1. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Chapter 16 Project planning and control Source: Arup

2. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Project planning and control Operations strategy Design Improvement Planning and control Operations management Project planning and control The operation supplies … the delivery of the project on time, to specification and to budget The market requires … specified time, quality and cost of a project

3. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 IndividualGroupOrganizationMulti- organization Nation Multi-nation Complexity LowHigh Uncertainty Low High Novel writing Wedding Product development Oil and gas exploration Basic research Company audit Advertising campaign Antarctic expedition Oil tanker Chemical plant Airport Car plant Airbus Channel Tunnel Euro project Motorway Thames Barrier Military campaign Complexity and uncertainty as project dimensions

4. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Understanding the project environment Stage 1 Project definition Stage 2 Project planning Stage 3 Technical execution Stage 4 Project control Stage 5 Changes Corrective action Stages in project management

5. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 The project Geo-social environment Geography National culture Econo-political environment Economy Government Business environment Customers Competitors Suppliers/ subcontractors Internal environment Company strategy Resources Other projects The project environment consists of all the factors that can affect the project

6. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 The stakeholder power–interest grid Stakeholder power Stakeholder interest Keep satisfied Manage closely Monitor Keep informed LowHigh Low High

7. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 How projects can be defined Project objectives Phase 1Phase 3Phase 4 Project strategy Milestones Phase 2 Project scope The project

8. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Department 1 Department 2 Department 3 Project A Project B Full-time equivalent resource Reporting relationship Matrix management structures often result in staff reporting to more than one project manager as well as their own department

9. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 How projects are planned I Identify activities Estimate time and resources Identify relationships and dependencies Identify schedule constraints Fix the schedule

10. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Quality TimeCost New aircraft project Music festival Fixed grant research project The three project objectives of quality, cost and time

11. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Identify the activities in the project Adjust as necessary Stages in the project planning process Estimate times and resources for the activities Identify the relationships and dependencies between the activities Identify time and resource schedule constraints Fix the schedule for time and resources

12. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Serve breakfast in bed 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 Arrange tray Produce buttered toast Produce boiled egg in egg cup Produce glass of orange drink

13. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Design information interface for new sales knowledge management system Form and train user group Install systems Specify sales training Design initial screen interface Test interface in pilot area Modify interface TrainingInstallation Testing Work breakdown structure Project to design an information interface for a new sales knowledge management system in an insurance company

14. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 ‘Making breakfast’ – Do activities at earliest time 0123467895 Orange Bread Water Tray Toast Boil waterBoil egg Bed room Staff required 0123467895 0 1 2 3 4 Butter Time (mins) Activities requiring operator time

15. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 ‘Making breakfast’ – Minimizing staff requirements 0123467895 Orange Bread Water Tray Toast Boil waterBoil egg Bed room Staff required 0123467895 0 1 2 3 4 Butter Time (mins)

16. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 ‘Making breakfast’ – Maximizing toast quality 0123467895 Orange Water Tray Boil waterBoil egg Bed room Staff required 0123467895 0 1 2 3 4 BreadToast Butter Time (mins)

17. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 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 0 102030405060 Activity Time (days) Gantt chart Project to design an information interface for a new sales knowledge management system in an insurance company

18. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Prepare bedroom Paint bedroom Prepare kitchen Paint kitchen Remove furnitureReplace furniture a Remove furnitureNone1 b Prepare bedrooma2 c Paint bedroomb3 d Prepare kitchena1 e Paint kitchend2 f Replace furniturec, e1 Activity Immediate predecessors Activity duration (days) Activities and network for simple decorating project

19. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Network analysis for simple decorating project a b d c e f 1 2 1 3 2 1 1 2 5 6 3 4 a 1 1 Activity reference Activity duration Event number An event

20. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Network analysis for simple decorating project a 1 b 2 d 1 c 3 e 2 f 1 1 2 5 6 3 4 00 11 66 77 42 33 with earliest and latest event times

21. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 1 2 x y 1 3 2 x y Activity on arrow – Using ‘dummy’ activities to clarify relationships

22. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 1 35 2 46 Activity on arrow – Using ‘dummy’ activities to describe a relationship that could not be expressed any other way

23. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Remove furniture Prepare kitchen Paint kitchen Prepare bedroom Paint bedroom Replace furniture Activity on node (AON) network for simple decorating project

24. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 A B D C F E J K I M L G H 3 8 4 7 10 5 1 8 3 94 5 18 10 27 19 22 35 10 0 0 31 19 27 35 22 Network diagram for a motorway project

25. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Typical subjective probability distribution for an activity time estimate Activity duration3 Optimistic time 5 Most likely time 6 Expected time 13 Pessimistic time Probability

26. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 How projects are controlled Value of work completed Actual expenditure SV CV Planned expenditure ACWP:Actual cost of work performed BCWP:Budgeted cost of work performed BCWS:Budgeted cost of work scheduled SV:Schedule variance CV:Cost variance Actual expenditure ACWP BCWP BCWS

27. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Integration Some of the elements integrated in Enterprise Project Management systems Project portfolio analysis Multi-project analysis Complex resource scheduling Real-time reporting Project modelling Scenario planning Forecasting Risk management Communi- cation Project portal Web-based collaboration Document management E-mail notification Project planning Critical activity analysis Float calculation Work order management Project control Budgeting Cost management Earned value control Resource scheduling Resource levelling Resource availability Skills scheduling

28. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Key Terms Test Project A set of activities with a defined start point and a defined end state which pursue a defined goal using a defined set of resources. Programme As used in project management, generally taken to mean an ongoing process of change comprising individual projects. A programme has no defined end point. Uncertainty Projects can be defined in terms of their complexity and their uncertainty.

29. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Key Terms Test Stakeholders The people and groups of people who have an interest in the operation and who may influence, or be influenced by, the operation’s activities. Work breakdown structure (WBS) The definition of, and the relationship between, the individual work packages in project management. Each work package can be allocated its own objectives that fit in with the overall WBS. Earned-value control A method of assessing performance in project management by combining the costs and times achieved in the project with the original plan.

30. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Key Terms Test Network analysis Overall term for the use of network-based techniques for the analysis and management of projects. Includes, for example, the critical path method (CPM) and the programme evaluation and review technique (PERT). Critical path method (CPM) A technique of network analysis. Programme evaluation and review technique (PERT) A method of network planning that uses probabilistic time estimates.

31. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Key Terms Test Activity As used in project management, an identifiable and defined task; together with events, they form network planning diagrams. Event Point in time within a project plan; together with activities, they form network planning diagrams. Critical path The longest sequence of activities through a project network, so called because any delay in any of its activities will delay the whole project.

32. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Key Terms Test Crashing A term used in project management to mean reducing the time spent on critical path activities so as to shorten the whole project. Enterprise project management (EPM) Software that integrates all the common activities in project management.