Lag and Lead - Revision history

Jacob Lützhøft: /* References */

2021-02-28T22:39:33Z

References

← Older revision		Revision as of 22:39, 28 February 2021
Line 160:		Line 160:
	[[Category: Lag and Lead]]		[[Category: Lag and Lead]]
	[[Category: Project Management]]		[[Category: Project Management]]
			[[Category: Portfolio Management]]
			[[Category: Program Management]]

Jacob Lützhøft at 22:38, 28 February 2021

2021-02-28T22:38:17Z

← Older revision		Revision as of 22:38, 28 February 2021
Line 158:		Line 158:
	<References/>		<References/>

	[[Category: Lag and Lead]		[[Category: Lag and Lead]]
	[[Category: Project Management]]		[[Category: Project Management]]
	~~[[Category: APPM]]~~
	~~[[Category: Gantt]]~~
	~~[[Category: Sequence Activities]]~~
	~~[[Category: Project Schedule Network Diagram]]~~
	~~[[Category: Key Performance Indicator]]~~
	~~[[Category: Critical Path Method]]~~
	~~[[Category: The Balanced Scorecard]]~~
	~~[[Category: The Strategy Map]]~~

Jacob Lützhøft at 22:36, 28 February 2021

2021-02-28T22:36:24Z

← Older revision		Revision as of 22:36, 28 February 2021
Line 158:		Line 158:
	<References/>		<References/>

	[[Category: ~~BLA BLA~~]]		[[Category: Lag and Lead]
	[[Category: ~~BLA BLA BLA~~]]		[[Category: Project Management]]
			[[Category: APPM]]
			[[Category: Gantt]]
			[[Category: Sequence Activities]]
			[[Category: Project Schedule Network Diagram]]
			[[Category: Key Performance Indicator]]
			[[Category: Critical Path Method]]
			[[Category: The Balanced Scorecard]]
			[[Category: The Strategy Map]]

Jacob Lützhøft at 22:34, 28 February 2021

2021-02-28T22:34:30Z

Show changes

Jacob Lützhøft at 22:05, 28 February 2021

2021-02-28T22:05:50Z

← Older revision		Revision as of 22:05, 28 February 2021
Line 123:		Line 123:

	Lag and lead times does not include the duration of activities in the project network. It is purely a schedule measure to determine whether or not a given activity can be delayed or advanced. They are necessary and important, however they do not provide further insight to the sequencing of activities other than the time schedule by themselves.		Lag and lead times does not include the duration of activities in the project network. It is purely a schedule measure to determine whether or not a given activity can be delayed or advanced. They are necessary and important, however they do not provide further insight to the sequencing of activities other than the time schedule by themselves.

			Lag and lead times are also not absolute and can be a subject to change throughout the course of the project, and can be very hard to determine in the beginning of the project. Therefore project network usually needs to be updated as the project progresses. It is of utmost importance for a project manager to keep this in mind, as the consequences for the scheduling can be severe if wrong lag and lead times are used.

	=== Limitations of lag and lead as Key Performance Indicators ===		=== Limitations of lag and lead as Key Performance Indicators ===

Jacob Lützhøft at 22:02, 28 February 2021

2021-02-28T22:02:01Z

← Older revision		Revision as of 22:02, 28 February 2021
Line 125:		Line 125:

	=== Limitations of lag and lead as Key Performance Indicators ===		=== Limitations of lag and lead as Key Performance Indicators ===
	Using lag and lead indicators as Key Performance Indicators, it is important to remember that they are dependant on each other. Lead indicators are exciting because they can influence change, but without lagging indicators, leading indicators will encourage tunnel vision, and provide no confirmation that the desired ~~result~~ have been achieved. <ref name="intra"/> Lagging indicators without leading indicators provide no indicators on how to achieve or change results. <ref name="intra"/>		Using lag and lead indicators as Key Performance Indicators, it is important to remember that they are dependant on each other. Lead indicators are exciting because they can influence change, but without lagging indicators, leading indicators will encourage tunnel vision, and provide no confirmation that the desired results have been achieved. <ref name="intra"/> Lagging indicators without leading indicators provide no indicators on how to achieve or change results. <ref name="intra"/> Lagging indicators are also very easy to measure, but hard to improve, whereas leading indicators, if relied on too much can distort course of the project. When using lead indicators, it is important to differentiate between trying to predict the future, and searching for tendencies.

			Leading indicators alone will show a future that is unreliable. The tendencies achieved from measuring leading indicators should be carefully examined. Exterior factors can influence the indicators, and therefore it is very important for a manager not to get tunnel vision. They are not an accurate representation of the future, but they are however representations of tendencies, that can be pursued. These tendencies have to undergo careful examination in order to determine the best possible way to pursue the desired direction or outcome. In order to reach that destination, lagging indicators are just as important, to track whether the management is on the right path. Knowing the limits of the tools is crucial for the project manager to use them correctly.

Jacob Lützhøft at 21:51, 28 February 2021

2021-02-28T21:51:50Z

← Older revision		Revision as of 21:51, 28 February 2021
Line 19:		Line 19:
	As key perfomance indicators lag and lead is incredibly co-dependant and can be used as indication for project performance, cost, quality and more.		As key perfomance indicators lag and lead is incredibly co-dependant and can be used as indication for project performance, cost, quality and more.

	A lead indicator, is an indicator which is forward looking. Meaning it attempts to show a future perfomance. These indicators can be difficult to determine, as they are prone to subjectivity and error, and can cause debate as to the validity of the lead indicators measured. <ref>[https://www.intrafocus.com/lead-and-lag-indicators/ ''Lead and Lag Indicators'', Intrafocus, Last visited: 14/02/21]</ref>. Lagging indicators measure historical perfomance, and tends to focus on outcomes. This makes them easy to record, and they are essential for charting progress, however they do not influence the future as lead indicators do. The power of lead indicators is that they have the ability to predict future conditions, and allow you to take preemptive actions in order to achieve strategic goals. However to predict future conditions, it is necessary to use lagging indicators which essentially record current conditions. These indicators can in combination be applied to determine trends and record the degree of success of pursuing these trends.		A lead indicator, is an indicator which is forward looking. Meaning it attempts to show a future perfomance. These indicators can be difficult to determine, as they are prone to subjectivity and error, and can cause debate as to the validity of the lead indicators measured. <ref name="intra">[https://www.intrafocus.com/lead-and-lag-indicators/ ''Lead and Lag Indicators'', Intrafocus, Last visited: 14/02/21]</ref>. Lagging indicators measure historical perfomance, and tends to focus on outcomes. This makes them easy to record, and they are essential for charting progress, however they do not influence the future as lead indicators do. The power of lead indicators is that they have the ability to predict future conditions, and allow you to take preemptive actions in order to achieve strategic goals. However to predict future conditions, it is necessary to use lagging indicators which essentially record current conditions. These indicators can in combination be applied to determine trends and record the degree of success of pursuing these trends.


Line 43:		Line 43:
	*The customers could however in the same case be a lagging indicator for the sales team, as they are the recorded number of customers facilitated.		*The customers could however in the same case be a lagging indicator for the sales team, as they are the recorded number of customers facilitated.

	How to use these indicators is very much up for interpretation, as they indicate different scenarios based on the perspective. To use the strategy map you develop the objectives in each perspective and the cause and effect relationship between them. Then you look for measures and indicators of each objective. This gives you measures in each perspective that should monitor the deliver of the strategy’s cause and effect model.		How to use these indicators is very much up for interpretation, as they indicate different scenarios based on the perspective. To use the strategy map you develop the objectives in each perspective and the cause and effect relationship between them. Then you look for measures and indicators of each objective. This gives you measures in each perspective that should monitor the deliver of the strategy’s cause and effect model. These causes and effects can differ widely, and can be interpreted and utilised in project management as well as portfolio and program management.

			For project management, instead of just using lead and lag as indicators for the time aspect, leading and lagging can be used other perspectives, such as cost and quality. All project activities indicate and record the expected and past performance of the project in regards to various perspectives. From a project manager's point of view, these indicators and records should be put to use, to determine the course of the project so far, and in the future. This could be done with the strategy map, for various perspectives. This will allow the manager to change various activities and methods in order to best fulfil the scope of the project and ensure project success. What has become clear through research, is the fact that using the combination of lag and lead indicators has proven to enhance business performance overall. <ref name="intra"/>


Line 117:		Line 119:

	= Limitations =		= Limitations =
	~~This section will elaborate on the importance of knowing the limits~~ of lag and lead as tools, as ~~well as~~ the ~~limitation~~ of lag and lead as ~~independent~~ indicators.		=== Limitations of lag and lead in Sequencing Activities ===
			When using lag and lead for sequencing activities it is important to note, that it is not a method that can be used as a standalone. Lag and lead must be used in combination with other tools, as the lag and lead times in a Project Schedule Network Diagram are negligible without determining the logical relationships between the activities. In other words, there would be no use for them.

			Lag and lead times does not include the duration of activities in the project network. It is purely a schedule measure to determine whether or not a given activity can be delayed or advanced. They are necessary and important, however they do not provide further insight to the sequencing of activities other than the time schedule by themselves.

			=== Limitations of lag and lead as Key Performance Indicators ===
			Using lag and lead indicators as Key Performance Indicators, it is important to remember that they are dependant on each other. Lead indicators are exciting because they can influence change, but without lagging indicators, leading indicators will encourage tunnel vision, and provide no confirmation that the desired result have been achieved. <ref name="intra"/> Lagging indicators without leading indicators provide no indicators on how to achieve or change results. <ref name="intra"/>


	~~Not a standalone method. Lag and lead is useless without determining logical relationships.~~

	~~----~~
	~~Finish~~
	~~...~~
	~~...~~
	~~...~~
	~~...~~
	~~...~~
	~~...Lag can also be represented in project schedule network diagrams as shown in Figure 6-11 in the relationship between activities H and I (as indicated by the~~
	~~nomenclature SS+10 (start-to-start plus 10 days lag) even though the offset is not shown relative to a timescale).~~

	~~...~~
	~~...~~
	~~...~~
	~~...~~
	~~...~~
	~~...~~
	~~...~~
	~~...~~
	~~...~~


	= ~~References~~ =		= Annotated Bibliography =
	Examples		Examples
	<References/>		<References/>

Jacob Lützhøft at 21:22, 28 February 2021

2021-02-28T21:22:58Z

← Older revision		Revision as of 21:22, 28 February 2021
Line 1:		Line 1:
	''Jacob Lützhøft Christensen s184113''		''Jacob Lützhøft Christensen s184113''

	In the field of project schedule management, the terms lag and lead are widely utilised to maintain project schedule by determining possibilities of schedule advancement or delay. A lead is the amount of time a successor activity can be advanced with respect to a predecessor activity. <ref name="PMBOK">[https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc//root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation ''Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition'', Project Management Institute, Inc. (PMI), 2017]</ref> A lag is the amount of time a successor activity will be delayed with respect to a predecessor activity. <ref name="PMBOK"/> Traditionally the measure of project success has been limited to concepts of time, quality and cost, however these concepts might not provide a full picture of project success. <ref>[https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=4863041 ''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition'', AXELOS and Office Cabinet, 2017]</ref> In the traditional sense of project success, lag and lead has had an important role in fulfilling the need of time management in projects, however the terms of lag and lead are not purely schedule management tools. According to the project management standard PRINCE 2, the status of projects are best measured for one point in time by its key performance indicators (KPI), which should be balanced between qualitative and quantitative measures, leading and lagging indicators, and project inputs and outputs. <ref>[https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=4863041 ''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition'', AXELOS and Office Cabinet, 2017]</ref>		In the field of project schedule management, the terms lag and lead are widely utilised to maintain project schedule by determining possibilities of schedule advancement or delay. A lead is the amount of time a successor activity can be advanced with respect to a predecessor activity. <ref name="PMBOK">[https://app-knovel-com.proxy.findit.dtu.dk/web/toc.v/cid:kpGPMBKP02/viewerType:toc//root_slug:viewerType%3Atoc/url_slug:root_slug%3Aguide-project-management?kpromoter=federation ''Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition'', Project Management Institute, Inc. (PMI), 2017]</ref> A lag is the amount of time a successor activity will be delayed with respect to a predecessor activity. <ref name="PMBOK"/> Traditionally the measure of project success has been limited to concepts of time, quality and cost, however these concepts might not provide a full picture of project success. <ref name="Prince2">[https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=4863041 ''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition'', AXELOS and Office Cabinet, 2017]</ref> In the traditional sense of project success, lag and lead has had an important role in fulfilling the need of time management in projects, however the terms of lag and lead are not purely schedule management tools. According to the project management standard PRINCE 2, the status of projects are best measured for one point in time by its key performance indicators (KPI), which should be balanced between qualitative and quantitative measures, leading and lagging indicators, and project inputs and outputs. <ref name="Prince2"/>

	A key perfomance indicator (KPI) is a measure of performance that is used to help an organization define and evaluate how successful it is in making progress towards its organizational objectives. <ref>[https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/DTUDK/detail.action?docID=~~4863041 ''Project Management:~~ "~~Managing Successful Projects with PRINCE2~~" ~~6th Edition'', AXELOS and Office Cabinet, 2017]<~~/~~ref~~> These indicators are widely used in organisational contexts, to measure, record, predict and improve perfomance. Indicators for future and past performances are time-based indicators which are distinguished by the terms: lag and lead indicators. This means that lag and lead are not limited to scheduling activities in a task sequence format, but can be used as indicators to determine the perfomance of a project's quality and cost at a given time as well.





			A key perfomance indicator (KPI) is a measure of performance that is used to help an organization define and evaluate how successful it is in making progress towards its organizational objectives. <ref name="Prince2"/> These indicators are widely used in organisational contexts, to measure, record, predict and improve perfomance. Indicators for future and past performances are time-based indicators which are distinguished by the terms: lag and lead indicators. This means that lag and lead are not limited to scheduling activities in a task sequence format, but can be used as indicators to determine the perfomance of a project's quality and cost at a given time as well.


Line 26:		Line 21:
	A lead indicator, is an indicator which is forward looking. Meaning it attempts to show a future perfomance. These indicators can be difficult to determine, as they are prone to subjectivity and error, and can cause debate as to the validity of the lead indicators measured. <ref>[https://www.intrafocus.com/lead-and-lag-indicators/ ''Lead and Lag Indicators'', Intrafocus, Last visited: 14/02/21]</ref>. Lagging indicators measure historical perfomance, and tends to focus on outcomes. This makes them easy to record, and they are essential for charting progress, however they do not influence the future as lead indicators do. The power of lead indicators is that they have the ability to predict future conditions, and allow you to take preemptive actions in order to achieve strategic goals. However to predict future conditions, it is necessary to use lagging indicators which essentially record current conditions. These indicators can in combination be applied to determine trends and record the degree of success of pursuing these trends.		A lead indicator, is an indicator which is forward looking. Meaning it attempts to show a future perfomance. These indicators can be difficult to determine, as they are prone to subjectivity and error, and can cause debate as to the validity of the lead indicators measured. <ref>[https://www.intrafocus.com/lead-and-lag-indicators/ ''Lead and Lag Indicators'', Intrafocus, Last visited: 14/02/21]</ref>. Lagging indicators measure historical perfomance, and tends to focus on outcomes. This makes them easy to record, and they are essential for charting progress, however they do not influence the future as lead indicators do. The power of lead indicators is that they have the ability to predict future conditions, and allow you to take preemptive actions in order to achieve strategic goals. However to predict future conditions, it is necessary to use lagging indicators which essentially record current conditions. These indicators can in combination be applied to determine trends and record the degree of success of pursuing these trends.

	~~[[File:Sort.jpg\|thumb\|Black Box, Description, Date]]~~


Line 32:		Line 27:
	= Application =		= Application =

	~~This section investigates~~ lag and ~~lead as KPI's~~ and ~~for schedule~~ management ~~activities~~ in ~~a PPPM context~~.		== Using Lag and Lead as Key Performance Indicators ==
			From the british standard for project management "Prince 2", the definition of lead and lag indicators is: <ref name="Prince2"/>

			*Lagging indicators measure performance that follows events, and allow management to track how well actual performance matches that which was expected. An example could be the number of unexpected errors reported after a particular software release .

			*Leading indicators measure progress towards events, and allow management to track whether it is on course to achieve the expected performance. An example would be the persistent failure of a supplier to meet quality requirements early in the project.

	~~== Using Lag and Lead as Key Performance Indicators ==~~

	~~Using~~ lag and lead indicators in a ~~project~~, ~~portfolio~~ and ~~program~~ management ~~context~~, ~~the tool~~ can be ~~applied in combination with~~ a ~~strategy map~~ and the balanced scorecard. ~~The~~ strategy map ~~is a basic cause~~ and ~~effect model, used along with~~ the ~~balanced scorecard that contains~~ the ~~measure~~.		=== The Strategy Map and Balanced Scorecard ===
			[[File:Strategymap.jpg\|400px\|thumb\|left\|Figure x, Perspectives of a balanced scorecard arranged as a simple cause and effect model, From excitant.co.uk <ref name="stratmap">[https://www.excitant.co.uk/leading-and-lagging-indicators-making-sense-of-them/ ''Leading indicators and lagging indicators – making sense of them'', Phil Jones (2017), Last visited 28/02/21]</ref>]]
			Across the perspective of the balanced scorecard, lag and lead indicators can be found. <ref name="stratmap"/> This shows that the leading and lagging indicators are all a matter of perspective. These can be used program and portfolio management to indicate a future performance, or record past performances and learn from those. For project management, these indicators can also be used to determine the degree of success recorded, or obtainable by a given project. However, the specific indication and how to use them is always a matter of the perspective. This is why the balanced scorecard showcases these key performance indicators well. From figure x the perspectives of a balanced scorecard is visualised and made into a strategy map. Kaplan and Norton argued that the leading indicators of one perspective lies in the perspective below. For example:

			*In this case, a leading indicator for finances would be the customers. These customers could be an indication of end-of-year profits for an organisation.

			*The customers could however in the same case be a lagging indicator for the sales team, as they are the recorded number of customers facilitated.

	~~=== The Balanced Scorecard ===~~		How to use these indicators is very much up for interpretation, as they indicate different scenarios based on the perspective. To use the strategy map you develop the objectives in each perspective and the cause and effect relationship between them. Then you look for measures and indicators of each objective. This gives you measures in each perspective that should monitor the deliver of the strategy’s cause and effect model.
	~~This section will elaborate~~ on the strategy map and ~~balanced scorecard.~~
	~~...~~
	...


	~~==== Section ====~~
	~~...~~

	== Using Lag and Lead to sequence activities ==		== Using Lag and Lead to sequence activities ==

Jacob Lützhøft at 20:21, 28 February 2021

2021-02-28T20:21:25Z

← Older revision		Revision as of 20:21, 28 February 2021
Line 98:		Line 98:

	=== Critical Path Method ===		=== Critical Path Method ===
	[[File:CPM.png\|400px\|thumb\|right\|Figure x, Example of ~~a Project Network Schedule Diagram~~, From ~~Project Management info, last visited 28/02/21~~ <ref name="~~pminfo~~"/>]]		[[File:CPM.png\|400px\|thumb\|right\|Figure x, Example of the Critical Path Method, From PMBOK Guide 6th edition 2017 <ref name="PMBOK"/>]]
	According to the PMI standard for project management: The critical path method is used to estimate the minimum project duration and determine the amount of schedule flexibility on the logical network paths within the schedule model. <ref name="PMBOK"/> By performing a backwards and forwards pass analysis through the project network, this method calculates the early start, early finish, late start and late finish dates of all activities without any regard for resource limitations. <ref name="PMBOK"/> In figure x, the longest path is shown with black arrows. This path, since it's the longest, determines the earliest completion time of the given project. This is known as the critical path, and it is often the path with the least amount of float.		According to the PMI standard for project management: The critical path method is used to estimate the minimum project duration and determine the amount of schedule flexibility on the logical network paths within the schedule model. <ref name="PMBOK"/> By performing a backwards and forwards pass analysis together with lag and lead times through the project network, this method calculates the early start, early finish, late start and late finish dates of all activities without any regard for resource limitations. <ref name="PMBOK"/> In figure x, the longest path is shown with black arrows. This path, since it's the longest, determines the earliest completion time of the given project. This is known as the critical path, and it is often the path with the least amount of float.

	Float is not to be confused with lag and lead. The float is defined as: "The total float or schedule flexibility is measured by the amount of time that a scheduled activity can be delayed or extended from its early start date without delaying the project finish date or violating a schedule constraint."<ref name="PMBOK"/> Where lag and lead times show the possible delay or advancement in relation to other activities, the float is an indicator of the schedule's flexibility. Therefore it makes sense that the critical path, would be the path with the least float time, as delaying an activity in the critical path would usually extend the project finish date.		Float is not to be confused with lag and lead. The float is defined as: "The total float or schedule flexibility is measured by the amount of time that a scheduled activity can be delayed or extended from its early start date without delaying the project finish date or violating a schedule constraint."<ref name="PMBOK"/> Where lag and lead times show the possible delay or advancement in relation to other activities, the float is an indicator of the schedule's flexibility. Therefore it makes sense that the critical path, would be the path with the least float time, as delaying an activity in the critical path would usually extend the project finish date.

			To calculate the early start, early finish, late start, late finish and float first, the forward pass is used: <ref name="PMIcongress">[https://www.pmi.org/learning/library/critical-path-method-calculations-scheduling-8040 ''Kramer, S. W. & Jenkins, J. L. Understanding the basics of CPM calculations: what is scheduling software really telling you?'', Project Management Institute, Inc. (PMI), 2006]</ref>

			*Early Start = Maximum (or Highest) EF value from immediate Predecessor(s) + Lag/lead from immediate Predecessor(s)
			*Early Finish = ES + Duration

			Afterwards the backwards pass is used:

			*Late Start = LF – Duration
			*Late Finish = Minimum (or Lowest) LS value from immediate Successor(s) - Lag/Lead from Immediate Successor(s)

			These numbers are then used to calculate the float time:

			*Total Float = LS – ES (it is also calculated by LF – EF)
			*Free Float = Lowest ES of successors – EF


	= Limitations =		= Limitations =

Jacob Lützhøft at 19:52, 28 February 2021

2021-02-28T19:52:25Z

← Older revision		Revision as of 19:52, 28 February 2021
Line 98:		Line 98:

	=== Critical Path Method ===		=== Critical Path Method ===
	According to the PMI standard for project management: The critical path method is used to estimate the minimum project duration and determine the amount of schedule flexibility on the logical network paths within the schedule model. <ref name="PMBOK"/>
	[[File:CPM.png\|400px\|thumb\|right\|Figure x, Example of a Project Network Schedule Diagram, From Project Management info, last visited 28/02/21 <ref name="pminfo"/>]]		[[File:CPM.png\|400px\|thumb\|right\|Figure x, Example of a Project Network Schedule Diagram, From Project Management info, last visited 28/02/21 <ref name="pminfo"/>]]
			According to the PMI standard for project management: The critical path method is used to estimate the minimum project duration and determine the amount of schedule flexibility on the logical network paths within the schedule model. <ref name="PMBOK"/> By performing a backwards and forwards pass analysis through the project network, this method calculates the early start, early finish, late start and late finish dates of all activities without any regard for resource limitations. <ref name="PMBOK"/> In figure x, the longest path is shown with black arrows. This path, since it's the longest, determines the earliest completion time of the given project. This is known as the critical path, and it is often the path with the least amount of float.

			Float is not to be confused with lag and lead. The float is defined as: "The total float or schedule flexibility is measured by the amount of time that a scheduled activity can be delayed or extended from its early start date without delaying the project finish date or violating a schedule constraint."<ref name="PMBOK"/> Where lag and lead times show the possible delay or advancement in relation to other activities, the float is an indicator of the schedule's flexibility. Therefore it makes sense that the critical path, would be the path with the least float time, as delaying an activity in the critical path would usually extend the project finish date.