WEEK 3 Project Planning

Project Planning The first step in total program scheduling is understanding the project objectives. These goals may be to develop expertise in a given area, to become competitive, to modify an existing facility for later use. The objectives are generally not independent and many times it is not possible to satisfy all objectives. At this point, management must decide the objectives as to which are strategic which are not.

Project Planning Typical problems with developing objectives include: Project objectives/goals are not agreeable to all parties. Project objectives are too rigid to accommodate changing priorities Insufficient time exists to define objectives well Objectives are not adequately quantified Objectives are not documented well enough. Effort of client and project personnel are not coordinated Personnel turnover is high

Project Planning Effective total program planning cannot be accomplished unless all of the necessary information becomes available at project initiation. These requirements are: The statement of work (SOW) The project specifications The milestone schedule The work breakdown structure (WBS)

The Statement Of Work (SOW) The SOW is a narrative description of the work required for the project. The complexity of the SOW is determined by the desires of top management, the customer, and/or the user groups. The SOW is prepared by the project office with input from the user groups.

Project Specifications A specification list separately identifies or calls out as part of the statement of work. Specifications are used for man-hour, equipment, and material estimates. Small changes in a specification can cause large cost overruns.

Project Specifications

Milestone Schedules Project milestones schedules contain such information as: Project start date Project end date Other major milestones Data items (deliverables or reports) Other major milestones can be review meetings, prototype available, procurement , testing.

Work Breakdown Structure (WBS) A WBS is a product-oriented family tree subdivision of the hardware, services, and data required to produce the end product. The WBS is the single most important element because it provides a common framework.

Work Breakdown Structure (WBS) These are: Total program can be described as a summation of subdivided elements Planning can be performed Cost and budgets can be established Time, cost, and performance can be tracked Objectives can be linked to company resources in a logical manner Schedules and status-reporting procedures can be established Network construction and control planning can be initiated The responsibility assignments for each element can be established

Work Breakdown Structure (WBS) The WBS acts as a vehicle for breaking the work down into smaller elements, thus providing a greater probability that every major and minor activity will be accounted for. The most common WBS is the six-level indented structure. Level Description 1 Total Program Managerial level 2 Project 3 Task 4 Subtask Technical level 5 Work package 6 Level of effort

Work Breakdown Structure (WBS) Level 1 is generally used for authorization and release of all work Level 2 is used for preparing the budget Level 3 is used for preparing schedules These three levels of the WBS are managed by project managers

Work Breakdown Structure (WBS)

Work Breakdown Structure (WBS)

Work Breakdown Structure (WBS)

Work Breakdown Structure (WBS) In setting up the work breakdown structure, task should: Have clearly defined start and end dates Be usable as a communications tool in which results can be compared with expectations Be estimated on a total time duration, not when the task must start or end Be structured so that minimum of project office control and documentation is necessary

Why Do Plans Fail? Corporate goals are not understood at the lower organizational levels Plans encompass too much in too little time Financial estimates were poor Plans were based on insufficient data No attempt was made to systematize the plan process No one knows ultimate objects No one knows the staffing requirements No one knows the major milestones dates, including written reports Project estimates are best guesses, and are not based on standards or history Not enough time was given for proper estimating People are not working toward the same specifications.

Stopping Projects There are eight main reasons for stopping: Final achievement of the objectives Poor initial planning and marketing prognosis A better alternative is found A change in the company interest and strategy Allocated time is exceeded Budgeted costs are exceeded Key people leave the organization Problem too complex for the resources available

Time Management Project time management includes the processes to manage timely completion of the project. Define activities Sequence activities Estimate activity resources Estimate activity durations Develop schedule Control schedule

Time Management

Scheduling Techniques Management is continually seeking new and better control techniques to cope with complexities, masses of data, and tight deadlines that are characteristic of many industries and their highly competitive environments today, as well as seeking better methods for presenting technical and cost data to customers.

Scheduling Techniques Scheduling techniques have taken on paramount importance since WW-II The most common techniques are: Gantt or bar charts Milestone charts Line of balance Networks CPM PERT

Gantt (Bar) Chart One of the oldest but still one of the most useful methods of presenting project schedule information is the Gantt chart, developed around 1917 by Henry L. Gantt. Gantt chart shows planned and actual progress for a number tasks displayed as bars against a horizontal time scale. It is particularly effective and easy-to-read method of indicating the actual current status for each of a set tasks.

Gantt Chart

Gantt Chart Advantages: They are simple to understand and easy to change They are the simplest and least complex means of portraying progress and can easily be expanded to identify specific elements that may be either behind or ahead of schedule Disadvantages: They don’t show the interdependencies of the activities They cannot show the results of either an early or a late start in activities They don’t show the uncertainty involved in performing the activity Some of these disadvantages can be overcome with some additional technics.

Gantt Chart Tasks Durations (Day) Precedence Cost A 3 3.000,00 TL B 4 Example Tasks Durations (Day) Precedence Cost A 3   3.000,00 TL B 4 1.600,00 TL C 5 2.500,00 TL D 7 700,00 TL E 2 1.000,00 TL F 200,00 TL G C,D 900,00 TL

Gantt Chart Example

End of 1th week

End of project

End of project (time and cost)

End of 1th week