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Jane Doe & Jane Doe
Sept, 2012
BPP 3213 PROJECT ESTIMATION AND SCHEDULING
Lecture 1 Fundamentals of Project Planning
Nurhaizan Mohd Zainudin (ext 2275)
Faculty of TechnologyUniversity Malaysia Pahang
Introduction
•Lecture Outline• Introduction to Course• Focus of the Course• Course outline• Course Outcome• Course Assessment• References
• Major Assignment
• Purpose of this lecture / Lesson outcome
Introduction (cont’d)
•Lecture Content• FUNDAMENTALS OF PROJECT PLANNING• Project Life Cycle• Project Master Plan• Project Organization Structure and
Responsibilities• Scope and Work• Planning and Scheduling Charts• Project Management System• Challenges in Scheduling and Estimating• Conclusion
•Tutorial
Time Management...
Focus of the Course• Projects are too complex for a simple ‘back of the envelope’ planning
• Thus, the need for consistent and disciplined thinking in a systematic manner
• Scheduling and estimating tools and techniques help in allocating and managing cost and resources effectively
Course Outline
1. Fundamentals of Project Planning2. Network Scheduling and Precedence
Diagram Method3. PERT, CPM, GERT, and GANTT Chart4. Scheduling With Resource Constraints5. Fundamentals Cost Estimating and
Budgeting6. Tracking the Project7. Project Control
Course Outcome
•Understand the importance of scheduling and estimation in ensuring the successful of project
•Apply Precedence Diagram Method (PDM) in determining relationship between tasks
•Use appropriate techniques for resource estimation for a project planning
Assessment
Group Assignment (Project)30%Individual Assignment 10%Tutorial 10%Test ( 2 tests) 10%
Final Exam40%
Total100%
References
Main References:
1. Kerzner, Harold. 2007. Project Management: A System Approach to Planning, Scheduling and Controlling. John Wiley and Sons. 8th Edition.
2. Nicholas, John M. 2004. Project Management for Business and Engineering: Principles and Practice. Elsevier Butterworth-Heinemann. 2nd Edition.
Purpose of this lecture
To better understand:
• Project life cycle, master plan, organization structure, and scope and work
• Planning and scheduling charts
• Project management system
• Challenges
Scheduling...
Project Management
Project Integration Management
Project Scope Management
Project Time Management
Project Cost Management
Project Quality Management
Project Human Resource Management
Project Communication Management
Project Risk Management
Project Procurement Management
Introduction• Project Planning:-A discipline stating how to complete a project-Certain timeframe, defined stages, designated resources • Estimating (PMBOK 2004):
- Developing an approximation of resources costs needed to complete each schedule.-Considering the possible cause of variation of cost estimates- Identifying and considering various costing alternatives
Introduction (cont’d)•Scheduling: -A process converting a project plan into time-based graphic presentation- Given information on available resources and time constraints- 3 basic steps
Project Life Cycle• Projects are subdivided into several manageable phases
• Phases that connect the beginning of a project to its end- Concept and initiation phase- Design and development phase- Implementation / construction phase- Commissioning and hand over phase
• Generally defines:- What are the technical work to do in each phase?-When the deliverables are to be generated?- Who involved in each phase? - How to control and approve in each phase?
Characteristic of Project Life CyclePMBOK 2008
Starting the
project
Organising and
preparing
Carrying out the work Closing the projec
t
Project Charter
Project Management Plan
Accepted Deliverable
s
Cost
and
Sta
ffing
Le
vel
Time
Project Management Output
Characteristic of Project Life Cycle (cont’d)PMBOK 2008
• Phases are sequential
• Cost and staffing levels:- Low at start- Peak during intermediate- Drop rapidly when project approaching completion
• Level of uncertainty:- Highest at start, risk of failing is greatest- Gets better as the project continues
• Stakeholder ability to influence:-Highest at start- Gets lower as the project continues
Characteristic of Project Life Cycle (cont’d)PMBOK 2008
Planning for a Project...
Project Master Plan• A comprehensive document that sets out overall strategy for a project
•Incorporates several related sub plans- Risk management plan- Staffing management plan- Scope management plan- etc
• A planning tool that provides a detailed guidance
• The big picture for a project
• A good project plan will provide:• A roadmap everyone in the team can
follow with clear milestones• A realistic project timescale• Details of resource requirements• Validation of estimated cost• Identification of task slippage• Early warning of problems
Project Master Plan (cont’d)
Organization Structure• Projects are performed by people, managed by people
• Organization structure reflects the project’s needs, the team’s needs, and the individual needs
• Identifies relationships between various parties, lines of authority & lines of communication
Organization Structure (cont’d)• It considers:i) Project team-Relationship of PM & other team members
ii) Project interfaces-Communication of PM with internal & external s/holders
iii) Matrix organization structure-Temporary project lines of responsibility
iv) Responsibility Matrix - Development of schedule bar chart, links work to the responsible person
Project Organization StructureFunctional Organization Structure• Traditional organization structure• Based on subdivision• ‘Wedding Cake’ corporate structure
• Advantages:- Provide a home for technical expertise and good support-High degree of flexibility- Lines of communication is short and well established - Clearly defined responsibility and authority within departments
Project Organization Structure (cont’d)
Functional Organization Structure (cont’d)
• Disadvantages:- No single point of responsibility- No formal lines of communication - Inadequately defined responsibilities for external coordination- Departmental work takes priority to project work- Not effective for multi-project environment
General Manage
r
Civil Manag
er
Structural
Manager
Mechanical
Manager
Procurement Manager
SupervisorTradesman
SupervisorTradesman
SupervisorTradesman Administra
tor
Functional Organization Structure (cont’d)
Project Organization Structure (cont’d)
Project Organization Structure (cont’d)
Matrix Organization Structure • Mathematical matrix topology – vertical and horizontal lines of responsibility and authority• Vertical lines: functional departments• Horizontal lines : project
• Variants:- co-ordination matrix (weak, nearest to traditional functional hierarchy)- overlay matrix (balanced, commonest)- secondment matrix (strong, nearest to pure project structure)
Project Organization Structure (cont’d)
Matrix Organization Structure (cont’d) •Advantages:- Clear single point responsibility – Project Manager- Higher degree of resource utilization - Shared capital cost between projects and functional departments- Good flow of information
• Disadvantages- Complex and difficult to understand- More communication links required- Dual responsibility and authority leads to confusion- Cost of running the matrix organization is higher
General Manager
Civil Manage
r
Structural Manager
Mechanical
Manager
Procurement Manager
Project Manager (1)
Project Manager (2)
SupervisorTradesman
Two Bosses
Project Lines of Responsibility
Func
tiona
l Lin
es o
f Re
spon
sibili
ty
Project Organization Structure (cont’d)Matrix Organization Structure (cont’d)
Project Organization Structure (cont’d)
Pure project Organization Structure • All departments are dedicated to the project• Self-contained unit• Project manager has high level of authority to manage and control
•Advantages:- Project manager has full line authority- Increased commitment and loyalty- Promotes effective communication- Lines of communication is shorter
Project Organization Structure (cont’d)
Pure project Organization Structure (cont’d) • Disadvantages: - Duplication effort if numbers of project running concurrently- Divorces from functional departments – sever cross flow of information and ideas- Cannot offer continuity of employment – lose valuable experience and information
Project Manage
r
Mechanical
Manager
Structural
Manager
Mechanical
Foreman
Mechanical
Supervisor
Structural
Foreman
Structural
Supervisor
Project Organization Structure (cont’d)
Pure project Organization Structure (cont’d)
Project Management System• Types of software covering scheduling, cost control, resource allocation, quality management and documentation etc
• Tasks or activities include:- Scheduling- calculating critical path- Providing information
• Examples:-Microsoft Project- Prince2- Primavera
Planning and Scheduling Charts
Planning and Scheduling Charts (cont’d)
• Scheduling techniques to cope with complexities, masses of data and tight deadlines
• Most common:- Gantt Chart or bar chart- Milestone Charts- Line of balance- Program Evaluation and Review Technique (PERT)- Arrow Diagram Method (ADM) or Critical Path Method (CPM)- Precedence Diagram Method (PDM)- Graphical Evaluation and Review Technique (GERT)
Scope and Work DefinitionMilestone Schedule (PMBOK 3rd Ed)
Milestone is a significant point of event in the project.
Schedule Milestone means a significant event in the project schedule and have zero duration.
Thus, Milestone Schedule is a summary-level schedule that identifies the major schedule milestone.
Milestone schedule contains:- Project start date and end date- Other major milestone- Deliverables
Scope and Work Definition (cont’d)
Work Breakdown Structure (WBS)• An output/input• A deliverable-oriented hierarchical decomposition of work to be executed• To accomplish project objectives • Organizes and defines the total scope of work for the project work• Decomposed into work packages
Scope and Work Definition (cont’d)
Work Breakdown Structure (WBS) (cont’d)• WBS dictionary is a document describing each component in the WBS – description includes brief definition of statement of work, defined deliverables, list of associted activities and list of milestones.
Challenges in Scheduling and Estimating
• Classic challenge is to complete a project within time and within budget• or rather, to schedule and to estimate!
•The fact : - it is inexact process that it tries to predict the future. - it can never be accurate- most possible – be as close as possible
Summary•Failing to plan is planning to fail
•Understanding the fundamental aspects is essential to ensure appropriate application of planning techniques.
"The plans were useless, but the planning was indispensible."
Questions??? He who ask is a fool for five minutes,
but he who does not ask is a fool forever.
TutorialIn a group of 3;
i) Discuss the importance of scheduling in ensuring project success
ii) Discuss the challenges faced in project time management with reference to an existing case