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

2. 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

3. 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?

4. 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

5. 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

6. 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

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

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

9. 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

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

11. 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

12. 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

13. 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

14. 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

15. ‘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)

16. ‘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)

17. ‘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)

18. 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)

19. 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

20. Network analysis for a simple decorating project1
Activity reference
Activity duration
Event number
An event 3 c b 1 2 3 1 a 2 5 f 6 d e 4

21. 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

22. 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

23. 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

24. 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

25. 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

26. 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

27. 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

28. 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