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Project admin lu3

  1. 1. PROJECT MANAGEMENT TOOLS Learning Unit 3
  2. 2. Learning Unit Objectives Describe and use key project management tools and techniques; Explain (with the aid of examples from a project), the advantagesand limitations of different project management tools andtechniques; Develop a project plan for a simple project using a selectednumber of project management tools; Be able to adapt the project plan with updates to the projectschedules; Accelerate a project’s schedule and explain such acceleration; Create reports using a project management tool; Interpret information obtained from project management tools; Demonstrate the application of project management tools andtechniques, and provide hard copy examples of key projectdocuments.
  3. 3. PROCESS TASKS Schedule Plan: involves outlining the activities,tasks, dependencies and timeframes. Starts with theWork Breakdown Structure (WBS) Scheduled on theCritical Path Method (CPM) and the Gantt chart. Human Resource Plan: usually involves listingthe labour and human resource requirement. Theoutput of the resource plan is the resource histogram. Procurement Plan: involves identifying allmaterials and equipment to be sourced from externalsuppliers. The output of the procurement plan is theprocurement schedule.
  4. 4. PROCESS TASKS 2Financial Plan: involves identifying all income(derived from milestone payments) and expenses(labour, equipment and materials costs). Expensesmust be balanced against income in order to ensurethat the project can meet its financial obligations.The output of the financial plan is the cash flowstatement. Risk Plan: involves highlighting potential risks anddocumenting actions that might be taken to mitigatethem. The output of the risk plan is the risk register.
  5. 5. PROCESS TASKS 3Quality Plan: involves providing quality targets,assurance and control measures. The output of thequality plan will be the quality assurance plan andthe quality control plan. Communications Plan: involves identifying howeach of the stakeholders will be kept informed of theprogress of the project. Identifies the types ofinformation to be distributed, the methods ofdistributing information to stakeholders and thefrequency of distribution. The communications planwill be extensively dealt with in Learning Unit 5.
  6. 6. WORK BREAKDOWN STRUCTURE• Enables scope of work to be broken down into manageable elements• Provides work packages with detailed instructions & responsibilities• Groups similar work together – allows logical flow of tasks• Backbone of project as allows for all planning and control activities
  7. 7. WORKBREAKDOWN STRUCTUREGRAPHICAL REPRESENTATIONSee 3.2.1 page 76 Module ManualTEXT METHODSee 3.22 page 76 Module Manual
  8. 8. NUMBERING SYSTEM & LEVELS• each activity and sub-activity is numbered in a special way that identifies where it links in with the main project• highest level is the project description . Highest level is referred to as Level 0 (zero). It is represented by the chosen project number• The next level down is level 1. This level indicates all the major activities of the project.• The next level down is level 2. This is the sub-subdivision of all level 1 activities and usually represents the work that needs to be carried out.• Level 3 is a breakdown of tasks to the most basic level.
  9. 9. STRUCTURE SUBDIVISION (P77)• Product breakdown structure• Organisational breakdown structure• Contract breakdown structure• Location breakdown structure• System breakdown structure
  10. 10. NETWORK DIAGRAMS AND CPANetwork diagrams illustrate graphically therelationships between tasksNumber of different methods:-•Precedence Diagramming Method•Activity on Arrow Method•Activity on Node Method
  11. 11. Network diagram method•Identify all tasks in a project•Sequence them•Present tasks, predecessors and durations in atable•Draw a network
  12. 12. Tasks, Predecessors and Durations Identify bursts – Identify merges –Identify tasks with tasks sharing a tasks with moreno predecessor common than one predecessor predecessor TASK PREDECESSOR DURATION A - 2 B A 3 C A 2 D B 1 E C 5 F C 4 G E,F 7 H D,G 2 I H 4 NO PREDECESSOR THEN MUST BE FIRST TASK
  13. 13. burstsActivity on NodePrecedence Diagramming Method
  14. 14. mergeActivity on NodePrecedence Diagramming Method
  15. 15. Individual exercise1. Identify the Bursts and Merges in the example below2. Draw a network for the situation using the PrecedenceDiagramming Method TASK PREDECESSOR A - B A C A D B,C E D F E
  16. 16. Network diagram BURST B A D E F C MERGE
  17. 17. Task boxPrecedence Diagramming Method uses task boxes to representtasks and connectors ES EF Early Start Early Finish FLOAT TASK DURATION LS LF Late Start Late Finish YOU NEED TO MEMORISE THIS – IT WILL NOT BE GIVEN YOU IN EXAM
  18. 18. Tasks, Predecessors and Durations TASK PREDECESSOR DURATION A - 2 B A 3 C A 2 D B 1 E C 5 F C 4 G E,F 7 H D,G 2 I H 4 Draw a network diagram for this example Double-check the tasks against their predecessors to make sure it is correct.
  19. 19. duration An activities duration will run from thestart to the finish of the activity.. Time units canbe expressed in hours, days, weeks, months,shifts – whatever is appropriate for the project. For simplicity we will always use days asour time unit. PUT DURATIONS ONTO YOUR DIAGRAM
  20. 20. durationsAdd durations to your network as per the task box convention ES EF Early Start Early Finish FLOAT TASK DURATION LS LF Late Start Late Finish
  21. 21. Critical pathCalculate the critical path by adding up the durations on eachpathThe longest time is the critical pathMark the critical path in a different colour on your diagram
  22. 22. float Float is a measure of flexibility or surplus time inan activity’s schedule. It indicates how many days anactivity can be delayed before if affects the projectcompletion dateAll activities on the critical path have a float of 0Put this onto your diagram
  23. 23. floatAdd floats to your network as per the task box convention ES EF Early Start Early Finish FLOAT TASK DURATION LS LF Late Start Late Finish
  24. 24. Float – non critical pathSECOND LONGEST PATHTotal critical path duration – 2nd longest path duration = 2nd longestpath floatPUT THIS ONTO YOUR DIAGRAMTHIRD LONGEST PATHTotal critical path duration – 3rdlongest path duration = 3rd longestpath floatPUT THIS ONTO YOUR DIAGRAMWhen a task is part of more than 1 path the smallest number isalways selected for the float
  25. 25. Early start Early start is the earliest date by which anactivity can start assuming all of the precedingactivities are completed as plannedES = ES preceding task + duration preceding taskPUT THIS ONTO YOUR DIAGRAM
  26. 26. EARLY STARTAdd EARLY STARTS to your network as per the task boxconvention ES EF Early Start Early Finish FLOAT TASK DURATION LS LF Late Start Late Finish
  27. 27. EARLY FINISH Early finish is the earliest date by whichan activity can be completed assuming all of thepreceding activities are completed as planned EF = ES + Duration -1 PUT THIS ONTO YOUR DIAGRAM
  28. 28. EARLY FINISH Add EARLY FINISH to your network as per the task box convention ES EF Early Start Early Finish FLOAT TASK DURATION LS LF Late Start Late FinishMake sure that the last tasks EF = critical path duration. If not youhave made an error
  29. 29. Late start Late start is the latest date an activity canfinish to meet the planned completion date LS = ES + FLOAT PUT THIS ON YOUR DIAGRAM
  30. 30. Late startAdd LATE STARTS to your network as per the task boxconvention ES EF Early Start Early Finish FLOAT TASK DURATION LS LF Late Start Late Finish
  31. 31. LATE FINISH Late finish is the latest date an activitycan finish to meet the planned completion date LF = EF + FLOAT PUT THIS ON YOUR DIAGRAM
  32. 32. Late FINISH Add LATE FINISHES to your network as per the task box convention ES EF Early Start Early Finish FLOAT TASK DURATION LS LF Late Start Late FinishCheck the late finishes at merges. The merging tasks shouldhave same LF otherwise there is an error
  34. 34. GANTT CHARTS & RESOURCE PLANNINGP84 & P89 Module Manual
  35. 35. CLASSWORK Activity Preceding Duration Resources INDIVIDUAL EXERCISE per Day1. Draw the Network and complete A _ 4 4 forward & backward passes B _ 5 1 & float C A 10 12. Indicate the D B 10 3 critical path3. Draw the Gantt E C,D 10 3 chart including F B 10 6 resources4. Draw the resource G F 9 2 histogram H E,G 5 4 I - 15 5
  36. 36. PROCUREMENT PLAN & SCHEDULE• P Plan identifies all items to be purchased from external suppliers• P Schedule is the output from this plan• Very important planning tool• Provides the detail required to acquire goods and services• Produces after the network diagram and the schedule Gantt chart• Determines what quantities and when the resources are required
  37. 37. PROCUREMENT PLAN & SCHEDULE• JIT delivery• Late delivery can delay project• Purchasing at project start not possible – security and cashflow
  38. 38. PROCUREMENT PLAN & SCHEDULE• Make or buy decision• Procurement list – BOM (Bill of Materials)• Supplier sourcing – credible suppliers must be identified• Quotations/tenders – legally binding if accepted• Adjudicate quotations/tenders – technical evaluation• Generate the order – signed by delegted official of the company• Expedite order – follow ups• Receive goods – delivery note compared to order• Warehousing – safe, appropriate location• Payment – check against order and budget prior to payment
  39. 39. Example Procurement Schedule Activity Description Bill of Quantity Expected Date Material Delivery Date Required A100 Foundations Spades 14 6 Mar 7 Mar Cement 700 bags 7 Mar 8 Mar Stone 10m³ 7 Mar 8 Mar Sand 20m³ 7 Mar 8 Mar A200 Walls Cement 900 bags 8 Mar 9 Mar Sand 30m³ 8 Mar 9 Mar Bricks 12 000 8 Mar 9 Mar
  40. 40. Time limited resource smoothing• Applies to projects that have a fixed end date – e.g. soccer world cup stadiums• Only way to address resource overloads is to increase resources or reduce scope
  41. 41. Resource limited resource smoothing• Applies to projects that have limited resources available, e.g.• Where space is confined and additional people cannot be accommodated.• Where there is limited equipment, e.g. machinery, computers etc.• Where people with specialised skills are scarce.• Address by extending timeline or reducing scope
  42. 42. HOW TO INCREASE RESOURCES• Increase productivity• Work overtime• Work shifts• Job & knock – goal achieved and then home• Sub-contracting
  43. 43. HOW TO REDUCE RESOURCES• Re-deploy team members to R&D• Training• Maintain equipment• Hire team members out
  45. 45. THE BUDGET• Expected flow of money in & out of the project• Large projects can run into financial difficulty very quickly if budget is not controlled
  46. 46. February March AprilBFWDIncomeTOTALMaterialsLabourOtherTOTALClosing BalanceThe project has an initial investment of R15 000. The income for February is R25 000;for March R15 000 and April R20 000.Material expenditure for February is R16 000; for March R14 000 and April R8 000.Labour expenditure for February is R12 000; for March R10 000 and April R5 000.Other expenses are: February R2 000; March R2 000 and April R1 000.Compile the cashflow statement.
  47. 47. INDIVIDUAL EXERCISE• Cashflow examples
  48. 48. GROUP EXERCISE – OVER TO YOU (ICE TASK 3)• Divide into 3 equal size groups• Research and prepare a 30 minute lecture on the subject given to you• Lecture must include notes, visual aids, activities to enhance the subject matter• All members of the group MUST take an active part• Present the lecture to your fellow students
  49. 49. GROUP EXERCISE – OVER TO YOU (ICE TASK 3)Lecture Subjects• The Quality Plan• The Risk Plan• The Communication PlanUse material from your module manual,INPM210 and other material you obtainfrom your research
  50. 50. Accelerate a Projects Schedule• Project acceleration/compression• Required when project completion required before completion date• Two methods of acceleration – crashing and fast tracking• Both shorten schedule without reducing scope
  51. 51. CRASHING• Cost/schedule trade off• Establish max compression within acceptable cost increase• Additional resources allocated to tasks on critical path• Advantages: Shortens project time and achieves max compression for least additional cost• Disadvantages: Increase total project cost, additional resources can often add overheads that negate time savings
  52. 52. FAST TRACKING• Involves running phases concurrently• Following phase commenced before preceding phase signed off• Advantages: Shortens project time• Disadvantages: Involves a high risk if client makes changes to plan