OBJECTIVES Describe the planning phase

Explain value of proper planning

Look at goals, objectives, deliverables

Create project scope statement

Create communication plan

Create WBS & Gantt Chart (MSProject)

Create a network diagram

Conduct critical path analysis

Planning for required resources

Over allocated resources

Budgeting techniques

Responsibility assignment matrix

INTRODUCTION

This section dedicated to planning of the

project:-

All about detail

More effort more likelihood of success

ADDING VALUE VS COST OF CHANGE

Burke (2007):-

PROJECT MANAGERS HAVE GREATEST CHANCE OF ADDING

VALUE AT THE BEGINNING OF A PROJECT

- Cost of change minimised at planning phase because it is a

“paper” exercise

- Changes later in project involve additional work, wasted

time and resources

CLASS EXERCISE

Read case study page 83 of manual

GOALS VS OBJECTIVES

OBJECTIVES

Broadly defined objective intentions

GOALS

More detailed, focused aim

USE “SMART” TO DEFINE GOALS

Specific – goals should be clearly defined, when, where

Measurable – quantifiable

Achievable – All parties must agree it is achievable

Realistic – must be physically possible to attain

Time Bound – must be driven by deadlines

“SMART” EXAMPLE

Build a road to Pretoria

Page 85

INDIVIDUAL EXERCISE

Think of a goal you wish to achieve personally

Write it down

Take the goal and write it the smart way

10 minutes

Do individually please!

DELIVERABLES

• Specific, measurable outcomes

• Must be completed for goals to be

achieved

• SMART criterion can be used to write

deliverable

• Tangible results are outcome of

deliverables

• When all deliverables complete project is

complete

EXAMPLES OF DELIVERABLES

• Obtain result of feasibility study by

01/08/2011

• Create charter by 02/12/2011

• Finalise construction drawings by

01/01/2012

ASSUMPTIONS

“……..the act or an instance of accepting without

proof. Arrogance”

• Negative connotations

• Avoidance of responsibilities

PROJECT SCOPE

P87 of manual

• Detailed document

• Contains list of all goals and deliverables

• Used to generate resource and cost

estimates

• Essential tool for guiding and controlling

project

• List of exclusions is KEY

COMMUNICATION PLAN

• Usually constructed in table form

• Type of communication and person

responsible listed

• Type of communication includes: status

reports, progress reports, forecasts etc.

• Recipients , method and frequency of

delivery listed

See p88 in manual

WORK BREAKDOWN STRUCTURE

“ …. a tool used to graphically

display the deliverables of the

project in a hierarchical fashion. It

organises the work of the project in

logical groupings and displays the

information in a tree form or an

outline form”

GANTT CHARTS - BASIC

GANTT CHART – MULTIPLE MILESTONE

GANT CHART - HOURLY

GANTT - SUMMARY

GANTT – EARNED VALUE

NETWORK DIAGRAMS AND CPA

Network diagrams illustrate graphically the

relationships between tasks

Number of different methods:-

•Precedence Diagramming Method

•Activity on Arrow Method

•Activity on Node Method

NETWORK DIAGRAM METHOD

• Identify all tasks in a project

• Sequence them

• Present tasks, predecessors and durations in a

table

• Draw a network

TASKS, PREDECESSORS AND DURATIONS

TASK PREDECESSOR DURATION

A - 2

B A 3

C A 2

D B 1

E C 5

F C 4

G E,F 7

H D,G 2

I H 4

Identify tasks with

no predecessor

NO PREDECESSOR THEN MUST BE FIRST TASK

Identify bursts –

tasks sharing a

common

predecessor

Identify merges –

tasks with more

than one

predecessor

BURSTS Activity on Node

Precedence Diagramming Method

MERGE Activity on Node

Precedence Diagramming Method

INDIVIDUAL EXERCISE

1. Identify the Bursts and Merges in the example below

2. Draw a network for the situation using the Precedence Diagramming Method

TASK PREDECESSOR

A -

B A

C A

D B,C

E D

F E

NETWORK DIAGRAM

A

B

C

D E F

MERGE

BURST

NETWORK EXAMPLES

1.Complete the network examples

worksheet

2.Work individually!

TASK BOX

Precedence Diagramming Method uses task boxes to represent tasks and connectors

ES

Early Start

FLOAT

LS

Late Start

TASK

EF

Early Finish

LF

Late Finish

DURATION

YOU NEED TO MEMORISE THIS – IT WILL NOT BE GIVEN YOU IN EXAM

TASKS, PREDECESSORS AND DURATIONS

TASK PREDECESSOR DURATION

A - 2

B A 3

C A 2

D B 1

E C 5

F C 4

G E,F 7

H D,G 2

I H 4

Draw a network diagram for this example

Double-check the tasks against their predecessors

to make sure it is correct

TASKS

Put task name into diagram

ES

Early Start

FLOAT

LS

Late Start

TASK

EF

Early Finish

LF

Late Finish

DURATION

DURATION

An activities duration will run from the start to the finish of the activity.. Time units can be expressed in hours, days, weeks, months, shifts – whatever is appropriate for the project.

For simplicity we will always use days as our time unit.

PUT DURATIONS ONTO YOUR DIAGRAM

DURATIONS

Add durations to your network as per the task box convention

ES

Early Start

FLOAT

LS

Late Start

TASK

EF

Early Finish

LF

Late Finish

DURATION

CRITICAL PATH

Calculate the critical path by adding up the durations on each path

The longest time is the critical path

Mark the critical path in a different colour on your diagram

FLOAT

Float is a measure of flexibility or surplus time in an

activity’s schedule. It indicates how many days an activity

can be delayed before if affects the project completion

date

All activities on the critical path have a float of 0

Put this onto your diagram

FLOAT

Add floats to your network as per the task box convention

ES

Early Start

FLOAT

LS

Late Start

TASK

EF

Early Finish

LF

Late Finish

DURATION

FLOAT – NON CRITICAL PATH

SECOND LONGEST PATH

Total critical path duration – 2nd longest path duration = 2nd longest path float

PUT THIS ONTO YOUR DIAGRAM

THIRD LONGEST PATH

Total critical path duration – 3rdlongest path duration = 3rd longest path float

PUT THIS ONTO YOUR DIAGRAM

When a task is part of more than 1 path the smallest number is always selected for the float

EARLY START

Early start is the earliest date by which an

activity can start assuming all of the preceding

activities are completed as planned

ES = ES preceding task + duration preceding task

PUT THIS ONTO YOUR DIAGRAM

EARLY START

Add EARLY STARTS to your network as per the task box convention

ES

Early Start

FLOAT

LS

Late Start

TASK

EF

Early Finish

LF

Late Finish

DURATION

EARLY FINISH

Early finish is the earliest date by which an

activity can be completed assuming all of the

preceding activities are completed as planned

EF = ES + Duration -1

PUT THIS ONTO YOUR DIAGRAM

EARLY FINISH

Add EARLY STARTS to your network as per the task box convention

ES

Early Start

FLOAT

LS

Late Start

TASK

EF

Early Finish

LF

Late Finish

DURATION

Make sure that the last tasks EF = critical path duration. If not you have made an

error

LATE START

Late start is the latest date an activity can finish

to meet the planned completion date

LS = ES + FLOAT

PUT THIS ON YOUR DIAGRAM

LATE START

Add LATE STARTS to your network as per the task box convention

ES

Early Start

FLOAT TASK

EF

Early Finish

LF

Late Finish

DURATION

LS

Late Start

LATE FINISH

Late finish is the latest date an activity can finish to

meet the planned completion date

LF = EF + FLOAT

PUT THIS ON YOUR DIAGRAM

LATE FINISH

Add LATE FINISHES to your network as per the task box convention

ES

Early Start

FLOAT TASK

EF

Early Finish

LF

Late Finish

DURATION

LS

Late Start

Check the late finishes at merges. The merging tasks should have same

LF otherwise there is an error

SUMMARY CPA

EF = ES + D – 1

LS = ES + F

ES = ES PRECEDING TASK + D PRECEDING TASK

LF = EF + F

F = LS –ES OR LF-EF

ES 1ST TASK =1

F CRITICAL PATH = 0

F ON MORE THAN 1 PATH SMALLEST SELECTED

ES FROM MERGED TASKS SELECT HIGHEST ONE

ES EF

F D

LS LF

T

CPA EXERCISES

PREPARE CPA FOR EACH OF THE EXAMPLES ON THE

NETWORK EXAMPLE SHEET

WORK INDIVIDUALLY

IMPLICATION TO THE CRITICAL PATH

• When float is used up critical path may change

• Tasks on critical path have zero float, therefore a

task with no float left will fall on critical path

• This tells us that there may be more than one

critical path AND the critical path is subject to

change

• Float in a task box represents float for entire path. If

a task is delayed, all the succeeding tasks will also

be delayed and their float days will be reduced

PLANNING FOR REQUIRED RESOURCES

MsProject

Page 107 manual

BUDGETING TECHNIQUES

• Carefully controlled budget good

indication of projects financial state

• Senior management VERY unhappy with

poor budget control

RESPONSIBILITY ASSIGNMENT MATRIX

- ENSURES EVERYONE KNOWS WHO IS

RESPONSIBLE

- ENABLES PROJECT MANAGER TO

KEEP TRACK OF DUTIES AND

LIABILITIES EVERYONE KNOWS WHO IS

RESPONSIBLE

- Page 114 of manual

RISK MANAGEMENT

DEFINITION:risk:-

A CHANCE OR POSSIBILITY OF

DANGER, LOSS, INJURY ETC

SOURCES OF RISK

Can come from internal or external sources

External – risks originate from macro –

environment, includes political and legal issues

Internal - risks come from the project or from

within the organisation, workforce problems,

inadequate resources and outdated

technologies

RISK ELEMENTS

Risks are analysed according to two variables:

PROBABILITY – measured by a %

100% - sure thing

0% - impossible to happen

70% - likely to happen

30% - unlikely to happen

After assessing probability need to asses the impact it will have if it happens

IMPACT

CONSTRUCT A RISK MATRIX

See page 116 in manual

RESPONSE TO RISK

See table 3AJ page 117

Avoidance

Mitigation

Transference

Acceptance

RISK MANAGEMENT

Show risk management video

ACCIDENTS AT WORK

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HEALTH & SAFETY AT WORK

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