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Example

Planning with Microsoft Project

Building A House

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Important Points
• Introduction is a pseudo-contract for the building of a fictitious
million dollar house in Los Angeles
• WBS is self explanatory and gives structure of project over 2 pages.
• WBS Dictionary gives a little more detail than the WBS itself.
• Budget details costs of each phase of the project, broken down by
WBS areas. Costs include labor and materials.
• Resources give details of labor and material rates.
• Tracking Gantt with costs essentially shows the costs entered into
MS Project at an arbitrary stage of the project (not the final status
date).
• Status Summary shows a MS Project summary of the project as it
stands at the status date 11/3/03. This summary clearly shows a
small estimated variance at completion, but more importantly a
schedule variance of 11 days, which will be costly and will ideally
be caught up.
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Important Points (cont’d)

• Tracking Gantt with Earned Value shows the project as it stands at the status
date. Important things to note are:
– Ground works ran over cost and over time due to poor weather.
– Structure was completed ahead of schedule and under cost, saving the project
$12,000.
– Services are running behind schedule – a lot of catch up needs to be done.
– Services delays are the major cause of the estimated schedule variance of 11
days.
– The project is estimated to run slightly ($2,120) over budget at present. The
over-expenditure due to weather has been almost offset by the savings
achieved in structure. Management reserve is more than adequate to absorb
this small difference if required at completion.
– The 11 day schedule variance can be made up by placing more people on the
job or asking people to put in some “green time.” The extra costs if any
should be weighted against the penalties for late completion.

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Important Points (cont’d)

• The Dashboard shows 3 measures of project performance, schedule,
cost and quality. Schedule and cost are based on estimates at
completion. Quality is subjective and is based on the Project
Manager’s ‘feel’ for the quality of the installation, feedback from
the customer and amount of rework thus far required.

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Introduction

Building A House

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Contract – House Building 2314 Amber Street
Contact Number 10245879
1. General
The contractor shall provide the Owner with a complete house at
2314 Amber St., Los Angeles, CA. The premises shall be handed
over to the Owner no later than 12/11/03. The contract price is
US$964,100.
2. Specifications
Generally the house must be completed in accordance with the
requirements of the contract with the Owner as laid out in the
section 1000 through 8000 of the contract. These specs. Include
achievement of signoff for energy, building envelope and
structural integrity from appropriate integrity from appropriate
government bodies.
1000 Ground Works 5000 Interior
2000 Materials 6000 Services
3000 Structure 7000 Signoff
4000 Project Management 8000 Exterior Systems 6
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Contract – House Building 2314 Amber Street
Contact Number 10245879
3. Warranty
The contractor offers to warrant the house post-
completion for the period, of 1 year or the minimum
required by California State Law, whichever is the
greater.
4. Late Delivery
The contractor shall provide the Owner with a credit of
$1,000 per day that the contract runs beyond schedule,
unless prior agreement is reached between the parties.

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Work Breakdown Structure

Building A House

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House Building
0000

Ground Works Materials Structure Project

Management
1000 2000 3000 4000

Concrete Works Excavation Landscaping

1100 1200 1300

Pool Foundations Delivery Storage

1210 1220 2100 2200

Pool Yard Gardens Timber Masonry Steel

1310 1320 1330 3100 3200 3300
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Work Breakdown Structure Dictionary

Building A House

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Budget

Building A House

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WBS Budget Eng 200

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Resources

Building A House

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Tracking Gantt showing Costs

Building A House

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Status Summary

Building A House

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As of 5/15/03 Eng 200

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Tracking Gantt showing Earned Value

Building A House

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Dashboard

Building A House

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