© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 16 16.1 Project Planning & Control
© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 16
16.1
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)
© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 16
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.
© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 16
16.4
Understanding the project
environment
Project definition
Project planning
Technical execution
Project control
Stage 1
Stage 2
Stage 3
Stage 4 Stage 5
Changes
Corrective action
Stages in project management
© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 16
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
© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 16
16.6
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
The Project
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.
© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 16
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.
© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 16
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.
© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 16
16.10
Quality
TimeCost
New aircraft project
Fixed grant research project
Music festival
The three project performance objectives
© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 16
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.
© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 16
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.
© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 16
16.13
Stage 3: Project planningFulfills four distinct purpose, it determines:1. The cost and duration of the project.2. The level of resources needed.3. Helps to allocate work and monitor progress.4. Helps to assess the impact of changes to the
project.
There are five steps…
© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 16
16.14
Identify the
activities in the
project
Estimate the times
and resources
for activities
Identify the relationships
and dependencies between the
activities
Identify time and
resource schedule
constraints
Fix the schedule for time
and resources
Adjust as necessary
Stages in the project planning process
1 2 3 4 5
© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 16
16.15
1. Serve breakfast in bed
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
16. Arrange tray
11. Butter the toast
5. Place boiled egg in
egg cup
2. Pour juice in glass
7. Fetch egg
8. Bring water to
boil 14. Fetch bread
1. Identify activities: Work breakdown structure
13. Slice bread
9. Fill pan with water
© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 16
16.16 2. Estimate times and resources
Table 16.1
Time and resources estimates for a breakfast-in-bed” project
No Activity Effort (person) Duration (secs)
1 Serve breakfast in bed 1 120
2 Pour juice in glass 1 5
3 Fetch juice 1 10
4 Fetch glass 1 10
5 Place boiled egg in egg cup 1 3
6 Boil egg 0 240
7 Fetch egg 1 10
8 Bring water to boil 0 180
9 Fill pan with water 1 8
10 Fetch egg cup 1 10
11 Butter the toast 1 10
12 Toast bread 0 30
13 Slice bread 1 30
14 Fetch bread 1 10
15 Fetch butter 1 10
© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 16
16.17 Typical subjective probability distribution for an activity time estimate
Activity duration3 5 136Optimistic time
Most likely timeExpected time
Pessimistic time
Pro
bab
ility
Accuracy of estimates comes with experience!
© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 16
16.18
• All activities will have some relationship with one another.
• Dependent or series relationship orSlice bread Toast bread Butter
toast
Fill pan with water Bring water to boil Boil egg
• Parallel relationship
3. Identify relationship and dependencies
1
2
1 2&
© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 16
16.19
• 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.
4. Identify schedule constraints
© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 16
16.20 “Making breakfast” - Do activities at earliest time
0 1 2 3 4 6 7 8 95
Orange
Bread
Water
Tray
Toast
Boil water Boil egg Bed room
Sta
ff r
eq
uir
ed
0 1 2 3 4 6 7 8 950
1
2
3
4
Butter
Time (mins)
Time (mins)
Activities requiring operator time
© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 16
16.21 “Making breakfast” – Minimizing staff requirements
0 1 2 3 4 6 7 8 95
Orange
Bread
Water
Tray
Toast
Boil water Boil egg Bed room
Sta
ff r
eq
uir
ed
0 1 2 3 4 6 7 8 950
1
2
3
4
Butter
Time (mins)
Time (mins)
© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 16
16.22
“Making breakfast” – Maximizing toast quality
Sta
ff r
eq
uir
ed
0 1 2 3 4 6 7 8 950
1
2
3
4
0 1 2 3 4 6 7 8 95
Orange
Water
Tray
Boil water Boil egg Bed room
Bread Toast Butter
Time (mins)
Time (mins)
5. Fix the schedule
© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 16
16.23
Stage 5: Project control1. Project monitoring: current expenditure to date, amount of
overtime authorized, inspection failure, progress of activities etc.
2. Assessing project performance: Compare planned and actual expenditure
3. Intervene to change the project: when the project is out of control in the sense of cost, quality levels or time, intervention is required.
© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 16
16.24
Network planning1. 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)
© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 16
16.25
Critical Path Method1. Represents the project activities diagrammatically.2. Project activities are represented by arrows (See 16.26).3. 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)
© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 16
16.26
Prepare bedroom Paint bedroom
Prepare kitchen Paint kitc
hen
Remove furniture Replace furniture
a Remove furniture None 1b Prepare bedroom a 2c Paint bedroom b 3d Prepare kitchen a 1e Paint kitchen d 2f Replace furniture c, e 1
ActivityImmediate
predecessorsActivity duration
(in days)
Activities and network for a simple project
© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 16
16.27 Network diagram for simple decorating project
a
1
b
2
d
1
c
3
e
2
f
1
1 2 5 6
3
4
a
1
1
Activity reference
Activity duration
Event number
An Event
Earliest Event Time (EET)
Latest Event Time (LET)
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
© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 16
16.28
1 2 1 3
1 3 5
2 4 6
2
x
y
x
y
Activity on arrow – Using “dummy” activities
© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 16
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.
© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 16
16.30
Network analysis for simple decorating project
a
1
b
2
d
1
c
3
e
2
f
1
2 5 6
3
4
1
00 11 66 77
42
33
With earliest and latest event times
Chapter 16, Page 575
© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 16
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.
© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 16
16.32 Road Construction Activities
Activity Duration Preceding activities
A 5 -
B 10 -
C 1 -
D 8 B
E 10 B
F 9 B
G 3 A, D
H 7 A, D
I 4 F
J 3 F
K 5 C, J
L 8 H, E, I, K
M 4 C, J
© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 16
16.33
Network Diagram For Motorway Project
00
2018
1010
1919
2222
2727 3535
A
5
B10
C
1
D8
E
10F
9
G
3H7
I4
J3
K M5
4
L
8
© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 16
16.34
The End