PROJECT MANAGEMENT

(OPM655)

CHAPTER 3
PROJECT PLANNING
SHATINA SAAD
CHAPTER 3: PROJECT PLANNING

Statement of Work (SOW)

Term of References (TOR)
Work Breakdown Structure (WBS)
Responsibility Matrix
Project Management Baseline Plans
Project Risk Management
Project Networks Theory

2
 Lesson Objectives
 Elaborate the project planning processes: starting
from proposal stage; work breakdown structure;
responsible matrix; drawing the Gantt chart.

 Elaborate the risk management processes in project

management.

 Elaborate on types of project networks

 Draw the project networks.

 Planning
4

 Definition:
Organizing project in logical order
and identifying and defining work
activities in a manner that help
achieve project objectives
 Basic reasons for Planning
5

 To reduce uncertainty
 To improve efficiency of the
operation
 To provide better understanding
 To provide a basis for monitoring
and controlling work
 Project Planning and Control System
6

Goals / Work description Network

Objectives and Instructions Scheduling

Master /
Management
Detailed
Decision Making
Schedules

Time/ Cost/
System Reports Performance Budgets
Tracking
 Planning Steps
7

1. Establish objectives
2. Develop a plan
3. Construct project planning diagram
4. Identify timing duration of each activity in
planning diagram
5. Identify costs and labor/personnel associated
with each activity
 Establish Objectives
8

 State objectives
 Projectstart/end dates
 Budgets

 Technical results

 List milestones
A scheduled event for which some person is held
accountable and which is used to measure and control
progress
 Designate responsible personnel to meet objectives
 Statement of Work (SOW)
9

 is a formal document that captures and

defines the work activities, deliverables, and
timeline a vendor must execute in performance
of specified work for a client

 usually includes detailed requirements and

pricing, with standard regulatory and
governance terms and conditions.
 Term of Reference (TOR)
10

 Statement of the:
background, objectives, and purpose
of a program, project, or proposal.
 Develop a Plan
11

 List activities
 Develop Work Breakdown Structure (WBS)

 Reflectsthe decomposition of a project into

subtasks down to the level for effective planning
and control
 Determine relationships of activities
 Jobprecedence/succession
 Concurrent jobs
 Work Breakdown Structure (WBS)
12

 Break project tasks into successively finer levels

 Program – Project – Task – Work Package – Work Unit

 Each work unit:

 Short time span
 Specific start & end point

 Budgetable in terms of money & resources

 Can be assigned an individual responsibility

 Can be scheduled
 Work Breakdown Structure
13

 is a product oriented family tree composed of hardware,

software, services, data and facilities.

 Large, complex projects are organized and arranged

by breaking down into smaller work packages to a
collection of a number of tasks.

 is used to plan, organize and manage tasks in project.

 breaks down the project into small, manageable work
packages, tasks
 Work Breakdown Structure
14

 displays and defines the elements of work to be done

and its interrelationships with each other and towards
development of the end product, project

 is a result oriented process that shows all the work tasks

or a project in an organized way.

 is tabulated in a table list of tasks /elements, with time

durations for each tasks and predecessor relationships.

Level 1: Project / program (1.0)

Level 2: Work package (1.1; 1.2)
Level 3: Activities ( 1.11, 1.12)
Level 4: Sub Activities (1.111)
 Purpose of WBS
15

 Manageable
 Independent

 Integratable

 Measurable
 WBS Example
16
 WBS of a Simple Project
17
 Responsibility Matrix
18

 To show the individuals’ job

responsibilities or in charge of tasks.
 To tabulate with WBS

 To show the organization chart, matrix

project organization.
 Estimations in Project
19

 Define basis of estimates

 qualitative, quantitative
 reliability of data

 Top – down approach

 management directives and budget allocations
 management plans and inputs

 Bottom – up approach
 staff expertise and experiences
 Estimations in Project
20

 Delphi method
 use of experts and consultants

 Historical evidences and database, records, reports

 Similar projects, similar specifications, same
customers
 Contingency estimations

 Risks: budgetary contingency

 Profit and pricing
 Project Baseline Plan
21

 Define project objective and project scope

 Define the specifications
 Form project team and project leader
 Establish WBS
 Define Responsibility Matrix, organization chart, job
responsibilities
 Estimates time of activities and budget costs
 Use planning tools and techniques
 Do the project network
 Develop the Gant chart
 Implement the project
 Managing Risks
22

 To mitigate and control risks at all phases

of project
Mitigate Risks

Risk Assessment Risk Controls

Identify risks Mitigate risks
Analyze risks Plan contingencies
Prioritize risks Evaluate
Controls
 Define Risks in Project Management
23

 Construction (larger and small)

 Event management: concert, sports, tournament

 New product or software development

 Services projects (catering; maintenance;

consultations)
 3. Construct Project Planning Diagram
24

 Draw the logical sequence of activities

 Techniques:
 Critical Path Method (CPM)
 Program Evaluation Review Technique (PERT)
 Gantt Chart

 Precedence Diagramming Method

 Activity on Node (AON)

 Arrow Diagramming Method

 Activity on Arrow (AOA)
 Network Planning
25

 2 types of networks
 an activity is a defined piece of work that
has/takes up time
 an event number is a number to show the
sequence of activities
ACTIVITY ON ARROW (AOA)
ACTIVITY ON NODE (AON) -activity is represented by
-activity is represented an arrow, arc, branch
by node -use event number
-use lots of dummy activity
 Terms
26

 Activity: A task or job which taken time and use up

resources
 Event: An instantaneous point representing the start
or finish of an activity
 Slack time: indicates that the corresponding activity
may consume more that its estimated time, or start
later than the earliest possible start time, without
affecting the total duration of the project
 Critical path: a part that has activities without any
slack time; the longest path time
 Activity Precedence
27

Activity Immediate Duration

Predecessor (months)
A - 3
B - 2
C - 4
D A 3
E B, C 5
F C 6
G D, E 4
 Network Characteristics
28

 Construct from left to right

 Any activity can have only one start node
 No two activities can have the same start and end
node
 Dummy activities are used in AOA
 Start the network by finding those activities that
have no predecessors
 Calculate activity times using probabilistic or
deterministic means
 Dummy Activity
29

 Represented by dotted arrow

 Used when relationships between activities require
no work
 Applied when:
 Two activities start and end similarly
 Succeeding activities have partial dependencies on
predecessor activities
 PERT and CPM
30

PERT CPM

• R&D Development • Construction

• Originally focused • Time and cost
on time only • Use deterministic
• Use probabilistic time estimates
time estimates • AON based
• AOA based • Critical path &
• Critical path & slack
slack • Used in most
software
 Gantt Charts
31

 Horizontal time representation of PERT/CPM

 Timeline charts

 Slack time shown as dashed lines

 Critical path events are often milestones

 Inadequate for showing dependencies

 PERT/CPM is required to control the schedule

 Can be used as a scheduling mechanism

 Gantt Chart Example
32
 Project Planning Summary
33