Project planning and control Chapter 16 Project planning and control Photodisc. Keith Brofsky

The operation supplies… Project planning and control Operations strategy Design Improvement Project planning and control The operation supplies… the delivery of the project on-time, on-specification and to budget. The market requires… specified time, quality and cost of a project Planning and control

Key operations questions In Chapter 16 – Project planning and control – Slack et al. identify the following key questions: What is a project? What makes project management successful? How are projects planned and controlled? What is project planning and why is it important? How can the techniques of network planning help project management?

Complexity and uncertainty as project dimensions High Wedding Product development Oil, gas exploration Basic research Car plants Airbus Channel tunnel Euro project Company audit Advertising campaign Antarctic expedition Motorway Thames barrier Military campaign Oil Tanker Chemical plant Airport Uncertainty Novel writing Low Individual Group Organization Multi- organization Nation Multi-nation Complexity Low High

Understanding the project environment Stages in project management Understanding the project environment Stage 1 Project definition Stage 2 Changes Project planning Stage 3 Corrective action Project control Stage 5 Technical execution Stage 4

The project environment The project environment consists of all the factors that can affect the project. Econo-political environment Economy Government Geo-social environment Geography National culture The project Business environment Customers Competitors Suppliers/sub-contractors Internal environment Company strategy Resources Other projects

The stakeholder power – interest grid High Keep satisfied Manage closely Stakeholder power Monitor Keep informed Low Low High Stakeholder interest

How projects can be defined strategy The project Project scope Phase 1 Phase 3 Project objectives Phase 4 Milestones Phase 2

Matrix management in projects Matrix management structures often result in staff reporting to more than one project manager as well as their own department. Full-time equivalent resource Reporting relationship Department 1 Department 2 Department 3 Project A Project B

How projects are planned Identify activities Estimate time and resources Identify relationships and dependencies Identify schedule constraints Fix the schedule.

Fixed grant research project The three project objectives of quality, cost and time Quality New aircraft project Music festival Fixed grant research project Cost Time

Stages in the project planning process Adjust as necessary Identify the activities in the project Estimate the times and resources for activities Identify the relationships and dependencies between the activities Identify time and resource schedule constraints Fix the schedule for time and resources

Work breakdown structure Serve breakfast in bed Arrange tray Produce buttered toast Produce boiled egg in egg cup Produce glass of orange drink Obtain juice Obtain glass Produce boiled egg Obtain egg cup Produce toast Obtain butter Obtain plates and cutlery Obtain tray Obtain egg Obtain water Obtain bread

Work breakdown structure (Continued) Work breakdown structure for a project to design an information interface for a new sales knowledge management system in an insurance company. Design information interface for new sales knowledge management system Training Installation Testing Form and train user group Specify sales training Install systems Design initial screen interface Test interface in pilot area Modify interface

‘Making breakfast’ – do activities at earliest time Time (mins) 1 2 3 4 5 6 7 8 9 Orange Activities requiring operator time Bread Toast Butter Water Boil water Boil egg Bed room Tray 4 3 Staff required 2 1 1 2 3 4 5 6 7 8 9 Time (mins)

‘Making breakfast’ – minimising staff requirements Time (mins) 1 2 3 4 5 6 7 8 9 Orange Tray Boil water Bread Toast Activities requiring operator time Boil egg Butter Water Bed room 4 3 Staff required 2 1 1 2 3 4 5 6 7 8 9 Time (mins)

‘Making breakfast’ – minimising staff requirements (Continued) Time (mins) 1 2 3 4 5 6 7 8 9 Orange Tray Boil water Bread Toast Boil egg Butter Water Bed room Activities requiring operator time 4 3 Staff required 2 1 1 2 3 4 5 6 7 8 9 Time (mins)

Gantt charts A Gantt chart for the project to design an information interface for a new sales knowledge management system in an insurance company. Activity a) Form and train user group b) Install systems c) Specify sales training d) Design initial screen interface e) Test interface in pilot area f) Modify interface 10 20 30 40 50 60 Time (days)

Network planning Activities and network for a simple project. a Remove furniture None 1 b Prepare bedroom a 2 c Paint bedroom b 3 d Prepare kitchen a 1 e Paint kitchen d 2 f Replace furniture c, e 1 Activity Immediate predecessors Activity duration (in days) Prepare bedroom Paint bedroom Remove furniture Replace furniture Prepare kitchen Paint kitchen

Network analysis for a simple decorating project 1 Activity reference Activity duration Event number An event 3 c b 1 2 3 1 a 2 5 f 6 d e 4

With earliest and latest event times Network analysis for a simple decorating project (Continued) With earliest and latest event times 3 3 3 c b 3 2 1 a 2 5 f 6 1 1 6 6 1 7 7 1 d e 1 2 4 2 4

Activity on arrow – Using ‘dummy’ activities to clarify relationships. Network planning Activity on arrow – Using ‘dummy’ activities to clarify relationships. 1 3 2 x y 1 2 x y

Network planning (Continued) Activity on arrow – Using ‘dummy’ activities to describe a relationship that could not be expressed any other way. 1 3 5 2 4 6

Activity on node (AON) network for simple decorating project. Network planning (Continued) Activity on node (AON) network for simple decorating project. Remove furniture Prepare kitchen Paint kitchen Prepare bedroom Paint bedroom Replace furniture

The network diagram for a motorway project. Network planning (Continued) The network diagram for a motorway project. A B D C F E J K I M L G H 3 8 4 7 10 5 1 9 18 27 19 22 35 31

Probabilistic network planning Typical subjective probability distribution for an activity time estimate. Probability 3 Optimistic time 5 Most likely time 6 Expected time Activity duration 13 Pessimistic time

Network planning How projects are controlled Planned expenditure ACWP: Actual cost of work performed BCWP: Budgeted cost of work performed BCWS: work scheduled SV: Schedule variance CV: Cost variance C V ACWP Actual expenditure BCWS BCWP Actual expenditure SV Value of work completed

Project portfolio analysis Some of the elements integrated in enterprise project management systems Project modelling Scenario planning Forecasting Risk management Project planning Critical activity analysis Float calculation Work order management scheduling Resource Resource levelling Resource availability Skills scheduling Integration Project portfolio analysis Multi project analysis Complex resource scheduling Real-time reporting Project control Budgeting Cost management Earned value control Communi-cation Project portal Web-based collaboration Document management E mail notification