfolio manager looks at all aspects of the organization’s operations. Project managers will also be able to appreciate the results of their work if they can relate to a single objective. Tips for managing multiple projects Start planning early. Having a project plan in place is very important when it comes to coordinating multiple projects. Use templates and task lists to outline key components before project kickoff. Manage time wisely. Pay attention to individual workloads when assigning tasks. Also, it's important to set some breaks so that the team can recharge and focus on the most important tasks. Prioritize individual tasks. Project managers need to know how and when to focus on the most critical tasks in a project. Doing so will help the organization achieve better results and minimize the time spent on non-important tasks. Templatize repetitive actions. By batching tasks that are similar to or repetitive in different projects, you can work on them in the least amount of time possible. Keep plans flexible. It is very important that leaders are flexible and can alter their plans and goals as they see fit. Doing so helps avoid making common mistakes over and over again. Find managerial balance. A great leader knows when to take command and when to trust their team. Create detailed tasks. Assign a specific time allotment or effort for each task along with individual due dates, approval assignments, and task descriptions. Encourage open communication. This is important because it allows teams to easily identify potential issues before they occur, which can be addressed before any major delays happen. Multi-project management challenges Like with any given project, there are infinite challenges you may experience. However, there are three common themes among the top multi-project management challenges. Here’s what they are and how to overcome them. Challenge: Lack of prioritization Team members may have multiple tasks to do across a variety of projects and only so many hours to do them in. Cut down on analysis paralysis by deciding which tasks are a priority for them so they can make decisions on the flow and continue moving forward. Solution: Clear priority indicators Set individual priorities on tasks and update them as needed. Challenge: Miscommunication Cross-functional teams, third-party vendors, and external stakeholders can easily lose sight of communications if they aren’t easy to access. Solution: Centralize discussions Bring everyone together and give them controlled access to in-platform conversations, files, and tasks as needed. Challenge: Inefficient use of resources Scheduling conflicts, budget constraints, and the occasional sick day can all throw a wrench in even the best-laid project plans. Solution: Improve visibility Use a project management solution that will allow you to see a macro view of all your projects in one multi-project management dashboard. What is a multi-project management dashboard? A multi-project management dashboard is a project management tool that covers the various features of all your active projects in one easy-to-digest space. Through this dashboard, you can view all of your most important schedule, budget, and reporting metrics. Each project schedule and project plan are displayed as a percentage complete and status indicator for reference. The project budget displays planned costs vs. the actual costs in real time, while visual charts display the various resources, risks, and issues affecting the projects in play. They can also be used to create reports and chart-based data sets. You may already be familiar with using multi-project dashboards if you have experience with Agile project management. Features to look for in a multi-management project tool Although some project apps offer these features, a true multi-management project tool will have each of the following: Dashboards that give users a bird’s-eye view of all active projects Detailed task descriptions that include individual effort indicators, deadlines, and in-task communication Integrated planning and scheduling tools that make it easy to pinpoint potential roadblocks Prioritization settings so that managers can indicate which areas should get the most resources and attention at the right time In-platform communication with controlled access to project plans, files, and assets Centralized document storage made accessible to all project team members Real-time budget and scheduling updates for accurate resource allocation How to implement multi-project management software Like any other project, implementing a multi-project management software requires planning and preparation. This should include a variety of key steps and roles for everyone involved, as well as a plan for communicating with the team. Before you dive into tool comparisons, the first step is to thoroughly assess your company’s needs. This will help you answer the most important questions, which will also inform the project’s overall budget. Once you have decided on the type of software that will work best for your company, you can start to narrow down the providers by interviewing them and gathering feedback from other users. This step will give you a better understanding of how to use them and what your options are. During the execution phase, you will start converting data and preparing for the transition to the new platform. This is a critical step in the process, and it involves preparing for various scenarios. One of the most challenging parts of a successful software roll-out is dealing with resistance from your staff members, especially if they’re already overwhelmed with a number of ongoing projects. Having people with varying levels of expertise can help manage this issue and keep the system running smoothly. Some software tools may even be ready within a day if you are able to dedicate time to quickly adding in project details and tasks. Get a jumpstart on this before you even purchase your next tool by taking stock of all current project workflows. Mapping out your organization's processes is an important step in the transition from an old to a new project management software. This will help you visualize how those processes operate and identify opportunities for improvement which can help you prevent or overcome them in the future. Implementing a multi-project management tool also works best if you can get the senior and middle managers to buy in first. They may be more likely to adopt the software if they see its effectiveness first-hand. List the activities that your team deals with and identify the key processes that have the most impact on achieving goals and targets. How to manage multiple projects with Wrike Wrike is an effective tool for project coordination no matter how many active projects you have on at the same time. With Wrike’s multi-project dashboards, you can quickly go over your work schedule, review progress, and approve changes where needed. It’s also a useful space for reflecting on projects and tasks throughout their entire lifecycle. But above all else, Wrike is the best tool for keeping track of the tasks that require the most effort. It does so by allowing you to rate the amount of work that each task requires. At the same time, you can keep up with all the details, such as deadlines and stakeholder approvals through detailed task descriptions. Creating a step-by-step breakdown structure for your tasks is the easiest way to make them more efficient. That’s why Wrike offers an automated workflow system to help you create a copy of all your past tasks and trigger the next steps in real time. With Wrike, you can easily evaluate your progress and assign tasks to specific projects. This eliminates the need to wait for the projects to finish before getting a more detailed view into what else is going on. This level of transparency holds employees accountable and provides greater visibility into vital project aspects that will cut down on miscommunications and unnecessary questions. Plus, Wrike allows managers to plan each project's goals and assign people to oversee the work so that everyone knows what's expected of them. This will make it easier to get done and reduce stress. And with Wrike's Report Builder, users can customize the data so that it only reviews the most important metrics with updates made in real time so you never miss a beat. In conclusion Multi-project management is a process that can be easily used to jump-start various projects while keeping everything organized in one place. Having a solid foundation like the kind Wrike can provide will allow you to focus on what matters most instead of starting from scratch each time you begin, work on, or finish another project. Start Wrike’s free trial today to begin mastering the art of multi-project management.
What is Quality Assurance (QA) in Project Management?
Quality assurance (QA) is one of the final and most important steps of any product roadmap. Used in a variety of industries, including software development and construction, quality assurance verifies that a product or service is of the highest quality, which is an integral process for any company. In this article, we’ll explain the basic premise behind what quality assurance is and why it is important. Keep reading to discover how Wrike can be used as a tool for quality assurance. What does QA stand for? QA stands for quality assurance. It refers to the process or actions taken to ensure a product meets all of its requirements. Quality assurance is often used to track compliance and maintain consistent product management output over time. This is accomplished by ensuring that each step of the production process is thoroughly inspected and refined. The main benefits of QA include gaining a customer's satisfaction and confidence. This leads to higher sales and better customer loyalty over time. Quality assurance processes have become so critical that many companies have created their own dedicated department. You may also hear of a quality assurance system referred to as a quality management system. How is quality assurance used in project management? Quality assurance is used in project management to help companies avoid making mistakes and to minimize potential risks. With quality assurance in mind, project managers can start planning for the quality of their deliverables from the very beginning of their project plans. Doing so will highlight areas where they can improve their work, increase efficiency, and hold their team accountable. Not only does this strengthen a brand’s reputation, but it also cuts down on the potential exponential costs associated with fixing QA issues down the line. Quality assurance can be completed at any stage of the project process. It can begin with establishing a quality framework for the hiring process so that only the best, most compatible talent is brought on. After that, teams can perform self-checks to ensure that your work is conducted according to predefined standards. Regular QA monitoring can be built into project plans with other departments, or third-party entities can easily be looped in to give approvals. After a product has gone to market, teams can further track its quality by receiving customer feedback and implementing changes as needed. All of these quality assurance tasks can be organized and executed through proper product management. In fact, without a proper project management tool and strategy in place, companies are even more vulnerable to QA issues. For quality assurance issue prevention and resolution, having a clear understanding of what’s going on at all times is essential. What are the three types of quality assurance methods? There are three types of quality assurance methods that project teams commonly use. These methods can vary depending on the requirements of the company; however, you can count on using at least one of the following during the process: Statistical process control Failure testing Total quality management Statistical Process Control Statistical process control (SPC) is most often used for developing products with technology and/or chemistry involved. This can include everything from consumables to cleaning supplies to software. The SPC method monitors ongoing progress through charts and strives for continuous improvement. The steps involved in this quality assurance method include discovery, investigation, prioritization, further analysis, and charting. This can be done internally using project data, team input, and studies conducted by QA and operations teams. Decisions are based on facts and figures and will likely follow the scientific method approach. Failure Testing Failure testing is commonly used to test physical or virtual products. For physical products, that means whether the product will break down under pressure or in various usability scenarios. For example, crash testing a vehicle’s safety airbags would be considered failure testing. For virtual products, failure testing focuses on a program’s resiliency against a number of possible high-stress scenarios. Issues such as cybersecurity and transaction capacity are all evaluated. Overall, failure testing aims to assess a prototype or finished product and decide if it’s ready to go to market. Total Quality Management The total quality management (TQM) method aims to continuously improve products by using quantitative methods. Practically speaking, it helps build a process that is consistent and predictable. It does so using a variety of modules that help manage the various phases of a project. TQM also supports teams by relying on data and analysis to plan and implement future updates. It’s most popular for improving assembly-line efficiency. Regardless of which quality assurance method you use, having an execution plan is very important. It will help you keep track of all of the steps involved in the QA process as they happen. Teams can also track improvements over time and study trends as they progress. What is quality control in project management? Quality control is a process that involves inspecting, testing, and reporting outputs to ensure that they meet the requirements of the project. In order to achieve the highest possible level of conformance, decisions need to be made in all phases of quality control. Projects involve a wide variety of tasks and processes that are often subject to various forms of quality control. The project manager will typically always agree to follow quality control measures but having input from internal or external QA experts is a great idea too. Quality assurance and quality control are sometimes used interchangeably. However, they are distinctly different. Quality assurance vs. quality control Quality assurance (QA) and quality control (QC) are part of a quality system, along with other elements such as goals and procedures. Quality assurance typically covers all elements of a quality system, while quality control is a smaller subset. In other words, while QA sees the big picture (process), QC focuses on the details (finished products). Quality assurance examples Quality assurance examples can be found in many different forms across all industries. They can happen in businesses both large and small, and the issues they aim to solve or prevent may be identified by internal teams, external partners, or even their very own customer base. Here are some general examples to help illustrate what quality assurance looks like: Running cybersecurity tests on a user portal after a breach was exposed Revamping a car manufacturing process to better suit new safety standards Changing fabric suppliers after discovering that dresses aren’t reacting to dye as well as they did weeks before Designing a new bumper after data suggests its current design to be the cause of higher flat tire rates Weeding out possible vat issues after receiving complaints from customers that their granola bars made buyers sick As you can see, quality assurance plays an important role in a company’s overall success. From protecting customer health and private information to assuring that your brand image is consistent, these examples prove that QA is a non-negotiable asset for any company. How to use Wrike during the quality assurance process Wrike’s product management tools help you manage all your quality assurance activities in one place. Using our tool, managers can accelerate product launches through automation and go-to-market faster without sacrificing quality. Wrike does all of this using features such as templates and cross-functional team communication tools. Wrike offers pre-made templates designed by and for experts in your industry to ensure that you capture all the essential steps in every project. This lays a strong foundation for high-quality and consistent output. Wrike also allows users to create their own process templates. Once an issue is discovered, teams can easily implement a custom QA solution template into their existing project plans and take action that much faster. Whether you’re responding to an issue or monitoring to ensure one doesn’t come up, a project management solution that offers cross-functional team communication tools is a must-have for quality assurance. Wrike does this through several features. First, Wrike offers improved visibility into real-time reports through dashboards, charts, and detailed task views. Second, Wrike allows teams to involve everyone in the conversation. This happens through integration with third-party communication apps so that all discussion is organized no matter where it takes place. It also is made possible through secure project plan access to outside partners who need to view and approve of plans. Even within the program itself, teams can easily view succinct dashboards that outline where they are, what they have to do, and where the project is going. Team members can easily get one another up to speed on QA issues by pinpointing which tasks went wrong and reviewing in-task discussions to get a better understanding of the event. Get quality assurance discussions started across multiple departments and countries with our easy-to-use project management software. Start Wrike’s free trial to get better insight into your own processes now.
Understanding Dependencies in Project Management
In project management, identifying and handling a variety of dependencies is one of the most important tasks team leaders will manage. The challenge is that dependencies in project management are often complex. There are different types of dependencies that need to be considered in different project phases. In this article, we’ll dive deep into project dependencies by going over types, examples, and how Wrike can be used to seamlessly manage them all. What are project dependencies? Project dependencies, also known as task dependencies, are the order in which tasks should be performed. They allow you to work out the optimal order for the project, giving the fastest route through the work. For example, if Task B is dependent on Task A, Task A will need to be completed first in order for Task B to begin. Types of project dependencies There are ten different types of dependencies in project management. You’ll need to be familiar with each of them to optimize your project planning. Some are intuitively named, but others may require additional explanation. Keep reading to learn these essential terms. Casual dependencies This type of project dependency is any task that follows the logical sequence of events. These are typically easy to assume. Resource-based dependencies This dependency is created when more than one project requires the same resource for completion. The project will be dependent on the completion of each task and whether or not there is enough of that resource available for all project needs. Preferential-based dependencies Preferential-based dependencies are unique to each team and have to do with best practices, established procedures, and the intuition of the project manager. Cross-team dependencies Cross-team dependencies are when teams from multiple projects or departments need to work together to deliver an end-to-end solution. External dependencies An external dependency is a requirement that a task needs from a third party before it can proceed. This dependency often takes the form of an approval. FS dependencies FS stands for finish-to-start. The finish date of the preceding task gives the date of when the next task will begin. SF dependencies SF stands for start-to-finish. The start date of the preceding task gives the date of when the next task will be completed. SS dependencies SS stands for start-to-start. A start-to-start dependency means that a successor project cannot start before its predecessor has done so too. FF dependencies FF stands for finish-to-finish. This dependency tells the successor task to finish the predecessor's work. They don’t need to be completed at the same time, but one can’t finish unless the other is ending or has already ended. Outside-inside dependencies An internal task has external dependencies in order to complete or vice versa. Project dependencies examples Now that you know all of the different dependencies, here are some examples of each one to help you better understand what they look like in real life: Casual dependencies For example, to send an email, you must first write it. And before that, you’ll need the email address of the person you’re sending it to. These tasks would depend on each other and flow in order. Resource-based dependencies You may need eggs to prepare both your omelet and your pancakes for breakfast. The extent of both cooking projects will depend on how they utilize the shared resource. Preferential-based dependencies Some freelance writers may prefer to work without a blog post outline. However, the marketing team already has a custom workflow that involves giving them one. Cross-team dependencies The sales team may be working side by side with marketing on a new product launch. External dependencies A construction project may rely on a concrete supplier to deliver their product to the jobsite before they can begin pouring. FS dependencies In marketing, you may need to get approval on your quarterly budget proposal in order to launch your next paid advertising campaign on Facebook. SF dependencies If your company is redoing its logo, it will need to keep the old one while starting the new design before it can be replaced. SS dependencies A team of professional home cleaners must start the laundry and begin scrubbing the bathtub at the same time in order to provide their two-hour express service. FF dependencies If you’re redoing your website, you can simultaneously work on the backend code while also designing the user interface. The code will need to finish in order for the user interface to also go live. Outside-inside dependencies A wedding planner is waiting for a reception venue to confirm their availability on a set of potential dates before returning with a quote to their engaged clients. How to manage project dependencies with Wrike Wrike is a project management tool that allows you to find, plan for, and manage a variety of complex project phases with task dependencies through features such as the Timeline and automated task dependencies. The Timeline feature allows users to plan and schedule tasks with drag-and-click support. It eliminates the need to create separate task lists for each project. Task dependencies are easy to view and piece together within a given timeframe. Wrike also offers individual task dependencies, a feature that automatically links tasks to each other and shows the downstream effects of each link. This feature makes it much easier to maintain an accurate project plan. And if any changes need to be made while the project is underway, managers can quickly rearrange employee schedules and to-do lists without losing sight of which tasks are already connected. Plus, Wrike offers robust communication features for stakeholders inside and outside of your immediate team. Loop in other departments through @mentions within tasks so they can quickly get up to speed with ongoing conversations and relay their informed input. Or, grant restricted access to third-party vendors and clients so they can seamlessly contribute to tasks as needed. Ready to master task dependencies and improve your project management strategy? Start Wrike’s free two-week trial today to better organize and execute complex project steps with ease.
A Step-by-Step Guide to Using a Punch List
Got a never-ending list of project tasks to complete? A punch list can help. This project management tool is frequently used by construction managers, but it can help teams in any industry manage both old and new tasks that need to be revisited or monitored. In this article, we’ll explain what a punch list is in construction, why it’s so helpful, and how you can benefit from using one. Keep reading to discover how to create an effective punch list that works for your unique projects, all while adhering to best practices. What is a punch list? The term punch list comes from the construction world, where managers would have their team punch a hole in a paper task list next to an item they had finished. A punch list is a list of tasks that must be completed before a project can be completed. Tasks include active work, work that has been completed, and notes on delays in the project. Task deadlines and big-picture project deadlines are also saved here. A punch list does not always include the major work but rather smaller tasks that must be completed. Punch lists are used to keep track of work that needs to be completed to meet the terms of a contract. Project and construction management software can help you create and maintain a punch list that works seamlessly with the rest of your workflow. Project details are updated in real time and can be accessed anytime from anywhere. Each punch list item should have its own name, location, and deadline. Not all items on the list will be urgent, so it’s important to mark priority items. Punch lists are created by managers but used by all members of the team. They’re also useful for communicating with stakeholders. Project owners should regularly check in with them and confirm they are satisfied with the process. A punch list is only made once the project is considered almost finished. It consists of minor tweaks and usually only addresses major issues. When drafting the punch list, all team members involved should address issues they encounter before the project closes. This step typically involves reviewing the original project specifications and addressing any changes or updates. Afterwards, everyone comes up with a plan to address the remaining tasks. The contractor or manager then provides a schedule for when the project will likely wrap up. Why are there punch lists in construction? Have you ever used the phrase “punch out”? The term originally refers to the process of completing a construction project's punch list. A construction punch list is a step-by-step plan that outlines the work left to be done before the project's final inspection. It's typically created before the project's final inspection. Before the contract can be finalized, the general contractor and the owner will do a site walkthrough to make sure all the necessary work is done. A punch list structure is a great way to align your team's quality control efforts throughout the construction process. It's also a great way to keep track of all the details of a project. Site walkthroughs are usually carried out by a crew member who may also contribute to the punch list. During this walkthrough, they will note down all the items that are missing or that require attention. Even though this walkthrough is visual, tasks are not just identified by what you can see but what someone says must be done in order to fulfill the agreed-upon project needs. These notes are all used to create the punch list. Doing it this way will eliminate the confusion and misinformation that can cause delays and unnecessary expenses as the project progresses. It also gives teams a way to communicate clearly and schedule the remaining work, making it easier for everyone involved to efficiently collaborate. Many construction companies will create punch list templates. A punch list template helps to organize all of the information that's needed to manage a construction project, including details such as who, what, and where. This template can be created once and then used repeatedly, saving managers the time it would take to make each new punch list from scratch. The goal of every construction management project is to have zero items on its punch list. Once this has been achieved, the contractor and the owner enter the substantial completion phase. When the punch list is zero, the project owner and the contractor can reach a mutual agreement, which states that the work is finished and ready for payment. Having one person responsible for the punch list's maintenance is very helpful. This person is typically in a management position. They’ll be responsible for answering questions, following up on task progress or delays, and keeping the list up to date. As you can probably guess, having an open line of communication between the punch list manager and the rest of the team is critical for this tool to be effective. Many people play key roles in the construction punch list, including the project owner, the architect, the general contractor, and the designers. Project owners create and manage the list while the general contractor reviews and carries out the details. While that’s happening, the architects, designers, and subcontractors complete the tasks. Punch list examples Looking for ideas for your own punch list? Here are some punch list examples you can use to build your template, along with our insight on what makes each unique and how to use them: Example 1: Life of an Architect In this example, architect Bob Borson shows us his punch list for the inside of a 12,000 square foot construction project. What’s unique about Borson’s punch list is that he includes a ledge at the top with numbers that correspond to tasks. He then uses the numbers as a shorthand for each of his tasks, adding details if needed. Example 2: Levelset’s Template Levelset has created a general template for construction punch lists. It takes the form of a chart with headers that say: item number, location, item description, the subcontractor responsible, status, and date completed. The simplistic nature may be appealing to managers who prefer to use paper and pencil. However, projects with tasks that require more details, frequent status updates, or approvals may want to add more to it. Going digital also makes it easier to view, share, and revise as you go along. The benefits of punch list management Build better relationships This type of communication tool creates a better working relationship between a project owner and a general contractor because it allows them to be on the same page about task statuses. A punch list also ensures that everyone’s voice is heard. You may feel like the project is finally finished, but keep in mind that everyone involved has their own thoughts. Improve communication The entire team plays a part in creating the punch list. They're also responsible for maintaining it. Although there is a point person, everyone becomes a stakeholder for the remaining tasks in the project. It's also easy to reference and share if you use electronic tools such as project management software. Stay on track Failing to deliver all of your tasks on time and under budget can create major problems, especially when there are contracts involved. A punch list not only keeps a record of what you and stakeholders agree to but also paves a clear path for what still needs to be completed before the project deadline. Set expectations When you use a punch list, everyone on your team knows exactly what they are responsible for and when it is due. Employees don't have to worry about going above and beyond the punch list since that may involve time and expenses that are unaccounted for. Instead, they can focus on providing high-quality results for the most important tasks. Keep teams accountable Punch lists are visible to everyone on the team. Because there are names assigned to each item, it's easy to see who is completing their tasks on time and who isn't. Team members can support one another when someone falls behind and feel motivated by the progress that is being made in other areas of the punch list. What should be included in a punch list checklist? No matter what industry you are in, your punch list checklist should include each of the following: Punch number: The total number of tasks on the punch list or what number the specific task in question is on the list. Location: If there is a construction site involved, this is where the task will need to happen. If your work is all digital, you can use this space to designate which software tool this item will live in so that it’s easier to look up later on. Trade or department: Choose which specialty this task falls under. For example, signing off on the final design for a Times Square billboard campaign may fall under the marketing department’s responsibility. In construction, this may look like carpentry, plumbing, etc. Task name: A shorthand for what most team members will remember and understand. Task description: A paragraph describing what the task is, any general guidelines needed to complete it, and important details the assignee absolutely has to know. Files: Ideally, your punch list will be digital and have the ability to link out to or store supporting files. Things like photos, images, videos, and documents are all useful here as long as they directly relate to the task. Task type: What general task category does this punch list item fall under? Your team can come up with a list of specific categories that fit your unique project needs. Priority: Note this using a word or color designation. At a minimum, your priority scale should include low, medium, and high, but feel free to include more variety. Due date: As the name implies, this reflects when the task is due and absolutely must be completed. Owner: The person responsible for making the task happen. Approver: The quality control person who must sign off on the task completion, if needed. Task status: Commonly used tags include completed, awaiting approval, and in progress. Notes: Use this section to discuss the project, loop in other participants for opinions and updates, and elaborate on anything in the task that needs to be explained. Pro tip: As you can tell by now, each individual task will include a lot of details, which is why it is also important that your punch list is short and concise so that you maximize the effectiveness of your to-dos. It’s not a list of what you could do but what you have to do. Doing so will make sure you’re using the remaining resources wisely while maintaining compliance with the original project agreement. How to create an effective punch list template Start by using data from reports on similar projects you’ve done in the past. Look for things they have in common and add some of your initial task ideas to the punch list draft. Your team will help you decide whether or not to keep them later, but for now, they will form the foundation of your standard punch list template. Then, use a premade punch list task form or a project management task template to define each individual item. If you don’t have a premade one available, use the list outlined above to draft your own. Make sure that your template is simple and clear so that everyone on the team can understand how to use it. The key is to keep it streamlined, especially if your tasks are complex. Finally, add drop-down menus for categories such as task type or location if there are a limited number of options available. If the section requires a little more personalization, leave space for users to enter the text below the header. Using Wrike as an alternative to punch lists Wrike is a project and construction management tool that makes it easy to create, manage, and assign tasks. As you can imagine, it’s extremely hard to track punch list items on paper. Doing so leads to many errors and inefficiencies, and it can also hinder collaboration among various parties. Even a digital punch list tool has its limitations. Features such as asset storage and accessibility controls that Wrike offers aren’t typical of traditional punch list software. And yet, these details can make all the difference as you strive for efficiency in the final stages of your project. While a project management software may not have its own designated punch list outline, it does offer productive alternatives such as Kanban boards. A Kanban board is a visual representation of your workflow. Instead of a punch list, it uses columns and cards to represent the stages of your work. You can also set specific priorities and attach customized tags. Wrike also offers secure cloud storage. A project collaboration system powered by the cloud will allow you to keep track of all your team members and issues in real time. Wrike even works seamlessly with mobile platforms, which maximizes visibility. Blended teams across the globe can easily make and view changes in real time. Added all together, the features of a digital project management system combine to create a powerful alternative to traditional punch lists. In conclusion Using punch list and project management technology, team members can now communicate even when they're not in the same physical location. Wrike helps streamline this process by allowing you to assign, track, and monitor people for specific tasks. Start your two-week free trial of Wrike and see for yourself how you can get projects done on time and within budget through advanced task organization.
A Quick Guide to the MoSCoW Method Technique
The MoSCoW method is a prioritization technique used by project and campaign managers to work smarter not harder. In this quick guide, we’ll explain exactly what the MoSCoW method is, how it works, and provide some examples you can use to inform your own analysis. Keep reading to better understand the various categories within the MoSCoW method, as well as an alternative prioritization tool for project managers. What is the MoSCow method? The MoSCoW method is a technique used by organizations to communicate the importance and priority of the various requirements being met in various projects. This method is also referred to as MoSCoW prioritization and MoSCoW analysis. The term MoSCoW is an acronym that refers to the first letter of each of the four priority categories. It uses four categories, which are must-have, should-want, could-have, and will not have. While it’s meant to be used at the start of a project when time is on your side, it can also be adapted to work seamlessly for time constraints. Software developer Dai Clegg originally created the MoScoW method. Since then, many other leading companies have used it to get their team on the same page, properly distribute resources, and achieve project goals. How does the MoSCow technique work? The MoSCoW technique works by allowing teams to include multiple representatives from the organization in their project management discussions. This gives everyone a wider perspective on the organization's operations and where their collective priorities lie. Before you begin your MoSCoW method, think about which people can provide valuable context for your team. They can help you identify opportunities and threats, and they can help you make better decisions. Once finalized, the MoSCoW method will also force stakeholders to show evidence before they can submit additional work requests mid-project. Critics of MoSCoW often say that it does not include a comprehensive objective scoring system for all initiatives. This is a common mistake that many teams make. A weighted scoring method will more accurately measure the backlog against a set of predefined benefits and costs. One of the most challenging aspects of the MoSCoW technique is learning which categories their initiatives should go in. As the manager, you will need to know which of your team's initiatives are “must haves” for their product or which are merely “should haves”. You may even need to solicit feedback from a different department in order to get greater perspective on your current project prioritization. For example, a marketing department head may have greater insight into which selling points for your upcoming product launch are resonating more with buyers so that you can work on perfecting those components first. Another key idea about how the MoSCoW technique works is that it’s only effective if you follow it. This means that, once an initiative is placed into a category, the entire team needs to stick to that decision. Many beginner MoSCoW teams end up agreeing that an initiative should have been initiated, but they move on to the next step instead because it feels better or more familiar to them. Finally, when it comes to making decisions about prioritization, your team will need to have a consistent framework in place before you engage with this technique. A consistent framework for assessing and ranking all initiatives is critical if you want to avoid biases and falling into old patterns. Your team’s prioritization strategy helps set expectations across the organization. It lets them know that they have made the right decisions and weigh all the factors that go into making those decisions. Don’t be afraid to make your MoSCoW method results available to the rest of your organization if applicable. Understanding MoSCow prioritization categories Before the MoSCoW analysis can begin, all participants need to agree on which initiatives will be prioritized. It's important to discuss how to resolve disagreements in order to prevent them from holding up progress during this preparation stage. This can help prevent issues from happening in the first place. Once the framework has been established, it is time to start identifying the appropriate categories for each project. Here are the definitions and explanations of each of the MoSCoW prioritization categories: Must have Musts are defined as initiatives that are critical to the success of a project or product. These are usually non-negotiable and can be used to describe specific functionalities or solutions that need to be implemented. The “must have” category is challenging to define. Before you start, ask yourself if something is truly necessary in this category. Should have Although “should have” initiatives are not essential to a product or project, they may add significant value. A “should have” initiative is different from a “must have” initiative, which means it can be scheduled for a future release. Could have “Could haves” are initiatives that are not necessary to the core of a product. Projects that are placed in the “could have” category are often the first ones to be deprioritized when another project takes longer than expected. Will not have The MoSCoW method places several initiatives in a “will not have” category. This method allows you to manage expectations about what will not be included in a release or another timeframe. Putting initiatives in the “will not have" category can help prevent scope creep. This category shows the team that the project is not a priority at this specific time frame. Some initiatives are prioritized in the “will not have” group, while others are likely to happen in the future. Some teams then decide to create a subcategory for these initiatives. How is the MoSCoW method used in project management? The concept of MoSCoW allows project managers to prioritize tasks that can be done efficiently even when they have limited time. For example, if the team has a tight budget, it can use MoSCoW to determine which initiatives can be completed within those limitations. This is especially useful for managers juggling more than project or leading cross-functional teams. This is because cross-functional teams are sometimes obligated to another company or department’s priorities. While your team is working on a new product release, another project manager may have them on a tight timeline for another client’s goal. And, as we all know, things come up throughout the lifespan of a project. Although efficient planning helps teams remain agile, the MoSCoW method can make even the biggest and most unexpected roadblocks more manageable. MoSCoW examples This method can be used for nearly any industry or project type because it has to do more with project decision-making than the subject matter itself. Here are a couple of MoSCoW method examples you can use to get started with your first draft: 1. National College of Ireland’s website project In this example from a lecture on the MoSCoW analysis, Professor Eugene O’Loughlin demonstrates how to use this technique when building a website. The project goal in this example is to create a platform where users can securely log in and access files. Because of this, the tasks listed under their MoSCoW categories will look different from other standard website creation projects. For example, while another project may add “have an eye-catching design” to their should-have section, this particular website has added “password retrieval” because it directly applies to their security-oriented goal. Even if this website project could benefit from a great design, the MoSCoW method helps managers and teams laser focus on completing the highest priority activities first. If they have more time later on, they can potentially add a design improvement task to their “could haves” if they determine the ROI is high enough. Takeaway: Consider your project holistically when assigning priority. Your goals should be your north star for determining what is or is not truly important, regardless of what conventional wisdom says to do. 2. Slideteam’s Assessing HR Requirements Template This is one of the MoSCoW examples that shows how many different types of tasks this technique covers. Here, we see storing employee leave history as a must, leave letter printing a should, notifications for pending leave dates a could, and remote access a won’t. In HR, many of their decisions around prioritization will be made by compliance and legal counsel that they must adhere to. Still, it’s important to define these tasks and their MoSCoW label so that employees understand at a glance that it’s less important to set up leave notifications and more important that they update employment histories in their software. Takeaway: The MoSCoW method can be used to cover many different aspects of projects including compliance and procedure. How to undertake a MoSCoW analysis using Wrike Wrike is a project management software that allows users to strategize how they prioritize their portfolio of projects as well as the tasks within each individual initiative. Using visual tools such as road maps that show what progress will look like from kickoff to completion, managers can easily see which of their chosen MoSCoW analysis configurations work best for achieving their goals. Wrike also allows you to centralize all of your project planning in one central location. You can view potential resource conflicts across projects, individual task progress statuses, and automate tasks from your should or could have categories that you otherwise wouldn’t have time for. Ready to get started with the MoSCoW method and Wrike? Sign up for a two-week free trial today.
Cycle Time vs. Lead Time: Everything You Should Know
Lead time and cycle time are often confused with one another. Both cycle and lead time are important time metrics in manufacturing, but they’re also important strategic tools for project management. Project managers and team leaders need to fully understand their differences and similarities to harness their power. In this article, we’ll go over cycle time vs. lead time and what they do. We’ll also share some tips on managing both cycle time and lead time in your project management solution to achieve better results. An introduction to cycle time vs. lead time In a nutshell, cycle time measures the time it takes for a team to make a product, while lead time measures the time between the customer order and order fulfillment. Lead time is always longer than cycle time because cycle time fits into the timeline of lead time. In Scrum methodologies, cycle times are equivalent to a sprint. Here, we’ll discuss the differences and similarities between the two metrics. Keep reading to discover the answers to your most common questions about cycle time vs. lead time. What are the differences between lead time and cycle time? The cycle time is the time it takes for a developer or a team to finish a project. It is typically the time between when the work item is in progress and when it has been completed. The cycle time officially starts when an item is moved to “In Progress” and ends when it is marked “Done” in whatever project management solution you’re using. For example, when a marketing manager builds a social media campaign for Twitter, the cycle time begins when the team starts preparing the content. The lead time is the time it takes for a single unit of product to be created and added to the backlog when it is shipped. This is typically the time it takes for one project to be completed and sent to the customer. If you’re using a Kanban board, the lead time will begin once the item is added to the “To Do” list column. In the marketing example scenario above, the lead time will end once all the content is published on the platform. By measuring cycle time, you can identify areas of concern that need to be addressed to improve the efficiency of your team. But by measuring lead time, you can determine how many items are flowing into your queue and how long it takes for your team to check them off. And when it comes to testing the system's efficiency, focus on the lead time, not on the overall development process. In simpler terms, lead time refers to the time that has already passed, while cycle time refers to the time it would take. They are not easily compared side by side for this reason. What are the similarities between lead time and cycle time? First and foremost, lead time and cycle time both measure the minutes, hours, days, weeks, or months it takes a product to get from a starting point to an ending point. Those points are different for each, but they do represent a quantifiable period of time. If those measurements are consistent, then teams can achieve business continuity. If they aren’t, they may need to adjust in order to better plan and execute projects. Because of this, both lead time and cycle time offer insight into the efficiency of teams and their processes. These values examined simultaneously create an accurate picture of how a company uses its time when properly monitored and measured. From there, project managers and team leads can create realistic benchmarks. They can easily make the necessary adjustments, calculate these values again, and weigh the results side by side to see if any progress has been made. Lead time and cycle time are also values that represent effort versus output. After all, not all effort resolves in progress and not all output leads to outcomes you’re looking for. What does it really take to create this product? And what does it take to create this product once our team makes it? What about our customer orders — do those match up with our fulfillment plans? All of these questions and more can be answered with the help of these two tools. What do both lead time and cycle time metrics miss? Lead time and cycle time metrics miss the human element of project management. Although there are ideal turnaround times for a product or service, there may be interferences that you simply can’t account for in a mathematical model. For example, unexpected supply chain hiccups or sudden team shakeups from the Great Resignation may create longer than average cycle or lead times. Also, they may be great for predicting issues, but they’re not useful for diagnosing them. Only a holistic project management software can give you the full picture of what’s going on. Even if you know you need to make a change, simply relying on lead time and cycle time to determine your course of action may negatively impact other areas of your business if not used wisely. Cycle time vs. lead time vs. takt time The cycle time, lead time, and takt time are the three key factors that determine the average time it takes to produce a product. To better understand what they are and how they compare, let’s take a look at how to calculate each one: Cycle time: When the team begins to fill one customer order/ number of units in one customer order Lead time: When the incoming work request is received — the time it takes to deliver the end product Takt time: Total number of work hours available/ total number of products needed to meet total customer demand As you look at these equations, it’s easy to spot the differences. Cycle time and lead time refer to a singular order, whereas takt time refers to overall customer demand. This means that cycle time and lead time are smaller values within takt time. Lead time is useful for setting customer expectations of delivery times. The lag time between when the order is placed and the cycle time begins can sometimes take longer than the time it takes to create the product itself. This means that it’s important to incorporate the entire lead time in with delivery estimates. If you only use the cycle time to set expectations, customers may feel disappointed when their product takes longer to get to them than they were originally told. To summarize: Cycle time measures the time it takes your team to complete an order. Lead time measures the time it takes between order input and fulfillment. Lead time measures how long it takes to fulfill one order. Takt time measures the total number of hours you have available and how many average orders you can fulfill within that time frame. How to manage time metrics with Wrike Understanding both cycle time and lead time metrics will help you keep track of your team’s progress. It will also provide insight into how to pick up the pace and ensure that your customers are satisfied. There are plenty of tools available to help you determine cycle and lead time, but understanding how they're calculated can be helpful in planning releases. Project management solutions like Wrike add context to your metrics and make it possible to plan, monitor, and measure different strategies to improve them. One of the biggest obstacles to accurately measuring both cycle time and lead time is updating progress statuses. From order input to order fulfillment, there are quite a few different phases a request can go through. If even one status update is missed, the entire team can lose track of where they are in the fulfillment cycle. Wrike offers a few different features to help keep track of the statuses of all your projects, orders, and tasks. First, there are detailed task views which allow users to choose from a customizable menu of status updates. Then, once the task is marked as ready for review or ready for the next phase, Wrike will automatically trigger a notification to the next responsible party, saving time on individual updates and eliminating the opportunity for team members to miss the change on their own. Wrike also has time tracking, a must-have data feature for measuring cycle time and lead time. Time tracking is automatically recorded and measured so that project leaders can measure progress. This information helps laser focus on which phases or team members are responsible for higher than expected numbers. And with Wrike’s reporting capabilities, it’s easy to turn those insights into actionable adjustments. Now that you understand the nuances of cycle time vs. lead time, you’re ready to apply what you’ve learned with Wrike. Improve productivity, manage resources more efficiently, and better understand which processes are or not working with Wrike’s two-week free trial.
6 Project Management Trends to Expect in 2022
Project management will undergo significant changes this coming year. Worldwide physical and cultural events are shaping every new project management trend happening in the industry. They may even be transforming the entire project management discipline. Keep reading to stay in the know about some of the most notable changes, alongside our predictions for what to expect in the near future. What are the current trends in project management? While we all want to see into the future of project management trends, these current industry ideas are sure to influence project management teams for months to come: Improving communication across blended teams Effective communication skills are required to stay motivated during and after the pandemic. This means having the necessary tools and expertise to work remotely. Today’s project managers must learn how to use systems that overcome the challenges of working from home. Not only does improving communication increase productivity, but it may also improve mental health in the workplace after the pandemic. Maximizing the effectiveness of hybrid and remote work Even after the global pandemic has subsided, the hybrid work model will still be a staple of business moving forward. There are many advantages to having face-to-face interaction with employees. However, this interaction will require the use of new technology and strategies to manage it properly. Embracing Agile as a means to combine strategy with output In 2022, companies will need to ensure that their teams are Agile and fast-moving. Instead of having a one-size-fits-all framework, teams will need to have the knowledge and experience necessary to choose strategic frameworks that fit their needs. Over the past year, more companies have started using Agile methods to improve their project management processes. We would expect them to increase their usage in the coming years. A prediction of future trends in project management Based on our experience and research, we believe that the following future trends in project management are worth exploring. Use each one to better understand your goals for the upcoming year and what the industry may look like in a few months' time. 1. Fully remote project teams The onset of the coronavirus pandemic forced many organizations to rethink their work-from-home policies. As a result, many workers in the US have shifted to working from home full- or part-time. That means project management is no longer confined to the typical office. Some tasks are more easily carried out when team members are located close to one another. For instance, team building exercises are less time-consuming when done face-to-face. Despite the challenges, remote work has many advantages that can help organizations attract and retain top talent. For instance, it allows employees to work from anywhere in the world. Alongside that, full-time employees are increasingly working as members of dispersed, global teams, communicating and coordinating via online software and apps. Technology plays a huge role in that. Meetings are held via Zoom, tasks are tracked in a project management tool,and schedules are developed and delivered to team members entirely online. Since the rise of remote work is likely to continue, project managers need to find ways to reduce friction and make their work more efficient. So the question to ask yourself is: can you improve your projects by bringing on freelancers or remote workers? If the answer is yes, don't hold back because of technology complications — the right tech exists to support you. 2. An increased dependency on project management tools Project management has always been a tool for carrying out goals and managing risk. Over the years, however, its scope has broadened to encompass a wide range of activities and initiatives. Project management tools help organizations execute their strategy but they can also be used to manage the portfolio and the various tasks related to that strategy. Doing so will help them make more informed decisions and improve their organizations' progress on key goals while providing more value. There are external project management trends affecting our dependence on these tools too. As the world changes due to the rise of artificial intelligence and machine learning, project management will be affected by the need to collect and analyze vast amounts of data. Exactly how this will play out is difficult to predict but most experts agree that it will be unavoidable. 3. A focus on enhanced collaboration The true digital transformation of project management should be complete by the end of 2022. We’re referring to relying on online tools for collaboration and coordination between teams, and not just complex back-and-forth email exchanges. New remote, hybrid, and flexible working options allow employees to work wherever they want, while employers benefit from the higher quality output of their workers. Despite the advantages of distributed teams, it can be very challenging to promote collaboration among the employees. In an effort to solve this issue, many companies have started implementing online project management tools. For example, some teams use multimedia conferencing so that remote workers can still meet and communicate with their in-house counterparts. Others use project management software such as Wrike to plan, schedule, and monitor progress across all active initiatives. No matter which tools you choose to use in 2022, one thing is clear: learning how to work well with others despite physical barriers will continue to be essential as we continue to deal with the global pandemic. 4. Understanding different types of soft skills Project managers typically need a certain level of expertise in various areas of operations in order to be successful in their roles. However, without the right combination of soft skills, they may not be able to effectively manage people and produce the best results. First and foremost, the ability to communicate expectations and work well with all parties involved is very important. This is why soft skills such as empathy, decision-making, and leadership are critical to a project's success. A project manager who has these abilities plays a critical role in improving the entire team’s performance as both a model for behavior and setting the tone for workplace culture. Because at the end of the day, the project manager will determine the level of cooperation between the team members until the project is finished. Wondering how to stay ahead of the curve and improve your own soft skills? Here are some tips to practice: Don’t make assumptions about what others are thinking and feeling. Encourage discussion and always get important project details in writing. Encourage employees to be themselves, contribute to project planning, and express their personalities. Connect on a deeper level with individual team members by asking questions about their life outside of work. Learn how to properly apologize and resolve an argument for yourself and for others. Be open to feedback. You can always learn and improve. 5. Emphasis on avoiding physical and mental stress In 2022, we predict you'll be more challenged by employee development than employee retention, requiring your new team members to settle in faster with optimized training programs and work delegated to new team members sooner. Avoiding physical and mental stress will be a large part of keeping employees happy, healthy, and on your team. You may not realize it but there are a lot of ways you can make work smoother for your entire team. Here’s how: Set clear expectations with goals and deadlines This method would allow your team members to focus on the things that they're good at and not on the things that they're not good at. It would also prevent them from accidentally repeating the same exercises or processes. Offer schedule flexibility Everyone wants to work more flexible hours. This is why it is important to allow your team members to work without being monitored often. They can only complete their work once specific deadlines have been met. Address issues, if they ever come up, and focus on making work easier for everyone involved. You can also provide more freedom in terms of where employees can work from. Offer at least one work from home day per week or month. Or, if your employees are local and have been entirely remote, give them a desk to come in and work from if they ever need it. Make fitness part of workplace culture Your staff members should take time to exercise. Some ways to ensure this include offering some assistance through onsite yoga classes, walking meetings, or even small activities such as a group stretching session every morning. Offer more praise than criticism Great managers recognize the efforts of their team members. They can either congratulate them on a great job in private or make a small announcement about their achievements during a weekly meeting. Even a small acknowledgment of someone’s hard work can make a big difference in how they feel about the project so far. 6. A continued concentration on Agile methodology Agile development is a set of principles that enables developers to get started with projects without having to learn how to manage traditional tasks and processes. With Agile, teams can easily break down a project into multiple stages, allowing them to manage the work seamlessly. It also allows them to collaborate more effectively with project stakeholders. Not only is it more adaptable—a must now that we’re seeing a renewed importance on remote work flexibility and increased attention on how we collaborate—but it’s also completely customizable. How Wrike will help with project management in 2022 Wrike is a project management tool built to bring teams into the future of work with all the support they need to get ahead of new project management trends. That includes managing complex project phases, communicating across teams and departments, and collaborating seamlessly. Managing complex project phases Complex projects require a phased approach to ensure they meet expectations and budgets. They also require a team effort to identify and understand the various dependencies that could affect the project's success. The Complex Project With Phases template by Wrike simplifies the management of large, complex projects. It features a variety of predefined phases and tasks, and it can be viewed in the project chart view. Communicating across teams and departments Communication is a vital component of a successful project, especially when juggling hybrid and remote teams. Without a good communication plan, it’s easy for misunderstandings to happen between the teams and departments. This template will help you build a consistent cadence for communicating with the team and stakeholders. Use it to create a project schedule to keep track of all the updates that are needed by each stakeholder. Collaborating with everyone involved With more people working remotely, the need for effective collaboration tools is more important than ever. The good news is that thanks to Wrike, teams can work seamlessly from anywhere. Use Wrike to create a digital workspace that's organized and secure in the cloud. Our project management platform is ideal for securely storing all your files and details with individualized permission settings. Teams can work more effectively with others through Wrike’s custom-field request forms and tools. Wrike’s tools will also help you cut down on emails and make suggestions in real time. Get a jump-start on your 2022 project management with Wrike’s two-week free trial.
Why is Project Management an Important Skill for Managers?
What does it take to be a great manager? What skills do you need to be an effective leader? We break down the most important competencies you need to be an effective manager and the project management skills you need to lead your team to success.
What is Takt Time & Why Does it Matter?
Even though it’s a simple concept, takt time can be a very powerful tool for project managers who need a more productive strategy. Knowing the exact production rate of a project will help you avoid running out of time or resources. It will also help your organization increase profits and better serve customer needs. In this article, we’ll answer all of your top questions about takt time along with examples, benefits, and more. What is takt time? Takt time is a formula that enables you to manage every step of the manufacturing process efficiently and without waste. The total represents the time it takes to make a product to meet a customer's demand. It does not include unsupervised work time such as lunch breaks or scheduled maintenance. Takt time is a German term created by airplane manufacturers in the 1930s that means "to regulate the tempo" or "to play" music, which makes sense considering the symphony of complex steps needed to complete most projects. Manufacturers use the calculation to control the speed of their production lines. But it can also be used by project management offices and marketing managers to efficiently pace out initiatives. This calculation allows businesses to effectively create supply without leaving too much inventory on the market. Takt time also shows the rate at which a finished product should be produced which improves the accuracy of project planning and setting clear expectations. Additionally, takt time helps to monitor the efficiency of a production line once it is up and running, as well as the performance of the entire process, to ensure that waste is removed. All in all, it’s useful for both managing time and predicting any future production issues. Takt time can be used in any phase of project planning to improve productivity. Because takt time makes it easier to adjust competing project schedules without losing progress on either, managers will often use takt time to maintain a continuous flow of products without wasting any resources. Project management solutions such as Wrike are great for tracking takt time and improving resource management. The goal is to get rid of the non-value-adding activities that we don't need to complete. This makes it a strong incentive to get rid of those tasks that are not related to the work in order to improve takt time. Wrike has several features that assist with this, including time tracking, visual project planning charts, and reporting. How to calculate takt time It's important to know the exact takt time of your product to avoid wasting it. The good news is that calculating takt time is relatively simple. Knowing the time it takes to meet a customer’s demand is not rocket science. This data can be pulled from your project management tool’s report features to help you make informed decisions about how to manage your team’s workloads across an entire portfolio of active projects. Monitoring takt time can make a significant difference on success during the lifecycle of a project. For example, when the demand for takt time rises so much that it has to come down, managers can reorganize activities to fit into the shorter takt time. Here’s the simple formula you can use to accurately calculate takt time: Takt time = the total number of available working hours divided by customer demand. Tip: In order to get the most out of the lean process, it’s important to break down the production into smaller cycles. Then, compare the takt time for the total project to the individual cycles to get a more accurate estimate. Takt time example Using the takt time formula, we can look at a simple example of how to calculate and understand the results: Let’s say there are eight working hours in a day. Right now, customers demand one item that takes eight hours to make. The takt time equals one working day. Some will break down those hours into minutes and calculate minutes per item creation. In this example that would be eight hours x 60 minutes or a takt time of 480 minutes. If there are any breaks, meetings, administrative tasks, or work unrelated to the direct project outcome within that eight-hour period, you’ll have to subtract the average minutes from that total for your takt time calculation. What are the benefits of takt time? Takt time is a popular project management tool for a reason. Whether you want to master leads and lags or simply manage incoming work requests without derailing progress in other areas, then takt time is for you. Here are the benefits of takt time you can achieve regardless of your industry: Create efficient processes Takt time helps Scrum project managers measure exactly how much they’ll need to shave off of production time in order to meet customer demand. With this in mind, they can find new methods for task scheduling, planning, and execution. Instead of overhauling the entire process, they can instead focus on the areas that need the most improvement and go from there until they meet their goal. Eliminate or reduce waste Takt time is all about efficiently using project resources. When you’re focused on improving productivity to reach a specific time goal, it’s easier to identify which resources can be used in smarter ways. If you’re using a project management tool, this can look like finding roadblocks ahead of time or sending automated notifications to team members once it’s their turn to begin their portion of the project. Strategically manage inventory Customer demand ebbs and flows throughout the year for many industries. By using takt time, managers can accurately forecast so that their production aligns with customer demand, saving time and money on wasted output. Manage time wisely Takt time is best for deciding where you should invest more or less time as a team. Many managers who use takt time often find and eliminate bottlenecks in their process that they may not have found otherwise. Set the right pace Takt time helps managers holistically set the pace for multiple ongoing projects. As you receive incoming work requests, experience delays, and manage customer expectations, you may find that some projects must be slowed while others are rushed in order to adjust. By using takt time, you’ll be able to properly pace out initiative while keeping everything on course. Are there limitations of takt time? Takt time, like any project management strategy, does have its limitations. Over the course of an active project, the task hierarchy has to be leveled to make sure that the tasks are not bulked in front of certain phases. This prevents the action plan created from the takt time calculation from being flexible as a whole. Also, the concept of takt time does not take into account the human factors that happen during certain processes, such as a team member needing a longer lunch or PTO. This means that the demand must be leveled in order to make the processes more efficient. Takt time vs cycle time vs lead time While cycle time and takt time are both commonly used by lean practitioners, they measure different things. Cycle time is the time it takes for the team to complete a task or order from start to finish. Takt time is the time it takes to finish a product to meet demand. For example, if a customer orders a new product every hour, the team needs to finish it in an hour or less. That means the takt time must be less than an hour. If the team takes longer than an hour (the cycle time), then the process will need to be streamlined or minimized in order to align with the takt time. People also tend to confuse the terms cycle time and lead time, which are both lean metrics. Lead time is the time it takes for a customer order to be fulfilled. And, as we’ve already mentioned, cycle time is the time it takes for a team to complete a task. For example, if a single customer order takes five hours to fill but the team needs six hours instead, they’ll need to adjust their own timeline to meet the customer demand (takt time). And unlike takt time, which refers to meeting customer demand, lead time focuses instead on individual order fulfillment. Still not sure what the difference is between takt time vs cycle time vs lead time? Here’s a handy summary: Takt time = how long it takes to meet customer demand in general Cycle time = how long it takes for a team to complete an order or project Lead time = how long it takes to fulfill an individual customer’s order In conclusion A production system that is designed to provide continuous flow and value for the customer is ideal for minimizing waste and producing high-quality results. Wrike offers features such as visual project status dashboards and teamwide time management that make it easier to analyze and adjust your takt time. Start your free two-week trial of Wrike and begin mastering this powerful project management tool today.