14 project planning and other basics

7/30/2019 14 Project Planning and Other Basics

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Project Planning and Other BasicsSources:

Chapter 14 of IE 1035 textbook

David I. Cleland and Lewis R. Ireland

Project Management: Strategic Design and Implementation5th edition, 2007; McGraw-Hill

Harold Kerzner

Project Management: A Systems Approach to Planning, Scheduling, and Controlling

8th edition, 2003 and 9th edition, 2006; Wiley

Project Management

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Outline Project (definition, examples) The Project Manager and his/her Functions

A Project Management System

Statement of Work Project Charter

Project Milestones

Work Breakdown Structure

Linear Responsibility Chart Project Scheduling Techniques

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What is a Project? (1) any undertaking that has definite, final objectives

representing specified values to be used in thesatisfaction of some need or desire (Davis, 1951);

(2) a collection of tasks aimed toward a single set of

objectives, culminating in a definable end point andhaving a finite life span and budget (Morse and Babcock,2010)

A project has three essential considerations: Time (project schedules)

Cost (dollars and other resources)

Technical Performance (achieving stated objectives)

Examples.3


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Project Manager

The person who manages and controls

a project by planning, estimating,

scheduling, administering, andmonitoring tasks.

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Project Manager Functions

PlanningRecall we defined this as, provides amethod for identifying objectives and designing asequence of programs and activities to achieve theseobjectives

Examples

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Project Manager Functions (cont.)

OrganizingRecall we defined this as involvesestablishing roles for people and determining how

best to acquire and utilize human and non-human

resources. Examples

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Leading/MotivatingRecall we defined leadingas getting the cooperation of others in

accomplishing a desired goal. In the context of a

project you might say directing and encouraging theproject team to do their best work

Examples

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Controlling Recall we defined, Controllinginvolves ensuring that the actual events conform to

the planned events. The project manager must take

action to keep and get the project back on track interms of schedule, cost and technical performance.

Examples

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A Project Management System

(PMS)

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PMS

Project

Manager

Planning

Subsystem

Information

Subsystem

Control

Subsystem

Techniquesand

Methodologies

Facilitative

Organizational

Subsystem

Cultural

Ambiance

Human

Subsystem

Attributed to David I. Cleland


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Statement of Work (SOW)

Defines exactly what is to be done in the project SOW establishes

Contract of who does what and when

Baseline for changes in the work

Communication channel

Sometimes defined by the contractor other times bythe customer

Other documents that also outline a SOWRequest forProposal (RFP), Request for Services (RFS), PurchaseOrder (PO)

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SOW Typical Contents

Purpose or Goalwhat must be done

Scopedefines the boundaries of a project

Deliverables - outcomes

Cost Estimatesmay or may not be detailed

Schedule Estimatesgeneral time frame

Project Organizationhow much of this is

include depends on the context of the project

Responsibilities

Assumptions11


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SOW Example:

New Home Construction

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Purpose: Build a new predesigned house.Scope: Build a 2-story, 4-bedroom, 2-1/2-bath

home on a vacant lot. House will also havea 2-car garage, driveway, basement, diningroom, living room, family room, and anentrance hallway.

Deliverables: House in move-in condition.Materials and suppliesCostEstimates:

$50,000 for 1/3 acre of land in Bridgevillethat is located in the South Hills ofPittsburgh. $100,000 for colonial style brickhouse with some vinyl siding. We willmortgage $120,000 for our house through

Dollar Bank with a 30-year 6.875% fixedrate mortgage with zero points. There willbe a 20% down payment ($30,000), $307 inclosing costs, and 30 days prepaid interest.The monthly payment (principal andinterest) and without taxes will be $788.31.


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SOW Example cont.

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ScheduleEstimates:

From beginning to end (getting a loan until the house iscompletely finished) of building the house, it should take10 months.

ProjectOrganization:

Will need to have carpenters, painters, plumbers,electricians, roofers, and landscapers.

Responsibilities: We are the customer and the general contractor. We willplan, organize, and supervise to make sure everything isrun smoothly to our satisfaction.

Assumptions: 1. There are no children.2. Ground is thawed.3. We have a good credit history.4. We save the 20% markup general contractor services,

since we are the contractors.5. Subcontractors are following the schedule.6. Lot is level.7. There will be no initial interior wall decorating,

landscaping of shrubbery, or walkway and drivewaypaving until ground settles.

8. The cost for the land and building of the house isrealistic and representative of the area.

9. 3-point estimates are calculated in days.10. The working days are Monday through Friday,

inclusive.


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Other items that may be included

in the SOW

Constraints

Success Criteria

If you google project management statement of workyoull find links to software and templates that can be

purchased to help create a statement of work

If you google statement of work sample youll find

plenty of examples from public domain projects

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Project Charter

We distinguish this from the statement of work.

The statement of work is often a public document betweenthe contractor and customer, the project charter is a

document internal to the project teams organization. Describes at high level what is to be accomplished in a

project and delegates authority to the project manager toimplement actions required for project completion.(Cleland and Ireland, 2007)

First document used to initiate a project, typically writtenin memorandum form and includes: Purpose of the project Assignment of the project manager

General management support of the project15


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Simple Project Charter Example

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To: All ABC Human Resources Services Company employees

From: C. White; Executive Vice President

Subject: Project Charter for Acme Project

Date: January 13, 2009

Ms. Renee Jones has been appointed the Project Manager for the Acme

Project with the goal of designing and implementing Acme Corporations

payroll system. She will be responsibility for ensuring that all key milestones

are met within the time, cost, and performance constraints of this project while

adhering to proper quality control standards.

To ensure that the project meets its objectives, I have authorized Ms. Jones to

manage the project and issue directives in accordance with the policies and

procedures of ABC.


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Project Milestones

Key start and end dates for majorproject phases or activities

A project milestone schedule shows theproject start date and end date, othermajor milestones dates, major data

items (deliverables, reports)Very useful as a basis for more detailed

planning

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Project Milestones Example

New Home Construction

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1. Site Acquisition......................................March through May2. Selection of House Plan........................March through May3. Hire & Schedule Subcontractors...........May through August4. Obtain Permits.......................................May through August5. Ground Breaking....................................August & September

6. Foundation.............................................September & October7. Build Frame............................................October & November8. Install Utilities.........................................November9. Complete Exterior Work.........................November10. Complete Interior Work..........................November11. Landscaping...........................................November

12. Final Walk Through................................November & December


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Work Breakdown Structure (WBS)

A product-oriented family tree of work effort that provides alevel-by-level subdivision of the work to be performed for a

project.

Describes the total project effort by detailing all work packages

(an element of work to be performed to support projectobjectives and goals).

Can be depicted in a tree or outline format and can be used

define the interrelationships among the work packages.

Includes all end items (deliverables) such as equipment, facilityand services. Includes the major tasks which are essential for the

conception, design, creation, operation, test and disposal of these

end items.

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WBS (cont.)

The WBS can be used as input for otherproject efforts such as:Planning and scheduling the work, including a

network schedule (PERT/CPM)Cost estimation and budgets

Assigning responsibilities and authorize work

Tracking time, cost, and performance -controlling

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WBS Example: New Home Construction

Tier 1

1.0 Site Acquisition2.0 Selection of House Plan

3.0 Hire & Schedule Subcontractors and Obtain Permits

4.0 Ground Breaking

5.0 Foundation6.0 Build Frame

7.0 Install Utilities

8.0 Complete Exterior Work

9.0 Complete Interior Work

10.0 Landscaping

11.0 Final Walk Through

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WBS Example: New Home ConstructionTier 2

1.0 Site Acquisition1.1 Determine desired area where you want to live

1.2 Determine budget

1.3 Pick desired lot

1.4 Acquire lot1.5 Start loan process

2.0 Selection of House Plan

2.1 Determine needs/wants of house design

2.2 Consult local architects or floor plan services

2.3 Pick a floor plan that fits your needs and the lot

2.4 Purchase blueprints

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3.0 Hire & Schedule Subcontractors and Obtain Permits3.1 Determine subcontractors that are needed

3.2 Get recommendations on subcontractors

3.3 Pick subcontractors

3.4 Make preliminary schedule for subcontractors3.5 Contact local municipality about permits

3.6 Obtain and pay for permits

3.7 Finalize loan

4.0 Ground Breaking

4.1 Preparations

4.2 Excavations ETC.

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4.1 Preparations

4.1.1 Clear trees

4.1.2 Survey land

4.2 Excavations

4.2.1 Excavate level area

4.2.2 Excavate trenches for plumbing and gas

4.2.3 Dig hole

ETC.

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Creation, Use, and Control of the WBS

Creation: Top-down and include input from project teammembers; Identify for each work packageresources,

procurement methods, authority and responsibility for

completion, specifications, budgets, and schedule; Get

feedback Use: Record and manage dates, expenditures, change orders,

etc. for each work element via the numbering system;

Compare actual to planned; Corrective actionmake

adjustments

Control: Decide who can change the WBS and how;

Establish communication channels; procedures

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Linear Responsibility Chart (LRC)

Also called the linear organizational chart or the matrixresponsibility chart

This is a tool for the project management function oforganizing

Shows whats involved, who participates, and to what degree Shows the extent or type ofauthority, responsibility,

and accountability especially when two or more peopleoverlap. This isnt often done with a typical organizational

chart. Gets a dialogue going

LRC is a plan and as part of the managers control functionshould be compared to actual

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Interface Between the Work Package and

the Position

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Organizational or Project Team Position

Work

PackageConduct Design Review

Director,

Systems

Engineering

P

Key:

P Primary

S Secondary

A Approve

N - Notify


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LRC (cont.)

Three main components1. Position titles listed along the top (columns).

2. Activities, functions, or work packages listed

down the side (rows).3. A symbol indicating the degree or extent of

authority, responsibility, accountability.

Level of detail : should match one of the levelsof the work breakdown structure

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LRC Example: New Home Construction

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HeadContractor

FinancialInstitution

RealEstate

Co.

GeneralContractors

1.0 Site Acquisition

1.1 Determine desired area tolive

P N

1.2 Determine budget P S N1.3 Pick desired lot P N

1.4 Acquire lot P S1.5 Start loan process P S2.0 Selection of House Plan

2.1 Determine needs/wants ofhouse design

P

2.2 Consult local architects orfloor plan services

P S

2.3 Pick a floor plan that fitsyour needs and the lot

P S

2.4 Purchase blueprints P N

3.0 Hire/ScheduleSubcontractors and ObtainPermits

3.1 Determine subcontractorsthat are needed

P

3.2 Get recommendations onsubcontractors

P

3.3 Pick subcontractors P N

Key:

P PrimaryS Secondary

A Approve

N - Notify


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Rules of Thumb for the LRC

Everyone isnt involved with every workpackage

Should only have one P per work package

Only assign responsibility for the workpackage (i.e., not the levels above)

Maintain the numbering scheme used on

the WBS for the LRC

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Project Scheduling Techniques

Non-NetworkingBar (Gantt) Charts

NetworkingPERT and CPM

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Bar or Gantt Chart

Named for its developer: Henry L. Gantt, one ofthe pioneers of the scientific management

movement (finding the best way to do a job)

Class of charts in which the progress of some setor sequence of activities in the vertical dimension

is plotted against time in the horizontal

dimension. Can be used to show slack time (time available

for the project manager to float or delay a task

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ACTIVITY

DESCRIPTION1 2 3 4

Work package 1

Work package 2

Work package 3

Work package 4

Work package 5

Work package 6

Work package 7

Work package 8

Time (in minutes, days, weeks, months, etc.)


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Getting Ready for WorkGround Rules and Assumptions

You have to wake up before doing anything else (nosleepwalking to accomplish tasks).

You like to have a cup of coffee prior to shaving or

putting on make-up.

All other task must be completed before driving to

work.

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Getting Ready for Work

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ACTIVITYNUMBER ACTIVITY DESCRIPTION ACTIVITYDURATION

1 WAKE UP 15 MIN

2 SHOWER 15 MIN

3 SHAVE/MAKE UP 10 MIN4 DRESS 10 MIN

5 BREW COFFEE 10 MIN

6 MAKE BREAKFAST 10 MIN

7 EAT BREAKFAST 10 MIN

8 DRIVE TO WORK 20 MIN

TOTAL TIME 100 MIN


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Gantt Chart: Getting Ready for Work

ACTIVITYDESCRIPTION 10 20 30 40 50 60 70 80 90 100

WAKE UP

SHOWER

BREW COFFEE

SHAVE/MAKE UP

DRESS

MAKE BREAKFAST

EAT BREAKFAST

DRIVE TO WORK

TIME (MINUTES)


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Gantt Chart: Getting Ready for Work

ACTIVITYDESCRIPTION 10 20 30 40 50 60 70 80 90 100

WAKE UP

SHOWER

BREW COFFEE

SHAVE/MAKE UP

DRESS

MAKE BREAKFAST

EAT BREAKFAST

DRIVE TO WORK

TIME (MINUTES)

FLOAT


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Networking Techniques

Much more effective tools for complex projects withmany overlapping work packages and interdependencies

Identify task dependenciespredecessor and successor

relationships

Create a network diagram to picture task relationships

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B E

A D G

C F

PERT (P g E l ti d


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PERT (Program Evaluation and

Review Technique)

Developed in 1958 by Booz, Allen and Hamiltonfor use by the U.S. Navy for the Polaris program

Credited with cutting 2 years from the original

project estimate Origin of the 3-point estimating technique

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CPM (Critical Path Method)

Developed in 1958 by DuPont for schedulingplant shutdowns for maintenance

Defines the longest path through the network

For very complex projects it is typicallycomputed via project management software

(more later).

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Network Techniques cont.

Today PERT/CPM have basically beenmerged into one technique

In PERT/CPM we calculate task duration

and start and finish dates

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Task Duration

3-Point Estimatingbased on the betadistribution

Optimistic (a)only about a one in 100 chance

of improving Most Likely (m)would occur most often in

replication of the activity (the mode)

Pessimistic (b)only about a one in 100 chanceof being longer

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Expected task time (3 point estimate):


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Total time to complete all activities on the critical path:

(for all activities on the critical path)

Standard deviation of task time

Standard deviation of total time for critical path

(for all activities on the critical path)

Based on the Central Limit Theorem (CLT) and considering the

total time as a linear combination of the individual task times,

we can determine the probability that the project will be

completed within a particular amount of time.


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Example Replacing a Faucet

1. Using the data shown on the next slide, calculate the3-Point Estimates for each activity (Note: all times arelisted in minutes; assume all are sequential andtherefore on the critical path.)

2. What is the expected total time to replace the faucet?What is the standard deviation of the total time?

3. With 95% confidence, we can complete the jobwithin +/- 2 standard deviations. What are these

estimates of time?

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Example Replacing a Faucet (cont.)

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Task a m b 3-Pt

Est.

2

Turn off water 2 5 15

Take off old

valve

5 10 60

Apply putty andnew valve

3 5 20

Turn on water 2 5 15

Total


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PERT/CPM Additional Notation

To make full use of a PERT/CPM schedule, early/latestart/finish times and slack time should be computed:

Use a Forward Pass to compute:

Early Start (ES) - earliest time when an activity can start

Early Finish (EF)the earliest time when an activity can finish

Use a Backward Pass to compute

Late Start (LS)the latest time when an activity can start without

extending the completion time of the project

Late Finish (LF)the latest time when an activity can finish

Note: All activities on the critical path will have the same

times for early and late starts and for early and late finishes

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Notation (cont.)

Slack Time:Computed as the difference between the latest

and earliest start times for a task

The time available for the project manager tofloat or delay the task without delaying the

project completion time

Slack Time = 0 for all activities on the criticalpath

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Simple Example

Activity Preceding Activity Duration (expected

task time)

A - 3

B - 5

C A 4

D B 5

E C, D 2

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Suppose you have a project that involves the followingwork packages, required precedence, and durations:

Create a network diagram using the activity on arrow method,

determine ES, EF, LS, LF, and slack times. Identify the critical

path.

In class Example Network


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In class Example Network

Scheduling

1. Using the data provided on the next slide, create a Ganttchart and build a network schedule for this project.

2. How long will it take to complete the project?

3. How many paths are there through the network?

4. Which is the critical path?

5. Compute the earliest and latest starting and finishing

times for each activity.

6. Compute any slack times.

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Network Example

Activity Description Preceding Activity Time (Weeks)

A Preliminary Design - 7

B Hire Additional Staff - 8

C Procure Materials - 6

D Detailed Design A 6

E Assign Tasks B 6

F Research B 8

G Disburse Materials C 4

H Final Design D,E 7

I Test F,G,H 3

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