Faculty of Engineering and Technology

School of Engineering

6304MECH and 6465ELE

Industrial Management,
Engineering Management
Dr Ben Matellini
d.b.matellini@ljmu.ac.uk
Room 1.30B, Byrom Street
Project Management
Lecture 3 of PM
 Project Planning

OR
What on earth are we going to do?

Lesson 3
 Agenda
• Project planning

• Planning Tools
- WBS and Milestone and Task plan
- Network Analysis
- Gantt Chart and costing

4
The Project Management Life Cycle
1
Process Concept/
and
product Scope/ Project
Define it brief
knowledge

4 Close / Develop it Plan / Design it 2

Project Execute & Project Charter

outputs Control /
(products)
Do it
3

A series of phases undertaken to deliver the

project outcome (product or service.)
5
 Project Planning
“Time and money planning at the start is time and money saved”
Sir Alistair Morton, Channel Tunnel Chairman.
( The Money Programme, BBC2, 5th May 1994)

Planning is probably the single most important phase in the life

of any project.

Many of the problems that arise during a project can be traced

back to ineffective planning.

“If you fail to plan, you can plan to fail”

6
Planning: How to reach our goal

Base camp
 Why a project needs a plan

• It shows how we will reach our goal

• Time, cost and resources need to be defined precisely

• We need a way to measure progress

• A plan convinces stakeholders we are competent for the job

• The planning process forces us to think hard about what we are doing
 Some definitions

• Plan: - a proposed course of action

- a systematic arrangement of work (tasks) to
accomplish the objectives

• Task: a small work activity within a project.

• Milestone: a major event / achievement in a project,

usually requiring customer approval.

9
 An effective project plan

able to identify task logic / order, task durations,

Explicit milestones and resource requirements. It must be easily
viewed and understood.

able to be examined to see what current or future action is

Able to be
planned. Input of progress information should be
monitored straightforward.

Able to able to be modified to cope with changes and issues that

accept change arise as the project proceeds.
 The planning sequence

Time needed
2

Budget required Specification defined

3 1
 The project plan template
1. Project charter → agreement governing size and scope of project
(document)

2. Work Breakdown Structure (WBS) → outline of work to the task level

3. Milestone and task plan → tool for sequentially mapping out milestones and
tasks.

4. Network analysis → use of networks to show the order of the tasks identified
in WBS and their duration

5. Gantt Chart → schedule (dates) / agenda of tasks

6. Cost spreadsheet → detailed listing of tasks with associated labour and

material costs
12
The process of project planning

13
 The role of project charter
• The Project Charter is the document that brings
a project to life.
• Share the understanding on the following
issues:
– What’s in? What’s out? Who’s in? Who’s out? Who
makes decisions? How much? How long? What is
success? How do you measure success? What is
quality?
• Serves as a contract between Project Manager,
and Sponsor (sometimes other Stakeholders).
Agreement on the project goal, objectives,
approach, process, and deliverables.
14
 Elements of the Project Charter
Short version
Project charter includes:
• Project name
• Primary project driver (why this project?)
• Objectives
• Summary of the project scope
• Assumptions
• Constraints / restrictions
• Risk identification
• List of stakeholders, roles, responsibilities

15
 Agenda
• Project planning

• Planning Tools
- WBS and Milestone and Task plan
- Network Analysis
- Gantt Chart and costing

16
The process of project planning

17
 Advantages of using these
planning tools to manage projects

• Managers get
– a graphical display of project tasks
– plus an estimate of how long the project will
take
– an indication of which tasks are the most
critical to timely project completion
– an indication of how long any task can be
delayed without delaying the project.

18
The process of project planning

19
 WBS definition
• A tool that graphically illustrates or outlines the project work to be done in
an organized and hierarchical fashion.

• The WBS facilitates the review of the project scope statement.

• If it’s not in the WBS, you will not be able to build it, cost it, or schedule it
and it won’t be a part of the final product.

(WBS – Work Breakdown Structure)

20
WBS for 24 hour Pedal car race
A circuit endurance
race – human
powered cars – 6
drivers over 24 hours

Source: pedalcars.info
http://pedalcarracing.info/races/shenington/
WBS – What might be the main task
groups?
Pedal car project

Administration Car Team Race

and planning development development activities
WBS – What tasks might there be?
Pedal car project

Administration Car Team Race

and planning development development activities

Get rules Devise car

concepts
Prepare time
and cost Produce final
estimates design

Arrange
insurance
WBS – Are there any sub-tasks?
Pedal car project

Administration Car Team Race

and planning development development activities

Get rules Devise car

concepts
Prepare time
and cost Produce final
estimates design

Arrange
insurance Design chassis

Design wheels
and suspension

Design steering

Design brakes

Design body-shell
 WBS organized by Work Cycle
Example work cycle from engineering project:

Project
Build a
Plant

Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6

Concept Design Engineering Construction Equipment Test and
Fit Refit

25
 WBS level of detail and numbering
Project

1. Work Assignment 1 2. Work Assignment 2

1.1 Task 1.2 Task

1.1.1 1.1.2
sub- sub- Detail or Simplicity:
task task • More work packages and tasks means
1.1.1.1 more control, BUT greater complexity.
sub- • How much detail is necessary?
sub- • Too complex → difficult to manage
task 26
 WBS another example
Landscape
project

1. Design home 2. Put in lawn 3. Build fence

landscape

2.1. Acquire 2.2. Install 3.1. Acquire 3.2. Construct

2.3. Plant grass 2.4. Plant shrubs
lawn material sprinkler system fence material the fence

2.2.1. Identify 3.2.1. Mark

2.3.1. Remove
sprinkler fence line and
debris
locations posts

2.3.2. Prepare
2.2.2. Dig 3.2.2. Install
soil (fertilize,
trenches posts
rake)

2.2.3. Install 3.2.3. Install

2.3.3. Plant lawn
pipe and fencing and
seed
hardware gates

2.2.4. Cover 3.2.4. Paint/stain

sprinkler system fence
27
 WBS - options
Options:
• Number of levels / amount of detail can be tailored.
• Freedom to choose a suitable structure.

Conventional
shape which we
have practiced.

(next: milestone and task plan) 28

 Milestone and task plans
Car designed Car
ready

DECIDE T

Milestone and task plan - a method for TO

ENTER
RACE
Plan and
budget
approved T T Team
trained
Car and
team at
race

sequentially mapping out milestones T

T
T
T T T

and tasks. T

T
T
T

T
Team
selected

Entry
confirmed

24 hour pedal car race example.

Representation using a Milestone and task
plan:
• 1st – Map out the milestones from start to
finish.
• 2nd – Place in-between the milestones,
the tasks necessary to reach each
milestone.
Source: pedalcars.info
 Simple milestone plan
- 24 hour pedal car race

Car Car
designed ready
DECIDE
TO Plan and Car and
ENTER budget Team team at RACE
RACE approved trained race WON!

Team
selected

Entry
confirmed

Milestone
 Simple milestone and task plan
- 24 hour pedal car race

Car Car
designed ready
DECIDE T
TO Plan and Car and
ENTER
RACE
budget
approved T T Team
trained
team at
race
RACE
WON!
T
T T T T
T
T T
T
T T
T
Team T
selected

Entry
confirmed

Milestone T Task
 DECIDE
TO
Milestone and task plan
ENTER Car
RACE designed
Produce Car development
final Build
design car
Test
Get rules – Devise car
decide to enter Plan and car Car
budget concepts ready
approved
Prepare time and Team
cost estimates Team Run
trained
Advertise for Select test
team
develop- training
driver programme
ment
Run trials
Transport car Car and
Submit entry and team team at race

Team
Receive race selected
Set up
arrangements Race in pits
Book activities
Milestone accommodation
Take part in
Admin race
T Task Entry
confirmed
The process of project planning

34
 Network Analysis
• Network Analysis are graphical techniques used to
plan projects

• Network Analysis is a generic term. Particular

approaches / methods include:
– PERT (Programme Evaluation and Review Technique)
– Critical Path Analysis (CPA)
– Critical Path Method (CPM)
– (Logic Diagrams)

35
 Network Analysis

• Network Analysis approaches are similar.

They are all tools that illustrate:
– The order in which tasks should be done
– Time scales involved
– Critical tasks
– Amount of spare time (float)

36
 Some definitions
• Critical task: - a task which if delayed will delay the
overall project

• Critical path: The shortest time in which the project

can be completed

• Float or slack: The spare time for a task that is not

on the critical path.

37
 Network Analysis
• Network Analysis can be presented in
different formats:

Event Event
Activity
Activity on Arc E E

Activity on Node Activity Activity

38
 Simple example - gardening
Task Predecessor Resources

1 Acquire lawn materials Council

2 Remove debris Labourer

3 Prepare soil 1, 2 Gardeners

4 Plant lawn seed 3 Gardeners
5 Plant shrubs 2 Gardeners

Predecessor indicates the task(s) which must be completed before

the task being considered can begin. E.g. if task being considered is 3
(Prepare soil), it cannot begin until tasks 1 and 2 have been
completed. t 39
 Network diagram – Activity on node
1 3 4

Start Finish

2 5

Task Predecessor Resources

Acquire lawn
1 Council
materials
2 Remove debris Labourer
3 Prepare soil 1, 2 Gardeners
4 Plant lawn seed 3 Gardeners
40
5 Plant shrubs 2 Gardeners
Network diagram for 24 hour pedal car
race – Critical Path Method

Source: pedalcars.info Source: shenington24.com

Network diagram - Pedal car race

• Project work is composed of tasks

• Tasks have a duration
• Each node represents a task

0 0

Get rules Get

START – decide approval
to enter for project

0 0 5 5
 Network diagram - Pedal car race

Each node contains various timing information

Earliest start
Latest start
time
time

0 0

Get rules Get

START – decide approval
to enter for project

0 0 5 5

Task
duration Float (slack time)

• Float: The spare time for a task that is not on the critical path.
 Pedal car race

Devise Produce
START car final Build car Test car
concepts design

Get rules Get Run Transport

Advertise Select Set up in Take part
– decide approval Run trials training car and
for project for team test driver programme pits in race
to enter team

Receive Book
Submit
entry
race accom- END
details modation

• The network is built based on the order

that the tasks need to be undertaken.
 Pedal car race EST
LST

• Steps: 1st input task duration Get rules –

decide to
enter
5

0 0
Produce
START
Devise car
concepts
final
design
Build car Test car
Duration Float
0 0 10 15 30 10

Get rules – Get Run Transport

Advertise Select test Set up in Take part
decide to approval Run trials training car and
for team driver pits in race
enter for project programme team
5 5 10 3 1 15 2 1 1

Receive Book
Submit
entry
race accom- END
details modation
1 10 5 0 0

• The network is built based on the order

that the tasks need to be undertaken. Time is in days
 Pedal car race
• 2nd calculate EST →
20 + 15 = after 35 days
35 + 30 = 65 or
0 0 10 20 35 65
23 + 1 = 24
Produce
START
Devise car
concepts
final
design
Build car Test car Choose bigger sum when
0 0 10 15 30 10 more than 1 option

0 5 10 20 23 75 90 92 93
Get rules – Get Run Transport
Advertise Select test Set up in Take part
decide to approval Run trials training car and
for team driver pits in race
enter for project programme team
5 5 10 3 1 15 2 1 1

10 11 21 94

Receive Book
Submit
EST entry
race accom- END
LST details modation
1 10 5 0 0

Forward pass for EST:

5 ESTs = ESTc + Durationc
c = current task, s = successor task.
Time is in days

Duration Float Start from front and work forward.

 Pedal car race 10 - 5 = 5 or
• 3rd calculate LST 51 - 5 = 46 or
74 - 5 = 69
Choose smaller sum
0 0 10 10 20 20 35 35 65 65
when more than 1 option
Produce
Devise car
START concepts
final Build car Test car
design
92 - 2 = after 90 days
0 0 10 15 30 10

0 0 5 5 10 51 20 61 23 64 75 75 90 90 92 92 93 93
Get rules – Get Run Transport
Advertise Select test Set up in Take part
decide to approval Run trials training car and
for team driver pits in race
enter for project programme team
5 5 10 3 1 15 2 1 1

10 74 11 75 21 85 94 94

Receive Book
Submit
EST entry
race accom- END
LST details modation
1 10 5 0 0

Backward pass for LST:

LSTp = LSTc – Durationp
5
c = current task p = predecessor task.

Duration Float Start from finish and work back.

Time is in days
 Pedal car race 10 - 5 = 5 or
• 4th calculate float 51 - 5 = 46 or
74 - 5 = 69
Choose smaller sum
0 0 10 10 20 20 35 35 65 65
when more than 1 option
Produce
Devise car
START concepts
final Build car Test car
design
92 - 2 = after 90 days
0 0 10 0 15 0 30 0 10 0

0 0 5 5 10 51 20 61 23 64 75 75 90 90 92 92 93 93
Get rules – Get Run Transport
Advertise Select test Set up in Take part
decide to approval Run trials training car and
for team driver pits in race
enter for project programme team
5 0 5 0 10 41 3 41 1 41 15 0 2 0 1 0 1 0

10 74 11 75 21 85 94 94

Receive Book
Submit
EST entry
race accom- END
LST details modation
1 64 10 64 5 64 0 0

Backward pass for LST:

Float = LST - EST
LSTp = LSTc – Durationp
5 = 75 - 11 = 64
c = current task p = predecessor task.

Duration Float Start from finish and work back.

Time is in days
 Pedal car race EST
LST

Get rules –
decide to
enter
5

0 0 10 10 20 20 35 35 65 65
Produce
START
Devise car
concepts
final
design
Build car Test car
Duration Float
0 0 10 0 15 0 30 0 10 0

0 0 5 5 10 51 20 61 23 64 75 75 90 90 92 92 93 93
Get rules – Get Run Transport
Advertise Select test Set up in Take part
decide to approval Run trials training car and
for team driver pits in race
enter for project programme team
5 0 5 0 10 41 3 41 1 41 15 0 2 0 1 0 1 0

10 74 11 75 21 85 94 94

Receive Book
Submit
entry
race accom- END
details modation
1 64 10 64 5 64 0 0

Critical Path: route with

the longest duration time. Time is in days

Route with 0 float.

 Critical path
• A method of calculating the total duration of a project
based on individual task durations and their inter-
dependencies
• The shortest time in which the project can be completed
(longest duration route through the network)

• Tasks on the critical path are known as critical tasks

If delayed they will cause the overall project to be
delayed

• Tasks on the Critical Path have zero float

• Critical path tasks should be given high levels of

monitoring (high risk?)
Network diagram – alternate formats
Sometimes the nodes may contain additional information:

Task
Earliest duration Earliest
start time finish time

0 10 10 10 2 12 12 2 14

A B C

0 0 10 10 0 12 12 0 14

Latest Latest
start time finish time
Float /slack

• EFT and LFT are equal to EST + duration, and LST + duration
respectively.
 Network Analysis
Network diagramming methods vary. Choose
what you AND others are comfortable with.
Tutorial 3b Network diagrams
- Assigning task timing
The process of project planning

55
 Gantt Charts
• A cascading sequence of tasks.

• A bar chart of the project schedule.

• A calendar overview of tasks, whereby tasks are

mapped against a time line.
 Gantt Charts
• Include milestones Predecessor to
• Highlight critical tasks. task h is task c
 Gantt Charts
• Adding task start and finish conditions.
Tasks can be assigned people - RACI
People or team RACI
(Responsible, Accountable, Consulted, Informed):

• Responsible.
– Who is responsible for doing the task
• Accountable
– Who is accountable for ensuring the resources
needed to do the job are there
• Consulted
– Who should be consulted in order to get the job done
• Informed
– Who is informed of the outcome of the project
59
 RACI Gantt chart
Month
Activity 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 R A C I
Audit of supply network design methodologies
Review of Literature B B Cr Ca
Analysis of currently available software B B Cr Ca
Analysis of real life demand patterns
Data collection B B Cr Ca
Mathematical analysis of real demand patterns B B Cr Ca
Ordering policies analysis
Spreadsheet analysis Ca Ca B Cr
Stochastic control theory analysis Ca Ca B Cr
Numerical investigations Ca Ca B Cr
Stochastic definition of the supply network
Stochastic network description Ca Ca Cr B
Definition of design constrainsts and network properties Ca Ca Cr B
Optimisation
Review of optimisation techniques Cr Cr Ca B
Selection Cr Cr Ca B
Implementation and prototype generatation of DSS Cr Cr Ca B
Exploitation and Dissimination
ISL Key
EUROMA B Brighton
ICPR-18, Italy Ca Cardiff
IWSPE Cr Cranfield
INFORMS
LRN R Responsible
Project Dissimination Seminar A Accountable
Website site development C Consulted
Milestones I Informed
Demand data collection
definition of user requirements
Stochastic model of supply network
Optimisation procedure developed
Prototype dynamic network design methodology
Complete dissimination
RA's supported by the proposal
Brighton
Cardiff 60
Cranfield
 RACI on WBS Responsible
Accountable
Consulted
Project Pedal car project
manager Informed

Administration Car Team Race

and planning development development activities

Roger R/A C I A

Emma R

Rafa C A R

Technical R C
manager

61
 Gantt Charts
Advantages
- Easy to understand
- Easy to show progress and status
- Easy to maintain
- Most popular view to communicate project status to
client and/or senior management

Possible disadvantages
- Can be superficial?
- Not always easy to see precedence, relationships?
Tutorial 3d Gantt Charts
Derived from Gantt chart – cost spreadsheet

Derivative of Gantt chart. List of tasks with costs for labour, materials, etc.
Have a worksheet for each. Have a worksheet also for total costs. 64
 Estimating task duration and cost (1)
Getting task time and cost estimates right will have a big influence on
whether the project is a success.
Key considerations:
• Maintain records of estimates against actual duration and cost from past
projects.

• Use these to build historical data for future reference and to improve
estimating ability.

• Where possible, construct the project such that those tasks having
durations and costs that can not be accurately estimated are off the
critical path. This will prevent uncertainty regarding the finishing date of
the project.
 Estimating task duration and cost (2)
Getting task time and cost estimates right will have a big influence on
whether the project is a success.
Key considerations continued:
• Ensure that float is used as a management tool not a convenience or
cushion.

• Where project estimates are likely to be inaccurate a contingency

allowance may be needed (prepare for unforeseen events).

• Use contingency as an end task, for example include an unforeseen

task. Do this rather than padding out time and cost estimates for each
task. This will help to maintain the critical path and true floats.
 Developing estimates – a simple formula

Three-point estimation: can be used to calculate the expected times

and costs for each task.
Helps avoid single value estimates.

O + 4M + P
Estimated task duration =
6

O = Optimistic estimate
M = Most likely estimate
P = Pessimistic estimate
 Developing estimates – costs
Questions that need considering:
• What is the budget?
• What resources are required? E.g.
– Workers
– Materials
– Machinery (hired or purchased)
– Premises
– Etc.
• How much will it cost to get the project off the ground?
• Can we forecast any cost savings?
68
 Developing estimates – costs
Questions that need considering:
• How would delays affect costs?
• What is the priority: Time, Cost, Spec?

Time

Cost Specification

69
Summary - the project planning process
Statement of work, C
specifications, project Project
charter, etc. plan
E M S

Statement
of Work
a a a
HOW MUCH
b b WHO WHO
People / Organisation DOES People
required
WHAT and cost
estimates
C
3
Matrix E M S

a b a b a b
1 4 6

11
P S S
WHAT

10
S

12
S P P
2 5

21
P S

20
Network

22
10 20 30 40 50 S S
WHEN
31
P S
11 21 31 41 51 32
SCHEDULE
30
P P

S Week 1 2 3 4 5 6 7
33
P
12 22 32 42 52
Task 1
41

P S S
Task 2
42
40

33 43 P
From Morris (1997)
Task 3
43

Work breakdown S S The management of

Task 4 projects London:
51

structure S S
Thomas Telford, p262
Responsibility Work schedule /
matrix Gantt Chart
 Further reading

Below are some additional slides to support the topics covered in class.

71
 The project charter main players
• Sponsor: Those responsible for giving rise to, permitting,
supporting, and paying for the project. Approves the Charter
thus establishing a contract defining the work of the project.

• Client: Those for whom the project manager is managing the

project. Receives product of the project. Approves deliverables,
articulates requirements.

• Project manager: Expert in all matters of the project –

responsible for running project and outcome.

72
 Elements of the Project Charter
Long version
• Project Name • Assumptions
• Date Prepared • Project Scope
• Prepared By –Solution development
• Revision Log –Implementation and integration
• Approvals –Production migration
• Table of Contents –Decommission
• Executive Summary –Exclusions
• Corporate Mission • Risks
• Project Mission • Constraints
• Business Case • Stakeholders
–Background • Project Team Structure
–Project rationale • Commitment to Quality
–Project goal • Communications and Reporting
–Objectives • Appendices
–Critical success factors –Preliminary budget analysis
–Critical success measures –Project labour requirements analysis
73
 Project Charter - when planning
consider Risk and the commitment to
Quality

A couple of important points to note when planning that need incorporating

into the project charter:

• Think about how to deal with Risk?

• Think about how the desired level of Quality can be delivered.

74
 Planning Tools
Reminder of common planning tools:

1. The Work Breakdown Structure (WBS) and the milestone/task plan

2. Network Analysis

3. The Gantt Chart and the Cost spreadsheet

75