Project Planning & Scheduling

Last In, First Out ("LIFO")

Last In, First Out (LIFO) in Project Planning & Scheduling: A Misunderstood Method

The term "Last In, First Out" (LIFO) is often associated with inventory accounting, where the last unit purchased is assumed to be the first unit sold. However, LIFO can also be used in project planning and scheduling, though in a significantly different way.

Understanding LIFO in Inventory Accounting

In inventory accounting, LIFO assumes that the most recently acquired inventory items are the first ones sold. This method is particularly relevant in times of inflation, as it results in a higher cost of goods sold (COGS) and a lower net income, ultimately leading to lower taxes.

LIFO in Project Planning & Scheduling

While LIFO is not commonly used in project planning and scheduling, it's important to understand that it does not refer to the same concept as in inventory accounting. Instead, LIFO in this context could refer to the prioritization of tasks based on their latest deadline.

Example:

Imagine a project with three tasks:

  • Task A: Deadline - 1 week
  • Task B: Deadline - 2 weeks
  • Task C: Deadline - 3 weeks

Using a LIFO approach, the project manager would prioritize Task A (1 week deadline) first, followed by Task B (2 weeks deadline) and lastly Task C (3 weeks deadline).

Advantages and Disadvantages of Using a LIFO Approach in Project Planning:

Advantages:

  • Focus on Urgent Tasks: LIFO prioritizes immediate deadlines, ensuring crucial tasks are completed on time.
  • Avoid Late Deliverables: By focusing on tasks with the shortest deadlines, LIFO minimizes the risk of late deliverables.

Disadvantages:

  • Overlooks Long-Term Tasks: LIFO can lead to neglecting tasks with longer deadlines, potentially impacting the overall project completion.
  • Risk of Overwhelm: Prioritizing only the most urgent tasks might lead to a feeling of overwhelm, as less urgent but important tasks might be neglected.

Alternatives to LIFO:

  • First In, First Out (FIFO): Prioritizes tasks based on their earliest deadline.
  • Critical Path Method (CPM): Identifies the most critical tasks that must be completed on time to meet the project deadline.
  • Priority Matrix: Allows for ranking tasks based on their importance and urgency.

Conclusion:

While LIFO is a valid approach for inventory accounting, its application in project planning and scheduling is limited. It can be useful for prioritizing urgent tasks but should be considered alongside other methods to ensure a balanced and comprehensive project plan. Ultimately, the best approach depends on the specific project, its complexity, and the desired outcome.


Test Your Knowledge

LIFO Quiz: Project Planning & Scheduling

Instructions: Choose the best answer for each question.

1. What does LIFO stand for in project planning and scheduling? a) Last In, First Out b) Least Important, First Out c) Longest Duration, First Out d) Latest Deadline, First Out

Answer

d) Latest Deadline, First Out

2. How is LIFO different from its use in inventory accounting? a) It prioritizes the oldest tasks. b) It focuses on the most recently acquired resources. c) It prioritizes tasks with the latest deadlines. d) It focuses on the most important tasks.

Answer

c) It prioritizes tasks with the latest deadlines.

3. Which of the following is NOT an advantage of using a LIFO approach in project planning? a) Focus on urgent tasks. b) Efficient resource allocation. c) Avoid late deliverables. d) Clear prioritization.

Answer

b) Efficient resource allocation.

4. What is a major disadvantage of using LIFO in project planning? a) It can lead to neglecting long-term tasks. b) It can be difficult to implement. c) It requires extensive data analysis. d) It can be too complex for small projects.

Answer

a) It can lead to neglecting long-term tasks.

5. Which of the following is an alternative to LIFO in project planning? a) FIFO b) FIFO c) CPM d) All of the above

Answer

d) All of the above

LIFO Exercise: Prioritizing Tasks

Scenario: You're managing a website redesign project with the following tasks:

  • Task A: Update website content - Deadline: 1 week
  • Task B: Design new website layout - Deadline: 2 weeks
  • Task C: Develop new website features - Deadline: 3 weeks
  • Task D: Test and implement the new website - Deadline: 4 weeks

Instruction:

  1. Prioritize these tasks using the LIFO approach.
  2. Explain your reasoning.

Exercice Correction

Using LIFO, the tasks would be prioritized as follows: 1. **Task A (Update website content):** This task has the shortest deadline of 1 week, making it the most urgent. 2. **Task B (Design new website layout):** This task has a deadline of 2 weeks, making it the second most urgent. 3. **Task C (Develop new website features):** This task has a deadline of 3 weeks, making it the third most urgent. 4. **Task D (Test and implement the new website):** This task has the longest deadline of 4 weeks, making it the least urgent. **Reasoning:** LIFO prioritizes tasks based on their latest deadlines, ensuring that the most urgent tasks are tackled first. This approach helps prevent late deliverables and ensures that critical tasks are completed on time.


Books

  • Project Management: A Systems Approach to Planning, Scheduling, and Controlling (11th Edition) by Harold Kerzner: This comprehensive text covers various project management methodologies, including scheduling, and offers insights into prioritizing tasks based on urgency.
  • Effective Project Management: Traditional, Agile, and Hybrid Approaches (7th Edition) by Kathy Schwalbe: This book explores various project management approaches, including agile methodologies, which often employ task prioritization based on urgency and value.

Articles

  • Project Management 101: How to Prioritize Tasks Effectively by The Project Management Institute: This article provides guidance on prioritizing tasks within a project, highlighting different techniques like prioritization matrices and urgency-based approaches.
  • LIFO, FIFO, and Project Management: A Practical Guide to Choosing the Right Approach (This article is fictional, but you can search for similar articles discussing project task prioritization methods): You can use the provided article title as a search query to find articles that discuss various task prioritization methods within project management.

Online Resources

  • The Project Management Institute (PMI): PMI's website offers a wealth of resources on project management, including articles, webinars, and courses on project planning and scheduling.
  • Smartsheet: Smartsheet provides articles and tutorials on project management tools and methodologies, including task prioritization techniques.
  • Asana: Asana offers articles and guides on project management, including best practices for task prioritization, which often involve urgency as a key factor.
  • Trello: Trello provides a project management platform with a focus on task boards and prioritization. Explore their blog and resources for insights into prioritizing tasks.

Search Tips

  • "LIFO project planning": This search will help you find articles and resources discussing LIFO in project planning.
  • "Task prioritization project management": This broader search will lead you to resources on task prioritization techniques used in project management, including those based on deadlines or urgency.
  • "Project management tools task prioritization": This search focuses on finding information about how various project management tools support task prioritization.

Techniques

Similar Terms
Drilling & Well Completion
Quality Control & Inspection
Safety Training & Awareness
  • Ball-Out Balling Out: A Critical Techn…
Asset Integrity Management
Incident Investigation & Reporting
  • Blowout Blowout: When Wells Run Amok …
Most Viewed

Comments

No Comments
POST COMMENT
captcha
Back