Project Planning & Control

MBA(Tech) XIth trimesterProf.V.Seshadri

Project Management System• A system around which the managerial functions

of planning, organising, communicating and control are structured and consolidated is called PMS. It has following elements and activities:

• WBS, Org. structure, Schedules, Cost accounts, Budgets

• PMS has a means for collecting and storing information, evaluating, reporting and directing corrective actions based on these.

Ref 1 pg 197

PM – SYSTEM– Integrative planning & control

IPC refers to the pulling together of all imp.elements of information related to Time, Cost & Performance. This information must be pulled together for all phases of the project.

IPC involves continuous review and revision of future plans comparison of actuals vs. planned results and projection of total time & cost at completion through interrelated evaluation of all elements of information. Ref .1

PM – SYSTEM– Integrative planning & control –

contd.

•As projects move from one phase to the next, resource requirements, organizational responsibilities shift.

Project Planning - fundamentals• Planning involves deciding & specifying “what

to do, how to go about it and how to make sure it is done right ( thru’ controls)”

1) During conception phase a plan is prepared specifying requirements, work tasks, responsibilities, schedules and budgets

2) During execution phase, this plan is compared to actual project performance,time and cost

3) Based on 2, corrective actions are taken and 1 is suitably updated

Ref 1 Pg 181

Project Planning – fundamentals contd.

• The Project Manager is appointed, if not already in place. PM forms a project team.

• The Project Proposal and/or Contract statement of work (CSOW) and/or Work Requisition or Work Order forms the basis for the planning phase

Ref 1 pg 179

Project Planning –Project Master Plan

Planning process addresses the following steps:

1. Set/Review Objectives, requirements, scope – make a project charter

2. Specific work activities, tasks or jobs to achieve objectives are broken down,defined & listed (What)

3. A project organisation is created (Who)Ref 1 pg 180

Project Planning –Project Master Plan - contd.

4. A schedule is prepared of work activities, deadlines and milestones (When)

5. A budget and resource plan is prepared (how much)

6. A forecast is prepared of time, cost & performance projections

Ref 1 pg 180

Project Planning –Project Master Plan - contd.

Contents of Master Plans• Management Summary• Management & Organisation – Strategy,

key personnel, authority/ responsibility, Manpower: Operational staff, schedule of induction, Training & development

Ref 1 pg 181

Project Planning –Project Master Plan - contd.

3. Technical : Overview of major activites, timing, cost

a) Statement & Scope of Workb) Work breakdownc) Responsibility assignmentsd) Project Schedules (Gantt Charts, PERT,

CPM,Project Networks etc.)e) Budget & Financial Support

Ref 1 pg 181

Project Planning –Project Master Plan - contd.

f) Testingg) Procedure for changes to Project Planh) Quality plan & reviews of worki) Review of environmental & regulatory issuesj) Documentationk) Implementation by userl) Economic justificationm) Areas of uncertainty & Risks

Ref 1 pg 182

Project Planning Tools

• Work Breakdown Structure (WBS)• Responsibility Matrix• Events & Milestones• Networks• Bar Charts/Gantt Charts• PERT/CPM• Activity node diagrams

Ref 1 pg 183

Project Planning Tool:Work Breakdown Structure

• The procedure for dividing the overall project into sub elements is called WBS.

• The total Project is divided into smaller elements called work packages.

• Work packages can be used for scheduling and cost estimates and to assign management & task responsibility

Ref 1 pg 185

Work Breakdown Structure –contd.

Typical WBS consists of five levels:1. Project2. Category3. Sub category4. Sub- subcategory5. Work Package

Fig.7

Fig.8

Work Breakdown Structure –contd

Some elements of WBS:• Define work as precisely as possible• Ask “What’s next?” “ What else is needed”• Elements of WBS should correspond to

sub-systems or components of end item system and not to functional areas’

• Follow a Coding and numbering system

Work Breakdown Structure –contd

Elements of a Work Package/Task:1. Statement of work – clear2. Resources 3. Time4. Cost5. Responsibility6. Outcomes7. Inputs8. QA

Ref 1 pg 189

WBS : Factors to Note• Every activity in the WBS should produce a single

tangible deliverable.• Every activity at any level of the WBS is an aggregation

of all its subordinate activities listed immediately below it.• Each activity should be unique and distinct from other

activities of the project.• There should be some level of flexibility in the WBS

development process to accommodate project scope changes.

• Each activity should be assigned to only one individual.

WBS : Factors to Note (contd.)• The activity sub-division ends at the level when the time

taken to complete is activity becomes measurable in terms of duration and can be scheduled.

• The WBS should be consistent with the way in which work is actually going to be performed. i.e. it should act as a reference for the entire project team.

• Project team members should be involved in developing the WBS to ensure consistency and buy-in from them.

• Each activity in WBS should be documented to ensure accurate understanding of the scope of work included and also what is not included.

WBS : Approaches• There are 2 approaches which can be following while

preparing the WBS :– Top-Down Approach– Bottom-Up Approach

• Top-Down Approach : This is the traditional or conventional approach by starting with the project goal and then subdividing it into further sub-divisions.

• Questions which need to be answer while following a Top-Down Approach while preparing a WBS : – What will have to be done in order to accomplish X?– Continue this approach until your answer has been broken down

into components or activities till they reach the last level.

WBS : Approaches (contd.)• Bottom-Up Approach : This begins with identifying as

many tasks related to the project as possible. Then aggregating the specific tasks and organizing them into summary activities or higher-level activities.

• Work elements can be identified using the following methodologies :– Noun – Type Identification– Verb – Type Identification– Organizational-Level Identification

• Noun – Type Identification : This would involve identifying the various physical or functional components of the project.

WBS : Work Element Identification• e.g. In manufacturing a lathe machine you could the

various sub-systems such as gear system, conveyor system, motor system etc. and also drill down to individual components such as gears, gear belts, motor, machine base, fixtures, supporting blocks, etc.

• Verb –Type Identification : This is based on activities which need to be performed to complete the project.

• Organizational –Level Identification : This is based on dividing project work based on geographical region, department, business function, etc.

• The challenge in this kind of WBS is integrating the work elements across the various units.

Case Study : WBS Illustration using T-D Approach and V–T Identificatn • Project Objective : To migrate 3 Web servers and 2

databases to a new physical data center. • Overall Project Description :

– The project requires 5 new servers to be provisioned in the new data center; there servers will mirror will mirror the production servers existing in the old data center.

– The new servers will be built to the same specification as the old ones, they will run the same application and have the same content.

– Once implemented, the new equipment will be tested to confirm functionality. The servers would contain ‘go-live’ data.

– Finally, the old equipment will be decommissioned and reabsorbed into inventory.

WBS : Level 0 – Major Tasks

1. Obtain Equipment2. Provision and implement equipment3. Test equipment4. GoLive with new equipment5. Re-Test in Live environment6. Decommission Old Equipment.

WBS :Major Task 1 - Obtain Equipment

• Level 1 : Sub-Task– Purchase 3 Web Servers and 2 databases.– Ship equipment to new data center.

• Level 2: Sub-Sub Task– Prepare Purchase Order and place order for servers.– Alert data center that equipment is expected to be

received

WBS : Major Task 2: Provision and implement equipment

• Level 1 : Sub-Task– Physically install hardware– Load operating systems– Load applications– Mirror content to new servers

• Level 2: Sub-Sub Task– Rack and cable new equipment in data center and ensure

physical and network connectivity.– Load base operating system for Web and database servers.– Load application level software including Web server software,

database applications, and any required dependencies.

WBS : Major Task 2, 3 (contd.)

• Task 2 , Level 2 :– Copy configurations from production sites to

new servers and load appropriately.• Task 3 : Test equipment

Level 1 : Sub-Task– Test machines to ensure network connectivity

as well as web and database access functionality and integrity.

WBS : Major Task 4 : ‘GoLive’ with new equipment

• Level 1 : Sub-Task– Cutover to new production site. – Perform Data and Content Integrity Check

• Level 2 – Switch Web and database access to new sites.– Run a series of pre-determined tests to ensure that

data is accurate and that any updates since mirroring have been captured and applied as necessary.

WBS : Task 5 - Re-Test in Live environment

• Level 1 : Sub-Task– Perform Data and Content Integrity Check

again after 24 hrs• Level 2 : Sub- Sub-Task

– Run a series of pre-determined tests once more to ensure that updates and logging is functioning correctly.

WBS : Task 6 - Decommission Old Equipment.

• Level 1 : Sub-Task– Remove equipment from Data-center.– Reabsorb equipment for future-use.

• Level 2 : Sub- Sub-Task– De-install equipment and erase software and

content.– Ship equipment back to inventory.

W.B.S and Project Planning• A WBS typically consist of 3-6 levels of sub-divided

activities. The more complex the project, the more levels it will have.

• As a general rule, no project should more than 20 levels and even that would be only in an enormous project.

• The next set of objectives which need to be worked out in the Project Plan include :– Assembling your team– Setting the schedule – Developing a budget

LOGON CASE – Project Master Plan

The project plan in Logon Case comprises of1. Management Summary2. Project Description3. Organisation Section4. Technical SectionAttachments

Ref 1 pg 590

Logon Case: Project Master Plan – contd.

3. Organisation Section:3.1 Project Administration3.2 Organisation & Responsibility3.3. Subcontractor Administration3.4 Client interface3.5 Manpower & Training3.6 User Training

Logon Case: Project Master Plan – contd.

4 Technical Section4.1 Statement of work & scope4.2 Schedule & Calendar4.3 Budget and Cost4.4 Information requirements4.5 Documentation and maintenance4.6 Work Review4.7 Applicable codes and standards4.8 Variations, Changes, Contingencies4.9 Contract Deliverables

Ref 1 pg 590

Logon Case: Project Master Plan – contd.

Attachments• Drawing of Robot Transporter• MPD Site layout• Drawing of storage rack assembly• Logon organisation Chart• Project responsibilites• Principle subtasks• Project Schedule• Logon project cost estimate

Ref 1 pg 591

Logon – Robot Transporter & Site Layout

Logon – Storage Rack Assembly

Fig.9

Logon - Organisation Chart

Logon case – Integration of WBS and project organistion

Logon –Project Responsibilities for Tasks

Logon – Work Packages Activity –Time- Cost – Labour requirements

Assembling your Team• This is based on the skills required for project. • This flows from the activities identified from the Work Breakdown

Structure.• Depending on the assessment, you may need to recruit or find

people within the organization who have the necessary skills (or product / process knowledge) which are needed in the project.

• A lot of times, you may have to fight your way through the management to get additional resources into the project.

• Assign tasks to team members based on their skills. There might be some additional training which needs to be provided to upgrade the skill levels of the respective team members.

• However these training programs also need to budgeted in terms of time and cost.

Setting the schedule• “Things always take more time than you think they will.”• Most projects come with fixed beginning and end dates

regardless of available resources. In these cases, start by looking at a drop-dead date – a date that cannot be changed.

• The date could be end of an accounting year (March 31st) or date of commencing a new trimester (Jan 3rd). Then start working backwards or ‘back-chaining’ to prepare a realistic schedule.

Tips for Scheduling Project• Know which deadlines are hard and fast and which

have flexibility.• No task should last longer than 4-6 weeks.• Any task coming close to 4 weeks need to be broken

down further.• Build some flexibility into the project schedule by

keeping some time as buffer between start of new activities and ending of finished activities.

• Perform Resource allocation after a schedule has been determined based on what is possible taking the overall skill-base and resource base available.

Steps for Creating the Project Schedule

• Use the WBS as starting element to prepare the schedule.

• Assign a deliverable to each activity or task.• Use deliverables as basis for creating project schedule

with realistic milestones and due dates.• Identify bottlenecks that could upset the schedule.• Determining ways to remove bottlenecks, or build in

extra time to get around them.• Establish control and communication systems for

updating and revising the schedule.• Keep all the stakeholders involved in project schedule.

Planning Tool- Gantt Chart• It is a technique used in scheduling. It is also

called a Bar Chart. It is an XY chart; with Time elements on X axis and Work elements on Y axis. It is a Visual aid.

• Inputs to the Gantt Chart are taken from the WBS analysis and the sequence is taken into account while entering in the Gantt Chart

• Actual progress is shown alongside the planned lines in different colour.

Ref 1 Pg 200

Project Scheduling conceptsGANTT Charts are the simplest form of depicting the scheduling of Work Packages of a Project. They show the general sequence of work but do not explicitly show the relationships among tasks, nor the effect of delaying tasks or of shifting resources.

Networking diagrams overcome these deficiencies.

Ref 1 pg 213

Arrow Diagram Method(ADM) & Precedence Diagram Method (PDM) –

ExampleThe project of installing test machines involves activities A,B,C and D. Rajesh Kumar the Project Manager identifies the relationship amongst the activities:

Activities B & C cannot begin until activity A has been completed.

Activity D cannot begin until activities B &C are completed.

How can he represent these relationships in a project network diagram using ADM & PDM?

Gantt Chart - Disadvantages

• Does not show inter relationships among work elements. They cannot reflect the impact of delaying tasks or of shifting resources

• Gantt Chart are often maintained manually. So suitable for smaller projects.

• Unless regularly updated, they can be useless or misleading

Ref 1 pg 204

Logon – Project Schedule – Gantt Chart

Project Network Development

Tools used in Project Network Scheduling:• Precedence Diagramming Method (PDM)• Programme Evaluation &Review

Technique ( PERT)• Critical Path Method (CPM)

Ref 1 pg 213

Scheduling of Work Elements

• Scheduling shows the timing for work elements and denote their start and end times and the milestone that will be achieved.

• The work element or work package is called the task.It is like the road that you travel in a journey.

• The Event is the milestone. It is like the signpost on the road as you travel indicating how far you have traveled or how far ahead to go before the next destination is reached.Event signifies only the moment of time when work element or task is started or finished.

Ref 1 pg 198

Project Scheduling–contd• On some schedules, a task is indicated as a line

(road) between two events depicted as starting and ending nodes.

• There are 2 types of events:a) Interface event b) Milestone event• There are 2 kinds of schedules:a) Project master scheduleb) Task schedule

Ref 1 pg 197