SlideShare a Scribd company logo
1 of 42
Download to read offline
BPP 3213 PROJECT ESTIMATION AND
           SCHEDULING

Lecture 1 Fundamentals of Project Planning
          Nurhaizan Mohd Zainudin (ext 2275)
                      Sept, 2012

                  Faculty of Technology
                University Malaysia Pahang


                 Jane Doe & Jane Doe
Introduction

•Lecture Outline
   • Introduction to Course
       • Focus of the Course
      • Course outline
      • Course Outcome
      • Course Assessment
      • References

   • Major Assignment

   • Purpose of this lecture / Lesson outcome
Introduction (cont’d)

•Lecture Content
   •FUNDAMENTALS OF PROJECT PLANNING
      • Project Life Cycle
      • Project Master Plan
      • Project Organization Structure and
      Responsibilities
      • Scope and Work
      • Planning and Scheduling Charts
      • Project Management System
      • Challenges in Scheduling and Estimating
      • Conclusion
• Tutorial
Time Management...
Focus of the Course

• Projects are too complex for a simple ‘back of
the envelope’ planning

• Thus, the need for consistent and disciplined
thinking in a systematic manner

• Scheduling and estimating tools and techniques
help in allocating and managing cost and
resources effectively
Course Outline

1. Fundamentals of Project Planning
2. Network Scheduling and Precedence Diagram
   Method
3. PERT, CPM, GERT, and GANTT Chart
4. Scheduling With Resource Constraints
5. Fundamentals Cost Estimating and Budgeting
6. Tracking the Project
7. Project Control
Course Outcome

•Understand the importance of scheduling and
estimation in ensuring the successful of project

•Apply Precedence Diagram Method (PDM) in
determining relationship between tasks

•Use appropriate techniques for resource
estimation for a project planning
Assessment

Group Assignment (Project)   30%
Individual Assignment        10%
Tutorial                     10%
Test ( 2 tests)              10%

Final Exam                   40%

Total                        100%
References

Main References:

1. Kerzner, Harold. 2007. Project Management: A
   System Approach to Planning, Scheduling and
   Controlling. John Wiley and Sons. 8th Edition.
2. Nicholas, John M. 2004. Project Management for
   Business and Engineering: Principles and Practice.
   Elsevier Butterworth-Heinemann. 2nd Edition.
Purpose of this lecture

To better understand:

• Project life cycle, master plan, organization
structure, and scope and work

• Planning and scheduling charts

• Project management system

• Challenges
Scheduling...
Project Management


Project         Project Scope   Project Quality
Integration     Management      Management
Management
Project Time    Project Cost    Project Human
Management      Management      Resource
                                Management
Project         Project Risk    Project
Communication   Management      Procurement
Management                      Management
Introduction
• Project Planning:
-A discipline stating how to complete a project
-Certain timeframe, defined stages, designated
resources

• Estimating (PMBOK 2004):
- Developing an approximation of resources costs
needed to complete each schedule.
-Considering the possible cause of variation of
cost estimates
- Identifying and considering various costing
alternatives
Introduction (cont’d)
•Scheduling:
-A process converting a project plan into time-
based graphic presentation
- Given information on available resources and
time constraints
- 3 basic steps
Project Life Cycle
• Projects are subdivided into several manageable
phases

• Phases that connect the beginning of a project to its
end
- Concept and initiation phase
- Design and development phase
- Implementation / construction phase
- Commissioning and hand over phase

• Generally defines:
- What are the technical work to do in each phase?
-When the deliverables are to be generated?
- Who involved in each phase?
Characteristic of Project Life Cycle
                                                                                   PMBOK 2008

                                Starting   Organising                Carrying out the work             Closing
                                  the         and                                                        the
                                project    preparing                                                   project
      Cost and Staffing Level




Project
Management                            Project   Project Management                            Accepted
                                      Charter           Plan                                 Deliverables
Output                                                               Time
Characteristic of Project Life Cycle (cont’d)
                                            PMBOK 2008

    • Phases are sequential

    • Cost and staffing levels:
    - Low at start
    - Peak during intermediate
    - Drop rapidly when project approaching completion

    • Level of uncertainty:
    - Highest at start, risk of failing is greatest
    - Gets better as the project continues

    • Stakeholder ability to influence:
    -Highest at start
    - Gets lower as the project continues
Characteristic of Project Life Cycle (cont’d)
                             PMBOK 2008
Planning for a Project...
Project Master Plan
• A comprehensive document that sets out
overall strategy for a project

•Incorporates several related sub plans
- Risk management plan
- Staffing management plan
- Scope management plan
- etc

• A planning tool that provides a detailed
guidance

• The big picture for a project
Project Master Plan (cont’d)
•   A good project plan will provide:
    • A roadmap everyone in the team can follow
      with clear milestones
    • A realistic project timescale
    • Details of resource requirements
    • Validation of estimated cost
    • Identification of task slippage
    • Early warning of problems
Organization Structure
• Projects are performed by people, managed by
people

• Organization structure reflects the project’s
needs, the team’s needs, and the individual needs

• Identifies relationships between various
parties, lines of authority & lines of communication
Organization Structure (cont’d)
• It considers:
i) Project team
-Relationship of PM & other team members

ii) Project interfaces
-Communication of PM with internal & external
s/holders

iii) Matrix organization structure
-Temporary project lines of responsibility

iv) Responsibility Matrix
- Development of schedule bar chart, links work to the
responsible person
Project Organization Structure
Functional Organization Structure
• Traditional organization structure
• Based on subdivision
• ‘Wedding Cake’ corporate structure

• Advantages:
- Provide a home for technical expertise and good
support
-High degree of flexibility
- Lines of communication is short and well
established
- Clearly defined responsibility and authority within
departments
Project Organization Structure (cont’d)

   Functional Organization Structure (cont’d)

   • Disadvantages:
   - No single point of responsibility
   - No formal lines of communication
   - Inadequately defined responsibilities for external
   coordination
   - Departmental work takes priority to project work
   - Not effective for multi-project environment
Project Organization Structure (cont’d)

   Functional Organization Structure (cont’d)

                              General
                              Manager



   Civil         Structural        Mechanica         Procurement
  Manage         Manager               l               Manager
    r                               Manager
    Supervisor     Supervisor           Supervisor
                                                      Administrato
    Tradesman      Tradesman            Tradesman     r
Project Organization Structure (cont’d)
   Matrix Organization Structure
   • Mathematical matrix topology – vertical and
   horizontal lines of responsibility and authority
   • Vertical lines: functional departments
   • Horizontal lines : project

   • Variants:
   - co-ordination matrix (weak, nearest to traditional
   functional hierarchy)
   - overlay matrix (balanced, commonest)
   - secondment matrix (strong, nearest to pure project
   structure)
Project Organization Structure (cont’d)
   Matrix Organization Structure (cont’d)

   •Advantages:
   - Clear single point responsibility – Project Manager
   - Higher degree of resource utilization
   - Shared capital cost between projects and functional
   departments
   - Good flow of information

   • Disadvantages
   - Complex and difficult to understand
   - More communication links required
   - Dual responsibility and authority leads to confusion
   - Cost of running the matrix organization is higher
Project Organization Structure (cont’d)
   Matrix Organization Structure (cont’d)
                                     General
                                     Manager



           Civil        Structural             Mechanical   Procurement
          Manager       Manager                 Manager       Manager

                            Project Lines of
    Project                 Responsibility
    Manage
     r (1)

    Project
    Manage
     r (2)      Two
                Bosse
                s
               Supervisor
               Tradesman
Project Organization Structure (cont’d)
   Pure project Organization Structure
   • All
       departments are dedicated to the project
   • Self-contained unit
   • Project manager has high level of authority to
   manage and control

   •Advantages:
   - Project manager has full line authority
   - Increased commitment and loyalty
   - Promotes effective communication
   - Lines of communication is shorter
Project Organization Structure (cont’d)
   Pure project Organization Structure (cont’d)

   • Disadvantages:
   - Duplication effort if numbers of project running
   concurrently
   - Divorces from functional departments – sever cross
   flow of information and ideas
   - Cannot offer continuity of employment – lose
   valuable experience and information
Project Organization Structure (cont’d)
   Pure project Organization Structure (cont’d)

                              Project
                             Manager



         Mechanical                             Structural
          Manager                               Manager



  Mechanical    Mechanical              Structural      Structural
   Foreman      Supervisor              Foreman         Superviso
                                                            r
Project Management System
• Types of software covering scheduling, cost
control, resource allocation, quality management and
documentation etc

• Tasks or activities include:
- Scheduling
- calculating critical path
- Providing information

• Examples:
-Microsoft Project
- Prince2
- Primavera
Planning and Scheduling Charts
Planning and Scheduling Charts (cont’d)
    • Scheduling techniques to cope with
    complexities, masses of data and tight deadlines

    • Most common:
    - Gantt Chart or bar chart
    - Milestone Charts
    - Line of balance
    - Program Evaluation and Review Technique (PERT)
    - Arrow Diagram Method (ADM) or Critical Path
    Method (CPM)
    - Precedence Diagram Method (PDM)
    - Graphical Evaluation and Review Technique (GERT)
Scope and Work Definition
Milestone Schedule (PMBOK 3     rd   Ed)

Milestone is a significant point of event in the project.

Schedule Milestone means a significant event in the
project schedule and have zero duration.

Thus, Milestone Schedule is a summary-level
schedule that identifies the major schedule milestone.

Milestone schedule contains:
- Project start date and end date
- Other major milestone
- Deliverables
Scope and Work Definition (cont’d)
  Work Breakdown Structure (WBS)
  • An output/input
  • A deliverable-oriented hierarchical decomposition
  of work to be executed
  • To accomplish project objectives
  • Organizes and defines the total scope of work for
  the project work
  • Decomposed into work packages
Scope and Work Definition (cont’d)
  Work Breakdown Structure (WBS) (cont’d)
  • WBS dictionary is a document describing each
  component in the WBS – description includes brief
  definition of statement of work, defined
  deliverables, list of associted activities and list of
  milestones.
Challenges in Scheduling and Estimating

   • Classic challenge is to complete a project within time
   and within budget
   • or rather, to schedule and to estimate!


   •The fact :
   - it is inexact process that it tries to predict the future.
   - it can never be accurate
   - most possible – be as close as possible
Summary
      •Failing to plan is planning to fail

      •Understanding the fundamental aspects is essential
      to ensure appropriate application of planning
      techniques.

"The plans were useless, but the planning
was indispensible."
Questions??? 
   He who ask is a fool for five minutes, but
      he who does not ask is a fool forever.
Tutorial
In a group of 3;

i)   Discuss the importance of scheduling in ensuring
     project success

ii) Discuss the challenges faced in project time
    management with reference to an existing case

More Related Content

What's hot

Roles and-responsibilities-project manager
Roles and-responsibilities-project managerRoles and-responsibilities-project manager
Roles and-responsibilities-project managerobsession56
 
Executing and Managing a Project
Executing and Managing a ProjectExecuting and Managing a Project
Executing and Managing a ProjectNishant Munjal
 
Project Management Silibus
Project Management SilibusProject Management Silibus
Project Management SilibusIzah Asmadi
 
Pmbok 4th edition chapter 2 - Project Life cycle and Organization
Pmbok 4th edition   chapter 2 - Project Life cycle and OrganizationPmbok 4th edition   chapter 2 - Project Life cycle and Organization
Pmbok 4th edition chapter 2 - Project Life cycle and OrganizationAhmad Maharma, PMP,RMP
 
project human resources management
project human resources managementproject human resources management
project human resources managementMohamed , PMP
 
Introduction to Software Project Management
Introduction to Software Project ManagementIntroduction to Software Project Management
Introduction to Software Project ManagementSaadi Jadoon
 
2.09 hr management 1
2.09 hr management 12.09 hr management 1
2.09 hr management 1reddvise
 
Strategies for successful engineering management
Strategies for successful engineering managementStrategies for successful engineering management
Strategies for successful engineering managementCarla Fair-Wright
 
Project mangement chp 1 12
Project mangement chp 1 12Project mangement chp 1 12
Project mangement chp 1 12Dreams Design
 
Pinto pm2 ch02
Pinto pm2 ch02Pinto pm2 ch02
Pinto pm2 ch02691966
 
Project initiation topic 2.5_project organization structure
Project initiation topic 2.5_project organization structureProject initiation topic 2.5_project organization structure
Project initiation topic 2.5_project organization structureRudreshSamant
 
PMP selected topics and ideas
PMP selected topics and ideasPMP selected topics and ideas
PMP selected topics and ideasAhmad Hamid
 
Pm deep dive the processes
Pm deep dive   the processesPm deep dive   the processes
Pm deep dive the processesNiraj Agarwal
 
Project Planning in Software Engineering
Project Planning in Software EngineeringProject Planning in Software Engineering
Project Planning in Software EngineeringFáber D. Giraldo
 
Chapter 3 Lecture Slides
Chapter 3 Lecture SlidesChapter 3 Lecture Slides
Chapter 3 Lecture Slidesdotesch
 

What's hot (20)

Roles and-responsibilities-project manager
Roles and-responsibilities-project managerRoles and-responsibilities-project manager
Roles and-responsibilities-project manager
 
Executing and Managing a Project
Executing and Managing a ProjectExecuting and Managing a Project
Executing and Managing a Project
 
Project Management Silibus
Project Management SilibusProject Management Silibus
Project Management Silibus
 
Pmbok 4th edition chapter 2 - Project Life cycle and Organization
Pmbok 4th edition   chapter 2 - Project Life cycle and OrganizationPmbok 4th edition   chapter 2 - Project Life cycle and Organization
Pmbok 4th edition chapter 2 - Project Life cycle and Organization
 
Spm lecture-3
Spm lecture-3Spm lecture-3
Spm lecture-3
 
project human resources management
project human resources managementproject human resources management
project human resources management
 
Introduction to Software Project Management
Introduction to Software Project ManagementIntroduction to Software Project Management
Introduction to Software Project Management
 
2.09 hr management 1
2.09 hr management 12.09 hr management 1
2.09 hr management 1
 
Project life cycle
Project life cycleProject life cycle
Project life cycle
 
Chapter 3
Chapter 3Chapter 3
Chapter 3
 
Strategies for successful engineering management
Strategies for successful engineering managementStrategies for successful engineering management
Strategies for successful engineering management
 
09 project human resources management pmbok 5th
09 project human resources management pmbok 5th09 project human resources management pmbok 5th
09 project human resources management pmbok 5th
 
Project manager
Project managerProject manager
Project manager
 
Project mangement chp 1 12
Project mangement chp 1 12Project mangement chp 1 12
Project mangement chp 1 12
 
Pinto pm2 ch02
Pinto pm2 ch02Pinto pm2 ch02
Pinto pm2 ch02
 
Project initiation topic 2.5_project organization structure
Project initiation topic 2.5_project organization structureProject initiation topic 2.5_project organization structure
Project initiation topic 2.5_project organization structure
 
PMP selected topics and ideas
PMP selected topics and ideasPMP selected topics and ideas
PMP selected topics and ideas
 
Pm deep dive the processes
Pm deep dive   the processesPm deep dive   the processes
Pm deep dive the processes
 
Project Planning in Software Engineering
Project Planning in Software EngineeringProject Planning in Software Engineering
Project Planning in Software Engineering
 
Chapter 3 Lecture Slides
Chapter 3 Lecture SlidesChapter 3 Lecture Slides
Chapter 3 Lecture Slides
 

Similar to Bpp 3213 lecture 1

2. PAE AcFn621 Ch-2 Principle ppt.pptx
2. PAE AcFn621 Ch-2 Principle ppt.pptx2. PAE AcFn621 Ch-2 Principle ppt.pptx
2. PAE AcFn621 Ch-2 Principle ppt.pptxProfDrAnbalaganChinn
 
DISE - Introduction to Project Management
DISE - Introduction to Project ManagementDISE - Introduction to Project Management
DISE - Introduction to Project ManagementRasan Samarasinghe
 
Project management in general and some methods
Project management in general and some methodsProject management in general and some methods
Project management in general and some methodsioan_dubar
 
human resource management for construction projects
 human resource management for construction projects human resource management for construction projects
human resource management for construction projectsSelf-employed
 
D1 l5 project management
D1 l5 project managementD1 l5 project management
D1 l5 project managementggwachha
 
Managing the information system project
Managing the information system projectManaging the information system project
Managing the information system projecta23ccb
 
Managing the information system project
Managing the information system projectManaging the information system project
Managing the information system projectalpha1unity
 
Chapter 1-Project and Construction project.pptx
Chapter 1-Project and Construction project.pptxChapter 1-Project and Construction project.pptx
Chapter 1-Project and Construction project.pptxteshome eshetu
 
Project Management Course (70H) in English
Project Management Course (70H) in EnglishProject Management Course (70H) in English
Project Management Course (70H) in EnglishDong-Hwan Han, Ph.D.
 
Overview of Project management lecture 2
Overview of Project management lecture 2Overview of Project management lecture 2
Overview of Project management lecture 2Abeera Malik
 
AASP_SUMMIT2015_Project_Mgt.pptx
AASP_SUMMIT2015_Project_Mgt.pptxAASP_SUMMIT2015_Project_Mgt.pptx
AASP_SUMMIT2015_Project_Mgt.pptxaravind Guru
 
Project Management Professional (PMI) Study Guide
Project Management Professional (PMI) Study GuideProject Management Professional (PMI) Study Guide
Project Management Professional (PMI) Study Guidemsrakesh
 
Project management professional
Project management professionalProject management professional
Project management professionalRaynaITSTEP
 
Project management
Project managementProject management
Project managementobsession56
 
Project management
Project managementProject management
Project managementTom Thand
 
Project Management
Project ManagementProject Management
Project ManagementAtif Rehmat
 

Similar to Bpp 3213 lecture 1 (20)

pmppgoav14.ppt
pmppgoav14.pptpmppgoav14.ppt
pmppgoav14.ppt
 
2. PAE AcFn621 Ch-2 Principle ppt.pptx
2. PAE AcFn621 Ch-2 Principle ppt.pptx2. PAE AcFn621 Ch-2 Principle ppt.pptx
2. PAE AcFn621 Ch-2 Principle ppt.pptx
 
system analysis and design Class 3
system analysis and design Class 3system analysis and design Class 3
system analysis and design Class 3
 
DISE - Introduction to Project Management
DISE - Introduction to Project ManagementDISE - Introduction to Project Management
DISE - Introduction to Project Management
 
Project management in general and some methods
Project management in general and some methodsProject management in general and some methods
Project management in general and some methods
 
human resource management for construction projects
 human resource management for construction projects human resource management for construction projects
human resource management for construction projects
 
Chap04
Chap04Chap04
Chap04
 
D1 l5 project management
D1 l5 project managementD1 l5 project management
D1 l5 project management
 
Managing the information system project
Managing the information system projectManaging the information system project
Managing the information system project
 
Managing the information system project
Managing the information system projectManaging the information system project
Managing the information system project
 
Chapter 1-Project and Construction project.pptx
Chapter 1-Project and Construction project.pptxChapter 1-Project and Construction project.pptx
Chapter 1-Project and Construction project.pptx
 
Project Management Course (70H) in English
Project Management Course (70H) in EnglishProject Management Course (70H) in English
Project Management Course (70H) in English
 
Spm lecture-2
Spm lecture-2Spm lecture-2
Spm lecture-2
 
Overview of Project management lecture 2
Overview of Project management lecture 2Overview of Project management lecture 2
Overview of Project management lecture 2
 
AASP_SUMMIT2015_Project_Mgt.pptx
AASP_SUMMIT2015_Project_Mgt.pptxAASP_SUMMIT2015_Project_Mgt.pptx
AASP_SUMMIT2015_Project_Mgt.pptx
 
Project Management Professional (PMI) Study Guide
Project Management Professional (PMI) Study GuideProject Management Professional (PMI) Study Guide
Project Management Professional (PMI) Study Guide
 
Project management professional
Project management professionalProject management professional
Project management professional
 
Project management
Project managementProject management
Project management
 
Project management
Project managementProject management
Project management
 
Project Management
Project ManagementProject Management
Project Management
 

More from Saddan Juhari

Wk 4 technology life cycle
Wk 4   technology life cycleWk 4   technology life cycle
Wk 4 technology life cycleSaddan Juhari
 
Wk 3 critical factors in managing technology
Wk 3   critical factors in managing technologyWk 3   critical factors in managing technology
Wk 3 critical factors in managing technologySaddan Juhari
 
Wk 2 role of technology
Wk 2   role of technologyWk 2   role of technology
Wk 2 role of technologySaddan Juhari
 
Wk 1 technology mgmt.
Wk 1   technology mgmt.Wk 1   technology mgmt.
Wk 1 technology mgmt.Saddan Juhari
 
Chapter 4 balancing stakeholders
Chapter 4   balancing stakeholdersChapter 4   balancing stakeholders
Chapter 4 balancing stakeholdersSaddan Juhari
 
Chapter 2b project stakeholder management process
Chapter 2b   project stakeholder management processChapter 2b   project stakeholder management process
Chapter 2b project stakeholder management processSaddan Juhari
 
Chapter 2a project stakeholder management process
Chapter 2a   project stakeholder management processChapter 2a   project stakeholder management process
Chapter 2a project stakeholder management processSaddan Juhari
 
Chapter 1 -_intro_to_project_stakeholder_management[1]
Chapter 1 -_intro_to_project_stakeholder_management[1]Chapter 1 -_intro_to_project_stakeholder_management[1]
Chapter 1 -_intro_to_project_stakeholder_management[1]Saddan Juhari
 

More from Saddan Juhari (9)

Bpp 3213 lecture 2
Bpp 3213 lecture 2Bpp 3213 lecture 2
Bpp 3213 lecture 2
 
Wk 4 technology life cycle
Wk 4   technology life cycleWk 4   technology life cycle
Wk 4 technology life cycle
 
Wk 3 critical factors in managing technology
Wk 3   critical factors in managing technologyWk 3   critical factors in managing technology
Wk 3 critical factors in managing technology
 
Wk 2 role of technology
Wk 2   role of technologyWk 2   role of technology
Wk 2 role of technology
 
Wk 1 technology mgmt.
Wk 1   technology mgmt.Wk 1   technology mgmt.
Wk 1 technology mgmt.
 
Chapter 4 balancing stakeholders
Chapter 4   balancing stakeholdersChapter 4   balancing stakeholders
Chapter 4 balancing stakeholders
 
Chapter 2b project stakeholder management process
Chapter 2b   project stakeholder management processChapter 2b   project stakeholder management process
Chapter 2b project stakeholder management process
 
Chapter 2a project stakeholder management process
Chapter 2a   project stakeholder management processChapter 2a   project stakeholder management process
Chapter 2a project stakeholder management process
 
Chapter 1 -_intro_to_project_stakeholder_management[1]
Chapter 1 -_intro_to_project_stakeholder_management[1]Chapter 1 -_intro_to_project_stakeholder_management[1]
Chapter 1 -_intro_to_project_stakeholder_management[1]
 

Bpp 3213 lecture 1

  • 1. BPP 3213 PROJECT ESTIMATION AND SCHEDULING Lecture 1 Fundamentals of Project Planning Nurhaizan Mohd Zainudin (ext 2275) Sept, 2012 Faculty of Technology University Malaysia Pahang Jane Doe & Jane Doe
  • 2. Introduction •Lecture Outline • Introduction to Course • Focus of the Course • Course outline • Course Outcome • Course Assessment • References • Major Assignment • Purpose of this lecture / Lesson outcome
  • 3. Introduction (cont’d) •Lecture Content •FUNDAMENTALS OF PROJECT PLANNING • Project Life Cycle • Project Master Plan • Project Organization Structure and Responsibilities • Scope and Work • Planning and Scheduling Charts • Project Management System • Challenges in Scheduling and Estimating • Conclusion • Tutorial
  • 5. Focus of the Course • Projects are too complex for a simple ‘back of the envelope’ planning • Thus, the need for consistent and disciplined thinking in a systematic manner • Scheduling and estimating tools and techniques help in allocating and managing cost and resources effectively
  • 6. Course Outline 1. Fundamentals of Project Planning 2. Network Scheduling and Precedence Diagram Method 3. PERT, CPM, GERT, and GANTT Chart 4. Scheduling With Resource Constraints 5. Fundamentals Cost Estimating and Budgeting 6. Tracking the Project 7. Project Control
  • 7. Course Outcome •Understand the importance of scheduling and estimation in ensuring the successful of project •Apply Precedence Diagram Method (PDM) in determining relationship between tasks •Use appropriate techniques for resource estimation for a project planning
  • 8. Assessment Group Assignment (Project) 30% Individual Assignment 10% Tutorial 10% Test ( 2 tests) 10% Final Exam 40% Total 100%
  • 9. References Main References: 1. Kerzner, Harold. 2007. Project Management: A System Approach to Planning, Scheduling and Controlling. John Wiley and Sons. 8th Edition. 2. Nicholas, John M. 2004. Project Management for Business and Engineering: Principles and Practice. Elsevier Butterworth-Heinemann. 2nd Edition.
  • 10. Purpose of this lecture To better understand: • Project life cycle, master plan, organization structure, and scope and work • Planning and scheduling charts • Project management system • Challenges
  • 12. Project Management Project Project Scope Project Quality Integration Management Management Management Project Time Project Cost Project Human Management Management Resource Management Project Project Risk Project Communication Management Procurement Management Management
  • 13. Introduction • Project Planning: -A discipline stating how to complete a project -Certain timeframe, defined stages, designated resources • Estimating (PMBOK 2004): - Developing an approximation of resources costs needed to complete each schedule. -Considering the possible cause of variation of cost estimates - Identifying and considering various costing alternatives
  • 14. Introduction (cont’d) •Scheduling: -A process converting a project plan into time- based graphic presentation - Given information on available resources and time constraints - 3 basic steps
  • 15. Project Life Cycle • Projects are subdivided into several manageable phases • Phases that connect the beginning of a project to its end - Concept and initiation phase - Design and development phase - Implementation / construction phase - Commissioning and hand over phase • Generally defines: - What are the technical work to do in each phase? -When the deliverables are to be generated? - Who involved in each phase?
  • 16. Characteristic of Project Life Cycle PMBOK 2008 Starting Organising Carrying out the work Closing the and the project preparing project Cost and Staffing Level Project Management Project Project Management Accepted Charter Plan Deliverables Output Time
  • 17. Characteristic of Project Life Cycle (cont’d) PMBOK 2008 • Phases are sequential • Cost and staffing levels: - Low at start - Peak during intermediate - Drop rapidly when project approaching completion • Level of uncertainty: - Highest at start, risk of failing is greatest - Gets better as the project continues • Stakeholder ability to influence: -Highest at start - Gets lower as the project continues
  • 18. Characteristic of Project Life Cycle (cont’d) PMBOK 2008
  • 19. Planning for a Project...
  • 20. Project Master Plan • A comprehensive document that sets out overall strategy for a project •Incorporates several related sub plans - Risk management plan - Staffing management plan - Scope management plan - etc • A planning tool that provides a detailed guidance • The big picture for a project
  • 21. Project Master Plan (cont’d) • A good project plan will provide: • A roadmap everyone in the team can follow with clear milestones • A realistic project timescale • Details of resource requirements • Validation of estimated cost • Identification of task slippage • Early warning of problems
  • 22. Organization Structure • Projects are performed by people, managed by people • Organization structure reflects the project’s needs, the team’s needs, and the individual needs • Identifies relationships between various parties, lines of authority & lines of communication
  • 23. Organization Structure (cont’d) • It considers: i) Project team -Relationship of PM & other team members ii) Project interfaces -Communication of PM with internal & external s/holders iii) Matrix organization structure -Temporary project lines of responsibility iv) Responsibility Matrix - Development of schedule bar chart, links work to the responsible person
  • 24. Project Organization Structure Functional Organization Structure • Traditional organization structure • Based on subdivision • ‘Wedding Cake’ corporate structure • Advantages: - Provide a home for technical expertise and good support -High degree of flexibility - Lines of communication is short and well established - Clearly defined responsibility and authority within departments
  • 25. Project Organization Structure (cont’d) Functional Organization Structure (cont’d) • Disadvantages: - No single point of responsibility - No formal lines of communication - Inadequately defined responsibilities for external coordination - Departmental work takes priority to project work - Not effective for multi-project environment
  • 26. Project Organization Structure (cont’d) Functional Organization Structure (cont’d) General Manager Civil Structural Mechanica Procurement Manage Manager l Manager r Manager Supervisor Supervisor Supervisor Administrato Tradesman Tradesman Tradesman r
  • 27. Project Organization Structure (cont’d) Matrix Organization Structure • Mathematical matrix topology – vertical and horizontal lines of responsibility and authority • Vertical lines: functional departments • Horizontal lines : project • Variants: - co-ordination matrix (weak, nearest to traditional functional hierarchy) - overlay matrix (balanced, commonest) - secondment matrix (strong, nearest to pure project structure)
  • 28. Project Organization Structure (cont’d) Matrix Organization Structure (cont’d) •Advantages: - Clear single point responsibility – Project Manager - Higher degree of resource utilization - Shared capital cost between projects and functional departments - Good flow of information • Disadvantages - Complex and difficult to understand - More communication links required - Dual responsibility and authority leads to confusion - Cost of running the matrix organization is higher
  • 29. Project Organization Structure (cont’d) Matrix Organization Structure (cont’d) General Manager Civil Structural Mechanical Procurement Manager Manager Manager Manager Project Lines of Project Responsibility Manage r (1) Project Manage r (2) Two Bosse s Supervisor Tradesman
  • 30. Project Organization Structure (cont’d) Pure project Organization Structure • All departments are dedicated to the project • Self-contained unit • Project manager has high level of authority to manage and control •Advantages: - Project manager has full line authority - Increased commitment and loyalty - Promotes effective communication - Lines of communication is shorter
  • 31. Project Organization Structure (cont’d) Pure project Organization Structure (cont’d) • Disadvantages: - Duplication effort if numbers of project running concurrently - Divorces from functional departments – sever cross flow of information and ideas - Cannot offer continuity of employment – lose valuable experience and information
  • 32. Project Organization Structure (cont’d) Pure project Organization Structure (cont’d) Project Manager Mechanical Structural Manager Manager Mechanical Mechanical Structural Structural Foreman Supervisor Foreman Superviso r
  • 33. Project Management System • Types of software covering scheduling, cost control, resource allocation, quality management and documentation etc • Tasks or activities include: - Scheduling - calculating critical path - Providing information • Examples: -Microsoft Project - Prince2 - Primavera
  • 35. Planning and Scheduling Charts (cont’d) • Scheduling techniques to cope with complexities, masses of data and tight deadlines • Most common: - Gantt Chart or bar chart - Milestone Charts - Line of balance - Program Evaluation and Review Technique (PERT) - Arrow Diagram Method (ADM) or Critical Path Method (CPM) - Precedence Diagram Method (PDM) - Graphical Evaluation and Review Technique (GERT)
  • 36. Scope and Work Definition Milestone Schedule (PMBOK 3 rd Ed) Milestone is a significant point of event in the project. Schedule Milestone means a significant event in the project schedule and have zero duration. Thus, Milestone Schedule is a summary-level schedule that identifies the major schedule milestone. Milestone schedule contains: - Project start date and end date - Other major milestone - Deliverables
  • 37. Scope and Work Definition (cont’d) Work Breakdown Structure (WBS) • An output/input • A deliverable-oriented hierarchical decomposition of work to be executed • To accomplish project objectives • Organizes and defines the total scope of work for the project work • Decomposed into work packages
  • 38. Scope and Work Definition (cont’d) Work Breakdown Structure (WBS) (cont’d) • WBS dictionary is a document describing each component in the WBS – description includes brief definition of statement of work, defined deliverables, list of associted activities and list of milestones.
  • 39. Challenges in Scheduling and Estimating • Classic challenge is to complete a project within time and within budget • or rather, to schedule and to estimate! •The fact : - it is inexact process that it tries to predict the future. - it can never be accurate - most possible – be as close as possible
  • 40. Summary •Failing to plan is planning to fail •Understanding the fundamental aspects is essential to ensure appropriate application of planning techniques. "The plans were useless, but the planning was indispensible."
  • 41. Questions???  He who ask is a fool for five minutes, but he who does not ask is a fool forever.
  • 42. Tutorial In a group of 3; i) Discuss the importance of scheduling in ensuring project success ii) Discuss the challenges faced in project time management with reference to an existing case

Editor's Notes

  1. The project environment has a direct effect on the project itself and how the project should be managed. Projects are influenced by a wide range of stakeholders and issues.
  2. Project planning divides activity into:Setting objectives (these should be measurable)Identifying deliverablesPlanning the schedulesMaking supporting plans ( related to HR, Communication, & Risk mgt)
  3. As per PMBOK…because projects are unique and certain degree of risk, company performing projects will generally subdivide projects into several project phases; these project phases are called the project life cycle. Project life cycle is a framework a structure for a project which is a subdivision of a project. The project is subdivided into manageable phases in order to have a smooth running of a project. The scope of work is subdivided into sequential project phases.Project life cycle provides better management control to the company performing projects.
  4. Life cycle is not to be confused with Project Management processes
  5. As per PMBOK…because projects are unique and certain degree of risk, company performing projects will generally subdivide projects into several project phases; these project phases are called the project life cycle. Project life cycle is a framework a structure for a project which is a subdivision of a project. The project is subdivided into manageable phases in order to have a smooth running of a project. The scope of work is subdivided into sequential project phases.Project life cycle provides better management control to the company performing projects.
  6. Key stakeholders on every project include Customer/user. The person or organization that will use the project’s product. There may be multiple layers of customers. For example, the customers for a new pharmaceutical product can include the doctors who prescribe it, the patients who take it and the insurers who pay for it. In some application areas, customer and user are synonymous, while in others, customer refers to the entity acquiring the project’s product and users are those who will directly utilize the project’s product.Sponsor. The person or group that provides the financial resources, in cash or in kind, for the project.Portfolio managers/portfolio review board. Responsible for the high-level governance of a collection of projects or programs.Program managers, responsible for managing related projectsPMO. If it exists in the performing organization, the PMO can be a stakeholder if it has direct or indirect responsibility for the outcome of the projectProject manager. The person responsible for managing the project.Project team, comprised of the project manager, project management team, and other team membersFunctional managers, are key individuals who play a management role within an administrative or functional area of the businessOperation management, are individuals who have a management role in a core business areaSellers/business partners, are external companies that enter into a contractual agreement to provide components or services necessary for the project.
  7. Project manager & team members relationship is dynamic as seconded members move in & out in the project officeInternal contact ( functional managers and other internal departments) while external contact (client and outsides companies e.g. contractor & suppliers)It underlies the functional lines of responsibility, outlines the relationship between PM, functional managers and their subordinates
  8. Functional structure offers excellent facilities within its own department but lacking in interaction with other department when it comes to multi disciplined scope of work.Matrix structure on the other hand offers an interaction of both functional and project interests.
  9. On multi-disciplined projects employees need to communicate at operation level. Where lines of responsibility intersect, it shows people to people contact thus shorter formal lines of communication
  10. Milestone can occur at any point throughout the project. Specifically refer to significant or substantive point, time, or event in the life cycle. Typically refer to point at which large or significant events have completed and new phase or phases are set to begin.
  11. Input for Procurement Planning, Activity definitionOutput for creating WBS activity
  12. Input for Procurement Planning, Activity definitionOutput for creating WBS activity
  13. Besides managing day to day activities, integrating of project teams and project stakeholders, anticipating problems, solving the problems and making decisions are fundamental.