The document provides information on planning and scheduling basics in project management, including defining a project, characteristics of a project, defining activities, setting up a project in Primavera P6, monitoring project progress, and performance measurement using earned value analysis. It also discusses lean construction concepts, and compares Primavera P3 and P6 project management software.

1. Planning and S h d li
Pl i d Scheduling
Basics
Jan 2008 Slide 1

2. Define a Project
● A project is a set of activities and their
associated information that constitutes a plan
for creating a product or service. A project
has a start date and finish date, WBS,
resource assignments and expenses. It can
also include risks, work documents and
project-specific codes and calendars.
Jan 2008 Slide 2

3. Characteristics of a Project
j
● 5 Aspects of a Project
▪ Schedule Resource Cost, Quality and Risk (HSE)
Schedule, Resource, Cost
● For a Project Management Software, It covers
▪ Schedule: Timeline (core)
▪ Resource: Man, Material, Plant
▪ Cost: Money y
▪ Risk: Identify, classify and quantify
● Life Span of a Project
▪ Planning: establish baseline when project starts
▪ Controlling: monitoring, updating during project
execution
ti
▪ Managing: changes, variations and revision
▪ Closing Out: Administrative closure documentation
closure,
Jan 2008 Slide 3

4. Define an Activity
- In SMART Way
● Specific: scope of work to be clearly defined
● Measurable: able to measure progress (%),
resource (MH) and cost ($)
● Achievable: realistic based on current
p
productivity
y
● Resource Availability: make ready for man,
material and plant
● Time-bound: have start and finish date
Jan 2008 Slide 4

5. Procedures to Set up a Project
● Add a project to EPS and assign one of OBS
● Set up project calendar, resource pool cost
calendar pool,
account, duration type, percent completion type
– Project environment
● Set up project WBS
● Add a list of activities
● Determine activity’s duration based on volume of
work, production rate and past work experience
● A i a WBS to activity
Assign t ti it
● Link activities
● All
Allocate resources t activity f
t to ti it from resource pool
l
● Allocate cost to activity
● S h d l project, review and establish b
Schedule j t i d t bli h baseline
li
Jan 2008 Slide 5

6. When a Project is on the
way…
● Record progress, manhour and cost and
update plan
● Analyze and report project status using
earned value method
● Revise baseline when there are substantial
changes and the programme can not reflect
the actual construction any more
● Manage changes
● Lean construction (last planner) application
Jan 2008 Slide 6

7. Performance Measurement
with E
ith Earned V l
d Value Method :
M th d
3 Parameters
● Planned Value PV (BCWS Budgeted Cost of
(BCWS,
Work Schedule): Budget x Schedule
completion % ( of original duration, time
p (% g ,
elapsed)
● Actual Cost AC (ACWP, Actual Cost of Work
( ,
Performed): Actual cost up to data date
● Earned Value EV (BCWP, Budgeted Cost of
( , g
Work Performed): Budget x Actual completion
% (PCT)
Jan 2008 Slide 7

8. Performance Measurement
with Earned Value Method :
Measurement Index
M tI d
● Schedule Variance (SV): SV=EV-PV > 0, ahead
of schedule as of statused date
● Cost Variance (CV): CV=EV-AC > 0, spending
less than planned as of statused date
Jan 2008 Slide 8

9. Performance Measurement
with Earned Value Method :
An Example
● Suppose we plan to finish an activity by June 1
with a b d t of $10 000 (PV or BCWS) It i now
ith budget f $10,000 BCWS). is
June 1 (data date, or measurement date), and we
have spend $9 000 (AC or ACWP) b t only 70%
h d $9,000 ACWP), but l
(PCT) of the work is complete (EV, or
BCWP=$10,000 70% $7 000) We
BCWP $10 000 x 70%=$7,000). W are not only t l
behind schedule (SV=EV-PV=$7,000-$10,000= -
$3,000), but
$3 000) b t over b d t (CV EV AC $7 000
budget (CV=EV-AC=$7,000-
$9,000= - $2,000.
Jan 2008 Slide 9

10. Manage Changes
● Record and control b d t changes
R d d t l budget h
● Record and track issues
● Define and monitor thresholds
● Manage risks: identify, categorize and
prioritize
● Catagorise and track activity-related work
products (deliverables) and documents
Jan 2008 Slide 10

11. Lean Construction Concept
p
● It is weekly execution plan
● Executed under trade-based production unit
trade based
● What Jobs to Execute?
▪ Constraints removed, resource sufficient, material on hand,
prerequisite work completed, working area available
● Production rate achievable
● Who is the last planner?
▪ Design team leader; Production unit head; Area superintendent;
Crew foreman
● Job Assignment
▪ No overloading. Prefer slightly under-loading to ensure smooth
work flow from production unit to production unit
unit.
● What if the plan fail?
▪ Find out root reasons. Go alternative work from the backlog
(backlog: incomplete make-ready works from previous period)
Jan 2008 Slide 11

12. Master Schedule, 6 weeks
Lookahead and Last Planner
Master Last Planner's Weekly
Schedule Lookahead Schedule Work Plan
CPM sequence, match
Purpose Baseline labor & resource Execution of ready activities
Detail Level Level 2 Level 3 Level 4
Entire
Time Frame project 6 Weeks Weekly
W1 past. Plan for W2 and
Data Date - W1 past. Plan for W2 to W6 W3
Certainty Low Middle High
Inherited from master
Constraints Existing schedule Removed
Jan 2008 Slide 12

13. About P i
Ab t Primavera Project
P j t
Management P6
Jan 2008 Slide 13

14. P6 Module Overview
Jan 2008 Global (Enterprise, root of EPS) -> EPS -> Project -> WBS -> Activity Slide 14

15. P6 Project Management
Module: Features
● Centralised database for all project data (data
resides on server)
id )
● Layout presentation and grouping based on
Work Breakdown Structure (WBS)
● Hierarchal structure on EPS, OBS, projects,
, ,p j ,
activities, resources and costs with codes and
values
Jan 2008 Slide 15

16. Before Add a Project,
Establish the Environment
● Enterprise Project Structure (EPS)
● Organisation Breakdown Structure (OBS)
● Global Calendars
● Resource pool
● Budget st uctu e
udget structure
● Coding structure like project code and activity
code (for filtering, grouping and data analysis)
( g, g p g y )
Jan 2008 Slide 16

17. EPS and OBS
d
● Enterprise Project Structure (EPS)
▪ Company-wide hierarchical project
breakdown Structure
● Organisation Breakdown Structure (OBS)
▪ Company-wide hierarchical responsible
Company wide
managers for the projects
Jan 2008 Slide 17

18. EPS and OBS: Work Side by
Side
OBS
PM1 PM2 PM3
PJ1
PJ2
PJ3
EPS
Jan 2008 Slide 18

19. EPS and OBS: An Example
OBS
Process Ci il
P Civil Piping E i
Pi i Equip Instru
I Electrical C
El i l Construc
ment ment tion
Project
A
Project
B
Project
oject
C
Project
j
D
EPS
Jan 2008 Slide 19

20. OBS Example
Jan 2008 Slide 20

21. EPS Example
Jan 2008 Slide 21

22. EPS -> Projects Example
Jan 2008 Slide 22

23. Work Breakdown Structure
(WBS)
● Deliverable-oriented hierarchy
● Continuation from EPS with project the
EPS,
highest level, followed by strings of
deliverables and decomposing to the bottom
level of work package
● Company wide standard WBS template Vs
Company-wide Vs.
customised project-specific WBS
● Pl an essential role i P6 It can b
Play ti l l in P6. be
assigned OBS, resource, budget and tracked
by
b earned value f th progress
d l for the
Jan 2008 Slide 23

24. WBS Example
Jan 2008 Slide 24

25. WBS Example
Jan 2008 Slide 25

26. Calendars
● Global
● Project specific
● p
WBS specific
● Resource specific
Jan 2008 Slide 26

27. Coding Structure: Resource
Code
Jan 2008 Slide 27

28. Coding Structure: Project
Code
Jan 2008 Slide 28

29. Resource and Role
● Resource includes
▪ People
▪ Material
▪ Plant
● Role
▪ Required personnel skill and proficiency
f
level -> Job title and function
●RResource calendar
l d
● Resource limit (availability) (MH / day)
● Resource cost ($ / MH)
Jan 2008 Slide 29

30. Resource and Role
Role
Role 1 Role 2 Role 3
(Job Title) (Job Title) (Job Title)
Resource 1
(Personnel )
Resource 2
(Personnel)
Resource 3
(Personnel)
Resource
Jan 2008 Slide 30

31. Resource Example
Jan 2008 Slide 31

32. Role Example
Jan 2008 Slide 32

33. Budget and Cost
g
● Top down approach: for upper management
Top-down
● Bottom-up approach: for accurate estimate
● B d t (total) and spending plan (
Budget (t t l) d di l (monthly
thl
distribution)
●RResource di ti
dictionary and cost account
d t t
● Budgeted cost=Budgeted unit (man-hour) x
Price
P i per unit ($/MH) f each activity
it for h ti it
● Roll up to Project, EPS or WBS level
Jan 2008 Slide 33

34. Cost Account Example
Jan 2008 Slide 34

35. Summary
Project- Resource
Global EPS Node specific -specific Remarks
Level 1 is project. Level
2 and down are
deliverables. The
lowest level is the work
WBS package (or activity)
Resource
Cost
Calandar
Layout
Global (Enterprise, root node of EPS) -> EPS -> Project -> WBS -> Work
Package or Activities
Jan 2008 Slide 35

36. P3 Vs. P6
Jan 2008 Slide 36

37. P3 Vs. P6
P3 P6 Remarks
Project based project Enterprise-wide project
Scope management
a age e management
a age e
Project Multiple (EPS), Global Hierarchical Enterprise Project Structure
Structure Single (Enterprise) (EPS)
Work Project managers for Hierarchical Organisation Breakdown
Reposibility Project manager multi-projects. OBS. Structure (OBS)
Level 1: project; Level 2 and down:
Have more weight deliverables (measurable products and
WBS Optional than P3 services); Lowest Level: Work package
User Usually single user Multiple users
PC based 16-bit Server based Oracle For standalone, use MS SQL Server
Database Btrieve database or MS SQL server Desktop Engine (MSDE)
File StructureMultiple files Single file (.xer)
PC based.
Programme and data Database on server;
Architecture residing on PC Programme on station
Have less weight than Part of category, grouping and filtering
Activity Code Main features P3 function replaced by EPS
Driven with * before an
Predesessor predesessor Solid relationship line