Project Initiation

*Project Selection (based upon commercial or non-commercial considerations) *Project Charter (authorization) *Project Scope Statement

What is Project Planning ?

It is complete road-map to go from point A to B.
Project planning is a rational determination of how to initiate, sustain, and terminate a project Project planning starts with the development of a vision - the ability to see something that is invisible to others.

Why Plan a Project ?

To eliminate or reduce uncertainty

To improve efficiency of the operation To obtain a better understanding of the objectives

To provide basis for monitoring and controlling work

Project Planning Considerations

Project planning is much wider activity with following key considerations

Cost estimating and budgeting

Technological options Specification of deliverables Resources availability Organizational strategy and structure

Information and control system

Risk Identification, and so on.

Project Implementation
Hire people, build teams and establish offices and systems Procure Materials, Equipment etc. Teams work with material and equipment Verify performance

Modify, as required.

Monitoring, Control and Evaluation

Discrepancies are called variances

The acceptable levels of variance should be determined at the outset of the project EVA
Difference between;

Monitoring
Control

Evaluation

Close/Termination
Exit Strategy (Donors are Extremely Interested)

Train functional personnel, transfer responsibility Transfer materials, release resources

Sustainability Aspects

Warranty/Guarantee

PROJECT PLANNING TECHNIQUES

Work Breakdown Structure (WBS)

Network Diagrams/CPM/PERT/Crashing/

Resource Levelling etc.

Gantt Chart Earned Value Analysis etc.

Work Breakdown Structure

The Work Breakdown Structure (WBS)

is a deliverable oriented grouping of the

project components (products/services)

which organizes and defines the total

project scope.

Work Breakdown Structure

Management tool for subdividing the work into logical components. Hierarchical structure that shows relationships of elements to each other and to the overall contract. Organizes work into short manageable tasks. Basis for cost and progress planning and reporting.

EXAMPLE of WORK BREAKDOWN STRUCTURE

Project Level Area Level
Area A 01.00 Construction Project

Area B 02.00

Group Level

Civil Construction A 01.01

Electromechanical A 01.02 Electrical and control 01.02.01 Piping 01.02.02 Equipment 01.02.03 Preparation Tests 01.02.04

Civil Construction B 02.01

Electromechanical B 02.02

WorkPackage Level

Earthwork 01.01.01 Foundations and Structures 01.01.02 Architectural Finishes 01.01.03

Earthwork 02.01.01 Foundations and Structures 02.01.02 Architectural Finishes 02.01.03

Electrical and Control 02.02.01 Piping 02.02.02 Equipment 02.02.03 Preparation Tests 02.02.04

BUILDING A HOUSE

CONSTRUCTION OF HOUSE

OUT BUILDINGS

LAND SCAPING GARDEN

CIVIL

CARTENTER/ PLUMBER

ELECTRIC/ GARAGE PAINTERS

DRIVE GREEN WAY HOUSE GARDEN

FENCE

GROUND

FOUNDATIONS

WALLS

ROOF

DOORS/ WINDOW

BIC PLUMBING

WIRING PAINTING

FINISHING

EXAMPLE OF WORK BREAKDOWN STRUCTURE

01.00 Area A

01.01 Civil Construction A

01.01.01 Earthwork A

01.01.02 Foundation and structures A

01.01.03 Architectural Finishes A 01.02 Electromechanical A 01.02.01 Electrical and Control A 01.02.02 Piping A 01.02.03 Equipment A 01.02.04 Preparation Tests A

 100% Rule. If not included in WBS, it is not in scope. Planned outcomes and deliverables, not planned activities

Not list of work or activities, but classification or

grouping of deliverables

Mutually exclusive elements

Progressive elaboration, or Rolling wave planning.

Work Breakdown Structure

Trip to Boundary Waters Arrange Travel Get Equipment Plan Meals Prepare Budget Plan for Emergencies Plan Activities

Schedule Flights

Contact Outfitter

Bring cooking gear

Assign Budget Person

Obtain emerg. #s

Bring Cards

Rent Van

Rent canoes

Freeze dry food

Get deposits

Arrange contact

Bring Joke book

Arrange Motel

Rent Tents

Prepare 7 breakfasts

Retain Receipts

Bring emerg. flares

Bring scotch

Schedule return flights

Bring Sleeping Bags

Prepare 7 lunches

Pay for supplies

Bring two first aid kits

Bring Fishing Gear Bring lights and waterproof matches

Prepare 6 dinners

Close-out trip

Work Breakdown Structure

Trip to Boundary Waters Arrange Travel Get Equipment Plan Meals Prepare Budget Plan for Emergencies Plan Activities

Schedule Flights

Contact Outfitter

Bring cooking gear

Assign Budget Person

Obtain emerg. #s

Bring Cards

Rent Van

Rent canoes

Freeze dry food

Get deposits

Arrange contact

Bring Joke book

Arrange Motel

Rent Tents

Prepare 7 breakfasts

Retain Receipts

Bring emerg. flares

Bring scotch

Schedule return flights

Bring Sleeping Bags

Prepare 7 lunches

Pay for supplies

Bring two first aid kits

Bring Fishing Gear Bring lights and waterproof matches

Prepare 6 dinners

Close-out trip

Work Breakdown Structure

Trip to Boundary Waters Arrange Travel Get Equipment Plan Meals Prepare Budget Plan for Emergencies Plan Activities

Schedule Flights

Contact BW Outfitter

Bring cooking gear

Assign Budget Person

Obtain emerg. #s

Bring Cards

Rent Van

Rent canoes

Freeze dry food

Get deposits

Arrange contact at BW

Bring Joke book

Arrange Motel

Rent Tents

Prepare 7 breakfasts

Retain Receipts

Bring emerg. flares

Bring scotch

Schedule return flights

Bring Sleeping Bags

Prepare 7 lunches

Pay for supplies

Bring two first aid kits

Bring Fishing Gear Bring lights and waterproof matches

Prepare 6 dinners

Close-out trip

Work Breakdown Structure

Trip to Boundary Waters Arrange Travel Get Equipment Plan Meals Prepare Budget Plan for Emergencies Plan Activities

Schedule Flights

Contact BW Outfitter

Bring cooking gear

Assign Budget Person

Obtain emerg. #s

Bring Cards

Rent Van

Rent canoes

Freeze dry food

Get deposits

Arrange contact at BW

Bring Joke book

Arrange Motel

Rent Tents

Prepare 7 breakfasts

Retain Receipts

Bring emerg. flares

Bring scotch

Schedule return flights

Bring Sleeping Bags

Prepare 7 lunches

Pay for supplies

Bring two first aid kits

Bring Fishing Gear Bring lights and waterproof matches

Prepare 6 dinners

Close-out trip

Work Breakdown Structure

System Hardware Replacement

RFP Development Vendor Selection Staff Training Hardware Implementation

Needs Assessment

Research Vendors

Identify training Plan

Schedule Installation

Needs Analysis

Research Sites

Schedule Training

Prepare Site

Write RFP

Select Vendors to mail RFP

Train

Arrange Vendor Support

Finalize with Purchasing

Review Proposals

Configure System

Rank Proposals

Install System

Recommendation

Work Breakdown Structure

System Hardware Replacement

RFP Development Vendor Selection Staff Training Hardware Implementation

Assess Needs

Research Vendors

Identify training Plan

Schedule Installation

Analyze Needs

Research Sites

Schedule Training

Prepare Site

Write RFP

Select Vendors to mail RFP

Train Sysadmins

Arrange Vendor Support

Finalize with Purchasing

Review Proposals

Configure System

Rank Proposals

Install System

Make Recommendations

Project: Building a House

Scope of work includes; construction of main house, its outbuildings, and landscaping/garden. The construction of main house can be sub divided into civil works, carpentry/plumbing work, and electrical/paint work. The outbuildings consist of a garage, drive way, and a greenhouse. Landscaping/garden includes garden, and fencing of grounds. The civil works can be further subdivided into foundations, walls, and roofing. The carpentry/plumbing work includes doors/windows, cabinets, and plumbing work. The electrical/paint work includes wiring, painting, and internal finishing work.

Make a WBS diagram.

Estimating
Resources Time

Costs

Approaches for Developing Networks Activity on Arrow

Activities drawn on arrows
Nodes are used as Milestones

Dummy activities

Activity on Node
Activities drawn on Nodes Arrows are used to represent Flow

Basic rules for Developing Networks

Network flow typically from left to right

An activity cannot begin until all preceding connected activities have been completed
Each activity should have a unique identification number An activity identification number must be larger than that of any activities that precede it Looping is not allowed Conditional statements are not allowed

Work Breakdown Structure, Most Likely Durations & Precedence Relationships for a Project

Activity A. Select computer software B. Install software C. Install office network D. Test software E. Develop database F. Train employees G. Implement system

Most Likely Duration (Weeks) 3 5 7 6 8 3 2

Immediate Predecessor(s)

A A B B C,D E,F

Activity-on-Node Network Representation

Activity-on-Arc / Arrow Representation

Comparison of Networks Requiring Dummy Activities for Activity-on-Arc Representation

Draw Network Diagram Budget approval from the CEO is required before purchasing a new machine for a factory. The use of new machine necessitates employing a new operator from outside the organization. The operator must be specially trained, using a training manual and some special equipment, which is delivered with the machine. The training itself does not depend upon the new machine being installed and working. Once the machine is installed and the operator is trained, production can be started.

Critical Path Method

The techniques help to answer questions like:

What is the expected project completion date? What are the scheduled start/end dates for each activity?
Which activities are critical? How long can a non-critical activity be delayed?

Critical Path Method

Initially, treat expected time (t) as fixed duration The CP is the longest route through the network

If these activities are delayed, the whole project is delayed To reduce the overall duration of the project look at the critical activities

Determining the Critical Path for Project X

Exercise Make a Network diagram. Find out CP and its duration.

Activity Immediate predecessors A B C D E F G B A, C C C D, E, F Duration (Days) 5 3 6 7 4 3 5

Formula for PERT

a - Optimistic time, m - Most likely time, b - Pessimistic time Expected time: Variance of activities:

a+ 4m +b t e= 6
Activity
A B C

s =

a 6

a
2 8 2

m
8 10 3

b
10 12 15

s2
1.78 .44 4.69

7.33 10 4.83

Solved Example
Act. Description A B C D E F G H I J R &D P lan Mkt Res Routing P rototype Mkt Broch. C ost E st. P rod. Test Mkt S urvey P ricing/F cast F inal Report Pre. A A A C D B, E H F, G, I Opt. (a) 4.0 1.0 2.0 3.0 2.0 1.5 1.5 2.5 1.5 1.0 ML (m) Pes. (b) 5.0 1.5 3.0 4.0 3.0 2.0 3.0 .5 2.0 2.0 12.0 5.0 4.0 11.0 4.0 2.5 4.5 5 2.5 3.0 Exp. (t) 6 2 3 5 3 2 3 4 2 2 Var 1.78 0.44 0.11 1.78 0.11 0.03 0.25 0.69 0.03 0.11

 Let T be total time of project. Expected value of T is calculated as: The variance in project completion time is:

E(T) = t A + t E + t H + t I + t J = 17
= + + + +
2 2 A 2 E 2 H 2 I 2 2 2 J

= 1.78 + 0.11+ 0.69 + 0.03 + 0.11 = 2.72and = 2.72 = 1.65

Probability of meeting a specified deadline

Probability of completing the project in 20 weeks? Need to use the z value, calculated as;

20 17 z= = 3/1 . 65 = 1 .82
By looking this z factor of 1.82 in the z table, we get the value of 0.9656, which means the chances of completing this project in 20 weeks are 96.56%.

Attempt this exercise

Activity I mmediate predecessors A B C D E F G B A, C C C D, E , F Duration (Days) (a, m, b) 3, 5, 7 2, 3, 6 4, 6, 10 3, 7, 12 2, 4, 8 2, 3, 4 3, 5, 8