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