1

PROJECT PLANNING (PART 2)

Project Management
FMT HANU
 Course structure
2

• Project, project management: introduction

1

• Project initiation: boundary and context definition, stakeholder

2 awareness, building the business case

• Project planning: project objectives, project deliverables, work

3 break down structure (WBS), scheduling, cost/ resource planning

• Project organisation: project organization chart, project

4 communication structure, project roles

• Overview: project controlling, project close down

5
 Reading
3

 Chapter 4 (p. 81 - 107)

 Lecture outline
4

 Importance of planning
 Project objectives, project charter and deliverables
 Work break down structure (WBS)
 The Logic Diagram (Network)
 The Gantt Chart
 Developing the Baseline Plan
 Terms to understand
5

 Work Breakdown Structure (WBS)

 Dependency Analysis
 Logic Network/ Logic Diagram
 The Gantt Chart
 Critical Path
 Path
 Efficiency Ratios
 Baseline Plan
 The process of Planning…
6

Define Work Create a

Establish Schedule -
Breakdown sequence
Project Gantt
Structure of tasks -
Charter Chart
(WBS) Network

Integrated Project
Plan (IPP)
 WBS can be defined by
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 Work cycle
 Subject matter
 Deliverables
 Define
Work
Breakdown Organizing by Work Cycle
8 Structure

(WBS)

 Eg: Organizing the WBS by Work Cycle is one

approach:
 Define
Work
Breakdown
Organizing by subject matter
9 Structure

(WBS)
More examples: https://
www.workamajig.com
Work

(WBS)
Define

/blog/guide-to-work-breakdown-structures- 10 Structure
wbs
Breakdown
Organizing by deliverables
 WBS coding
11

 Work breakdown
structure
elements are
usually numbered
in decimal
sequence from
top to bottom.
 Define
Work Developing estimates
Breakdown
12 Structure

(WBS)
 Define
Work Developing estimates
Breakdown
13 Structure - 20 hours (a week’s worth of work)
(WBS) - Help the project manager to
measure progress every week
- For project team with sufficient
knowledge about the work to be
done
 Define
Work Developing estimates
Breakdown
14 Structure

(WBS)

The larger the work components

(tasks), the less accurate the
manager’s estimate tends to be,
and the less control they have
over the project
 Define
Work Developing estimates
Breakdown
15 Structure

(WBS)

On the other hand, the smaller

the tasks, the more accurate the
estimates tend to be. The
manager has more control over
the project, and spends more
time managing the project
 Define
Work
Developing estimates
Breakdown without any knowledge
16 Structure

(WBS) about the work

Get expert’s
opinions!
 The process of Planning…
17

Define
Establish Work Create a
Schedule -
Project Breakdown sequence of
Gantt Chart
Charter Structure tasks - Network
(WBS)

Integrated Project
Plan (IPP)
 Network Diagram/ Pert Chart
18
 Logic
Diagram Logic Diagram
(Network)
19

 Sequence of the tasks must be done (dependency) ->

logic diagram
 The logic diagram, or network is the basis of a project
schedule
 May be changed if WBS changes (tasks added or
deleted)
 Requires the participation of the entire project team
 Include effort estimates; effort unit is counted in
hours
Logic Diagram Case Study Example: Construction of a Single-Family Residence

An example of a linear project structure would be in the construction of a single-family

residence. The goal is the completion of a home that can be used by a single family as their
residence.
20 The solution is to break down the final deliverable into major components and then
break down each major component into smaller subcomponents of work activities. The project
manager can then develop a sequence of activities based on the logical development of how
the construction of a home is carried out. For example:
• Prepare the initial groundwork for the creation of a foundation.
• Create the foundation in all the elements that are required underneath and inside of the
foundation.
• Do the rough framing of the walls, any second-story flooring, and the roofing structure.
• Install rough plumbing, pull electrical wiring, and mount the primary heating and air-
conditioning unit.
• Install windows, siding, and roofing.
• Install insulation and interior sheet rock and interior doors.
• Paint exterior and interior.
• Do the final finish of the kitchen and bathrooms, and install all electrical fixtures and flooring.
• Perform a final walk-through and gain customer approval.
Each of these areas can be well defined by the project manager at the beginning of the project,
cost estimates and schedule durations can be developed, and a risk assessment can be made.
Steps to construct the Project network
diagram

Step 1: Establish the relationships between the activities

included in a project network by answering the following
three questions for each activity:
Which activities must be completed immediately before this
activity? These activities are called predecessor activities.
Which activities must immediately follow this activity? These
activities are called successor activities.
Which activities can occur while this activity is taking place?
This is known as a concurrent or parallel relationship.
Step 2: Construct a graphic flow chart of the sequence and
logical interdependencies of project activities
Step 3: Compute & add times to the network through
Network Computation Process (the forward and backward
pass)
 Logic
Diagram Types of dependency
(Network)
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1. Finish to Start (FS)

3. Start to Start (SS)

A must start for

A must end before B starts
B to start
Eg: Dig hole FS plant tree
Eg: Project planning
SS execution
2. Finish to Finish (FF)

1. A must end for

4. Start to Finish (SF)
2. B to end A must start for
4. B to end
3. Eg: Last chapter written FF 5. Eg: New shift started SF
entire book
written 6. Previous shift ended
 Let’s practice
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 Draw a network diagram

Number Activity Predecessor Duration
(days)
1 A - 3
2 B A 4
2 C A 2
3 D B 5
4 E C 1
4 F C 2
5 G D, E 4
6 H F, G 3
Two approaches

AON: a method of constructing a project schedule

network diagram that uses boxes, referred to as nodes,
to represent activities and connects them with arrows
that show the dependencies

AOA:  a method that uses arrows to represent

activities. Precedence relationships between activities
are represented by circles connected by one or more
arrows. The length of the arrow represents the
duration of the relevant activity
 Let’s practice
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Number Activity Predecessor Duration

(days)
1 A - 3
2 B A 4
2 C A 2
3 D B 5
4 E C 1
4 F C 2
5 G D, E 4
6 H F, G 3
26
 Let’s practice
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 Draw a network diagram

Nu Activi Predeces Dura
mbe ty sor tion
r (days
)
1 A - 3
2 B A 4
3 C A 2
4 D B 5
5 E C 1
6 F C 2
7 G D, E 4
8 H F, G 3
 Let’s practice
28 Activity Predec Duratio
/ Task essor n (days)
A - 2
B - 4
C A 3
D A 5
E B 1
F C 3
G C 6
H D 3
I E 4
J F 1
K G, H 5
L G, H, I 3
M J,K,L 2
 The process of Planning…
29

Define
Create a
Establish Work
sequence of Schedule -Gantt
Project Breakdown
tasks - Chart
Charter Structure
Network
(WBS)

Integrated Project
Plan (IPP)
 Gantt Chart
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Schedule -
Gantt Chart
The Gantt Chart
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 Based on the logic network

 Converting logic network (in effort) to a realistic
calendar schedule (in duration)
 27.5 effort hours/ week (US context, minus lunch
hours, coffee and bathroom breaks, office
interactions, etc.),
 While the full working hours is 40 hours/ week
(8 hours * 5 days)
Schedule -
Gantt Chart
Efficiency ratios
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 Gantt chart is presented in calendar time, but PM

needs to develop a realistic schedule base on
effort hours.
 Efficiency = Total weekly effort hours = 27.5 = 0.6875
Total weekly work hours 40
OR = 31.75 = 0.6944
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33

Estimate effort hours

and use ratio to
convert to duration
34

Estimate effort hours

and use ratio to
convert to duration
35

OR
Divide length of
critical path (effort
hours) by efficiency
ratio to get the
duration (in hours).
Schedule -
Gantt Chart
Why estimate in effort?
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 Variables! Personal or unexpected things can

interfere with the project.
 Project worker/ subject matter expert (SMEs) may
simultaneously have other tasks to do that are
unrelated to the project.
 Emphasize real effort to the actual project work,
not the project worker’s schedule.
 Logic
Diagram Network diagram
(Network)
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Critical path
is 16 effort
units (days)
38

16 effort units/
0.6875 ≈
23 (days)
Schedule -
Gantt Chart
Power of the Gantt chart
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 Used for status reporting, costing, tracking labor

hours, or tracking progress.
 Used to answer questions such as “are we on
time?”, “how much money have we spent?”, “how
many hours have been spent on the project?”
 Communication and visualization of the progress
for all interested parties (PM, project team,
sponsor, stakeholders, etc.)
 Internal monitoring tool for the team
 The process of Planning…
40

Define
Create a
Establish Work
sequence of Schedule -
Project Breakdown
tasks - Gantt Chart
Charter Structure
Network
(WBS)

Integrated Project
Plan (IPP)
 Project Baseline plan
41

 In Project Management, the term baseline refers to an

accepted and approved project plan.
 A project’s baseline is defined as the original scope, cost and
schedule. The project’s baseline must be completely defined
and documented before the project execution and control
activities can begin.
 For a project manager to monitor and evaluate the
performance of a project by comparing actual performance
with the initial estimated one.
 There are several baseline in a project such as cost baseline
scope baseline, performance baseline, etc.
 Terms to understand
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 Work Breakdown Structure (WBS)

 Dependency Analysis
 Logic Network/ Logic Diagram
 The Gantt Chart
 Critical Path
 Path
 Efficiency Ratios
 Baseline Plan
 Case study
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VIGNETTE 4—Putting the Project Life Cycle to Work

in Higher Education (p. 104)
1. Who? (who did the case discuss)
2. What? (what is the mission of the organization?
What project is mentioned in the case?)
3. How? (how did the college approach the mission
of this project?)
 Case study (cont.)
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VIGNETTE 4—Putting the Project Life Cycle to Work in

Higher Education (p. 104)
1. Concept (What did they do to conceptualize the project?)
2. Plan (What did planning include? Who are the
stakeholders in this case? After plan is approved, what did
organizing and scheduling involve?)
3. Execute (What did the project manager do? What was the
“slippage”? How did the PM manage this change?)
4. Close (What did they do after the project ended? What
have they learned?)