5 Project Planning and Control

© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 16

16.1

Project Planning & Control


16.2

Chapter Coverage• What is a project?

• The project planning and control process

• Network planning – Critical Path Method (CPM)


16.3

Projects:A project is a set of activities with a define start point and a define end state, which pursues a defined goal and uses a define set of resources.


16.4

Understanding the project

environment

Project definition

Project planning

Technical execution

Project control

Stage 1

Stage 2

Stage 3

Stage 4 Stage 5

Changes

Corrective action

Stages in project management


16.5

Stage 1: Understanding project environment

The project environment comprises the factors which may affect the project during its life. See slide 16.6


16.6

Geo-social environment• Geography• National culture

Econo-political environment • Economy• Government

Business environment• Customers• Competitors• Suppliers/sub-contractors

Internal environment• Company strategy• Resources• Other projects

The Project

Examples of factors that may affect the project environment


16.7

Stage 2: Project definition

Three different elements define a project:• Its objective: the end state that project

management is trying to achieve

• Its scope: the exact range of the responsibilities taken on by the project management.

• Its strategy: how project management is going to meet its objective.


16.8

Project objectives

The hierarchy of objectives:

• At the top of the hierarchy is the overall objective or goal of the project, lower levels of the hierarchy are the objectives of each part of the project (big projects consists of many parts).

• Objectives of each part must be related to its overall objective.


16.9

Objectives must be clear:Good objectives are those which are clear, measurable and, preferably, quantifiable.One method of clarifying objectives is to break down project objectives into three categories:

– Purpose: to prevent production from failing to meet output as forecast.

– End result: a report which identifies the causes of lost production, and which recommends how the target output can be met.

– Success criteria: the report should be completed by 30 June. The recommendations should enable output to reach at east 70 tonnes per year. Cost of the recommendations should not exceed RM200,000.


16.10

Quality

TimeCost

New aircraft project

Fixed grant research project

Music festival

The three project performance objectives


16.11

Project scope- Identifies the work content and the outcomes.

- Boundary setting exercise – divides work content for each part of the project.

- Important for managing contractors – commercial and legal aspect of the scope of supply.

- Can change during the course of the project.


16.12

Project strategy- Defines in general how the organization is

going to achieve its project objectives and meet the related measure of performance.

- Two ways:1) Define phases (time based sections) of the

project.

2) Set milestones at which specific reviews of time, cost and quality are made.


16.13

Stage 3: Project planningFulfills four distinct purpose, it determines:1. The cost and duration of the project.2. The level of resources needed.3. Helps to allocate work and monitor progress.4. Helps to assess the impact of changes to the

project.

There are five steps…


16.14

Identify the

activities in the

project

Estimate the times

and resources

for activities

Identify the relationships

and dependencies between the

activities

Identify time and

resource schedule

constraints

Fix the schedule for time

and resources

Adjust as necessary

Stages in the project planning process

1 2 3 4 5


16.15

1. Serve breakfast in bed

3. Fetch juice

4. Fetch glass

6. Boil egg 10. Fetch

egg cup

12. Toast bread

15. Fetch butter

17. Fetch tray, plates and cutlery

16. Arrange tray

11. Butter the toast

5. Place boiled egg in

egg cup

2. Pour juice in glass

7. Fetch egg

8. Bring water to

boil 14. Fetch bread

1. Identify activities: Work breakdown structure

13. Slice bread

9. Fill pan with water


16.16 2. Estimate times and resources

Table 16.1

Time and resources estimates for a breakfast-in-bed” project

No Activity Effort (person) Duration (secs)

1 Serve breakfast in bed 1 120

2 Pour juice in glass 1 5

3 Fetch juice 1 10

4 Fetch glass 1 10

5 Place boiled egg in egg cup 1 3

6 Boil egg 0 240

7 Fetch egg 1 10

8 Bring water to boil 0 180

9 Fill pan with water 1 8

10 Fetch egg cup 1 10

11 Butter the toast 1 10

12 Toast bread 0 30

13 Slice bread 1 30

14 Fetch bread 1 10

15 Fetch butter 1 10


16.17 Typical subjective probability distribution for an activity time estimate

Activity duration3 5 136Optimistic time

Most likely timeExpected time

Pessimistic time

Pro

bab

ility

Accuracy of estimates comes with experience!


16.18

• All activities will have some relationship with one another.

• Dependent or series relationship orSlice bread Toast bread Butter

toast

Fill pan with water Bring water to boil Boil egg

• Parallel relationship

3. Identify relationship and dependencies

1

2

1 2&


16.19

• Resource constrained – only the available resource level are used in resource scheduling and are never exceeded hence, project completion might slip.

• Time constrained – priority is to complete the project within a given time.

4. Identify schedule constraints


16.20 “Making breakfast” - Do activities at earliest time

0 1 2 3 4 6 7 8 95

Orange

Bread

Water

Tray

Toast

Boil water Boil egg Bed room

Sta

ff r

eq

uir

ed

0 1 2 3 4 6 7 8 950

1

2

3

4

Butter

Time (mins)

Time (mins)

Activities requiring operator time


16.21 “Making breakfast” – Minimizing staff requirements

0 1 2 3 4 6 7 8 95

Orange

Bread

Water

Tray

Toast


Sta

ff r

eq

uir

ed

0 1 2 3 4 6 7 8 950

1

2

3

4

Butter

Time (mins)

Time (mins)


16.22

“Making breakfast” – Maximizing toast quality

Sta

ff r

eq

uir

ed

0 1 2 3 4 6 7 8 950

1

2

3

4

0 1 2 3 4 6 7 8 95

Orange

Water

Tray


Bread Toast Butter

Time (mins)

Time (mins)

5. Fix the schedule


16.23

Stage 5: Project control1. Project monitoring: current expenditure to date, amount of

overtime authorized, inspection failure, progress of activities etc.

2. Assessing project performance: Compare planned and actual expenditure

3. Intervene to change the project: when the project is out of control in the sense of cost, quality levels or time, intervention is required.


16.24

Network planning1. Use of Gantt chart is the simplest technique that

supports project planning and control.

2. More elaborate and detailed techniques are collectively called network analysis.

3. We will consider a network analysis method called Critical Path Method (CPM)


16.25

Critical Path Method1. Represents the project activities diagrammatically.2. Project activities are represented by arrows (See 16.26).3. At the tail (start) and head (finish) of each activity is a circle

which represents and event (See 16.27).

Rules for drawing a network diagram:1. An event cannot be reached until all activities leading to it

are complete - (16.27 – event 5 is not reached until c and e are completed).

2. No activity can start until its tail event is reached - (16.27 –activity f cannot start until event 5 is reached).

3. No two activities can have the same heat and tail events (16.28 – activities x and y cannot be drawn as first shown, they must be drawn using a dummy activity (no duration and shown as a dotted line)


16.26

Prepare bedroom Paint bedroom

Prepare kitchen Paint kitc

hen

Remove furniture Replace furniture

a Remove furniture None 1b Prepare bedroom a 2c Paint bedroom b 3d Prepare kitchen a 1e Paint kitchen d 2f Replace furniture c, e 1

ActivityImmediate

predecessorsActivity duration

(in days)

Activities and network for a simple project


16.27 Network diagram for simple decorating project

a

1

b

2

d

1

c

3

e

2

f

1

1 2 5 6

3

4

a

1

1

Activity reference

Activity duration

Event number

An Event

Earliest Event Time (EET)

Latest Event Time (LET)

EET – the very earliest the event could possibly occur if all preceding activities are completed as early as possible.

LET – the latest time that the event could possibly take place without delaying the whole project


16.28

1 2 1 3

1 3 5

2 4 6

2

x

y

x

y

Activity on arrow – Using “dummy” activities


16.29

Critical Path– Network diagrams have more that one sequence of

activities which will lead from the start to the end of the project – these sequence are called paths.

– Each path has a total duration which is the sum of all its activities.

– The path which has the longest sequence of activities is called the critical path.

– It is called the critical path because any delay in and of the activities on this path will delay the whole project.


16.30

Network analysis for simple decorating project

a

1

b

2

d

1

c

3

e

2

f

1

2 5 6

3

4

1

00 11 66 77

42

33

With earliest and latest event times

Chapter 16, Page 575


16.31 Worked Example

• The chief surveyor of a firm that moves earth in preparation for the construction of roads has identified the activities and their durations for each stage of an operation to prepare a difficult stretch of motorway (see table below). The surveyor needs to know how long the project will take and which are the critical activities.


16.32 Road Construction Activities

Activity Duration Preceding activities

A 5 -

B 10 -

C 1 -

D 8 B

E 10 B

F 9 B

G 3 A, D

H 7 A, D

I 4 F

J 3 F

K 5 C, J

L 8 H, E, I, K

M 4 C, J


16.33

Network Diagram For Motorway Project

00

2018

1010

1919

2222

2727 3535

A

5

B10

C

1

D8

E

10F

9

G

3H7

I4

J3

K M5

4

L

8


16.34

The End

5 Project Planning and Control

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