Project Planning & Control

1. Project Planning & Control

2. Chapter Coverage What is a project? The project planning and control process Network planning – Critical Path Method (CPM)

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.

4. Stage 1 Understanding the project environment Stage 2 Project definition Changes Stage 3 Project planning Corrective action Stage 5 Stage 4 Project control Technical execution Stages in project management

5. Stage 1: Understanding project environment The project environment comprises the factors which may affect the project during its life. See slide 16.6

6. Geo-social environment • Geography • National culture • Econo-political environment • Economy • Government The Project • Internal environment • Company strategy • Resources • Other projects • Business environment • Customers • Competitors • Suppliers/sub-contractors Examples of factors that may affect the project environment

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.

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.

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.

10. The three project performance objectives Quality New aircraft project Music festival Fixed grant research project Cost Time

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.

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: Define phases (time based sections) of the project. Set milestones at which specific reviews of time, cost and quality are made.

13. Stage 3: Project planning Fulfills four distinct purpose, it determines: The cost and duration of the project. The level of resources needed. Helps to allocate work and monitor progress. Helps to assess the impact of changes to the project. There are five steps…

14. Adjust as necessary Estimate the times and resources for activities Fix the schedule for time and resources Identify the relationships and dependencies between the activities Identify time and resource schedule constraints Identify the activities in the project Stages in the project planning process 1 2 3 4 5

15. 1. Identify activities: Work breakdown structure 1. Serve breakfast in bed 11. Butter the toast 2. Pour juice in glass 5. Place boiled egg in egg cup 16. Arrange tray 17. Fetch tray, plates and cutlery 12. Toast bread 15. Fetch butter 3. Fetch juice 4. Fetch glass 6. Boil egg 10. Fetch egg cup 13. Slice bread 8. Bring water to boil 7. Fetch egg 14. Fetch bread 9. Fill pan with water

16. 2. Estimate times and resources

17. Probability 3 5 6 Activity duration 13 Optimistic time Expected time Most likely time Pessimistic time Typical subjective probability distribution for an activity time estimate Accuracy of estimates comes with experience!

18. All activities will have some relationship with one another. Dependent or series relationship or Slice bread Toast bread Butter toast Fill pan with water Bring water to boil Boil egg Parallel relationship 1 2 2 3. Identify relationship and dependencies 1 &

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

20. Time (mins) 0 1 2 3 4 5 6 7 8 9 Orange Activities requiring operator time Bread Toast Butter Bed room Boil water Boil egg Water Tray 4 3 Staff required 2 1 0 0 1 2 3 4 5 6 7 8 9 Time (mins) “Making breakfast” - Do activities at earliest time

21. Time (mins) 0 1 2 3 4 5 6 7 8 9 Orange Bread Toast Butter Bed room Boil water Boil egg Water Tray 4 3 Staff required 2 1 0 0 1 2 3 4 5 6 7 8 9 Time (mins) “Making breakfast” – Minimizing staff requirements

22. Time (mins) 0 1 2 3 4 5 6 7 8 9 Orange Bread Toast Butter Bed room Boil water Boil egg Water Tray 5. Fix the schedule “Making breakfast” – Maximizing toast quality 4 3 Staff required 2 1 0 0 1 2 3 4 5 6 7 8 9 Time (mins)

23. Stage 5: Project control Project monitoring: current expenditure to date, amount of overtime authorized, inspection failure, progress of activities etc. Assessing project performance: Compare planned and actual expenditure Intervene to change the project: when the project is out of control in the sense of cost, quality levels or time, intervention is required.

24. Network planning Use of Gantt chart is the simplest technique that supports project planning and control. More elaborate and detailed techniques are collectively called network analysis. We will consider a network analysis method called Critical Path Method (CPM)

25. Critical Path Method Represents the project activities diagrammatically. Project activities are represented byarrows (See 16.26). 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: 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). No activity can start until its tail event is reached - (16.27 –activity f cannot start until event 5 is reached). 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)

26. Activities and network for a simple project Activity duration (in days) Immediate predecessors Activity a Remove furniture None 1 b Prepare bedroom a 2 c Paint bedroom b 3 d Prepare kitchen a 1 e Paint kitchen d 2 f Replace furniture c, e 1 Prepare bedroom Paint bedroom Remove furniture Replace furniture Prepare kitchen Paint kitchen

27. Activity reference a 1 Activity duration 1 Event number 3 An Event c b 3 2 2 6 1 5 a f 1 1 d e Earliest Event Time (EET) Latest Event Time (LET) 1 2 4 Network diagram for simple decorating project 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

28. 2 x x 2 3 1 1 y y 3 5 1 4 6 2 Activity on arrow – Using “dummy” activities

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 calledpaths. 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.

30. 1 0 0 Network analysis for simple decorating project With earliest and latest event times 3 3 3 c b 3 2 2 6 5 a f 1 1 6 6 7 7 1 1 d e 1 2 4 2 4 Chapter 16, Page 575

31. 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. Worked Example

32. Road Construction Activities

33. 0 0 Network Diagram For Motorway Project G 18 20 A H 3 D 5 8 7 E L B 10 10 27 27 35 35 10 10 8 F I 9 4 C K M 1 5 19 19 4 J 3 22 22

34. The End