Chapiter 2

Project planning
 Project planning

Planning for a project=

- Identifying tasks,
- Identifying the tasks sequencing
- Identifying the resources needed and how to use them
- Planning how to acquire theses resources
- Planning for communication
 Project planning

Planning tools

WBS • Identifying tasks and sub tasks

Estimating time • Estiming tasks durations

PERT • Planning for tasks sequencing

Gantt Chart • Determining project schedule

OBS • Identifying the HR resources needed and their

Communication plan • Organising communication and reporting

Risk management plan • Identifying and setting up a plan for managing risks
• Identifying the material resources need and howto
Procurement plan acquire them
• Identifying stakeholders and planning to ensure their
Stakeholders mgt plan
support or reduce their negative impact
 Project planning

WBS: identifying tasks and sub tasks

The Work Break Down Structure (WBS) is a mean to organise work into tasks and subtasks

Reducing complicated activities to a collection of tasks.

The more you breakdown, the more you master the project activities  

Taking a top-down look at your project and break it into the

tasks and subtasks that will get you to completion. Project

Each lot is independant

- Breakdown must be aligned with the Lot 1 Lot 2
project organisation
- Each task and subtask is estimated
(duration, cost, resources)
- The breakdown must come to very simple Task1 Task2 Task1
identified tasks

s/task1 s/task2
 Project planning

Exemples: draw the WBS for these projects

1- Decoration of a room including painting, wallpapering and carpet installation
 Project planning

Time estimation

How long is it going to be before project completion ?

 
1. Subdivise tasks more and more

2. Inquire from people of will handle the work

3. Adjust accordin to the profile of the person in charge ( a new employee will make much
more time than an expert)
4. Leran from previous projects.

5. Take a security margin

6. Consider tasks order, preceedences , parallel tasks and milestones

7. Draw a Gantt chart

 Project planning

Time estimation
• Project duration is the sum of the duration its different actions
• Tasks durations must be estimated with a reasonable precision

Estimating a task’s duration

Probable duration= (min duration + max duration + usual durationx4) / 6

• minimal duration: «If all goes right »

• Maximal duration: «If all goes wrong» (Duration in case of occurrence of identified risks)
• Usual duration : duration which most often occurs if the work is carried out a large
number of times (in general)
- Be careful to make a provision (safety valve)
- Don’t miss some task
- Take into account estimation methods, references, standards
- Take into account the lack of experience.
- Ask the experts
 Project planning
A project manager responsible for delivering an adverising project gathered
all information about tasks preceedences and tasks durations.
All is documented in the table below :

Estimated duration (weeks)

Task Optimistic Usuel Pessimistic Preceedence
A 1 4 7 -
B 2 6 7 -
C 3 3 6 B
D 6 13 14 A
E 3 6 12 A,C
F 6 8 16 B
G 1 5 6 E,F

- What is the estimated tasks duration

- What is the estimated project duration?
 Project planning

Project scheduling
 Project planning

Project scheduling tool: The PERT diagram

PERT= Program Evaluation and Review Technique
A PERT chart is a project management tool that provides a graphical representation
of a project's timeline. The PERT breaks down the individual tasks of a project for
analysis.  It allows to evaluate the time and resources needed to manage a project. 

 Representing the project under the form of a network of tasks

"PERT" was created for the U.S.

Navy in 1957 (during the Cold War
era), while working on the Polaris
missile project. This method
reduced the project timeline to 2,5
years (initially estimated to 6 years)
 Project planning

How to draw a pert diagram (or a network diagram)

• Uses arrows or lines to represent tasks

• Uses nodes to represent events or milestones

• The network shows the tasks interdependencies and sequencing

• PERT limits: does not allow estimation of ressources needed

 Project planning
Item definition  How to draw it
Task A task evolves from an initial status A line or arrow with
to a final one. - The task name: A
Each task has a definite duration - Its duration: A : 10 (days or weeks, …)
A
10
Node Each task has a node at its 1 : Node number sequencing
begining and its end 10 : Start date
A node represents a milestone 18 : End date

Network Its the set of tasks and milestones  

that define the project
It shows the tasks sequences and
dependencies

Dummy Is a constraint between 2 Represented by a dotted arrow or line.

task independent tasks . In this example, Task E is dummy
A dummy task has no duration
C commes after A and B
D commes after B
 Project planning

Drawing a PERT diagram

3 E 4
Chaque tâche est suivie et précédée par une étape
X Y 6 9
5

La flèche représente la tâche

E = Task name
5 = Task duration
Node number 3: Begining of Task E
Node number 4: End of task E

6= start date of task E

9= End date of task E
 Project planning

Drawing a PERT diagram

Table of Dependencies
Tasks Duration Predecessor Level
A 2 - 0
B 3 - 0 Tasks beginning immediately
C 4 A 1
D 2 B 1 Task beginning after B
E 1 C,D 2

A,2 2 C,4

4 E,1 5
1

B,3 3 D,2
 Project planning

Start date = Start date of previous task + task duration

A,2 2 C,4
2
4 E,1 5
6 7
0
B,3 3 D,2
3

Start date at node n° 2 = Date of project beginning + task A duration (0+2=2)

Start date at node n° 3 = 3 (0+3=3)
Start date at node n° 4 = max (2+4, 3+2) =6
Start date at node n° 5 = 6+1 =7
 Project planning

End date = End date of following task – task duration

A,2 2 C,4
2 2
1 4 E,1 5
6 6 77
0 0
B,3 3 D,2
3 4

End date at node N° 4 = 6 (7 -1 =6)

End date at node N° 3 = 4 (6-2=4)
End date at node N° 2 = 2 (6-4=2)
End date at node N° 1 = min(2-2, 4-3) =0
 Project planning

Duration
Activity Title Predecessor
(days)
A Plan the process 5  
B Move in equipments 9 A
C Order materials 6 A
D Clean site 10 B
E Move in materials 2 C
F Set up on-site lightning 5 D
G Build on-site temporary facilities 6 B,E
H Excavate 8 F,G
 Project planning

Float (slack time) : Delays that tasks can take without impacting
the overall project duration (without delaying the project).

A,2 2 C,4
2 2
4 E,1 5
6 6 77
0 0
B,3 3 D,2
3 4
Task float= End date of a task - task duration – start date of previous task
Activity End date Duration Start date of Float
previous task
Activities B and D can
A 2 2 0 0
start with a one day
B 4 3 0 1
delay without impacting
C 6 4 2 0 the overall project
D 6 2 3 1 duration
E 7 1 6 0
 Project planning

Critical path: the sequence of activities which add up to the

longest overall duration. This determines the shortest time
possible to complete the project.
It is the sequence of activities with no float

A,2 2 C,4
2 2
4 E,1 5
6 6 77
0 0
B,3 3 D,2
3 4

The critical path is A, C and E

 Project planning

Case study: In order to respond to the growing market needs and boost its market
shares, the CEO of an organisation performing in the production of milk, decided on
setting up a new production unit.
The project encompasses going through 9 main activities ranging from acquiring the
facility to equipement. The activities are listed below

Activity Duration Predecessor Level

A 6 -
B 2 -
C 3 A
D 4 C
E 1 A
F 7 CE
G 2 AB
H 3 G
I 4 DF

Draw the network diagram,

Calculate floatactivities
Determine the critical path
 Project planning

C,3 9 9
D,4

6 6 16 16
A,6 E,1
F,7 I,4
9 9
B,2 20 20
0 0
H,3
G,2
6 15 8 17
PERT DIAGRAM: La duréeProject
du projet
planning

Float calculation

Activity Float
A 6-6-0 0
B 15-2-0 13
C 9-3-6 0
D 16-4-9 3
E 9-1-6 1
F 16-7-9 0
G 17-2-6 9
H 20-3-8 9
I 20-4-16 0

Critical path A C F I
Project planning

Project timeline
 Project planning

Gantt Chart: project timeline

A Gantt Chart is a timeline that is used as a project management tool to illustrate how
the project will run.
it shows
- individual tasks,
- their durations and
- the sequencing of these tasks
- the overall timeline of the project and
- the expected completion date.

Task A
Task B Activities
prroject
Task C
Task D
Task E
Time
 Project planning

Each task is represented by an horizontal bar, showing the tasks begin and end
(task duration)
This chart allows to see in a glipmse

•Different tasks to perform

•The beginning, end and duration of each task

•Overlapping tasks

•The beginning, end, and duration of the whole project

 Project planning
Draw the gantt chart of the following projects
Activity Duration Predecessor
A 6 -
B 2 -
C 3 A
D 4 C
E 1 A
F 7 CE
G 2 AB
H 3 G
I 4 DF
 Project planning

Resource planning
 Project planning

Material Resource Planning

- Estimation of resource requirements

- If allocated internally: Plan for their provision, plan for conflict

management in case of shared or scarce resource

- If allocated externally: Procurement Plan (decide what to buy,

when, from what sources and by which mean (bids, agreement, …))

Identiying needs Estimating the Drawing a

(What) Needs (how procurement
much) plan (How)
.

.
 Project planning

Human resource planning

- Estimation of Human resource requirements

- Consider
- Technical requirements of the project
- Team competencies
- Availability of resources
- Critical resources
- Draw an OBS and a Responsibility Matrix
 Project planning

Human resource planning

OBS = Organisation Breakdown Structure (similar to WBS)

Defines project organisation considering the WBS

Draw a WBS and an OBS of the project:

Decoration of a room including painting, wallpapering and carpet installation

 Project planning

Human resource planning

Responsibility Assignement Matrix

It’s a crossover between the OBS and the WBS

Activity 1 Activity 2 Activity 3
Person 1 x
Person 2 x
Person 3 x x
Person 4 X x x
Person 5 x

Allows identifying critical resources

 Project planning

Financial resource planning

Project budget could be estimated by 2 manners from the WBS

Bottom Up method Top Down method

Precision between Precision between
-5 et +10% -10 et +25%

The project budget considers:

•Operational expenditures
•Capital expenditures
•Maintenance expenditures
 Project planning

Financial resource planning

Consider inflation, Tenir compte de l’inflation, exchange rates,

contingencies (unforeseen events that may impact estimates),..

Use benchmarking, lessons learnt, experts assistance, etc.

Consider direct operating costs attached to project (salaries, material,

services, taxes, …

Consider indirect operating costs attached to project (transportation,

space occupancy, gas and electricity, catering costs, …
 Project planning

Risk management Plan

Risk= An event that may occur during the life cycle of the project
and may impact negatively this project

Risk, in itself, isn’t bad, it’s the miscalculation of risk, or the non-
calculation of risk that’s bad

Example of risk: Risk is the probability or chance that the hazard

posed by chemical will lead to injury

Risk Management = is defined as the process of identifying,

monitoring and managing potential risks in order to minimize the
negative impact they may have on a project. 
 Project planning
Risk management Process

Communi
cation
 Project planning

• Lack of Communication, Cybersecurity

• Lack of leadership
Organizational risks • Risk aversion
• …..
• Scarcity of resource
• Lack of competence
Human risks • Lack of motivation
• ...

• Clients
Marketing and • Suppliers
commercial risks • Competitors’ offers

• Misunderstanding of Technical requirements

Technical riks • Lack of documentation
• ,…
 Project planning

• Regulations
Legal risks • Contractual risk
• Dispute risks,….
• Escalation of prices
Financial risks • Poor cost estimation

• Earthquakes, windstorms,
Natural risks
sandtorms, …
• Electrical gazards
Safety risks • Height, ladders
• Extreme temperatures,, …
Environnemental • Hazard of pollution,
risks • Gaz emissions, ….…
Project planning

Risk matrix
 Project planning

Planning for risks

- Risk avoidance: Avoiding risk appearance. Eliminating any exposure. Developing an

alternative strategy. Ex: multi sourcing (not depending on a single supplier)

- Risk mitigation: Lessening the effect of threat. ex: Training employees – using
backups of info - late penalties in contracts - insurance

- Risk sharing: Partnering for sharing responsibility on risky activities. Example in

international project, developing a joint venture with a company running in the host
country.

-Risk acceptance: if nothing could be done. Example in the pharmaceutical industry,

when developping a new drug. There is no insurance to recover the cost of research
and development
 Project planning

Planning for risks

 Project planning

Example of a project of construction of a hospital in In amenas

Risk Likelihood of Consequence Action plan

appearance
Authorities not accepting High Fatal
the project
Fatal
 Project planning

Identify the risks, their impact, their likelihood of appearance in a risk matrix and draw
a mitigating plan for each risk

Example of a project of construction of a hospital in In amenas

Exemple of developping a new shampoo by a local organisation

 Project planning

“When anyone asks me how I can

best describe my experience in nearly forty years at sea, I merely say,
uneventful. Of course there have been winter gales, and storms and
fog and the like. But in all my experience, I have never been in any
accident... or any sort worth speaking about. I have seen but
one vessel in distress in all my years at sea. I never saw
a wreck and never have been wrecked nor was I ever in
any predicament that threatened to end in disaster of any sort.”

Paper presented by EJ Smith 1907

On 14 April 1912 RMS Titanic sank with the loss of 1500 lives…

One of which was its captain….

E J Smith