Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Chapter 16
Project planning and control
Source: Arup
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Project planning and control
Operations strategy
Design Improvement
Planning and control
Operations management
Project planning and control
The operation supplies … the delivery of the project on time, to specification and to
budget
The market requires … specified time, quality and
cost of a project
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Individual Group Organization Multi- organization
Nation Multi-nation
ComplexityLow High
Un
cert
ain
ty
Low
High
Novel writing Wedding
Product development
Oil and gas exploration
Basic research
Company audit
Advertising campaign
Antarctic expedition
Oil tanker
Chemical plant
Airport
Car plant
Airbus
Channel Tunnel
Euro project
Motorway
Thames Barrier
Military campaign
Complexity and uncertainty as project dimensions
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Understandingthe project
environment
Stage 1
Project definition
Stage 2
Project planning
Stage 3
Technical execution
Stage 4
Project control
Stage 5
Changes
Corrective action
Stages in project management
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
The project
Geo-social environmentGeography
National culture
Econo-political environment
EconomyGovernment
Business environmentCustomersCompetitorsSuppliers/
subcontractors
Internal environment
Company strategyResources
Other projects
The project environment consists of all the factorsthat can affect the project
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
The stakeholder power–interest grid
Stakeholder power
Stakeholder interest
Keep satisfiedManage closely
Monitor Keep informed
Low High
Low
High
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
How projects can be defined
Project objectives
Phase 1 Phase 3Phase 4
Project strategy
Milestones
Phase 2Pro
ject
sco
pe
The project
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Department 1
Department 2
Department 3
Project A
Project B
Full-time equivalent resourceReporting relationship
Matrix management structures often resultin staff reporting to more than one project manager
as well as their own department
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
How projects are planned
I
Identify activities
Estimate time and resources
Identify relationships and dependencies
Identify schedule constraints
Fix the schedule
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Quality
TimeCost
New aircraft project
Music festival
Fixed grant research project
The three project objectives of quality, cost and time
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Identify the
activities in the
project
Adjust as necessary
Stages in the project planning process
Estimate times and resources
for the activities
Identify the relationships
and dependencies between the
activities
Identify time and resource schedule
constraints
Fix the schedule for time
and resources
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Serve breakfast in bed
Obtain juice
Obtain glass
Produce boiled egg
Obtain egg cup
Produce toast
Obtain butter
Obtain plates and
cutlery
Obtain tray
Obtain egg
Obtain water
Obtain bread
Work breakdown structure
Arrange tray
Produce buttered
toast
Produce boiled egg in egg cup
Produce glass of
orange drink
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Design information interface for new sales knowledge
management system
Form and train user
group
Install systems
Specify sales
training
Design initial screen
interface
Test interface in pilot area
Modify interface
Training Installation Testing
Work breakdown structure
Project to design an information interface for a new sales knowledge management system in an insurance company
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
‘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
equ
ired
0 1 2 3 4 6 7 8 950
1
2
3
4
Butter
Time (mins)
Time (mins)
Activities requiring operator time
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
‘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
equ
ired
0 1 2 3 4 6 7 8 950
1
2
3
4
Butter
Time (mins)
Time (mins)
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
‘Making breakfast’ – Maximizing toast quality
0 1 2 3 4 6 7 8 95
Orange
Water
Tray
Boil water Boil egg Bed room
Sta
ff r
equ
ired
0 1 2 3 4 6 7 8 950
1
2
3
4
Bread Toast Butter
Time (mins)
Time (mins)
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
a Form and train user group
b Install systems
c Specify sales training
d Design initial screen interface
e Test interface in pilot area
f Modify interface
0 10 20 30 40 50 60
Activity
Time (days)
Gantt chart
Project to design an information interface for a new sales knowledge management system in an insurance company
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Prepare bedroom Paint bedroom
Prepare kitchen Paint kitchen
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
(days)
Activities and network for simple decorating project
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Network analysis for simple decorating project
a
b
d
c
e
f
1
2
1
3
2
1
1 2 5 6
3
4
a
1
1
Activity reference
Activity duration
Event number
An event
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Network analysis for simple decorating project
a
1
b
2
d
1
c
3
e
2
f
1
1 2 5 6
3
4
00 11 66 77
42
33
with earliest and latest event times
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
1 2
x
y
1 3
2
x
y
Activity on arrow –Using ‘dummy’ activities to clarify relationships
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
1 3 5
2 4 6
Activity on arrow – Using ‘dummy’ activities to describe a relationship
that could not be expressed any other way
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Remove furniture
Prepare kitchen
Paint kitchen
Prepare bedroom
Paint bedroom
Replace furniture
Activity on node (AON) network for simple decorating project
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
A
B
D
C
F
E
JK
I
M
L
GH 3
8
4
7
10
5
1
10
8
3
9 4
5
18
10 27
19
22
3510
0
0
31
19
27 35
22
Network diagram for a motorway project
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Typical subjective probability distributionfor an activity time estimate
Activity duration3
Optimistic time
5
Most likely time
6
Expected time
13
Pessimistic time
Pro
bab
ility
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
How projects are controlled
Value of work completed
Actualexpenditure
SV
CV
Planned expenditure
ACWP: Actual cost of work performed
BCWP: Budgeted cost of work performed
BCWS: Budgeted cost of work scheduled
SV: Schedule variance
CV: Cost variance
Act
ual e
xpen
ditu
re
ACWP
BC
WP
BC
WS
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Integration
Some of the elements integrated in Enterprise Project Management systems
Project
portfolio
analysis
Multi-project analysisComplex resource schedulingReal-time reporting
Pro
ject
m
odel
ling
Scenario planningForecastingRisk management
Communi-cation
Project portalWeb-based collaborationDocument managementE-mail notification
Project planning
Critical activity analysisFloat calculationWork order management
Pro
ject
co
ntro
l
BudgetingCost managementEarned value control
Resource
schedulingResource levellingResource availabilitySkills scheduling
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Key Terms TestProjectA set of activities with a defined start point and a defined end
state which pursue a defined goal using a defined set of resources.
ProgrammeAs used in project management, generally taken to mean an
ongoing process of change comprising individual projects. A programme has no defined end point.
UncertaintyProjects can be defined in terms of their complexity and their
uncertainty.
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Key Terms TestStakeholdersThe people and groups of people who have an interest in the
operation and who may influence, or be influenced by, the operation’s activities.
Work breakdown structure (WBS)The definition of, and the relationship between, the individual work
packages in project management. Each work package can be allocated its own objectives that fit in with the overall WBS.
Earned-value controlA method of assessing performance in project management by
combining the costs and times achieved in the project with the original plan.
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Key Terms Test
Network analysisOverall term for the use of network-based techniques for the
analysis and management of projects. Includes, for example, the critical path method (CPM) and the programme evaluation and review technique (PERT).
Critical path method (CPM)A technique of network analysis.
Programme evaluation and review technique (PERT)A method of network planning that uses probabilistic time
estimates.
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Key Terms Test
ActivityAs used in project management, an identifiable and defined
task; together with events, they form network planning diagrams.
EventPoint in time within a project plan; together with activities, they
form network planning diagrams.
Critical pathThe longest sequence of activities through a project network, so
called because any delay in any of its activities will delay the whole project.
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Key Terms Test
Crashing
A term used in project management to mean reducing the time spent on critical path activities so as to shorten the whole project.
Enterprise project management (EPM)
Software that integrates all the common activities in project management.
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