project initiation *project selection (based upon commercial or non-commercial considerations)
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Project Initiation *Project Selection (based upon commercial or non-commercial considerations) *Project Charter (authorization) *Preliminary Scope Statement. What is Project Planning ?. It is complete road-map to go from point A to B. - PowerPoint PPT PresentationTRANSCRIPT
Project Initiation
*Project Selection (based upon commercial
or non-commercial considerations)
*Project Charter (authorization)
*Preliminary Scope Statement
What is Project Planning ?
• It is complete road-map to go from point A to B.
• Project planning is a rational determination of how
to initiate, sustain, and terminate a project
• Project planning starts with the development of a
vision - the ability to see something that is invisible
to others
Why Plan a Project ?
• To eliminate or reduce uncertainty
• To improve efficiency of the operation
• To obtain a better understanding of the objectives
• To provide basis for monitoring and controlling work
Project Planning Considerations
• Project planning is much wider activity with following key
considerations
– Cost estimating and budgeting
– Technology strategies scheduling
– Specification of deliverables
– Resource usage estimating
– Delineation of organizational structure
– Information and control system sign
– Risk Identification, and so on.
Project Implementation
• Procure Materials, Vehs, Equipt etc.
• Establish Field Offices (Build and test
Facilities)
• Teams go out to work (Data Collection, survey)
• Develop support requirements
• Produce system
• Verify performance
• Modify as required, etc.
Monitoring, Control and Evaluation
• Discrepancies are called variances
• The acceptable levels of variance should
be determined at the outset of the project
• EVA
Difference between;
• Monitoring
• Control
• Evaluation
Termination
• Exit Strategy (Donors are Extremely Interested)
• Train functional personnel
• Transfer materials
• Transfer responsibility
• Release resources
• Reassign project team members
• Sustainability Aspects
• Warranty/ Guarantee
PROJECT PLANNING TECHNIQUES
• Work Breakdown Structure (WBS)
• Network Diagrams/CPM/PERT/Crashing/
Resource Levelling etc.
• Gantt Chart
• Earned Value Analysis
Work Breakdown Structure
The Work Breakdown Structure (WBS)
is a deliverable oriented grouping of the
project components (products/services)
which organizes and defines the total
project scope.
Work Breakdown Structure
• Management tool for subdividing the work into
logical components.
• Hierarchical structure that shows relationships of
elements to each other and to the overall contract.
• Organizes work into short manageable tasks.
• Basis for cost and progress planning and
reporting.
EXAMPLE of WORK BREAKDOWN STRUCTURE
Construction
Project
Area B
02.00
Civil
Construction A
01.01
Civil
Construction B
02.01
Electromechanical A
01.02
Electromechanical B
02.02
Earthwork
01.01.01
Foundations and
Structures
01.01.02
Architectural
Finishes
01.01.03
Electrical
and control
01.02.01
Piping
01.02.02
Equipment
01.02.03
Preparation
Tests
01.02.04
Earthwork
02.01.01
Foundations
and Structures
02.01.02
Architectural
Finishes
02.01.03
Electrical
and Control
02.02.01
Piping
02.02.02
Equipment
02.02.03
Preparation
Tests
02.02.04
Project
Level
Area A
01.00Area
Level
Group
Level
Work-
Package
Level
EXAMPLE OF WORK BREAKDOWN STRUCTURE
01.00 Area A
01.01 Civil Construction A
01.01.01 Earthwork A
01.01.02 Foundation and structures A
01.01.03 Architectural Finishes A
01.02 Electromechanical A
01.02.01 Electrical and Control A
01.02.02 Piping A
01.02.03 Equipment A
01.02.04 Preparation Tests A
BUILDING
A HOUSE
CONSTRUCTION
OF HOUSE
OUT
BUILDINGS
LAND
SCAPING
GARDEN
GARDENCIVILCARTENTER/
PLUMBER
ELECTRIC/
PAINTERS
FOUNDA-
TIONSWALLS ROOF
DOORS/
WINDOWBIC
PLUMBINGWIRING
PAINTINGFINISHING
GARAGE
DRIVE
WAY
GREEN
HOUSE
FENCE
GROUND
• 100% Rule. If not included in WBS, it is not in scope.
• Planned outcomes and deliverables, not planned
activities
• Not list of work or activities, but classification or
grouping of deliverables
• Mutually exclusive elements
• Progressive elaboration, or Rolling wave planning.
Estimating
• Resources
• Time
• Costs
Project Network DiagramsProject Network Diagrams
• Project network diagrams are the preferred
technique for showing activity sequencing.
• A project network diagram is a schematic
display of the logical relationships among, or
sequencing of, project activities.
Approaches for Developing NetworksApproaches for Developing Networks
• Activity on Arrow– Activities drawn on arrows
– Nodes are used as Milestones
– Dummy activities
–
• Activity on Node– Activities drawn on Nodes
– Arrows are used to represent Flow
Basic rules for Developing NetworksBasic rules for Developing Networks
• Network flow typically from left to right• An activity cannot begin until all preceding connected
activities have been completed• Each activity should have a unique identification
number• An activity identification number must be larger than
that of any activities that precede it• Looping is not allowed• Conditional statements are not allowed
Work Breakdown Structure, Most Likely Durations & Precedence Relationships for a Project
Work Breakdown Structure, Most Likely Durations & Precedence Relationships for a Project
A. Select computer software
B. Install software
C. Install office network
D. Test software
E. Develop database
F. Train employees
G. Implement system
3
5
7
6
8
3
2
A
A
B
B
C,D
E,F
Most Likely Immediate
Activity Duration (Weeks) Predecessor(s)
Activity-on-Node Network Representation Activity-on-Node Network Representation
Activity-on-Arc / Arrow Representation Activity-on-Arc / Arrow Representation Activity-on-Arc / Arrow Representation Activity-on-Arc / Arrow Representation
Comparison of Networks Requiring Dummy Comparison of Networks Requiring Dummy Activities for Activity-on-Arc RepresentationActivities for Activity-on-Arc RepresentationComparison of Networks Requiring Dummy Comparison of Networks Requiring Dummy Activities for Activity-on-Arc RepresentationActivities for Activity-on-Arc Representation
Critical Path MethodCritical Path Method
• The techniques help to answer questions like:– What is the expected project
completion date?– What are the scheduled start/end dates
for each activity?– Which activities are “critical”?– How long can a non-critical activity be
delayed?
Critical Path MethodCritical Path Method
• Initially, treat expected time (t) as fixed duration
• The CP is the longest route through the
network
• If these activities are delayed, the whole project
is delayed
• To reduce the overall duration of the project
look at the critical activities
Determining the Critical Path for ProjectDetermining the Critical Path for Project X X
CP calculationCP calculation
• Forward Pass
For each activity
calculate the Earliest
Start (ES) and Earliest
Finish (EF)
ES for an activity
leaving a node =
largest value of EF for
all activities entering
the node
• Backward Pass
For each activity
calculate the Latest
Start (LS) and Latest
Finish (LF)
LF for an activity
entering a node =
smallest value of LS
for all activities leaving
the node
EF=ES+t LS=LF − t
SlackSlack
• Slack is the length of time an activity
can be delayed without affecting the completion
date of the project.
S la ck=LS − ES=LF − EF
Example Network DiagramExample Network Diagram
1
2
3
4 7
5
6
8
AA66
BB22
EE33
HH
44
CC
33
GG
33
II22
FF22
JJ
22
D5
Calculating SlackCalculating Slack
Activity ES LS EF LF Slack
A 0 0 6 6 0
B 0 7 2 9 7
C 6 10 9 13 4
D 6 7 11 12 1
E 6 6 9 9 0
F 9 13 11 15 4
G 11 12 14 15 1
H 9 9 13 13 0
I 13 13 15 15 0
J 15 15 17 17 0
Adding ES, EFAdding ES, EF
1
2
3
4 7
5
6
8
A [0,6]
A [0,6]
66
B [0,2]
B [0,2]22
E [6,9]
E [6,9]
33
H [9,13]H [9,13]
44
D [6,11]
D [6,11]
55
C [6,9]C [6,9]
33
G [11,14]G [11,14]
33
I [13
,15]
I [13
,15]
22
F [9,11]
F [9,11]
22
J [15,17]J [15,17]
22
ES
EF
Adding LS, LFAdding LS, LF
1
2
3
4 7
5
6
8
A [0,6]
A [0,6]
6 [0,6
]
6 [0,6
]
B [0,2]
B [0,2]2 [7,9]
2 [7,9]
E [6,9]
E [6,9]
3 [6,9]3 [6,9]
H [9,13]H [9,13]
4 [9,13]4 [9,13]
D [6,11]
D [6,11]
5 [7,12]
5 [7,12]
C [6,9]C [6,9]
3 [10,13]3 [10,13]
G [11,14]G [11,14]
3 [12,15]3 [12,15]
I [13
,15]
I [13
,15]
2 [1
3,15
]
2 [1
3,15
]
F [9,11]
F [9,11]
2 [13,15]
2 [13,15]
J [15,17]J [15,17]
2 [15,17]2 [15,17]
LSLS
LFLF
Draw Network Diagram
Budget approval from the CEO is required before
purchasing a new machine for a factory. The use
of new machine necessitates employing a new
operator who must be specially trained, using a
training manual and some special equipment,
which is delivered with the machine.
The training itself does not depend upon the new
machine being installed and working. Once the
machine is installed and the operator is trained,
production can be started.
Activity a m b
A 2 8 10 7.33 1.78
B 8 10 12 10 .44
C 2 3 15 4.83 4.69
Formula for PERTFormula for PERTFormula for PERTFormula for PERT
a - Optimistic time, m - Most likely time, b - Pessimistic timeExpected time: Variance of activities:
te=a+4m+b
6
22
6
ba
=s
s2t e
Solved Example
Act. Description Pre. Opt. (a) ML (m) Pes. (b) Exp. (t) Var
A R & D - 4.0 5.0 12.0 6 1.78
B Plan Mkt Res - 1.0 1.5 5.0 2 0.44
C Routing A 2.0 3.0 4.0 3 0.11
D Prototype A 3.0 4.0 11.0 5 1.78
E Mkt Broch. A 2.0 3.0 4.0 3 0.11
F Cost Est. C 1.5 2.0 2.5 2 0.03
G Prod. Test D 1.5 3.0 4.5 3 0.25
H Mkt Survey B, E 2.5 .5 5 4 0.69
I Pricing/Fcast H 1.5 2.0 2.5 2 0.03
J Final Report F, G, I 1.0 2.0 3.0 2 0.11
• Let T be total time of project. Expected value of T is calculated as:
• The variance in project completion time is:
17=t+t+t+t+t=E(T) JIHEA
1.652.722.72∴
0.110.030.690.111.78∴
2
==andσ=σ
++++=σ
σ+σ+σ+σ+σ=σ
2
2
2J
2I
2H
2E
2A
Probability of meeting a specified deadline
• Probability of completing the project in 20 weeks?
• Need to use the z value, calculated as;
z=20−17σ
=3/1 .65=1 .82
By looking this z factor of 1.82 in the z table, we get
the value of 0.9656, which means the chances of
completing this project in 20 weeks are 96.56%.
Attempt this exercise
Activity Immediate
predecessors
Duration (Days)
(a, m, b)
A - 3, 5, 7
B - 2, 3, 6
C B 4, 6, 10
D A, C 3, 7, 12
E C 2, 4, 8
F C 2, 3, 4
G D, E, F 3, 5, 8
Pakistan Institute of Management
Gantt ChartGantt Chart
1/1 1/15 2/1 2/15 3/1 3/15 4/1 4/15 5/1 5/15
Process Doc
Contract
Plan/Get data
Perform tasks
Write report
Test/deliver
Legend: Red = critical path; Blue = not critical path; Green = slack time
GANTT CHART
Pakistan Institute of Management
Gantt Chart for Project X
RESOURCE LEVELING Resource leveling aims to minimize the period-by-period variations in resource loading by shifting tasks within their slack allowances.
Figure: Before resource leveling
Figure: After resource leveling
Main Planning Activities;
Defining and agreeing Scope statementCreating WBS (upto WP level)Defining activities and their predecessorsEstimating resources (Time, People, Equipment,
Materials etc., and associated Risks etc) Draw network diagram, determine CP and Float/Slack Make GANTT chart and do Resource Levelling Make a Detailed Project Management PLan
Earned Value = Budgeted Cost of Work Performed (BCWP)
Calculate BCWP by taking budgeted cost X % physical completion
Cost Variance = CV=BCWP-ACWP (actual cost)
Schedule Variance = SV=BCWP-BCWS (budgeted cost)
Cost Performance Index = CPI=BCWP/ACWP
Schedule Performance Index = SPI = BCWP/BCWS
Key Earned Value (EV) Formulas
Earned Value Calculations for a One-Year Project After Seven Months
Activity Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Plan % Complete EV
Planning and Staffing 3 2 5 100 5
Prototype Design 3 3 6 100 6
Construct Prototype 8 8 16 100 16
Test/Evaluate Prototype 5 10 15 80 12
Full Design Specs 5 6 3 14 50 7
Documentation 2 2 1 1 1 1 8 12 0.96
Site Preparation 8 3 3 14 36 5.04
Construction 20 50 50 20 140 15 21
Test/Certification 10 6 4 20 0 0
Finishing 8 4 12 0 0
Maintenance Training 4 4 0 0
Monthly Plan 3 5 11 13 15 16 28 54 61 27 13 8 254 73
BCWS or Cumulative Plan 3 8 19 32 47 63 91 145 206 233 246 254
Monthly Actual 4 4 10 11 12 15 27 0 0 0 0 0 83
ACWP or Cumulative Actual 4 8 18 29 41 56 83
Monthly EV 3 5 11 12 11 7 24
BCWP or Cumulative EV 3 8 19 31 42 49 73
BCWP = EV = 73
BCWS = 91
ACWP = 83
CV=BCWP-ACWP -10
SV=BCWP-BCWS -18
CPI=BCWP/ACWP 0.9
SPI=BCWP/BCWS 0.8
Estimated time to complete 15 (original plan of 12 months divided by SPI of 80%)
Estimated cost at completion 289 (original plan of 254 divided by CPI of 90%)
CO
ST
TIME
EAC
ETC
Delay in completion
Schedulevariance
BCWP
ACWP Cost variance
BCWS
BACProject budget base line
Earned Value Chart for a Project