nese has two main phases, viz., formulation of a project and its execution. Project formulation starts with the preparation of Detailed Project Report (DRR) after preliminary scrutiny. The project report is then appraised, and if the results are found satisfactory, the project is cleared ind necessary sanction is issued for its execution. All these activities constitute project planning. Much of the success in execution depends upon sound ‘planning of the project. Execution ofa poject is taken up after its clearance at various levels. It starts with specifying and scheduling the work on the one hand, and obtaining resources on the other, A suitable project organisation ad a control system is also established for direction and control of project activities, during execution. The project is finally commissioned and terminated on successful completion of al activities, Thus, execution of projects requires project planning. project organisation, and project monitoring and control. Project planning is being discussed in this chapter and. the rest in subsequent chapters. WHAT IS PROJECT PLANNING? \d down into a systematic chain of activ’ ncertain and, therefore planning is done to sure proper execution. Project planning is nerete shape 4! Though pl ideas get co’ eae de cvs in future is highly What shape the events may take i 2 inty and en: minimise the risk on account on war a . i t of goals: * * os 4 Oa approach to eee a or the function of selecting the enterprise objective ‘anni in general can be jievi and aie ie policies, procedures and programmes necessary for a Planning in a project environment, th ipants will understand theProject Planning ana Sey y : “th, of P ‘ rks required 80 that g, ctives OF sly define all works requi MU cae completely rhe Expected fray) 1a My F yproject planning! is to com e role and work expected fray 4; Mi a i ee nest and carryout he ole "my ant will be able ‘ participant wi objective ave as follows rn es breaking dow project or the wi i cing, down the project or part of ete roe tine wa slayer es, I requires breaking or ; 1 y nudiber of manayeable activi ‘ae ‘Cet 2 The: ® f nae sta (8) Sc aul ir effects can be inised. golive is (o identify a rhe next important objective is 0 ick i jective is to develop a platetony n uninterrupted net work on the sh volved in the project has to be tablish im isa h the re considered together for the organisation © Providing an input to’ subsequent mana; and resources required for the project, Providing a logical basis for making decisions and programmes, Facilitating communication of ideas i © Allowing lessons to be learned from gement processes, including estimating the time a framework for the assessment of in a logical form to its users, practice, PLANNING FUNDAMENTALS / CONTENTS OF PROJECT PLAN In 3 plan of moderate compiexity, planning task. The planning ta: contain the follo (1) o there is a plan for planning, sks vary from organisation to organisa wing elements : that is, a description of “ tion, but any project plan ™a pet Planning and Scheduling : ™’ | N33 technologies. For example, it might note that smpany for an earlier project. The i pa ieee anfextenslon ot woretd Suey routine procedure. For instance, the use of Phi fecal aaa mreaie meen mali Contractual Aspects : This critical section of sa TOL et oral ep orting requirements, SOME pplied ce includes a complete list and description comitees, project review and eancellation ree Asia are Ee management garenens (e.g., use of subcontractors), eect requirements; any specific their specifica Bons, delivery schedules, and a apedific procedure fie sae mee ee schedules : This section outlines the various schedules and lists ail ros a task is listed, and the estimated time for each task should be obtained rea mai do the wate ‘The project master schedule is constructed from: these inputs. rene person or department head should sign off on the final agreed-on schedule, : | (@) Resources : There ate two primary aspects to this section First ig the budget in which both capital and expense requirements are detiled by task which makes this a project. budget (discussed further in Chapter 15). Second, cost monitoring and control. procedures should be feceribed, In addition to. the usual routine elements, the monitoring and control procedures must be designed to cover special, resource requirements for the project, such as special snachines, test equipment, laboratory usage or construction, logistics; field facilities, and special materials. ( Personnel : This section, lists the expected personnel requirements of the project. Special skills, types of training needed, possible recruiting problems, legal or policy restrictions on work force composition, and any other special requirements, such as security clearances, should be noted here. (8) Evaluation Methods : Evety project should be evaluated against standards and by methods established at the project's inception. This section contains a brief description of the procedure to be followed in monitoring, collecting, storing, and evaluating the history of the project. fe imes i ‘make'a serious attempt (9) Po: 1b) Sometimes it is difficult to convince planners to ‘make’ s Potente ae ‘ble difficulties such as (1) subcontractor = al ‘i rages to anticipate potential difficulties. One or more suc! ‘ default, (ii) technical failure, (iii) strikes, (iv) bad weather, (v) sudden required breakthroughs, Tay eral sequences of (sks. (UH) HEN 2 i) resource Tmiations, (2) compe coordination requirements. (x) insufficient authority in some areas, and (xi) new, complex, or unfamiliar tasks are certain to occur. : a These are the elements that constitute the project Pm a oa bs bene eG oo i i 4 general mé 5 Planning chedules, work plan 2 g Senate aie Seid and approved: it iS converged (0 all vnterested parties. The document is also known as the “project charter” DEVELOPING A PROJECT PLAN z tt in planning shorty after 2 business need or contract The management gives authorist ved, The authorisation releases funds so that plans, request or request for propos Ve ieyans are then used £0 justify additional funds and Schedules and budgets can be prepare m ject The work of preparing the project plan is similar to authorise work for remainder OF the P * ons, because the objectives and specifications ct. specific that of defining system °°)Project Planning and §, a Project 1 ad Sched and hence the project plan. Once a full-sized iled project plan. The: plan includes~ ‘and system specifications; affect work activities, schedules, costs, risks, Proje, team is selected, it begins preparing the detailed pr © Detailed user requirements, system ‘objectives, fork schedules and deadlines; uudgets, cost accounts, and a cost control system; * Detailed WBS and work packages; 4 reas of high risk, uncertainty, and contingency plans; Personnel plans and resource utilisation plans; Quality plans; Plans for testing the system; Documentation plans; “Change control and work review plans; | Initial plans for implementing the system. ; Most of the planning in large projects is delegated to subordinates members of the projea team, The project manager coordinates and oversees sub-planning efforts ensuring that all su. plans afe through and tied together. The final plan is reviewed for approval by top managemen and the user. Steps in Developing a Project Pian. The planning process continues throughout the project. Although a plan’ must be developed io cover the project from start to finish, but usually details are not available until the end. As the project moves from one stage to another and new information becomes available, plans are detailed and revised in a selling wave fashion. The overall plan is adhered to, but the gaps are filled in. as every project is different. There is no well established way of specifying how each and every one should be executed. However, the undermentioned planning process is suggested to develop a project plan which answers the questions about what has to be done, how it has to be done, by ct objectives, requiremens p time, cost, and performance sat, for how much, and by ‘The scope includes specific, acceptance requirements that the customer uses to determin the acceptability of results or end-items. Everything, specified in these requirements must completed to the customer’s satisfaction during the project. : Work prpatatonme te specific work activities, tasks or jobs to achieve objectives are broke? _ down, defined and listed, (What?) Create Project Organisation : A project organisation is created specifying the depart subcontractors, and managers responsible for work activites, (Mia?) repare Schedule : A schedule is prepared showin ’ ivities, deadite® : s g the ti ties, dead!!! and milestones, (When, in what order?) Shia foun > Prepare Budget and Resource Plan : A budget and resource plan is prepared showing 5 amount and timing of resources and expendi r iviti it penditures for work ac ms. = ape tivities and related ite! Prepare Forecast : A forecast is prepared of time, cost, and performance projections fo! ww completion of the project. This answers how much time is needed, what will it cost, a0 "™ will the project be finished? 5 2BY. the ac ¥ the seven questions Contents © What ? y "i"? Describe the project by “ win objectives and end-results. ? Write out the purpose and rationale of the project beiefly. i © How? State the strategy and approach proposed to be adopted for execution, by practices and procedures. Define the appropriate information ‘system, anticipate problems and develop contingency plans. Name geographic areas and organisational levels for assignment of work. © When? Fix time frame and priorities. © How much? State the estimated quantum of activities involved and resources required. Identify the type of and size of organisation needed to assign the tasks. © Where? Who? f rogramming of Action Defining activities and we Seh Step 1 eduling of Resources Improvement on Pp nd Time developing a strategy for’ execution, adding time. and Il and allocation © resources: e List the work. ‘e Define the work in great detail. © Break-down the work into small packages and activities for easy control and codify them. « Make models of the main work segments ” vith beginning and an end. Fix sequence and priority. © Fix activity duration. Identify critical activity for special fe Assess the resources requirements in detail ‘and match them with the project estimates. Make overall (1) Master schedule with milestone completion dates (2) Master a11.6 Project Planning ang Scheg, Min, M budget supported by detailed Schedu resources. Make time phased construction scl man-power schedule and consi equipment schedule (usage), Make schedules of ordering and delign of incorporated equipment and materials Make detailed schedules for all key tag fit together all schedules and integrate then, into the master schedule, es op edule TUctiog Step-IV WGrsivnisiig of A Project|To meet the need of the Team, Infrastructure and| project as finally Working Methods scheduled Make a strong cohesive internal team to suit the enterprise’s environment. Involve all agencies connected with the project and make an integrated all agencies’ project team. Make and issue co-ordination procedure, guidelines and operating manuals. Set up communication network and streamline project administration. oy _ Step-V Budgeting Detailing the Master Budget made in Step III Ensure that the master budget is time phased according to assured finding arrangements and the master schedule. Make and issue detailed budgets and performance standards Make cash flow statement sult disbursement for supplies, services and Customers, as finally scheduled. lep-VI Designing a Controlling | To cover : System Time Cost @ Quality To integrate the total activities. To monitor performance, To update plan, To evaluate performance. To take corrective steps, To report, feedback and forward, These steps need to be followed each time because every project is some what uniques requires different resources, and must’be comp! to satisfy users requirements. But, leted to specific time, cost and performance whenever, projects are similar, MUCh of the planning relies of past experience jorical pots for assistance, When projects are first-of-a kind, much of the itch, as sera Ml andarsE a project Planing and Scheduling a CT MASTER PLAN a} ates ofthe onzanisation attached tthe projet shouldbe involved inthe planing ty each area develops its own plan, but all such plans becomes a part of a single -erall plan is referred to as the project master plan or project summary plan. (o guide the project manager and the team throughout the project life ‘es are needed; (ii) when and how much they will cost; and later to determine when they are lagging behind, and know what to be Jan must be of sufficient detail to guide the team in the prove! a. tho vera! plan. 77 sive purpose of this plan is t gs to (i) What resoure faable them 10 MeastFe PrOBTESS, done 10 catch up. Therefore, the master p! ion of the project. execu Contents of Master Plan timing, and cost. it includes : Generalised description of major project a 7 york and setivities and tasks, and results or end-ilems, ni in: List of work packages and description of each. ments + List of personnel and responsibility for work packages and other areas of the project. Roe fi ect and task schedules showing major events, a) Generalised proj | h @ rae ie nt critical action or decision. May include Gantt charts, project s, a E "PM diay i 7 ee Hes sup} + Estimates and timing of capital and development + Jabor, materials, and faci us to be tested procedures, timing and persons ore including () Testing : Listing of thin} responsi pros plan 1 Procedses for review and (9) Change coi to any aspect of the project plan. eee eRe a Lene * Tienawement’, p. 510-73- decision about requests for changesProject Planning and go hed 8 Mig ee : fh dca a8 ee (h) Quality plan : Measures for monitoring quality and accepting results for individuay i tasks, components, and end-item gssemblies rocedures for period c review of work, noting what j Sto by (i). Work review plan : Pr reviewed, by whom, w () Documentation ; List of documents to be pro maintained, ne when and according to what standards. _ duced and how they will be organise “ omic justification : Summary of alternatives in meeting project objectives Showing tradeoffs between costs and schedules. TOOLS OF PROJECT PLANNING ‘There are several tools and techniques which would contribute significantly towards effective pry management. The important and widely used tools are as under : I luling (described in chapter 13) atrix (described in chapter 12) barn | © Forecasting WORK BREAK-DOWN STRUCTURE (wBs) accomplis! clearly 1 dl BS)’. Concept of Work Break-down Structure (WBs) Complex projects consist of 1 convenicntly identified at eacl elements or small pieces ( Structure (WBS), ‘Th oF task-oriented ‘family-tree’ of hierarchical units of eaten ne the project action plans. The result’ each small enough to be well unde project management system suchpoet Manning ad Scheduling que (3) Subcatego y and the eler The top part of the chart of items (level 2) necessary to’ accomplish it. 119 shows the project objective (evel 1) 1) and Functional Product-oriented WBS Level \ House ¥ ¥ ¥ ¥ v 2 [Excavation] [Foundation] [Walls and ceilings} [Interior system] [Roof | Elaboration Product-oriented WBS L eve Toe ¥ ¥ + 24%: ¥ ¥ ¥ ¥ ¥ i Walls and] [Interior | [ 2 lExcavation| Foundation} | Frame] | ceitings. || system | | Roof | |Landscape/ | Paint ¥ + 2 - | Drywall] [Piaster] | [Shingle [Flashing] [Gutters Appliances} [HVAC] [Cabinets] [Electricity] [Plumbing Trim Alc. Ducts] [Chimney] [Furnace The Numbering System Work Break-down Structure Sor House s, accounts, togel 1.0.0 House Project 1.1.0 Civil 11:1 Foundations 1.1.2. Wall ‘and roof an be Tike toe sess s the corporate accoun is and the account. The following is a numbering system WBS created for a small house project.tao Projet Planning ard chey I 1.2.0 Plumbing 1.2.1 Piping 1.2.2 Sewerage 1.3.0 Electrical 1.3.1 Wiring 1.3.2 Appliances Level 0 : The first number [1.0.0] represents the first work element on the level zero, j ‘ normal practice 10 have only one item at this level i.e. the total project. The png may have its own unique number. Level 1: At the first level of subdivision the first work element will be numbered (1.1.0) ang the second work element numbered [1.2.0]. Thus the other work elements Will be numbered sequentially; [1.3.0], [1.4.0], [1.5.0] ete. Level 2: These numbers are then further subdivided at the second level from the first element at the second level into [1.1.1], [1.1.2], [1.1.3], [1.1.4] ete. WBS Sub-Division by Numbering System House Level 0 1.0.0 ¥ + + Civil Plumbing, Electrical reel Lo 12.07 13.0 | ¥ + ¥ Level 2, [Foundations] | Walls/Roof] | Piping Sewerage| Wiring Appliances c Ld 11.2 1.2.1 1.2.2 13.1 13.2 How Many WBS Levels? : With each level of the WBS, the scope of work is sub: more work packages with a corresponding increase in the level of detail. So, how for down the WBS go? For practical purposes two or three levels should be sufficient to achieve the desired level of planning and control. Any more than that and like a pyramid the base of the WBS would start to become unwieldy. Th ; vel of detail Level of risk Level of control Estimated accuracy Work package value Work package man-hours. f more than three or four levels are required can be addressed by using sub-projects where the lowest level work package of one project constitutes the highest level of another project. This situation is common on projects where a main contractor uses many su- contractors. In this way, the WBS can effectively increase the number of breakdown levelss with each project manager focusing on their own scope of work and responsibility.project Planning and Schediting Wat essential Features of WBS from the above discussion, the ientified : o Tt represents the units of work at levels where work is performed: + His clearly distinguished trom all other work, packages; signable to a single organisational element: Ue has scheduled start and complete dates: It has budget of assigned y: units; Its duration is limited to a relatively short span of time, of it is subdivided by discrete value milestones to facilitate the objective measurement of work performed; « ICis integrated with detailed engineering, manufacturing or other schedules, Utility of WBS following essential features of a work break-down structure (WBS) ane ‘alte expressed in Monetary terms, man-hours or other measurable In general, the WBS is an important. document and vay, the important among them: are as under : ¢ Itserves as an effective means of communication to integrate the objectives and acti ‘ties of all the internal and extemal organisations involved in the project. It represents separate sequential and parallel activities assigned to different groups who will schedule, measure and control their own performance. {i reflects the procurement strategy during the various stages of the project's life cycle. e It may illustrate how each piece of the Project contributes to the whore in terms of performance, responsibility, budget, and schedule. * It may be used to document that all parties’such as venders, or sub-contractors associated with specific tasks have signed off on their various commitments to. the project. * It may have detailed descriptions for any work package, establish account hardware/sofiware to be used, and identify resource needs. * It may serve as the basis of making cost estimates or estimates of task duration. can be tailored to use in a number of different numbers, specify The uses of WBS are limited only by the needs of the project and the imagination’ of the Moject manager. No one version of the WBS will suit all needs, hence the WBS is not.a document, but only any given WBS is simply one of many possible documents, ed further ¢ }owing an inter-relationship between codes’. The same cost centre codesProject Planning arid Scheduling 112 lan and project data base’. An integration of y ject cost accounts ‘pl nin Serie faite accounts in shaded boxes is given below. WBS and OBS of project showing locations of cost ! = : l ; Final Project Bee Hardware [ Software [ teats ee Managemens| | design [ Meera | Installation [Procedures] User test Y ! ' Assembly | 1 [Spevifictions ‘System test | ' | Vv ' z | \ i ' 1 ' ' I 1 1 1 1 ' 1 1 i ‘established at the lowest levels of tht a aoa Once work package responsibility h#s a assiy e , more detailed subdivisions can be made within the work packeg? by assigning responsibility down to still lower management and technical levels. WBS in the Planning and Control! Process The WBS becomes the central fe; in three ways : Involvement of All Parties ature Of the project planning and control process. It is use During the WBS analysis, functional managers, sub-contractors, and others who will be doit the work are identified and become involved. Their approval of the WBS helps enst® accuracy and completeness of work definition, and gains their commitment to the rahejo Manin ae Scheduling 11.13 gasis for Budgeting and Scheduling je WBS and work packages beeome the basi th 3 " for budgeting and scheduli is xs for each work package s ' scheduling, sienaleS for eee o wae mee show what is expected to eaiipleid utvor ee zal fe ‘ork package budgets plus overhead and indirect expenses b a nid i se buslgets and schedules are the baste eos the target cost of the entire ayes =e selines agains i i mye 19 MIEASWLE projeet performance, gainst which actual figures will later be pasis for Project Control The WI id work packages become the basis for project control. While the project is underway seal work completed for each work package is compared to work that was scheduled to have peon completed. The result is an estimate of time and schedule variance. Similarly, a comparison of actual expenditures to date with the value of the work accomplished gives an estimate of cost variance. Schedule and cost variances ‘for the project as a whole are determined by summarising ali schedules and cost data throughout the WBS. These procedures. are described in later chapters. The WBS should be flexible to permit revisions in case of changes in project objectives or ope. Because it serves as the basis for project schedules, budgets, and control mechanisms, even small changes to the WBS can be difficult and costly to make and cause problems in procurement, saffing, and cash flow. Whenever changes are needed, a systematic “change control” procedure for revision and communication is necessary so that all changes are authorised and communicated to aflected parties. is the responsibility of only one and reporting on progress, share responsibility for a work packa: subcontractor or functional unit. Thus, isational unit, and severs as k package is a gene vel of é H of the three different categor ‘specific end result or objective, These normally cover 60 ct 5 sa-etfort tasks which can be directly rel ont air % 41 inspection. : tral to project management, All of the major functions of 1, directing, and controlling ate carried out with aye is central t0 | nising, motivatin The concept of the work pack management i.c. planning, ore teference to individual work packages ing theProject Planning and Scheduling Wd ae ig involves as wembling resoure re ck “organising work packages. This 1m es Projects are organized by organising TE nanage work packages. and delegating responsibility to person’ A i ng) ho are doing individual @ The project effort is motivated by motivating people who 2 Wr packages, sng activities within work packages. ects are directed by directing activities within worl seh aa ENE packages. This involves monitoring each work Projects are controlled by controlling work } ead Packige with respect to target costs, performance requirements, and completion dates, Control Over Work Packages To be effective. work packages should be controlled by the following rules : f Rule 7+ A work package must represent a unit of work at a level where work is performed, Rule 2 > Wt must be clearly distinguishable from all other work packages. Rule 3: It should have scheduled start and completion dates. Rule 4 > Wt should have a budget. Rule § 2 Its size and duration should be limited to relatively short spans of time Rule 6: It must integrate with other work packages and schedules. Ruie 7: Mt must represent a level at which actual costs can be collected or assigned. Rule 8 > On small projects the following “test of reasonableness” is suggested : A work package should at least be large enough to constitute a scope of work that could be competitively bid and contracted for by itself. Rule 9: On large, multi-million rupee projects design work packages should-not be less than, say, 300 man-hours and two months in duration. For construction, a minimum work package value of, say, 0.1 percent is a good rule of thumb. The same work package must not appear in more than one contract. If this is likely to happen, the affected work package should be subdivided, and hy arts, separately defined and coded. and /the) respective Pa Rule 10 : ae to wes analysis, scheduling of work elements/packages is the most important step in project planning, because it is the basis for allocating resources, estimating costs and tracking project performance, Schedule show the timin, ig of work yeas) when evenis are planned 10 ocome nt wnt fleets the: calendar dates (day, month, a4 iplementi defined alongwith the required HE sco ca aoe steps mt ‘ rlays the se Pere 15 well as fumetion ther tasks are then cleatlY ol identified in time n. Such a net in plannii and controlling a project. ‘The saan below- : such as dri i ins ewher and Tepresents the process of doittg s0 signifies only a time, usu e s econtrasteanterett