1. BPP 3213 PROJECT ESTIMATION AND SCHEDULINGLecture 1 Fundamentals of Project PlanningNurhaizan Mohd Zainudin (ext 2275)Sept, 2012Faculty of TechnologyUniversity Malaysia Pahang Jane Doe & Jane Doe

2. IntroductionLecture Outline Introduction to Course Focus of the Course Course outline Course Outcome Course Assessment References Major Assignment Purpose of this lecture / Lesson outcome 3. Introduction (contd)Lecture Content FUNDAMENTALS OF PROJECT PLANNING Project Life Cycle Project Master Plan Project Organization Structure andResponsibilities Scope and Work Planning and Scheduling Charts Project Management System Challenges in Scheduling and Estimating Conclusion Tutorial 4. Time Management... 5. Focus of the Course Projects are too complex for a simple back ofthe envelope planning Thus, the need for consistent and disciplinedthinking in a systematic manner Scheduling and estimating tools and techniqueshelp in allocating and managing cost andresources effectively 6. Course Outline1. Fundamentals of Project Planning2. Network Scheduling and Precedence Diagram Method3. PERT, CPM, GERT, and GANTT Chart4. Scheduling With Resource Constraints5. Fundamentals Cost Estimating and Budgeting6. Tracking the Project7. Project Control 7. Course OutcomeUnderstand the importance of scheduling andestimation in ensuring the successful of projectApply Precedence Diagram Method (PDM) indetermining relationship between tasksUse appropriate techniques for resourceestimation for a project planning 8. AssessmentGroup Assignment (Project) 30%Individual Assignment10%Tutorial 10%Test ( 2 tests)10%Final Exam 40%Total100% 9. ReferencesMain References:1. Kerzner, Harold. 2007. Project Management: A System Approach to Planning, Scheduling and Controlling. John Wiley and Sons. 8th Edition.2. Nicholas, John M. 2004. Project Management for Business and Engineering: Principles and Practice. Elsevier Butterworth-Heinemann. 2nd Edition. 10. Purpose of this lectureTo better understand: Project life cycle, master plan, organizationstructure, and scope and work Planning and scheduling charts Project management system Challenges 11. Scheduling... 12. Project ManagementProject Project Scope Project QualityIntegration ManagementManagementManagementProject TimeProject CostProject HumanManagementManagementResourceManagementProject Project RiskProjectCommunication ManagementProcurementManagementManagement 13. Introduction Project Planning:-A discipline stating how to complete a project-Certain timeframe, defined stages, designatedresources Estimating (PMBOK 2004):- Developing an approximation of resources costsneeded to complete each schedule.-Considering the possible cause of variation ofcost estimates- Identifying and considering various costingalternatives 14. Introduction (contd)Scheduling:-A process converting a project plan into time-based graphic presentation- Given information on available resources andtime constraints- 3 basic steps 15. Project Life Cycle Projects are subdivided into several manageablephases Phases that connect the beginning of a project to itsend- Concept and initiation phase- Design and development phase- Implementation / construction phase- Commissioning and hand over phase Generally defines:- What are the technical work to do in each phase?-When the deliverables are to be generated?- Who involved in each phase? 16. Characteristic of Project Life Cycle PMBOK 2008Starting OrganisingCarrying out the work Closingthe andtheprojectpreparing projectCost and Staffing LevelProjectManagementProject Project ManagementAcceptedCharter Plan DeliverablesOutput Time 17. Characteristic of Project Life Cycle (contd)PMBOK 2008 Phases are sequential Cost and staffing levels:- Low at start- Peak during intermediate- Drop rapidly when project approaching completion Level of uncertainty:- Highest at start, risk of failing is greatest- Gets better as the project continues Stakeholder ability to influence:-Highest at start- Gets lower as the project continues 18. Characteristic of Project Life Cycle (contd) PMBOK 2008 19. Planning for a Project... 20. Project Master Plan A comprehensive document that sets outoverall strategy for a projectIncorporates several related sub plans- Risk management plan- Staffing management plan- Scope management plan- etc A planning tool that provides a detailedguidance The big picture for a project 21. Project Master Plan (contd) A good project plan will provide: A roadmap everyone in the team can followwith clear milestones A realistic project timescale Details of resource requirements Validation of estimated cost Identification of task slippage Early warning of problems 22. Organization Structure Projects are performed by people, managed bypeople Organization structure reflects the projectsneeds, the teams needs, and the individual needs Identifies relationships between variousparties, lines of authority & lines of communication 23. Organization Structure (contd) It considers:i) Project team-Relationship of PM & other team membersii) Project interfaces-Communication of PM with internal & externals/holdersiii) Matrix organization structure-Temporary project lines of responsibilityiv) Responsibility Matrix- Development of schedule bar chart, links work to theresponsible person 24. Project Organization StructureFunctional Organization Structure Traditional organization structure Based on subdivision Wedding Cake corporate structure Advantages:- Provide a home for technical expertise and goodsupport-High degree of flexibility- Lines of communication is short and wellestablished- Clearly defined responsibility and authority withindepartments 25. Project Organization Structure (contd) Functional Organization Structure (contd) Disadvantages: - No single point of responsibility - No formal lines of communication - Inadequately defined responsibilities for external coordination - Departmental work takes priority to project work - Not effective for multi-project environment 26. Project Organization Structure (contd) Functional Organization Structure (contd)GeneralManager Civil StructuralMechanica ProcurementManage Manager l Managerr ManagerSupervisor Supervisor SupervisorAdministratoTradesmanTradesmanTradesman r 27. Project Organization Structure (contd) Matrix Organization Structure Mathematical matrix topology vertical and horizontal lines of responsibility and authority Vertical lines: functional departments Horizontal lines : project Variants: - co-ordination matrix (weak, nearest to traditional functional hierarchy) - overlay matrix (balanced, commonest) - secondment matrix (strong, nearest to pure project structure) 28. Project Organization Structure (contd) Matrix Organization Structure (contd) Advantages: - Clear single point responsibility Project Manager - Higher degree of resource utilization - Shared capital cost between projects and functional departments - Good flow of information Disadvantages - Complex and difficult to understand - More communication links required - Dual responsibility and authority leads to confusion - Cost of running the matrix organization is higher 29. Project Organization Structure (contd) Matrix Organization Structure (contd) General Manager CivilStructural Mechanical ProcurementManager Manager Manager ManagerProject Lines ofProject ResponsibilityManage r (1)ProjectManage r (2)TwoBosses Supervisor Tradesman 30. Project Organization Structure (contd) Pure project Organization Structure All departments are dedicated to the project Self-contained unit Project manager has high level of authority to manage and control Advantages: - Project manager has full line authority - Increased commitment and loyalty - Promotes effective communication - Lines of communication is shorter 31. Project Organization Structure (contd) Pure project Organization Structure (contd) Disadvantages: - Duplication effort if numbers of project running concurrently - Divorces from functional departments sever cross flow of information and ideas - Cannot offer continuity of employment lose valuable experience and information 32. Project Organization Structure (contd) Pure project Organization Structure (contd)Project Manager Mechanical StructuralManager ManagerMechanicalMechanicalStructuralStructural ForemanSupervisorForeman Supervisor 33. Project Management System Types of software covering scheduling, costcontrol, resource allocation, quality management anddocumentation etc Tasks or activities include:- Scheduling- calculating critical path- Providing information Examples:-Microsoft Project- Prince2- Primavera 34. Planning and Scheduling Charts 35. Planning and Scheduling Charts (contd) Scheduling techniques to cope withcomplexities, masses of data and tight deadlines Most common:- Gantt Chart or bar chart- Milestone Charts- Line of balance- Program Evaluation and Review Technique (PERT)- Arrow Diagram Method (ADM) or Critical PathMethod (CPM)- Precedence Diagram Method (PDM)- Graphical Evaluation and Review Technique (GERT) 36. Scope and Work DefinitionMilestone Schedule (PMBOK 3 rd Ed)Milestone is a significant point of event in the project.Schedule Milestone means a significant event in theproject schedule and have zero duration.Thus, Milestone Schedule is a summary-levelschedule that identifies the major schedule milestone.Milestone schedule contains:- Project start date and end date- Other major milestone- Deliverables 37. Scope and Work Definition (contd)Work Breakdown Structure (WBS) An output/input A deliverable-oriented hierarchical decompositionof work to be executed To accomplish project objectives Organizes and defines the total scope of work forthe project work Decomposed into work packages 38. Scope and Work Definition (contd)Work Breakdown Structure (WBS) (contd) WBS dictionary is a document describing eachcomponent in the WBS description includes briefdefinition of statement of work, defineddeliverables, list of associted activities and list ofmilestones. 39. Challenges in Scheduling and Estimating Classic challenge is to complete a project within time and within budget or rather, to schedule and to estimate! The fact : - it is inexact process that it tries to predict the future. - it can never be accurate - most possible be as close as possible 40. SummaryFailing to plan is planning to failUnderstanding the fundamental aspects is essentialto ensure appropriate application of planningtechniques."The plans were useless, but the planningwas indispensible." 41. Questions??? He who ask is a fool for five minutes, buthe who does not ask is a fool forever. 42. TutorialIn a group of 3;i) Discuss the importance of scheduling in ensuring project successii) Discuss the challenges faced in project timemanagement with reference to an existing case