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
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
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
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
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
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.
Project planning divides activity into:Setting objectives (these should be measurable)Identifying deliverablesPlanning the schedulesMaking supporting plans ( related to HR, Communication, & Risk mgt)
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.
Life cycle is not to be confused with Project Management processes
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.
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.
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
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.
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
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.
Input for Procurement Planning, Activity definitionOutput for creating WBS activity
Input for Procurement Planning, Activity definitionOutput for creating WBS activity
Besides managing day to day activities, integrating of project teams and project stakeholders, anticipating problems, solving the problems and making decisions are fundamental.