General Management= MBA

SBM ITB
Jakarta Campus
PLANNING & SCHEDULING
I. PROJECT PLANNING:
defines the work that will
be done on the project and
who will do it.
II. PROJECT SCHEDULING
Estimates and project
schedules (A Part of project
Planning)

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Planning Activities & Decisions
• Identify the project customer
• Establish the end product or service
• Set project objectives
• Estimate total resources and time required
• Decide on the form of project organization
• Make key personnel appointments
• Define major tasks required
• Establish a budget

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Scheduling Activities & Decisions
 Develop a detailed work-breakdown structure (WBS)
 Estimated time required for each task
 Sequence tasks in proper order
 Develop a start/stop time for each task
 Estimated resources required for each task (RBS)
 Develop detailed budget (CBS) for each task
 Assign people to tasks

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Execution & Control

 Monitor actual time, cost, and performance

 Compare planned to actual figures
 Determine whether corrective action is needed
 Evaluate alternative corrective actions
 Take appropriate corrective actions

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Execution and Control
What are ‘corrective actions?’

When one or more activities threaten the time, cost,

or performance of the project, a corrective action is
necessary:

 Redefine the activity (e.g. split the activity).

 Add resources to the activity.
 Shift resources from one activity to another

 Resources = people, equipment, money

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Scheduling Methods
 Gantt Charts
 Shown as a bar charts
 Do not show precedence relations
 Visual & easy to understand
 Network Methods
 Shown as a graphs or networks
 Show precedence relations
 More complex, difficult to understand and costly than
Gantt charts

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BASIC GANTT EXAMPLE

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SUMMARY GANTT EXAMPLE

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STOPLIGHT GANTT EXAMPLE

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Constant-Time Networks
 Activity times are assumed to be constant
 Activities are represented by nodes in the network
 Arrows show the precedence relationships
 Notations used in calculating start and finish times:
 ES(a) = Early Start of activity a
 EF(a) = Early Finish of activity a
 LS(a) = Late Start of activity a
 LF(a) = Late Finish of activity a

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Network Example
‘Write a Business Trip Report’
Immediate Duration

Activity Description Predecessors Days

A Decide on Topic None 1

B Collect Data A 2

C Search the Internet A 3

D Write the Report B and C 5

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Network Diagram for ‘Write a Business Plan’

A D

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Calculating ES, EF, LS, LF, and Completion Time
Forward Pass:
ES (a) = 0 for the starting activity
EF (a) = ES (a) + t (a)*
ES (a) = max [EF (all predecessors of a)]
Project completion time = max [EF(all ending activities)]
Backward pass:
LF (a) = min [LS (all successors of a)]
LS (a) = LF - t(a)*

* t (a) denotes the duration of activity a

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Forward Pass for ‘Write a Business Plan’
1 3

B
0 1 4 9

A D

ES EF
1 4

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Backward Pass for ‘Write a Business Plan’
1 3

B
0 1 4 9
2 4

A D
4 9
ES EF 0 1
1 4

C
LS LF
1 4

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Critical Path

 Critical Path = longest path in the network

 All activities for which ES=LS and EF=LF
 Length of critical path is equal to the project completion
time
 If there is any delay on the critical path, the project will be
delayed (unless one takes ‘corrective actions’)

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Slack Times
 Slack time equals amount of time a path may be delayed
without delaying the project
 Paths not on the critical path have slack
 Slack = LS-ES or LF-EF

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Precedence and times for Opening a New Office

Immediate Activity Computed

Activity Description Predecessors Time Slack

1 Lease the site None 1 0

2 Hire the workers 1 5 0

3 Arrange for the Furnishings 1 1 1

4 Install the furnishings 3 2 1

5 Arrange for the phones 1 1 3

6 Install the phones 4,5 1 1

7 Move into the Office 2,6,4 2 0

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Gantt chart for Opening a New Office
Week

No. 1 2 3 4 5 6 7 8

1 Lease the site

2 Hire the workers

3 Arrange for the Furnishings

4 Install the furnishings

5 Arrange for the phones

6 Install the phones

7 Move into the Office

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Network for ‘Open a New Office’
1 6

2
1 6
6 8
0 1
1 2 4 5
7
1 5 6
6 8
0 1 4 5 5 6

1 2 2 4 ES EF
3 4
LS LF
2 3 3 5

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CPM
 Critical Path Method
 Used under conditions of certainty in activity times
 Requires one time estimate for each activity
 Looks at time/cost trade-offs
 Normal activity time
 Normal cost
 Crash time
 Crash cost

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Time-Cost Relationship in CPM
Crash Cost

Acceleration
Cost

Normal Cost

Crash Normal
Time Saving
Time Time

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 How to deal with crashing time?
• Focus on most sensitive activities first
• Prioritize activity with least unit of crashing cost
• Continue the crashing until saturated

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Use of Project Management Concepts
• Scheduling is only part of a complete approach to project
management
• Trade-off between sophistication and cost of methods
• Choice between constant time, PERT, CPM or more
advanced techniques
• Choice of project management software packages (MS
Project, Primavera etc)

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The choice is yours:

 Project?

Slow but sure

Speed is the name of the game

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PROGRESS MONITORING & EVALUATION
- Review the Project Life Cycle
- It consists of major items representing the Work Breakdown Structure
- Draw the curve with x line as time and y line as cumulative progress
- This represents the so called S- Curve as per original plan
- During its life cycle, monitor the actual progress as to show gaps between
actual achievements versus original plan

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“ what, why and how on Monev”

 Project monitoring & evaluation is a sort of review of the

project goals and activity achievement as they are measured
against the project plan, budget, time deadlines, quality of
deliverables, specifications and client satisfaction
 There are five important main questions to be answered

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Why conduct a post project review?
1. Was the project goal achieved? From 2 sides
2. Was the project work done on time, within budget
and according to specification?
3. Was the client satisfied with project result?
4. Was the business value realized? Check KSF
5. What were the lessons learned about project
management methodology?

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Reasons for post project evaluation

- People do not automatically learn from their own

experiences
- The knowledge of what occurred is usually dispersed
among several people
- The knowledge needed to diagnose outcomes is
similarly dispersed among several people
- Dissemination matters, often critically

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Project Life Cycle Effort
Identify Develop a Perform the Terminate the
a Need Proposed Project Project
Solution
Effort

Start Finish
Time

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A Common Project Life Cycle
100
Slow finish
% Project completion

Quick momentum

Slow start
0
Time

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Implications of Project Life Cycles
• Project life cycle shape will affect the timing of
resource and funding needs
• Understanding the general project life cycle may help
the stakeholders better understand and accept the
current status of the project (project communication)
• Understanding the general project life cycle may also
help the PM make better goal tradeoff decisions at
particular times during the project

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 Case: Magnum metal works
Questions: See the questions in the Case and PLUS:

1. Total duration?
2. The scheduled start & finish dates for each specific
activity?
3. How long can the non critical activities be delayed
before they cause delay in the overall completion time?

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