Bpp 3213 lecture 1


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  • 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.
  • Bpp 3213 lecture 1

    1. 1. BPP 3213 PROJECT ESTIMATION AND SCHEDULINGLecture 1 Fundamentals of Project Planning Nurhaizan Mohd Zainudin (ext 2275) Sept, 2012 Faculty of Technology University Malaysia Pahang Jane Doe & Jane Doe
    2. 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. 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
    4. 4. Time Management...
    5. 5. Focus of the Course• Projects are too complex for a simple ‘back ofthe envelope’ planning• Thus, the need for consistent and disciplinedthinking in a systematic manner• Scheduling and estimating tools and techniqueshelp in allocating and managing cost andresources effectively
    6. 6. Course Outline1. Fundamentals of Project Planning2. Network Scheduling and Precedence Diagram Method3. PERT, CPM, GERT, and GANTT Chart4. Scheduling With Resource Constraints5. Fundamentals Cost Estimating and Budgeting6. Tracking the Project7. Project Control
    7. 7. Course Outcome•Understand the importance of scheduling andestimation in ensuring the successful of project•Apply Precedence Diagram Method (PDM) indetermining relationship between tasks•Use appropriate techniques for resourceestimation for a project planning
    8. 8. AssessmentGroup Assignment (Project) 30%Individual Assignment 10%Tutorial 10%Test ( 2 tests) 10%Final Exam 40%Total 100%
    9. 9. ReferencesMain 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. 10. Purpose of this lectureTo better understand:• Project life cycle, master plan, organizationstructure, and scope and work• Planning and scheduling charts• Project management system• Challenges
    11. 11. Scheduling...
    12. 12. Project ManagementProject Project Scope Project QualityIntegration Management ManagementManagementProject Time Project Cost Project HumanManagement Management Resource ManagementProject Project Risk ProjectCommunication Management ProcurementManagement Management
    13. 13. Introduction• Project Planning:-A discipline stating how to complete a project-Certain timeframe, defined stages, designatedresources• Estimating (PMBOK 2004):- Developing an approximation of resources costsneeded to complete each schedule.-Considering the possible cause of variation ofcost estimates- Identifying and considering various costingalternatives
    14. 14. Introduction (cont’d)•Scheduling:-A process converting a project plan into time-based graphic presentation- Given information on available resources andtime constraints- 3 basic steps
    15. 15. Project Life Cycle• Projects are subdivided into several manageablephases• Phases that connect the beginning of a project to itsend- 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. 16. Characteristic of Project Life Cycle PMBOK 2008 Starting Organising Carrying out the work Closing the and the project preparing project Cost and Staffing LevelProjectManagement Project Project Management Accepted Charter Plan DeliverablesOutput Time
    17. 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. 18. Characteristic of Project Life Cycle (cont’d) PMBOK 2008
    19. 19. Planning for a Project...
    20. 20. Project Master Plan• A comprehensive document that sets outoverall 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 detailedguidance• The big picture for a project
    21. 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. 22. Organization Structure• Projects are performed by people, managed bypeople• Organization structure reflects the project’sneeds, the team’s needs, and the individual needs• Identifies relationships between variousparties, lines of authority & lines of communication
    23. 23. Organization Structure (cont’d)• It considers:i) Project team-Relationship of PM & other team membersii) Project interfaces-Communication of PM with internal & externals/holdersiii) Matrix organization structure-Temporary project lines of responsibilityiv) Responsibility Matrix- Development of schedule bar chart, links work to theresponsible person
    24. 24. Project Organization StructureFunctional Organization Structure• Traditional organization structure• Based on subdivision• ‘Wedding Cake’ corporate structure• Advantages:- Provide a home for technical expertise and goodsupport-High degree of flexibility- Lines of communication is short and wellestablished- Clearly defined responsibility and authority withindepartments
    25. 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. 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. 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. 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. 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. 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. 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. 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. 33. Project Management System• Types of software covering scheduling, costcontrol, resource allocation, quality management anddocumentation etc• Tasks or activities include:- Scheduling- calculating critical path- Providing information• Examples:-Microsoft Project- Prince2- Primavera
    34. 34. Planning and Scheduling Charts
    35. 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. 36. Scope and Work DefinitionMilestone Schedule (PMBOK 3 rd Ed)Milestone is a significant point of event in the project.Schedule Milestone means a significant event in theproject schedule and have zero duration.Thus, Milestone Schedule is a summary-levelschedule that identifies the major schedule milestone.Milestone schedule contains:- Project start date and end date- Other major milestone- Deliverables
    37. 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. 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. 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. 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 planningwas indispensible."
    41. 41. Questions???  He who ask is a fool for five minutes, but he who does not ask is a fool forever.
    42. 42. TutorialIn a group of 3;i) Discuss the importance of scheduling in ensuring project successii) Discuss the challenges faced in project time management with reference to an existing case