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d31pt Unit 4

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  Heriot-Watt University Unit 4-1 4: Project Production Planning and Control   Contents 4.1 Introduction 4.2 Project planning 4.2.1 Generally 4.2.2 The planning process 4.3 Critical path method (CPM) 4.4 Project Evaluation Review Technique (PERT) 4.5 Network precedence diagrams 4.6 Project re-planning 4.6.1 Generally 4.7 Crash analysis 4.8 Trade off analysis 4.9 The Bar or Gantt Chart 4.10 Resource Scheduling 4.11 Summary  Heriot-Watt University Unit 4-2 4.1 Introduction Learning outcomes from this unit This unit is intended to introduce you to the main project production planning approaches used for construction related project management and also to familiarise you with its main methods for assessing the consequences of crashing a project. From Unit 4 – Project Production Planning and Control you should gain an understanding of the following: 1.   The basic mechanics of project planning, the differences between and advantages and disadvantages of Critical Path Method (CPM) scheduling and Program Evaluation and Review Technique (PERT) 2.   The basic sequence of works necessary to produce a schedule. 3.   Generate and execute crash and trade off scenarios. Unit 4 will also develop an understanding of and a practical ability to apply learning in simulated project circumstances related to 4.   The use of network precedence diagrams to plan for tasks and parts of projects and the assessment of the consequences of time and cost changes. Recommended text for unit 4 The reading from the recommended texts for Unit 4 are: Winch GM - Managing Construction Projects, An Information Processing Approach Second Edition. Blackwell Publishing, ISBN 1-4051-8457-1 Ch 11p.284-314 Kerzner, H - A Systems Approach to Planning, Scheduling and Controlling, John Wiley, ISBN 978-0-470-27870-3, Ch. 11, p. 411 – 475, Ch.12, p. 493 – 529, Ch 16 p.715-739 Burke, R Project Management: Planning and Control Techniques 5 th  Edn. Burke Publishing, ISBN 0470851244, Chp. 10, pgs. 142-163. The readings from the recommended background texts for unit 4 are: Smith NJ Engineering Project Management, Blackwells Publishing, ISBN 0632 05737- 8, Select relevant sections. Gray, CF and Larson EW - Project Management: The Managerial Process. 5 th  Edn. McGraw Hill, Boston, 2011, Ch6, 7 and 9. Select as appropriate. Meredith JR and Mantel SJ – Project Management: A Managerial Approach. 7 th  Edn. J Wiley & Sons, Inc. Ch. 8, p. 333-402. 4.2 Project planning 4.2.1 Generally Project planning and control are essential project management skills.  Heriot-Watt University Unit 4-3 Kerzner (p. 412) defines planning as, “… the function of selecting the enterprise objectives and establishing the policies, procedures and programs necessary for achieving them ……. By establishing a predetermined course of action within a forecasted environment.” Planning is essential to most enterprises, and is taken for granted in the management of everything from football teams to construction projects. Most aspects of an enterprise can be planned, and the planning process can aim at several different objective criteria. Most projects evaluate success in terms of the optimisation of time, cost and quality evaluation criteria. As a result, most project management planning and control tends to centre on these three variables. Other variables may also be considered, such as safety and reputation, but most of the immediate and non-statutory success objectives centre around time, cost and quality optimisation. Planning as a discipline effectively sets targets. These targets may subsequently be achieved or not, depending on the success of the project. The project manager attempts to ensure that these targets are met through project control procedures. These look at actual performance and track it over a period of time. They then compare actual performance with theoretical performance in order to isolate variances. These variances are then used as the basis for management reporting. Irrespective of whether a project manager is planning for time, cost or quality, the next stage of the planning process is to work out the sequence in which the works are to be executed. 4.2.2 The planning process Irrespective of whether the project manager is developing time, cost or quality plans, the same basic procedure is adopted up to a point. The process is essentially as follows: (a) Evaluate the project through the Statement of Work The Statement of Work (SOW) is the descriptive document that defined the overall content and limits of the project. In practice, nearly all projects have a SOW, as they cannot be efficiently managed or executed unless the managers and administrators can define the boundaries and limits of the project. The SOW includes all the work that has to be done in order to complete the project. However, the project cannot be planned or controlled at this level as it is too big. It is necessary to break the whole down into individual components that can be individually evaluated and managed. The next step in the planning process is to break this SOW down into smaller units so that each can be evaluated separately.  Heriot-Watt University Unit 4-4 (b) Generate a Work Breakdown Structure (WBS) A work breakdown structure (WBS) is simply a representation of how large tasks can be considered in terms of smaller sub-tasks. The idea is to work out the time, cost or quality objectives of the large task by adding together the sum total of the corresponding values of each contributing sub-task. You should refer back to section 2 of the module material for examples of how to develop a WBS. Irrespective of whether the project manager is planning for time, cost or quality, the next stage of the planning process is to work out the sequence in which the works are to be executed. (c) Execute project logic evaluation (PLE) Project logic evaluation (PLE) is the process of taking the WBS work packages which have already been identified, and showing the sequence in which they are to be carried out. This is important for time, cost or quality evaluation. For time control, the project manager has to know when each WBS activity is programmed to start and finish. This is a prerequisite for placing orders, committing to delivery dates etc. It is also needed for resource calculations. PLE is also required for cost planning calculations. The WBS acts as the basis for the budget plan, but it is also important to know when expenditure on each activity is going to start and finish. This is required for any comparison between budgeted and actual rates of expenditure. PLE is also required for quality control as it defines the activity windows for individual work packages, which may be subject to testing etc. PLE simply involves taking the WBS elements and deciding on the most efficient logical order in which they can be carried out. NB – It should be noted that there is often more than one answer to any planning problem and the difference in approaches between competing contractors is an issue that affects contractors’ tender prices. For example consider the case of making and drinking a cup of tea. The SOW would describe the activity in full and the WBS would identify each separate activity. The WBS would probably identify the individual activities as something like: 1. Put water in kettle. 2. Boil kettle. 3. Put tea in teapot. 4. Put boiling water in teapot and allow to brew. 5. Put milk in cup. 6. Pour tea in cup. 7. Drink. Some of these WBS elements have to be done before others. For example, activity (2) must take place after activity (1). However, the logic may not define that activity (3) has to follow activity (2). In other words you can put the tea in the teapot while the kettle is boiling.

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Jul 23, 2017
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