Project Planning

by Professor Richard Harris Institute of Information Sciences and Technology

Lecture Outline
The functions involved in Project Management. The network planning approach to project management

Objectives
You will know the steps involved in managing a project. You will be able to prepare a Work Breakdown Structure. You will be able to draw a Gantt chart for a given situation. You will be able to draw a Network Diagram for a sample project.

What Gets Managed?

Project management is a process in which many different things get managed simultaneously. Typically in project management we are involved in the following types of management:
Scope management Time management Human resource management Cost management Quality management Communication management

During this course we shall be attempting to cover most of these factors.

Functions Involved in Planning and Controlling Projects

Establish the project objectives Defining the work Determining the work timing Establishing the resource availability and requirements Establishing a cost baseline Evaluating the baseline plan Optimising the baseline plan Freezing the baseline plan Tracking the progress of the work Tracking the actual costs Comparing the progress and costs to the baseline plan Evaluating the performance Forecasting, analysing and recommending corrective action.

Phases of Project Management

We have said that project management involves a specific time period. This time period consists of three primary phases. (These phases were briefly summarised during the previous lecture when we discussed client interactions.) The proposal Implementation Close-out Planning Execution

We shall now consider the planning and control functions in a little more detail.

Establishing Project Objectives - 1

This feature of the planning and control process is often, sadly, neglected. As we indicated in the first lecture, it is absolutely critical to ensure that when you are a consultant undertaking a project you have clearly identified the objectives of the project and that you have made sure that there aren't any "didn't we tell you?" problems. These objectives should be defined in terms of time budget technical requirements

Defining the Work

In developing a baseline plan, you need to
Define the actual work to be done Define the resources and budget Establish the timing for the work

The success of the whole project planning effort is dependent upon the quality of the work-scope definition. The standard way to define the work-scope is the work breakdown structure (WBS). The WBS is similar to the organisation chart for a company. In this approach, the project objectives are placed at the top of the diagram as deliverable end items. Each top level segment is then further subdivided into smaller groups.

Work Breakdown Structure

Telephone Network Measurement Planning Analyse data Produce a forecast Determine circuit requirements Acquire land Clear path Dig trench Building Construction

Select site Set up recorder Test system Obtain data

Defining the Work Timing - 1

We have seen that part of the process of defining the objectives involves establishing of the overall time parameters of the project. These time objectives should be processed into a project milestone schedule or "PMS". The milestone schedule provides guidance by defining the time windows into which the task scheduling will attempt to fit. The objective of the PMS is to produce a oneThe objective of the PMS is to produce a onepage, clearly readable, management level page, clearly readable, management level document that presents the schedule document that presents the schedule guidelines for the project. guidelines for the project.

Defining the Work Timing - 2

In general, the level of detail provided by the PMS should not exceed about 40 lines items. Once you have the list of tasks and the milestone schedule you can begin to develop the task schedule. There are many different ways of representing the work timing, however, one of the most popular techniques is to use the Gantt Chart which is a useful graphical approach and many PC based software packages are able to display such charts. An example of a Gantt Chart is shown in the next slide.

Gantt Chart
Day 1 Day 2 Day 3

Task #1 Task #2 Task#3 Task #4 . Task #37 Task #38 Task#39 Task #40

. .

Establishing a Cost Baseline

In order to control costs, you establish a work-scopeoriented budget. This is usually done at the task level, but it can sometimes be done at the next higher level. This budget can be determined by establishing the resources required for each task
Fixed costs Cost per resource per unit time

(Note that some software packages are able to produce these budgets automatically after you have entered the fixed and variable cost data.)

Evaluating the Baseline Plan

Once you have undertaken the steps outlined thus far, you have determined what is known as a baseline plan. You must now decide whether the plan which you have generated is what is required to meet the objectives of the project in terms of:
Cost Timing Resources

In general, you will find that your plan requires some adjustment.

Optimising the Baseline Plan

At this stage, computer software is invaluable for trying out "what-if" studies to establish the earliest starting and finishing times so that the baseline plan can be optimised. Some of the tools which we shall describe in more detail later in the course can be used here to do the fine tuning required. The main concern here is to ensure that the baseline plan meets the overall project objectives and that the project team is able to realistically achieve the schedule which has been developed.

Freezing the Baseline Plan

Assuming that you want to exercise control over the project, you should now "freeze" the baseline plan so that it can be used as a benchmark as the project progresses. Some project management software packages allow the user to save several different scenarios / target schedules and you can then monitor the progress of the project and compare them with the different scenarios to determine which is the most realistic one over time.

Tracking the Work Progress

Once all the preceding steps have been performed, you can go on to the execution phase of the project implementation. The tracking process involves:
Recording how much work has been done What resources were utilised What costs were incurred.

You should note the starting and finishing times of all tasks in the project. Note also that the monitoring process entails keeping track of any changes in the work-scope and changing the network plan to account for such changes.

Tracking the Costs

Once the work has started, you will need to track the costs which have been incurred. This means that ledgers should be set up both for cost commitments and for actual invoiced costs.

Comparing the Progress and Costs to the Baseline Plan

While it is important to track the progress of the project and the costs, project control actually consists of many additional steps that lead ultimately to corrective action directed at achieving the project objectives. You should collect progress data and match it against the target schedule. Two things should be monitored:
The progress completion dates of activities which were calculated to be on the critical path network as delays in these activities will put the project behind schedule. The progress of noncritical activities, since if enough of these activities fall behind then they may also have an impact on the project completion date.

Evaluating the Performance

Two primary measurements should be monitored:
Project completion date Project margin - the profit produced by the project.

Forecasting, analysing and recommending corrective action are natural extensions of the performance evaluation. Forecasting involves extrapolation of past performance, tempered by the latest knowledge and judgement.

Forecasting, Analysing and Recommending Corrective Action

Network Planning - 1
Now that we have established a framework for the process of project management, let us take a look at the area of network planning to see how it can be used to assist us in this task Network Planning:
is a management tool used for planning, scheduling and controlling projects that consist of many inter-related tasks or activities.

In 1958, the PERT (Program Evaluation and Review Technique) was developed for use in the planning of the US Navy's Polaris Submarine. In 1957, the Du Pont Company, in conjunction with Remington developed another network planning technique called CPM. We shall consider these techniques in detail later.

Network Planning - 2
At this stage, we shall be setting the scene for the later lectures on the PERT and CPM methods by defining some of the terminology and preparing some sample network diagrams. Network planning techniques are often compared with the Gantt or bar chart approach mentioned earlier. The network planning technique has major advantages over the bar chart method, viz:
The inter-relationships and dependencies between activities are more readily appreciated through the use of a network diagram. Planning and scheduling functions can be separated. However, with bar charts the scheduling must be done simultaneously with the planning.

Benefits of Network Planning

Implementation of network planning provides many benefits, such as: It provides a master plan for the project. Shows the inter-relationships for the project. Forces a global view of the project. Allows the user to plan his/her method of accomplishing the project. Takes uncertainties into account. Simulation of alternate plans is possible both in the planning and execution phases. Is a vehicle for reporting actual, expected and allowable progress. Forecasts when each task is expected to start and finish in order to achieve the project objectives on time. Points out the areas of a project that are behind schedule or in trouble, allowing scope for management by exception. Provides a quantitative basis for making decisions on replanning and controlling a project to alleviate critical areas. Aids in planning resource requirements, allocation and usage throughout the project.

Network Principles
Whenever we draw a network plan it is important to understand certain principles and definitions. We shall be discussing:
Activities Events Predecessor events Successor events Precedence relationships Loops Dummy activities Laddering Baselines Multiple Start and/or Finish events

Activities
An activity is defined as the expenditure of effort over some period of time on a particular part of a project. An activity is represented on a network diagram by an arrow.
Start Note: The length and slope of the line have no bearing on the duration or importance of the activity, unlike the bar chart approach. Activity Finish

Event
An event is the start or finish of an activity or group of activities. Events link activities together. An event does not consume time and therefore is considered to be an instant or point in time. Events are represented as circles on a network diagram:
Event 1 Activity A Event 2

Predecessor Event & Successor Event

The predecessor and successor events for the activity A are shown in the diagram below:
Event 1 Predecessor Event Activity A Event 2 Successor Event

Precedence Relationships
The diagram below indicates the basic network rule of the precedence relationship of one activity to another.
Activity A Activity B

The above diagram shows that activity B cannot be started until activity A has been completed. The diagram also shows that activities may be drawn in a series relationship.

Parallel Relationships
1
Activity A Activity C

3 2
Activity B

The above diagram shows a parallel relationship. Thus activities A and B can be performed more or less independently, but activity C cannot start until both A and B have been completed.

Loops
2 1 4 3

The above figure shows a loop. Loops are not allowed in network diagrams since they would portray an illogical path of activities which would endlessly repeat itself.

Dummy Activities - 1
This is a special type of activity which consumes zero time and is represented in a network diagram by a dashed line as shown in the figure below: Activity A 1 Activity B 2 Activity A 1 Activity B Incorrect 2 3 dummy

Dummy Activities - 2
A second use of a dummy activity is to improve the logical precedence relationships among the activities in the network.
Activity A Activity C dummy Activity B Activity D

Activities A and B can be done in parallel. Activity C can start when activity A is finished, but activity D can start only when both activities A and B are finished.

Laddering - 1
Sometimes it is found that a set of activities is repeated several times in a row. For example, while laying a communications cable, it is necessary to dig a trench, lay the cable and then backfill the trench. Assume that the project is to be performed in three sections and that there are three work crews each available to perform one function of the task. One solution is given below:
Section A Section B Section C Backfill Dig Cable Backfill Dig Cable Dig Cable Backfill

10

In this solution we have only one crew working at a time and the others are standing around.

Laddering - 2
But this is clearly impossible, since only one crew is available for each type of activity. If we note however, that once the trench has been dug in Section A, the cable laying crew can start on Section A while the digging crew start on Section B, etc...... An alternative solution would be to try and set up all three operations in parallel as shown in the next figure:
Section A

1 4 7

Dig

2 5 8

Cable

3 6 9

Backfill

Dig Section B

Cable

Backfill

10

Dig

Cable

Backfill

Section C

Laddering - 3
This observation leads to the following solution involving dummy activities leads to an optimal completion strategy:
1
Dig A

Section A

Cable A

3 4 5
Dig C

Backfill A

Dig B

Cable B

6 8

Backfill B

Cable C

Backfill C

10

The technique displayed above is known as laddering.

Baselines
In cases where there are many activity arrows with the same beginning and ending events it may start to become pretty messy! The baseline technique may be used to make your diagram a little neater!
2 1 3 4 5 1 2 3 4 2 3 1 4 5 3 4 5

1 2 5

Multiple Start and/or Finish Events

In many projects there is a single starting and finishing event. But in some cases there may be several independent parts of the project and this can lead to multiple finish points
For example, while if there is a research phase to the project then it may be found that there are several start events.

Drawing a Network Diagram

Once you have defined the objectives of the project, made a list of the tasks to be performed, you are ready to draw your network diagram. One approach to this is to use "Post-it" notes with the events written on them and for you to shuffle them around until they are in their correct precedence order. You should try and draw out any situations where:
Activities can be performed concurrently Activities cannot start until some other activity has been completed.

A Summary Network
Once the network diagram has been drawn, it is necessary to number all the events in the network so that each activity in the network can be identified by its predecessor-successor event number combination. Don't worry about the neatness of your diagram initially, you will often need to redraw it several times before reaching a point where the design can be "frozen".

Terms used in the Critical Path Method

Critical Path:
The chain of critical activities for the project. The longest path through the network.

Earliest Start:
This is the earliest time that an activity can start, from the beginning of the project.

Earliest Finish:
This is the earliest time that an activity can finish, from the beginning of the project.

Latest Finish:
This is the latest that an activity can finish, from the beginning of the project, without causing a delay to the completion of the project.

Latest Start:
This is the latest that an activity can start, from the beginning of the project, without causing a delay to the completion of the project.

Overview of CPM
A complete list of project activities. Precedence relationships among activities. Estimate of each activity's duration.

CPM

Processing

Estimated duration of the project. Identification of critical activities. Amount of slack for each activity.

CPM Example Designing An Information System

1
a=20

2
d=11

b=10

3 5

c=8

e=7 h=13

6 7

f=6

8
i=5

dummy g=12

Note the presence of the dummy activity here to indicate the precedence relationship. Length Path a-b-c-e-f 51 a-b-c-e-h-i 63* a-d-e-f 44 a-d-e-h-i 56 a-d-g-i 48 The path marked with * is the Critical Path

Determining Critical Path Parameters

1
a=20

2
d=11

b=10

3 5

c=8

e=7 h=13

6 7

f=6

8
i=5

dummy g=12

Using standard methods from CPM it is now possible to calculate the Earliest and Latest Finish times for each activity and determine the slack times. The results are summarised below: Activity a b c d e f g h i Latest Finish 20 30 38 38 45 63 58 58 63 Earliest Finish 20 30 38 31 45 51 43 58 63 Slack 0 0 0 7 0 12 15 0 0

Program Evaluation and Review Technique

The CPM analysis is not perfect! In particular, we note that it is very difficult to determine precisely the values required for the activity durations. The PERT method introduces the concepts of expected duration, pessimistic duration and optimistic duration. From these new concepts, the PERT approach is to assume that we can model the actual duration for an activity using a probability distribution called the Beta Distribution.