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Project Management
Project Planning
PLANNING IN PROJECT ENVIRONMENT
Establishing a predetermined course of action within a forecasted environment
WHY ? To eliminate or reduce uncertainty To improve efficiency of the operation To obtain better understanding of the
objective(s) To provide a basis for monitoring and controlling
work
PROJECT PLANNING Phase 1 : Project definition
Phase 2 : WBS and Detailing of task
Phase 3 : Time duration analysis
Phase 4 : Resource analysis
Phase 5 : Scheduling and Monitoring
THE PLANNING CYCLE
WORK BREAKDOWN STRUCTURE
WORK PLANNING AUTHORIZATION
MASTER PROJECT SCHEDULE
DETAILED SCHEDULE
PROGRAM PLAN
MCCS BUDGET
Project Planning
1. Provide a complete definition of the work requirement - Scope of work ( SOW )
- Specifications - Schedules ( Summary )
2. Establish a logic network with check points
3. Develop the work breakdown structure
4. Price out the WBS
5. Review WBS costs with each functional manager
6. Decide upon the basic course of action
Project Planning
7. Establish reasonable costs for each WBS element
8. Review the base case costs with upper level management
9. Negotiate with functional manager for qualified personnel
10. Develop Linear Responsibility Chart
11. Develop the final detailed and PERT / CPM Schedule
12. Establish pricing cost summary reports
13. Document the result into program plan
Linear Responsibility Chart
Important tool for the implementation of a project
It summarizes the relationship between project participants and their responsibility in each element of project
It depicts Authority, Responsibility and Communication channel
Linear Responsibility Chart ( LRC )
Columns of LRC - Managers of organization element
Rows of LRC - Project elements performed by the organization
Each cell - An activity and the organization element to corresponds to a work package which it is assigned
The Responsibility Matrix
Structure of a Responsibility matrix
Persons or positions responsible
Basic design
Proj
ect e
ngin
eer
A
Proj
ect e
lem
ent o
r wor
k pa
ckag
e
Responsibility codeP Primary responsibilityS Secondary responsibilityN Must be notifiedA Must give approval
Linear Responsibility Chart
Work breakdown structure (WBS)
Work Breakdown Structure (WBS)
WBS is a schematic presentation of the
disaggregation integration process by which the
project manager plans to execute the project
(Heart of Project Management)-Work content of the project is divided into Tasks to be assigned and performed by one of the participating organizations
The Definition of task should include :• Objectives• Deliverables• Schedule• Budget• Performance Measure• Responsibility
Example : A University initiates a project to develop a new post graduate programme in management How to define a “Task” - Development of a
specific course TASK at the lowest level of WBS Work
Package
Work Breakdown Structure (WBS)
Work Breakdown Structure (WBS)
Development of WBS is a process of work definition
During the WBS development process, the questions constantly being asked are : What else is needed ? What’s next ? Planning and control based on
deliverables A typical WBS might consist of five levels.
Elements of a Work Breakdown Structure
01Project
01-01Category
01-02Category
01-06Category
01-01-100Task
01-06-100Task
01-06-200Task
01-06-700Task
01-06-101Subtask
Work package
01-06-701Subtask
Work package
Work package
etc
etc
etc etcetc
01-01-102
01-06-7011 01-06-7012
Example of WBS for Building a House
House
.... What else?
RoofInterior systems
Frame Walls and ceilings
FoundationExcavation
Level1
2
Hardware, Product-oriented WBS
House
....
ElectricalPlumbingCarpentry MasonryExcavation
Level1
2
Function-oriented WBS
House
RoofInterior systems
Frame Walls and ceilings
FoundationExcavation
Level1
2
3
4
Elaboration of Hardware, Product-oriented WBS
Landscape Paint
What next?
? ? ? ?
Drywall Plaster Shingles Flashing Gutters
CabinetsHVACAppliances TrimElectricity Plumbing
....
? ?? ? ?
Chimney Furnace A/CDucts
Figure : Typical WBS based upon primary hardware: Fighter Aircraft (Courtesy, Metier Management Systems)
1F-999 Aircraft
11Air frame
12 Engines
111Wings
112Fuse lage
113Tail
114Landing
Gear
121 Port
122 Starboard
123 Fuel Tanks
13 Avionics
131 Navigation
132 Displays
14 Communications
141 Receiving
142 Transmitting
15 Weapons
151 Misslies
152 50 Caliber
Guns
154 Laser
Work Breakdown Structure
Work breakdowns based on physical compositions of a project
Work breakdowns based on non-physical characteristics
Organization breakdown structure (OBS)
The OBS of a project is concerned with its internal organization and not the relationships of the organization elements with their parent organizations, matrix or otherwise.
It is the internal organization chart of the project, constructed similar to WBS.
LOGON Contract
Basic design H
Hardware part B
FabricationSite
operationsProcurements
Hardware part A
Software specifications
Part A Part B
H O K U V P Z M, R
I J L W X Y N, S Q, T
Hardware
Software
Drawing
Accounts
Work
packages (H through Z)
DepartmentsDivision
Design division
Assembly
Test
Fabrication division
Procurement
Installation
Test
Service
Customer service division
STING Company
Integration of WBS and Project Organization
Project activity, task, work package, cost account
PROJECT BUDGET
Cost Accounts are created where WBS and OBS meet
PROJECT BUDGET
Integration of WBS and OBS
The concept of float or slack
Float or slack is the amount of time by which an activity can be delayed without delaying the whole project. Helps to identify critical activities and demand priority for management attention when controlling progress or allocating scarce resources.
Total float is the amount by which an activity may be delayed without affecting the start times of any following activities, provided that its preceding activities have finished at their earliest possible times.
The concept of float Negative total float will result if the planner or
project manager attempts to impose a target date on the project (or any activity in the network) that is earlier than the earliest possible date determined by the forward pass.
Free float is the amount by which an activity may be delayed without affecting the start times of any following activities even when the activity’s preceding activities have been delayed to their latest possible times. It cannot be a negative quantity.
Hierarchical planning structures in project X
Illogical Loop
Extended Network Techniques to Come Close to Reality
Laddering Activities are broken into segments so the
following activity can begin sooner and not delay the work.
Lags The minimum amount of time a dependent
activity must be delayed to begin or end. Lengthy activities are broken down to reduce
the delay in the start of successor activities. Lags can be used to constrain finish-to-start,
start-to-start, finish-to-finish, start-to-finish, or combination relationships.
FIGURE: Activities Performed Serially
FIGURE: Activities Performed Concurrently
FIGURE: Laddering
Example of Laddering Using Finish-to-Start Relationship
Use of Lags
Finish-to-Start Relationship
Start-to-Start Relationship
Finish-to-start and Start-to-start Finish-to-start lags are frequently used to
order materials. For example, it may take one day to place an order, but 10 days to receive the goods.
Start-to-start lag, activity Q cannot begin until five time units after activity P begins. It depicts a situation in which you can perform a portion of one activity and begin a following activity before completing the first, e.g., a pipe-laying project.
Finish-to-finish and Start-to-finish Finish-to-finish: The finish of one activity
depends upon the finish of another activity, e.g., testing cannot be completed any earlier than four days after the prototype is complete (not finish-to-start as testing of subcomponents can begin early but ‘system testing’ goes on for four days after prototype is finished).
Start-to-finish : The finish of an activity depends upon the start of another activity, e.g., system documentation cannot end until three days after testing has started as all the relevant information to complete the system documentation is produced after the first three days of testing.
Use of Lags (Cont’d)
Use of Lags to Reduce Detail
Use of Lags (cont’d)
Finish-to-Finish Relationship
Start-to-Finish Relationship
CombinationRelationship
Controlling costs
Controls for indirect costs