5 Project Planning and Control

16.
Project Planning & Control
Nigel Slack, Stuart Chambers & Robert Johnston, 2004
Operations Management, 4E: Chapter 16
16.2
Chapter Coverage
What is a project? The project planning and control process Network planning Critical Path Method (CPM)
16.3
Projects:
A project is a set of activities with a define start point and a define end state, which pursues a defined goal and uses a define set of resources.
16.4
Stage 1
Stages in project management

Understanding the project environment
Project definition
Stage 3 Changes
Stage 2
Project planning
Stage 4
Corrective action
Stage 5
Technical execution
Project control
16.5
Stage 1: Understanding project environment
The project environment comprises the factors which may affect the project during its life. See slide 16.6
16.6
Geo-social environment Geography National culture
Econo-political environment Economy Government
The Project
Business environment Customers Competitors Suppliers/sub-contractors
Internal environment Company strategy Resources Other projects
Examples of factors that may affect the project environment

Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 16
16.7
Stage 2: Project definition Three different elements define a project:

Its objective: the end state that project management is trying to achieve Its scope: the exact range of the responsibilities taken on by the project management. Its strategy: how project management is going to meet its objective.
16.8
Project objectives The hierarchy of objectives: At the top of the hierarchy is the overall objective or goal of the project, lower levels of the hierarchy are the objectives of each part of the project (big projects consists of many parts). Objectives of each part must be related to its overall objective.
16.9
Objectives must be clear: Good objectives are those which are clear, measurable and, preferably, quantifiable. One method of clarifying objectives is to break down project objectives into three categories:
Purpose: to prevent production from failing to meet output as forecast.
End result: a report which identifies the causes of lost production, and which recommends how the target output can be met.
Success criteria: the report should be completed by 30 June. The recommendations should enable output to reach at east 70 tonnes per year. Cost of the recommendations should not exceed RM200,000.
16.10
The three project performance objectives
Quality
New aircraft project
Fixed grant research project

Cost
Music festival Time

16.11
Project scope
- Identifies the work content and the outcomes. - Boundary setting exercise divides work content for each part of the project. - Important for managing contractors commercial and legal aspect of the scope of supply. - Can change during the course of the project.
16.12
Project strategy
Defines in general how the organization is going to achieve its project objectives and meet the related measure of performance. Two ways:
1) Define phases (time based sections) of the project. 2) Set milestones at which specific reviews of time, cost and quality are made.
16.13
Stage 3: Project planning Fulfills four distinct purpose, it determines:

1. 2. 3. 4. The cost and duration of the project. The level of resources needed. Helps to allocate work and monitor progress. Helps to assess the impact of changes to the project.
There are five steps
16.14
Stages in the project planning process
Adjust as necessary
Estimate the times and resources for activities
Identify the activities in the project
Identify the relationships and dependencies between the activities
Identify time and resource schedule constraints
Fix the schedule for time and resources
16.15
1. Identify activities: Work breakdown structure

1. Serve breakfast in bed
2. Pour juice in glass
5. Place boiled egg in egg cup
11. Butter the toast
16. Arrange tray
3. Fetch juice
4. Fetch glass
6. Boil egg
10. Fetch egg cup
12. Toast bread
15. Fetch butter
17. Fetch tray, plates and cutlery
13. Slice bread 7. Fetch egg 8. Bring water to boil
14. Fetch bread
9. Fill pan with water

16.16
2. Estimate times and resources
Table 16.1 Time and resources estimates for a breakfast-in-bed project No 1 Activity Serve breakfast in bed Effort (person) 1 Duration (secs) 120
2
3 4 5 6 7 8 9 10 11 12 13 14 15
Pour juice in glass

Fetch juice Fetch glass Place boiled egg in egg cup Boil egg Fetch egg Bring water to boil Fill pan with water Fetch egg cup Butter the toast Toast bread Slice bread Fetch bread Fetch butter
1
1 1 1 0 1 0 1 1 1 0 1 1 1
5
10 10 3 240 10 180 8 10 10 30 30 10 10
16.17
Typical subjective probability distribution for an activity time estimate

Accuracy of estimates comes with experience!
3 5 6 Activity duration 13 Optimistic time Expected time Most likely time Pessimistic time
Probability
16.18
3. Identify relationship and dependencies
All activities will have some relationship with one another. Dependent or series relationship or
1 Slice bread 2 Fill pan with water
Toast bread Bring water to boil

1 & 2
Butter toast Boil egg
Parallel relationship
16.19
4. Identify schedule constraints
Resource constrained only the available resource level are used in resource scheduling and are never exceeded hence, project completion might slip. Time constrained priority is to complete the project within a given time.
16.20
Making breakfast - Do activities at earliest time

0 Orange Bread Water Tray Toast Boil water Butter Activities requiring operator time Bed room 1 2 3 Time (mins) 4 5 6 7 8 9
Boil egg
Staff required
4 3 2 1 0 0 1 2 3 4 5 Time (mins) 6 7 8 9
16.21
Making breakfast Minimizing staff requirements

0 1 2 3 Time (mins) 4 5 6 7 8 9
Orange
Bread Toast
Butter Boil egg

Bed room
Water
Boil water
Tray
Staff required
4 3 2 1 0
4 5 Time (mins)
16.22
5. Fix the schedule

Making breakfast Maximizing toast quality
0 1 2 Orange 3 Time (mins) 4 5 6 7 8 9
Bread
Water Boil water Tray
Toast
Boil egg
Butter Bed room
Staff required
4 3 2 1 0
4 5 Time (mins)
16.23
Stage 5: Project control

1. Project monitoring: current expenditure to date, amount of overtime authorized, inspection failure, progress of activities etc. Assessing project performance: Compare planned and actual expenditure Intervene to change the project: when the project is out of control in the sense of cost, quality levels or time, intervention is required.
2.
3.
16.24
Network planning
1. Use of Gantt chart is the simplest technique that supports project planning and control. 2. More elaborate and detailed techniques are collectively called network analysis. 3. We will consider a network analysis method called Critical Path Method (CPM)
16.25
Critical Path Method

1. 2. 3. Represents the project activities diagrammatically. Project activities are represented by arrows (See 16.26). At the tail (start) and head (finish) of each activity is a circle which represents and event (See 16.27).
Rules for drawing a network diagram: 1. An event cannot be reached until all activities leading to it are complete - (16.27 event 5 is not reached until c and e are completed). 2. No activity can start until its tail event is reached - (16.27 activity f cannot start until event 5 is reached). 3. No two activities can have the same heat and tail events (16.28 activities x and y cannot be drawn as first shown, they must be drawn using a dummy activity (no duration and shown as a dotted line)
16.26
Activities and network for a simple project

Immediate predecessors None a b a d c, e Activity duration (in days) 1 2 3 1 2 1
Activity a b c d e f Remove furniture Prepare bedroom Paint bedroom Prepare kitchen Paint kitchen Replace furniture
Remove furniture
Replace furniture
16.27
Network diagram for simple decorating project

a 1 1
Activity reference Activity duration Event number An Event
EET the very earliest the event could possibly occur if all preceding activities are completed as early as possible. LET the latest time that the event could possibly take place without delaying the whole project
3
b
1 a 2 2
c 3 5 f 1 6
1
d e 2 4
Earliest Event Time (EET)
Latest Event Time (LET)
16.28
Activity on arrow Using dummy activities

2 x
1 y 2 1
x
y 3
16.29
Critical Path
Network diagrams have more that one sequence of activities which will lead from the start to the end of the project these sequence are called paths. Each path has a total duration which is the sum of all its activities. The path which has the longest sequence of activities is called the critical path.
It is called the critical path because any delay in and of the activities on this path will delay the whole project.
16.30
Network analysis for simple decorating project With earliest and latest event times
3
3
b 1 0 0 a 1 1 2 1 d 1 2 4 2
3
c 3 6 e 2 4 5 6 f 1 7 6 7
Chapter 16, Page 575
16.31
Worked Example
The chief surveyor of a firm that moves earth in preparation for the construction of roads has identified the activities and their durations for each stage of an operation to prepare a difficult stretch of motorway (see table below). The surveyor needs to know how long the project will take and which are the critical activities.
16.32
Activity A B
Road Construction Activities

Duration 5 10 Preceding activities -
C
D
1
8
E
F G H I J K L M
10
9 3 7 4 3 5 8 4
B
B A, D A, D F F C, J H, E, I, K C, J
16.33
Network Diagram For Motorway Project

A 5 0 0 B 10
10 18 20
D
10
H 8 E 10 F I 4 K
19 19
G 3
27 27
L 8
35
35
C 1
3J
22
M 4
22
16.34
The End

5 Project Planning and Control

Transféré par

Informations du document

Description originale:

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

5 Project Planning and Control

Transféré par

Droits d'auteur :

Formats disponibles

16.

Project Planning & Control

Nigel Slack, Stuart Chambers & Robert Johnston, 2004

Operations Management, 4E: Chapter 16

Nigel Slack, Stuart Chambers & Robert Johnston, 2004

Operations Management, 4E: Chapter 16

Nigel Slack, Stuart Chambers & Robert Johnston, 2004

Operations Management, 4E: Chapter 16

Stages in project management

Stage 1: Understanding project environment

Nigel Slack, Stuart Chambers & Robert Johnston, 2004

Operations Management, 4E: Chapter 16

Geo-social environment Geography National culture

Econo-political environment Economy Government

Business environment Customers Competitors Suppliers/sub-contractors

Internal environment Company strategy Resources Other projects

Examples of factors that may affect the project environment

Stage 2: Project definition Three different elements define a project:

Nigel Slack, Stuart Chambers & Robert Johnston, 2004

Operations Management, 4E: Chapter 16

Nigel Slack, Stuart Chambers & Robert Johnston, 2004

Operations Management, 4E: Chapter 16

The three project performance objectives

Fixed grant research project

Music festival Time

Nigel Slack, Stuart Chambers & Robert Johnston, 2004

Operations Management, 4E: Chapter 16

Nigel Slack, Stuart Chambers & Robert Johnston, 2004

Operations Management, 4E: Chapter 16

Stage 3: Project planning Fulfills four distinct purpose, it determines:

There are five steps

Nigel Slack, Stuart Chambers & Robert Johnston, 2004

Operations Management, 4E: Chapter 16

Stages in the project planning process

Identify the activities in the project

Identify the relationships and dependencies between the activities

Identify time and resource schedule constraints

Fix the schedule for time and resources

Nigel Slack, Stuart Chambers & Robert Johnston, 2004

Operations Management, 4E: Chapter 16

1. Identify activities: Work breakdown structure

2. Pour juice in glass

5. Place boiled egg in egg cup

11. Butter the toast

16. Arrange tray

10. Fetch egg cup

12. Toast bread

15. Fetch butter

17. Fetch tray, plates and cutlery

13. Slice bread 7. Fetch egg 8. Bring water to boil

14. Fetch bread

9. Fill pan with water

2. Estimate times and resources

Pour juice in glass

Nigel Slack, Stuart Chambers & Robert Johnston, 2004

Typical subjective probability distribution for an activity time estimate

3. Identify relationship and dependencies

Toast bread Bring water to boil

Butter toast Boil egg

Nigel Slack, Stuart Chambers & Robert Johnston, 2004

Operations Management, 4E: Chapter 16

4. Identify schedule constraints

Nigel Slack, Stuart Chambers & Robert Johnston, 2004