PROJECT MANAGEMENT DIPLOMA COURSE

PROJECT MANAGEMENT DIPLOMA COURSE UNIT THREE PROJECT PLANNING TUTOR TALK: The Learning Outcomes for this assignment are: Describe the following: o Planning parameters o Planning quality o Developing a strategy framework Explain the uses and key features of a PERT chart. Introduction A project plan can be described as a road map which shows the route for completing specific objectives and alternative ways from their start to their finish. However, it is usually the case that anyone starting to plan a project is almost always unclear about the important or relevant aspects of such a project. Subsequently, once a project need has been identified and considered feasible then a detailed strategy must be drawn up. This framework or plan is essential for implementing a project by ensuring mat what is needed is accounted for and that the correct steps are taken. The key approach to project planning is to identify and determine the planning parameters of a project. Planning parameters Correct planning involves a number of activities which have to be carefully thought out before a project can be implemented. These include: Working out the necessary resource requirements, Defining each task s objectives, and Determining a set of performance measures to evaluate progress. Project Management Diploma Course Unit Three Page 1

The main project parameters that need to be defined beforehand in order to complete these activities involve: Quality planning, Time planning, and Expense planning. A description of each planning parameter follows. Planning quality To plan the quality of a project is to refine the tasks broadly defined during the Project Identification phase (Lesson 1). Part of quality planning is to prioritise the order of tasks into a sequence which best fits the project s progress. It is important to remember that the quality dimension is the crucial linchpin between resources required and the time and cost dimension which is discussed further on. Quality planning outlines the standards of performance expected by project management and provides a useful guide for monitoring project progress. Key quality planning elements are: Determining the quality and types of resources needed (human and material), Setting the performance standards desired, and Verifying output quality. The latter two elements (performance standards and the verification of output quality) is performed by comparing the actual progress of the project during the Project Implementation phase with the planned progress as defined by the project schedule or the project Strategy Framework (described in the following section). The former element (determining the quality and types of resources needed) is developed within this Strategy Framework and, more specifically, within a Project Breakdown Structure. Developing a Strategy Framework A Strategy Framework breaks a project down into tasks and reduces the possibility of overlooking essential steps or sub-objectives which must be completed during a project cycle. Each task is listed as a specific activity which project management must undertake in order to complete the project. Tasks can be prioritised according to how essential they are. Categories of essentiality include: essential not so essential, non-essential, and not necessary. This does not mean that tasks which fall within the last category (not necessary) are unnecessary but rather that if budget, time or other unpredictable constraints occur and the Strategy Framework needs to be changed then these tasks can be left out altogether without any lasting disruption to the project. Project Management Diploma Course Unit Three Page 2

A Strategy Framework should broadly incorporate the following qualities: The goal and sub-objectives of each task, General resource commitments, and A general layout of planned schedules. Table 3A illustrates a sample Strategy Framework. A more detailed breakdown of the task schedules and requirements is often necessary when planning quality. This is accomplished by a Project Breakdown Structure. Developing a Project Breakdown Structure A Project Breakdown Structure is an analysis of the tasks listed in the Strategy Framework. Each task is broken down into sub-tasks and all the relevant activities identified. Therefore the Project Breakdown Structure goes further than the Strategy Framework by detailing the process required to complete each task of the project. In particular, the Project Breakdown Structure identifies the necessary resources and standards or output quality to be fulfilled. Useful questions to ask when developing a Project Breakdown Structure include: What is the overall goal to be accomplished? What has to be done to meet this goal? How can it be done? Table 3B illustrates a sample Project Breakdown Structure. Planning time Another critical planning parameter is the time limits set for each task so that the project is finished by a planned completion date. When planning for time, the following considerations must be taken into account: The duration or time that should be spent on each step, The earliest time when a task should start, and The latest time a task should start. However, it is difficult to finalise a specific time period for each task. Some approaches include reviewing the time periods required for other projects of a similar nature and considering their breakdowns or simply by guestimating guessing and estimating the start and completion dates! Project Management Diploma Course Unit Three Page 3

A time scheduler is often applied to estimate these dates. Table 3C illustrates the time scheduler. A practical method for planning time visually is by charts. Two ways to display planned task times or the project schedule are the Gantt Chart and PERT Chart. The Gantt Chart The Gantt Chart displays projects where tasks are largely independent of each other. The Gantt Chart shows the tasks in a horizontal bar chart format which is a line representation of the activities which must be completed during a project s lifespan. A Gantt Chart is created by the following steps: 1. Listing the tasks required to complete a project 2. Estimating the time needed for each task 3. Creating a table with the lifespan time of the project displayed (horizontal) and the list of tasks in order of priority (vertical) 4. Drawing a line for each task starting at the planned beginning date and ending with the expected completion date, and 5. Where task dates can be flexible, then drawing a dotted line to show the leeway for start and end dates. Table 3D illustrates a Gantt Chart. Gantt Charts are useful for simple projects when tasks are not interlinked. More complex and interdependent activities are better displayed by a PERT Chart. Project Management Diploma Course Unit Three Page 4

The PERT Chart The Programme Evaluation and Review Technique or PERT, as it is more commonly known, is useful for projects which involve a number of complex and interdependent tasks. PERT charts are represented by three key features: 1. Events or the launch and end dates of each activity, 2. Activities or the tasks, and 3. Non-activities or interdependent events where no activity is required. Events and activities are therefore the actions (or tasks) of a project, while non-activities symbolise non-actions and link dependencies between two actions. As with Gantt Charts, the dotted lines represent the slack time or extra time that can be afforded to complete a particular task. A PERT Chart is created by the following steps: 1. Listing the steps required to complete a project, 2. Estimating the time required for each step, 3. Linking the activities by non-activity lines, 4. Numbering each task in order of priority, 5. Drawing separate paths for steps that are undertaken at the same time, and 6. Remembering that the length of the line arrow joining activities indicates the time required A critical path can be included to show the essential steps required in order of priority. A critical path is calculated by: 1. Establishing the sequence of tasks that best fit the time and money constraints, and 2. Identifying the tasks most critical for the completion of each stage of the project. A critical path is useful in the case of limited time or scarce resources. Table 3E illustrates a PERT chart. Planning expense The costs of resources such as supplies, materials and wages, must be accounted for. Planning costs should not stop once the project is launched but should continue throughout a project s lifespan in order to keep track of expenses and avoid overspending. However, estimating a project s costs is not easy as many unexpected costs can be incurred during a project cycle. Project Management Diploma Course Unit Three Page 5

To calculate a budget, cost estimates should involve the items listed in the Project Breakdown Structure which typically include labour costs, material costs, travel costs, and administrative costs. An estimate of a project s costs should consider: The knowledge, expertise or skills are required (the greater the expertise, the higher the probable cost), and The types and amount of specific materials, supplies and facilities needed. These costs can be displayed in a budget worksheet. Details of how to prepare a budget are given in Lesson 6. Table 3F illustrates a budget worksheet. Delegating responsibilities Project personnel should hold clearly assigned responsibilities within the project schedule. If considering the nature of such responsibilities, some useful questions to ask are: What kind of knowledge or expertise is required for each task? Who best suites the demands of the task? Once the project has been planned by detailing its quality, costs and time, then the project can be implemented. Review The Project Planning phase is the second phase of the project cycle. Good planning depends on the usefulness of the information applied, being able to identify key start and completion dates, budgeting realistically, and maintaining a steady supply of essential resources (materials, skills and the suchlike). Planning project parameters determines a project s quality, time and costs. Planning project parameters also ensures that a clear project strategy is drawn up and a logical sequence of steps is followed by means of pre-defined tasks and activities. Once the Project planning phase is complete then a project can be implemented. Project Management Diploma Course Unit Three Page 6

END OF UNIT: Well done of completing your third unit of this course. The tables related to during the course are found after this page. Keep up all your good work. All that remains for you to do is move on and complete your question paper relating to this unit. Copyright Reserved Learn to listen. Opportunity could be knocking at your door very softly. Anonymous Table 3A Table 3A: Sample Strategy Framework CASE STUDY: BUILDING A HOUSE GOAL Build a house TASKS Plan design Prepare resources Construct houses ACTIVITIES Investigate idea and detail plan Investigate funding, human and material resources Draw up relevant contracts Build foundations Build exterior Build interior and finish Project Management Diploma Course Unit Three Page 7

Table 3B Table 3B: Sample Project Breakdown Structure CASE STUDY: BUILDING A HOUSE PROJECT DEFINITION: Build a house within three (3) months at a cost of 20,000 before moving in. Project Management Diploma Course Unit Three Page 8

Table 3C Table 3C: Time Scheduler The Time Scheduler The following symbols indicate certain values which need to be calculated by the formula shown below. A = The amount of time you think is needed to complete the project B = The least amount of time you think is needed to complete the project C = The most amount of time you think is needed to complete the project D = Time scheduler s amount of time needed to complete the project B+ C+ D= 6 ( 4 A) In the Time scheduler above you must being with an idea of self-estimation of how long your project can take before it s completed. Once you have established a rough figure then the following time spans should be considered: the least possible time and the most possible time your project could take. You then apply the above calculation to get the Time scheduler s suggestion of how long your project should take to be completed. Extra time should also be added to the Time scheduler s figure to provide insurance against unforeseeable events such as missing materials or a labour strike. Extra time is calculated by the following formula: C B 2 Extra time= 6 The following page illustrates how these formulae can be used. Project Management Diploma Course Unit Three Page 9

Table 3C Example: The proposed amount of time for a project is 90 days A = 90 days (amount of time the project manager thinks the project can be completed in) B = 60 days (the shortest amount of time the project manager thinks the project can be completed in) C = 180 days (the longest amount of time that the project manager thinks the project will take) D = Answer: The amount of time the Time Scheduler proposes What amount of time should the project manager plan for? Therefore: ( 4 90) 60 days+ 180 days+ D = 6 240 days+ D = 6 ( 360 days) 600 days D = 6 D = 100 days (the project should finish after 100 days) However, extra time should be added to the proposed schedule (100 days) in case of unexpected events. 180 days 60 days Extra time= 2 6 120 days Extra time= 2 6 Project Management Diploma Course Unit Three Page 10

Extra time = 20 days x 2 Extra time = 40 days Therefore, the final project schedule should be: 100 days + 40 days Time required for the project = 140 days Table 3D Table 3D: Sample Gantt Chart CASE STUDY: BUILDING A HOUSE PROJECT DEFINITION: Build a house within 140 days (see Table 3C) at the cost of 20,000 before moving in. Project steps and estimated time The time needed for each activity should be added to the list of activities. 1. Develop idea (13 days) 2. Discuss idea with architect and quantity surveyor (13 days) 3. Draw up plan (13 days) 4. Obtain funding (4 days) 5. Organise builders and materials (8 days) 6. Complete contracts and building (9 days) 7. Lay foundation (10 days) 8. Build walls (10 days) 9. Build roof (7 days) 10. Install windows (6 days) 11. Paint exterior (3 days) 12. Install electrical fixtures (5 days) 13. Install plumbing (5 days) 14. Put in doors (5 days) 15. Paint inside (3 days) 16. Cleanup and finish (26 days) The Gantt Chart is displayed on the following page. Project Management Diploma Course Unit Three Page 11

Table 3D Project Management Diploma Course Unit Three Page 12

Table 3E Table 3E: Sample PERT Chart CASE STUDY: BUILDING A HOUSE PROJECT DEFINITION: Build a house within 140 days (see Table 3C) at the cost of 20,000 before moving in. Project steps and estimated time 1. Start project ( days) 2. Plan completed (39 days) 3. Funding obtained (4 days) 4. Builders and material organised (8 days) 5. Contracts and building permit completed (9 days) 6. Foundation laid (10 days) 7. Walls built (10 days) 8. Roof built (7 days) 9. Windows installed (6 days) 10. Exterior of house painted (3 days) 11. Electrical fixtures installed (5 days) 12. Plumbing installed (5 days) 13. Doors finished (5 days) 14. Inside of house painted (3 days) 15. Cleanup completed (26 days) 16. Project finished ( days) The PERT Chart is displayed on the following page. Project Management Diploma Course Unit Three Page 13

Table 3E Activities (Please note that Days do not have to be included in such a diagram) Table 3F Table 3F: Sample Budget Worksheet CASE STUDY: BUILDING A HOUSE PROJECT DEFINITION: Build a house within 140 days (see Table 3C) at the cost of 20,000 before moving in. For selected steps refer to the Gantt Chart (Table 3D) or PERT Chart (Table 3E). Project Management Diploma Course Unit Three Page 14

PART I Project Budget: Itemised Item Step Rate/quantity Cost Labour Architect 2-3 50 per hour 250 Quantity surveyor 2-3 50 per hour 250 Builders 7-16 20 per hour 4,500 Sub-Total 5,000 Materials Bricks 8 4000 bricks 2,200 Cement 7-8 200 kg 1,500 Timber 9-10 50 meters 500 Doors 14 5 doors 450 Roof tiles 9 1000 tiles 1,200 Piping 13 60 meters 600 Electrical fixtures 12 Wiring and sockets 300 Paint 11, 15 20 litres 450 Glass 10 20 pieces 425 Sub-Total 7,625 General and Administrative Contracts 6 Legal fees (indirect) 350 Building permit 6 Revenue stamp 50 Stationary 1-3 Paper, pencils, etc. 120 Travel 1-16 Car allowance 300 Building equipment rental 7-16 Cement mixer, etc. 2,075 Overheads (spare money) 1-16 Extra or reserved 2,000 Sub-Total 4,895 TOTAL COST = 5,000 + 7,625 + 4,895 = 17,520 (Please note that quoted prices are fictional and do not reflect real costs in any way) Project Management Diploma Course Unit Three Page 15

Table 3F PART II The Project Budget Schedule calculates the estimated cost of each activity or step in the project plan. Figures are divided over the applicable steps, as itemised under Step. For instance, the final Item Overheads budgets for steps 1-16 for 2,000. This means that in PART II the 2,000 is evenly split over the 16 steps and 125 is added to each step. Project Budget Schedule Activity or Step Calculation Total Cumulative Develop idea Stationary ( 40) + Overheads ( 125) 183.75 183.75 Meet Architect and Quantity Surveyor + Travel ( 18.75) Stationary ( 40) + Overheads ( 125) + Rate 1 ( 125) + Rate 2 ( 125) + Travel ( 18.75) Draw up plan Stationary ( 40) + Overheads ( 125) + Rate 1 ( 125) + Rate 2 ( 125) + Travel ( 18.75) 433.75 617.50 433.75 1051.25 Obtain funding Overheads ( 125) + Travel ( 18.75) 143.75 1195 Organise builders and materials Complete contracts and building permit Overheads ( 125) + Travel ( 18.75) 143.75 1338.75 Contracts ( 350) + Building permit ( 50) + Overheads ( 125) + Travel ( 18.75) Lay foundation Builders ( 450) + Cement ( 750) + Building equipment rental ( 207.50) + Overheads ( 125) + Travel ( 18.75) Build walls Bricks ( 2200) + Cement ( 750) + Builders ( 45) + Building Equipment rental ( 207.50) + Overheads ( 125) + Travel ( 18.75) Build roof Roof tiles ( 1200) + Timber ( 250) + Builders ( 450) + Travel ( 18.75) + Building equipment rental ( 207.50) + Overheads ( 125) Install windows Glass ( 425) + Builders ( 450) + Timber ( 250) + Travel ( 18.75) + Building equipment rental ( 207.50) + Overheads ( 125 543.75 1882.50 1551.25 3433.75 3732.50 7166.25 2251.25 9417.50 1474.25 10,891.75 Project Management Diploma Course Unit Three Page 16

Table 3F PART II (cont.) Paint exterior Pain ( 225) + Builder ( 450) + Travel 18.75) + Building equipment rental ( 207.50) + Overheads ( 125) Install electrical Wiring and sockets ( 300) + Builders fixtures ( 450) + Travel ( 18.75) + Building equipment rental ( 207.50) + Overheads ( 125) Install plumbing Piping ( 600 + Builders ( 450) + Travel ( 18.75) + Building equipment rental ( 207.50) + Overheads ( 125) Put in doors 5 doors ( 450) + Builders ( 450) + Travel ( 18.75) + Building Equipment rental ( 207.50) + Overheads ( 125) Paint interior Paint ( 225) + Builder ( 450) + Travel ( 18.75) + Building equipment rental ( 207.50) + Overheads ( 125) Cleanup and finish Builders ( 450) + Travel ( 18.75) + Building equipment rental ( 207.50) + Overheads ( 125) 1026.25 11,918 1101.25 13,019.25 1401.25 14,420.50 1251.25 15,671.75 1026.25 16698 801.25 17,499.25 Project Management Diploma Course Unit Three Page 17

STUDENT NOTES: Please use the space below for recording what you consider to be any pertinent information or notes. You may find it helpful to refer back to it later on! Project Management Diploma Course Unit Three Page 18