Chapter 6

Project Planning
& Scheduling
What is project
management?
 Activity 8
 Measures of a project
 Quality
 Cost
 Time
Project planning
 Breaking down the project into
manageable units of activity
 Estimating the resources required
 Sequencing and scheduling each
unit in the most appropriate way
for coordinated performance.
Project planning
tools
 Work break down
structure (WBS)
 Break a project down into its
component phases/stages:
 Discover exactly what work must be
accomplished
 Determining the resources required
 Sequencing and coordinating the work
done.
Work break down
structure (WBS) (cont)
 E.g. building a house.
 Using Charts: Gantt
 
chart
Description of 
work/activity
1 2 3 4 5 6
Time (days)
7 8 9 10 11 12 13 14

Exavate for 
1 foundation                            

2 Concrete                     
foundation

3 Build walls                

4 Construct roof                    

5 Fit garage door                      

6 Provide service                      

7 Plaster                      

8 Decorate                          
Activity 9
Using Charts (cont)
 Advantages:
 Easily understood
 Disadvantages:
 Display a restricted amount of
information
 The links between activities are fairly
crude
 Network analysis
ES D EF
Description
LS F LF
ES = early start; EF = early finish = ES + D
LS = late start; LF = late finish = LS + D
D = activity duration; F = float (slack) = allowable
delay
ES =Maximum EF of all predecessors for non-starting activities
Network analysis (cont)

A B

Activity on node (AON)

•A must be done before B can
start
Activity 15
Critical Path Analysis (CPA)
 Identifies critical path
 Longest path in network
 Shortest time project can be
completed
 Any delay on critical path activities
delays project
 Critical path activities have 0 slack
Resource Allocation
Gantt charts
 Gantt charts
End
Mission
 The organization’s basic function in
society, in terms of the products
and services it produces for its
clients.
Goals
 Intentions behind decisions or
actions, the states of mind that
drive individuals or organizations
to do what they do.
Objectives
 Targets of standards that orientate
the activities of the organization.
Strategies
 A course of action, including the
specification of resources required.
Tactics
 The most efficient deployment of
resources in an agreed strategy.
Operational Plans
 Concerned with the way in which
the company is to be run from day-
to-day to optimize performance.
At a strategic level
 Decide what business the
organization should be in, and
what its overall objectives should
be.
At a tactical level
 Decide how it should go about
achieving its overall objectives:
what products it should produce,
how it will organize work and so on
At the operational level
 Decide what needs to be done
from day to day and task to task.
Two main consequences
 Long-term objectives might conflict
with short-term plans.
 Plan should not be rigid because
future is uncertain.
Uncertainty
 Plans and structures give
directions and predictability to the
work (a form of risk management)
The need for coordination
 Subunits know what to achieve.
 Work flows between processes.
 Resources required.
 Work required to do by somebody.
 Ensure goods/service available at
the right place, right time.
The need for objectives
 Human beings are “purposive”.
 Objectives are important in
learning and motivation.
Systems
 An agreed-upon plan or process for
carrying out an activity.
 Operating system
 Accounting system
 Quality management system
Policies
 General statements that provide
guidelines for management
decision making.
 E.g.
 Five year guarantees on all products
Procedures
 Chronological sequences of actions
required to perform a task.
 Main advantages:
 Efficiency
 Routine
 Standardization
Rules
 Prescribes a specific, definite action
that must be taken in a given
situation.
 It allows no discretion-unlike a
policy.
 E.g.
 Company telephones can’t be used for
personal calls.
Programs
 Coordinated groups or series of
plans to achieve a particular
objective.
Budgets
 A formal statement of expected
results set out in numerical terms
usually summarized in money
values.
Risk assessment
 All potential problems should be
listed.
 These risks should be assessed as
to the impact and damage.
Risk management
 Once the potential damage has
been assessed, steps are taken to
minimize the damage.
Risk transference
 Insurance.
 Contingency plan.
Contingencies
 In case unexpected and
uncontrollable events may happen
 contingency plans.
Market driven (reactive)
 Consumer expectation/preferences

 Marketing strategy: meet customer

expectation better than the
competition

 Competitive advantage
Driving markets
(proactive)
 Marketing strategy: anticipate and
form customer expectation.

 Create customer preferences for

products and services.

 Competitive advantage.
Quality is subjective
 Can’t be measured in an absolute
value.
 Different customers will want,
need, or expect different things
from the same product type.
Quality is distinctive
 Different market segments will
produce differentiated definition of
quality.
Quality is dynamic
 Expectations change over time.
The nature of the job
 Regular contact with other people.
 Prolonged or unnecessary
meetings
The personality of the
manager
 Ability to say “no”.
 Self-discipline.
The influence and
demands of colleagues
 Subordinates refer to the manager
for decisions.
 Close supervision.
 Consultative style.
 Relationship building.